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Black Stone Minerals (NYSE: BSM) Q2 2026 net income reaches $106.4M

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

Rhea-AI Filing Summary

Black Stone Minerals, L.P. corrected its second-quarter 2026 disclosure, stating mineral and royalty interest acquisitions were $37.2 million for the quarter, not $48.7 million, which represented acquisitions for the six months ended June 30, 2026.

For the quarter, the partnership reported net income of $106.4 million, Adjusted EBITDA of $91.3 million, and distributable cash flow of $80.4 million. Total production averaged 33.5 MBoe/d, 97% from mineral and royalty interests, with an average realized price of $37.82 per Boe. The board approved a cash distribution of $0.32 per unit attributable to the quarter, or $1.28 annualized, with distribution coverage of 1.18x. Total debt was $196.0 million at June 30, 2026 and $168.0 million as of July 31, 2026, with the borrowing base under the credit facility reaffirmed at $580.0 million and elected commitments of $375.0 million.

Positive

  • None.

Negative

  • None.

Filing Explained

Development agreements now show one reduced drilling commitment and acreage release, while hedges cover portions of production through 2027.

The operating update describes active but incomplete development programs: four gross (0.4 net) Revenant wells turned to sales in July, while eight gross (0.7 net) were expected later in 2026; the May amendment reduced Program Year 1 to four wells and released approximately 40,000 gross acres.

The Revenant arrangement therefore has a lower first-year well obligation and revised later-year lateral-foot commitments; its disclosed acreage scope was also reduced.

The hedge table reports contracts covering portions of anticipated production through the fourth quarter of 2027, with specified oil and natural-gas swap volumes and prices; these are hedging arrangements, not reported sales or proceeds.

The next scheduled borrowing-base redetermination is set for October 2026, providing a named milestone for the facility's borrowing capacity.

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.
Net income Q2 2026 $106.4 million Net income for the second quarter of 2026
Adjusted EBITDA Q2 2026 $91.3 million Adjusted EBITDA for the second quarter of 2026
Distributable cash flow Q2 2026 $80.4 million Distributable cash flow for the second quarter of 2026
Mineral and royalty acquisitions Q2 2026 $37.2 million Corrected mineral and royalty interest acquisitions for the second quarter of 2026
Cash distribution per unit Q2 2026 $0.32 Cash distribution per common unit attributable to the second quarter of 2026
Distribution coverage Q2 2026 1.18x Distribution coverage ratio for all units for the second quarter of 2026
Total production Q2 2026 33.5 MBoe/d Average total production including working-interest volumes in the second quarter of 2026
Total debt June 30, 2026 $196.0 million Total debt outstanding at the end of the second quarter of 2026
Adjusted EBITDA financial
"The Partnership defines Adjusted EBITDA as net income (loss) before interest expense"
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"
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.
mineral and royalty interests financial
"the long-term development and value of its mineral and royalty interests"
commodity derivative instruments financial
"The Partnership reported a gain on commodity derivative instruments of $26.8 million"
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.
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.
Net income $106.4 million compared to $13.3 million in the first quarter of 2026
Adjusted EBITDA $91.3 million compared to $87.0 million in the first quarter of 2026
Distributable cash flow $80.4 million compared to $76.5 million in the first quarter of 2026

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FAQ

What correction did Black Stone Minerals (BSM) make to its Q2 2026 acquisition figures?
Black Stone Minerals corrected its Q2 2026 mineral and royalty interest acquisitions to $37.2 million. The previously stated $48.7 million actually reflected acquisitions for the six months ended June 30, 2026, not just the quarter.

What were Black Stone Minerals (BSM) key profitability metrics for Q2 2026?
For Q2 2026, Black Stone Minerals reported net income of $106.4 million, Adjusted EBITDA of $91.3 million, and distributable cash flow of $80.4 million. These figures support the partnership’s cash distributions and reflect current pricing and hedge impacts.

