MNRL is one of the four minerals companies in our High Yield Income Portfolio. I've known the management team for over a decade. They are first class and experts in the areas where they are buying up mineral interests.
Brigham Minerals, Inc. (MNRL, $23.44, Buy; Target $24.00)
Distribution surprises to the upside and activity levels continue to rise - Derrick Whitfield
We view the release as slightly positive. The positives include: i) a higher than expected distribution, ii) an acceleration of activity on Brigham's acreage (31% increase in net wells spud and 12% increase in net well inventory), and iii) continued ground game success. The only negative was lower than expected quarterly production (10.2% below on oil). Net-net, Brigham's continued financial strength and differentiated acquisition program should offset a quarterly production miss.
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Keep in mind that minerals companies do not control the drilling and completion work on their properties, making it more difficult to forecast production.
Brigham Minerals (MNRL) Q3 Results - Nov 4
Brigham Minerals (MNRL) Q3 Results - Nov 4
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group