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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
$2.62B
Dividend Yield11.26%
Average Volume (3M)545.67K
Price to Earnings (P/E)10.7
Beta (1Y)0.40
Revenue Growth-8.06%
EPS Growth-22.61%
CountryUS
Employees115
SectorEnergy
Sector Strength43
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.53
Shares Outstanding211,852,970
10 Day Avg. Volume513,053
30 Day Avg. Volume545,671
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue7.68
Enterprise Value/Gross Profit10.01
Enterprise Value/Ebitda12.46
Forecast
1Y Price Target
$13.00Price Target Upside2.77% Upside
Rating ConsensusHold
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 Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: 3.18%|
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant achievements in expansion and acquisitions, coupled with challenges in production growth and distribution decreases. There is a positive outlook for future growth and development, but current setbacks in production growth and distribution impact the sentiment.Q2-2025 Updates
Positive Updates
Expansion and Development in Shelby Trough
The team has expanded the Shelby Trough and extended towards the Western Haynesville, securing a development agreement with Revenant and marketing an additional 180,000 gross acre area. These developments are expected to more than double drilling obligations in the area over the next five years.
Minerals and Royalty Acquisitions
Blackstone Minerals added $31 million in minerals and royalty acquisitions during the quarter, bringing total acquisitions since September 2023 to about $172 million.
Solid Financial Performance
Net income for the second quarter was $120 million, with adjusted EBITDA at $84.2 million. Distributable cash flow was $74.8 million, representing a 1.18x coverage for the period.
Future Production Growth
Forecasted production growth in 2026 of an incremental 3,000 to 5,000 BOE per day over 2025 revised guidance, with ongoing development agreements and activity in the Shelby Trough and Permian Basin.
Robust Oil Portfolio
The company's robust oil portfolio across multiple basins provides a solid foundation for long-term growth, supported by growing global demand for LNG.
Negative Updates
Distribution Decrease
A distribution of $0.30 per unit was announced for the quarter, reduced due to slower natural gas production growth, primarily in the Haynesville/Bossier.
Revised 2025 Production Guidance
The revised 2025 production guidance reflects slower-than-expected natural gas production growth, particularly in the Shelby Trough and Haynesville/Bossier play, with expected average production between 33,000 and 35,000 BOE per day for the full year.
Subdued Activity Response
There was a subdued activity response to higher natural gas prices in the first half of the year, affecting production trajectory.
Company Guidance
During the Blackstone Minerals Second Quarter 2025 Earnings Conference Call, the company provided several key metrics and forward-looking guidance. They reported mineral royalty production of 33,200 BOE per day and total production volumes of 34,600 BOE per day for the quarter. Net income was $120 million, with adjusted EBITDA at $84.2 million. The company declared a distribution of $0.30 per unit for the quarter, equating to $1.20 on an annualized basis, with distributable cash flow noted at $74.8 million, representing a 1.18x coverage. For 2025, they revised production guidance to average between 33,000 and 35,000 BOE per day, acknowledging slower-than-expected natural gas production growth, particularly in the Shelby Trough and Haynesville/Bossier play. However, they forecast a production increase of 3,000 to 5,000 BOE per day in 2026 over the revised 2025 guidance, driven by new development agreements and high-interest activities. The company also highlighted the addition of $31 million in minerals and royalty acquisitions during the quarter, bringing total acquisitions since September 2023 to approximately $172 million. These efforts, along with the development agreement with Revenant and ongoing marketing efforts, are expected to provide significant natural gas growth and a path to future distribution increases.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 | 0.00 | 911.45M | 765.27M | 760.61M |
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
12.65
Price Trends
12.67
Negative
13.13
Negative
13.49
Negative
Market Momentum
-0.07
Negative
57.46
Neutral
40.07
Neutral
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 12.65 is above the 20-day moving average (MA) of 12.17, below the 50-day MA of 12.67, and below the 200-day MA of 13.49, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 40.07 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.40B | 4.05 | 27.17% | 7.00% | 2.98% | 7.94% | |
70 Outperform | $2.62B | 10.70 | 24.31% | 11.26% | -8.06% | -22.61% | |
69 Neutral | $3.04B | 39.00 | 6.16% | 4.93% | 31.01% | 39.51% | |
68 Neutral | $2.99B | 36.71 | 314.74% | 8.54% | 8.22% | 28.05% | |
68 Neutral | $1.77B | 45.09 | 4.52% | 11.75% | -2.89% | -107.61% | |
67 Neutral | $2.81B | 42.16 | 2.55% | 7.43% | -1.97% | ― | |
65 Neutral | $14.83B | 8.53 | 3.10% | 5.45% | 4.59% | -62.54% |
* Energy Sector Average
Performance Comparison
BSM
Black Stone Minerals
12.65
-0.51
-3.88%
NOG
Northern Oil And Gas
24.86
-12.54
-33.53%
USAC
USA Compression
24.58
4.42
21.92%
KRP
Kimbell Royalty Partners
14.47
-0.06
-0.41%
STR
Sitio Royalties
18.83
-2.13
-10.16%
KGS
Kodiak Gas Services, Inc.
34.90
9.86
39.38%
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.