Black Stone Minerals, L.P. Reports Third Quarter Results
Financial and Operational Highlights
-
Mineral and royalty production for the third quarter of 2025 equaled 34.7 MBoe/d, an increase of
5% from the prior quarter; total production, including working-interest volumes, was 36.3 MBoe/d for the quarter. -
Net income for the third quarter was
$91.7 million $86.3 million -
Distributable cash flow was
$76.8 million -
Black Stone announced a distribution of
$0.30 -
Total debt at the end of the third quarter was
$95.0 million $73.0 million $3.6 million
Management Commentary
Leadership Succession
In addition to BSM’s third quarter earnings, the Partnership today is announcing its leadership succession plan, which will be effective January 1, 2026. At that time, Tom Carter will move into the role of Executive Chairman, and Fowler Carter and Taylor DeWalch will succeed him as co-Chief Executive Officers and be appointed to the Board of Directors of BSM’s general partner. Chris Bonner will be promoted to Senior Vice President and Chief Financial Officer.
Carin Barth, BSM’s Lead Director, remarked, “On behalf of the Board of Directors, I am excited to announce these promotions with full confidence in the continued stewardship of Black Stone and our strategy to focus on organic growth and to maintain financial discipline for the benefit of our unitholders. We are incredibly grateful to Tom for his visionary and steadfast leadership since Black Stone’s founding and look forward to his continued guidance in his role as Executive Chairman. Fowler's and Taylor’s complementary skill sets in the co-CEO role will undoubtedly provide unified leadership for BSM to maintain its strong track record as a leader in the oil and gas minerals industry. Finally, we are excited to appoint Chris to CFO, where Black Stone will continue to benefit from his leadership and commitment to excellence.”
Tom Carter added, “It is with great pleasure that we announce the appointment of Fowler and Taylor to co-CEOs and Chris to CFO in January. The future of BSM could not be brighter, and I am excited to continue our unwavering pursuit of strategic growth through acquisitions, development, and asset management. Having worked closely with Fowler, Taylor, and Chris, I am confident that their leadership of our exceptional team will provide many years of prosperity for BSM and its unitholders.”
Fowler Carter and Taylor DeWalch said, “We are honored and grateful for the opportunity to lead this great organization, following Tom’s unparalleled legacy of entrepreneurship, and we remain focused on the commercial strategy alongside the great team at BSM. Our unified priorities align with Tom’s leadership that has made BSM the premier, diversified minerals and royalty business that it is today. We appreciate Tom’s continued mentorship as Executive Chairman and the support of the Board of Directors, and we look forward to an exciting future for Black Stone.”
Director Resignation
On October 30, 2025, Will Mathis tendered his resignation from the Board, effective immediately, to focus on other commitments. Mr. Mathis’s resignation is not the result of any disagreement with the Partnership’s operations, policies, or procedures. Mr. Mathis served as a director of BSM and its predecessors for over 16 years, including as the Chair of its Nominating and Governance Committee.
Mr. Mathis thanked the Board and management, noting, “It’s been a pleasure to have been a part of BSM’s evolution over the last two decades as an investor and a director. I look forward to seeing Black Stone continue to grow under the leadership of Fowler and Taylor.”
Tom Carter added, “On behalf of the Board, I want to thank Will for his contributions during his long service as a director. He has been with us as we have transformed from a fund manager to a private partnership to a public company and has been a key voice as the Chair of the Nominating and Governance Committee.”
Will Randall has been named as Chair of the Nominating and Governance Committee, and Jerry Kyle has been appointed to fill the vacancy on that committee. The Board expects to fill the vacancy caused by Mr. Mathis’s resignation in due course.
Quarterly Financial and Operating Results
Production
Black Stone reported mineral and royalty volumes of 34.7 MBoe/d (
Working-interest production was 1.6 MBoe/d for the third quarter of 2025, 1.4 MBoe/d in the second quarter of 2025, and 2.1 MBoe/d for the third quarter of 2024.
