Recent developments highlight ongoing drilling and development activities under multi-year agreements in the Shelby Trough and Permian Basin, strategic acquisitions to expand acreage, and quarterly financial results reflecting commodity price impacts.

• Black Stone Minerals reported third quarter 2026 results and expanded Shelby Trough development agreements, including amendments increasing drilling commitments and acreage with operators such as Caturus Energy and Revenant Energy [N1].
• Adamas Energy operated rigs on Shelby Trough acreage, turning to sales 7 gross (0.7 net) wells in Q3 2026, with additional wells spud and expected to turn to sales per development agreements [N1].
• Revenant Energy operated one rig with drilling activity meeting 2026 commitments and amendments increasing 2027 drilling lateral-foot commitments, with wells expected to turn to sales in mid-2027 [N1].
• Caturus Energy expanded its development agreement acreage to 950,000 gross acres with incremental drilling commitments across multiple Texas counties, including pilot wells and multi-year ramp-up plans [N1].
• In the Permian Basin, Blue Arrow Operating progressed a 25 gross (1.9 net) well development in the southern Delaware Basin, with wells turned to sales and others expected online in late 2026 and early 2027 [N1].
• The company acquired $14.6 million of mineral and royalty interests in Q3 2026 and additional interests and surface rights in October 2026 for $32.7 million, primarily in the Shelby Trough area to support development agreements [N1].
• Commodity prices showed increased oil prices in early 2026 due to geopolitical factors and lower natural gas prices later in the year due to production growth and infrastructure expansion [N1].
• Liquidity as of September 30, 2026 included $5.49 million in cash and equivalents, current assets of $90.63 million, current liabilities of $51.01 million, with a current ratio of 1.78 and cash ratio of 0.11 [S2].

The company benefits from a broad and diversified asset base with significant mineral and royalty interests in prolific U.S. basins, supported by multi-year development agreements that encourage drilling activity. Strategic acquisitions in growth areas like the Shelby Trough expand its footprint and potential revenue. Its non-cost-bearing interests provide stable cash flow with limited operational risk. Hedging programs partially mitigate commodity price volatility, supporting financial stability. The company's active portfolio management and focus on maximizing value through leasing and development agreements underpin its operational resilience.

Black Stone Minerals' financial performance is sensitive to commodity price fluctuations and drilling activity levels by third-party operators, which are outside its direct control. Regulatory and environmental risks, including restrictions on hydraulic fracturing and permitting, could impact development activity. Operational hazards faced by operators and potential title defects in properties pose risks. The company's reliance on derivative instruments to hedge commodity prices introduces counterparty risk and may limit upside in favorable price environments. Acquisition integration and capital deployment risks also exist.

Black Stone Minerals' moat derives from its large, diversified portfolio of mineral and royalty interests across key U.S. producing basins, providing stable, non-cost-bearing revenue streams. Its extensive acreage and long-term development agreements with operators create barriers to entry and support sustained drilling activity. The company's active management of leasing and development agreements, combined with strategic acquisitions, enhances its asset base and potential cash flow. Additionally, its use of commodity price hedging instruments helps mitigate volatility risks, supporting distribution stability.

• Commodity Price Volatility: Fluctuations in oil and natural gas prices significantly affect revenue and cash flow, despite hedging programs.
• Operator Drilling Activity: Drilling and development depend on third-party operators' capital availability and operational decisions, impacting production volumes.
• Regulatory and Environmental Risks: Legislative and regulatory changes, including restrictions on hydraulic fracturing and permitting delays, may affect development and production.
• Operational Hazards: Risks related to production interruptions, equipment failures, and other hazards faced by operators can impact revenue.
• Title Defects: Potential defects in property titles could affect ownership rights and revenue streams.

• Black Stone Minerals, L.P. is one of the largest owners and managers of oil and natural gas mineral interests in the United States, with mineral and royalty interests located in 41 states including all major onshore producing basins [S1][S2].
• The company owns non-cost-bearing interests in approximately 71,000 producing wells and also holds non-operated working interests, many overlapping with mineral and royalty interests [S1][S2].
• Revenue is primarily derived from oil and natural gas production from mineral and royalty interests and non-operated working interests, recognized when control transfers to customers. Additional revenue sources include mineral lease bonuses and delay rentals recognized per lease terms [S1][S2].
• Black Stone Minerals actively manages its portfolio to maximize value through leasing and structuring lease terms to encourage drilling activity [S2].
• The company has multiple development agreements in the Shelby Trough area with operators such as Adamas Energy, Revenant Energy, and Caturus Energy, involving multi-year drilling commitments measured in wells and lateral feet, with recent amendments expanding acreage and development commitments [S1][S2][N1].
• In the Permian Basin, development activity includes a 25 gross (1.9 net) well program by Blue Arrow Operating in the southern Delaware Basin, with wells turned to sales and others expected to come online [S2].
• From September 2023 through October 2026, Black Stone Minerals completed approximately $335.5 million in acquisitions, primarily mineral and royalty interests in the Shelby Trough area, including surface rights to secure drilling locations [S2].
• Commodity prices have been volatile; oil prices increased in the first nine months of 2026 due to geopolitical factors, while natural gas prices declined relative to 2025 due to production growth and pipeline infrastructure [S2].
• The company uses derivative instruments such as fixed-price swap contracts and costless collars to partially mitigate commodity price volatility, with hedging limits defined by production volumes and contract terms [S1][S2].
• Operational metrics monitored include production volumes, commodity prices, Adjusted EBITDA, and Distributable Cash Flow, with Adjusted EBITDA and Distributable Cash Flow defined as non-GAAP measures excluding certain costs and adjusted for non-cash items [S1][S2].
• For the quarter ended September 30, 2026, Black Stone Minerals reported cash and equivalents of $5.49 million, current assets of $90.63 million, current liabilities of $51.01 million, resulting in a current ratio of 1.78 and a cash ratio of 0.11 [S2].
• Revenue for the quarter ended September 30, 2026 was approximately $99.7 million [S2].
• Net income reported for the year ended December 31, 2025 was approximately $299.9 million [S1].
• The company faces risks including commodity price volatility, drilling activity levels by operators, regulatory and environmental factors, and operational hazards faced by operators [S1][S2].