BSM - Black Stone Minerals, L.P.

NYSE - NYSE Delayed Price. Currency in USD
11.92
-0.04 (-0.33%)
At close: 4:01PM EST
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Previous Close11.96
Open12.00
Bid11.94 x 900
Ask11.96 x 900
Day's Range11.77 - 12.04
52 Week Range11.77 - 18.77
Volume363,308
Avg. Volume277,872
Market Cap3.615B
Beta (3Y Monthly)0.58
PE Ratio (TTM)7.80
EPS (TTM)1.53
Earnings DateFeb 2, 2020 - Feb 5, 2020
Forward Dividend & Yield1.48 (12.42%)
Ex-Dividend Date2019-11-13
1y Target Est17.86
  • 3 Buy-Rated Stocks with Over 11% Dividend Yield
    TipRanks

    3 Buy-Rated Stocks with Over 11% Dividend Yield

    Income-minded investors are naturally drawn to dividends. These payouts from companies to shareholders are a natural way to share income with full ownership of the company, as well as a way to induce more investors to become shareholders. A strong dividend – one that is reliable, with a high yield – is steady source of return on a stock investment.We’ve used TipRanks’ Stock Screener tool to search the market for Buy-rated investments with reliable high-yield dividend payouts. All three companies are in the energy sector, exploiting the rich oil and gas reserves which the American fracking boom has unlocked. We’ll look at each of them to see how their dividends measure up, and if the payout appears sustainable.Black Stone Minerals (BSM)With Black Stone, we get into Texas. Everything about Texas is big, including the oil industry. Houston-based Black Stone operates in the oil- and gas-rich Eagle Ford Shale, as well as across the Southeast, in the Dakota’s Bakken formation, and in the gas regions of Appalachia. Overall, the company controls production sites in 60 basins in 40 states.BSM reported Q3 earnings after market on November 4, and showed an EPS of 32 cents, a 10% beat of the 29-cent estimate. Revenues just missed expectations, however, coming in at $137.4 million against the forecast of $139.5 million. Investors didn’t seem worried by the revenue miss, however, as shares gained 1.68% that same day.While the earnings beat was welcome news, investors are also interested in the dividend. BSM pays out a yield of 11.3%, and has been growing that dividend for the last three years. The current quarterly payment is 37 cents.A careful reader will note that the current dividend payment is higher than the EPS, and correctly point out that this implies an unsustainable payout ratio. However, as Piper Jaffray analyst Pearce Hammond points out, “BSM remains very disciplined on acquiring minerals. The higher distribution yield and resulting higher cost of capital make it more challenging on getting deals done relative to peers with a lower distribution yield… BSM has a solid balance sheet with a leverage ratio of 1.1x.”Strong acquisition and low leverage lead Hammond to give a $21 price target, indicating confidence in a 57% upside – that would easily make the dividend sustainable. (To watch Hammond's track record, click here)4-star analyst Eduardo Seda, of Jones Trading, agrees that BSM has a rosy mid- to long-term outlook for growth. He writes, “BSM is One of the Largest Owners and Managers of Crude Oil and Natural Gas Mineral and Royalty Interests in the U.S… We note that BSM had recently raised its production guidance for full-year 2019 to a range of 47.5 MBoe/d to 50.5 MBoe/d, a 5% increase midpoint to midpoint from prior guidance…” Seda’s $22 price target suggests a 65% upside potential.Overall, BSM holds a Strong Buy from the analyst consensus. In the last three months, 3 analysts have given the stock Buy ratings, against 1 who has set a Hold. Shares are currently trading for $12.69, so the $19.50 average price target implies an upside of 52%. (See Black Stone stock analysis on TipRanks)EQM Midstream Partners (EQM)EQM bills itself as the low-cost service provider to the natural gas industry in the Appalachian basin, one of the richest natural gas regions in the United States. The company owns and operates natural gas pipeline and storage facilities across the basin, in western Pennsylvania, West Virginia, and Ohio. In addition, EQM operates water services, providing water supply and waste-water disposal for the fracking industry.An essential niche in a profitable industry should equal a cash-flush company, but EQM has been facing serious headwinds. Earnings are forecast to drop this quarter on a year-over-year basis as capital expenditures shown a heavy increase in the last 15 months. In addition, the company’s major project, the MVP pipeline, is not yet complete and faces delays from legal and regulatory issues. Management has not been forthcoming on a timeline for resolution. Finally, EQM is heavily