Black Stone Minerals (BSM) Updated Valuation - Feb 23

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

Black Stone Minerals (BSM) Updated Valuation - Feb 23

Post by dan_s »

At the time of this post BSM was trading at $15.45.

I just posted my updated forecast/valuation model for BSM to the EPG website.

BSM is the only MLP in our High Yield Income Portfolio and it is heavily weighted to natural gas.
> They reported strong Q4 results, the balance sheet is now in great shape and there is a lot of drilling activity on their minerals.
> Production increased significantly in Q3 and Q4 2022.
> More than 50% of their 2023 natural gas production is hedged at an average price over $5.10/MMBtu
> 2023 cash distributions should be $1.90/unit for annualized yield of 12.3%, partially tax deferred.

My updated valuation is $20.00/unit.

TipRanks: "In the last 3 months, 4 ranked analysts set 12-month price targets for BSM. The average price target among the analysts is $19.33. The 4 price targets range from $18 to $21."

We will be publishing an update profile on BSM tomorrow morning.
Dan Steffens
Energy Prospectus Group
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