Black Stone Minerals 2025 Q2 Earnings Strong Performance as Net Income Surges 76%

Black Stone Minerals (BSM) reported its fiscal 2025 Q2 earnings on Aug 5th, 2025. The company exceeded expectations with a 75.7% year-over-year increase in net income and a 45.5% surge in total revenue. However, it revised its 2025 production guidance lower due to delayed natural gas activity and near-term production challenges.

Revenue

Black Stone Minerals achieved a total revenue of $159.49 million for 2025 Q2, a 45.5% increase from $109.62 million in the same period the prior year. This growth was driven across multiple revenue streams: Oil and condensate sales generated $55.81 million, while natural gas and natural gas liquids sales contributed $46.19 million. Additional income sources included lease bonuses and other revenue amounting to $4.71 million. The most significant contributor to the overall revenue increase was the gain on commodity derivative instruments, which totaled $52.78 million for the quarter.

Earnings/Net Income

Black Stone Minerals reported a net income of $120.03 million in 2025 Q2, representing a 75.7% increase from $68.32 million in 2024 Q2. The company’s earnings per share (EPS) rose 82.8% to $0.53 per share in 2025 Q2 from $0.29 in the prior year period, marking a strong earnings performance.

Price Action

The stock price of Black Stone Minerals edged down 0.70% during the latest trading day but showed a 1.35% gain for the most recent full trading week. Over the month-to-date period, the stock dropped 3.26%, indicating mixed short-term performance in the market.

Post Earnings Price Action Review

A strategy of buying Black Stone Minerals shares when earnings beat expectations and selling after 30 days yielded a 26.24% return, significantly outperforming a 0.00% benchmark return. The strategy's excess return of 26.24% demonstrates robust performance. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.45, the strategy also exhibited strong risk-adjusted returns, effectively managing potential losses while generating above-average returns.

CEO Commentary

Thomas L. Carter, Jr., Black Stone Minerals’ Chairman, CEO, and President, emphasized continued subsurface evaluation in the Shelby Trough and a new partnership with Revenant Energy covering 270,000 gross acres. He noted that while near-term production is subdued due to delayed natural gas activity, the company is confident in long-term growth, including production growth in 2026 and distributions surpassing previous highs within six years. The CEO reiterated a disciplined approach to capital management and a focus on mineral acquisitions and development agreements to enhance unitholder value.

Guidance

Black Stone Minerals revised its 2025 production guidance downward, now expecting an average production range of 33 to 35 MBoe/d, down from the previously announced 38 to 41 MBoe/d. The adjustment reflects lower production through the first half of 2025 and the expectation of delayed natural gas activity impacting the remainder of the year.

Additional News

Black Stone Minerals recently secured a new development agreement with Revenant Energy covering 270,000 gross acres across San Augustine, Nacogdoches, Angelina, Houston, and Trinity counties. The agreement obligates Revenant to drill a minimum of 6 wells in 2026, increasing to 25 wells annually over five years. Additionally, the company is marketing an 180,000 gross acre development opportunity. In the second quarter, Black Stone acquired $31.2 million of additional mineral and royalty interests, continuing its strategy of targeted acquisitions. The company also reaffirmed its $580 million borrowing base and remains in compliance with all credit facility covenants.