BSM earnings analysis
What we found in BSM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Black Stone Minerals posted a strong underlying operating quarter, with customer revenue up 14.4% to $122.1 million and Q2 EPS of $0.47, but reported revenue declined 6.6% to $149.0 million as derivative gains were lower than the prior year. Derived operating margin was approximately 74.1%, down from approximately 76.9% a year earlier, while net income declined 11.4% to $106.4 million. First-half operating cash flow increased to $155.5 million, though $52.8 million of investing outflows—principally $48.7 million of mineral acquisitions—absorbed a meaningful portion of cash generation; the filing does not report a formal free-cash-flow metric or numeric financial guidance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Underlying customer revenue and oil sales rose
- Revenue from contracts with customers rose 14.4% year over year to $122.1 million, led by a 34.7% increase in oil and condensate sales to $75.2 million as realized oil prices increased to $87.08 per barrel from $64.67.
- Revenue and EPS exceeded consensus
- Reported Q2 revenue was $149.0 million and diluted EPS was $0.47, above consensus estimates of $104.3 million and $0.23, respectively.
- First-half operating cash flow increased
- Operating cash flow increased $10.2 million, or 7.0%, year over year to $155.5 million for the first six months of 2026, driven primarily by higher realized oil prices and oil volumes.
- Adjusted EBITDA and distributable cash flow grew
- Adjusted EBITDA increased 6.8% to $91.3 million and distributable cash flow rose 5.6% to $80.4 million in Q2 2026.
- Targeted mineral acquisition activity continued
- The partnership acquired $48.7 million of primarily unproved East Texas mineral and royalty interests in the first half, including $37.2 million acquired during Q2, supporting its Shelby Trough position.
- Operator refunds reduced production costs
- Production costs and ad valorem taxes fell 32.3% to $6.1 million in Q2, primarily reflecting $4.2 million of operator refunds associated with deduction-free lease terms.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Derivative outcomes remain a major earnings swing factor
- Reported total revenue declined 6.6% year over year to $149.0 million because commodity-derivative gains fell 49.1% to $26.9 million. Q2 included $8.8 million of realized derivative losses despite $35.6 million of unrealized gains.
- Natural-gas volumes declined year over year
- Total equivalent production declined 3.0% to 3.052 million Boe, with natural-gas production down 4.2% to 13.133 Bcf; management attributed the volume decline principally to lower Haynesville/Bossier royalty volumes.
- Revenant development commitment was reduced
- Revenant's first program-year commitment was reduced from 6 wells to 4 wells following an April 2026 well-control incident, and approximately 40,000 gross acres were released from the development program.
- Higher borrowings increased interest burden
- Interest expense rose 68.1% to $3.8 million in Q2 as average Credit Facility borrowings increased. Average first-half borrowings were $190.3 million at a 6.58% weighted-average interest rate.
- No formal risk-factor update; commodity exposure persists
- The 10-Q reports no material risk-factor changes from the 2025 Form 10-K, but commodity sensitivity remains material: a $0.10/MMBtu Henry Hub move changes natural-gas derivative fair value by approximately $5.5 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.47
- Gross margin
- 100.0%
- Operating margin
- 74.1%
What they said about what is next.
The 10-Q provides no quantitative financial guidance. Operational outlook includes Adamas expecting to drill 17 wells in the program year that began in July 2026, with 8 wells expected to turn to sales during the remainder of 2026; Caturus activity is expected to begin with approximately 2 gross wells in 2H26.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 5, 2026
- Black Stone Minerals reported disappointing Q1 2026 results, with revenue of $59.4 million and EPS of $0.03, significantly missing estimates of $102.1 million and $0.23 respectively. While total revenue increased by…
- 10-Q · November 4, 2025
- Black Stone reported Q3 revenue of $132,470,000 and diluted net income per common unit of $0.40. Operating income rose to $94,100,000 while net income was essentially flat year-over-year; liquidity improved with cash,…
- 10-Q · May 6, 2025
- Black Stone Minerals reported a sharp quarter driven by a large mark-to-market derivative loss: total revenue fell to $59.252M in Q1 2025 vs $105.493M in Q1 2024, and diluted EPS declined to $0.04 from $0.27. Operating…
- 10-Q · May 7, 2024
- BSM reported Q1 2024 revenue of $105.493M and diluted EPS of $0.27, with operating income of $63.974M (operating margin ~60.7%). Revenue and EPS both declined materially versus Q1 2023, while operating cash flow…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing BSM makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever