Black Stone Minerals L.P. Common units representing limited partner interests (BSM)

FairStock Score: 83/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Black Stone as a royalty owner, not an operator. It owns about 16.9 million gross mineral acres plus nonparticipating and overriding royalty interests across 41 states, and that position produced $122.1 million of revenue and $106.4 million of net income in fiscal Q2 2026, the quarter ended 2026-06-30. Those are exceptional margins, and the balance sheet is conservative: debt-to-equity is 0.18, FairStock Altman Z is 7.55, and trailing free cash flow is $191.5 million, a 6.3% yield against the $3.0 billion market cap. Returns are good, with FairStock ROE of 25.59% and ROCE of 14.03%. But the computed Lynch category is CYCLICAL — Oil & Gas E&P: earnings follow the economic cycle. Filed results are uneven: fiscal year 2025 revenue was $422.3 million and net income $299.9 million, down from fiscal year 2023 revenue of $501.1 million and net income of $422.5 million, though fiscal year 2025 net income rose from fiscal year 2024's $271.3 million. In fiscal Q2 2026, revenue rose from $106.7 million in fiscal Q2 2025, but net income fell from $120.0 million; fiscal Q1 2026 net income was only $13.3 million. At the $14.90 close on 2026-10-26, FairStock P/E is 12.42, P/B is 3.90, and EV/EBITDA is 9.66. The 8.23% dividend yield is attractive, but FairStock Graham Number is $11.88, leaving a negative 26.01% margin of safety, so the price looks fair-to-full rather than cheap. FairStock Piotroski F-Score is 5/9. Quality is real, but commodity exposure and distribution variability demand caution.

In plain English: Black Stone Minerals owns oil and gas mineral and royalty interests across many U.S. acres. It collects royalties from energy production, so it earns very high profit margins and carries little debt, but its results move with energy prices and can be uneven quarter to quarter. At $14.90, the shares look fairly to fully priced against the company's accounting value and cash generation, even though the cash flow and high dividend are supportive.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer