Black Stone Minerals Q3 net income falls to $52.4M
A $0.35-per-unit cash distribution is payable November 13, 2026, to holders of record November 6, 2026.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Black Stone Minerals, L.P. reported third-quarter 2026 net income of $52.4 million, compared with $91.7 million in the third quarter of 2025. Adjusted EBITDA was $104.1 million versus $88.1 million, and distributable cash flow was $93.0 million versus $78.6 million. Oil and gas revenue was $122.7 million versus $100.2 million; total revenue, including derivative results, was $99.7 million versus $132.5 million. Commodity derivatives produced a $30.2 million loss, compared with a $27.3 million gain.
The Partnership approved a $0.35 per common unit cash distribution for the quarter, 9% above the prior quarter. It is payable November 13, 2026, to holders of record November 6, 2026. Total production averaged 35.6 MBoe/d. As of September 30, 2026, cash was $5.5 million and debt under the credit facility was $195.0 million.
An amended Caturus development agreement entered in October 2026 expanded the contract area by 730,000 gross acres to 950,000 gross acres, adding commitments in two development areas. Activity in the first added area is expected to begin with a pilot well by the first quarter of 2028; if Caturus elects to proceed after the pilot, the program calls for 2 gross wells in 2029, ramping to approximately 12 gross wells annually by 2034.
4 points · 0 major0 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointAdjusted EBITDA: $104.1 million vs. $88.1 million in Q3 2025.
- Moderate pointDistributable cash flow: $93.0 million vs. $78.6 million in Q3 2025.
- Moderate pointOil and gas revenue: $122.7 million vs. $100.2 million in Q3 2025.
- Moderate pointUnit distribution rose 9% to $0.35 for Q3 2026.
Negative
- Moderate pointNet income fell to $52.4 million from $91.7 million in Q3 2025.
- Moderate pointTotal revenue fell to $99.7 million from $132.5 million in Q3 2025.
Filing Explained
The completed October 2026 acquisitions used $30.6 million in cash and $2.1 million in common units, combining cash and unit consideration.
In October 2026, Black Stone Minerals acquired additional mineral and royalty interests and surface rights in the expanded Shelby Trough for
As of
8-K Event Classification
2 items: 2.02, 9.01
2 items
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, or exhibit attachments filed with this report.
Key Figures
Net income: $52.4 million
Total revenue: $99.7 million
Adjusted EBITDA: $104.1 million
+5 more
8 metrics
Net income
$52.4 million
Third quarter 2026; $91.7 million in the third quarter of 2025
Total revenue
$99.7 million
Third quarter 2026; $132.5 million in the third quarter of 2025
Adjusted EBITDA
$104.1 million
Third quarter 2026; $88.1 million in the third quarter of 2025
Distributable cash flow
$93.0 million
Third quarter 2026; $78.6 million in the third quarter of 2025
Oil and gas revenue
$122.7 million
Third quarter 2026; $100.2 million in the third quarter of 2025
Cash distribution
$0.35 per common unit
Attributable to the third quarter of 2026; 9% above the prior quarter
Total production
35.6 MBoe/d
Third quarter 2026 average
Debt under credit facility
$195.0 million
As of September 30, 2026
Key Terms
Adjusted EBITDA, Distributable Cash Flow, distribution coverage, borrowing base, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA for the third quarter of 2026 was $104.1 million"
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
"defines Distributable Cash Flow as Adjusted EBITDA"
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.
distribution coverage financial
"Distribution coverage for the quarter was approximately 1.25x"
The share of potential sales channels, stores, or geographic markets where a company’s product is actually available to customers. It’s often expressed as a percentage of all possible outlets or markets and shows how widely a product has been rolled out—like counting how many cafes in a city sell a particular brand of coffee versus how many exist. For investors, it signals how much room there is to grow sales from expanding availability and how dependent current revenue is on distribution reach.
borrowing base financial
"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.
completed gross lateral feet technical
"measured by wells drilled in 2026 and completed gross lateral feet beginning in 2027"
Earnings Snapshot
Total revenue: $99.7 million
Third quarter 2026
Total revenue
$99.7 million
Down from $132.5 million in the third quarter of 2025
Net income
$52.4 million
Down from $91.7 million in the third quarter of 2025
Adjusted EBITDA
$104.1 million
Up from $88.1 million in the third quarter of 2025
Distributable cash flow
$93.0 million
Up from $78.6 million in the third quarter of 2025
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was BSM's net income in the third quarter of 2026?
