Black Stone Minerals reported its second-quarter 2025 financial and operating results, with mineral and royalty volumes at 33.2 MBoe/d, a decrease from 34.2 MBoe/d in the first quarter of 2025. Total reported production averaged 34.6 MBoe/d, continuing a decline from previous quarters and the second quarter of 2024.
The company announced a significant revision to its 2025 total production guidance, lowering it to a range of 33 MBoe/d to 35 MBoe/d, down from the previously disclosed range of 38 MBoe/d to 41 MBoe/d. This adjustment is due to lower production through the first and second quarters of 2025 and expectations for delayed natural gas production growth for the remainder of the year.
Net income for the second quarter was $120.0 million, a substantial increase from $15.9 million in the preceding quarter, largely driven by a $52.8 million gain on commodity derivative instruments. Adjusted EBITDA for the quarter was $84.2 million, and distributable cash flow was $74.8 million, resulting in a distribution coverage ratio of 1.18x.
Black Stone Minerals continued its acquisition strategy, acquiring $31.2 million in mineral and royalty interests during the quarter, bringing the total to $172.3 million since September 2023. Development activity in the Shelby Trough included Aethon turning to sales 2 gross wells, with 15 additional wells expected to turn to sales in late 2025 and early 2026.
The company highlighted its new development agreement with Revenant Energy, covering approximately 270,000 gross acres, with minimum drilling commitments starting at 6 wells in 2026 and escalating to 25 wells per year. Additionally, Black Stone is marketing an opportunity for another 180,000 gross acres, including acreage released by Aethon, to further diversify its operator base and accelerate development.
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