Key Highlights

  • Net income was USD 52.4 million, adjusted EBITDA was USD 104.1 million, and distributable Cash Flow was USD 93.0 million.
  • Mineral and Royalty production was 34.5 MBoe/d, up 6% from the prior quarter, with total production at 35.6 MBoe/d.
  • The distribution rose 9% from the prior quarter to USD 0.35 per unit, or USD 1.40 annualized, covered 1.25 times.
  • Total Debt was USD 195.0 million at quarter end and USD 197.0 million on October 30.

Results and Distribution

Black Stone Minerals, L.P. (NYSE:BSM) reported third-quarter 2026 Net Income of USD 52.4 million and adjusted EBITDA of USD 104.1 million. Distributable cash flow was USD 93.0 million. The Partnership announced a third-quarter distribution of USD 0.35 per common unit, or USD 1.40 annualized, up 9% from the prior quarter and 17% since the first quarter, with distribution coverage of 1.25 times.

Production and Financial Results

Oil and gas Revenue was USD 122.7 million, 63% from oil and condensate, up 6% from USD 115.4 million in the second quarter and from USD 100.2 million a year earlier. The average realized price was USD 37.44 per Boe, down 1% from USD 37.82 sequentially and up 25% from USD 30.01 a year earlier. The partnership recorded a loss on Commodity Derivatives of USD 30.2 million, made up of a USD 0.4 million realized loss and a non-cash unrealized loss of USD 29.8 million, versus gains of USD 26.8 million and USD 27.3 million in the prior quarter and year-earlier quarter. Lease Bonus and other income was USD 7.2 million versus USD 6.7 million and USD 5.0 million. Net income was USD 52.4 million versus USD 106.4 million in the second quarter and USD 91.7 million a year earlier, while adjusted EBITDA was USD 104.1 million versus USD 91.3 million and USD 88.1 million, and distributable cash flow was USD 93.0 million versus USD 80.4 million and USD 78.6 million.

Mineral and royalty production was 34.5 MBoe/d, of which 73% was natural gas, up 6% from 32.5 MBoe/d in the second quarter, and total production including working-interest volumes was 35.6 MBoe/d, of which 97% was mineral and royalty and 73% natural gas, versus 33.5 MBoe/d in the second quarter and 36.3 MBoe/d a year earlier. Working-interest production was 1.1 MBoe/d. Co-chief executive and president Taylor DeWalch said the quarter reflected increased development activity, higher oil production and revenue, and continued leasing and Portfolio Management that promote development of its oil acreage, while Natural Gas development programs continue to ramp.

Shelby Trough Development

The partnership significantly expanded its Caturus development agreement in the Shelby Trough through a successful Marketing process, adding two significant development areas and an associated long-term development program. Co-chief executive and president Fowler Carter said continued execution under the Adamas agreement, initial development under the Revenant agreement and rising activity from other operators across its Shelby Trough acreage show the growing opportunity.

Management said LNG exports, power generation and other Demand sources require significant long-term natural gas supply, and that its strategy has been to assemble large, high-interest mineral positions contiguous to legacy Assets and place them into structured development programs.

Balance Sheet and Items to Follow

Total debt was USD 195.0 million at September 30 and USD 197.0 million at October 30, 2026, with USD 5.4 million of cash on hand. Management cited a second consecutive quarterly distribution increase while maintaining prudent coverage, financial flexibility and a strong balance sheet.

Items to follow include development activity under the Caturus, Adamas and Revenant agreements, gas versus oil mix, distribution coverage and the debt balance.