Black Stone Minerals reported net income of $52.4 million for the third quarter of 2026, compared with $91.7 million in the third quarter of 2025. Net income attributable to the general partner and common units was $45.0 million.
What distribution did BSM announce for the third quarter of 2026?
Black Stone approved a cash distribution of $0.35 for each common unit attributable to the third quarter of 2026, 9% above the prior quarter and 17% above the $0.30 per unit attributable to the first quarter of 2026. It is payable November 13, 2026, to unitholders of record November 6, 2026.
When could development begin in BSM's second additional Caturus area?
Caturus has the option to initiate development in the second additional area. If elected, activity would begin with a pilot well by the end of 2031; if Caturus elects to proceed after the pilot, the plan calls for 2 gross wells in 2033 and a ramp to approximately 12 gross wells annually by 2038.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
| FORM | ||||||||
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 02, 2026
| (Exact name of registrant as specified in its charter) | ||
| (State or other jurisdiction | (Commission File Number) | (I.R.S. Employer | ||||||||||||||||||
| of incorporation or organization) | Identification No.) | |||||||||||||||||||
| (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) | ||||||||||||||||||||
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 class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| 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 November 2, 2026, Black Stone Minerals, L.P. (“Black Stone Minerals”) issued a press release that announced its third quarter 2026 financial and operating results.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Description | |||||||
99.1 | Black Stone Minerals, L.P. Press Release, dated November 2, 2026 | |||||||
| 104 | Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document. | |||||||
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: November 2, 2026 | By: | /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 November 2, 2026 | |||||||
| 104 | Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document. | |||||||
4
 | Exhibit 99.1 News For Immediate Release | ||||
Black Stone Minerals, L.P. Reports Third 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 third quarter of 2026.
Financial and Operational Highlights
•Net income for the third quarter was $52.4 million, and Adjusted EBITDA for the quarter totaled $104.1 million.
•Distributable cash flow was $93.0 million for the third quarter.
•Mineral and royalty production for the third quarter of 2026 equaled 34.5 MBoe/d, an increase of 6% from the prior quarter; total production, including working-interest volumes, was 35.6 MBoe/d for the quarter.
•Black Stone announced a distribution attributable to the third quarter of 2026 of $0.35 per common unit, or $1.40 annualized, up 9% from the prior quarter and 17% since the first quarter. Distribution coverage was 1.25x.
•Total debt at the end of the third quarter was $195.0 million; as of October 30, 2026, total debt was $197.0 million with $5.4 million of cash on hand.
Management Commentary
Taylor DeWalch, Co-CEO and President, commented, “We are pleased with another strong quarter, reflecting increased development activity and higher oil production and revenue. Continued leasing efforts and active portfolio management have helped promote further development of our oil acreage, providing additional cash flow in the current commodity price environment as our natural gas development programs continue to ramp. This performance supported our second consecutive quarterly distribution increase while allowing Black Stone to maintain prudent distribution coverage, financial flexibility, and a strong balance sheet.
“We also continue to execute on opportunities to enhance the long-term value of our asset base, highlighted by a successful marketing process and the significant expansion of our Caturus development agreement in the Shelby Trough. Together, these results reflect the strength of our current portfolio and continued execution of our long-term growth strategy as we work to drive development and increase returns for our unitholders.”