leveraged – long-term debt has increased 41% over the past hear, to $4.88 billion, and the company has $1 billion outstanding on its short-term credit facility of $3 billion.All of this points to a company that is using debt to finance current projects on faith in future profits. While this is not unusual, 2020 is an election year, and most of the Democratic candidates are promising to shut down the fracking industry and curtail fossil fuels generally. With both the business and political fronts growing cloudy, what will bring in investors?Income. EQM pays out a 15% dividend yield, and even after the shares’ recent depreciation, the quarterly payment is still $1.16. Compare this to the S&P average yield of just 2%, and you immediately see the appeal. The company has been increasing the dividend steadily for the last seven years; in November 2012, the quarterly payment stood at 35 cents. Finding reliable payments and steady increase are the keys to successful dividend-based income investing.There is a cloudy spot – the payout ratio, the comparison of the dividend payout to the earnings per share – is 103%. Normally, this would not be sustainable, but the number is based on previous earnings, not forward estimates. A look at EQM’s most recent Buy rating, from UBS 4-star analyst Shneur Gershuni, shows why the high payout ratio may not be a deciding factor.Gershuni says, “Given EQM's 10% decline since early August, we are upgrading EQM to Buy from Neutral. We believe the scenario of MVP being cancelled is adequately reflected at these levels and believe the base business is priced at a discount with MVP in-service providing upside to our current price target. In the current volatile market conditions within energy, we favour midstream companies … that connect well-head to end markets.” In other words, all the headwinds mentioned above are baked into the stock price, which has bottomed out.Gershuni sees EQM rising in the mid-term, and his $36 price target, implying 17% upside, reflects that. (To watch Gershuni's track record, click here)Overall, EQM gets a Moderate Buy from the analyst consensus. Shares are selling for $30, and the average price target of $39 suggests an upside of 31%. (See EQM stock analysis on TipRanks)Equitrans Midstream (ETRN)A spin-off of the natural gas producer EQT, Equitrans Midstream took on the parent company’s pipeline and services operations. As the name implies, Equitrans now handles the midstream operations while parent EQT focuses on drilling. ETRN has been operating independently since mid-2018. It has beaten earnings estimates, substantially, in two of the three quarters it has reported so far.Equitrans operates natural gas gathering and transmission services in the Appalachian basin, as well as water services. In this respect, it is much like EQM above. In fact, like EQM, Equitrans is also a partner in the MVP pipeline project, and faces similar regulatory headwinds and delays – issues that have pushed the stock price down in recent weeks.These are not the only similarities between the two companies. ETRN is another high-yield dividend payer, offering 12.7% annualized, for a quarterly payment of 45 cents per share. And again, the payout ratio of 117%, at first glance, shows cause for concern.That concern, however, may be short lived. ETRN is to release earnings November 5, and predictions now are for an EPS of 35 cents – up 34% from previous estimates. In the last quarter, ETRN beat the forecast by 50%.UBS' Shneur Gershuni, linked above, sees this stock as another buying proposition, and for similar reasons to EQM. He writes of ETRN, “Given ETRN's 12% decline since early August, we are upgrading ETRN to Buy from Neutral… Our upside scenario reflects full MVP in-service, 10% gathering volume growth, and no negative restructuring of gathering contracts implying a valuation of $25.”Gershuni sets a $15 price target, which is conservative given his comments. It suggests a modest upside of 3.5% for the stock.ETRN has a Moderate Buy consensus rating, and a 21% upside potential, based on an average price target of $17 and a current share price of $14.50. (See ETRN stock analysis on TipRanks)

  • Business Wire

    Black Stone Minerals, L.P. Reports Third Quarter Results

    Black Stone Minerals, L.P. today announces its financial and operating results for the third quarter of 2019.

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    GuruFocus.com

    52-Week Company Lows

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  • Is Black Stone Minerals LP (BSM) Going To Burn These Hedge Funds ?
    Insider Monkey

    Is Black Stone Minerals LP (BSM) Going To Burn These Hedge Funds ?

