third quarter of 2026
Filed Nov 2, 2026Black Stone Minerals, L.P. Reports Third Quarter Results
Higher production, oil and gas revenue, Adjusted EBITDA, distributable cash flow and the common-unit distribution were offset by a $30.2 million loss on commodity derivative instruments and lower net income versus both the preceding quarter and the third quarter of 2025.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income, three months ended September 30, 2026 (in thousands)GAAP | $52.37M | – | – |
| Net income attributable to the general partner and common units, three months ended September 30, 2026 (in thousands)GAAP | $45.00M | – | – |
| Net income attributable to limited partners per common unit, basic, three months ended September 30, 2026GAAP | $ 0.21 | – | – |
| Net income attributable to limited partners per common unit, diluted, three months ended September 30, 2026GAAP | $ 0.21 | – | – |
| Weighted average common units outstanding, basic, three months ended September 30, 2026GAAP | 212,710 | – | – |
| Weighted average common units outstanding, diluted, three months ended September 30, 2026GAAP | 212,710 | – | – |
| Total revenue, three months ended September 30, 2026 (in thousands)GAAP | $99.73M | – | – |
| Revenue from contracts with customers, three months ended September 30, 2026 (in thousands)GAAP | 129.9M | – | – |
| Oil and condensate sales, three months ended September 30, 2026 (in thousands)GAAP | $77.65M | – | – |
| Natural gas and natural gas liquids sales, three months ended September 30, 2026 (in thousands)GAAP | 45.05M | – | – |
| Lease bonus and other income, three months ended September 30, 2026 (in thousands)GAAP | 7.18M | – | – |
| Gain (loss) on commodity derivative instruments, net, three months ended September 30, 2026 (in thousands)GAAP | −30.15M | – | – |
| Income from operations, three months ended September 30, 2026 (in thousands)GAAP | 56.22M | – | – |
| Total operating expense, three months ended September 30, 2026 (in thousands)GAAP | 43.51M | – | – |
| Lease operating expense, three months ended September 30, 2026 (in thousands)GAAP | 2.28M | – | – |
| Production costs and ad valorem taxes, three months ended September 30, 2026 (in thousands)GAAP | 9.50M | – | – |
| Exploration expense, three months ended September 30, 2026 (in thousands)GAAP | 4.74M | – | – |
| Depreciation, depletion, and amortization, three months ended September 30, 2026 (in thousands)GAAP | 10.12M | – | – |
| General and administrative, three months ended September 30, 2026 (in thousands)GAAP | 16.47M | – | – |
| Accretion of asset retirement obligations, three months ended September 30, 2026 (in thousands)GAAP | 401K | – | – |
| Interest expense, three months ended September 30, 2026 (in thousands)GAAP | −3.94M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026 (in thousands)non-GAAP | 104.1M | – | – |
| Distributable Cash Flow, three months ended September 30, 2026 (in thousands)non-GAAP | $93.04M | – | – |
| Distributable Cash Flow per unit, three months ended September 30, 2026non-GAAP | $ 0.437 | – | – |
| Total reported production, three months ended September 30, 2026other | 35.6 MBoe/d | – | – |
| Mineral and royalty volumes, third quarter of 2026other | 34.5 MBoe/d | 6% | – |
| Working-interest production, third quarter of 2026other | 1.1 MBoe/d | – | – |
| Average realized price per Boe, excluding the effect of derivative settlements, third quarter of 2026other | $37.44 | decrease of 1% | 25% increase |
| Oil and gas revenue, third quarter of 2026GAAP | $122.7M | increase of 6% | – |
| Net income, nine months ended September 30, 2026 (in thousands)GAAP | 172.0M | – | – |
| Total revenue, nine months ended September 30, 2026 (in thousands)GAAP | $308.1M | – | – |
| Revenue from contracts with customers, nine months ended September 30, 2026 (in thousands)GAAP | 375.9M | – | – |
| Oil and condensate sales, nine months ended September 30, 2026 (in thousands)GAAP | 206.9M | – | – |
| Natural gas and natural gas liquids sales, nine months ended September 30, 2026 (in thousands)GAAP | 148.7M | – | – |
| Gain (loss) on commodity derivative instruments, net, nine months ended September 30, 2026 (in thousands)GAAP | −67.85M | – | – |
| Income from operations, nine months ended September 30, 2026 (in thousands)GAAP | 182.9M | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026 (in thousands)non-GAAP | 282.4M | – | – |
| Distributable Cash Flow, nine months ended September 30, 2026 (in thousands)non-GAAP | $250.0M | – | – |
| Total reported production, nine months ended September 30, 2026other | 35.4 MBoe/d | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Oil and condensate salesOil and condensate represented 63% of oil and gas revenue for the third quarter of 2026. | $77.65M | – | – |
| Natural gas and natural gas liquids salesMineral and royalty volumes were 73% natural gas for the third quarter of 2026. | 45.05M | – | – |
| Lease bonus and other incomeLease bonus and other income was $6.7 million in the second quarter of 2026 and $5.0 million in the third quarter of 2025. | 7.18M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Cash distribution of $0.35 for each common unit attributable to the third quarter of 2026.
- $1.40 annualized.
- Distribution was up 9% from the prior quarter and 17% from the $0.30 per unit distribution attributable to the first quarter of 2026.
