Black Stone Minerals, L.P. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income for the quarter was $52.4 million, a decrease from $106.4 million in the second quarter of 2026 and $91.7 million in the third quarter of 2025.
• Adjusted EBITDA totaled $104.1 million, up from $91.3 million in the second quarter of 2026 and $88.1 million in the third quarter of 2025.
• Distributable cash flow was $93.0 million, an increase from $80.4 million in the second quarter of 2026 and $78.6 million in the third quarter of 2025.
• Oil and gas revenue was $122.7 million, a 6% increase from $115.4 million in the second quarter of 2026 and up from $100.2 million in the third quarter of 2025.
• Total revenue (including derivative settlements) was $99.7 million, compared to $132.5 million in the third quarter of 2025.
• The Partnership reported a loss on commodity derivative instruments of $30.2 million for the quarter, including a $29.8 million non-cash unrealized loss, compared to a $27.3 million gain in the third quarter of 2025.
• Average realized price per Boe, excluding derivatives, was $37.44, a 1% decrease from the second quarter of 2026 ($37.82) and a 25% increase from the third quarter of 2025 ($30.01).
• Lease bonus and other income was $7.2 million, up from $6.7 million in the second quarter of 2026 and $5.0 million in the third quarter of 2025.
• Total debt was $195.0 million as of September 30, 2026, and $197.0 million as of October 30, 2026.
• Cash on hand was $5.5 million as of September 30, 2026, and $5.4 million as of October 30, 2026.
• The borrowing base under the credit facility was reaffirmed at $580.0 million with total commitments maintained at $375.0 million.

Guidance and Future Outlook:

• Management anticipates continued growth in natural gas demand driven by LNG exports and power generation, positioning the company to supply necessary drilling inventory.
• Development activity under the Caturus agreement in the expanded Shelby Trough is expected to ramp over time, with the first additional area targeting a pilot well by Q1 2028 and a ramp to approximately 12 gross wells annually by 2034.
• The second additional Caturus area, if elected, targets a pilot well by end of 2031 and a ramp to approximately 12 gross wells annually by 2038.
• Revenant Energy is expected to meet its 2026 drilling commitment of 4 wells, with production from remaining wells expected in mid-2027.
• Adamas Energy is on track to complete 4 gross wells turning to sales in Q4 2026, with the remaining well under evaluation.
• Blue Arrow Operating expects remaining wells in the southern Delaware Basin to come online in Q4 2026 and the first half of 2027.

Business Segments and Product Lines:

• Mineral and royalty production averaged 34.5 MBoe/d, a 6% increase from the prior quarter, with total production including working interest at 35.6 MBoe/d.
• Production mix was 73% natural gas and 27% oil and condensate.
• Working-interest production averaged 1.1 MBoe/d for the quarter.
• The Caturus development agreement was amended and restated in October 2026, expanding the contract area by 730,000 gross acres to a total of 950,000 gross acres.
• The Revenant agreement was amended in September 2026, increasing the 2027 drilling commitment by 7,000 gross lateral feet and extending the second AOI requirement to 2029.
• Adamas Energy operated two rigs on Angelina and San Augustine acreage, turning 7 gross wells to sales during the quarter.
• Revenant Energy operated one rig, drilling 2 wells expected to turn to sales by year-end and spudding 2 additional wells in early October 2026.
• Caturus drilled a pilot well in Cherokee County in Q3 2026 and spud its first 2 development wells in October 2026.

Market and Competitive Landscape:

• The company focuses on the expanded Shelby Trough, contiguous to legacy assets, to assemble large, high-interest mineral positions.
• The company believes it is well-positioned to meet anticipated growth in natural gas demand through its inventory in the Shelby Trough and Western Haynesville.
• The company continues to acquire bolt-on acreage in multiple contractual development programs across San Augustine, Nacogdoches, Angelina, Cherokee, Houston, and Trinity counties.

Risks and Challenges:

• Risks include volatility in realized oil and natural gas prices, the level of production on properties, and overall supply and demand factors.
• Potential challenges involve delays or interruptions of production, conservation measures, and environmental concerns regarding fossil fuels.
• Risks include the ability to replace reserves, general economic conditions, and volatility in capital markets.
• Operational risks include cybersecurity incidents, competition, availability of rigs and equipment, and the level of drilling activity by operators.

Management Commentary and Tone:

• Co-CEO Taylor DeWalch expressed pleasure with the strong quarter, citing increased development activity, higher oil production, and revenue.
• Management highlighted the strength of the current portfolio and continued execution of a long-term growth strategy.
• Co-CEO Fowler Carter emphasized the meaningful expansion of the Caturus program and the growing development opportunity across the position.
• Management stated the strategy of assembling large mineral positions and placing them into structured development programs positions the company well for future natural gas demand.

Other Key Points:

• The Board approved a cash distribution of $0.35 per common unit for the third quarter of 2026, a 9% increase from the prior quarter and 17% from the first quarter of 2026.
• Distribution coverage was 1.25x for the quarter.
• The distribution is payable on November 13, 2026, to unitholders of record as of November 6, 2026.
• In Q3 2026, the Partnership acquired $14.6 million of additional mineral and royalty interests.
• In October 2026, the Partnership acquired additional mineral and royalty interests and surface rights for $30.6 million in cash and $2.1 million in common units.
• From September 2023 through October 2026, the Partnership completed $335.5 million of acquisitions.
• The Partnership maintains commodity derivative contracts covering portions of anticipated production for 2026, 2027, and 2028, with oil swap prices ranging from $64.39 to $71.59 and natural gas swap prices ranging from $3.70 to $3.84 per MMbtu.