Black Stone Minerals Targets 60,000 BOEPD by 2035 with Growth Plans

Black Stone Minerals has outlined an ambitious plan to increase its natural gas production significantly over the next decade. The company intends to ramp up its output from the current range of approximately 30,000 BOEPD (barrels of oil equivalent per day) in 2025 to over 60,000 BOEPD by 2035. This growth is primarily driven by the development of the Shelby Trough and the Haynesville Expansion.

To achieve this target, Black Stone Minerals is entering into various development agreements aimed at facilitating the drilling of more than 50 gross well spuds annually in these regions throughout the 2030s. The company anticipates that its oil production share could decrease from around 25% in 2025 to the low teens by the end of the decade. This shift reflects a strategic pivot towards natural gas as a key component of its production portfolio.

According to Black Stone’s analysis, at an oil price of $65 per barrel and natural gas priced at $4 per thousand cubic feet, the company’s distributable cash flow could reach approximately $2.15 per unit when achieving the target production levels of 60,000 BOEPD. This projection underscores the financial viability of their growth strategy, particularly in a fluctuating market.

The focus on natural gas aligns with broader industry trends emphasizing cleaner energy sources. As global demand for natural gas continues to rise, Black Stone’s strategic investments are positioned to capitalize on this shift. The company’s ongoing commitment to exploring and developing its resources in the Shelby Trough and Haynesville regions places it in a strong position to navigate potential market changes.

Black Stone Minerals, listed on the New York Stock Exchange under the ticker BSM, remains focused on enhancing its operational capabilities to support these ambitious production goals. The ten-year outlook showcases the company’s proactive approach to securing its future in the energy sector, emphasizing sustainable growth and profitability.

As the energy landscape evolves, Black Stone’s plans reflect a significant commitment to adapting to market demands and optimizing its production strategy. Stakeholders and investors will be closely monitoring the company’s progress as it works toward its target in the coming years.