Fowler Carter, Co-CEO and President, added, “The addition of two significant development areas and an associated long-term development program meaningfully expands our Caturus program and the development footprint within Black Stone’s expanded Shelby Trough position. Continued execution under our Adamas development agreement, progress on initial development under our Revenant agreement, and increasing activity from other operators across our broader Shelby Trough acreage further demonstrate the growing development opportunity across our position. We believe the scale of this inventory, combined with our ability to work with operators and capital providers to establish long-term development programs, positions Black Stone well as the industry prepares to meet anticipated growth in natural gas demand.
“LNG exports, power generation, and other sources of demand will require significant long-term natural gas supply, and we believe Black Stone is well positioned to help provide the drilling inventory needed to support that growth. Our strategy has been to assemble large, high-interest mineral positions in the expanded Shelby Trough, contiguous to our legacy assets, and place that acreage into structured development programs. The expanded Caturus agreement increases the acreage and long-term drilling inventory subject to structured development programs, further advancing development of Black Stone’s Shelby Trough position.”
Quarterly Financial and Operating Results
Production
Black Stone reported mineral and royalty volumes of 34.5 MBoe/d (73% natural gas) for the third quarter of 2026, compared to 32.5 MBoe/d for the second quarter of 2026 and 34.7 MBoe/d for the third quarter of 2025.
Working-interest production was 1.1 MBoe/d for the third quarter of 2026, 1.0 MBoe/d in the second quarter of 2026, and 1.6 MBoe/d for the third quarter of 2025.
Total reported production averaged 35.6 MBoe/d (97% mineral and royalty, 73% natural gas) for the third quarter of 2026, compared to 33.5 MBoe/d and 36.3 MBoe/d for the second quarter of 2026 and the third 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 $37.44 for the third quarter of 2026. This is a decrease of 1% from $37.82 per Boe in the second quarter of 2026 and a 25% increase from $30.01 in the third quarter of 2025.
Black Stone reported oil and gas revenue of $122.7 million (63% oil and condensate) for the third quarter of 2026, an increase of 6% from $115.4 million in the second quarter of 2026. Oil and gas revenue in the third quarter of 2025 was $100.2 million.
The Partnership reported a loss on commodity derivative instruments of $30.2 million for the third quarter of 2026, composed of a $0.4 million loss from realized settlements and a non-cash $29.8 million unrealized loss due to the change in value of Black Stone’s derivative positions during the quarter. Black Stone reported a gain of $26.8 million and a gain of $27.3 million on commodity derivative instruments for the second quarter of 2026 and the third quarter of 2025, respectively.
Lease bonus and other income was $7.2 million for the third quarter of 2026. Lease bonus and other income for the second quarter of 2026 and the third quarter of 2025 was $6.7 million and $5.0 million, respectively.
The Partnership reported net income of $52.4 million for the third quarter of 2026, compared to net income of $106.4 million in the preceding quarter. For the third quarter of 2025, the Partnership reported net income of $91.7 million.
Adjusted EBITDA and Distributable Cash Flow
Adjusted EBITDA for the third quarter of 2026 was $104.1 million, which compares to $91.3 million in the second quarter of 2026 and $88.1 million in the third quarter of 2025. Distributable cash flow for the third quarter of 2026 was $93.0 million. For the second quarter of 2026 and the third quarter of 2025, distributable cash flow was $80.4 million and $78.6 million, respectively.
Financial Position and Activities
As of September 30, 2026, Black Stone had $5.5 million in cash, with $195.0 million drawn under its credit facility. As of October 30, 2026, the Partnership had $5.4 million in cash, with $197.0 million outstanding under the credit facility. Black Stone is in compliance with all financial covenants associated with its credit facility.
On October 30, 2026, 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 April 2027.
Third Quarter 2026 Distributions
As previously announced, the Board approved a cash distribution of $0.35 for each common unit attributable to the third quarter of 2026, representing a 9% increase over the prior quarter and a 17% increase from the $0.30 per unit distribution attributable to the first quarter of 2026. Distribution coverage for the quarter was approximately 1.25x. The distribution will be payable on November 13, 2026, to unitholders of record as of the close of business on November 6, 2026.