What cash distribution did Black Stone Minerals (BSM) declare for Q2 2026 and when is it payable?
The board approved a cash distribution of $0.32 per common unit attributable to Q2 2026, or $1.28 annualized, with coverage of 1.18x. The distribution is payable on August 13, 2026 to unitholders of record as of August 6, 2026.

How did Black Stone Minerals (BSM) production and realized pricing look in Q2 2026?
Total production averaged 33.5 MBoe/d in Q2 2026, of which 97% came from mineral and royalty volumes and 72% was natural gas. The average realized price, excluding derivative settlements, was $37.82 per Boe for the quarter.

What is Black Stone Minerals (BSM) debt and credit facility position as of mid-2026?
As of June 30, 2026, total debt was $196.0 million, improving to $168.0 million with $1.9 million of cash by July 31, 2026. The borrowing base was reaffirmed at $580.0 million, with elected commitments of $375.0 million under the credit facility.

What hedge positions does Black Stone Minerals (BSM) hold for late 2026 and 2027?
As of July 31, 2026, Black Stone held oil swaps of 615 MBbl per quarter in 2H26 at $64.39/Bbl and gas swaps of 12,880 BBtu per quarter in 2H26 at $3.73/MMBtu, with additional swaps extending through 2027.
0001621434FALSE00016214342026-08-032026-08-03

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): August 03, 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 August 3, 2026, Black Stone Minerals, L.P. (“Black Stone Minerals”) issued a press release that announced its second quarter 2026 financial and operating results. In the press release, second quarter 2026 mineral and royalty interest acquisitions were incorrectly reported as $48.7 million instead of $37.2 million. The $48.7 million amount reflected acquisitions for the six months ended June 30, 2026. 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 August 3, 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: August 3, 2026By:/s/ Steve Putman
Steve Putman
Senior Vice President, General Counsel, and Secretary

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Exhibit Index
 
Exhibit NumberDescription
99.1
Black Stone Minerals, L.P. Press Release, dated August 3, 2026
104Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document.

4


gb5vcvwhah10000001a03.jpg
Exhibit 99.1
 
 
News
For Immediate Release
 
Black Stone Minerals, L.P. Reports Second 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 second quarter of 2026.

Financial and Operational Highlights

•Net income for the second quarter was $106.4 million, and Adjusted EBITDA for the quarter totaled $91.3 million.
•Distributable cash flow was $80.4 million for the second quarter.
•Mineral and royalty production for the second quarter of 2026 equaled 32.5 MBoe/d, a decrease of 9% from the prior quarter; total production, including working-interest volumes, was 33.5 MBoe/d for the quarter.
•Black Stone announced a distribution attributable to the second quarter of 2026 of $0.32 per unit or $1.28 annualized, a 7% increase over the prior quarter. Distribution coverage for all units was 1.18x.
•Total debt at the end of the second quarter was $196.0 million; as of July 31, 2026, total debt was $168.0 million with $1.9 million of cash on hand.

Management Commentary

"The increase in our distribution reflects strong execution across the business and highlights the benefits of Black Stone's diversified mineral and royalty portfolio," said Taylor DeWalch, Co-CEO and President. "Through our focus on mineral acquisitions, development agreements, and active asset management, we continue to advance our differentiated organic growth strategy. We are pleased to increase the distribution while maintaining a prudent level of coverage and a conservative balance sheet as we continue to focus on accretive returns for our unitholders. Improved oil pricing and production contributed to our results during the quarter, and we remain highly encouraged by the long-term outlook for natural gas and increasing activity across our core development areas."

Fowler Carter, Co-CEO and President, added, "As we have previously discussed, we believe the Partnership is at an important inflection point for production and commercial activity. Development under our existing agreements continues to progress, and we have made significant progress toward an agreement covering a new development area, further expanding development opportunities across our Shelby Trough and Haynesville expansion acreage. Combined with continued leasing activity and our ongoing mineral acquisition program, we remain focused on enhancing our development position and supporting long-term production growth."

