Black Stone Minerals, L.P. — Call Transcript 2026

Hello, everyone. Thank you for joining us, and welcome to Black Stone Minerals First Quarter 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Natalie Liddell, Vice President, Corporate Planning. Natalie, please go ahead. Thank you. Good morning to everyone. Thank you for joining us for Black Stone Minerals first quarter 2026 earnings conference call. Today's call is being recorded and will be available on our website along with the earnings release, which was issued last night. Before we start, I'd like to advise you that we will be making forward-looking statements during this call about our plans, expectations, and assumptions regarding our future performance. These statements involve risks that may cause our actual results to differ materially from the results expressed or implied in our forward-looking statements. For a discussion of these risks, you should refer to the cautionary information about forward-looking statements in our press release from yesterday and the Risk Factors section of our 2025 10-K. We may refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance. Reconciliation of these measures to the most directly comparable GAAP measure and other information about these non-GAAP metrics are described in our earnings press release from yesterday, which can be found on our website at www.blackstoneminerals.com. Joining me on the call from the company are Tom Carter, Executive Chairman, Taylor DeWalch, Co-CEO and President, Fowler Carter, Co-CEO and President, Steve Putman, Senior Vice President and General Counsel, and Chris Bonner, Senior Vice President, Chief Financial Officer, and Treasurer. I'll now turn the call over to Taylor. Thanks, Natalie. Good morning, everybody, and thank you for joining us. As detailed in our earnings release last night, we delivered a strong first quarter, highlighted by higher production across our mineral position. Outperformance was driven by increased natural gas activity in the Louisiana Haynesville and Shelby Trough, along with strong oil production in the Permian. Looking ahead, we view 2026 as a year of production growth compared to 2025 as development across our core areas continues to ramp, and we maintain our production guidance outlined in February. Our multiple development agreements in the Haynesville and Bossier expansion play are progressing well, and we remain positioned for meaningful production growth over time. We are seeing continued delineation and also increased activity across the broader Shelby Trough, which reinforces confidence in our long-term inventory profile and growth outlook. This outlook is bolstered by our constructive view on the long-term natural gas backdrop. We are witnessing the industry react to the structural demand growth, which is supported by accelerating LNG export growth, increasing power demand, including data center-driven load growth, and continued strength in U.S. industrial activity. These demand drivers continue to highlight the Gulf Coast as a key market for natural gas, where we maintain a significant acreage position and development agreements with direct proximity to premium demand centers. Additionally, we continue to closely monitor the potential long-term implications of supply disruptions in the Middle East and how that could add incremental demand for secure U.S. molecules. We believe each of these drivers, coupled with premier natural gas assets in close proximity to the Gulf Coast and infrastructure projects to transport those molecules, positions us well to benefit from the structural demand over time and provide significant value to our unitholders. With that, I'll turn it over to Fowler to walk through additional details on the commercial front. Thanks, Taylor. Well, it was a great quarter. We executed across our commercial initiatives, building on the momentum established last year, including continued activity under our Haynesville Expansion Acquisition Program. During the quarter, we acquired an additional $12 million of mineral and royalty acreage. This brings total deployment under the program since its inception in 2023 to more than $250 million, further strengthening our positioning across the Haynesville and expanding Shelby Trough area. Operators under our development agreements in the Shelby Trough continued to advance multiple programs during the period. Adamas spud four wells during the quarter and turned online seven wells. This included the Congo wells in southern San Augustine County, which continued to push the historical extent of the Shelby Trough and delivered strong initial results, reaching 30 MMcf per day. Additionally, Caturus is preparing for their initial activity to begin in June with a pilot hole and several commitment wells. Revenant also spud two wells during the quarter, and as mentioned in the press release last night, one of those wells experienced a loss of well control incident. We are assessing the potential impact on their first-year development program. More broadly, we have continued to see an increase in activity within the legacy Shelby Trough area and the emerging Haynesville Bossier Expansion Resource Play, connecting the Shelby Trough to the western Haynesville. Currently, there are 13 active rigs across Angelina, Nacogdoches, and San Augustine counties under Adamas, Apex, Exco, and Rockcliff. Expand is also actively drilling in the southern Anderson County area while Comstock continues drilling throughout the western Haynesville. Across a broader portfolio, we also saw strong leasing activity and remained encouraged by continued interest in the Permian. Building on that activity, we progressed the opportunity highlighted last quarter in our Shelby Trough expansion area, which includes another approximately 300,000 gross mineral acres. We are currently marketing this project to experienced capable operators to secure an additional development agreement, which we believe would be comparable in scale to our other programs and provide meaningful incremental production growth over time. With that, I'll turn the call over to Chris to cover the financial results. Thanks, Fowler, and good morning. As highlighted earlier, we saw strong production in the first quarter with an overall to production of 35.9 MBOE per day, which is up 16% from the prior quarter. Total production was 37 MBOE per day. The period was also marked by significant commodity price volatility. Natural gas pricing was impacted by extreme weather-driven swings, including Winter Storm, which created regional pricing dislocations and temporarily pressured our realizations relative to Henry Hub in February before conditions moderated in March. Oil pricing, meanwhile, reflected broader geopolitical developments that intensified later in the quarter remain ongoing. As we navigate this environment, we are actively managing our hedge position as part of our broader risk management approach and monitoring pricing and operator activity across the portfolio. Turning to the quarter's financial results, net income was $13.3 million for the quarter, with adjusted EBITDA at $87 million. 