Black Stone Minerals (BSM) investor relations material

Executive summary

• Mineral and royalty production rose 16% sequentially to 35.9 MBoe/d in Q1 2026, driven by increased natural gas activity in Louisiana Haynesville and Shelby Trough, and strong oil output in the Permian.

• Net income for Q1 2026 was $13.3 million, with adjusted EBITDA of $87.0 million and distributable cash flow of $76.5 million.

• Distribution of $0.30 per unit declared for Q1 2026, with a coverage ratio of 1.20x.

• Management maintained 2026 production guidance and expects growth compared to 2025, supported by robust leasing and development activity.

• Revenue for Q1 2026 was $59.4 million, nearly flat year-over-year, as higher oil and gas sales were offset by increased derivative losses and lower lease bonus income.

Financial highlights

• Oil and gas revenue reached $117.5 million, up 30% sequentially and 8% year-over-year.

• Total production averaged 35.9 MBoe/d, up 16% from the prior quarter.

• Loss on commodity derivatives increased to $64.6 million, including $52.3 million unrealized loss.

• Lease bonus and other income was $6.4 million, down 7.8% year-over-year.

• Operating expenses decreased in lease operating and production costs, but G&A expenses rose 10.9%.

Outlook and guidance

• Management expects meaningful production growth through 2026 and beyond, supported by increased activity in Haynesville, Bossier, and Permian regions.

• Development agreements in place are expected to drive well spuds and completions through 2026 and into 2031.

• Management remains confident in delivering sustainable long-term value for unitholders.

• Management expects continued volatility in oil and gas prices due to geopolitical events and supply-demand dynamics.

• The company plans to continue targeted mineral and royalty acquisitions and maintain a disciplined approach to capital allocation.