Black Stone Minerals stock holds Sector Weight rating at KeyBanc

Investing.com - KeyBanc has reiterated its Sector Weight rating on Black Stone Minerals (NYSE:BSM) following the company’s strong third-quarter results. According to InvestingPro data, BSM has been profitable over the last twelve months with an impressive 87.4% gross profit margin.

The oil and gas partnership reported production of 36.3 mboe/d, marking its highest level in a year and exceeding analyst expectations for both production and EBITDA. The company’s LTM EBITDA stands at $321.93 million, supporting its ability to maintain a substantial 9.16% dividend yield.

KeyBanc noted that Black Stone has visibility on organic growth extending into 2026, supported by development agreements with Aethon and Revenant.

The firm observed that while the transition back to growth in the Haynesville region has been slow due to volatile natural gas prices, the turnaround appears to be underway.

According to KeyBanc, increasing LNG export demand is driving activity as natural gas prices are expected to reach $3.50-$4/mcf in 2026 and beyond, potentially providing Black Stone Minerals a path back to 40 mboe/d of production.

In other recent news, Black Stone Minerals reported strong financial results for the second quarter of 2025, surpassing earnings and revenue expectations. The company achieved an earnings per share of $0.53, which was significantly higher than the forecasted $0.29. Additionally, revenue reached $159.49 million, exceeding the anticipated $111.75 million. This represents a 42.72% surprise in revenue performance. Furthermore, Black Stone Minerals has entered into a Unitholder Agreement with AP Basileia SPV, LLC regarding the company’s preferred units. The agreement includes specific voting and transfer provisions, with AP Basileia SPV agreeing to vote in line with the Board of Directors’ recommendations. In a separate development, KeyBanc maintained its Sector Weight rating on Black Stone Minerals after an investor call where the company shared its long-term outlook through 2035.

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