54% of our oil and gas revenue in the quarter came from natural gas and natural gas liquids. As previously announced, we declared a distribution of $0.30 for the quarter, or $1.20 on an annualized basis. Distributable cash flow for the quarter was $76.5 million, which represents 1.2x coverage for the period. In the first quarter, we continued to execute across the business, positioning the partnership well for the balance of 2026. I remain confident that our diversified portfolio across multiple basins, together with our commercial strategy and the expanded Shelby Trough, supports our ability to deliver sustainable long-term value for unitholders. With that, we'll open it up for questions. We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Tim Rezvan with KeyBanc Capital Markets. Tim, your line is now open. Hey, good morning, folks, thank you for taking our questions. For my first question, I was hoping you could provide maybe a little more context on what exactly the outcome is with the loss of well control incident from one of Revenant's wells. Does that well eventually get, like, abandoned, or is there still a hope of salvaging it? You know, when you talked about assessing the potential impact, can you talk about what that means? Does that mean some sort of like deferral or delay? Just any more context would be helpful. Thank you. Tim, this is Fowler. I'll tackle that. Right now, it just happened. The truth is we don't know. There is an investigation currently ongoing. Right now, I'd say there is potential for going back into that well, and there may be potential for not going back into that well. We just don't know yet. It is too early to tell. That's really it, man. I'm really sorry I can't give you more color. As we get information back, we will be updating folks. Okay. Okay, I guess we'll have to stay tuned on that. As, as a follow-up, you had a very strong start to the year on the production front, and you laid out a, you know, pretty granular kinda cadence for you know, your partnerships and their activity. I know you're not a company that adjusts guidance on a quarterly basis, and you sort of reiterated it, can you give us a little more color on maybe what the shape of 2026 production will look like? Does this Revenant, you know, potentially, you know, temper your enthusiasm on the outlook? Just wondering if you had a little more color on that. Sorry. I wouldn't say our enthusiasm is tempered in any way, shape, or form. Again, since this just happened, we are actively discussing these things and what that profile will look like this year. As you said, Tim, we don't adjust guidance quarter to quarter, we will get back to you once we have something firmly in place and can understand the situation more clearly. Without putting anything of real substance out there, it might be a bit of a speed bump, over I'm gonna say a two-year period, you won't see any difference. Yeah. Tim, this is Taylor. I'll just add to that a little bit. You know, I think when we look back at our original guidance, which contemplated quite a bit of production growth kind of throughout the year, even if it was flat, compared to 2025. Certainly, starting out the year with a pretty nice production number helps. As we think about the rest of the year, I would go back to kind of what we thought from just a production growth standpoint, given we're getting these development programs off the ground and excited about what that means for production, especially as it looks to the end of 2026 and going into 2027. I think the other piece of the equation that we're really trying to understand right now, is kind of operators' reaction to pricing right now, with kind of geopolitical events going on in the commodity strip. I think more to come on that. Certainly trying to guide within a pretty volatile environment can be difficult, but we're excited about where we think we're headed for the rest of the year. Appreciate the context. Thank you. Thanks, Tim. Just a reminder, if you would like to ask a question, please press star one to raise your hand. Our next question comes from the line of Derrick Whitfield with Texas Capital. Derrick, your line is now open. Good morning. Thanks for your time. Morning, Derrick. With the change in ownership at Aethon and now, Adamas Energy, could you speak to what changes, if any, you're seeing in behavior around desire to grow? Yeah, Derrick, this is Taylor. You know, I'll jump in first and just say I think that given our contractual commitments there, you know, we certainly have at least some expectations on their cadence of operations. Excited about them continuing to move forward in developing the area. I think it's to be determined on excess growth beyond the commitments. That's a conversation we're having, and we'll continue to kinda update as that becomes available. Overall excited about the transaction and the team and continuing to move forward with our contract. Great. With respect to the well control incident, and it feels like the market today is treating this as an issue that impacts a swath of your acreage. As I understand, this is more isolated in nature. Is that a fair characterization? Yes. Yeah. Thanks, Derrick. What I would say is when you look at that area, and where the well is, it's fully surrounded by development, by the likes of Adamas, Exco, and historically others. I think that the area is pretty well delineated from a subsurface standpoint. We certainly look forward to kind of further development in that overall area. Great. Maybe just one last, if I could. As you guys think about the broader expansion from Shelby Trough to Western Haynesville, could you speak to midstream egress for this region and if it's adequate to meet the needs of where you think growth is headed? Yeah. Good, good question. There's certainly plenty of, there's quite a bit of infrastructure out there. As you think about the area growing by, potentially several more gross Bcf a day over the coming years, there's a number of other midstream projects that I think are in the queue. You know, probably more to come on exactly what those projects look like. I'd say there's existing plus additional infrastructure kind of underway. Great. Thanks for your time, guys. Yeah. Thanks, Derrick. There are no further questions at this time. I will now turn the call back to Taylor for closing remarks. Thanks so much. Once again, thanks everybody for joining us this morning. It was a great quarter, look forward to the rest of 2026. Talk to you again soon. Thanks. This concludes today's call. Thank you for attending. You may now disconnect.

