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- **Acreage Deal Momentum**: Shelby Trough agreement nearing completion, with potential to double drilling rates by 2030.
- **Production Growth**: Q3 Permian oil boost led to 5% Q/Q production rise; 2026 Permian project set to add significant volumes.
- **Distribution Strength**: 1.21x coverage supported $0.30/unit payout, with cash flow funding acquisitions.
- **Gas Market Confidence**: Long-term bullish on natural gas despite near-term Waha challenges, leveraging Henry Hub exposure and LNG demand.

### CEO Summary Section
- **Strategic Updates**: Tom Carter highlighted promotions of key executives and emphasized expansion in the Shelby Trough, including Revenant Energy's upcoming development. Fowler Carter detailed progress on a 220,000-acre agreement, aiming to double annual drilling rates in the Shelby Trough by 2030. Permian projects are expected to add significant oil volumes in the next 12-18 months.
- **Operational Momentum**: The company is finalizing a major acreage deal, with discussions nearing completion, and sees robust interest from operators in the expanded Shelby Trough. Tom Carter underscored the long-term potential of the Haynesville play, with multi-decade inventory and strategic alignment with top operators.

### CFO Financial Commentary
- **Production and Earnings**: Third-quarter production was 34,700 BOE/day, up 5% Q/Q, driven by Permian oil. Net income was $91.7 million, with adjusted EBITDA of $86.3 million. Oil revenue accounted for 57% of total. Distribution coverage was 1.21x, supporting a $0.30/unit payout.
- **Financial Health**: Distributable cash flow of $76.8 million funded acquisitions and maintained financial strength. Taylor DeWalch emphasized confidence in 2026 production growth from Permian and Shelby Trough developments, despite near-term gas differential challenges.

### Q&A Highlights
- **Acreage Progress**: Fowler Carter confirmed a major deal is nearing completion, with potential for operator overcommitments. Tom Carter highlighted the Shelby Trough's geologic potential and alignment with LNG demand.
- **Gas Market Outlook**: Despite Waha differential challenges, the company maintains a long-term bullish view on natural gas, driven by LNG and power demand. Hedging strategies mitigate short-term volatility.

Black Stone Minerals, L.P. Common Units (BSM) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BSM

BSM fundamentals

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