STOCK TITAN
  1. Home
  2. Sec-filings
  3. BSM
  4. [8-K] Black Stone Minerals, L.P. Reports Material Event

Q1 2026 results lift output at Black Stone Minerals (NYSE: BSM)

Filing Impact
(Very High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Black Stone Minerals, L.P. reported higher volumes and cash generation for the first quarter of 2026 while net income was pressured by hedge losses. Mineral and royalty production averaged 35.9 MBoe/d, up 16% from the prior quarter, and total production reached 37.0 MBoe/d.

Revenue from oil, gas, and NGL sales rose to $117.5 million as the average realized price increased to $35.30 per Boe. A $64.6 million loss on commodity derivatives, mostly non-cash, limited net income to $13.3 million. Adjusted EBITDA was $87.0 million and Distributable Cash Flow was $76.5 million.

The Partnership declared a cash distribution of $0.30 per common unit, with 1.20x coverage. Total debt was $187.0 million at quarter-end and declined to $164.0 million by May 1, 2026. The credit facility borrowing base was reaffirmed at $580.0 million, with elected commitments of $375.0 million, and Black Stone maintained extensive oil and gas hedges through 2027.

Positive

  • None.

Negative

  • None.

Insights

Production and cash flow improved, but hedge losses weighed on net income.

Black Stone Minerals grew total production to 37.0 MBoe/d in Q1 2026, with mineral and royalty volumes up 16% from the prior quarter. Higher realized pricing lifted oil and gas revenue to $117.5M, supporting Adjusted EBITDA of $87.0M and Distributable Cash Flow of $76.5M.

A net loss of $64.6M on commodity derivative instruments, largely from non-cash mark-to-market changes, held GAAP net income to $13.3M. The partnership still covered its $0.30 per-unit distribution 1.20x and reduced credit facility borrowings from $187.0M at March 31, 2026 to $164.0M at May 1, 2026.

The reaffirmed $580.0M borrowing base and elected $375.0M commitments, combined with oil and gas swaps extending through 2027, indicate substantial liquidity and price protection. Future disclosures in the Q1 2026 Form 10-Q and subsequent periods will show how development programs in the Shelby Trough and Permian translate into ongoing volume and cash flow trends.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Oil and gas revenue $117.5M Q1 2026 oil and condensate plus natural gas and NGL sales
Net income $13.3M Q1 2026 consolidated net income
Adjusted EBITDA $87.0M Q1 2026 Adjusted EBITDA as defined by the Partnership
Distributable Cash Flow $76.5M Q1 2026 Distributable Cash Flow
Total production 37.0 MBoe/d Average daily production for Q1 2026
Quarterly distribution $0.30 per unit Cash distribution attributable to Q1 2026 with 1.20x coverage
Credit facility borrowing base $580.0M Borrowing base reaffirmed after Q1 2026; commitments elected at $375.0M
Oil swaps Q2 2026 615 MBbl at $64.39/Bbl Hedged oil volumes and fixed price for Q2 2026
Adjusted EBITDA financial
"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"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Distributable Cash Flow financial
"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"
Distributable cash flow is the amount of money a business generates from its operations that management considers available to pay dividends, buy back shares, or make other distributions to owners after setting aside what’s needed to keep the business running and meet routine obligations. Investors care because it shows how much real cash can be returned to them—like a household’s leftover paycheck after paying rent and groceries—and helps judge whether payouts are sustainable and backed by operations rather than accounting entries.
borrowing base financial
"Subsequent to quarter-end, the borrowing base under the credit facility was reaffirmed at $580.0 million"
A borrowing base is the amount a lender will allow a company to borrow based on the value of assets the company offers as security, typically things like accounts receivable and inventory. It matters to investors because it sets a practical ceiling on short-term financing and influences a company’s liquidity and risk: if the borrowing base falls, the company may lose access to cash or be forced to sell assets, which can affect operations and share value.
commodity derivative instruments financial
"The Partnership reported a loss on commodity derivative instruments of $64.6 million for the first quarter of 2026"
Contracts whose value is tied to physical goods like oil, metals, grain or natural gas, allowing parties to agree now on prices or payouts for those goods to be delivered or settled later. Think of them like a price lock or an agreed bet on the future cost of a commodity: businesses use them to protect against big swings in input costs, while investors use them to gain exposure or speculate. They matter because they can reduce or increase portfolio risk quickly and often involve leverage, magnifying gains or losses.
mineral and royalty interests financial
"Black Stone Minerals is one of the largest owners and managers of oil and natural gas mineral interests in the United States"
Shelby Trough technical
"In the Shelby Trough, operators under our development agreements continue to progress activity across multiple programs"
Revenue from contracts with customers $123.9M
Total revenue (after derivatives) $59.4M
Net income $13.3M
Adjusted EBITDA $87.0M
Distributable Cash Flow $76.5M
Total production 37.0 MBoe/d
Understanding 8-K Material Events →
0001621434FALSE00016214342026-05-042026-05-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
 Date of Report (Date of earliest event reported): May 04, 2026
Black Stone Minerals, L.P.

