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Black Stone Minerals (BSM)
NYSE:BSM
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Black Stone Minerals
(NYSE:BSM)73Outperform
Black Stone Minerals (BSM) vs. S&P 500 (SPY)
Market Cap
$3.11B
Dividend Yield10.17%
Average Volume (3M)499.80K
Price to Earnings (P/E)12.9
Beta (1Y)0.69
Revenue Growth-12.71%
EPS Growth-39.85%
CountryUS
Employees108
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)1.14
Shares Outstanding211,137,820
10 Day Avg. Volume650,556
30 Day Avg. Volume499,804
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.95
Price to Cash Flow (P/CF)9.20
P/FCF Ratio9.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.50Price Target Upside19.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Black Stone Minerals Business Overview & Revenue Model
Company DescriptionBlack Stone Minerals, L.P. is one of the largest oil and natural gas mineral and royalty companies in the United States. The company is primarily focused on maximizing the value of its extensive portfolio of mineral interests, which are spread across multiple resource plays in the country. Its core services involve managing and leasing these interests for oil and gas exploration and production, leveraging its vast asset base to generate sustainable income.
How the Company Makes MoneyBlack Stone Minerals makes money through the collection of royalties and lease bonus payments from its mineral and royalty interests. The company earns revenues when it leases its mineral interests to oil and gas exploration and production companies, who then extract resources from the land. These leases typically include royalty agreements that entitle Black Stone Minerals to a percentage of the revenue from the produced oil and gas. Additionally, the company periodically receives lease bonus payments as upfront fees when new leases are signed. Black Stone Minerals benefits from a diversified asset base across various basins, reducing its reliance on any single resource play and enhancing its revenue stability. The company also engages in strategic partnerships with operators to optimize the development of its assets, further contributing to its earnings.
Black Stone Minerals Financial Statement Overview
Summary
Black Stone Minerals exhibits strong cash flows and a stable balance sheet with no debt, which enhances its financial stability. However, declining revenue and profitability in 2024 raise concerns about future growth prospects. The company's ability to manage cash efficiently and maintain a strong equity position are positive aspects, but the recent dip in revenue and net income in 2024 necessitates attention.Income Statement
The income statement shows fluctuating revenue and profit margins over the years. Recent data indicates a decline in total revenue and net income from 2023 to 2024, leading to a negative revenue growth rate of -13.47%. The company's EBIT margin in 2024 is 62.99%, and its gross profit margin remains strong at 100% due to minimal cost of goods sold. However, the net profit margin for 2024 is 0% due to zero net income, reflecting potential issues in profitability.55
Neutral
Balance Sheet
The balance sheet reveals a strong equity position with no debt in 2024, resulting in a debt-to-equity ratio of 0 and an equity ratio of 68.01%, indicating financial stability. The company has improved its equity from the previous year, showcasing a solid balance sheet. However, historical data shows fluctuations in stockholders' equity, and the significant drop in equity in 2023 (to zero) highlights potential risks.70
Positive
Cash Flow
The cash flow statement shows robust operating cash flows, with an operating cash flow to net income ratio that implies strong cash generation ability even when net income is zero in 2024. Free Cash Flow remains positive, though it decreased from the previous year, indicating efficient cash management with a focus on generating and maintaining liquidity. The absence of debt further enhances financial flexibility.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 433.70M | 501.10M | 663.60M | 359.26M | 342.75M | Gross Profit |
| 329.22M | 420.23M | 537.19M | 235.38M | 203.24M | EBIT |
| 273.11M | 423.60M | 482.50M | 123.76M | 77.19M | EBITDA |
| 319.63M | 472.03M | 531.43M | 246.87M | 215.38M | Net Income Common Stockholders |
| 271.33M | 422.55M | 476.48M | 181.99M | 193.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.52M | 70.28M | 4.31M | 8.88M | 1.80M | Total Assets |
| 1.22B | 1.27B | 1.27B | 1.25B | 1.24B | Total Debt |
| 25.00M | 0.00 | 10.00M | 89.00M | 121.00M | Net Debt |
| 22.48M | -70.28M | 5.69M | 80.12M | 119.20M | Total Liabilities |
| 89.47M | 49.54M | 61.27M | 184.29M | 185.01M | Stockholders Equity |
| 828.96M | 0.00 | 911.45M | 765.27M | 760.61M |
| Cash Flow | Free Cash Flow | |||
| 384.83M | 501.44M | 412.42M | 242.25M | 276.99M | Operating Cash Flow |
| 389.04M | 521.25M | 424.98M | 256.88M | 281.81M | Investing Cash Flow |
| -112.24M | -19.74M | -1.22M | -14.32M | 151.25M | Financing Cash Flow |
| -344.57M | -435.54M | -428.34M | -235.48M | -439.38M |
Black Stone Minerals Technical Analysis
Negative
14.63
Price Trends
14.63
Negative
14.52
Positive
14.41
Positive
Market Momentum
<0.01
Positive
46.43
Neutral
40.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSM, the sentiment is Negative. The current price of 14.63 is below the 20-day moving average (MA) of 14.86, below the 50-day MA of 14.63, and above the 200-day MA of 14.41, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.43 is Neutral, neither overbought nor oversold. The STOCH value of 40.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BSM.
