BSM Stock Intrinsic Value – Black Stone Minerals’ Low-Priced Hedges, Development Deals, and Austin Chaulk Acreage Position it for Growth and Optionality.
February 10, 2023
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BSM Stock Intrinsic Value – Black Stone Minerals ($NYSE:BSM) (BSM) is one of the leading royalty interest companies in the United States. The company’s low-priced hedges, development deals, and Austin Chaulk acreage position it for growth and optionality. This year and next year, BSM has rolled out higher-yielding hedges which indicates potential for future growth. Its Shelby Trough assets have enabled the company to produce more oil and natural gas, helping to drive its profits.
In addition, its Austin Chaulk acreage provides BSM with a strategic option and the opportunity to develop more resources in the near future. As a royalty interest company, BSM is shielded from the same inflationary pressures that traditional E& P companies are exposed to. This gives it an advantage when it comes to financing and capitalizing on new opportunities. Furthermore, BSM’s low-priced hedges offer investors an attractive return on their investments while providing them with protection against market volatility. BSM continues to make strategic investments in order to maximize its potential for growth and optionality. With its wide portfolio of properties and its ability to capitalize on new opportunities, BSM is well positioned to continue delivering strong returns for its investors.
Price History
On Wednesday, the stock opened at $16.0 and closed at $16.0, up by 0.1% from its closing price of 16.0. This increase demonstrates the company’s growth potential despite the current market conditions. The company’s low-priced hedges provide protection against market volatility, allowing it to maintain a steady income stream while remaining flexible to take advantage of new opportunities. Furthermore, Black Stone Minerals has signed several development deals, which have enabled it to expand its operations and increase revenue.
Finally, its position in the Austin Chaulk acreage has provided the company with a strategic edge in the industry, allowing it to capitalize on the growth opportunities in this region. The company is well-positioned to benefit from the current market conditions and capitalize on the potential for expansion. This positions the company well for potential growth in the future, providing investors with an attractive option for their portfolio. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BSM. More…
| Total Revenues | Net Income | Net Margin |
| 612.65 | 406.45 | 69.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BSM. More…
| Operations | Investing | Financing |
| 342 | -1.1 | -343.33 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BSM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.27k | 149.14 | 5.36 |
Key Ratios Snapshot
Some of the financial key ratios for BSM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.0% | 6.2% | 70.7% |
| FCF Margin | ROE | ROA |
| 53.8% | 25.0% | 21.3% |
Analysis – BSM Stock Intrinsic Value
GoodWhale has conducted an analysis of BLACK STONE MINERALS’s wellbeing. Our proprietary Valuation Line has calculated the intrinsic value of the company’s shares at around $17.7. However, the stock is currently trading at $16.0, indicating that it is undervalued by 9.4%. This means there is an opportunity to capitalize on the stock’s current market situation. The Valuation Line is based on a variety of factors, including fundamental analysis of the company’s financial performance and historical share prices. The analysis also takes into account the macroeconomic environment, including industry trends and the performance of competing companies. Our analysis of BLACK STONE MINERALS’s wellbeing is based on the most up-to-date data available. We recommend that investors carefully consider the current market conditions before making any decisions regarding BLACK STONE MINERALS stock. While there may be a chance to capitalize on the current undervalued price, there is also a risk that the stock could lose value in the future. In order to make a fully informed decision, investors should conduct their own research into BLACK STONE MINERALS and the current market conditions. Doing so will help them decide whether or not investing in the company is a wise move. More…
Peers
In the world of oil and gas exploration and production, there are many companies that compete for the same resources. Black Stone Minerals LP is one of these companies, and its main competitors are Falcon Minerals Corp, ProAm Explorations Corp, Dorchester Minerals LP. All of these companies are in the business of acquiring, developing, and operating oil and gas properties.
– Falcon Minerals Corp ($TSXV:PMX)
Ampro is a Canadian company that explores for and develops mineral properties. It has a portfolio of projects in Quebec and Newfoundland & Labrador, Canada. The company’s market capitalization is $413.66 thousand and it has a negative return on equity of 2.84%.
– ProAm Explorations Corp ($NASDAQ:DMLP)
Dorchester Minerals is a publicly traded oil and gas royalty, mineral, and leasehold interest company. The company was founded in 1971 and is headquartered in Dallas, Texas. Dorchester Minerals LP has a market cap of 1.13B as of 2022, a Return on Equity of 39.37%. The company owns interests in producing and non-producing oil, natural gas, and minerals properties in the United States and Canada. Dorchester Minerals’ properties are located in Texas, Louisiana, Oklahoma, New Mexico, Wyoming, Colorado, North Dakota, Montana, Utah, California, Kansas, and Alberta.
Summary
Black Stone Minerals is an attractive investment opportunity due to its acquisition of low-cost hedges, development deals, and acreage in Austin Chalk. The company has positioned itself for growth and optionality through these investments, as well as its portfolio of mineral and royalty interests. Black Stone Minerals offers a wide range of industry-leading expertise and established relationships within the oil and gas industry, making it an attractive investment for those seeking quality exposure to the sector. The company is well-positioned to take advantage of market conditions and capitalize on new opportunities, providing investors with a reliable source of income and potential for capital appreciation.
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