Black Stone Minerals, L.P. Announces Distribution Increase, New Sustainability Initiative, and Timing of Earnings Call to Discuss Second Quarter 2021 Results

Black Stone Minerals, L.P. (NYSE: BSM) (“Black Stone,” “BSM,” or “the Company”) today declared the distribution attributable to the second quarter of 2021. Additionally, the Company announced a new sustainability initiative and the date of its second quarter 2021 earnings call.

Common Distribution

The Board of Directors of the general partner (the “Board”) has approved a cash distribution for common units attributable to the second quarter of 2021 of $0.25 per unit. This represents an increase of approximately 43% over the common distribution paid with respect to the prior quarter. In determining the distribution level with respect to the second quarter, the Board considered a base distribution of $0.20 per unit, which it expects will be sustainable through the end of 2021, plus a special distribution of $0.05 per unit which reflects certain positive, non-recurring items in the quarter which will be discussed in greater detail in the earnings release scheduled for August 2, 2021. Distributions will be payable on August 20, 2021 to unitholders of record on August 13, 2021.

Thomas L. Carter, Jr., Black Stone Minerals’ Chief Executive Officer and Chairman, commented, “We are pleased to announce a significant distribution increase for the second quarter. The increase in our base distribution rate to $0.20 per unit was driven by the more constructive commodity price environment and the positive momentum in our core development areas. In addition, our very low debt balance allows us greater flexibility to reward our unitholders when we have positive one-time items occur in a quarter. Even with this additional $0.05 per unit special distribution we expect to have solid coverage for the quarter.

“Our improved distribution outlook extends beyond the remainder of 2021. With the uplift in our hedge prices into next year, we anticipate strong potential for further increases in the regular distribution level as we look forward to 2022.”

New Sustainability Initiative

Black Stone has created a nascent Carbon Responsibility Program and has taken first steps towards proactive measures in environmental responsibility. The Company expects to evaluate numerous alternatives in the future to be among the leaders in the mineral space in this area.

Black Stone has entered into several arrangements over the course of 2021 where the Company has granted surface use waivers on its mineral acreage in favor of solar developers. Proceeds to Black Stone from these efforts total approximately $1.1 million year-to-date. The Company plans to use a portion of these proceeds to purchase carbon credits to offset part of the CO₂ emissions associated with its minerals production. Black Stone expects that the carbon credits purchased with these proceeds may more than offset the direct CO₂ emissions from its Shelby Trough Angelina County 2021 royalty production.