Energy Prospectus

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.

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.

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

I established a position in the name

I can’t believe that ng is over 9!