Black Stone Minerals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $30.60B | 69.71 | 41.73% | 0.37% | 11.75% | 12.18% | |
77 Outperform | $8.96B | 10.83 | 26.55% | 5.80% | 19.03% | 36.16% | |
73 Outperform | $3.11B | 12.86 | 23.12% | 10.17% | -12.71% | -39.85% | |
64 Neutral | $2.68B | 45.09 | 1.48% | 12.94% | 13.72% | -110.82% | |
62 Neutral | $1.43B | 14.14 | 32.48% | 10.67% | -1.39% | -23.38% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% |
* Energy Sector Average
Performance Comparison
BSM
Black Stone Minerals
14.63
0.85
6.17%
DMLP
Dorchester Minerals
29.58
0.74
2.57%
TPL
Texas Pacific Land
1,331.27
816.04
158.38%
VNOM
Viper Energy
40.35
6.73
20.02%
KRP
Kimbell Royalty Partners
13.52
-0.54
-3.84%
Black Stone Minerals Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -2.07% | Next Earnings Date: May 5, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with strong performance in oil assets and strategic acquisitions, despite challenges with natural gas price volatility and slight declines in production volumes. The company is optimistic about its 2025 prospects, supported by constructive pricing fundamentals and strategic drilling agreements.Highlights
Strong Oil and Gas Assets Performance
Despite weak natural gas pricing in the second half of 2024, Black Stone Minerals remained within production guidance and maintained distributions at $0.375 for Q4, supported by strong oil assets.
Significant Acquisitions
Black Stone Minerals acquired $43 million in minerals and royalty acquisitions during Q4, totaling $130 million since September 2023.
Solid Financial Metrics
Net income for Q4 was $46.3 million, with adjusted EBITDA at $90.1 million. For the full year 2024, net income was $271.3 million, and adjusted EBITDA totaled $380.9 million.
Positive Outlook for 2025
Encouraged by stronger natural gas pricing fundamentals and robust oil production, Black Stone Minerals expects increased production in 2025, driven by high-interest development activity.
Strategic Drilling and Development Agreements
Accelerated development agreements in the Louisiana Haynesville and Permian Basin expected to bring more wells online in 2025, signaling continued growth opportunities.
Lowlights
Volatility in Commodity Prices
The company faced continued volatility in natural gas prices throughout 2024, impacting production levels.
Slight Decline in Production Volumes
Mineral and royalty production decreased to 34,800 BOE per day in Q4 from 36,600 BOE per day in 2024, with total production volumes averaging 38,500 BOE per day for the full year.
Slight Increase in G&A Expenses Expected
General and administrative expenses are expected to increase slightly in 2025 due to recent promotions and planned additional hiring.
Company Guidance
During the Black Stone Minerals fourth-quarter and full-year 2024 earnings call, the company provided detailed guidance for 2025, emphasizing an expected increase in production from 2024 levels. Mineral and royalty production was reported at 34,800 BOE per day for Q4 and 36,600 BOE per day for the full year, while total production volumes were 36,100 BOE per day for Q4 and 38,500 BOE per day for the year. Net income for Q4 was $46.3 million, with an adjusted EBITDA of $90.1 million, whereas for the full year, net income stood at $271.3 million with adjusted EBITDA reaching $380.9 million. The company maintained a distribution of $0.375 per unit for the quarter or $1.50 on an annualized basis, with a distributable cash flow of $81.9 million, equating to a 1.03 times coverage. The 2025 guidance includes plans to leverage high-interest development activities, particularly in East Texas and Louisiana Haynesville, with significant rig operations projected, and anticipates maintaining lease bonus, operating expense, and production costs in line with 2024 metrics.Black Stone Minerals Corporate Events
Business Operations and StrategyFinancial Disclosures
Black Stone Minerals Reports 2024 Financial Results
Positive
Feb 25, 2025
Black Stone Minerals announced its financial results for the fourth quarter and full year of 2024, reporting a slight decrease in production volumes due to lower natural gas prices. Despite these challenges, the company maintained a stable distribution to shareholders and reduced its total debt significantly by the end of February 2025. Looking forward, Black Stone anticipates a positive 2025 with increased activity on high-interest acreage and expects a 2% growth in production driven by strong natural gas prices. The company plans to continue its mineral acquisition program, which is expected to provide long-term benefits to shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.