2
Activity Update
Development Activity
As of the end of the third quarter, Adamas Energy ("Adamas") was operating two rigs on Black Stone’s Angelina and San Augustine acreage in the Shelby Trough. During the third quarter, Adamas successfully turned to sales 7 gross (0.7 net) wells. Adamas’s development program remains on track with the development agreements, with a total of 14 wells spud in the previous program year that ended on June 30, 2026. Of these wells, 9 gross (0.9 net) have turned to sales as of September 30, 2026, and 4 gross (0.4 net) are expected to turn to sales during the fourth quarter of 2026, with the remaining well under further evaluation. As of September 30, 2026, Adamas spud 6 of the total 17 wells expected to be drilled in the current program year ending on June 30, 2027.
Black Stone’s agreement with Revenant Energy ("Revenant") covers 270,000 gross acres in which Black Stone currently controls approximately 122,000 undeveloped net acres, primarily located in Angelina, Nacogdoches, and San Augustine counties in Texas. The agreement includes minimum annual drilling commitments across three designated areas of interest ("AOIs"), measured by wells drilled in 2026 and completed gross lateral feet beginning in 2027. In September 2026, the Partnership entered into an amendment to the agreement that increased the overall 2027 drilling commitment by 7,000 gross lateral feet while extending until 2029 the requirement that a portion of the drilling commitment be completed in a second AOI. For 2026, Revenant is expected to meet its 4-well drilling commitment. As of the end of the third quarter, Revenant was operating one rig and had drilled 2 wells expected to turn to sales by year-end. Revenant spud the remaining 2 wells in early October 2026, with production expected in mid-2027.
In November 2025, the Partnership entered into a 220,000 gross acre development agreement with an affiliate of Caturus Energy, LLC ("Caturus") covering acreage primarily in Angelina, Cherokee, Houston, and Nacogdoches counties in Texas, which aims to push the Shelby Trough westward toward the Western Haynesville. Development activity under the original agreement is underway. Caturus drilled a pilot well in Cherokee County in the third quarter of 2026 and, in October 2026, spud its first 2 development wells, which are expected to begin production in the first half of 2027.
In October 2026, the Partnership entered into an amended and restated development agreement with Caturus that expands the contract area by 730,000 gross acres to a total of 950,000 gross acres and provides for incremental development commitments across two additional development areas primarily located in Houston, Trinity, and Polk counties in Texas. Consistent with the original agreement, minimum annual drilling commitments are measured in completed lateral feet net to Black Stone’s mineral ownership. The level of gross well activity associated with these commitments depends on well locations, lateral lengths, and Black Stone’s mineral ownership in the acreage developed. Each additional development area includes an initial pilot phase and a multi-year development program designed to ramp activity over time. Development activity in the first additional area is expected to begin with a pilot well by the first quarter of 2028 and, if Caturus elects to proceed following the pilot phase, would be followed by 2 gross wells in 2029 and a ramp to approximately 12 gross wells annually by 2034, as minimum annual drilling commitments increase from 8,000 to 33,600 net lateral feet over the same period. Caturus has the option to initiate development activity in the second additional area and, if elected, would begin with a pilot well by the end of 2031 and, if Caturus elects to proceed following the pilot phase, would be followed by 2 gross wells in 2033 and a ramp to approximately 12 gross wells annually by 2038, as minimum annual drilling commitments increase from 8,000 to 33,600 net lateral feet over the same period. The amended and restated agreement also provides Caturus flexibility to satisfy a portion of its annual development commitments for each development area through drilling in the other development areas, subject to certain minimum annual development requirements within each area.
