Black Stone Minerals’ first quarter results prompted a negative market response, as the company’s revenue missed Wall Street expectations despite steady production growth. Management cited increased natural gas activity in the Louisiana Haynesville and Shelby Trough, combined with robust oil output from the Permian, as key drivers behind the flat year-over-year sales. The quarter was also marked by commodity price volatility, with natural gas prices impacted by severe winter weather and oil prices fluctuating due to geopolitical factors. CFO Chris Bonner noted, “We are actively managing our hedge position as part of our broader risk management approach and monitoring pricing and operator activity across the portfolio.”
Is now the time to buy BSM? Find out in our full research report (it’s free for active Edge members).
Black Stone Minerals (BSM) Q1 CY2026 Highlights:
- Revenue: $59.36 million vs analyst estimates of $98.18 million (flat year on year, 39.5% miss)
- Adjusted EPS: $0.28 vs analyst estimates of $0.23 (20% beat)
- Adjusted EBITDA: $86.98 million vs analyst estimates of $68.71 million (147% margin, 26.6% beat)
- Operating Margin: 28%, in line with the same quarter last year
- Oil production: up 9.6% year on year
- Market Capitalization: $2.82 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Black Stone Minerals’s Q1 Earnings Call
- Timothy Rezvan (KeyBanc Capital Markets) asked for detail on the well control incident and its potential impact; Co-CEO Fowler Carter explained that investigations are ongoing and the outcome is still uncertain.
- Timothy Rezvan (KeyBanc Capital Markets) followed up on whether the incident changes 2026 production outlook; Carter responded that while it could be a short-term speed bump, management’s enthusiasm and long-term outlook remain unchanged.
- Derrick Whitfield (Texas Capital) questioned whether the incident was isolated or indicative of broader risk; Co-CEO Taylor DeWalch clarified that the affected area is surrounded by delineated development and the issue appears isolated.
- Derrick Whitfield (Texas Capital) asked about changes in operator behavior following ownership changes at Aethon and Adamas; DeWalch noted that contractual commitments remain in place and that growth beyond those commitments is still under discussion.
- Derrick Whitfield (Texas Capital) inquired about midstream infrastructure adequacy for future expansion; DeWalch acknowledged that while current infrastructure is sufficient, additional projects are likely needed as regional production grows.
Catalysts in Upcoming Quarters
Going forward, the StockStory team will be monitoring (1) new development agreements and operator activity in the Haynesville and Shelby Trough, (2) progress on infrastructure enhancements to support increased production and egress, and (3) updates on the resolution of the well control incident and its impact on future production cadence. Additionally, we will track how commodity price swings and demand trends—especially related to LNG exports and data center power needs—shape management’s outlook and capital allocation decisions.
Black Stone Minerals currently trades at $13.23, down from $14.24 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
Our Favorite Stocks Right Now
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
