Wall Street analysts expect Black Stone Minerals (BSM) to post quarterly earnings of $0.27 per share in its upcoming report, which indicates a year-over-year increase of 50%. Revenues are expected to be $104 million, up 24.2% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 1.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Befo ...

Black Stone Minerals, L.P. (NYSE:BSM) is one of the 12 Dividend Stocks With High Insider Buying. Piper Sandler Reiterates Hold on Black Stone Minerals (BSM) Shares Piper Sandler analyst Mark Lear updated the rating on Black Stone Minerals, L.P. (NYSE:BSM), reiterating a Hold with a price target of $13, on January 28, 2026. Earlier, on January 16, 2026, Tim Rezvan from KeyBanc also maintained a Hold rating on the stock. Additionally, 3 out of the 4 analysts following the stock lean towards Hold, based on ...

Core Points - Black Stone Minerals, L.P. declared a cash distribution of $0.30 per common unit for the fourth quarter of 2025, consistent with the previous quarter [1] - The earnings call to discuss the fourth quarter and full-year 2025 results is scheduled for February 24, 2026, at 9:00 a.m. Central time [1] - The company owns mineral and royalty interests in 41 states across the continental United States, positioning itself as one of the largest owners in the sector [1] Financial Highlights - Mineral and royalty production for the third quarter of 2025 was 34.7 MBoe/d, reflecting a 5% increase from the prior quarter [1] - Total production, including working-interest volumes, reached 36.3 MBoe/d for the quarter [1] - Net income for the third quarter was reported at $91.7 million [1] Development Agreement - Black Stone Minerals entered into a development agreement covering 220,000 gross acres with Caturus Energy, aimed at advancing the development of its acreage [1] - The agreement supports a multi-year drilling program to meet the growing demand for natural gas in the Gulf Coast region [1]

Group 1 - Black Stone Minerals (BSM) reported a 5% quarter-over-quarter increase in production in Q3 2025, which positions the company to potentially reach or exceed the high-end of its full year guidance even if Q4 2025 performance is lower than expected [1] - The article highlights the expertise of Aaron Chow, also known as Elephant Analytics, who has over 15 years of analytical experience and is recognized as a top-rated analyst on TipRanks [1] - Aaron Chow co-founded a mobile gaming company that was acquired by PENN Entertainment, showcasing his background in analytical and modeling skills within the gaming sector [1] Group 2 - The investing group Distressed Value Investing focuses on value opportunities and distressed plays, with a significant emphasis on the energy sector [1] - The community offers exclusive research about various companies and investment opportunities, along with access to a portfolio of historic research that includes over 1,000 reports on more than 100 companies [1]

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Core Viewpoint - Black Stone Minerals, L.P. has entered into a significant development agreement with Caturus Energy, covering 220,000 gross acres in the Shelby Trough and Haynesville Expansion, aimed at enhancing natural gas production in the Gulf Coast region [1][2]. Development Agreement Details - The agreement allows Caturus to escalate its drilling program over the next six years, starting with approximately two gross (0.2 net) wells in 2026 and ramping up to about 12 gross (0.8 net) wells annually by the end of the six years [2]. - BSM currently manages around 40,000 undeveloped net acres within this contract area, with potential for further acquisitions to increase its net interest [3]. Management Insights - Thomas L. Carter, Jr., CEO of Black Stone Minerals, expressed optimism about the partnership with Caturus, highlighting the importance of their mineral ownership and control over hydrocarbon resources for a long-term gas development program [4]. - BSM has been building a substantial mineral position in East Texas for over a century, allowing significant control over development timing and collaboration with capital providers and operators [5]. Operational Capacity - The partnership has resulted in over 200,000 net acres covered by development agreements in the area, representing an estimated 20 years of drilling inventory in the Haynesville and Bossier regions, from which BSM expects to receive royalties [6]. - Caturus, controlled by Kimmeridge, brings operational and technical expertise to expedite the extraction of BSM's reserves [6]. Strategic Vision - David Lawler, CEO of Caturus, stated that this transaction is a milestone in their strategy to build a leading integrated natural gas platform, enhancing their upstream position in South Texas and supporting a liquefaction terminal project in Louisiana [7][9].

