Black Stone Minerals sells minerals and holdings in Permian Basin


Houston’s Black Stone Minerals, L.P. is selling some of its Permian Basin holdings in a $155 million deal that is intended to reduce company debt and obligations.

The sale involves two separate agreements. One involves holdings in Midland County, Texas and the buyer is only identified as a “private buyer” who paid approximately $55 million for the mineral and royalty interests. The effective date of the transaction is May 1, 2020 with closing expected in July 2020.

The second deal is worth $100 million and involves the sale of a 57% undivided interest across parts of Black Stone’s Delaware Basin position and a 32% undivided interest across parts of the company’s Midland Basin position.

The buyer in the second agreement is Pegasus Resources, LLC which is a portfolio company of EnCap Investments. The effective date of the transaction is July 1, 2020 with closing sometime that month. Black Stone estimated the production associated with the sold properties is about 1,800 Boe per day.

Black Stone plans to use the proceeds to reduce the balance outstanding of its revolving credit facility. The company stated in its announcement that it expects its total debt levels to be under $200 million after the two transactions.

“The asset sales accelerate Black Stone’s debt reduction goals, and therefore management and the board of directors of Black Stone’s general partner intend to evaluate increasing distribution levels after closing the transactions in July,” stated the press release.

Source: Business Wire