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…
Earnings analysis · 10-Q
BSM earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.47
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.