Total reported production averaged 36.3 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 gain 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 third quarter of 2025 was
Financial Position and Activities
As of September 30, 2025, Black Stone had
Subsequent to quarter-end, Black Stone amended its credit facility to extend the maturity date from October 31, 2027 to October 31, 2030. Concurrent with the amendment, the borrowing base under the credit facility was reaffirmed at
Third Quarter 2025 Distributions
As previously announced, the Board approved a cash distribution of
Activity Update
Development Activity
At the end of the third quarter, Aethon Energy ("Aethon") was operating one rig on our
As previously announced, the Partnership continues to acquire bolt-on acreage in multiple contractual development programs with significant inventory at high-net interest across
BSM's agreement with Revenant Energy covers 270,000 gross acres in which BSM currently controls approximately 122,000 undeveloped net acres. Through this agreement, Revenant is obligated to drill a minimum of 6 wells in 2026, increasing to a minimum of 25 wells per year over the next five years. The Partnership has also secured a non-operated working interest partner for the development.
Black Stone is also in the process of marketing an additional development opportunity, covering approximately 220,000 gross acres, which aims to push the Shelby Trough westward towards the Western Haynesville with a single well commitment in 2026 increasing to 12 wells annually by 2030.
In the Louisiana Haynesville, development continued under our Accelerated Drilling Agreements (“ADAs”). These agreements incentivize operators to accelerate development in our high-interest areas in exchange for a modest reduction in royalty burden, allowing us to capture near-term revenue and reduce uncertainty about where the locations sit in the operator's development plan. Recently, 2 gross (0.13 net) wells in De Soto and Sabine Parishes were turned to sales under our ADAs. This brings the total well count under the ADA program to 9.
In the Permian Basin, the Partnership continues to monitor activity including a large-scale development expected to generate meaningful liquids volumes in 2025 and beyond. A large operator has spud 34 gross (1.22 net) wells on our acreage in
Acquisition Activity
In the third quarter of 2025, Black Stone acquired
Update to Hedge Position
Black Stone has commodity derivative contracts in place covering portions of its anticipated production for 2025, 2026, and 2027. The Partnership's hedge position as of October 31, 2025, is summarized in the following tables:
Oil Hedge Position |
|
|
|
Oil Swap |
Oil Swap Price |
|
MBbl |
$/Bbl |
4Q25 |
555 |
|
1Q26 |
615 |
|
2Q26 |
615 |
|
3Q26 |
615 |
|
4Q26 |
615 |
|
1Q27 |
120 |
|
2Q27 |
120 |
|
3Q27 |
120 |
|
4Q27 |
120 |
|
Natural Gas Hedge Position |
||
|
Gas Swap |
Gas Swap Price |
|
BBtu |
$/MMbtu |
4Q25 |
11,040 |
|
1Q26 |
11,700 |
|
2Q26 |
11,830 |
|
3Q26 |
11,960 |
|
4Q26 |
11,960 |
|
1Q27 |
5,400 |
|
2Q27 |
5,460 |
|
3Q27 |
5,520 |
|
4Q27 |
5,520 |
|
More detailed information about the Partnership's existing hedging program can be found in the Quarterly Report on Form 10-Q for the third quarter of 2025, which is expected to be filed on or around November 4, 2025.
Conference Call
Black Stone Minerals will host a conference call and webcast for investors and analysts to discuss its results for the third quarter of 2025 on Tuesday, November 4, 2025 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 (800) 715-9871 for domestic participants and (646) 307-1963 for international participants, the conference ID for the call is 8003975. Call participants are advised to call in 10 minutes in advance of the call start time. A replay of the conference call will be available approximately two hours after the call through a link on BSM’s investor relations website.
About Black Stone Minerals, L.P.