(Exact name of registrant as specified in its charter)
Delaware001-3736247-1846692
(State or other jurisdiction(Commission File Number)(I.R.S. Employer
of incorporation or organization) Identification No.)
 
1001 Fannin Street, Suite 2020 
Houston,Texas
77002
(Address of principal executive offices) (Zip code)
 
Registrant’s telephone number, including area code:

 Not Applicable
(Former name or former address, if changed since last report)

(713)
445-3200

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Units Representing Limited Partner InterestsBSMNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


The information included in this Current Report, including the exhibit attached hereto as Exhibit 99.1, is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. That information shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.

Item 2.02.  Results of Operations and Financial Condition.
 
On May 4, 2026, Black Stone Minerals, L.P. (“Black Stone Minerals”) issued a press release that announced its first quarter 2026 financial and operating results. A copy of the press release is furnished herewith as Exhibit 99.1.

Item 9.01.  Financial Statements and Exhibits.

(d)    Exhibits
Exhibit NumberDescription
99.1
Black Stone Minerals, L.P. Press Release, dated May 4, 2026
104Black Stone Minerals, L.P. Press Release, dated Cover Page Interactive Data File (formatted as Inline XBRL).

2

SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 BLACK STONE MINERALS, L.P.
   
 By:Black Stone Minerals GP, L.L.C.,
its general partner
   
Date: May 4, 2026By:/s/ Steve Putman
  Steve Putman
  Senior Vice President, General Counsel, and Secretary

3

Exhibit Index
 
Exhibit Number Description
99.1
 Black Stone Minerals, L.P. Press Release, dated May 4, 2026
104Black Stone Minerals, L.P. Press Release, dated Cover Page Interactive Data File (formatted as Inline XBRL).

4

gb5vcvwhah10000001a03a.jpg
Exhibit 99.1
 
 
News
For Immediate Release
 
Black Stone Minerals, L.P. Reports First Quarter Results




HOUSTON - (BUSINESS WIRE) - Black Stone Minerals, L.P. (NYSE: BSM) ("Black Stone Minerals," "Black Stone," or "the Partnership") today announces its financial and operating results for the first quarter of 2026.

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, and Adjusted EBITDA for the quarter totaled $87.0 million.
•Distributable cash flow was $76.5 million for the first quarter.
•Black Stone announced a distribution of $0.30 per unit with respect to the first quarter of 2026. Distribution coverage for all units was 1.20x.
•Total debt at the end of the first quarter was $187.0 million; as of May 1, 2026, total debt was $164.0 million with approximately $10.0 million of cash on hand.

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 $250 million through our mineral acquisition program to enhance our long-term development position in the expanding Haynesville and Bossier play. In the Shelby Trough, operators under our development agreements continue to progress activity across multiple programs. Throughout the broader portfolio we had another strong quarter of leasing activity and remain encouraged by continued high-interest development in the Permian. As activity continues to ramp up across our core areas, we remain focused on execution and positioning the portfolio for sustained production and cash flow growth over time.”

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 (77% natural gas) for the first quarter of 2026, compared to 30.9 MBoe/d for the fourth quarter of 2025 and 34.2 MBoe/d for the first quarter of 2025.

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 (97% mineral and royalty, 76% natural gas) for the first quarter of 2026, compared to 32.1 MBoe/d and 35.5 MBoe/d for the fourth quarter of 2025 and the first quarter of 2025, respectively.



Realized Prices, Revenues, and Net Income

The Partnership’s average realized price per Boe, excluding the effect of derivative settlements, was $35.30 for the first quarter of 2026. This is an increase of 15% from $30.63 per Boe in the fourth quarter of 2025 and a 4% increase from $33.94 in the first quarter of 2025.

Black Stone reported oil and gas revenue of $117.5 million (46% oil and condensate) for the first quarter of 2026, an increase of 30% from $90.5 million in the fourth quarter of 2025. Oil and gas revenue in the first quarter of 2025 was $108.3 million.

The Partnership reported a loss on commodity derivative instruments of $64.6 million for the first quarter of 2026, composed of a $12.2 million loss from realized settlements and a non-cash $52.3 million unrealized loss due to the change in value of Black Stone’s derivative positions during the quarter. Black Stone reported a gain of $23.5 million and a loss of $56.0 million on commodity derivative instruments for the fourth quarter of 2025 and the first quarter of 2025, respectively.

