Black Stone Minerals (BSM) Update - Dec 14

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Black Stone Minerals (BSM) Update - Dec 14

Post by dan_s »

I just posted our updated profile and forecast/valuation model for BSM to the EPG website.

BSM closed at $7.10 today.
My valuation is $10.50 and Stifel's 11/13/20 update is a price target of $14.00.
It is an MLP that recently paid a quarterly cash distribution of $0.15 for annual yield of 8.45%. MLPs are best suited for taxable accounts because their distributions are partially tax deferred.
BSM has a very strong balance sheet and more than enough DCF coverage to double quarterly distributions in 2021.

It is more heavily weighted to natural gas and NGLs than the other two minerals companies in our High Yield income portfolio.
Dan Steffens
Energy Prospectus Group
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