Black Stone Minerals, L.P. Reports First Quarter Results
Key Terms
adjusted ebitda financial
distributable cash flow financial
mboe/d technical
commodity derivative instruments financial
credit facility financial
borrowing base financial
hedge position financial
Financial and Operational Highlights
-
Mineral and royalty production for the first quarter of 2026 equaled 35.9 MBoe/d, an increase of
16% from the prior quarter; total production, including working-interest volumes, was 37.0 MBoe/d for the quarter. -
Net income for the first quarter was
$13.3 million $87.0 million -
Distributable cash flow was
$76.5 million -
Black Stone announced a distribution of
$0.30 -
Total debt at the end of the first quarter was
$187.0 million $164.0 million $10.0 million
Management Commentary
“During the first quarter, we continued to execute across our commercial initiatives, building on the momentum established in 2025,” said Fowler Carter, Co-CEO and President of Black Stone Minerals. “Since inception, we have deployed over
Taylor DeWalch, Co-CEO and President added “We delivered a strong first quarter, with production exceeding expectations. Production outperformance was driven primarily by increased natural gas activity in the Louisiana Haynesville and Shelby Trough and strong oil production in the Permian. Results reflected significant commodity price volatility, with natural gas realizations impacted by February regional pricing dislocations from Winter Storm Fern and oil pricing in March reflecting the onset of geopolitical uncertainty. While we are in the early innings of initiating development under multiple agreements in the Haynesville and Bossier expansion play, we remain on track for meaningful production growth through 2026 and beyond. The continued increase in activity across our core areas reinforces a constructive long-term outlook.”
Quarterly Financial and Operating Results
Production
Black Stone reported mineral and royalty volumes of 35.9 MBoe/d (
Working-interest production was 1.1 MBoe/d for the first quarter of 2026, 1.2 MBoe/d in the fourth quarter of 2025, and 1.3 MBoe/d for the first quarter of 2025.
Total reported production averaged 37.0 MBoe/d (
Realized Prices, Revenues, and Net Income
The Partnership’s average realized price per Boe, excluding the effect of derivative settlements, was
Black Stone reported oil and gas revenue of
The Partnership reported a loss on commodity derivative instruments of
Lease bonus and other income was
The Partnership reported net income of
Adjusted EBITDA and Distributable Cash Flow
Adjusted EBITDA for the first quarter of 2026 was
Financial Position and Activities
As of March 31, 2026, Black Stone had
Subsequent to quarter-end, the borrowing base under the credit facility was reaffirmed at
First Quarter 2026 Distributions
As previously announced, the Board approved a cash distribution of
Activity Update
Development Activity
During the first quarter, Adamas Energy (formerly Aethon Energy) was operating three rigs on Black Stone's
The Partnership's agreement with Revenant Energy covers 270,000 gross acres in which we currently control approximately 122,000 undeveloped net acres. Revenant is obligated to drill a minimum of 6 wells in 2026, increasing annually to a minimum of 25 wells per year by 2030. Black Stone also secured a non-operated working interest partner for the development. In November 2025, the agreement was amended to maintain the 6-well commitment for 2026 and convert future commitments to completed gross lateral-foot targets at one well per 7,000 lateral feet, allowing longer laterals while keeping overall development levels unchanged. Revenant spud 2 wells in the first quarter of 2026, one of which experienced a loss of well control incident in April 2026. Black Stone is currently assessing the potential impact of this incident on Revenant’s first year development program and related well commitments.
In November 2025, the Partnership entered into a 220,000 gross acre development agreement with Caturus Energy, which aims to push the Shelby Trough westward towards the Western Haynesville. Activity will begin with approximately 2 gross (0.2 net) wells in the second half of 2026 and ramp up to approximately 12 gross (0.8 net) wells annually by 2031, supported by minimum annual lateral-foot requirements, all net to our interest. In addition to the 2 gross wells in 2026, Caturus plans to drill a pilot well stepping out towards
In the Permian Basin, Coterra Energy continues to develop Black Stone acreage in
Acquisition Activity
The Partnership continues to acquire bolt-on acreage in multiple contractual development programs with significant inventory at high net interests across
In the first quarter of 2026, Black Stone acquired
Hedge Position
Black Stone has commodity derivative contracts in place covering portions of its anticipated production for 2026, and 2027. The Partnership's hedge position as of May 1, 2026, is summarized in the following tables:
Oil Hedge Position |
|
|
|
Oil Swap |
Oil Swap Price |
|
MBbl |
$/Bbl |
2Q26 |
615 |
|
3Q26 |
615 |
|
4Q26 |
615 |
|
1Q27 |
420 |
|
2Q27 |
420 |
|
3Q27 |
420 |
|
4Q27 |
420 |
|
Natural Gas Hedge Position |
||
|
Gas Swap |
Gas Swap Price |
|
BBtu |
$/MMbtu |
2Q26 |
12,740 |
|
3Q26 |
12,880 |
|
4Q26 |
12,880 |
|
1Q27 |
7,200 |
|
2Q27 |
7,280 |
|
3Q27 |
7,360 |
|
4Q27 |
7,360 |
|
More detailed information about the Partnership's existing hedging program can be found in the Quarterly Report on Form 10-Q for the first quarter of 2026, which is expected to be filed on or around May 5, 2026.
