Brigham Minerals (MNRL) Update - April 12

[dan_s]

I have updated the Brigham Minerals profile and forecast. They have been posted to the EPG website under the "High Yield" tab.

If you are investing for high yield + modest growth then read this one carefully. Here is what I like the most.
> Brigham has a strong balance sheet and plenty of liquidity.
> Their management team and technical staff all have decades of experience.
> Their properties are operated by large-cap / high-quality upstream companies that are drilling & completing lots of wells.
> Based on my forecast, MNRL will increase dividends from $1.01 in 2020 to approximately $1.45 per share in 2021 for annual yield of 9.2% based on today's closing price.
> A high percentage of their dividends should be treated as return of capital.
> It is a "variable dividend" payer. None of their production is hedged; as commodity prices move back to pre-pandemic levels their dividends will go up. Granted, it does have more commodity price risk than BSM and VNOM, but those two have a lot of this year's production hedged at much lower prices than the current strip.
> It is a C-Corp., so no K-1 to mess with each year. < Appropriate for an IRA account.

After reading the profile, I recommend that you carefully review the new presentation on their website to complete your due diligence.