Production and Operations - As of September 30, 2025, the company holds mineral and royalty interests in 41 states, including approximately 71,000 producing wells[92] - Aethon Energy is operating one rig and has spud 3 out of 15 expected wells for the current program year, with 2 gross wells turned to sales in Q3 2025[94] - In the Louisiana Haynesville, 2 gross wells were turned to sales under Accelerated Drilling Agreements, bringing the total to 9 wells[95] - In the Permian Basin, 34 gross wells were spud, with 5 gross wells turned to sales in Q3 2025 and 13 gross wells expected to turn to sales in Q4 2025[96] - Aethon expects to drill a total of 15 wells in the current program year, having spud three wells as of September 30, 2025, with an inventory of 12 wells from the previous year expected to be turned to sales in Q4 2025 and early 2026[160] - Aethon has a total of 10 banked wells as of September 30, 2025, with one well from the previous program year replaced by a banked well[161] - The company is party to joint exploration agreements with Aethon, committing to a combined annual minimum drilling of 16 wells across both contract areas[159] - Under the Revenant Joint Exploration Agreement, Aethon has well commitments escalating over five years, starting with 6 wells in 2026 and reaching 25 wells in 2030 and beyond[163] Financial Performance - Total revenue for Q3 2025 decreased by 1.8% to $132.47 million compared to $134.86 million in Q3 2024, primarily due to decreased gains on commodity derivative instruments and lower oil and condensate sales[125] - Adjusted EBITDA for Q3 2025 was $86.28 million, slightly down from $86.44 million in Q3 2024[123] - Distributable cash flow for Q3 2025 was $76.76 million, compared to $78.62 million in Q3 2024, reflecting a decrease of 2.4%[123] - Total revenue for the nine months ended September 30, 2025, increased to $351.216 million, a 0.4% rise compared to $349.973 million in 2024[137] - Oil and condensate sales decreased by 22.1% to $162.991 million, down from $209.112 million, primarily due to lower production volumes and realized prices[138] - Natural gas and NGL sales increased by 27.7% to $147.510 million, up from $115.543 million, driven by higher realized prices despite lower production volumes[139] - Lease bonus and other income increased by 133.6% to $5.01 million in Q3 2025, driven by leasing activity in the Permian Basin and Haynesville/Bossier plays[129] - Lease bonus and other income rose by 58.8% to $16.645 million, compared to $10.480 million in the prior period, mainly from leasing activity in the Permian Basin[141] Commodity Prices and Market Conditions - Oil prices decreased to $63.17 per barrel in Q3 2025, down from $82.83 in Q3 2024, while natural gas prices increased to $3.12 per MMBtu from $1.54[101] - The realized price for oil and condensate decreased by 14.4% to $62.60 per Bbl in Q3 2025, while natural gas prices increased by 22.8% to $2.96 per Mcf[124] - Net natural gas exports averaged 14.5 Bcf per day in Q3 2025, a 22% increase from the 2024 average, with forecasts of 16.0 Bcf per day for the remainder of 2025[107] - Natural gas inventories concluded the injection season in October 2025 at 4.0 Tcf, which is 5% higher than the five-year average[105] - The U.S. rotary rig count for oil was 424 in Q3 2025, a decrease from 484 in Q3 2024, while natural gas rigs increased to 117 from 99[103] - Commodity prices for oil, natural gas, and NGLs are historically volatile, with a 10% discount applied to SEC commodity pricing resulting in an approximate 1.3% reduction in proved reserve volumes[170] Expenses and Cash Flow - Oil and condensate production increased by 4.2% to 912 MBbls in Q3 2025, while natural gas production decreased by 5.3% to 14,556 MMcf[124] - Interest expense rose significantly by 235.1% to $2.43 million in Q3 2025, attributed to higher average outstanding borrowings[135] - Operating expenses for Q3 2025 included a 13.7% increase in lease operating expenses to $2.75 million, primarily due to increased service-related expenses[130] - Interest expense increased by 207.9% to $6.093 million, compared to $1.979 million, due to higher average outstanding borrowings[147] - Cash flows provided by operating activities decreased to $245.067 million from $298.087 million, primarily due to reduced oil sales and lower realized prices[152] Capital Expenditures and Investments - Capital expenditures for non-operated working interests are expected to be approximately $2.3 million for 2025, with $0.6 million already invested[155] - During the nine months ended September 30, 2025, the company acquired mineral and royalty interests for $65.7 million, funded by $58.3 million in cash and $7.4 million in equity[156] Risk Management and Hedging - The company utilizes various derivative instruments to manage cash flow variability due to commodity price volatility[98] - The company hedged a portion of its expected future volumes for the remainder of 2025, 2026, and 2027, with a maximum of 90% hedged for the first 24 months[117] - The company intends to continuously monitor production and commodity prices to adjust hedging strategies accordingly[118] - Aethon evaluates the credit standing of its derivative contract counterparties, all rated Baa2 or better by Moody's as of September 30, 2025[171] - The company does not currently have any interest rate hedges in place but may use derivative instruments to hedge exposure to variable interest rates in the future[173] Debt and Compliance - The Credit Facility has a maximum credit amount of $1.0 billion, with a reaffirmed borrowing base of $580.0 million as of October 2025, and cash commitments maintained at $375.0 million[164] - Aethon was in compliance with all debt covenants as of September 30, 2025, with no material changes to contractual obligations or critical accounting policies[165][166][167] - Aethon had $82.5 million in weighted average outstanding borrowings under the Credit Facility at a weighted average interest rate of 7.16% for the nine months ended September 30, 2025[173] - The next semi-annual redetermination of the borrowing base under the Credit Facility is scheduled for April 2026[164]