In the Permian Basin, Blue Arrow Operating is progressing a 25 gross (1.9 net) well development on Black Stone’s acreage in the southern Delaware Basin. As of September 30, 2026, 10 gross (0.9 net) wells had been turned to sales, with the remaining wells expected to come online in the fourth quarter 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 third quarter of 2026, consistent with the previously announced acquisition strategy, Black Stone acquired $14.6 million of additional (primarily non-producing) mineral and royalty interests. In October 2026, Black Stone acquired additional mineral and royalty interests and surface rights in the expanded Shelby Trough area from various sellers for $30.6 million in cash and $2.1 million in common units of the Partnership. The Partnership acquired the surface rights on a strategic tract to secure
3
additional drilling locations in support of Black Stone's development agreements, and the acquisition included additional consideration tied to future production.
From September 2023 through October 2026, the Partnership completed $335.5 million of acquisitions, primarily consisting of mineral and royalty interests in the expanded 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, 2027, and 2028. The Partnership's hedge position as of October 30, 2026, is summarized in the following tables:
| Oil Hedge Position | |||||||||||
| Oil Swap | Oil Swap Price | ||||||||||
| 4Q26 | 615 | $64.39 | |||||||||
| 1Q27 | 570 | $65.55 | |||||||||
| 2Q27 | 570 | $65.55 | |||||||||
| 3Q27 | 570 | $65.55 | |||||||||
| 4Q27 | 570 | $65.55 | |||||||||
| 1Q28 | 120 | $71.59 | |||||||||
| 2Q28 | 120 | $71.59 | |||||||||
| 3Q28 | 120 | $71.59 | |||||||||
| 4Q28 | 120 | $71.59 | |||||||||
| Natural Gas Hedge Position | ||||||||
| Gas Swap | Gas Swap Price | |||||||
| BBtu | $/MMbtu | |||||||
| 4Q26 | 12,880 | $3.73 | ||||||
| 1Q27 | 8,100 | $3.84 | ||||||
| 2Q27 | 8,190 | $3.84 | ||||||
| 3Q27 | 8,280 | $3.84 | ||||||
| 4Q27 | 8,280 | $3.84 | ||||||
| 1Q28 | 1,820 | $3.70 | ||||||
| 2Q28 | 1,820 | $3.70 | ||||||
| 3Q28 | 1,840 | $3.70 | ||||||
| 4Q28 | 1,840 | $3.70 | ||||||
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 2026, which is expected to be filed on or around November 3, 2026.
4
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 2026 on Tuesday, November 3, 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 956 681 565. 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 well as the Risk Factors section in the Partnership's 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
5
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, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| REVENUE | |||||||||||||||||||||||
| Oil and condensate sales | $ | 77,649 | $ | 57,091 | $ | 206,914 | $ | 162,991 | |||||||||||||||
| Natural gas and natural gas liquids sales | 45,053 | 43,086 | 148,736 | 147,510 | |||||||||||||||||||
| Lease bonus and other income | 7,177 | 5,006 | 20,260 | 16,645 | |||||||||||||||||||
| Revenue from contracts with customers | 129,879 | 105,183 | 375,910 | 327,146 | |||||||||||||||||||
| Gain (loss) on commodity derivative instruments, net | (30,152) | 27,287 | (67,852) | 24,070 | |||||||||||||||||||
| TOTAL REVENUE | 99,727 | 132,470 | 308,058 | 351,216 | |||||||||||||||||||
| OPERATING (INCOME) EXPENSE | |||||||||||||||||||||||
| Lease operating expense | 2,280 | 2,753 | 6,271 | 7,905 | |||||||||||||||||||
| Production costs and ad valorem taxes | 9,503 | 10,935 | 24,811 | 30,146 | |||||||||||||||||||
