Black Stone Minerals, L.P. Announces Third Quarter 2015 Results and Announces Cash Distribution

Black Stone Minerals, L.P. (NYSE: BSM) (“Black Stone Minerals”) today
announced its financial and operating results for the third quarter of
2015.

Key Third Quarter 2015 Highlights:

• Average production of 29.0 MBoe per day, representing year-over-year
  growth of 2.5%.
• Revenues of $137.0 million for the quarter, including unrealized
  derivative gain of $44.1 million.
• Net income of $53.9 million; Adjusted EBITDA (as defined below) of
  $64.8 million.
• Quarterly distribution coverage ratio of 1.2 times with cash generated
  from operations available for distribution of $61.1 million.
• Debt to trailing twelve month EBITDAX of 0.2 times at end of the
  quarter.

Management Commentary

Thomas L. Carter, Jr., Black Stone Minerals’ President, Chief Executive
Officer, and Chairman commented, “In tumultuous times like these for the
oil and gas industry, the advantages of Black Stone Minerals’ low
capital intensity business model become even more apparent. Without
investing any capital, royalty volumes have grown throughout 2015 even
as the drilling rig count across the industry has declined during that
period. We’re actively working with our lessees to incent them to
maintain or accelerate activity on BSM acreage, while also taking steps
to enhance the revenues and costs that we can directly control.
Management is reviewing a plan that could meaningfully reduce G&A in
2016. Deal flow for acquisitions is picking up and the balance sheet is
in great shape. We remain optimistic that we are on a path that will
enable us to grow distributions for unitholders.”

Financial and Operating Results

Production

Black Stone Minerals reported average production of 29.0 MBoe per day
for the third quarter of 2015, 72.5% of which is attributable to mineral
and royalty interests. This represents an increase of 2.5% over average
production of 28.3 MBoe per day for the corresponding period in 2014 and
is a decrease of 1.2% from the second quarter of 2015.

Realized Prices, Revenues, and Net Income

The partnership’s average realized price per Boe, excluding the effect
of derivative settlements, was $28.57 for the quarter ended September
30, 2015, a decline of 36.3% from $44.88 per Boe for the quarter ended
September 30, 2014.

Black Stone Minerals reported revenues of $137.0 million in the third
quarter of 2015, an increase of 3.2% from $132.8 million in the third
quarter of 2014. The increase reflects lower commodity prices compared
to the corresponding period in 2014 offset by an unrealized gain of
$44.1 million in the current quarter that reflects the increase in value
of unsettled derivative contracts during the quarter.

Lease bonus for the quarter was $4.3 million for the third quarter of
2015, compared to $7.1 million for the same period last year. The timing
and amount of lease bonus is variable. Several lease transactions have
been completed subsequent to quarter-end and a number of transactions
are currently being negotiated. Subsequent to quarter-end, Black Stone
Minerals also received a cash payment of $18.7 million from an operator
related to the termination of an exploration and development agreement
associated with the partnership’s minerals and leasehold interests.
Black Stone Minerals retained its ownership of these interests, which
are currently being marketed to potential partners.

Reported net income was $53.9 million for the quarter ended September
30, 2015, compared to net income of $57.9 million in the corresponding
period in 2014. The current period reflects a non-cash impairment of oil
and natural gas properties of $24.9 million resulting from declines in
future expected net cash flows and other factors at September 30, 2015.

Financial Position

As of September 30, 2015, Black Stone Minerals had $43.0 million
outstanding under its credit facility. Subsequent to quarter end, the
partnership’s borrowing base was re-determined at $550.0 million as part
of its regularly scheduled re-determination. Additionally, the bank
group and the partnership agreed to extend the termination date of the
credit agreement from February 3, 2017 to February 4, 2019. Black Stone
Minerals is in compliance with all financial covenants associated with
its credit facility. As of November 9, 2015, there were no outstanding
borrowings under the credit facility.

Acquisitions and Investing Activities

Year to date, net cash used in investing activities for the partnership
was $104.2 million. The largest component of this amount is $62.2
million of acquisitions, the majority of which were located in the
Midland Basin and in the Eagle Ford shale. The remaining balance relates
almost entirely to additions to oil and natural gas properties
associated with the partnership’s working interest participation option,
which allows it to participate in the development of de-risked resource
plays on its mineral interests.

Distributions

The Board of Directors of the general partner has approved a cash
distribution of $0.2625 per unit attributable to the third quarter of
2015. The quarterly distribution coverage ratio was over 1.2 times the
approved distribution attributable to the third quarter of 2015.
Distributions will be payable on November 27, 2015 to unitholders of
record at the close of business on November 19, 2015.

