Black Stone Minerals (BSM) Q3 2026 earnings summary

Executive summary

• Q3 net income was $52.4 million, Adjusted EBITDA was $104.1 million, and distributable cash flow was $93.0 million; mineral and royalty volumes rose 6% QoQ to 34.5 MBoe/d.

• Expanded Shelby Trough agreements supported development growth; the $0.35 quarterly distribution rose 9% QoQ, with 1.25x coverage.

• Nine-month operating cash flow was $257.9 million, compared with $245.1 million a year earlier.

Financial highlights

• Q3 revenue from customer contracts rose 23.5% YoY to $129.9 million; total revenue was $99.7 million after a $30.2 million net derivative loss, including $29.8 million non-cash unrealized loss.

• Net income was $52.4 million versus $91.7 million in Q3 2025; net income attributable to common units was $45.0 million, and diluted EPS was $0.21 versus $0.40.

• Oil and condensate sales rose 36.0% YoY to $77.6 million; natural gas and NGL sales rose 4.6% to $45.1 million, and lease bonus income rose 43.4% to $7.2 million.

• Adjusted EBITDA was $104.1 million versus $88.1 million YoY; distributable cash flow was $93.0 million versus $78.6 million.

• Nine-month total revenue declined 12.3% to $308.1 million, including $67.9 million of net derivative losses versus $24.1 million of gains in 9M 2025.

Outlook and guidance

• Adamas had spud 6 of 17 wells planned for its program year ending June 2027; four prior-year wells were expected to turn to sales in Q4 2026.

• Revenant was expected to meet its 2026 four-well commitment; two wells were expected online by year-end, and two more spud in October were expected to produce in mid-2027.

• Caturus’s first additional development area could ramp to ~12 gross wells annually by 2034; the optional second area could ramp to ~12 annually by 2038, following pilot phases.

• Blue Arrow had 15 gross wells remaining in its 25-well southern Delaware Basin program, expected online in Q4 2026 and H1 2027; management also cited Permian and Bakken DUC completions as potential oil-volume support, subject to operator activity and prices.

• Expected gas-demand growth from LNG exports, power generation, and industrial uses supports development prospects; EIA forecast LNG exports of 18.2 Bcf/d for the rest of 2026 and 18.6 Bcf/d in 2027.