Lease bonus and other income was $6.4 million for the first quarter of 2026. Lease bonus and other income for the fourth quarter of 2025 and the first quarter of 2025 was $4.7 million and $6.9 million, respectively.

The Partnership reported net income of $13.3 million for the first quarter of 2026, compared to net income of $72.2 million in the preceding quarter. For the first quarter of 2025, the Partnership reported net income of $15.9 million.

Adjusted EBITDA and Distributable Cash Flow

Adjusted EBITDA for the first quarter of 2026 was $87.0 million, which compares to $76.7 million in the fourth quarter of 2025 and $87.0 million in the first quarter of 2025. Distributable cash flow for the first quarter of 2026 was $76.5 million. For the fourth quarter of 2025 and the first quarter of 2025, distributable cash flow was $66.8 million and $78.5 million, respectively.

Financial Position and Activities

As of March 31, 2026, Black Stone had $11.6 million in cash, with $187.0 million drawn under its credit facility. As of May 1, 2026, the Partnership had approximately $10.0 million in cash, with $164.0 million outstanding under the credit facility. Black Stone is in compliance with all financial covenants associated with its credit facility.

Subsequent to quarter-end, the borrowing base under the credit facility was reaffirmed at $580.0 million and the Partnership elected to maintain total commitments under the credit facility at $375.0 million. The Partnership's next regularly scheduled borrowing base redetermination is set for October 2026.

First Quarter 2026 Distributions

As previously announced, the Board approved a cash distribution of $0.30 for each common unit attributable to the first quarter of 2026, representing a distribution coverage ratio of approximately 1.20x. The distribution will be paid on May 15, 2026, to unitholders of record as of the close of business on May 8, 2026.

Activity Update

Development Activity

During the first quarter, Adamas Energy (formerly Aethon Energy) was operating three rigs on Black Stone's Angelina and San Augustine acreage in the Shelby Trough. Adamas’s development program remains on track, with 4 wells spud in the first quarter of 2026 as part of the current program year ending June 30, 2026, an additional 4 wells expected in the second quarter of 2026 to complete that program year, and 10 more wells expected in the second half of 2026 as part of the next program year. Adamas successfully turned to sales 7 gross (0.5 net) wells during the first quarter and expects to turn to sales 12 gross (1.2 net) wells during the remainder of 2026.

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
2

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 Houston County, consistent with the terms of the agreement.

In the Permian Basin, Coterra Energy continues to develop Black Stone acreage in Culberson County, Texas. During the first quarter, 17 gross wells (0.6 net) associated with this development were turned to sales. A separate development by another Permian operator of 25 gross (1.9 net) wells in the southern Delaware Basin is expected to come online in the second half of 2026 and first half of 2027.

Acquisition Activity

The Partnership continues to acquire bolt-on acreage in multiple contractual development programs with significant inventory at high net interests across San Augustine, Nacogdoches, Angelina, Cherokee, Houston, and Trinity counties.

In the first quarter of 2026, Black Stone acquired $11.5 million of additional (primarily non-producing) mineral and royalty interests. From September 2023 through the end of April 2026, the Partnership has completed $251.0 million of mineral and royalty acquisitions, primarily in the expanding Shelby Trough area. Black Stone’s commercial strategy going forward includes the continuation of meaningful, targeted mineral and royalty acquisitions to complement the Partnership's existing positions.

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 SwapOil Swap Price
MBbl$/Bbl
2Q26615$64.39
3Q26615$64.39
4Q26615$64.39
1Q27420$61.87
2Q27420$61.87
3Q27420$61.87
4Q27420$61.87

Natural Gas Hedge Position
Gas SwapGas Swap Price
BBtu$/MMbtu
2Q2612,740$3.73
3Q2612,880$3.73
4Q2612,880$3.73
1Q277,200$3.91
2Q277,280$3.91
3Q277,360$3.91
4Q277,360$3.91

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.

3

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 the United States. The Partnership owns mineral interests and royalty interests in 41 states in the continental United States. Black Stone believes its large, diversified asset base and long-lived, non-cost-bearing mineral and royalty interests provide for stable production and reserves over time, allowing the majority of generated cash flow to be distributed to unitholders.

