Black Stone Minerals (BSM) investor relations material

Executive summary

• Net income for Q2 2026 was $106.4 million, with Adjusted EBITDA at $91.3 million and distributable cash flow of $80.4 million.

• Distribution per unit increased 7% to $0.32, with a coverage ratio of 1.18x, reflecting strong business performance and confidence in future cash flows.

• Oil and condensate sales rose 34.7% year-over-year, driven by higher realized prices, while natural gas sales declined 12.8% due to lower prices and volumes.

• Production averaged 33.5 MBoe/d (72% natural gas), down 9% sequentially due to lower Haynesville volumes, but strong oil production and higher prices offset lower gas volumes.

• Completed $40 million in mineral and royalty acquisitions, expanding exposure to future development.

Financial highlights

• Oil and condensate sales were $75.2 million in Q2 2026, up from $55.8 million in Q2 2025.

• Natural gas and NGL sales were $40.3 million in Q2 2026, down from $46.2 million in Q2 2025.

• Adjusted EBITDA for Q2 2026 was $91.3 million, up 6.8% year-over-year, and distributable cash flow was $80.4 million, up 5.6%.

• Average realized price per BOE (excluding derivatives) increased 7% sequentially to $37.82.

• Lease bonus and other income reached $6.7 million, up from both prior periods.

Outlook and guidance

• Expect ramp in production from ongoing development agreements and new wells in Shelby Trough and Haynesville.

• Management remains optimistic about long-term natural gas outlook and expects continued production growth from development agreements.

• Eight additional Adamas wells expected online in 2026, with 17 planned for the new program year.

• Oil price volatility is expected to persist due to geopolitical events and supply chain disruptions; natural gas prices are forecast to remain stable with potential upside from LNG exports.

• The company intends to continue targeted mineral and royalty acquisitions and maintain a disciplined capital allocation strategy.