| Exploration expense | 4,736 | 2,151 | 14,186 | 9,010 | |||||||||||||||||||
| Depreciation, depletion, and amortization | 10,121 | 9,900 | 29,308 | 28,217 | |||||||||||||||||||
| General and administrative | 16,470 | 12,287 | 49,378 | 41,383 | |||||||||||||||||||
| Accretion of asset retirement obligations | 401 | 344 | 1,183 | 1,013 | |||||||||||||||||||
| TOTAL OPERATING EXPENSE | 43,511 | 38,370 | 125,137 | 117,674 | |||||||||||||||||||
| INCOME FROM OPERATIONS | 56,216 | 94,100 | 182,921 | 233,542 | |||||||||||||||||||
| OTHER INCOME (EXPENSE) | |||||||||||||||||||||||
| Interest and investment income | 51 | 62 | 140 | 182 | |||||||||||||||||||
| Interest expense | (3,935) | (2,426) | (11,112) | (6,093) | |||||||||||||||||||
| Other income (expense), net | 36 | (7) | 49 | 74 | |||||||||||||||||||
| TOTAL OTHER EXPENSE | (3,848) | (2,371) | (10,923) | (5,837) | |||||||||||||||||||
| NET INCOME | 52,368 | 91,729 | 171,998 | 227,705 | |||||||||||||||||||
| Distributions on Series B cumulative convertible preferred units | (7,367) | (7,366) | (22,099) | (22,099) | |||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON UNITS | $ | 45,001 | $ | 84,363 | $ | 149,899 | $ | 205,606 | |||||||||||||||
| ALLOCATION OF NET INCOME: | |||||||||||||||||||||||
| General partner interest | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Common units | 45,001 | 84,363 | 149,899 | 205,606 | |||||||||||||||||||
| $ | 45,001 | $ | 84,363 | $ | 149,899 | $ | 205,606 | ||||||||||||||||
| NET INCOME ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON UNIT: | |||||||||||||||||||||||
| Per common unit (basic) | $ | 0.21 | $ | 0.40 | $ | 0.71 | $ | 0.97 | |||||||||||||||
| Per common unit (diluted) | $ | 0.21 | $ | 0.40 | $ | 0.71 | $ | 0.97 | |||||||||||||||
| WEIGHTED AVERAGE COMMON UNITS OUTSTANDING: | |||||||||||||||||||||||
| Weighted average common units outstanding (basic) | 212,710 | 211,852 | 212,560 | 211,600 | |||||||||||||||||||
| Weighted average common units outstanding (diluted) | 212,710 | 211,852 | 212,560 | 211,600 | |||||||||||||||||||
6
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, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (Unaudited) (Dollars in thousands, except for realized prices and per Boe data) | ||||||||||||||||||||||||||
| Production: | ||||||||||||||||||||||||||
Oil and condensate (MBbls) | 893 | 912 | 2,542 | 2,491 | ||||||||||||||||||||||
Natural gas (MMcf)1 | 14,301 | 14,556 | 42,700 | 43,119 | ||||||||||||||||||||||
| Equivalents (MBoe) | 3,277 | 3,338 | 9,659 | 9,678 | ||||||||||||||||||||||
| Equivalents/day (MBoe) | 35.6 | 36.3 | 35.4 | 35.4 | ||||||||||||||||||||||
| Realized prices, without derivatives: | ||||||||||||||||||||||||||
| Oil and condensate ($/Bbl) | $ | 86.95 | $ | 62.60 | $ | 81.40 | $ | 65.43 | ||||||||||||||||||
Natural gas ($/Mcf)1 | 3.15 | 2.96 | 3.48 | 3.42 | ||||||||||||||||||||||
| Equivalents ($/Boe) | $ | 37.44 | $ | 30.01 | $ | 36.82 | $ | 32.08 | ||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||
| Oil and condensate sales | $ | 77,649 | $ | 57,091 | $ | 206,914 | $ | 162,991 | ||||||||||||||||||
Natural gas and natural gas liquids sales1 | 45,053 | 43,086 | 148,736 | 147,510 | ||||||||||||||||||||||
| Lease bonus and other income | 7,177 | 5,006 | 20,260 | 16,645 | ||||||||||||||||||||||
| Revenue from contracts with customers | 129,879 | 105,183 | 375,910 | 327,146 | ||||||||||||||||||||||
| Gain (loss) on commodity derivative instruments, net | (30,152) | 27,287 | (67,852) | 24,070 | ||||||||||||||||||||||