Speaker 5: Hello, everyone. Thank you for joining us, and welcome to Black Stone Minerals First Quarter 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Natalie Liddell, Vice President, Corporate Planning. Natalie, please go ahead. Hello, everyone. hello everyone Thank you for joining us, and welcome to Black Stone Minerals First Quarter 2026 Earnings Conference Call. thank you for joining us and welcome to black stone minerals first quarter 2026 earnings conference call After today's prepared remarks, we will host a question and answer session. after today's prepared remarks we will host a question and answer session If you would like to ask a question, please press star one to raise your hand. if you would like to ask a question please press star one to raise your hand To withdraw your question, press star one again. to withdraw your question press star one again I will now hand the conference over to Natalie Liddell, Vice President, Corporate Planning. i will now hand the conference over to natalie liddell vice president corporate planning Natalie, please go ahead. natalie please go ahead

Speaker 4: Thank you. Good morning to everyone. Thank you for joining us for Black Stone Minerals first quarter 2026 earnings conference call. Today's call is being recorded and will be available on our website along with the earnings release, which was issued last night. Before we start, I'd like to advise you that we will be making forward-looking statements during this call about our plans, expectations, and assumptions regarding our future performance. These statements involve risks that may cause our actual results to differ materially from the results expressed or implied in our forward-looking statements. For a discussion of these risks, you should refer to the cautionary information about forward-looking statements in our press release from yesterday and the Risk Factors section of our 2025 10-K. We may refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance. Thank you. thank you Good morning to everyone. good morning to everyone Thank you for joining us for Black Stone Minerals first quarter 2026 earnings conference call. thank you for joining us for black stone minerals first quarter 2026 earnings conference call Today's call is being recorded and will be available on our website along with the earnings release, which was issued last night. today's call is being recorded and will be available on our website along with the earnings release which was issued last night Before we start, I'd like to advise you that we will be making forward-looking statements during this call about our plans, expectations, and assumptions regarding our future performance. before we start i'd like to advise you that we will be making forward-looking statements during this call about our plans expectations and assumptions regarding our future performance These statements involve risks that may cause our actual results to differ materially from the results expressed or implied in our forward-looking statements. these statements involve risks that may cause our actual results to differ materially from the results expressed or implied in our forward-looking statements For a discussion of these risks, you should refer to the cautionary information about forward-looking statements in our press release from yesterday and the Risk Factors section of our 2025 10-K. for a discussion of these risks you should refer to the cautionary information about forward-looking statements in our press release from yesterday and the risk factors section of our 2025 10-k We may refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance. we may refer to certain non-gaap financial measures that we believe are useful in evaluating our performance Reconciliation of these measures to the most directly comparable GAAP measure and other information about these non-GAAP metrics are described in our earnings press release from yesterday, which can be found on our website at www.blackstoneminerals.com. Joining me on the call from the company are Tom Carter, Executive Chairman, Taylor DeWalch, Co-CEO and President, Fowler Carter, Co-CEO and President, Steve Putman, Senior Vice President and General Counsel, and Chris Bonner, Senior Vice President, Chief Financial Officer, and Treasurer. I'll now turn the call over to Taylor. Reconciliation of these measures to the most directly comparable GAAP measure and other information about these non-GAAP metrics are described in our earnings press release from yesterday, which can be found on our website at www.blackstoneminerals.com. reconciliation of these measures to the most directly comparable gaap measure and other information about these non-gaap metrics are described in our earnings press release from yesterday which can be found on our website at www.blackstoneminerals.com Joining me on the call from the company are Tom Carter, Executive Chairman, Taylor DeWalch, Co-CEO and President, Fowler Carter, Co-CEO and President, Steve Putman, Senior Vice President and General Counsel, and Chris Bonner, Senior Vice President, Chief Financial Officer, and Treasurer. joining me on the call from the company are tom carter executive chairman taylor dewalch co-ceo and president fowler carter co-ceo and president steve putman senior vice president and general counsel and chris bonner senior vice president chief financial officer and treasurer I'll now turn the call over to Taylor. i'll now turn the call over to taylor