Quarterly Financial and Operating Results

Production

Black Stone reported mineral and royalty volumes of 32.5 MBoe/d (72% natural gas) for the second quarter of 2026, compared to 35.9 MBoe/d for the first quarter of 2026 and 33.2 MBoe/d for the second quarter of 2025. Production declined from the first quarter primarily due to lower natural gas mineral and royalty volumes in the Haynesville.

Working-interest production was 1.0 MBoe/d for the second quarter of 2026, 1.1 MBoe/d in the first quarter of 2026, and 1.4 MBoe/d for the second quarter of 2025.

Total reported production averaged 33.5 MBoe/d (97% mineral and royalty, 72% natural gas) for the second quarter of 2026, compared to 37.0 MBoe/d and 34.6 MBoe/d for the first quarter of 2026 and the second 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 $37.82 for the second quarter of 2026. This is an increase of 7% from $35.30 per Boe in the first quarter of 2026 and a 17% increase from $32.40 in the second quarter of 2025.

Black Stone reported oil and gas revenue of $115.4 million (65% oil and condensate) for the second quarter of 2026, a decrease of 2% from $117.5 million in the first quarter of 2026. Oil and gas revenue in the second quarter of 2025 was $102.0 million.

The Partnership reported a gain on commodity derivative instruments of $26.8 million for the second quarter of 2026, composed of a $8.8 million loss from realized settlements and a non-cash $35.6 million unrealized gain due to the change in value of Black Stone’s derivative positions during the quarter. Black Stone reported a loss of $64.6 million and a gain of $52.8 million on commodity derivative instruments for the first quarter of 2026 and the second quarter of 2025, respectively.

Lease bonus and other income was $6.7 million for the second quarter of 2026. Lease bonus and other income for the first quarter of 2026 and the second quarter of 2025 was $6.4 million and $4.7 million, respectively.

The Partnership reported net income of $106.4 million for the second quarter of 2026, compared to net income of $13.3 million in the preceding quarter. For the second quarter of 2025, the Partnership reported net income of $120.0 million.

Adjusted EBITDA and Distributable Cash Flow

Adjusted EBITDA for the second quarter of 2026 was $91.3 million, which compares to $87.0 million in the first quarter of 2026 and $85.6 million in the second quarter of 2025. Distributable cash flow for the second quarter of 2026 was $80.4 million. For the first quarter of 2026 and the second quarter of 2025, distributable cash flow was $76.5 million and $76.2 million, respectively.

Financial Position and Activities

As of June 30, 2026, Black Stone had $1.7 million in cash, with $196.0 million drawn under its credit facility. As of July 31, 2026, the Partnership had $1.9 million in cash, with $168.0 million outstanding under the credit facility. Black Stone is in compliance with all financial covenants associated with its credit facility.

On April 28, 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 October 2026.

Second Quarter 2026 Distributions

As previously announced, the Board approved a cash distribution of $0.32 for each common unit attributable to the second quarter of 2026, representing a distribution coverage ratio of approximately 1.18x. The distribution will be payable on August 13, 2026, to unitholders of record as of the close of business on August 6, 2026.

Activity Update

Development Activity

At the end of the second quarter, Adamas Energy (formerly Aethon Energy, "Adamas") was operating two rigs on Black Stone's Angelina and San Augustine acreage in the Shelby Trough. Adamas successfully turned to sales 4 gross (0.4 net) wells in July 2026. 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, 6 gross (0.6 net) have turned to sales as of July 31, 2026, and 8 gross (0.7 net) are expected to turn to sales during the remainder of 2026. Adamas expects to drill 17 wells in the next program year that began in July 2026.

