Free cash flow margins have demonstrated extreme sensitivity to commodity cycles, fluctuating between 10.8% and 128.0% over the last ten quarters while maintaining minimal capital intensity.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 245.33M | 310.17M | 389.04M | 521.25M | 424.98M | 256.88M | 281.81M | 412.72M | 385.38M | 281.85M | 196.66M | 284.74M | 396.13M | 320.76M | 358M |
| Operating CF Margin % | - | 73.44% | 88.53% | 104.02% | 54.19% | 50.79% | 95% | 83.75% | 63.22% | 65.6% | 75.4% | 72.47% | 72.24% | 69.2% | 97.03% |
| Operating CF Growth % | -141.27% | -20.27% | -25.36% | 22.65% | 65.44% | -8.85% | -31.72% | 7.09% | 36.73% | 43.32% | -30.93% | -28.12% | 23.49% | -10.4% | - |
| Net Income | 297.26M | 299.93M | 271.33M | 422.55M | 476.48M | 181.99M | 121.82M | 214.37M | 295.56M | 157.15M | 20.19M | -101.31M | 169.19M | 168.96M | 107.47M |
| Depreciation & Amortization | 20.02M | 36.89M | 46.49M | 0 | 47.8M | 61.02M | 82.02M | 109.58M | 122.65M | 114.53M | 102.49M | 104.3M | 230.95M | 160.14M | 167.65M |
| Stock-Based Compensation | 6.57M | 9.62M | 8.56M | 10.83M | 17.39M | 12.22M | 3.73M | 20.48M | 30.13M | 33.04M | 43.14M | 18M | 11.34M | 6.78M | 7.25M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -61.02M | -82.02M | 0 | -14.83M | -27.83M | 38.45M | 154.41M | 0 | 0 | 0 |
| Other Non-Cash Items | -92.44M | -34.14M | 51.16M | 39.06M | -80.24M | 95.17M | 146.2M | 34.6M | -28.29M | 16.89M | 46.23M | 65.09M | 192.52M | 168.41M | 82.88M |
| Working Capital Changes | 14.28M | -2.13M | 11.5M | 48.81M | -36.45M | -32.49M | 10.06M | 33.69M | -19.85M | -11.93M | -53.84M | 44.24M | 23.08M | -23.39M | 13.54M |
| Change in Receivables | 12.4M | 5.54M | 11.24M | 53.05M | -39.51M | -34.86M | 16.49M | 35.04M | -31.53M | -6.08M | -29.76M | 33.59M | 17.21M | -15.05M | 13.54M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 339K | -177K | -180K | 95K | 453K | -1.22M | 0 |
| Change in Payables | 4.86M | -286K | 1.04M | -3.83M | 3.01M | 2.65M | -5.93M | -1.19M | 11.47M | -3.58M | -23.03M | 11.22M | 8M | -7.08M | 0 |
| Cash from Investing | -105.21M | -118.27M | -112.24M | -19.74M | -1.22M | -14.32M | 151.25M | -48.62M | -163.8M | -454.25M | -221.54M | -91M | -101.11M | -195.63M | -198.97M |
| Capital Expenditures | -29.77M | -11.76M | -4.21M | -19.81M | -12.56M | -14.63M | -4.82M | -111.3M | -297.33M | -484.52M | -221.74M | -116.7M | -120.58M | -195.71M | -200.02M |
| CapEx % of Revenue | 6.36% | 2.78% | 0.96% | 3.95% | 1.6% | 2.89% | 1.62% | 22.59% | 48.78% | 112.77% | 85.01% | 29.7% | 21.99% | 42.22% | 54.21% |
| Acquisitions | -75.44M | -117.98M | 0 | 0 | 11.35M | 318K | 156.06M | 0 | 131.82M | 30.27M | 198K | 25.7M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -45K | 11.46M | -108.02M | 73K | 0 | 0 | 0 | 62.68M | 133.53M | 30.27M | 198K | 25.7M | 19.47M | 74K | 1.05M |
| Cash from Financing | -141.07M | -192.93M | -344.57M | -435.54M | -428.34M | -235.48M | -439.38M | -361.39M | -221.8M | 168.27M | 21.43M | -195.31M | -310.33M | -142.31M | -138.17M |
| Debt Issued (Net) | 91M | 129M | 25M | -10M | -79M | -32M | -273M | -16M | 22M | 72M | 250M | -328M | -57M | 87.9M | 0 |
| Equity Issued (Net) | -488K | -3.78M | -4.45M | -5.5M | -2.99M | -1.96M | -5.04M | -16.97M | 27.84M | 571.8M | -27.44M | 314.58M | -5.2M | -118.11M | 0 |
| Dividends Paid | -228.58M | -315.12M | -365.06M | -419.82M | -343.4M | -197.92M | -161.34M | -328.42M | -268.49M | -198.58M | -182.33M | -221.05M | -240.65M | -241.44M | -238.57M |
| Share Repurchases | -488K | -3.78M | -4.45M | -5.5M | -2.99M | -1.96M | -5.04M | -16.97M | -12.69M | -27.89M | -45.9M | -43.76M | -5.2M | -118.11M | -9.05M |
| Other Financing | -3.01M | -3.04M | -64K | -216K | -2.94M | -3.6M | 0 | 0 | -3.16M | -276.96M | -18.81M | 39.16M | -7.49M | 129.33M | 100.4M |
| Net Change in Cash | 9.18M | -1.04M | -67.76M | 65.97M | -4.57M | 7.08M | -6.32M | 2.71M | -228K | -4.13M | -3.46M | -1.57M | -15.32M | -17.18M | 20.86M |