    While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, increasing oil prices and deteriorating expectations towards the resolution of the trade war with China, many smart money investors kept their cautious approach regarding the current bull run in the second quarter and hedging or reducing many of […]

  • Business Wire

    Black Stone Minerals, L.P. Declares Distribution for Common Units and Schedules Earnings Call to Discuss Third Quarter 2019 Results

    Black Stone Minerals, L.P. today declares the distribution attributable to the third quarter of 2019. Additionally, the Partnership announces the date of its third quarter of 2019 earnings call.

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  • GuruFocus.com

    Johns Hopkins University Buys Black Stone Minerals LP, Dropbox Inc

    Investment company Johns Hopkins University (Current Portfolio) buys Black Stone Minerals LP, Dropbox Inc during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Johns Hopkins University. Continue reading...

  • Thomson Reuters StreetEvents

    Edited Transcript of BSM earnings conference call or presentation 6-Aug-19 2:00pm GMT

    Q2 2019 Black Stone Minerals LP Earnings Call

  • Analyzing the Top 5 MLPs That Analysts Recommend
    Market Realist

    Analyzing the Top 5 MLPs That Analysts Recommend

    In this article, we'll look at five MLPs with at least 90% buy ratings: EPD, MPLX, Energy Transfer, Viper Energy Partners, and Black Stone Minerals.

  • GuruFocus.com

    Northwestern University Buys Black Stone Minerals LP, Plains All American Pipeline LP

    Investment company Northwestern University (Current Portfolio) buys Black Stone Minerals LP, Plains All American Pipeline LP during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Northwestern University. Continue reading...

  • Black Stone Minerals LP (BSM) Q2 2019 Earnings Call Transcript
    Motley Fool

    Black Stone Minerals LP (BSM) Q2 2019 Earnings Call Transcript

    BSM earnings call for the period ending June 30, 2019.

  • PR Newswire

    Public & Private Oil & Gas Companies Scheduled for The Oil & Gas Conference® Represent $158 Billion in Energy Industry Market Capitalization

    The event is EnerCom's 24th annual Denver investment conference. At this year's conference, c-level leadership of leading oil and gas companies will present their plans for drilling and completing wells, discuss well results and capital efficiency, and estimate capital expenditures and production for the balance of 2019 and into 2020.

  • PR Newswire

    Cushing® Asset Management and Swank Capital Announce a Constituent Change to The Cushing® MLP Market Cap Index

    DALLAS , July 22, 2019 /PRNewswire/ -- Cushing ® Asset Management, LP, and Swank Capital, LLC, and announce an upcoming interim change to the constituents of The Cushing ® MLP Market Cap Index (the "Index"). ...

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    Cushing® Asset Management and Swank Capital Announce Rebalancing of the Cushing® MLP High Income Index

    DALLAS , July 5, 2019 /PRNewswire/ -- Cushing ® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing ® MLP High Income Index (the "Index") as part ...

  • Moving Average Crossover Alert: Black Stone Minerals
    Zacks

    Moving Average Crossover Alert: Black Stone Minerals

    Black Stone Minerals could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front.

  • PR Newswire

    EnerCom Posts Presenter Schedule for Day Two of The Oil & Gas Conference® 2019

    70+ oil & gas industry management teams will discuss 2019-2020 operations at EnerCom's 24th Denver energy investment conference DENVER , June 19, 2019 /PRNewswire/ --  EnerCom has released the presentation ...

  • PR Newswire

    Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® MLP Market Cap Index

    DALLAS , June 14, 2019 /PRNewswire/ -- Cushing ® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing ® MLP Market Cap Index (the "Index") as part ...

  • Business Wire

    Black Stone Minerals, L.P. Completes Conversion of Subordinated Units into Common Units

    Black Stone Minerals, L.P. (BSM) (“Black Stone Minerals,” “BSM,” or “the Partnership”) announces that the Partnership’s subordinated units automatically converted into common units on a one-for-one basis earlier today with the expiration of the Subordination Period (as defined in Black Stone Minerals’ First Amended and Restated Agreement of Limited Partnership, as amended).

  • Business Wire

    Black Stone Minerals, L.P. Announces Participation in Upcoming Investor Relations Events

    Black Stone Minerals, L.P. today announces its participation in several upcoming investor relations events. Members of executive management wil

  • Thomson Reuters StreetEvents

    Edited Transcript of BSM earnings conference call or presentation 7-May-19 2:00pm GMT

    Q1 2019 Black Stone Minerals LP Earnings Call