Speaker 6: Thanks, Natalie. Good morning, everybody, and thank you for joining us. As detailed in our earnings release last night, we delivered a strong first quarter, highlighted by higher production across our mineral position. Outperformance was driven by increased natural gas activity in the Louisiana Haynesville and Shelby Trough, along with strong oil production in the Permian. Looking ahead, we view 2026 as a year of production growth compared to 2025 as development across our core areas continues to ramp, and we maintain our production guidance outlined in February. Our multiple development agreements in the Haynesville and Bossier expansion play are progressing well, and we remain positioned for meaningful production growth over time. We are seeing continued delineation and also increased activity across the broader Shelby Trough, which reinforces confidence in our long-term inventory profile and growth outlook. Thanks, Natalie. thanks natalie Good morning, everybody, and thank you for joining us. good morning everybody and thank you for joining us As detailed in our earnings release last night, we delivered a strong first quarter, highlighted by higher production across our mineral position. as detailed in our earnings release last night we delivered a strong first quarter highlighted by higher production across our mineral position Outperformance was driven by increased natural gas activity in the Louisiana Haynesville and Shelby Trough, along with strong oil production in the Permian. outperformance was driven by increased natural gas activity in the louisiana haynesville and shelby trough along with strong oil production in the permian Looking ahead, we view 2026 as a year of production growth compared to 2025 as development across our core areas continues to ramp, and we maintain our production guidance outlined in February. looking ahead we view 2026 as a year of production growth compared to 2025 as development across our core areas continues to ramp and we maintain our production guidance outlined in february Our multiple development agreements in the Haynesville and Bossier expansion play are progressing well, and we remain positioned for meaningful production growth over time. our multiple development agreements in the haynesville and bossier expansion play are progressing well and we remain positioned for meaningful production growth over time We are seeing continued delineation and also increased activity across the broader Shelby Trough, which reinforces confidence in our long-term inventory profile and growth outlook. we are seeing continued delineation and also increased activity across the broader shelby trough which reinforces confidence in our long-term inventory profile and growth outlook This outlook is bolstered by our constructive view on the long-term natural gas backdrop. We are witnessing the industry react to the structural demand growth, which is supported by accelerating LNG export growth, increasing power demand, including data center-driven load growth, and continued strength in U.S. industrial activity. These demand drivers continue to highlight the Gulf Coast as a key market for natural gas, where we maintain a significant acreage position and development agreements with direct proximity to premium demand centers. Additionally, we continue to closely monitor the potential long-term implications of supply disruptions in the Middle East and how that could add incremental demand for secure U.S. molecules. This outlook is bolstered by our constructive view on the long-term natural gas backdrop. this outlook is bolstered by our constructive view on the long-term natural gas backdrop We are witnessing the industry react to the structural demand growth, which is supported by accelerating LNG export growth, increasing power demand, including data center-driven load growth, and continued strength in U.S. industrial activity. we are witnessing the industry react to the structural demand growth which is supported by accelerating lng export growth increasing power demand including data center-driven load growth and continued strength in u.s industrial activity These demand drivers continue to highlight the Gulf Coast as a key market for natural gas, where we maintain a significant acreage position and development agreements with direct proximity to premium demand centers. these demand drivers continue to highlight the gulf coast as a key market for natural gas where we maintain a significant acreage position and development agreements with direct proximity to premium demand centers Additionally, we continue to closely monitor the potential long-term implications of supply disruptions in the Middle East and how that could add incremental demand for secure U.S. molecules. additionally we continue to closely monitor the potential long-term implications of supply disruptions in the middle east and how that could add incremental demand for secure u.s molecules We believe each of these drivers, coupled with premier natural gas assets in close proximity to the Gulf Coast and infrastructure projects to transport those molecules, positions us well to benefit from the structural demand over time and provide significant value to our unitholders. With that, I'll turn it over to Fowler to walk through additional details on the commercial front. We believe each of these drivers, coupled with premier natural gas assets in close proximity to the Gulf Coast and infrastructure projects to transport those molecules, positions us well to benefit from the structural demand over time and provide significant value to our unitholders. we believe each of these drivers coupled with premier natural gas assets in close proximity to the gulf coast and infrastructure projects to transport those molecules positions us well to benefit from the structural demand over time and provide significant value to our unitholders With that, I'll turn it over to Fowler to walk through additional details on the commercial front. with that i'll turn it over to fowler to walk through additional details on the commercial front

