Black Stone Minerals, L.P. (BSM) is a mineral and royalty interest partnership with total assets of $1.34B as of March 31, 2026. Under the liquidation lens, recovery posture is deeply negative for common equity holders, consistent with MFFAIS-reported CLV of -$29.4M and LLV/OLV of -$25.6M. The dominant asset is oil and natural gas properties at gross book value of $3.09B, net $1.23B after $1.86B of accumulated DD&A. Under a liquidation scenario, these properties would be subject to substantial haircuts—likely 50-60% of net book value given the royalty/mineral interest nature, which commands market premiums in going-concern M&A but faces price and liquidity uncertainty in forced liquidation. Applying a 50% haircut to the $1.23B net PP&E yields approximately $610M of asset recovery, against which all liabilities rank at face value. The liability stack includes: $187M revolving credit facility (drawn up from $154M at December 31, 2025, a $33M increase in Q1 2026 driven by acquisition and distribution funding), $22.9M asset retirement obligations (noncurrent), $8.6M noncurrent derivative liabilities, and $300.5M Series B cumulative convertible preferred units carried in mezzanine equity with a stated liquidation preference of $315M plus accrued distributions. The preferred units are structurally senior to common in liquidation. Total face-value liabilities plus preferred liquidation preference aggregate to approximately $615M+, consuming all haircut-adjusted asset recovery before common units receive anything. Commodity derivative liabilities stand at $36.2M net (after netting), a meaningful increase from the December 31, 2025 position when the derivative book was in net asset territory ($22.9M net asset), reflecting the sharp move in oil forward curves driven by the Iran conflict-related price spike. The credit facility's $580M borrowing base was reaffirmed in April 2026 and elected commitment remains at $375M, with $188M of unused availability; this provides liquidity headroom but borrowing base is oil-and-gas-property-derived and would compress materially in any distress scenario. The Partnership reports no goodwill or intangibles requiring zero recovery write-off. Unproved properties of $1.075B (primarily unleased Shelby Trough acreage) are embedded in the gross PP&E figure and would attract the deepest haircuts given lack of production and dependence on third-party operator drilling commitments to unlock value. Filing discusses asset retirement obligations and Shelby Trough JEA drilling commitments extensively in MD&A but does not separately break out the present value of future lease commitments or ARO by property in XBRL—only the aggregate $22.9M noncurrent ARO is tagged.
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