Black Stone Minerals (BSM) Update - April 13

[dan_s]

My updated profile and forecast/valuation model for BSM has been posted to the EPG website.

BSM paid off ~70% of their debt in 2020 and they are well positioned to generate increasing DCF moving forward. Weather related shut-ins pushed down production in Q1 2020, but the wells are now back online. I am expecting production to ramp up to an exit rate of ~40,000 Boepd in 2021.

BSM is an MLP that is more heavily weighted to natural gas than the other two (MNRL & VNOM) minerals companies in our High Yield Income Portfolio.

Stifel updated their valuation yesterday. They rate BSM a BUY with a price target of $13/unit.