Speaker 3: Thanks, Taylor. Well, it was a great quarter. We executed across our commercial initiatives, building on the momentum established last year, including continued activity under our Haynesville Expansion Acquisition Program. During the quarter, we acquired an additional $12 million of mineral and royalty acreage. This brings total deployment under the program since its inception in 2023 to more than $250 million, further strengthening our positioning across the Haynesville and expanding Shelby Trough area. Operators under our development agreements in the Shelby Trough continued to advance multiple programs during the period. Adamas spud four wells during the quarter and turned online seven wells. This included the Congo wells in southern San Augustine County, which continued to push the historical extent of the Shelby Trough and delivered strong initial results, reaching 30 MMcf per day. Thanks, Taylor. thanks taylor Well, it was a great quarter. well it was a great quarter We executed across our commercial initiatives, building on the momentum established last year, including continued activity under our Haynesville Expansion Acquisition Program. we executed across our commercial initiatives building on the momentum established last year including continued activity under our haynesville expansion acquisition program During the quarter, we acquired an additional $12 million of mineral and royalty acreage. during the quarter we acquired an additional $12 million of mineral and royalty acreage This brings total deployment under the program since its inception in 2023 to more than $250 million, further strengthening our positioning across the Haynesville and expanding Shelby Trough area. this brings total deployment under the program since its inception in 2023 to more than $250 million further strengthening our positioning across the haynesville and expanding shelby trough area Operators under our development agreements in the Shelby Trough continued to advance multiple programs during the period. operators under our development agreements in the shelby trough continued to advance multiple programs during the period Adamas spud four wells during the quarter and turned online seven wells. adamas spud four wells during the quarter and turned online seven wells This included the Congo wells in southern San Augustine County, which continued to push the historical extent of the Shelby Trough and delivered strong initial results, reaching 30 MMcf per day. this included the congo wells in southern san augustine county which continued to push the historical extent of the shelby trough and delivered strong initial results reaching 30 mmcf per day Additionally, Caturus is preparing for their initial activity to begin in June with a pilot hole and several commitment wells. Revenant also spud two wells during the quarter, and as mentioned in the press release last night, one of those wells experienced a loss of well control incident. We are assessing the potential impact on their first-year development program. More broadly, we have continued to see an increase in activity within the legacy Shelby Trough area and the emerging Haynesville Bossier Expansion Resource Play, connecting the Shelby Trough to the western Haynesville. Currently, there are 13 active rigs across Angelina, Nacogdoches, and San Augustine counties under Adamas, Apex, Exco, and Rockcliff. Expand is also actively drilling in the southern Anderson County area while Comstock continues drilling throughout the western Haynesville. Across a broader portfolio, we also saw strong leasing activity and remained encouraged by continued interest in the Permian. Additionally, Caturus is preparing for their initial activity to begin in June with a pilot hole and several commitment wells. additionally caturus is preparing for their initial activity to begin in june with a pilot hole and several commitment wells Revenant also spud two wells during the quarter, and as mentioned in the press release last night, one of those wells experienced a loss of well control incident. revenant also spud two wells during the quarter and as mentioned in the press release last night one of those wells experienced a loss of well control incident We are assessing the potential impact on their first-year development program. we are assessing the potential impact on their first-year development program More broadly, we have continued to see an increase in activity within the legacy Shelby Trough area and the emerging Haynesville Bossier Expansion Resource Play, connecting the Shelby Trough to the western Haynesville. more broadly we have continued to see an increase in activity within the legacy shelby trough area and the emerging haynesville bossier expansion resource play connecting the shelby trough to the western haynesville Currently, there are 13 active rigs across Angelina, Nacogdoches, and San Augustine counties under Adamas, Apex, Exco, and Rockcliff. currently there are 13 active rigs across angelina nacogdoches and san augustine counties under adamas apex exco and rockcliff Expand is also actively drilling in the southern Anderson County area while Comstock continues drilling throughout the western Haynesville. expand is also actively drilling in the southern anderson county area while comstock continues drilling throughout the western haynesville Across a broader portfolio, we also saw strong leasing activity and remained encouraged by continued interest in the Permian. across a broader portfolio we also saw strong leasing activity and remained encouraged by continued interest in the permian Building on that activity, we progressed the opportunity highlighted last quarter in our Shelby Trough expansion area, which includes another approximately 300,000 gross mineral acres. We are currently marketing this project to experienced capable operators to secure an additional development agreement, which we believe would be comparable in scale to our other programs and provide meaningful incremental production growth over time. With that, I'll turn the call over to Chris to cover the financial results. Building on that activity, we progressed the opportunity highlighted last quarter in our Shelby Trough expansion area, which includes another approximately 300,000 gross mineral acres. We are currently marketing this project to experienced capable operators to secure an additional development agreement, which we believe would be comparable in scale to our other programs and provide meaningful incremental production growth over time. building on that activity we progressed the opportunity highlighted last quarter in our shelby trough expansion area which includes another approximately 300,000 gross mineral acres. we are currently marketing this project to experienced capable operators to secure an additional development agreement which we believe would be comparable in scale to our other programs and provide meaningful incremental production growth over time With that, I'll turn the call over to Chris to cover the financial results. with that i'll turn the call over to chris to cover the financial results

Speaker 1: Thanks, Fowler, and good morning. As highlighted earlier, we saw strong production in the first quarter with an overall to production of 35.9 MBOE per day, which is up 16% from the prior quarter. Total production was 37 MBOE per day. The period was also marked by significant commodity price volatility. Natural gas pricing was impacted by extreme weather-driven swings, including Winter Storm, which created regional pricing dislocations and temporarily pressured our realizations relative to Henry Hub in February before conditions moderated in March. Oil pricing, meanwhile, reflected broader geopolitical developments that intensified later in the quarter remain ongoing. As we navigate this environment, we are actively managing our hedge position as part of our broader risk management approach and monitoring pricing and operator activity across the portfolio. Thanks, Fowler, and good morning. thanks fowler and good morning As highlighted earlier, we saw strong production in the first quarter with an overall to production of 35.9 MBOE per day, which is up 16% from the prior quarter. as highlighted earlier we saw strong production in the first quarter with an overall to production of 35.9 mboe per day which is up 16% from the prior quarter Total production was 37 MBOE per day. total production was 37 mboe per day The period was also marked by significant commodity price volatility. the period was also marked by significant commodity price volatility Natural gas pricing was impacted by extreme weather-driven swings, including Winter Storm , which created regional pricing dislocations and temporarily pressured our realizations relative to Henry Hub in February before conditions moderated in March. natural gas pricing was impacted by extreme weather-driven swings including winter storm which created regional pricing dislocations and temporarily pressured our realizations relative to henry hub in february before conditions moderated in march Oil pricing, meanwhile, reflected broader geopolitical developments that intensified later in the quarter remain ongoing. oil pricing meanwhile reflected broader geopolitical developments that intensified later in the quarter remain ongoing As we navigate this environment, we are actively managing our hedge position as part of our broader risk management approach and monitoring pricing and operator activity across the portfolio. as we navigate this environment we are actively managing our hedge position as part of our broader risk management approach and monitoring pricing and operator activity across the portfolio Turning to the quarter's financial results, net income was $13.3 million for the quarter, with adjusted EBITDA at $87 million. 54% of our oil and gas revenue in the quarter came from natural gas and natural gas liquids. As previously announced, we declared a distribution of $0.30 for the quarter, or $1.20 on an annualized basis. Distributable cash flow for the quarter was $76.5 million, which represents 1.2x coverage for the period. In the first quarter, we continued to execute across the business, positioning the partnership well for the balance of 2026. I remain confident that our diversified portfolio across multiple basins, together with our commercial strategy and the expanded Shelby Trough, supports our ability to deliver sustainable long-term value for unitholders. With that, we'll open it up for questions. Turning to the quarter's financial results, net income was $13.3 million for the quarter, with adjusted EBITDA at $87 million. 54% of our oil and gas revenue in the quarter came from natural gas and natural gas liquids. turning to the quarter's financial results net income was $13.3 million for the quarter with adjusted ebitda at $87 million 54% of our oil and gas revenue in the quarter came from natural gas and natural gas liquids As previously announced, we declared a distribution of $0.30 for the quarter, or $1.20 on an annualized basis. as previously announced we declared a distribution of $0.30 for the quarter or $1.20 on an annualized basis Distributable cash flow for the quarter was $76.5 million, which represents 1.2x coverage for the period. distributable cash flow for the quarter was $76.5 million which represents 1.2x coverage for the period In the first quarter, we continued to execute across the business, positioning the partnership well for the balance of 2026. in the first quarter we continued to execute across the business positioning the partnership well for the balance of 2026 I remain confident that our diversified portfolio across multiple basins, together with our commercial strategy and the expanded Shelby Trough, supports our ability to deliver sustainable long-term value for unitholders. i remain confident that our diversified portfolio across multiple basins together with our commercial strategy and the expanded shelby trough supports our ability to deliver sustainable long-term value for unitholders With that, we'll open it up for questions. with that we'll open it up for questions

