Black Stone Minerals, L.P. is a Houston, Texas-headquartered mineral and royalty limited partnership (NYSE: BSM) that owns mineral and royalty interests across approximately 16.8 million gross acres in 41 states, with a strategic focus on the Shelby Trough (East Texas/North Louisiana), the Haynesville Shale (East Texas/West Louisiana), and the Permian Basin (West Texas/New Mexico), and the Partnership is managed by Black Stone Minerals GP, L.L.C. with Co-CEOs Taylor DeWalch and Fowler Carter. For the second quarter ended June 30, 2026, the Partnership generated net income of $106.4 million, Adjusted EBITDA of $91.3 million, and distributable cash flow of $80.4 million, with mineral and royalty production of 32.5 MBoe/d (72 percent natural gas, down 9 percent sequentially from 35.9 MBoe/d in Q1 2026, primarily due to lower Haynesville natural gas volumes). The average realized price per Boe (excluding derivatives) increased 7 percent sequentially to $37.82, and the Partnership reported oil and gas revenue of $115.4 million (down 2 percent sequentially) plus a $26.8 million gain on commodity derivatives (driven by a $35.6 million unrealized gain). The Board approved a Q2 2026 distribution of $0.32 per unit ($1.28 annualized, up 7 percent from the prior quarter), with distribution coverage of 1.18x. Total debt was $196.0 million at June 30, 2026 ($168.0 million as of July 31, 2026), with a $580 million borrowing base (maintained at $375 million commitments). The Partnership also made $37.2 million of mineral and royalty acquisitions in Q2 2026 ($48.7 million for H1 2026).
The investment thesis rests on three variables. The Shelby Trough and Haynesville development trajectory is the load-bearing organic growth variable, with Adamas Energy (formerly Aethon) operating two rigs on the Angelina/San Augustine acreage (4 gross/0.4 net wells turned to sales in July, 14 wells spud in the program year ending June 30, 2026, with 8 gross/0.7 net expected to turn to sales in H2 2026, and 17 wells planned for the next program year), and Revenant Energy covering 270,000 gross acres (122,000 net undeveloped) with development commitments converting to lateral-foot targets, and the strategic intent is to convert the development pipeline into sustained mineral and royalty production growth. The distribution growth and coverage discipline is the load-bearing shareholder return variable, with the Q2 2026 distribution of $0.32/unit ($1.28 annualized, up 7 percent quarter-over-quarter) at 1.18x coverage, and the strategic intent is to grow the distribution while maintaining coverage above 1.1x and a conservative balance sheet. The mineral acquisition and development agreement expansion is the load-bearing portfolio growth variable, with $37.2 million of Q2 mineral/royalty acquisitions (bringing H1 to $48.7 million), the Revenant agreement expansion into new development areas, and the strategic intent to continue compounding the mineral/royalty acreage position through accretive acquisitions and development agreement enhancements.