Black Stone Minerals (BSM) Update - Nov 29

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

Black Stone Minerals (BSM) Update - Nov 29

Post by dan_s »

BSM is one of our "Minerals Companies" that is trading for $11.44 at the time of this post. It is an MLP that made cash distributions of $0.25 the last two quarters, so annualized yield is 8.7%, but... I do think they will increase quarterly distributions in 2022.

BSM's production mix is 74% natural gas & NGLs and 26% crude oil.

They have some "Bad Hedges" that expire at year-end 2021, so they should be able to increase quarterly distributions to at least $0.30 next year.

My updated valuation is $15/unit, primarily because I am now giving equal weight to 2022 operating cash flow.

TipRanks as of today: "In the last 3 months, 4 ranked analysts set 12-month price targets for BSM. The average price target among the analysts is $14.81."
Dan Steffens
Energy Prospectus Group
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