Black Stone Minerals (BSM) Update - Jan 21

[dan_s]

I have updated my forecast model for BSM and posted to the EPG website.

BSM is the only MLP in our High Yield Income Portfolio.
> Revenues are split 60/40 between natural gas + NGLs / crude oil.
> Solid production growth since Q2 2022 and continuing in 2023 combined with their hedging program should allow them to maintain their cash distribution at $0.45/quarter ($1.90 for 2023). ~45% of 2023 natural gas is hedged at $5.10/mcf.
> Based on the January 20th closing price of $16.36, annualized yield is ~11.6% (partially taxed deferred).

TipRanks' price target is $19.50, which compares to my current valuation of $19.00.