Black Stone Minerals, L.P. (NYSE: BSM)

Black Stone Minerals, L. P. is one of the largest owners and managers of oil and natural gas mineral interests in the United States. The partnership concentrates on maximizing the value of its mineral and royalty assets through active management. It markets its mineral acreage for lease and designs lease terms to encourage and accelerate drilling activity by operators. Besides its core mineral and royalty business Black Stone Minerals, L. P. holds non operated working interests on many of its properties. The partnership also evaluates opportunities linked to the energy transition including renewable energy projects and carbon sequestration initiatives. As of September 30 2025 its mineral and royalty interests extended across 41 states and included ownership in roughly 71 000 producing wells. This diversified base enables the generation of stable cash flows that are largely distributed to unitholders.

Black Stone Minerals, L. P. generates revenue primarily from the sale of oil and natural gas produced from its mineral royalty and non operated working interests. Revenue is recognized when control of the hydrocarbons transfers to the customer and collectability of the sales price is reasonably assured. The partnership also earns lease bonus and delay rental payments when operators lease its mineral acreage. These lease related payments vary with the timing and size of individual transactions. In addition Black Stone Minerals, L. P. enters into commodity derivative contracts to manage price volatility and records gains or losses on those instruments as part of its total revenue. The combination of production sales lease income and derivative results creates the partnership’s overall revenue stream. Production volumes are derived from wells located in major onshore basins such as the Permian Basin the Haynesville Shale and the Shelby Trough.

Black Stone Minerals, L. P. holds a leading position among mineral royalty owners in the United States due to its extensive and geographically diversified asset base. The partnership’s interests span 41 states and cover all major onshore producing basins providing a broad exposure to oil and natural gas development. Its non cost bearing mineral and royalty structure means that it does not incur operating expenses on the underlying wells which enhances cash flow stability compared to traditional exploration and production companies. The partnership’s ability to hedge a portion of its future production further supports predictable earnings. Competitors in the mineral royalty space include other publicly traded partnerships and trusts that own similar assets. Black Stone Minerals, L. P. differentiates itself through its active leasing strategy its focus on accelerating drilling and its ongoing evaluation of energy transition opportunities.

The company’s customer base consists principally of exploration and production operators that lease its mineral acreage to drill wells and produce hydrocarbons. These operators range from large integrated energy firms to smaller independent producers active in various shale plays and conventional fields. Once production is established the resulting oil and natural gas is sold to midstream processors refiners and utilities that purchase the commodities for further processing or end use. Black Stone Minerals, L. P. does not disclose the names of individual customers in its filings but indicates that its revenue flows from a diverse set of market participants across the energy value chain. The partnership’s lease bonus income is derived from negotiations with the same operator groups that seek access to its mineral resources.