Financial Data and Key Metrics Changes - The company reported net income of $91.7 million for Q3 2025, with Adjusted EBITDA at $86.3 million [10] - Mineral and royalty production increased to 34.7 thousand BOE per day, a 5% increase from the previous quarter [10] - Distributable cash flow for the quarter was $76.8 million, representing a coverage ratio of 1.21 times [11] Business Line Data and Key Metrics Changes - The increase in production was primarily driven by strong volumes in the Permian Basin [10] - Total production volumes reached 36.3 thousand BOE per day, with 57% of oil and gas revenue coming from oil and condensate production [10][11] Market Data and Key Metrics Changes - The company is optimistic about the natural gas market outlook, particularly due to increasing demand from LNG and power sectors [11] - The company expects to see significant gas growth from the Shelby Trough, with over 50 wells anticipated to be drilled annually [5][6] Company Strategy and Development Direction - The company is pursuing acquisitions in the Haynesville expansion and is working on a development agreement covering 220,000 gross acres [4][5] - The focus remains on increasing production and distribution outlook through ongoing development agreements and new projects in the Permian [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the company, emphasizing the importance of focusing on a multi-year forecast rather than short-term fluctuations [27] - The company is well-positioned to benefit from the expected stability in natural gas markets, suggesting that now is an opportune time to invest in shares [28] Other Important Information - The company added $20 million in mineral and royalty acquisitions during the quarter, bringing total acquisitions since September 2023 to approximately $193 million [8] - Management highlighted the potential for significant inventory in the Shelby Trough and surrounding areas, indicating ongoing geological exploration [22][25] Q&A Session Summary Question: Update on KLX area discussions and interest following Expand's entry - Management indicated progress in discussions, now at the half-yard line, with expectations to finalize soon [18] - Interest in commitments remains robust, with operating partners able to exceed minimum annual commitments [20] Question: Volume trends for Q4 and 2026 - Management remains cautious about updating guidance but is optimistic about Aethon volumes and Permian developments coming online [26] Question: Natural gas differentials and hedging strategy - The company maintains a consistent hedging strategy and is focused on high-interest acreage to mitigate challenges related to Waha pricing [34][35]