Conference Call

Black Stone Minerals will host a conference call and webcast for
investors and analysts to discuss its results of operations for the
third quarter of 2015 on Tuesday, November 10, 2015 at 9:00 a.m. Central
Time. To join the call, participants should dial (855) 546-9558 and use
conference code 52525494. A live broadcast of the call will also be
available on our website at http://investor.blackstoneminerals.com.
A recording of the conference call will be available at that site
through November 27, 2015.

About Black Stone Minerals, L.P.

Black Stone Minerals is one of the largest owners of oil and natural gas
mineral interests in the United States. The partnership owns mineral
interests and royalty interests in over 40 states and 60 onshore basins
in the continental United States. The partnership also owns and
selectively participates in non-operating working interests in
established development programs, primarily on its mineral and royalty
holdings. The partnership expects that its large, diversified asset base
and long-lived, non-cost-bearing mineral and royalty interests will
result in production and reserve growth, as well as increasing quarterly
distributions to its unitholders.

Forward-Looking Statements

This news release includes forward-looking statements. All statements,
other than statements of historical facts, included in this news release
that address activities, events or developments that the partnership
expects, believes or anticipates will or may occur in the future are
forward-looking statements. Terminology such as “will,” “may,” “should,”
“expect,” “anticipate,” “plan,” “project,” “intend,” “estimate,”
“believe,” “target,” “continue,” “potential,” the negative of such terms
or other comparable terminology often identify forward-looking
statements. Except as required by law, Black Stone Minerals undertakes
no obligation and does not intend to update these forward-looking
statements to reflect events or circumstances occurring after this news
release. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this news
release. All forward-looking statements are qualified in their entirety
by these cautionary statements. These forward-looking statements involve
risks and uncertainties, many of which are beyond the control of Black
Stone Minerals, which may cause the partnership’s actual results to
differ materially from those implied or expressed by the forward-looking
statements. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include, but are
not limited to, those summarized below:

• the partnership’s ability to execute its business strategies;
• the volatility of realized oil and natural gas prices;
• the level of production on the partnership’s properties;
• regional supply and demand factors, delays, or interruptions of
  production;
• the partnership’s ability to replace its oil and natural gas reserves;
  and
• the partnership’s ability to identify, complete, and integrate
  acquisitions.

Information for Non-U.S. Investors

This press release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Although a portion of Black Stone
Minerals’ income may not be effectively connected income and may be
subject to alternative withholding procedures, brokers and nominees
should treat 100% of Black Stone Minerals’ distributions to non-U.S.
investors as being attributable to income that is effectively connected
with a United States trade or business. Accordingly, Black Stone
Minerals’ distributions to non-U.S. investors are subject to federal
income tax withholding at the highest marginal rate, currently 39.6% for
individuals.

The following table shows the partnership’s production, realized prices,
and revenues for the periods presented.

Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, and cash available for distribution are
non-GAAP supplemental financial measures used by Black Stone Minerals’
management and external users of the partnership’s financial statements
such as investors, research analysts, and others, to assess the
financial performance of its assets and its ability to sustain
distributions over the long term without regard to financing methods,
capital structure, or historical cost basis.

Black Stone Minerals defines EBITDA as net income (loss) before interest
expense, income taxes and depreciation, depletion, and amortization.
Black Stone Minerals defines Adjusted EBITDA as EBITDA adjusted for
impairment of oil and natural gas properties, accretion of asset
retirement obligations, unrealized gains/losses on commodity derivative
instruments, and non-cash equity-based compensation. Black Stone
Minerals defines cash available for distribution as Adjusted EBITDA plus
or minus amounts for certain non-cash operating activities, borrowings
for capital expenditures, capital expenditures, cash interest expense,
and distributions to noncontrolling interests and preferred unitholders.

EBITDA, Adjusted EBITDA, and cash available for distribution should not
be considered an alternative to, or more meaningful than, net income,
income from operations, cash flows from operating activities, or any
other measure of financial performance presented in accordance with GAAP
as measures of the partnership’s financial performance. EBITDA, Adjusted
EBITDA, and cash available for distribution have important limitations
as analytical tools because they exclude some but not all items that
affect net income, the most directly comparable GAAP financial measure.
The partnership’s computation of EBITDA, Adjusted EBITDA, and cash
available for distribution may differ from computations of similarly
titled measures of other companies.

The following table presents a reconciliation of EBITDA, Adjusted
EBITDA, and cash available for distribution to net income, the most
directly comparable GAAP financial measure, for the periods indicated.

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