Black Stone Minerals (BSM) Valuation Update - May 7

[dan_s]

At the time of this post BSM was trading for $13.86. Quarterly dividends are $0.375 ($1.50 per year) for annualized yield of 10.8%.

Q1 results were below my forecast, but production should ramp up since it is heavily weighted to natural gas.

Production mix is 77.5% natural gas + NGLs, which BSM reports on a combined basis.

My valuation is $16.00/unit. BSM is a Master Limited Partnership.

TipRanks price target is $15.00

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