Black Stone Minerals is one of the largest owners 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. You 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:
- 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, as well as regional supply and demand factors, delays, or interruptions of production;
- domestic and foreign trade policies, including tariffs and other controls on imports or exports of goods, including energy products;
- 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 Haynesville 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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
||||||||
REVENUE |
|
|
|
|
|
|
|
||||||||
Oil and condensate sales |
$ |
57,091 |
|
|
$ |
63,999 |
|
|
$ |
162,991 |
|
|
$ |
209,112 |
|
Natural gas and natural gas liquids sales |
|
43,086 |
|
|
|
37,039 |
|
|
|
147,510 |
|
|
|
115,543 |
|
Lease bonus and other income |
|
5,006 |
|
|
|
2,143 |
|
|
|
16,645 |
|
|
|
10,480 |
|
Revenue from contracts with customers |
|
105,183 |
|
|
|
103,181 |
|
|
|
327,146 |
|
|
|
335,135 |
|
Gain (loss) on commodity derivative instruments |
|
27,287 |
|
|
|
31,675 |
|
|
|
24,070 |
|
|
|
14,838 |
|
TOTAL REVENUE |
|
132,470 |
|
|
|
134,856 |
|
|
|
351,216 |
|
|
|
349,973 |
|
OPERATING (INCOME) EXPENSE |
|
|
|
|
|
|
|
||||||||
Lease operating expense |
|
2,753 |
|
|
|
2,422 |
|
|
|
7,905 |
|
|
|
7,433 |
|
Production costs and ad valorem taxes |
|
10,935 |
|
|
|
12,369 |
|
|
|
30,146 |
|
|
|
38,876 |
|
Exploration expense |
|
2,151 |
|
|
|
2,562 |
|
|
|
9,010 |
|
|
|
2,579 |
|
Depreciation, depletion, and amortization |
|
9,900 |
|
|
|
11,258 |
|
|
|
28,217 |
|
|
|
34,253 |
|
General and administrative |
|
12,287 |
|
|
|
12,801 |
|
|
|
41,383 |
|
|
|
40,286 |
|
Accretion of asset retirement obligations |
|
344 |
|
|
|
324 |
|
|
|
1,013 |
|
|
|
962 |
|
TOTAL OPERATING EXPENSE |
|
38,370 |
|
|
|
41,736 |
|
|
|
117,674 |
|
|
|
124,389 |
|
INCOME FROM OPERATIONS |
|
94,100 |
|
|
|
93,120 |
|
|
|
233,542 |
|
|
|
225,584 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
||||||||
Interest and investment income |
|
62 |
|
|
|
344 |
|
|
|
182 |
|
|
|
1,476 |
|
Interest expense |
|
(2,426 |
) |
|
|
(724 |
) |
|
|
(6,093 |
) |
|
|
(1,979 |
) |
Other income (expense) |
|
(7 |
) |
|
|
(9 |
) |
|
|
74 |
|
|
|
(101 |
) |
TOTAL OTHER EXPENSE |
|
(2,371 |
) |
|
|
(389 |
) |
|
|
(5,837 |
) |
|
|
(604 |
) |
NET INCOME |
|
91,729 |
|
|
|
92,731 |
|
|
|
227,705 |
|
|
|
224,980 |
|
Distributions on Series B cumulative convertible preferred units |
|
(7,366 |
) |
|
|
(7,366 |
) |
|
|
(22,099 |
) |
|
|
(22,099 |
) |
NET INCOME ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON UNITS |
$ |
84,363 |
|
|
$ |
85,365 |
|
|
$ |
205,606 |
|
|
$ |
202,881 |
|
ALLOCATION OF NET INCOME: |
|
|
|
|
|
|
|
||||||||
General partner interest |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Common units |
|
84,363 |
|
|
|
85,365 |
|
|
|
205,606 |
|
|
|
202,881 |
|
|
$ |
84,363 |
|
|
$ |
85,365 |
|
|
$ |
205,606 |
|
|
$ |
202,881 |
|
NET INCOME ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON UNIT: |
|
|
|
|
|
|
|
||||||||
Per common unit (basic) |
$ |
0.40 |
