Black Stone Minerals, L.P. Reports Record Quarterly Results and Declares Cash Distribution on Common and Subordinated Units

Black Stone Minerals, L.P. (NYSE: BSM) ("Black Stone Minerals," "Black
Stone," or "the Partnership") today announces its financial and
operating results for the first quarter of 2018 and recent developments
after quarter-end.

Highlights

• Partnership reports quarterly production of 42.4 Mboe/d, an increase
  of 11% over the fourth quarter of 2017.
• Reported oil and gas revenues of $126.2 million and lease bonus and
  other income of $4.6 million for the quarter.
• Generated net income of $42.0 million and Adjusted EBITDA of $95.0
  million.
• Reported distributable cash flow of $83.4 million, resulting in
  distribution coverage for all units of 1.6x.
• Acquired $32.2 million in mineral and royalty assets for cash during
  the quarter, led by a sizeable acquisition in the Midland Basin.
• After quarter-end, borrowing base increased to $600 million from $550
  million.

Management Commentary

Thomas L. Carter, Jr., Black Stone Minerals’ President, Chief Executive
Officer, and Chairman, commented, "Black Stone had a strong quarter to
begin 2018. We set new quarterly records for production, Adjusted
EBITDA, and Distributable Cash Flow. Our assets continue to perform well
across the board. We had strong production from the Bakken and Permian,
and we are seeing a ramp-up in Haynesville completions that should drive
continued production growth in the second quarter. The mineral and
royalty assets that we acquired from Noble Energy in late 2017 are
performing above our expectations. We also continued to bolster our core
positions in the Midland Basin and the East Texas Haynesville/Bossier
play through targeted acquisitions in the first quarter of 2018. As
such, Black Stone is well positioned to deliver on our commitment to
increase distributions to common and subordinated unitholders to an
annualized rate of $1.35 per unit next quarter."

Quarterly Financial and Operating Results

Production

Black Stone reported average production of 42.4 MBoe/d (67% mineral and
royalty, 69% natural gas) for the first quarter of 2018. This represents
an increase of 19% over average production of 35.6 MBoe/d for the
corresponding period in 2017 and is 11% higher than average daily
production in the fourth quarter of 2017. Production for the period
benefited from a particularly strong contribution from the Bakken/Three
Forks program, where the Partnership is seeing increased industry
activity over the last year.

Realized Prices, Revenues, and Net Income

The Partnership’s average realized price per Boe, excluding the effect
of derivative settlements, was $33.10 for the quarter ended March
31, 2018. This represents a 17% increase from the preceding quarter and
is 20% higher than the $27.52 per Boe reported for the quarter ended
March 31, 2017.

Black Stone reported oil and gas revenues of $126.2 million (58% oil and
condensate) for the first quarter of 2018, an increase of 43% from $88.2
million for the first quarter of 2017. This increase in oil and gas
revenue was driven by the aforementioned increases in reported
production volumes and realized pricing. Oil and gas revenue in the
fourth quarter of 2017 was $98.9 million.

The Partnership recognized a loss on commodity derivative instruments of
$16.3 million in the first quarter of 2018, composed of a $4.3 million
loss from realized settlements and a $12.0 million unrealized loss due
to the change in value of the Partnership’s derivative positions during
the quarter. In the first quarter of 2017, the Partnership reported a
gain on commodity derivative instruments of $22.7 million.

Black Stone recognized $4.6 million in lease bonus and other income in
the first quarter of 2018, the majority of which related to the Canyon
Lime and other plays in the Mid-Continent. The Partnership reported
$13.7 million in lease bonus and other income in the same period in 2017.

The Partnership reported net income of $42.0 million, which includes the
non-cash derivative loss described above, for the quarter ended March
31, 2018, compared to net income of $61.6 million in the corresponding
period in 2017.

Adjusted EBITDA and Distributable Cash Flow

Black Stone reported Adjusted EBITDA of $95.0 million for the first
quarter of 2018, compared to $77.9 million for the corresponding quarter
in 2017 and $79.5 million in the fourth quarter of 2017. Distributable
cash flow for the first quarter of 2018 was $83.4 million, an increase
of 22% from the $68.5 million reported in the first quarter of 2017 and
a 20% increase from the $69.4 million in the fourth quarter of 2017.
These results for the first quarter of 2018 are both quarterly records
for the Partnership as a publicly traded partnership.

Financial Position

As of March 31, 2018, the Partnership had $6.3 million in cash and
$436.0 million outstanding under its credit facility. Subsequent to
quarter-end, the borrowing base was increased to $600.0 million as part
of a regularly scheduled semi-annual redetermination process. As of May
4, 2018, the Partnership had $394.0 million outstanding under the credit
facility and $12.5 million in cash, providing $218.5 million in
available liquidity. Black Stone Minerals is in compliance with all
financial covenants associated with its credit facility.