Speaker 5: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Tim Rezvan with KeyBanc Capital Markets. Tim, your line is now open. We will now begin the question and answer session. we will now begin the question and answer session Please limit yourself to one question and one follow-up. please limit yourself to one question and one follow-up If you would like to ask a question, please press star one to raise your hand. if you would like to ask a question please press star one to raise your hand To withdraw your question, press star one again. to withdraw your question press star one again We ask that you pick up your handset when asking a question to allow for optimum sound quality. we ask that you pick up your handset when asking a question to allow for optimum sound quality If you are muted locally, please remember to unmute your device. if you are muted locally please remember to unmute your device Please stand by while we compile the Q&A roster. please stand by while we compile the q&a roster Your first question comes from the line of Tim Rezvan with KeyBanc Capital Markets. your first question comes from the line of tim rezvan with keybanc capital markets Tim, your line is now open. tim your line is now open

Speaker 7: Hey, good morning, folks, thank you for taking our questions. For my first question, I was hoping you could provide maybe a little more context on what exactly the outcome is with the loss of well control incident from one of Revenant's wells. Does that well eventually get, like, abandoned, or is there still a hope of salvaging it? You know, when you talked about assessing the potential impact, can you talk about what that means? Does that mean some sort of like deferral or delay? Just any more context would be helpful. Thank you. Hey, good morning, folks, thank you for taking our questions. hey good morning folks thank you for taking our questions For my first question, I was hoping you could provide maybe a little more context on what exactly the outcome is with the loss of well control incident from one of Revenant's wells. for my first question i was hoping you could provide maybe a little more context on what exactly the outcome is with the loss of well control incident from one of revenant's wells Does that well eventually get, like, abandoned, or is there still a hope of salvaging it? does that well eventually get like abandoned or is there still a hope of salvaging it You know, when you talked about assessing the potential impact, can you talk about what that means? you know when you talked about assessing the potential impact can you talk about what that means Does that mean some sort of like deferral or delay? does that mean some sort of like deferral or delay Just any more context would be helpful. just any more context would be helpful Thank you. thank you

Speaker 3: Tim, this is Fowler. I'll tackle that. Right now, it just happened. The truth is we don't know. There is an investigation currently ongoing. Right now, I'd say there is potential for going back into that well, and there may be potential for not going back into that well. We just don't know yet. It is too early to tell. That's really it, man. I'm really sorry I can't give you more color. As we get information back, we will be updating folks. Tim, this is Fowler. tim this is fowler I'll tackle that. i'll tackle that Right now, it just happened. right now it just happened The truth is we don't know. the truth is we don't know There is an investigation currently ongoing. there is an investigation currently ongoing Right now, I'd say there is potential for going back into that well, and there may be potential for not going back into that well. right now i'd say there is potential for going back into that well and there may be potential for not going back into that well We just don't know yet. we just don't know yet It is too early to tell. it is too early to tell That's really it, man. that's really it man I'm really sorry I can't give you more color. i'm really sorry i can't give you more color As we get information back, we will be updating folks. as we get information back we will be updating folks