|
|
$ |
0.41 |
|
|
$ |
0.97 |
|
|
$ |
0.96 |
|
Per common unit (diluted) |
$ |
0.40 |
|
|
$ |
0.41 |
|
|
$ |
0.97 |
|
|
$ |
0.96 |
|
WEIGHTED AVERAGE COMMON UNITS OUTSTANDING: |
|
|
|
|
|
|
|
||||||||
Weighted average common units outstanding (basic) |
|
211,852 |
|
|
|
210,687 |
|
|
|
211,600 |
|
|
|
210,680 |
|
Weighted average common units outstanding (diluted) |
|
211,852 |
|
|
|
210,687 |
|
|
|
211,600 |
|
|
|
210,680 |
|
The following table shows the Partnership’s production, revenues, pricing, and expenses for the periods presented:
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
|
|
|
|
|
|
|
||||
|
|
(Unaudited) (Dollars in thousands, except for realized prices and per Boe data) |
||||||||||
Production: |
|
|
|
|
|
|
|
|
||||
Oil and condensate (MBbls) |
|
|
912 |
|
|
875 |
|
|
2,491 |
|
|
2,751 |
Natural gas (MMcf)1 |
|
|
14,556 |
|
|
15,369 |
|
|
43,119 |
|
|
48,190 |
Equivalents (MBoe) |
|
|
3,338 |
|
|
3,437 |
|
|
9,678 |
|
|
10,783 |
Equivalents/day (MBoe) |
|
|
36.3 |
|
|
37.4 |
|
|
35.4 |
|
|
39.4 |
Realized prices, without derivatives: |
|
|
|
|
|
|
|
|
||||
Oil and condensate ($/Bbl) |
|
$ |
62.60 |
|
$ |
73.15 |
|
$ |
65.43 |
|
$ |
76.01 |
Natural gas ($/Mcf)1 |
|
|
2.96 |
|
|
2.41 |
|
|
3.42 |
|
|
2.40 |
Equivalents ($/Boe) |
|
$ |
30.01 |
|
$ |
29.40 |
|
$ |
32.08 |
|
$ |
30.11 |
Revenue: |
|
|
|
|
|
|
|
|
||||
Oil and condensate sales |
|
$ |
57,091 |
|
$ |
63,999 |
|
$ |
162,991 |
|
$ |
209,112 |
Natural gas and natural gas liquids sales1 |
|
|
43,086 |
|
|
37,039 |
|
|
147,510 |
|
|
115,543 |
Lease bonus and other income |
|
|
5,006 |
|
|
2,143 |
|
|
16,645 |
|
|
10,480 |
Revenue from contracts with customers |
|
|
105,183 |
|
|
103,181 |
|
|
327,146 |
|
|
335,135 |
Gain (loss) on commodity derivative instruments |
|
|
27,287 |
|
|
31,675 |
|
|
24,070 |
|
|
14,838 |
Total revenue |
|
$ |
132,470 |
|
$ |
134,856 |
|
$ |
351,216 |
|
$ |
349,973 |
Operating expenses: |
|
|
|
|
|
|
|
|
||||
Lease operating expense |
|
$ |
2,753 |
|
$ |
2,422 |
|
$ |
7,905 |
|
$ |
7,433 |
Production costs and ad valorem taxes |
|
|
10,935 |
|
|
12,369 |
|
|
30,146 |
|
|
38,876 |
Exploration expense |
|
|
2,151 |
|
|
2,562 |
|
|
9,010 |
|
|
2,579 |
Depreciation, depletion, and amortization |
|
|
9,900 |
|
|
11,258 |
|
|
28,217 |
|
|
34,253 |
General and administrative |
|
|
12,287 |
|
|
12,801 |
|
|
41,383 |
|
|
40,286 |
Other expense: |
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
2,426 |
|
|
724 |
|
|
6,093 |
|
|
1,979 |
Per Boe: |
|
|
|
|
|
|
|
|
||||
Lease operating expense (per working-interest Boe) |
|
$ |
19.42 |
|
$ |
12.75 |
|
$ |
20.55 |
|
$ |
12.51 |
Production costs and ad valorem taxes |
|
|
3.28 |
|
|
3.60 |
|
|
3.11 |
|
|
3.61 |
Depreciation, depletion, and amortization |
|
|
2.97 |
|
|
3.28 |
|
|
2.92 |
|
|
3.18 |
General and administrative |
|
|
3.68 |
|
|
3.72 |
|
|
4.28 |
|
|
3.74 |
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 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, unrealized gains and losses on commodity derivative instruments, non-cash equity-based compensation, 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.
