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Black Stone Minerals LP (BSM)
:BSM
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Black Stone Minerals
(NYSE:BSM)
Select Model
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Rating:70Outperform
Price Target:―
Black Stone Minerals presents a mixed outlook. Strong cash flow and a solid balance sheet provide financial stability, while attractive valuation metrics and positive earnings guidance suggest potential upside. However, declining revenue and profitability, along with market volatility, pose challenges. The overall score reflects the balance between these strengths and risks.
Black Stone Minerals (BSM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.82B
Dividend Yield10.74%
Average Volume (3M)529.40K
Price to Earnings (P/E)11.5
Beta (1Y)0.43
Revenue Growth-8.06%
EPS Growth-22.61%
CountryUS
Employees115
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.53
Shares Outstanding211,852,970
10 Day Avg. Volume510,806
30 Day Avg. Volume529,398
Financial Highlights & Ratios
PEG Ratio-0.28
Price to Book (P/B)2.72
Price to Sales (P/S)7.00
P/FCF Ratio7.99
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue7.68
Enterprise Value/Gross Profit10.01
Enterprise Value/Ebitda12.46
Forecast
1Y Price Target
$13.00Price Target Upside-2.03% Downside
Rating ConsensusHold
Number of Analyst Covering3
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 Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments and challenges. The company announced significant new agreements and acquisitions, signaling potential future growth, particularly in natural gas production. However, current production growth has been slower than expected, leading to reduced distributions and revised guidance. The sentiment is balanced between optimism for future growth and current challenges.Q2-2025 Updates
Positive Updates
Development Agreement with Revenant
Blackstone Minerals announced a development agreement with Revenant and is marketing an additional 180,000 gross acre area. These efforts are expected to more than double drilling obligations over the next 5 years, providing significant natural gas growth.
Minerals and Royalty Acquisitions
The company added $31 million in minerals and royalty acquisitions during the quarter, bringing total acquisitions since September 2023 to about $172 million.
Net Income and EBITDA
Net income for the second quarter was $120 million with adjusted EBITDA of $84.2 million.
Positive Outlook for Natural Gas and Oil
The company maintains a constructive outlook for natural gas, supported by growing global demand for LNG, and has a robust oil portfolio across multiple basins.
Negative Updates
Reduction in Distribution
A distribution of $0.30 per unit for the quarter was announced, driven by slower natural gas production growth, primarily in the Haynesville/Bossier.
Slower-Than-Expected Natural Gas Production Growth
The revised 2025 production guidance reflects slower-than-expected natural gas production growth, particularly in the Shelby Trough and Haynesville/Bossier play.
Restructured Agreement with Aethon
The agreement with Aethon was restructured from mid-20s wells per year to high teens per year, which is part of a strategy to add more operators but contributes to slower immediate production growth.
Company Guidance
During the Blackstone Minerals Second Quarter 2025 Earnings Conference Call, the company provided updated guidance and insights into its operational strategies. The revised 2025 production guidance anticipates an average of 33,000 to 35,000 BOE per day, reflecting slower-than-expected natural gas production growth, particularly in the Shelby Trough and Haynesville/Bossier play. Despite a reduction in distribution to $0.30 per unit for the quarter, the company remains optimistic about future production growth, forecasting an incremental increase of 3,000 to 5,000 BOE per day in 2026. Key developments include a significant $31 million in minerals and royalty acquisitions during the quarter, bringing total acquisitions since September 2023 to approximately $172 million, and ongoing marketing of an additional 180,000 gross acre area, which is expected to more than double drilling obligations over the next five years. The company projects increased activity and production through agreements with operators like Revenant, with expected commencement in 2026, and in the Permian Basin with Coterra, supporting a constructive outlook for natural gas and enhanced long-term shareholder value.Black Stone Minerals Financial Statement Overview
Summary
Black Stone Minerals demonstrates strong cash flow and a solid balance sheet with no debt, enhancing financial stability. However, the decline in revenue and profitability in 2024 raises concerns about future growth prospects, despite strong cash management.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 437.90M | 439.43M | 501.10M | 663.60M | 359.26M | 342.75M |
| Gross Profit | 335.83M | 334.95M | 420.23M | 537.19M | 235.38M | 203.24M |
| EBITDA | 269.93M | 319.63M | 472.03M | 531.43M | 246.87M | 215.38M |
| Net Income | 223.35M | 271.33M | 422.55M | 476.48M | 181.99M | 193.35M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 1.22B | 1.27B | 1.27B | 1.25B | 1.24B |
| Cash, Cash Equivalents and Short-Term Investments | 2.42M | 2.52M | 70.28M | 4.31M | 8.88M | 1.80M |
| Total Debt | 63.00M | 25.00M | 0.00 | 10.00M | 89.00M | 121.00M |
| Total Liabilities | 173.87M | 89.47M | 49.54M | 61.27M | 184.29M | 185.01M |
| Stockholders Equity | 1.06B | 1.13B | 1.22B | 1.21B | 1.06B | 1.06B |
Cash Flow | ||||||
| Free Cash Flow | 272.66M | 384.83M | 501.44M | 412.42M | 242.25M | 276.99M |
| Operating Cash Flow | 349.42M | 389.04M | 521.25M | 424.98M | 256.88M | 281.81M |
| Investing Cash Flow | -101.34M | -112.24M | -19.74M | -1.22M | -14.32M | 151.25M |
| Financing Cash Flow | -286.11M | -344.57M | -435.54M | -428.34M | -235.48M | -439.38M |
Black Stone Minerals Technical Analysis
Positive
13.27
Price Trends
12.33
Positive
12.72
Positive
13.27
Negative
Market Momentum
0.26
Negative
71.22
Negative
91.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSM, the sentiment is Positive. The current price of 13.27 is above the 20-day moving average (MA) of 12.56, above the 50-day MA of 12.33, and below the 200-day MA of 13.27, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 71.22 is Negative, neither overbought nor oversold. The STOCH value of 91.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSM.
Black Stone Minerals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | 2.70B | 4.44 | 25.23% | 6.29% | 2.98% | 7.94% | |
70 Outperform | $2.82B | 11.52 | 24.31% | 10.74% | -8.06% | -22.61% | |
69 Neutral | 1.70B | -80.03 | 5.54% | 11.97% | -2.89% | -107.61% | |
67 Neutral | 3.24B | 41.74 | 6.24% | 4.61% | 31.01% | 39.51% | |
67 Neutral | 2.74B | 40.99 | 2.65% | 7.73% | -1.97% | ― | |
61 Neutral | 2.97B | 36.18 | -195.43% | 8.67% | 8.22% | 28.05% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
Performance Comparison
BSM
Black Stone Minerals
13.37
-0.18
-1.33%
CIVI
Civitas Resources
32.94
-15.45
-31.93%
NOG
Northern Oil And Gas
27.66
-6.07
-18.00%
SM
SM Energy
27.31
-11.47
-29.58%
CRGY
Crescent Energy Company Class A
9.77
-0.86
-8.09%
BKV
BKV Corporation
23.95
5.90
32.69%
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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.