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Highlights

  • Second quarter 2025 net income was USD 120.0 million, with Adjusted EBITDA of USD 84.2 million.
  • Quarterly production averaged 34.6 MBoe/d, down from 35.5 MBoe/d in Q1 FY25.
  • Full-year 2025 production guidance lowered to 33–35 MBoe/d due to delayed gas activity.

Black Stone Minerals, L.P. (NYSE: BSM) reported financial and operational results for the second quarter of fiscal year 2025, posting net income of USD 120.0 million and Adjusted EBITDA of USD 84.2 million. Distributable cash flow for the quarter was USD 74.8 million, supporting a quarterly distribution of USD 0.30 per unit with a 1.18x coverage ratio.

Total production for the quarter averaged 34.6 thousand barrels of oil equivalent per day (MBoe/d), of which 96 percent came from mineral and royalty volumes. This represents a 3 percent sequential decline from Q1 FY25 and a larger decrease compared to 40.4 MBoe/d in Q2 FY24. The company attributed this trend to continued delays in natural gas-weighted activity.

Realized prices averaged USD 32.40 per Boe, down 5 percent from the prior quarter but up 8 percent year-over-year. Oil and gas revenue totaled USD 102.0 million, while a non-cash unrealized gain of USD 49.6 million on commodity derivatives supported the net income increase.

Production volumes from working-interest properties continued to decline as the company maintains its strategy of farming out development. Meanwhile, net debt was reduced from USD 99.0 million at quarter-end to USD 71.0 million by August 1, 2025, supported by improved liquidity and reduced draws on its credit facility.

Development activity during the quarter included new well completions in the Shelby Trough, Louisiana Haynesville, and Permian Basin. Notably, Black Stone entered into a new development agreement with Revenant Energy covering 270,000 gross acres, requiring a minimum of six wells in 2026 and 25 wells annually thereafter.

The company also acquired USD 31.2 million in mineral and royalty interests during the quarter, bringing total acquisition spending to USD 172.3 million since September 2023, primarily focused in the Shelby Trough region.

Due to production softness in the first half and anticipated delays in activity, Black Stone revised its full-year 2025 production guidance to a range of 33 to 35 MBoe/d, down from the prior range of 38 to 41 MBoe/d. The company continues to pursue medium- and long-term growth opportunities through development agreements, mineral acquisitions, and disciplined capital management.