BSM - Black Stone Minerals, L.P.

Black Stone Minerals, L.P. is one of the largest owners of oil and natural gas mineral rights in the United States, with interests across approximately 20 states concentrated in the Permian Basin, Haynesville Shale, and Eagle Ford. The business model is a royalty and non-participating royalty interest (NPRI) structure, where BSM leases its mineral rights to exploration and production companies and collects royalty payments based on production volumes without bearing drilling or operating costs. Annual revenue is approximately $400–500M, derived almost entirely from domestic U.S. onshore hydrocarbon production. BSM operates as a publicly traded master limited partnership (MLP), distributing cash flow to unitholders rather than retaining earnings for reinvestment.

Past Year Trends

• Adjusted EBITDA declined 11.5% YoY from $380.9 million in FY2024 to $337.4 million in FY2025, driven by lower realized commodity prices and a 9% drop in royalty production from 36.6 MBoe/d to 33.3 MBoe/d. (Bearish)
• BSM completed $110.4 million in mineral and royalty acquisitions during FY2024, including an asset swap receiving ~8,000 net acres in East Texas in exchange for ~51,000 undeveloped net mineral and royalty acres in Mississippi, rebalancing its portfolio toward higher-activity Haynesville-adjacent acreage. (Neutral)
• Total debt on the credit facility increased from $25 million at year-end 2024 to $154 million at year-end 2025, raising borrowing base utilization from 4.3% to 26.6% as BSM funded acquisitions and distributions amid compressed cash flows. (Bearish)

Next Year Trends

• The December 2025 Caturus Energy development agreement covering 220,000 gross acres in the Shelby Trough/Haynesville Expansion is expected to ramp drilling from approximately 2 wells in 2026 to approximately 12 wells annually by year six, providing a multi-year production growth runway on BSM's royalty acreage. (Bullish)
• BSM faces continued production pressure from anticipated slowdowns in its Bakken/Three Forks, Eagle Ford, and Austin Chalk working interest acreage, which could partially offset Haynesville-driven royalty growth and keep total volumes below the 36.6 MBoe/d peak seen in FY2024. (Bearish)
• The Revenant Energy partnership signed in May 2025, covering 270,000 gross acres (95,000 net) in the Shelby Trough, is expected to begin contributing near-term well activity in 2026, adding incremental royalty volumes without capital outlay from BSM under the mineral rights structure. (Bullish)

Red Flags

No severe red flags identified as of August 2025.