Black Stone Minerals cuts dividend by 20%
Black Stone Minerals (BSM) will cut its quarterly dividend by 20% to 30 cents per common unit.
Black Stone Minerals, L.P. declared the distribution attributable to the second quarter of 2025. Additionally, the Partnership announced the date of its second quarter 2025 earnings call.
The Board of Directors of the general partner has approved a cash distribution of $0.30 per common unit attributable to the second quarter of 2025. Distributions will be payable on August 14, 2025, to unitholders of record on August 7, 2025.
The distribution reduction primarily results from a slower than expected increase in natural gas production, particularly in the Haynesville/Bossier play. The Partnership remains focused on its long-term growth strategy consistent with the recently announced development agreements in Shelby Trough and believes that the current environment presents attractive opportunities to continue its targeted mineral acquisition strategy. The Partnership expects to announce distribution coverage of approximately 1.18x for the second quarter and to deploy the excess cash to make acquisitions that build on strategic advantages associated with the unique asset base that distinguishes Black Stone from its peers.
Thomas L. Carter, Jr., Black Stone Minerals’ Chairman, Chief Executive Officer, and President, commented: “In the wake of slower natural gas production increases, particularly in the Haynesville, we are maintaining our commitment to a prudent, returns-based commercial strategy focused on disciplined capital deployment while maintaining financial flexibility. We remain excited by the long-term outlook for natural gas and the growth we expect our asset base to generate, which combines a large, diversified portfolio of mineral and royalty interests across the Lower 48 with substantial inventory, development agreements, and higher net interests in the expanding Haynesville. Furthermore, the Partnership believes that its assets will provide meaningful supply to support growing global demand for liquefied natural gas. The Board of Directors and management team remain focused on capital discipline and its targeted commercial strategy that capitalizes on our asset base to maximize distributions while maintaining a strong balance sheet. We are confident in our path to grow production and distributions as the projected growth in natural gas production materializes across our asset base and look forward to providing more detail in our August 4th earnings announcement and on the August 5th earnings call.”
This is not the first dividend cut by BSM: In 2020 they did a massive 87.5% cut.
Black Stone Minerals, L.P. is an owner of oil and natural gas mineral interests in the United States. The Partnership owns mineral interests and royalty interests in 41 states and 64 onshore basins in the continental United States. The Partnership also owns and selectively participates as a nonoperating working interest partner in established development programs, primarily on its mineral and royalty holdings.