Black Stone Minerals (BSM) for High Yield - Sept 11

Black Stone Minerals (BSM) for High Yield - Sept 11

Postby dan_s » Sun Sep 11, 2022 2:41 pm

I have posted an updated profile and forecast/valuation model for BSM to the EPG website.

Black Stone Minerals LP (BSM) is one of the royalty companies in our High Yield Income Portfolio that pay out a high percentage of their Distributable Cash Flow (DCF) as quarterly dividends.
> It is a Master Limited Partnership (MLP), so more suitable for a taxable account.
> On a Boe basis, approximately 72% of the Company's production is natural gas and NGLs.
> It has a strong balance sheet and lots of running room.
> Production is expected to ramp up from 34,500 Boepd in Q2 to an exit rate of ~38,000 Boepd.

Based on my forecast, the Company should be increasing their quarterly distributions to $0.45/unit in Q3.
Annualized dividend yield is approaching 11%.


BSM closed at $16.16 on September 9. My current valuation of $20.00 compares to TipRanks' price target of $21.23.
Dan Steffens
Energy Prospectus Group
dan_s
 
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