| Total revenue | $ | 99,727 | $ | 132,470 | $ | 308,058 | $ | 351,216 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Lease operating expense | $ | 2,280 | $ | 2,753 | $ | 6,271 | $ | 7,905 | ||||||||||||||||||
| Production costs and ad valorem taxes | 9,503 | 10,935 | 24,811 | 30,146 | ||||||||||||||||||||||
| Exploration expense | 4,736 | 2,151 | 14,186 | 9,010 | ||||||||||||||||||||||
| Depreciation, depletion, and amortization | 10,121 | 9,900 | 29,308 | 28,217 | ||||||||||||||||||||||
| General and administrative | 16,470 | 12,287 | 49,378 | 41,383 | ||||||||||||||||||||||
| Other expense: | ||||||||||||||||||||||||||
| Interest expense | 3,935 | 2,426 | 11,112 | 6,093 | ||||||||||||||||||||||
| Per Boe: | ||||||||||||||||||||||||||
| Lease operating expense (per working-interest Boe) | $ | 21.31 | $ | 19.42 | $ | 20.69 | $ | 20.55 | ||||||||||||||||||
| Production costs and ad valorem taxes | 2.90 | 3.28 | 2.57 | 3.11 | ||||||||||||||||||||||
| Depreciation, depletion, and amortization | 3.09 | 2.97 | 3.03 | 2.92 | ||||||||||||||||||||||
| General and administrative | 5.03 | 3.68 | 5.11 | 4.28 | ||||||||||||||||||||||
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.
7
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 and nine months ended September 30, 2025, 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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (Unaudited) (In thousands, except per unit amounts) | ||||||||||||||||||||||||||
| Net income | $ | 52,368 | $ | 91,729 | $ | 171,998 | $ | 227,705 | ||||||||||||||||||
| Adjustments to reconcile to Adjusted EBITDA: | ||||||||||||||||||||||||||
| Depreciation, depletion, and amortization | 10,121 | 9,900 | 29,308 | 28,217 | ||||||||||||||||||||||
| Interest expense | 3,935 | 2,426 | 11,112 | 6,093 | ||||||||||||||||||||||
| Income tax expense (benefit) | 9 | 41 | 69 | (36) | ||||||||||||||||||||||
| Accretion of asset retirement obligations | 401 | 344 | 1,183 | 1,013 | ||||||||||||||||||||||
| Seismic data acquisition costs | 4,434 | 1,821 | 13,209 | 8,050 | ||||||||||||||||||||||
Equity-based compensation | 3,053 | 2,208 | 9,084 | 7,223 | ||||||||||||||||||||||
| Unrealized (gain) loss on commodity derivative instruments | 29,762 | (20,372) | 46,450 | (17,621) | ||||||||||||||||||||||
| Adjusted EBITDA | 104,083 | 88,097 | 282,413 | 260,644 | ||||||||||||||||||||||
| Adjustments to reconcile to Distributable Cash Flow: | ||||||||||||||||||||||||||
| Change in deferred revenue | (1) | (1) | (2) | (3) | ||||||||||||||||||||||
| Cash interest expense | (3,671) | (2,146) | (10,324) | (5,263) | ||||||||||||||||||||||
| Preferred unit distributions | (7,367) | (7,366) | (22,099) | (22,099) | ||||||||||||||||||||||
| Distributable Cash Flow | $ | 93,044 | $ | 78,584 | $ | 249,988 | $ | 233,279 | ||||||||||||||||||
Total units outstanding1 | 212,862 | 211,859 | ||||||||||||||||||||||||
| Distributable Cash Flow per unit | $ | 0.437 | $ | 0.371 | ||||||||||||||||||||||
1 The distribution attributable to the three months ended September 30, 2026 is estimated using 212,861,806 common units as of October 30, 2026; the exact amount of the distribution attributable to the three months ended September 30, 2026 will be determined based on units outstanding as of the record date of November 6, 2026. Distributions attributable to the three months ended September 30, 2025 were calculated using 211,858,966 common units as of the record date of November 6, 2025.
8