Black Stone Minerals LP (BSM)
NYSE:BSM
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Black Stone Minerals
(NYSE:BSM)
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Rating:67Neutral
Price Target:
$14.50
▲(6.07% Upside)
Action:Downgraded
Date:05/09/26
The score is primarily supported by strong underlying profitability, a generally solid balance sheet, and positive operational/guidance commentary with cash-flow coverage supporting the distribution. These strengths are held back by weak near-term technical momentum and a mixed valuation profile (high yield but very high P/E), with commodity volatility and operational uncertainty adding risk.
Positive Factors
High Profitability & Margins
Very high gross and net margins reflect the royalty business model's low operating cost structure, enabling durable profit retention even when top-line swings occur. Sustained strong operating results support ongoing distributions, reinvestment in acreage, and resilience through commodity cycles.
Negative Factors
Commodity-Driven Revenue Volatility
Royalties tie revenues directly to commodity prices and operator activity, so multi-year production dips and price swings materially affect cash flow and funding for acquisitions. Persistent weakness could erode free cash flow and pressure distributions over a 2–6 month to multi-year horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & Margins
Very high gross and net margins reflect the royalty business model's low operating cost structure, enabling durable profit retention even when top-line swings occur. Sustained strong operating results support ongoing distributions, reinvestment in acreage, and resilience through commodity cycles.
Read all positive factors
Black Stone Minerals (BSM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.94B
Dividend Yield9.94%
Average Volume (3M)389.60K
Price to Earnings (P/E)60.5
Beta (1Y)0.23
Revenue Growth54.86%
EPS Growth37.42%
CountryUS
Employees115
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)1.27
Shares Outstanding212,499,330
10 Day Avg. Volume336,401
30 Day Avg. Volume389,602
Financial Highlights & Ratios
PEG Ratio0.83
Price to Book (P/B)2.50
Price to Sales (P/S)6.66
P/FCF Ratio9.43
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue6.65
Enterprise Value/Gross Profit8.52
Enterprise Value/Ebitda6.54
Forecast
1Y Price Target
$14.00Price Target Upside2.41% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.9
Revenue Forecast (FY)$461.90M
Black Stone Minerals Business Overview & Revenue Model
Company Description
Black Stone Minerals, L.P., together with its subsidiaries, owns and manages oil and natural gas mineral interests. It owns mineral interests in approximately 16.8 million gross acres, nonparticipating royalty interests in 1.8 million gross acres,...
How the Company Makes Money
BSM primarily makes money by earning royalties and other production-based payments tied to oil and natural gas volumes produced by third-party operators on acreage where BSM owns mineral and/or royalty interests. Key revenue streams include: (1) R...
Black Stone Minerals Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial performance with a notable quarter-over-quarter production increase (16%), solid cash flow (DCF $76.5M) and continued capital deployment (> $250M since 2023), along with encouraging well results (Congo wells ~30 MMcf/d) and active drilling across multiple basins. Negative elements were primarily short-term and situational: a loss of well control incident at one operator under investigation, significant commodity price volatility that temporarily pressured realizations, and uncertainty about near-term operator responses to pricing. Management maintained 2026 guidance and emphasized confidence in long-term growth, suggesting the positives materially outweigh the near-term headwinds.Positive Updates
Meaningful Quarter-over-Quarter Production Increase
Mineral and royalty production of 35.9 MBoe/d, total production 37.0 MBoe/d, representing a 16% increase in mineral and royalty production versus the prior quarter.
Negative Updates
Loss of Well Control Incident (Revenant)
One of Revenant's wells experienced a loss of well control during the quarter. An investigation is ongoing; outcomes range from salvaging the well to abandonment. The company indicated this could be a short-term 'speed bump' and may impact the first-year development program, though they expect minimal difference over a two-year horizon.
Read all updates
Q1-2026 Updates
Positive
Negative
Meaningful Quarter-over-Quarter Production Increase
Mineral and royalty production of 35.9 MBoe/d, total production 37.0 MBoe/d, representing a 16% increase in mineral and royalty production versus the prior quarter.
