Black Stone Minerals, L.P. (BSM) Stock Price & How to Invest
Short answer
You can invest in Black Stone Minerals (BSM) by buying units or fractional units at any major broker, through an ETF that holds it, or as one holding in a thematic basket. Black Stone is one of the largest owners of oil and gas mineral and royalty interests in the United States, holding rights across millions of gross acres in dozens of states, and it earns royalty income when operators produce oil and gas on that acreage without bearing the cost of drilling. The appeal is a high cash payout (a recent yield around 8 to 9 percent) backed by a long-lived, mostly natural-gas asset base. Note that BSM is a limited partnership, not a corporation: it pays distributions rather than dividends and issues a Schedule K-1 tax form instead of a 1099, and its income swings with oil and gas prices.
BSM stock price
As of 2026-06-26, Black Stone Minerals, L.P. (BSM) last closed at $14.10, up 8.0% over the past year. Over the past 52 weeks it has traded between $11.92 and $15.44.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Black Stone Minerals, L.P.'s investor relations page. Walnut is informational, not investment advice.
What does Black Stone Minerals, L.P. (BSM) do?
Black Stone Minerals owns mineral and royalty interests rather than operating wells itself. When oil and gas operators drill and produce on Black Stone's acreage, the partnership collects a royalty (a share of revenue off the top) without paying for the rigs, completion work, or ongoing operating expenses. That structure means very little capital spending of its own, low overhead relative to revenue, and cash flow that converts largely into distributions to unitholders. Its asset base is long-lived and gas-weighted: reserves are roughly 70 percent natural gas and around 88 percent proved developed producing, and it holds mineral interests across roughly 16.9 million gross acres plus additional royalty interests, spanning dozens of states.
Black Stone has been a public partnership on the NYSE since 2015 and is regarded as one of the largest mineral and royalty owners in the country, with a market value around $3 billion in 2026. For full year 2025 it reported net income of about $299.9 million, Adjusted EBITDA of roughly $337.4 million, and distributable cash flow near $300 million, paying total distributions of $1.28 per common unit for the year. The payout settled at $0.30 per unit per quarter heading into 2026, and first-quarter 2026 production jumped 16 percent to 35.9 MBoe/d for mineral and royalty volumes, with distribution coverage improving to 1.20x.
What's driving Black Stone Minerals, L.P. (BSM)?
1. Capital-light royalty model.
Black Stone earns a share of production revenue without funding drilling, completions, or field operations, so it carries minimal capital spending of its own. That lets it convert a high portion of revenue into distributable cash flow, about $300 million in 2025 against net income near $299.9 million. The trade-off is that growth depends on operators choosing to drill on its acreage.
2. Production inflection into 2026.
After a softer 2025, mineral and royalty production rose 16 percent quarter over quarter to 35.9 MBoe/d in Q1 2026, with total volumes of 37.0 MBoe/d. Distributable cash flow recovered to $76.5 million and coverage rose to 1.20x. Management guided 2026 to total production of 33 to 36 MBoe/d, signaling rising activity on its Shelby Trough and other acreage.
3. Gas-weighted, long-lived reserves.
Reserves are roughly 70 percent natural gas and around 88 percent proved developed producing, a long-lived base spread across roughly 16.9 million gross acres in dozens of states. The heavy gas tilt ties results closely to natural gas prices, which can be more volatile than oil, but also positions the partnership for any sustained demand growth such as LNG exports and power generation.
4. High distribution backed by coverage.
Black Stone targets a sustainable payout and held its distribution at $0.30 per unit through late 2025 and into 2026, a recent yield around 8 to 9 percent. Coverage for all units was 1.05x in Q4 2025 and improved to 1.20x in Q1 2026, meaning distributable cash flow exceeded the payout, which gives some cushion if prices soften.
What are the risks to Black Stone Minerals, L.P. (BSM)?
Royalty income rises and falls with oil and especially natural gas prices, so revenue and distributions can swing sharply when commodity prices drop. The distribution is not fixed: the partnership has cut it before (the quarterly rate stepped down from $0.375 to $0.30 during 2025), and a sustained price slump or weak coverage could force another reduction. Mineral interests deplete over time, and Black Stone does not control whether or how fast operators drill on its acreage, so production can stall if activity slows. As a limited partnership it issues a Schedule K-1, which adds tax complexity and can create unrelated business taxable income (UBTI) issues if held in a retirement account. Interest rates and energy-sector sentiment also affect how income-oriented units like these are priced.
How is Black Stone Minerals, L.P. (BSM) valued? (approximate, FY2025 results and Q1 2026 results)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Black Stone Minerals, L.P.'s investor relations page or your broker.
- Net income (FY2025): ~$299.9 million
- Adjusted EBITDA (FY2025): ~$337.4 million
- Distributable cash flow (FY2025): ~$300 million
- Distributions (FY2025): $1.28 per common unit
- Quarterly distribution (recent): $0.30 per unit
- Distribution yield (approx.): ~8 to 9 percent
- Distribution coverage (Q1 2026): 1.20x
- Mineral & royalty production (Q1 2026): 35.9 MBoe/d (+16% q/q)
- Market cap (2026): ~$3 billion
For a royalty partnership, the numbers to watch differ from a normal stock. Distributable cash flow (DCF) and the distribution coverage ratio matter more than earnings per share, because the payout is the main reason most investors hold the units: coverage above 1.0x means DCF exceeded the distribution, which suggests the payout has cushion, while coverage near or below 1.0x raises the risk of a cut. The yield looks high partly because the structure passes most cash through, and partly because the income swings with commodity prices. Because BSM is a partnership, you receive a Schedule K-1 (typically by mid-March) rather than a 1099, distributions are largely treated as return of capital that lowers your cost basis, and depletion deductions can shelter part of the income; holding units in an IRA can trigger UBTI complications, so many investors hold them in a taxable account and consult a tax professional.
