BSM - Black Stone Minerals Remains A Great Energy Play

2024-02-06 13:50:47 ET

Summary

• Black Stone Minerals is a large owner and manager of oil and natural gas mineral interests in the US.
• The company's earnings are arguably more predictable than energy producers as they have a relatively small cost base and no leverage currently.
• BSM's valuation suggests it is attractively priced as a debt-free royalty play on US energy.
• A buyback of units may provide a catalyst for the units to re-rate if energy prices remain broadly stable.

Black Stone Minerals, L.P. ( BSM ) is an attractive energy royalty play. It is one of the largest owners and managers of oil and natural gas mineral interests in the United States. The company has a diversified asset base and long-lived and often non-cost-bearing mineral and royalty interests. BSM's interests are spread across 41 states in the continental U.S., encompassing major onshore producing basins and active resource plays. However, note that it is an MLP so you will get a K-1....

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