Speaker 7: Okay. Okay, I guess we'll have to stay tuned on that. As, as a follow-up, you had a very strong start to the year on the production front, and you laid out a, you know, pretty granular kinda cadence for you know, your partnerships and their activity. I know you're not a company that adjusts guidance on a quarterly basis, and you sort of reiterated it, can you give us a little more color on maybe what the shape of 2026 production will look like? Does this Revenant, you know, potentially, you know, temper your enthusiasm on the outlook? Just wondering if you had a little more color on that. Okay. okay Okay, I guess we'll have to stay tuned on that. okay i guess we'll have to stay tuned on that As, as a follow-up, you had a very strong start to the year on the production front, and you laid out a, you know, pretty granular kinda cadence for you know, your partnerships and their activity. as as a follow-up you had a very strong start to the year on the production front and you laid out a you know pretty granular kinda cadence for you know your partnerships and their activity I know you're not a company that adjusts guidance on a quarterly basis, and you sort of reiterated it, can you give us a little more color on maybe what the shape of 2026 production will look like? i know you're not a company that adjusts guidance on a quarterly basis and you sort of reiterated it can you give us a little more color on maybe what the shape of 2026 production will look like Does this Revenant, you know, potentially, you know, temper your enthusiasm on the outlook? does this revenant you know potentially you know temper your enthusiasm on the outlook Just wondering if you had a little more color on that. just wondering if you had a little more color on that

Speaker 3: Sorry. I wouldn't say our enthusiasm is tempered in any way, shape, or form. Again, since this just happened, we are actively discussing these things and what that profile will look like this year. As you said, Tim, we don't adjust guidance quarter to quarter, we will get back to you once we have something firmly in place and can understand the situation more clearly. Without putting anything of real substance out there, it might be a bit of a speed bump, over I'm gonna say a two-year period, you won't see any difference. Sorry. sorry I wouldn't say our enthusiasm is tempered in any way, shape, or form. i wouldn't say our enthusiasm is tempered in any way shape or form Again, since this just happened, we are actively discussing these things and what that profile will look like this year. again since this just happened we are actively discussing these things and what that profile will look like this year As you said, Tim, we don't adjust guidance quarter to quarter, we will get back to you once we have something firmly in place and can understand the situation more clearly. as you said tim we don't adjust guidance quarter to quarter we will get back to you once we have something firmly in place and can understand the situation more clearly Without putting anything of real substance out there, it might be a bit of a speed bump, over I'm gonna say a two-year period, you won't see any difference. without putting anything of real substance out there it might be a bit of a speed bump over i'm gonna say a two-year period you won't see any difference

Speaker 6: Yeah. Tim, this is Taylor. I'll just add to that a little bit. You know, I think when we look back at our original guidance, which contemplated quite a bit of production growth kind of throughout the year, even if it was flat, compared to 2025. Certainly, starting out the year with a pretty nice production number helps. As we think about the rest of the year, I would go back to kind of what we thought from just a production growth standpoint, given we're getting these development programs off the ground and excited about what that means for production, especially as it looks to the end of 2026 and going into 2027. Yeah. yeah Tim, this is Taylor. tim this is taylor I'll just add to that a little bit. i'll just add to that a little bit You know, I think when we look back at our original guidance, which contemplated quite a bit of production growth kind of throughout the year, even if it was flat, compared to 2025. you know i think when we look back at our original guidance which contemplated quite a bit of production growth kind of throughout the year even if it was flat compared to 2025 Certainly, starting out the year with a pretty nice production number helps. certainly starting out the year with a pretty nice production number helps As we think about the rest of the year, I would go back to kind of what we thought from just a production growth standpoint, given we're getting these development programs off the ground and excited about what that means for production, especially as it looks to the end of 2026 and going into 2027. as we think about the rest of the year i would go back to kind of what we thought from just a production growth standpoint given we're getting these development programs off the ground and excited about what that means for production especially as it looks to the end of 2026 and going into 2027 I think the other piece of the equation that we're really trying to understand right now, is kind of operators' reaction to pricing right now, with kind of geopolitical events going on in the commodity strip. I think more to come on that. Certainly trying to guide within a pretty volatile environment can be difficult, but we're excited about where we think we're headed for the rest of the year. I think the other piece of the equation that we're really trying to understand right now, is kind of operators' reaction to pricing right now, with kind of geopolitical events going on in the commodity strip. i think the other piece of the equation that we're really trying to understand right now is kind of operators' reaction to pricing right now with kind of geopolitical events going on in the commodity strip I think more to come on that. i think more to come on that Certainly trying to guide within a pretty volatile environment can be difficult, but we're excited about where we think we're headed for the rest of the year. certainly trying to guide within a pretty volatile environment can be difficult but we're excited about where we think we're headed for the rest of the year

Speaker 7: Appreciate the context. Thank you. Appreciate the context. appreciate the context Thank you. thank you

Speaker 6: Thanks, Tim. Thanks, Tim. thanks tim

Speaker 5: Just a reminder, if you would like to ask a question, please press star one to raise your hand. Our next question comes from the line of Derrick Whitfield with Texas Capital. Derrick, your line is now open. Just a reminder, if you would like to ask a question, please press star one to raise your hand. just a reminder if you would like to ask a question please press star one to raise your hand Our next question comes from the line of Derrick Whitfield with Texas Capital. our next question comes from the line of derrick whitfield with texas capital Derrick, your line is now open. derrick your line is now open

Speaker 2: Good morning. Thanks for your time. Good morning. good morning Thanks for your time. thanks for your time

Speaker 6: Morning, Derrick. Morning, Derrick. morning derrick

Speaker 2: With the change in ownership at Aethon and now, Adamas Energy, could you speak to what changes, if any, you're seeing in behavior around desire to grow? With the change in ownership at Aethon and now, Adamas Energy, could you speak to what changes, if any, you're seeing in behavior around desire to grow? with the change in ownership at aethon and now adamas energy could you speak to what changes if any you're seeing in behavior around desire to grow