The Partnership's agreement with Revenant Energy ("Revenant") covers 270,000 gross acres in which it currently controls approximately 122,000 undeveloped net acres. Under the original agreement, Revenant was obligated to drill a minimum of 6 wells in 2026, increasing annually to a minimum of 25 wells per year by 2030. The Partnership also secured a non-operated working interest partner for the development. In November 2025, the agreement was amended to maintain the original 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. In May 2026, the agreement was amended to
2

reduce the Program Year 1 drilling commitment to 4 wells following the well control incident in April 2026 affecting one of the two wells spud in the first quarter of 2026. The amendment also revised the gross lateral-foot commitments applicable to subsequent program years and released approximately 40,000 gross acres from the development program. Development activity continued during the second quarter of 2026, with Revenant spudding two additional wells.

In November 2025, Black Stone entered into a 220,000 gross acre development agreement with Caturus Energy, LLC ("Caturus"), 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 to approximately 12 gross (0.8 net) wells annually by 2031, supported by minimum annual lateral-foot requirements, all net to Black Stone's interest. In addition to the 2 gross development wells in 2026, Caturus is currently drilling a pilot well in Cherokee County, consistent with the terms of the agreement.

In the Permian Basin, Blue Arrow Operating is in progress on a development of 25 gross (1.9 net) wells in the southern Delaware Basin. Three wells were turned to sales during the quarter with the remaining 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 second quarter of 2026, Black Stone acquired $37.2 million of additional (primarily non-producing) mineral and royalty interests. From September 2023 through the end of June 2026, the Partnership has completed $299.7 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 July 31, 2026, is summarized in the following tables:
Oil Hedge Position
Oil SwapOil Swap Price
MBbl$/Bbl
3Q26615$64.39
4Q26615$64.39
1Q27480$63.28
2Q27480$63.28
3Q27480$63.28
4Q27480$63.28

Natural Gas Hedge Position
Gas SwapGas Swap Price
BBtu$/MMbtu
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 second quarter of 2026, which is expected to be filed on or around August 4, 2026.

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Conference Call

Black Stone Minerals will host a conference call and webcast for investors and analysts to discuss its results for the second quarter of 2026 on Tuesday, August 4, 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 230 377 830. 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 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
4

BLACK STONE MINERALS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per unit amounts)
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
REVENUE
Oil and condensate sales$75,151 $55,807 $129,265 $105,900 
Natural gas and natural gas liquids sales40,275 46,189 103,683 104,424 
Lease bonus and other income6,696 4,714 13,083 11,639 
Revenue from contracts with customers122,122 106,710 246,031 221,963 
Gain (loss) on commodity derivative instruments, net26,850 52,784 (37,700)(3,217)
TOTAL REVENUE148,972 159,494 208,331 218,746 
OPERATING (INCOME) EXPENSE
Lease operating expense2,098 2,990 3,991 5,152 
Production costs and ad valorem taxes6,108 9,026 15,308 19,211 
Exploration expense4,825 1,749 9,450 6,859 
Depreciation, depletion, and amortization9,402 9,187 19,187 18,317 
General and administrative16,076 13,924 32,908 29,096 
Accretion of asset retirement obligations393 337 782 669 
TOTAL OPERATING EXPENSE38,902 37,213 81,626 79,304 
INCOME FROM OPERATIONS110,070 122,281 126,705 139,442 
OTHER INCOME (EXPENSE)
Interest and investment income57 56 89 120 
Interest expense(3,816)(2,270)(7,177)(3,667)
Other income (expense), net47 (39)13 81 
TOTAL OTHER EXPENSE(3,712)(2,253)(7,075)(3,466)
NET INCOME106,358 120,028 119,630 135,976 
Distributions on Series B cumulative convertible preferred units(7,366)(7,367)(14,732)(14,733)
NET INCOME ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON UNITS$98,992 $112,661 $104,898 $121,243 
ALLOCATION OF NET INCOME:
General partner interest$— $— $— $— 
Common units98,992 112,661 104,898 121,243 
$98,992 $112,661 $104,898 $121,243 
NET INCOME ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON UNIT:
Per common unit (basic)$0.47 $0.53 $0.49 $0.57 
Per common unit (diluted)$0.47 $0.53 $0.49 $0.57 
WEIGHTED AVERAGE COMMON UNITS OUTSTANDING:
Weighted average common units outstanding (basic)212,596 211,689 212,483 211,472 
Weighted average common units outstanding (diluted)212,596 226,761 212,483 211,472 