Hedge Position

Black Stone has commodity derivative contracts in place covering
significant portions of its anticipated production for the remainder of
2018 and 2019. For the balance of 2018, approximately 83% of expected
oil volumes are hedged at prices averaging $55.24 per barrel and
approximately 74% of expected gas volumes are hedged at prices averaging
$3.01 per Mcf. For 2019, approximately 48% of anticipated oil volumes
are hedged at prices averaging $56.57 per barrel and approximately 39%
of expected gas volumes are hedged at an average price of $2.86 per Mcf.
More detailed information about the Partnership's existing hedge
position can be found in the Quarterly Report on Form 10-Q for the three
months ended March 31, 2018, which is expected to be filed on or around
May 8, 2018.

Acquisitions

Black Stone acquired $32.2 million of properties for cash in the first
quarter of 2018. Included in that amount was a $22.6 million mineral
package in the Midland Basin. Additionally, the Partnership continued to
consolidate its acreage position in the Shelby Trough area in East Texas.

Working Interest Capital Expenditures

The Partnership invested a net total of $28.2 million in working
interest capital during the first quarter of 2018, inclusive of $18.0
million in reimbursements from farmout partners. The majority of this
capital is related to its participation in the completion of wells
drilled on its Haynesville/Bossier properties in the Shelby Trough of
East Texas prior to the previously announced farmouts with Canaan
Resource Partners and Pivotal Petroleum Partners. As a result of those
farmouts, the Partnership expects the first quarter of 2018 to be the
last quarter of meaningful working interest participation capital
expenditures related to the Haynesville/Bossier development.

The Partnership expects net working interest capital expenditures to
total $32 to $40 million during 2018. Spending related to Black Stone's
participation in Haynesville/Bossier development for 2018 is expected to
be $20 to $25 million net of farmout reimbursements, the vast majority
of which was incurred in the first quarter. Black Stone also intends to
invest $12 to $15 million delineating its PepperJack prospect in Hardin
and Liberty counties, Texas during 2018. The PepperJack A#1 well,
targeting the Lower Wilcox formation in Southeast Texas, was drilled and
logged during the first quarter of 2018 at a cost of $6.3 million with
encouraging results. The PepperJack B#1 well will be drilled during the
second quarter of this year. Black Stone plans to ultimately market the
development project to an operator to complete these wells and develop
the field. The Partnership expects to receive substantial reimbursement
of prior capital expenditures, lease bonus consideration, and a healthy
continuous drilling commitment from the operator, while retaining a
meaningful royalty interest in the project going forward.

Distributions

The Board of Directors of the general partner (the "Board") has approved
cash distributions attributable to the first quarter of 2018 of $0.3125
per common unit and $0.20875 per subordinated unit. Distributions will
be payable on May 24, 2018 to unitholders of record on May 17, 2018. The
quarterly distribution coverage ratio attributable to the first quarter
of 2018 was approximately 1.6x for all units (2.5x for common units).

2018 Outlook

Black Stone generally reviews its guidance on a semi-annual basis unless
circumstances suggest there has been a material change that warrants
updating information for the investment community. The following items
have changed since the original budget was announced and should be noted
for financial modeling purposes:

• DD&A - Black Stone is reducing its 2018 DD&A per BOE guidance to $7.50
  - $8.50 per Boe, down from $8.00 - $9.00 per Boe. The change is
  primarily a result of higher proved reserves at year-end 2017 compared
  to what had been assumed for budgeting purposes.
• Maintenance Capital - On April 27, 2018, the Board of Directors
  approved a replacement capital expenditure estimate of $11.0 million
  for the period from April 1, 2018 to March 31, 2019. The decrease from
  the prior twelve-month estimate of $13.0 million reflects the decline
  of working interest as a driver of reserve replacement for the
  Partnership going forward.

Conference Call

Black Stone Minerals will host a conference call and webcast for
investors and analysts to discuss its results for the first quarter of
2018 on Tuesday, May 8, 2018 at 9:00 a.m. Central Time. To join the
call, participants should dial (877) 447-4732 and use conference code
8485889. A live broadcast of the call will also be available at http://investor.blackstoneminerals.com.
A recording of the conference call will be available at that site
through June 7, 2018.

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 41 states and 64 onshore basins in
the continental United States. The Partnership also owns and selectively
participates as a non-operating working interest partner 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.

For an important discussion of risks and uncertainties that may impact
our operations, see our annual and quarterly filings with the Securities
and Exchange Commission, which are available on our website.

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 37.0% for
individuals.

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

Non-GAAP Financial Measures

Adjusted EBITDA and distributable cash flow are supplemental non-GAAP
financial measures used by our management and external users of our
financial statements such as investors, research analysts, and others,
to assess the financial performance of our assets and our ability to
sustain distributions over the long term without regard to financing
methods, capital structure, or historical cost basis.

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

Adjusted EBITDA and distributable cash flow should not be considered an
alternative to, or more meaningful than, net income (loss), income
(loss) from operations, cash flows from operating activities, or any
other measure of financial performance presented in accordance with
generally accepted accounting principles (“GAAP”) in the United States
as measures of our financial performance.

Adjusted EBITDA and distributable cash flow have important limitations
as analytical tools because they exclude some but not all items that
affect net income (loss), the most directly comparable GAAP financial
measure. Our computation of Adjusted EBITDA and distributable cash flow
may differ from computations of similarly titled measures of other
companies.

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