Black Stone Minerals Reports 43.8% Revenue Decline in Q1 2025

Black Stone Minerals, L.P. reported a significant decline in financial performance for the first quarter of 2025 compared to the same period in 2024. Total revenue decreased to $59.3 million, down 43.8% from $105.5 million in the prior year. This decline was primarily driven by a substantial loss on commodity derivative instruments, which amounted to $56 million, compared to a loss of $11.3 million in the previous year. Oil and condensate sales also fell by 29.7% to $50.1 million, while natural gas and natural gas liquids sales increased by 38.6% to $58.2 million, reflecting a shift in revenue sources.

The company’s net income for the quarter was $15.9 million, a decrease of 75% from $63.9 million in the first quarter of 2024. Net income attributable to common units was $8.6 million, translating to earnings of $0.04 per common unit, down from $0.27 per unit in the prior year. The decrease in profitability was attributed to lower production volumes and realized commodity prices, particularly in the Permian Basin, which impacted oil and condensate sales.

In terms of operational developments, Black Stone Minerals continued to expand its asset base through strategic acquisitions. During the first quarter, the company acquired mineral and royalty interests primarily in the Gulf Coast region for $14.2 million, funded through a combination of cash and equity. The company also engaged in asset exchanges to consolidate its acreage position in East Texas, acquiring approximately 2,900 net leasehold acres while relinquishing some undeveloped mineral interests.

The company’s financial position showed a notable increase in liabilities, with total liabilities rising to $173.9 million from $89.5 million at the end of 2024. This increase was largely due to higher borrowings under its credit facility, which rose to $63 million from $25 million. Despite these changes, Black Stone Minerals maintained compliance with all financial covenants associated with its credit facility. The company reported cash flows from operating activities of $64.8 million, a decrease from $104.5 million in the previous year, reflecting the impact of lower oil and condensate sales.

Looking ahead, Black Stone Minerals remains focused on maximizing the value of its mineral and royalty assets while exploring opportunities in renewable energy and carbon sequestration. The company anticipates continued development activity in its key regions, including the Shelby Trough and Haynesville, with several wells expected to come online later in 2025. However, the company acknowledges the ongoing volatility in commodity prices and market conditions, which may impact future revenues and operational results.