Speaker 6: Yeah, Derrick, this is Taylor. You know, I'll jump in first and just say I think that given our contractual commitments there, you know, we certainly have at least some expectations on their cadence of operations. Excited about them continuing to move forward in developing the area. I think it's to be determined on excess growth beyond the commitments. That's a conversation we're having, and we'll continue to kinda update as that becomes available. Overall excited about the transaction and the team and continuing to move forward with our contract. Yeah, Derrick, this is Taylor. yeah derrick this is taylor You know, I'll jump in first and just say I think that given our contractual commitments there, you know, we certainly have at least some expectations on their cadence of operations. you know i'll jump in first and just say i think that given our contractual commitments there you know we certainly have at least some expectations on their cadence of operations Excited about them continuing to move forward in developing the area. excited about them continuing to move forward in developing the area I think it's to be determined on excess growth beyond the commitments. i think it's to be determined on excess growth beyond the commitments That's a conversation we're having, and we'll continue to kinda update as that becomes available. that's a conversation we're having and we'll continue to kinda update as that becomes available Overall excited about the transaction and the team and continuing to move forward with our contract. overall excited about the transaction and the team and continuing to move forward with our contract

Speaker 2: Great. With respect to the well control incident, and it feels like the market today is treating this as an issue that impacts a swath of your acreage. As I understand, this is more isolated in nature. Is that a fair characterization? Great. great With respect to the well control incident, and it feels like the market today is treating this as an issue that impacts a swath of your acreage. with respect to the well control incident and it feels like the market today is treating this as an issue that impacts a swath of your acreage As I understand, this is more isolated in nature. as i understand this is more isolated in nature Is that a fair characterization? is that a fair characterization

Speaker 3: Yes. Yes. yes

Speaker 6: Yeah. Thanks, Derrick. What I would say is when you look at that area, and where the well is, it's fully surrounded by development, by the likes of Adamas, Exco, and historically others. I think that the area is pretty well delineated from a subsurface standpoint. We certainly look forward to kind of further development in that overall area. Yeah. yeah Thanks, Derrick. thanks derrick What I would say is when you look at that area, and where the well is, it's fully surrounded by development, by the likes of Adamas, Exco, and historically others. what i would say is when you look at that area and where the well is it's fully surrounded by development by the likes of adamas exco and historically others I think that the area is pretty well delineated from a subsurface standpoint. i think that the area is pretty well delineated from a subsurface standpoint We certainly look forward to kind of further development in that overall area. we certainly look forward to kind of further development in that overall area

Speaker 2: Great. Maybe just one last, if I could. As you guys think about the broader expansion from Shelby Trough to Western Haynesville, could you speak to midstream egress for this region and if it's adequate to meet the needs of where you think growth is headed? Great. great Maybe just one last, if I could. maybe just one last if i could As you guys think about the broader expansion from Shelby Trough to Western Haynesville, could you speak to midstream egress for this region and if it's adequate to meet the needs of where you think growth is headed? as you guys think about the broader expansion from shelby trough to western haynesville could you speak to midstream egress for this region and if it's adequate to meet the needs of where you think growth is headed

Speaker 6: Yeah. Good, good question. There's certainly plenty of, there's quite a bit of infrastructure out there. As you think about the area growing by, potentially several more gross Bcf a day over the coming years, there's a number of other midstream projects that I think are in the queue. You know, probably more to come on exactly what those projects look like. I'd say there's existing plus additional infrastructure kind of underway. Yeah. yeah Good, good question. good good question There's certainly plenty of, there's quite a bit of infrastructure out there. there's certainly plenty of there's quite a bit of infrastructure out there As you think about the area growing by, potentially several more gross Bcf a day over the coming years, there's a number of other midstream projects that I think are in the queue. as you think about the area growing by potentially several more gross bcf a day over the coming years there's a number of other midstream projects that i think are in the queue You know, probably more to come on exactly what those projects look like. you know probably more to come on exactly what those projects look like I'd say there's existing plus additional infrastructure kind of underway. i'd say there's existing plus additional infrastructure kind of underway

Speaker 2: Great. Thanks for your time, guys. Great. great Thanks for your time, guys. thanks for your time guys

Speaker 6: Yeah. Thanks, Derrick. Yeah. yeah Thanks, Derrick. thanks derrick

Speaker 5: There are no further questions at this time. I will now turn the call back to Taylor for closing remarks. There are no further questions at this time. there are no further questions at this time I will now turn the call back to Taylor for closing remarks. i will now turn the call back to taylor for closing remarks

Speaker 6: Thanks so much. Once again, thanks everybody for joining us this morning. It was a great quarter, look forward to the rest of 2026. Talk to you again soon. Thanks. Thanks so much. thanks so much Once again, thanks everybody for joining us this morning. once again thanks everybody for joining us this morning It was a great quarter, look forward to the rest of 2026. it was a great quarter look forward to the rest of 2026 Talk to you again soon. talk to you again soon Thanks. thanks

Speaker 5: This concludes today's call. Thank you for attending. You may now disconnect. This concludes today's call. this concludes today's call Thank you for attending. thank you for attending You may now disconnect. you may now disconnect