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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
(Unaudited) (In thousands, except per unit amounts) |
||||||||||||||
Net income |
|
$ |
91,729 |
|
|
$ |
92,731 |
|
|
$ |
227,705 |
|
|
$ |
224,980 |
|
Adjustments to reconcile to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
||||||||
Depreciation, depletion, and amortization |
|
|
9,900 |
|
|
|
11,258 |
|
|
|
28,217 |
|
|
|
34,253 |
|
Interest expense |
|
|
2,426 |
|
|
|
724 |
|
|
|
6,093 |
|
|
|
1,979 |
|
Income tax expense (benefit) |
|
|
41 |
|
|
|
39 |
|
|
|
(36 |
) |
|
|
225 |
|
Accretion of asset retirement obligations |
|
|
344 |
|
|
|
324 |
|
|
|
1,013 |
|
|
|
962 |
|
Equity–based compensation |
|
|
2,208 |
|
|
|
2,177 |
|
|
|
7,223 |
|
|
|
6,765 |
|
Unrealized (gain) loss on commodity derivative instruments |
|
|
(20,372 |
) |
|
|
(20,811 |
) |
|
|
(17,621 |
) |
|
|
21,642 |
|
Adjusted EBITDA |
|
|
86,276 |
|
|
|
86,442 |
|
|
|
252,594 |
|
|
|
290,806 |
|
Adjustments to reconcile to Distributable cash flow: |
|
|
|
|
|
|
|
|
||||||||
Change in deferred revenue |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
Cash interest expense |
|
|
(2,146 |
) |
|
|
(453 |
) |
|
|
(5,263 |
) |
|
|
(1,172 |
) |
Preferred unit distributions |
|
|
(7,366 |
) |
|
|
(7,366 |
) |
|
|
(22,099 |
) |
|
|
(22,099 |
) |
Distributable cash flow |
|
$ |
76,763 |
|
|
$ |
78,622 |
|
|
$ |
225,229 |
|
|
$ |
267,532 |
|
|
|
|
|
|
|
|
|
|
||||||||
Total units outstanding1 |
|
|
211,862 |
|
|
|
210,695 |
|
|
|
|
|
||||
Distributable cash flow per unit |
|
$ |
0.362 |
|
|
$ |
0.373 |
|
|
|
|
|
||||
1 |
The distribution attributable to the three months ended September 30, 2025 is estimated using 211,862,412 common units as of October 31, 2025; the exact amount of the distribution attributable to the three months ended September 30, 2025 will be determined based on units outstanding as of the record date of November 6, 2025. Distributions attributable to the three months ended September 30, 2024 were calculated using 210,694,933 common units as of the record date of November 8, 2024. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20251103042044/en/
Black Stone Minerals, L.P. Contact
Taylor DeWalch
Senior Vice President, Chief Financial Officer, and Treasurer
Telephone: (713) 445-3200
investorrelations@blackstoneminerals.com
Source: Black Stone Minerals, L.P.
