Is Black Stone (BSM) Poised for an Earnings Beat in Q3?
Black Stone Minerals, L.P. BSM is set to release third-quarter results on Oct 30. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 44 cents per unit on revenues of $130.6 million.
Let’s delve into the factors that might have influenced the Haynesville-focused royalty trust partnership’s performance in the September quarter. But it’s worth taking a look at BSM’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, this Houston, TX-based oil and gas mineral rights owner missed the consensus mark due to lower-than-expected production. Black Stone Minerals had reported earnings per unit of 35 cents, below the Zacks Consensus Estimate of 37 cents. However, revenues of $117 million came in 0.6% above the consensus mark on strong oil and condensate sales.
BSM beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, resulting in an earnings surprise of 20.9%, on average. This is depicted in the graph below:
Black Stone Minerals, L.P. Price and EPS Surprise
Black Stone Minerals, L.P. price-eps-surprise | Black Stone Minerals, L.P. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line has been revised 2.2% downward in the past seven days. The estimated figure indicates a 4.4% deterioration year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 39.7% decrease from the year-ago period.
Factors to Consider
Black Stone Minerals is expected to have benefited from the improvement in oil realizations. As a reflection of this price boost, the Zacks Consensus Estimate for the third-quarter average realized price for oil and condensate is pegged at $79 per barrel, up from a quarter earlier when the partnership had fetched $72.76. The sequential increase in realizations has most likely buoyed Black Stone Mineral’s revenues and cash flows.
On a further bullish note, BSM is likely to have experienced an increase in output on the back of increased drilling activity and production growth across its mineral position. Consequently, the consensus mark for the partnership’s average Q3 volume is pegged at 38.49 thousand barrels of oil equivalent per day, up from the previous quarter’s level of 36.20 thousand barrels per day.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Black Stone Minerals this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
BSM has an Earnings ESP of +3.05% and a Zacks Rank #2.
Other Stocks to Consider
Black Stone Minerals is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Chevron Corporation CVX has an Earnings ESP of +1.08% and a Zacks Rank #2. The firm is scheduled to release earnings on Oct 27.
Chevron beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of 4.8%, on average. Valued at around $315.8 billion, CVX has lost 3.6% in a year.
California Resources Corporation CRC has an Earnings ESP of +22.05% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, California Resources saw the Zacks Consensus Estimate for 2023 move up 1.4%. Valued at around $3.7 billion, CRC has gained 24.6% in a year.
Murphy USA MUSA has an Earnings ESP of +0.57% and a Zacks Rank #2. The firm is scheduled to release earnings on Nov 1.
Over the past 60 days, Murphy USA saw the Zacks Consensus Estimate for 2023 move up 2.8%. Valued at around $7.8 billion, MUSA has gained 22.4% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Chevron Corporation (CVX) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
California Resources Corporation (CRC) : Free Stock Analysis Report
Black Stone Minerals, L.P. (BSM) : Free Stock Analysis Report
