Key Highlights

  • BSM reported third quarter 2026 Net Income of $52.4 million versus $91.7 million a year earlier.
  • Adjusted EBITDA rose to $104.1 million from $88.1 million, and distributable Cash Flow reached $93.0 million versus $78.6 million.
  • The distribution attributable to the quarter is $0.35 per common unit, up 9% from the prior quarter, with coverage of 1.25x.
  • Mineral and Royalty production averaged 34.5 MBoe/d, up 6% from the second quarter.
  • Total Debt was $195.0 million at Sep 30, 2026, and the Credit Facility borrowing base was reaffirmed at $580.0 million.

Distribution Rises to $0.35 per Unit as Distributable Cash Flow Climbs

Black Stone Minerals (NYSE:BSM) announced third quarter 2026 results on Nov 2, 2026 for the quarter ended Sep 30, 2026. The Partnership declared a distribution of $0.35 per common unit, or $1.40 annualized, up 9% from the prior quarter and 17% from $0.30 for the first quarter. It is payable on Nov 13, 2026 to unitholders of record on Nov 6, 2026.

Distributable cash flow was $93.0 million, or $0.437 per unit, versus $78.6 million a year earlier, an 18.4% rise (calculated). Adjusted EBITDA of $104.1 million compared with $88.1 million, up 18.1% (calculated). Black Stone is one of the largest owners and managers of oil and Natural Gas mineral interests in the United States, with positions in 41 states.

A $30.2 Million Derivative Loss Cuts Net Income Despite 22.5% Higher Oil and Gas Revenue

Net income was $52.4 million, or $0.21 per common unit, compared with $91.7 million, or $0.40, a year ago and $106.4 million in the second quarter. The gap stems from a $30.2 million loss on Commodity derivatives, made up of a $29.8 million non-cash unrealized loss and $0.4 million of realized settlements. A year earlier the partnership booked a $27.3 million derivative gain.

Oil and gas Revenue was $122.7 million, up from $100.2 million (22.5%, calculated) and from $115.4 million in the second quarter. The realized price excluding Derivatives was $37.44 per Boe versus $30.01, with oil at $86.95 per barrel versus $62.60. General and administrative expense rose to $16.5 million from $12.3 million, and interest expense increased to $3.9 million from $2.4 million.

Shelby Trough Development Agreement Expands to 950,000 Gross Acres

Mineral and royalty production averaged 34.5 MBoe/d, 73% natural gas, up from 32.5 MBoe/d in the second quarter but just below 34.7 MBoe/d a year earlier. Total production, including working-interest volumes, was 35.6 MBoe/d versus 36.3 MBoe/d. In October 2026 the partnership amended an existing development agreement to add 730,000 gross acres and two further development areas, each starting with a pilot phase.

Other programs continue, with one operator running two rigs on Black Stone acreage and another drilling to meet a four-well commitment for 2026. Black Stone bought $14.6 million of mineral and royalty interests in the quarter and spent $30.6 million in cash plus $2.1 million in units in October. Acquisitions total $335.5 million since September 2023.

Borrowing Base Holds at $580 Million as the Nov 3 Call and April 2027 Redetermination Loom

Total debt was $195.0 million at Sep 30, 2026 and $197.0 million on Oct 30, 2026, with $5.4 million of cash, and the partnership remains in covenant compliance. The borrowing base was reaffirmed at $580.0 million with commitments kept at $375.0 million, and the next redetermination is set for April 2027. Hedges cover 2026 to 2028, including fourth quarter 2026 gas swaps of 12,880 BBtu at $3.73 per MMBtu, and management will discuss the quarter on a call on Nov 3, 2026.