Black Stone Minerals LP (BSM) will cut its quarterly distribution by 18.9 percent to $0.30 per unit in the 1st quarter of 2020. Previously the owner of oil and natural gas mineral interests in the United States had raised its annual dividend 4 consecutive years, with the last increase dating back to 2018.
 

The next distribution is payable on February 24, 2020 to unitholders of record on February 17, 2020. The new annualized distribution of $1.20 per unit yields 12.2% at a price of $9.84 for BSM.
 

In the company's press release Thomas L. Carter, Jr., Black Stone Minerals’ Chief Executive Officer and Chairman, commented, "We are taking a proactive approach to strengthen our balance sheet and enhance our financial flexibility with the expectation that 2020 may be a challenging year in terms of commodity prices and overall drilling activity. Given the current environment, the Board believes that reducing the distribution benefits unitholders by providing additional cash flow for, first, the repayment of debt, and for other such uses as unit repurchases and acquisitions.”
 

Black Stone Minerals, L.P. is an owner 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 nonoperating working interest partner in established development programs, primarily on its mineral and royalty holdings.