Who competes with Black Stone Minerals, L.P. (BSM)?
Minerals & royalties peers
Other owners of oil and gas mineral and royalty interests include Viper Energy (VNOM), Sitio Royalties (STR), Kimbell Royalty Partners (KRP), and Texas Pacific Land (TPL). Like Black Stone, they collect royalties without paying for drilling, though they differ in basin focus, oil-versus-gas mix, and whether they are structured as partnerships (K-1) or corporations (1099).
Upstream E&P and midstream MLPs
Exploration and production companies (such as EQT or Comstock Resources, an operator on Black Stone acreage) and midstream partnerships (such as Enterprise Products or Energy Transfer) also offer energy exposure, but they bear drilling, completion, or pipeline capital costs and operating expenses that royalty owners avoid. Their economics and risk profiles are different from a pure royalty model.
ETFs and income alternatives
Investors seeking diversified energy income often use MLP and energy-income ETFs (such as the Alerian MLP ETF, AMLP, or broad energy funds) or dividend and high-yield funds. These spread exposure across many names and, in the case of some fund structures, can simplify the tax reporting versus holding individual K-1 units.
How to invest in Black Stone Minerals, L.P. (BSM)
There are three common ways to get BSM exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so BSM sits alongside other stocks that express the same thesis.
Walnut takes the basket route. Describe a thesis where BSM fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
The bottom line on Black Stone Minerals, L.P. (BSM)
Black Stone Minerals is a high-yield royalty partnership: it collects payments on oil and gas produced across its acreage and passes most of the cash through to unitholders as quarterly distributions. It tends to behave like an income and commodity-sensitive holding, where the payout can rise or fall with natural gas and oil prices and with drilling activity on its land.
More on Black Stone Minerals, L.P. (BSM)
Whether BSM is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is BSM a buy?, and where the stock could go from here in the BSM stock forecast.
For income investors, whether BSM pays a dividend and how the payout looks is covered in does BSM pay a dividend?
Build a basket around BSM with Walnut
Use Black Stone Minerals, L.P. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What does Black Stone Minerals do?
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Black Stone Minerals owns oil and gas mineral and royalty interests across roughly 16.9 million gross acres in dozens of US states. It does not drill or operate wells itself; instead it earns a royalty, a share of production revenue off the top, when operators produce oil and gas on its land, without paying for the drilling or operating costs. That makes it one of the largest capital-light royalty owners in the country.
Does BSM pay a dividend?
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Technically no, because Black Stone is a limited partnership rather than a corporation: it pays quarterly distributions instead of dividends. The recent rate has been $0.30 per unit per quarter, and total distributions were $1.28 per common unit for full year 2025, a yield recently around 8 to 9 percent. Because it is a partnership, you receive a Schedule K-1 tax form rather than a 1099.
Is BSM a good stock?
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This is descriptive, not advice. The bull case is a high, cash-rich royalty payout backed by a long-lived, mostly natural-gas asset base, no drilling capital costs, and recent distribution coverage above 1.0x. The bear case is that income swings with oil and gas prices, the distribution has been cut before, reserves deplete over time, and the K-1 adds tax complexity. Whether it fits depends on your own goals and risk tolerance.
Is BSM a good stock to buy right now?
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This is informational, not a recommendation. In its favor, production inflected higher into 2026 (mineral and royalty volumes up 16 percent in Q1 2026) and coverage improved to 1.20x, supporting the payout. Against it, natural gas prices are volatile, the partnership does not control how fast operators drill on its acreage, and the high yield reflects real commodity risk. Walnut provides information, not investment advice.
Does BSM issue a K-1 tax form?
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Yes. As a limited partnership, Black Stone issues a Schedule K-1 each year (typically available by mid-March at taxpackagesupport.com) instead of a 1099. The K-1 reports your share of income, deductions, and depletion, and distributions are largely treated as return of capital that reduces your cost basis. Holding units in an IRA can create unrelated business taxable income (UBTI) issues, so many investors hold them in a taxable account and consult a tax professional.
Is the BSM distribution safe or sustainable?
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The distribution is not guaranteed and depends on commodity prices and production. Recent coverage has been supportive: distributable cash flow covered the payout at 1.05x in Q4 2025 and 1.20x in Q1 2026, meaning cash flow exceeded the distribution. However, the quarterly rate was reduced from $0.375 to $0.30 during 2025, a reminder that the partnership adjusts the payout when conditions warrant. A sustained drop in natural gas prices would pressure it again.
Why is Black Stone so sensitive to natural gas prices?
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Its reserves are roughly 70 percent natural gas and around 88 percent proved developed producing, so its royalty revenue tracks gas prices closely. When gas prices rise, royalty checks grow with little added cost; when they fall, revenue and distributable cash flow shrink. The heavy gas weighting also ties the partnership to longer-term demand themes like LNG exports and power generation, which cut both ways.
Which ETFs or baskets include BSM?
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Black Stone can appear in energy-income, MLP, and royalty-focused ETFs and dividend funds, though weightings vary and some funds avoid K-1 issuers. On Walnut, BSM is most naturally used as an income or energy holding inside a thematic basket, for example one built around high-yield energy royalties or natural gas exposure, alongside related names.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Black Stone Minerals, L.P.'s investor relations page or your broker before making investment decisions.