Brigham Minerals (MNRL) Valuation Update - June 2

[dan_s]

We will be publishing an updated profile on MNRL on Friday morning. I have posted my updated forecast/valuation model for the Company to the EPG website.

MNRL is one of four minerals companies in our High Yield Income Portfolio.
> All four of them pay "variable" quarterly dividends that are a high percentage of their FCF.
> Minerals companies generate a lot of free cash flow.
> MNRL does not hedged their production.
> Management has a lot of skin in the game and they have a very strong balance sheet, which is why they are not required to hedge.
> Thanks to acquisitions and lots of new wells coming on-line this year, their production should be up more than 35% YOY
> They have raised quarterly dividends for seven straight quarters and that trend should continue.

My current valuation is $38.00/share, with a lot of upside if they keep growing production which is their plan.

[dan_s]

The updated profile has been posted to the EPG Forum.

MNRL is one of my Top Picks in our High Yield Income Portfolio. I like the combination of rising quarterly dividends and lots of capital appreciation.

NONE of their production is hedged, which equals more risk but a lot of upside.

[SergioSays]

They do a really good job telling their story in that IR deck. Sounds like a solid management team.

[Fraser921]

I established a position in the name

I can’t believe that ng is over 9!