Black Stone (BSM) Q2 EPS Jumps 83%
Black Stone Minerals (NYSE:BSM), a major owner of mineral and royalty interests across the United States, released its results on August 4, 2025. The most significant news: Black Stone Minerals reported GAAP revenue that far exceeded Wall Street expectations, thanks to a substantial $52.8 million gain on commodity derivatives, which included a large non-cash, unrealized mark-to-market item. Despite this top-line outperformance—GAAP revenue reached $159.5 million, above the $106.70 million analyst consensus (GAAP)—the actual underlying business faced ongoing headwinds. Production volumes, oil and gas sales revenue, and distributable cash flow all declined year-over-year; distributable cash flow is a non-GAAP metric, prompting management to cut distribution and lower forward production guidance. The quarter displayed headline gains masking operational softness, with management focused on future growth opportunities rather than current performance.
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Black Stone Minerals owns rights to produce oil and gas from approximately 16.8 million acres as of December 31, 2024, making money primarily by collecting royalties from producers on these lands. These interests generate revenue without taking on the costs or risks of drilling and production. The portfolio spans over 71,000 producing wells, diversified across major basins including the Permian, Eagle Ford, and Haynesville, which helps reduce exposure to regional risks.
Source Fool.com