- Distribution coverage was approximately 1.25x.
- Distribution payable on November 13, 2026, to unitholders of record as of the close of business on November 6, 2026.
- In the third quarter of 2026, the Partnership acquired $14.6 million of additional mineral and royalty interests.
- In October 2026, the Partnership acquired additional mineral and royalty interests and surface rights for $30.6 million in cash and $2.1 million in common units of the Partnership.
- From September 2023 through October 2026, the Partnership completed $335.5 million of acquisitions.
What drove it
- Mineral and royalty production increased 6% from the prior quarter to 34.5 MBoe/d.
- Oil and gas revenue increased 6% from $115.4 million in the second quarter of 2026 to $122.7 million, with 63% from oil and condensate.
- The realized price per Boe excluding derivatives was $37.44, a 25% increase from $30.01 in the third quarter of 2025.
- Adjusted EBITDA was $104.1 million and distributable cash flow was $93.0 million.
- Caturus expanded its contract area by 730,000 gross acres to a total of 950,000 gross acres.
- Adamas turned to sales 7 gross (0.7 net) wells during the third quarter.
Concerns
- The Partnership reported a $30.2 million loss on commodity derivative instruments, including a non-cash $29.8 million unrealized loss.
- Net income was $52.4 million, compared with $106.4 million in the preceding quarter and $91.7 million in the third quarter of 2025.
- Total reported production of 35.6 MBoe/d was below 36.3 MBoe/d in the third quarter of 2025.
- General and administrative expense was $ 16,470 for the three months ended September 30, 2026, compared with $ 12,287 for the prior-year period.
- Interest expense was $ 3,935 for the three months ended September 30, 2026, compared with $ 2,426 for the prior-year period.
What to watch
- Revenant is expected to meet its 4-well drilling commitment for 2026; 2 wells were expected to turn to sales by year-end and the remaining 2 wells were expected to begin production in mid-2027.
- Caturus's first 2 development wells, spud in October 2026, are expected to begin production in the first half of 2027.
- Blue Arrow Operating's remaining wells in its 25 gross (1.9 net) well development were expected to come online in the fourth quarter of 2026 and first half of 2027.
- The next borrowing base redetermination is scheduled for April 2027.
- Commodity derivative contracts cover portions of anticipated production for 2026, 2027, and 2028.
Balance sheet and cash flow
- 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.
- The borrowing base was reaffirmed at $580.0 million on October 30, 2026, and the Partnership elected to maintain total commitments at $375.0 million.
- The next regularly scheduled borrowing base redetermination is set for April 2027.
- The Partnership reported distributable cash flow of $93.0 million for the third quarter of 2026.
Analysis
Black Stone delivered higher sequential operating volumes and cash-generation measures in the third quarter. Mineral and royalty volumes were 34.5 MBoe/d, up 6% from the prior quarter, while total reported production was 35.6 MBoe/d versus 33.5 MBoe/d in the second quarter. Oil and gas revenue increased 6% to $122.7 million, with oil and condensate contributing 63% of that revenue. The realized price per Boe excluding derivatives was $37.44, down 1% from the second quarter but up 25% from the third quarter of 2025.
The income statement was pressured by derivatives. Black Stone recorded a $30.2 million loss on commodity derivative instruments, comprising a $0.4 million loss from realized settlements and a non-cash $29.8 million unrealized loss. This compared with gains of $26.8 million in the second quarter of 2026 and $27.3 million in the third quarter of 2025. Consequently, net income was $52.4 million, below $106.4 million in the preceding quarter and $91.7 million a year earlier, despite the higher oil and gas revenue.
Non-GAAP cash measures improved. Adjusted EBITDA reached $104.1 million, compared with $91.3 million in the second quarter and $88.1 million in the third quarter of 2025. Distributable cash flow was $93.0 million, compared with $80.4 million and $78.6 million, respectively. The Board approved a $0.35 per common unit distribution, up 9% sequentially and 17% from the first-quarter distribution, with approximately 1.25x distribution coverage.
The balance sheet showed $5.5 million of cash and $195.0 million drawn under the credit facility at September 30, 2026. At October 30, debt was $197.0 million and cash was $5.4 million. The borrowing base was reaffirmed at $580.0 million and commitments remained $375.0 million. Management continued acquisitions, reporting $14.6 million of third-quarter purchases and an October transaction for $30.6 million in cash plus $2.1 million in common units.
Development activity and the expanded Caturus arrangement are central to the reported growth strategy. The amended Caturus agreement expanded the contract area to 950,000 gross acres and established incremental commitments across two additional development areas. Nearer-term activity includes Caturus development wells expected to begin production in the first half of 2027, Revenant wells expected to turn to sales by year-end or begin production in mid-2027, and remaining Blue Arrow wells expected online through the first half of 2027. The release did not provide formal company financial or production guidance.
Management, verbatim
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.
Taylor DeWalch, Co-CEO and President
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.
Fowler Carter, Co-CEO and President
Not in the filing
stated, not guessed- Formal forward financial guidance
- Formal production guidance
- Gross margin
- Operating cash flow
- Free cash flow
- Cash flow from investing activities
- Cash flow from financing activities
- Share repurchases
- Tax rate
- Prior-quarter values for most GAAP statement-of-operations line items
- Percentage year-over-year changes for most reported financial metrics
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.