Conference Call
Black Stone Minerals will host a conference call and webcast for investors and analysts to discuss its results for the first quarter of 2026 on Tuesday, May 5, 2026 at 9:00 a.m. Central Time. Black Stone recommends participants who do not anticipate asking questions to listen to the call via the live broadcast available at http://investor.blackstoneminerals.com. Analysts and investors who wish to ask questions should dial (833) 461-5787 for domestic participants and (585) 542-9983 for international participants. The conference ID for the call is 490087452. A recording of the conference call will be available on Black Stone's website.
About Black Stone Minerals, L.P.
Black Stone Minerals is one of the largest owners and managers of oil and natural gas mineral interests in
Forward-Looking Statements
This news release includes forward-looking statements. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “will,” “may,” “should,” “expect,” “anticipate,” “plan,” “project,” “intend,” “estimate,” “believe,” “target,” “continue,” “potential,” the negative of such terms, or other comparable terminology often identify forward-looking statements. Except as required by law, Black Stone Minerals undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this news release. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. All forward-looking statements are qualified in their entirety by these cautionary statements. These forward-looking statements involve risks and uncertainties, many of which are beyond the control of Black Stone Minerals, which may cause the Partnership’s actual results to differ materially from those implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those summarized below, as wells as the Risk Factors section in our most recent annual report on Form 10-K:
- the Partnership’s ability to execute its business strategies;
- the volatility of realized oil and natural gas prices;
- the level of production on the Partnership’s properties;
- overall supply and demand for oil and natural gas, and regional supply and demand factors, delays, or interruptions of production;
- conservation measures and general concern about the environmental impact of the production and use of fossil fuels;
- the Partnership’s ability to replace its oil and natural gas reserves;
- general economic, business, or industry conditions including slowdowns, domestically and internationally, and volatility in the securities, capital, or credit markets;
- cybersecurity incidents, including data security breaches or computer viruses;
- competition in the oil and natural gas industry;
- the availability or cost of rigs, equipment, raw materials, supplies, oilfield services or personnel; and
- the level of drilling activity by the Partnership’s operators, particularly in areas such as the Shelby Trough where the Partnership has concentrated acreage positions.
BLACK STONE MINERALS, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per unit amounts) |
|||||||
|
Three Months Ended March 31, |
||||||
|
2026 |
|
2025 |
||||
|
|
|
|
||||
REVENUE |
|
|
|
||||
Oil and condensate sales |
$ |
54,114 |
|
|
$ |
50,093 |
|
Natural gas and natural gas liquids sales |
|
63,408 |
|
|
|
58,235 |
|
Lease bonus and other income |
|
6,387 |
|
|
|
6,925 |
|
Revenue from contracts with customers |
|
123,909 |
|
|
|
115,253 |
|
Gain (loss) on commodity derivative instruments, net |
|
(64,550 |
) |
|
|
(56,001 |
) |
TOTAL REVENUE |
|
59,359 |
|
|
|
59,252 |
|
OPERATING (INCOME) EXPENSE |
|
|
|
||||
Lease operating expense |
|
1,893 |
|
|
|
2,162 |
|
Production costs and ad valorem taxes |
|
9,200 |
|
|
|
10,185 |
|
Exploration expense |
|
4,625 |
|
|
|
5,110 |
|
Depreciation, depletion, and amortization |
|
9,785 |
|
|
|
9,130 |
|
General and administrative |
|
16,832 |
|
|
|
15,172 |
|
Accretion of asset retirement obligations |
|
389 |
|
|
|
332 |
|
TOTAL OPERATING EXPENSE |
|
42,724 |
|
|
|
42,091 |
|
INCOME FROM OPERATIONS |
