Black Stone Minerals (BSM) Valuation Update - Aug 3

[dan_s]

At the time of this post BSM was trading at $15.01.

TipRanks: "In the last 3 months, 5 ranked analysts set 12-month price targets for BSM. The average price target among the analysts is $20.40. The five analysts' price targets range from $19 to $23."

I have adjusted my forecast model for their good Q2 results, noting that they raised the dividend from $0.40 to $0.42/Qtr. I adjusted my valuation for their updated guidance that they now believe their 2022 production will be near the low end of their guidance of 34 to 37 MBoepd.

My current valuation stays at $18.50. < Keep in mind that HH ngas prices are now trending much higher than the gas prices used in my models. If ngas and NGL prices move higher, there is definitely upside to my valuation.

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