Falcon Minerals (FLMN) Q3 Results - Nov 4

[dan_s]

Falcon is one of four minerals companies in our High Yield Income Portfolio. Derrick's BUY recommendation is a BIG PLUS for me.

Falcon Minerals Corporation (FLMN, $5.91, Buy; Target $7.90)
Exceeds FCF per share guidance and discloses modest improvement to DUC backlog - Derrick Whitfield
We view this release as neutral. The positives include: i) Falcon exceeded prior FCF per share guidance, ii) higher than expected dividend payout, and iii) encouraging leasing activity in the Marcellus during Q321 providing $1.1mm in revenue. The only negative was a production miss (6.6% on oil). Net-net, Falcon's strong financial result for the quarter and slight increase to its net DUC inventory should offset a disappointing quarterly production number.

[Wlssmail@aol.com]

Dan,
Flmn is forecasting less FCF Q4
Than Q3. Distribution to drop?

Richard

[dan_s]

Updating the Sweet 16 is my top priority now. Did they give a reason that cash flow would be down Q to Q? Maybe because they got some nice lease bonus payments in Q3.