|
16,635 |
|
|
|
17,161 |
|
OTHER INCOME (EXPENSE) |
|
|
|
||||
Interest and investment income |
|
32 |
|
|
|
64 |
|
Interest expense |
|
(3,361 |
) |
|
|
(1,397 |
) |
Other income (expense), net |
|
(34 |
) |
|
|
120 |
|
TOTAL OTHER EXPENSE |
|
(3,363 |
) |
|
|
(1,213 |
) |
NET INCOME |
|
13,272 |
|
|
|
15,948 |
|
Distributions on Series B cumulative convertible preferred units |
|
(7,366 |
) |
|
|
(7,366 |
) |
NET INCOME ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON UNITS |
$ |
5,906 |
|
|
$ |
8,582 |
|
ALLOCATION OF NET INCOME: |
|
|
|
||||
General partner interest |
$ |
— |
|
|
$ |
— |
|
Common units |
|
5,906 |
|
|
|
8,582 |
|
|
$ |
5,906 |
|
|
$ |
8,582 |
|
NET INCOME ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON UNIT: |
|
|
|
||||
Per common unit (basic) |
$ |
0.03 |
|
|
$ |
0.04 |
|
Per common unit (diluted) |
$ |
0.03 |
|
|
$ |
0.04 |
|
WEIGHTED AVERAGE COMMON UNITS OUTSTANDING: |
|
|
|
||||
Weighted average common units outstanding (basic) |
|
212,369 |
|
|
|
211,253 |
|
Weighted average common units outstanding (diluted) |
|
212,369 |
|
|
|
211,253 |
|
The following table shows the Partnership’s production, revenues, pricing, and expenses for the periods presented:
|
|
Three Months Ended March 31, |
||||||
|
|
2026 |
|
2025 |
||||
|
|
|
|
|
||||
|
|
(Unaudited) (Dollars in thousands, except for realized prices and per Boe data) |
||||||
Production: |
|
|
|
|
||||
Oil and condensate (MBbls) |
|
|
785 |
|
|
|
716 |
|
Natural gas (MMcf)1 |
|
|
15,266 |
|
|
|
14,853 |
|
Equivalents (MBoe) |
|
|
3,329 |
|
|
|
3,192 |
|
Equivalents/day (MBoe) |
|
|
37.0 |
|
|
|
35.5 |
|
Realized prices, without derivatives: |
|
|
|
|
||||
Oil and condensate ($/Bbl) |
|
$ |
68.94 |
|
|
$ |
69.96 |
|
Natural gas ($/Mcf)1 |
|
|
4.15 |
|
|
|
3.92 |
|
Equivalents ($/Boe) |
|
$ |
35.30 |
|
|
$ |
33.94 |
|
Revenue: |
|
|
|
|
||||
Oil and condensate sales |
|
$ |
54,114 |
|
|
$ |
50,093 |
|
Natural gas and natural gas liquids sales1 |
|
|
63,408 |
|
|
|
58,235 |
|
Lease bonus and other income |
|
|
6,387 |
|
|
|
6,925 |
|
Revenue from contracts with customers |
|
|
123,909 |
|
|
|
115,253 |
|
Gain (loss) on commodity derivative instruments |
|
|
(64,550 |
) |
|
|
(56,001 |
) |
Total revenue |
|
$ |
59,359 |
|
|
$ |
59,252 |
|
Operating expenses: |
|
|
|
|
||||
Lease operating expense |
|
$ |
1,893 |
|
|
$ |
2,162 |
|
Production costs and ad valorem taxes |
|
|
9,200 |
|
|
|
10,185 |
|
Exploration expense |
|
|
4,625 |
|
|
|
5,110 |
|
Depreciation, depletion, and amortization |
|
|
9,785 |
|
|
|
9,130 |
|
General and administrative |
|
|
16,832 |
|
|
|
15,172 |
|
Other expense: |
|
|
|
|
||||
Interest expense |
|
|
3,361 |
|
|
|
1,397 |
|
Per Boe: |
|
|
|
|
||||
Lease operating expense (per working-interest Boe) |
|
$ |
18.77 |
|
|
$ |
18.66 |
|
Production costs and ad valorem taxes |
|
|
2.76 |
|
|
|
3.19 |
|
Depreciation, depletion, and amortization |
|
|
2.94 |
|
|
|
2.86 |
|
General and administrative |
|
|
5.06 |
|
|
|
4.75 |
|
1 |
As a mineral-and-royalty-interest owner, Black Stone Minerals is often provided insufficient and inconsistent data on natural gas liquid ("NGL") volumes by its operators. As a result, the Partnership is unable to reliably determine the total volumes of NGLs associated with the production of natural gas on its acreage. Accordingly, no NGL volumes are included in reported production; however, revenue attributable to NGLs is included in natural gas revenue and the calculation of realized prices for natural gas. |
|||
Non-GAAP Financial Measures
Adjusted EBITDA and Distributable Cash Flow are supplemental non-GAAP financial measures used by Black Stone’s management and external users of the Partnership’s financial statements such as investors, research analysts, and others, to assess the financial performance of its assets and its ability to sustain distributions over the long term without regard to financing methods, capital structure, or historical cost basis.
