Black Stone Minerals, L.P. reported fourth‑quarter 2025 results that exceeded expectations, delivering a net income of $72.2 million and earnings per unit of $0.31. The company beat consensus estimates of $0.27, a $0.04 or 15% upside, while total revenue of $118.7 million surpassed the $104 million consensus by $14.7 million, a 14% beat. Compared with the $102.3 million revenue reported in Q4 2024, the company posted a 16% year‑over‑year increase, driven largely by higher realized natural‑gas prices.
Oil and gas revenue fell 5% to $90.5 million, reflecting a modest decline in oil and condensate sales, while natural‑gas and NGL revenue rose 16.3% to $28.2 million, offsetting the oil decline and contributing to the overall revenue beat. The mix shift toward higher‑margin natural‑gas products helped maintain profitability despite the oil downturn.
Production in the quarter averaged 30.9 MBoe/d of mineral and royalty output and 32.1 MBoe/d of total production, a slight decline from the 34.8 MBoe/d and 36.1 MBoe/d reported in Q4 2024. Management guided for 2026 mineral and royalty production of 32.5‑34.5 MBoe/d and total production of 33‑36 MBoe/d, indicating a gradual ramp‑up as new development agreements in the Shelby Trough and Haynesville mature.
The partnership maintained its quarterly distribution of $0.30 per unit, with a coverage ratio of 1.05×. Debt stood at $154 million against a $580 million borrowing base, leaving ample liquidity to support ongoing acquisitions and development spending.
Since September 2023, BSM has deployed $239.5 million in acquisitions, securing 490,000 gross acres under development agreements. “We signed multiple development agreements covering 490,000 gross acres and have deployed $239.5 million through our acquisition program since September 2023 to build the Haynesville expansion asset, which extends…,” said a company spokesperson. “2026 is anticipated to be just the beginning of new activity in the Shelby Trough. We expect significant increases in natural gas production and distributions to Black Stone Minerals, L.P. unitholders over the coming years.”
Market reaction was mixed. After the earnings call, the partnership’s unit price rose 2.14 % in after‑hours trading, but the price fell 0.4 % in pre‑market and closed 0.5 % lower on Monday. Analysts highlighted the earnings and revenue beat as evidence of strong execution, while concerns about the high dividend payout ratio, sequential production decline, and the modest 2026 guidance tempered enthusiasm.
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