5

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

 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(Unaudited)
(Dollars in thousands, except for realized prices and per Boe data)
Production:
Oil and condensate (MBbls)
863 863 1,648 1,579 
Natural gas (MMcf)1
13,133 13,710 28,399 28,563 
Equivalents (MBoe)3,052 3,148 6,381 6,340 
Equivalents/day (MBoe)33.5 34.6 35.3 35.0 
Realized prices, without derivatives:
Oil and condensate ($/Bbl)$87.08 $64.67 $78.44 $67.07 
Natural gas ($/Mcf)1
3.07 3.37 3.65 3.66 
Equivalents ($/Boe)$37.82 $32.40 $36.51 $33.17 
Revenue:
Oil and condensate sales$75,151 $55,807 $129,265 $105,900 
Natural gas and natural gas liquids sales1
40,275 46,189 103,683 104,424 
Lease bonus and other income6,696 4,714 13,083 11,639 
Revenue from contracts with customers122,122 106,710 246,031 221,963 
Gain (loss) on commodity derivative instruments, net26,850 52,784 (37,700)(3,217)
Total revenue$148,972 $159,494 $208,331 $218,746 
Operating expenses:
Lease operating expense$2,098 $2,990 $3,991 $5,152 
Production costs and ad valorem taxes6,108 9,026 15,308 19,211 
Exploration expense4,825 1,749 9,450 6,859 
Depreciation, depletion, and amortization9,402 9,187 19,187 18,317 
General and administrative16,076 13,924 32,908 29,096 
Other expense:
Interest expense3,816 2,270 7,177 3,667 
Per Boe:
Lease operating expense (per working-interest Boe)$22.02 $23.55 $20.35 $21.22 
Production costs and ad valorem taxes2.00 2.87 2.40 3.03 
Depreciation, depletion, and amortization3.08 2.92 3.01 2.89 
General and administrative5.27 4.42 5.16 4.59 
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.


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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 six months ended June 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 June 30,Six Months Ended June 30,
2026202520262025
(Unaudited)
(In thousands, except per unit amounts)
Net income $106,358 $120,028 $119,630 $135,976 
Adjustments to reconcile to Adjusted EBITDA:
Depreciation, depletion, and amortization9,402 9,187 19,187 18,317 
Interest expense3,816 2,270 7,177 3,667 
Income tax expense (benefit)(2)8 60 (77)
Accretion of asset retirement obligations393 337 782 669 
Seismic data acquisition costs4,519 1,400 8,775 6,229 
Equity–based compensation2,480 1,960 6,031 5,015 
Unrealized (gain) loss on commodity derivative instruments(35,618)(49,639)16,688 2,751 
Adjusted EBITDA91,348 85,551 178,330 172,547 
Adjustments to reconcile to Distributable Cash Flow:
Change in deferred revenue— (1)(1)(2)
Cash interest expense(3,554)(1,994)(6,653)(3,117)
Preferred unit distributions(7,366)(7,367)(14,732)(14,733)
Distributable Cash Flow$80,428 $76,189 $156,944 $154,695 
Total units outstanding1
212,711 211,853 
Distributable Cash Flow per unit$0.378 $0.360 
1 The distribution attributable to the three months ended June 30, 2026 is estimated using 212,710,571 common units as of July 31, 2026; the exact amount of the distribution attributable to the three months ended June 30, 2026 will be determined based on units outstanding as of the record date of August 6, 2026. Distributions attributable to the three months ended June 30, 2025 were calculated using 211,852,971 common units as of the record date of August 7, 2025.
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