The Partnership defines Adjusted EBITDA as net income (loss) before interest expense, income taxes, and depreciation, depletion, and amortization adjusted for impairment of oil and natural gas properties, if any, accretion of asset retirement obligations, seismic data acquisition costs, non-cash equity-based compensation, unrealized gains and losses on commodity derivative instruments, and gains and losses on sales of assets, if any. Black Stone defines Distributable Cash Flow as Adjusted EBITDA plus or minus amounts for certain non-cash operating activities, cash interest expense, distributions to preferred unitholders, and restructuring charges, if any.
Beginning with the three months and year ended December 31, 2025, the Partnership revised its definition of Adjusted EBITDA to exclude seismic data acquisition costs, which are included in Exploration expense on the Partnership’s consolidated statements of operations. Comparative amounts for the three months ended March 31, 2026 and 2025, respectively, for each of Adjusted EBITDA and Distributable Cash Flow have been recast to conform to the current period presentation. Management believes this revised definition enhances comparability between periods and reflects the Partnership’s view of seismic data acquisition costs as investments that support the long-term development and value of its mineral and royalty interests.
Adjusted EBITDA and Distributable Cash Flow should not be considered an alternative to, or more meaningful than, net income (loss), income (loss) from operations, cash flows from operating activities, or any other measure of financial performance presented in accordance with generally accepted accounting principles ("GAAP") in
Adjusted EBITDA and Distributable Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income (loss), the most directly comparable
|
|
Three Months Ended March 31, |
||||||
|
|
2026 |
|
2025 |
||||
|
|
|
|
|
||||
|
|
(Unaudited) (In thousands, except per unit amounts) |
||||||
Net income |
|
$ |
13,272 |
|
|
$ |
15,948 |
|
Adjustments to reconcile to Adjusted EBITDA: |
|
|
|
|
||||
Depreciation, depletion, and amortization |
|
|
9,785 |
|
|
|
9,130 |
|
Interest expense |
|
|
3,361 |
|
|
|
1,397 |
|
Income tax expense (benefit) |
|
|
62 |
|
|
|
(85 |
) |
Accretion of asset retirement obligations |
|
|
389 |
|
|
|
332 |
|
Seismic data acquisition costs |
|
|
4,256 |
|
|
|
4,829 |
|
Equity–based compensation |
|
|
3,551 |
|
|
|
3,055 |
|
Unrealized (gain) loss on commodity derivative instruments |
|
|
52,306 |
|
|
|
52,390 |
|
Adjusted EBITDA |
|
|
86,982 |
|
|
|
86,996 |
|
Adjustments to reconcile to Distributable Cash Flow: |
|
|
|
|
||||
Change in deferred revenue |
|
|
(1 |
) |
|
|
(1 |
) |
Cash interest expense |
|
|
(3,099 |
) |
|
|
(1,123 |
) |
Preferred unit distributions |
|
|
(7,366 |
) |
|
|
(7,366 |
) |
Distributable Cash Flow |
|
$ |
76,516 |
|
|
$ |
78,506 |
|
|
|
|
|
|
||||
Total units outstanding1 |
|
|
212,499 |
|
|
|
211,636 |
|
Distributable Cash Flow per unit |
|
$ |
0.360 |
|
|
$ |
0.371 |
|
1 |
The distribution attributable to the three months ended March 31, 2026 is estimated using 212,499,331 common units as of May 1, 2026; the exact amount of the distribution attributable to the three months ended March 31, 2026 will be determined based on units outstanding as of the record date of May 8, 2026. Distributions attributable to the three months ended March 31, 2025 were calculated using 211,636,423 common units as of the record date of May 8, 2025. |
||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20260504881724/en/
Black Stone Minerals, L.P. Contact
Chris Bonner
Senior Vice President, Chief Financial Officer, and Treasurer
Telephone: (713) 445-3200
investorrelations@blackstoneminerals.com
Source: Black Stone Minerals, L.P.