Brigham Minerals (MNRL) Valuation Update - Aug 9

[dan_s]

MNRL is one of the four minerals companies in our High Yield Income Portfolio. It pays variable quarterly dividends.

"The Company’s Board of Directors (the “Board”) has declared a quarterly cash dividend incorporating results for the second quarter 2022 of $0.77 per share of Class A common stock at a 75% payout ratio. This represents a 28% increase in payout compared to the dividend declared for the first quarter of 2022. The second quarter dividend represents a base dividend of $0.16 per share and a variable dividend of $0.61 per share and will be paid on August 26, 2022 to holders of record as of August 19, 2022."

Based on the current share price of $28.00 at the time of this post, the annualized dividend yield is ~11%.

TipRanks: "In the last 3 months, 6 ranked analysts set 12-month price targets for MNRL. The average price target among the analysts is $35.83. The 6 price targets range from $30 to $46 per share." < NONE of the price targets have been updated since the Company announced outstanding Q2 results that beat all of their forecasts.

NONE of Brigham's production is hedged.

I have updated my forecast/valuation model for their strong Q2 results and updated guidance. My valuation increases by $0.50 to $36.50 per share.