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. Contact

Chris Bonner
Senior Vice President, Chief Financial Officer, and Treasurer
Telephone: (713) 445-3200
investorrelations@blackstoneminerals.com
4

BLACK STONE MINERALS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per unit amounts)
Three Months Ended March 31,
 20262025
REVENUE 
Oil and condensate sales$54,114 $50,093 
Natural gas and natural gas liquids sales63,408 58,235 
Lease bonus and other income6,387 6,925 
Revenue from contracts with customers123,909 115,253 
Gain (loss) on commodity derivative instruments, net(64,550)(56,001)
TOTAL REVENUE59,359 59,252 
OPERATING (INCOME) EXPENSE 
Lease operating expense1,893 2,162 
Production costs and ad valorem taxes9,200 10,185 
Exploration expense4,625 5,110 
Depreciation, depletion, and amortization9,785 9,130 
General and administrative16,832 15,172 
Accretion of asset retirement obligations389 332 
TOTAL OPERATING EXPENSE42,724 42,091 
INCOME FROM OPERATIONS16,635 17,161 
OTHER INCOME (EXPENSE)
Interest and investment income32 64 
Interest expense(3,361)(1,397)
Other income (expense), net(34)120 
TOTAL OTHER EXPENSE(3,363)(1,213)
NET INCOME13,272 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 units5,906 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 

5

The following table shows the Partnership’s production, revenues, pricing, and expenses for the periods presented:

 
 Three Months Ended March 31,
 20262025
(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 income6,387 6,925 
Revenue from contracts with customers123,909 115,253 
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 taxes9,200 10,185 
Exploration expense4,625 5,110 
Depreciation, depletion, and amortization9,785 9,130 
General and administrative16,832 15,172 
Other expense:
Interest expense3,361 1,397 
Per Boe:
Lease operating expense (per working-interest Boe)$18.77 $18.66 
Production costs and ad valorem taxes2.76 3.19 
Depreciation, depletion, and amortization2.94 2.86 
General and administrative5.06 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.


6

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 the United States as measures of the Partnership’s financial performance.
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 U.S. GAAP financial measure. The Partnership’s computation of Adjusted EBITDA and Distributable Cash Flow may differ from computations of similarly titled measures of other companies.
 Three Months Ended March 31,
 20262025
(Unaudited)
(In thousands, except per unit amounts)
Net income $13,272 $15,948 
Adjustments to reconcile to Adjusted EBITDA:
Depreciation, depletion, and amortization9,785 9,130 
Interest expense3,361 1,397 
Income tax expense (benefit)62 (85)
Accretion of asset retirement obligations389 332 
Seismic data acquisition costs4,256 4,829 
Equity–based compensation3,551 3,055 
Unrealized (gain) loss on commodity derivative instruments52,306 52,390 
Adjusted EBITDA86,982 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.
7

Source: View Original Filing on SEC EDGAR

FAQ

How did Black Stone Minerals (BSM) perform financially in Q1 2026?

Black Stone Minerals generated net income of $13.3 million in Q1 2026 on total revenue of $59.4 million after hedge impacts. It reported $87.0 million of Adjusted EBITDA and $76.5 million of Distributable Cash Flow, supporting its cash distributions to unitholders.

What were Black Stone Minerals (BSM) production volumes in Q1 2026?

Total production averaged 37.0 MBoe/d in Q1 2026, with mineral and royalty volumes of 35.9 MBoe/d and working-interest production of 1.1 MBoe/d. Mineral and royalty volumes rose 16% from the prior quarter, driven mainly by natural gas and oil activity in core basins.

What distribution did Black Stone Minerals (BSM) declare for Q1 2026?

Black Stone Minerals declared a cash distribution of $0.30 per common unit attributable to Q1 2026. The distribution coverage ratio was approximately 1.20x, based on Distributable Cash Flow of $76.5 million and about 212.5 million common units used for the distribution estimate.

How leveraged is Black Stone Minerals (BSM) after Q1 2026?

At March 31, 2026, Black Stone Minerals had $11.6 million in cash and $187.0 million drawn on its credit facility. By May 1, 2026, borrowings declined to $164.0 million with about $10.0 million cash, and the borrowing base was reaffirmed at $580.0 million.

What is Black Stone Minerals (BSM) hedging strategy as of May 1, 2026?

Black Stone Minerals uses commodity swaps to hedge oil and gas prices through 2027. As of May 1, 2026, oil swaps cover several quarters at prices around $64–62 per barrel, while gas swaps hedge volumes at approximately $3.73–3.91 per MMBtu, smoothing cash flows.

How did commodity derivatives affect Black Stone Minerals (BSM) Q1 2026 results?

Commodity derivatives produced a $64.6 million net loss in Q1 2026, including a $12.2 million realized loss and a non-cash $52.3 million unrealized loss. These hedge impacts significantly reduced reported net income compared with operating performance and cash flow metrics.

Filing Exhibits & Attachments

4 documents

Press Releases

Other Documents