Financial Data and Key Metrics Changes - The company reported net income of $91.7 million for Q3 2025, with Adjusted EBITDA at $86.3 million [10] - Mineral and royalty production increased by 5% quarter-over-quarter to 34,700 BOE per day, while total production volumes reached 36,300 BOE per day [10] - Distributable cash flow for the quarter was $76.8 million, representing a coverage ratio of 1.21x [11] Business Line Data and Key Metrics Changes - The increase in production was primarily driven by strong volumes in the Permian Basin [10] - The company expects to double the current annual drilling rate in the expanded Shelby Trough over the next five years due to new developments and existing agreements [7] Market Data and Key Metrics Changes - The company maintains production guidance for 2025 at 33,000-35,000 BOE per day, with a focus on monitoring activity levels and commodity price dynamics [10] - The outlook for natural gas is increasingly constructive, supported by rising demand from LNG and power sectors [11] Company Strategy and Development Direction - The company is pursuing acquisitions in the Haynesville expansion and is working on solidifying a development agreement covering 220,000 gross acres [4][5] - The management is optimistic about the ongoing development in the Permian and the potential for significant gas growth in the Shelby Trough [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the company, emphasizing the importance of focusing on a multi-year forecast rather than short-term fluctuations [27] - The company is well-positioned to benefit from the expected stability in natural gas markets, suggesting that now is an opportune time to invest in shares [28] Other Important Information - The company added $20 million in mineral and royalty acquisitions during the quarter, bringing total acquisitions since September 2023 to approximately $193 million [8] - Management highlighted the potential for additional accretive acquisition opportunities in the near term [8] Q&A Session Summary Question: Update on KLX area discussions and interest following Expand's entry into Western Haynesville - Management indicated progress in discussions, now at the half-yard line, with expectations to finalize soon [18] - Interest in commitments remains robust, with operating partners capable of exceeding minimum annual commitments [20] Question: Volume trends for Q4 and 2026 - Management remains cautious about updating guidance but is optimistic about Aethon volumes and Permian developments coming online [26] Question: Natural gas differentials and hedging strategy - The company maintains a consistent hedging strategy and is focused on high-interest acreage developments to mitigate challenges at Waha [34][35]

Financial Data and Key Metrics Changes - The company reported net income of $91.7 million for Q3 2025, with adjusted EBITDA at $86.3 million, representing a 5% increase in mineral and royalty production to 34,700 BOE per day compared to the prior quarter [12][13][14] - Distributable cash flow for the quarter was $76.8 million, which represents a coverage ratio of 1.21 times for the period [13] Business Line Data and Key Metrics Changes - Mineral and royalty production increased to 34,700 BOE per day, driven by strong volumes in the Permian Basin, while total production volumes reached 36,300 BOE per day [12][13] - The company expects to drill over 50 wells annually in the expanded Shelby Trough, contributing to significant gas growth [7][10] Market Data and Key Metrics Changes - The company noted that 57% of oil and gas revenue in the quarter came from oil and condensate production [13] - The outlook for natural gas is increasingly constructive due to rising demand from LNG and power sectors, positioning the company favorably for future supply calls [14] Company Strategy and Development Direction - The company is pursuing acquisitions in the Haynesville expansion and is optimistic about the development of Revenant starting in early 2026 [7][8] - A grassroots acquisition program added $20 million in mineral and royalty acquisitions during the quarter, totaling approximately $193 million since September 2023 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential anchored by development agreements in high-interest acreage and core legacy assets [14] - The company is focused on a multi-year forecast, emphasizing the importance of long-term strategies over short-term fluctuations [25] Other Important Information - The company is working on assembling additional development packages in the Shelby Trough and Western Haynesville, indicating a strong pipeline of opportunities [21][22] Q&A Session Summary Question: Update on KLX area discussions and interest in Western Haynesville - Management indicated progress in KLX area discussions, now at the half-yard line, with expectations to finalize soon. Interest in commitments following the entry into Western Haynesville remains robust [18][19] Question: Volume trends for Q4 and 2026 - Management did not update full-year guidance but expressed excitement about Aethon volumes coming online and ongoing developments in the Permian, suggesting a positive outlook for the upcoming months [23][24] Question: Natural gas differentials and hedging strategy - Management confirmed that their hedging strategy remains consistent, with a focus on maintaining good exposure to Henry Hub despite challenges at Waha [31][34]