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Black Stone Minerals (BSM)
NYSE:BSM
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Black Stone Minerals
(NYSE:BSM)
Rating:70Outperform
Price Target:―
Black Stone Minerals (BSM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.88B
Dividend Yield11.01%
Average Volume (3M)352.33K
Price to Earnings (P/E)14.9
Beta (1Y)0.46
Revenue Growth-12.71%
EPS Growth-39.85%
CountryUS
Employees115
SectorEnergy
Sector Strength40
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.04
Shares Outstanding211,636,430
10 Day Avg. Volume436,555
30 Day Avg. Volume352,333
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)2.56
Price to Sales (P/S)0.00
P/FCF Ratio9.62
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue1.81
Enterprise Value/Gross Profit9.47
Enterprise Value/Ebitda1.91
Forecast
1Y Price Target
$14.00Price Target Upside3.78% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 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 | ||||
| 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 |
| 318.30M | 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
13.49
Price Trends
14.10
Negative
14.18
Negative
14.00
Negative
Market Momentum
-0.12
Positive
42.37
Neutral
19.58
Positive
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 13.49 is below the 20-day moving average (MA) of 13.80, below the 50-day MA of 14.10, and below the 200-day MA of 14.00, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 19.58 is Positive, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.79B | 4.40 | 29.41% | 6.09% | 24.27% | 5.01% | |
70 Outperform | $2.88B | 14.86 | 19.93% | 11.01% | -12.71% | -39.85% | |
65 Neutral | $3.11B | 67.33 | 3.88% | 4.54% | 45.41% | -37.84% | |
64 Neutral | $2.85B | 36.26 | 148.57% | 8.44% | 10.03% | 65.28% | |
63 Neutral | $1.60B | 45.09 | 2.88% | 13.15% | 3.20% | -91.39% | |
61 Neutral | $2.73B | 34.71 | 2.86% | 7.95% | 7.18% | ― | |
57 Neutral | $7.14B | 3.33 | -3.45% | 5.75% | 0.66% | -50.76% |
* Energy Sector Average
Performance Comparison
BSM
Black Stone Minerals
13.49
-0.77
-5.40%
NOG
Northern Oil And Gas
26.90
-10.73
-28.51%
USAC
USA Compression
24.66
2.69
12.24%
KRP
Kimbell Royalty Partners
13.02
-1.67
-11.37%
STR
Sitio Royalties
17.18
-4.02
-18.96%
KGS
Kodiak Gas Services, Inc.
34.21
8.53
33.22%
Black Stone Minerals Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: -2.67%|
Next Earnings Date:Aug 04, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with maintained distributions, solid production levels, and strategic acquisitions, despite a slight dip in distribution coverage due to a one-time expense.Q1-2025 Updates
Positive Updates
Maintained Quarterly Distribution
Despite recent volatility in commodity prices and global market dynamics, the company maintained its quarterly distribution of $0.375 per unit, which is $1.50 on an annualized basis.
Encouraging Activity in Natural Gas and Production
Mineral and royalty production was 34,200 BOE per day, with total production volumes of 35,500 BOE per day, in line with the previous quarter. The strength in natural gas prices is expected to drive additional near-term gas-weighted activity.
Positive Developments in Shelby Trough and Haynesville
Aethon is operating 3 rigs on the company's Shelby Trough acreage, with 11 gross wells turned to sales and another 17 expected for the year. In Louisiana Haynesville, 2 incremental high-interest wells turned to sales.
Significant Acquisitions Since September 2023
The company has been active in acquiring over $160 million in minerals, focusing on the Shelby Trough, indicating a strong long-term natural gas strategy.
Negative Updates
Slightly Lower Distribution Coverage
Distributable cash flow for the quarter was $73.7 million, representing 0.93 times coverage, slightly lower due to a seismic license purchase.
Company Guidance
During the Black Stone Minerals first quarter 2025 earnings call, the company provided several financial metrics and operational updates. They reported a net income of $15.9 million with an adjusted EBITDA of $82.2 million for the quarter. Mineral and royalty production was at 34,200 BOE per day, while total production volumes reached 35,500 BOE per day. The company maintained its quarterly distribution of $0.375 per unit, amounting to $1.50 on an annualized basis, and generated a distributable cash flow of $73.7 million, representing a 0.93 times coverage for the quarter. The call highlighted ongoing development activities, including 11 gross wells turned to sales by Aethon on the Shelby Trough acreage with 17 more expected by year-end, and two high-interest wells by EXCO. Additionally, Black Stone Minerals noted continued benefits from accelerated drilling agreements in the Louisiana Haynesville and significant development in the Permian region. Despite recent volatility in commodity prices, the company remains focused on strategic acquisitions and long-term growth, particularly in natural gas regions.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.