Black Stone Minerals (BSM) AI Stock Analysis

• Market Cap: $3.01B
• Dividend Yield: 10.96%
• Average Volume (3M): 459.05K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.60
• Revenue Growth: -12.71%
• EPS Growth: -39.85%
• Country: US
• Employees: 115
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.14
• Shares Outstanding: 211,137,820
• 10 Day Avg. Volume: 529,934
• 30 Day Avg. Volume: 459,046
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.23
• Price to Cash Flow (P/CF): 9.50
• P/FCF Ratio: 9.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.00
• Price Target Upside: 14.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Black Stone Minerals presents a solid financial position with strong cash flows and no debt, although declining revenue and profitability are concerns. The positive technical indicators and reasonable valuation, coupled with a promising outlook from the earnings call, support a stable stock performance. However, attention should be given to the volatility in commodity prices and potential operational challenges.

Black Stone Minerals Business Overview & Revenue Model

Company Description

Black 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 Money

Black 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 Financial Statement Overview

Summary

Black Stone Minerals exhibits strong cash flows and a stable balance sheet with no debt, which enhances its financial stability. However, declining revenue and profitability in 2024 raise concerns about future growth prospects. The company's ability to manage cash efficiently and maintain a strong equity position are positive aspects, but the recent dip in revenue and net income in 2024 necessitates attention.

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.

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.

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
433.70M	501.10M	663.60M	359.26M	342.75M
	Gross Profit
329.22M	420.23M	537.19M	235.38M	203.24M
	EBIT
273.11M	423.60M	482.50M	123.76M	77.19M
	EBITDA
319.63M	472.03M	531.43M	246.87M	215.38M
	Net Income Common Stockholders
271.33M	422.55M	476.48M	181.99M	193.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.52M	70.28M	4.31M	8.88M	1.80M
	Total Assets
1.22B	1.27B	1.27B	1.25B	1.24B
	Total Debt
25.00M	0.00	10.00M	89.00M	121.00M
	Net Debt
22.48M	-70.28M	5.69M	80.12M	119.20M
	Total Liabilities
89.47M	49.54M	61.27M	184.29M	185.01M
	Stockholders Equity
828.96M	0.00	911.45M	765.27M	760.61M
Cash Flow		Free Cash Flow
384.83M	501.44M	412.42M	242.25M	276.99M
	Operating Cash Flow
389.04M	521.25M	424.98M	256.88M	281.81M
	Investing Cash Flow
-112.24M	-19.74M	-1.22M	-14.32M	151.25M
	Financing Cash Flow
-344.57M	-435.54M	-428.34M	-235.48M	-439.38M

Black Stone Minerals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSM, the sentiment is Negative. The current price of 14.01 is below the 20-day moving average (MA) of 14.80, below the 50-day MA of 14.79, and below the 200-day MA of 14.42, indicating a bearish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 57.93 is Neutral, neither overbought nor oversold. The STOCH value of 44.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BSM.

Black Stone Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSM	73 Outperform	$3.01B	12.42	23.12%	10.96%	-12.71%	-39.85%
USAC	70 Outperform	$2.70B	32.02	94.47%	9.15%	12.32%	247.77%
NOG	70 Neutral	$2.15B	4.23	23.82%	7.78%	29.45%	-48.29%
KGS	67 Neutral	$2.95B	59.46	3.84%	5.00%	36.33%	83.52%
KRP	64 Neutral	$2.47B	45.09	1.48%	14.60%	13.72%	-110.82%
STR	59 Neutral	$2.53B	33.96	2.66%	9.15%	5.23%	―
Sector *	57 Neutral	$7.44B	4.21	-3.75%	6.64%	-0.07%	-64.77%

Black Stone Minerals Corporate Events

Black Stone Minerals Reports 2024 Financial Results

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.