Black Stone Q3: Revenue Falls 24.7% on $30.2M Hedging Loss; Borrowings Up to $195M
BSM is trading near its 52-week low of $12.93 (14% above the low).
Summary
Black Stone's Q3 revenue fell 24.7% to $99.7M because of a $30.2M commodity hedge loss, while distributable cash flow of $93.0M covered the $0.35 distribution 1.25x. Borrowings rose to $195.0M and the hedge book swung to a $23.5M net liability.
Key Events · Earnings and Guidance · BSM
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Hedge Loss Drags Q3 Revenue Down 24.7%
Total revenue fell to $99.7M from $132.5M a year ago, entirely due to a $30.2M loss on commodity derivatives; revenue from contracts with customers rose 23.5% to $129.9M on realized oil at $86.95/Bbl versus $62.60.
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Hedge Book Swings to $23.5M Net Liability
The derivative position moved from a $23.0M net asset at December 31, 2025 to a $23.5M net liability at September 30, 2026, reflecting $46.5M of unrealized losses as forward oil curves rose above swap strikes.
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Borrowings Climb to $195M; Interest Up 82%
Credit facility debt rose from $154.0M at year-end to $195.0M, lifting nine-month interest expense to $11.1M from $6.1M; the $580.0M borrowing base was reaffirmed in October 2026 with $179.6M undrawn.
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Distribution Covered 1.25x by Cash Flow
Distributable cash flow of $93.0M covered the $0.35 per unit Q3 distribution 1.25x; the distribution is payable November 13, 2026 to holders of record November 6.
Analysis · BSM · Energy & Transportation
The headline numbers were already out on November 2, but the 10-Q shows what drove them: a $30.2M loss on oil and gas hedges cut total revenue to $99.7M even as revenue from contracts with customers rose 23.5% to $129.9M on higher realized oil prices ($86.95/Bbl vs $62.60). The hedge book has flipped from a $23.0M net asset at year-end to a $23.5M net liability, and credit facility borrowings climbed to $195.0M from $154.0M, pushing nine-month interest expense up 82.4% to $11.1M. Distributable cash flow of $93.0M still covered the $0.35 distribution 1.25x, and the partnership kept buying Shelby Trough acreage — $63.3M in the first nine months plus $32.7M in October — funded largely with debt.
How filings like this one have moved
In the 30 days to Nov 3, 2026, 32.3% of the 2077 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, BSM was trading at $14.77 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $3.1B. The 52-week trading range was $12.93 to $15.49. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.