Black Stone Minerals reported its first-quarter 2025 financial results, with mineral and royalty volumes at 34.2 MBoe/d, a decrease from 34.8 MBoe/d in the fourth quarter of 2024. Total reported production averaged 35.5 MBoe/d, continuing a downward trend from the previous quarter and the first quarter of 2024.
The company's net income for the quarter was $15.9 million, a significant drop from $46.3 million in the preceding quarter, primarily impacted by a $56.0 million loss on commodity derivative instruments. Adjusted EBITDA was $82.2 million, and distributable cash flow stood at $73.7 million.
A key concern for investors is the distribution coverage ratio, which dipped to 0.93x for the first quarter, below the 1.0x threshold. Management attributed this lower coverage partly to a one-time $4.0 million expenditure for a seismic license, an investment aimed at bolstering subsurface evaluation and potential mineral acquisitions in the expanded Shelby Trough area.
Despite the lower coverage, the company maintained its cash distribution at $0.375 per common unit. Black Stone Minerals continued its acquisition strategy, adding $14.2 million in mineral and royalty interests during the quarter, bringing the total to $160.6 million since September 2023.
Development activity included Aethon turning to sales 11 gross wells in the Shelby Trough during Q1 2025, with 17 additional wells expected to turn to sales later in the year. In the Permian Basin, 24 of over 35 planned wells in Culberson County, Texas, have been spud, with nine expected to turn to sales in Q4 2025.
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