Read all positive updates
Company Guidance
Management reiterated the February production guidance and said they view 2026 as a year of production growth versus 2025; in Q1 they reported mineral and royalty production of 35.9 MBoe/d (up 16% sequentially) and total production of 37.0 MBoe/d, net income of $13.3 million, adjusted EBITDA of $87 million, distributable cash flow of $76.5 million (1.2x coverage), and declared a $0.30 quarterly distribution ($1.20 annualized); 54% of oil & gas revenue was from natural gas and NGLs. Commercially, they added $12 million of acreage this quarter bringing Haynesville program deployment since 2023 to more than $250 million, Adamas spud 4 wells and turned online 7 (including Congo wells hitting ~30 MMcf/d), Revenant spud 2 wells (one with a loss-of-well-control under review), there are 13 active rigs across Angelina/Nacogdoches/San Augustine counties, and they are marketing an additional ~300,000 gross mineral acres for Shelby Trough–to–Western Haynesville expansion.Black Stone Minerals Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 468.25M | 422.33M | 439.43M | 501.10M | 784.28M | 505.73M |
| Gross Profit | 365.30M | 316.27M | 334.95M | 387.05M | 657.87M | 381.85M |
| EBITDA | 475.89M | 347.12M | 319.63M | 470.99M | 530.57M | 248.64M |
| Net Income | 297.26M | 299.93M | 271.33M | 422.55M | 476.48M | 181.99M |
Balance Sheet | ||||||
| Total Assets | 1.34B | 1.34B | 1.22B | 1.27B | 1.27B | 1.25B |
| Cash, Cash Equivalents and Short-Term Investments | 11.60M | 1.48M | 2.52M | 70.28M | 4.31M | 8.88M |
| Total Debt | 187.00M | 154.00M | 25.00M | 0.00 | 10.00M | 89.00M |
| Total Liabilities | 264.73M | 207.10M | 89.47M | 49.54M | 61.27M | 184.29M |
| Stockholders Equity | 1.07B | 1.13B | 1.13B | 1.22B | 1.21B | 1.06B |
Cash Flow | ||||||
| Free Cash Flow | 223.27M | 298.41M | 384.83M | 501.44M | 412.42M | 242.25M |
| Operating Cash Flow | 307.89M | 310.17M | 389.04M | 521.25M | 424.98M | 256.88M |
| Investing Cash Flow | -117.20M | -118.27M | -112.24M | -19.74M | -1.22M | -14.32M |
| Financing Cash Flow | -181.51M | -192.93M | -344.57M | -435.54M | -428.34M | -235.48M |
Black Stone Minerals Technical Analysis
Neutral
13.67
Price Trends
14.06
Negative
14.10
Negative
13.25
Positive
Market Momentum
>-0.01
Negative
49.84
Neutral
65.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSM, the sentiment is Neutral. The current price of 13.67 is below the 20-day moving average (MA) of 13.74, below the 50-day MA of 14.06, and above the 200-day MA of 13.25, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.84 is Neutral, neither overbought nor oversold. The STOCH value of 65.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BSM.
Black Stone Minerals Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $2.94B | 60.48 | 26.86% | 9.94% | 54.86% | 37.42% | |
67 Neutral | $8.10B | -2.68 | 2.49% | 4.38% | 27.35% | -66.88% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $3.09B | 16.50 | 15.50% | ― | 52.41% | ― | |
58 Neutral | $4.36B | -2.64 | -6.06% | 5.78% | 18.27% | -67.80% | |
52 Neutral | $2.51B | -1.38 | -29.09% | 8.18% | -6.81% | -197.47% |
* Energy Sector Average
BSM
Black Stone Minerals
13.82
1.48
12.00%
NOG
Northern Oil And Gas
23.75
-1.44
-5.70%
SM
SM Energy
33.77
11.42
51.08%
CRGY
Crescent Energy Company Class A
13.20
5.04
61.73%
BKV
BKV Corporation
28.29
6.28
28.53%
Black Stone Minerals Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Black Stone Minerals Posts Solid Q4 Results, Maintains Payout
Positive
Feb 24, 2026
On February 23, 2026, Black Stone Minerals reported fourth-quarter 2025 mineral and royalty production of 30.9 MBoe/d and total production of 32.1 MBoe/d, alongside quarterly net income of $72.2 million and Adjusted EBITDA of $76.7 million. The Pa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.