| Free Cash Flow | 160.86M | 298.41M | 384.83M | 501.44M | 412.42M | 242.25M | 276.99M | 301.42M | 88.04M | -202.67M | -25.08M | 168.03M | 275.55M | 125.06M | 157.98M |
| FCF Margin % | 34.35% | 70.66% | 87.58% | 100.07% | 52.59% | 47.9% | 93.38% | 61.17% | 14.44% | -47.17% | -9.62% | 42.76% | 50.25% | 26.98% | 42.82% |
| FCF Growth % | -41% | -22.46% | -23.25% | 21.58% | 70.25% | -12.54% | -8.1% | 242.35% | 143.44% | -707.97% | -114.93% | -39.02% | 120.33% | -20.84% | - |
| FCF per Share | 0.76 | 1.41 | 1.83 | 2.23 | 1.84 | 1.16 | 1.34 | 1.46 | 0.40 | -1.05 | -0.13 | 0.88 | 1.45 | 0.66 | 0.07 |
| FCF Conversion (FCF/Net Income) | 0.54x | 1.03x | 1.43x | 1.23x | 0.89x | 1.41x | 2.31x | 1.93x | 1.30x | 1.79x | 9.74x | -2.85x | 2.33x | 1.90x | 3.90x |
| Interest Paid | 1.9M | 0 | 0 | 0 | 0 | 0 | 0 | 20.47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Natural gas price volatility
As reported in financial statements, BSM's operating cash flow to net income ratio has fluctuated significantly, ranging from 0.67 to 4.07, which suggests that GAAP net income is frequently distorted by non-cash items and does not consistently reflect the underlying cash-generating capacity of the mineral portfolio.
The wide variance in the OCF/NI ratio indicates that investors should prioritize distributable cash flow metrics over GAAP earnings to gauge true performance. This divergence appears driven by non-cash depletion and derivative adjustments, which mask the actual cash yield generated by the royalty interests.
Based on BSM's reported figures, free cash flow margins have demonstrated extreme volatility, swinging from 10.8% to 128.0% over the last ten quarters, a trend that highlights the company's high sensitivity to regional natural gas pricing and the lumpy nature of lease bonus income receipts.
The inconsistency in FCF generation suggests that BSM's cash flow profile is highly dependent on external operator activity rather than internal operational control. Investors should monitor whether the recent decline in FCF margin stability signals a structural shift in the company's ability to sustain high-margin distributions.
According to recent SEC filings, BSM's capital expenditure to revenue ratio has remained remarkably low, often near zero, which confirms the company's structural advantage as a royalty owner that avoids the heavy drilling and completion costs typical of traditional oil and gas exploration and production firms.
The minimal capital intensity allows BSM to convert a high percentage of its revenue into free cash flow, provided that management avoids unnecessary acquisitions. The occasional spikes in capital intensity appear linked to legacy working interest obligations, which management is actively working to divest.
As indicated by historical data, BSM consistently prioritizes returning cash to unitholders through dividends, with quarterly payments often exceeding $80 million, while maintaining a conservative balance sheet that avoids significant debt accumulation, suggesting a management focus on yield stability over aggressive, debt-funded growth initiatives.
The company's reliance on cash flow to fund distributions rather than debt suggests a disciplined approach to capital allocation. However, the sustainability of these distributions remains tethered to the volatile cash flow generated by its Haynesville gas-heavy acreage, warranting further investigation into long-term payout coverage.
Quick answers to the most common questions about buying BSM stock.
Black Stone Minerals, L.P. (BSM) generated $310.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Black Stone Minerals, L.P. (BSM) generated $298.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Black Stone Minerals, L.P. (BSM) spent $11.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Black Stone Minerals, L.P. (BSM) returned $315.1M to shareholders via cash dividends and spent $3.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.