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Black Stone Minerals: Distributions Could Double During 2022, 13%+ Yield

Apr. 01, 2022 6:03 AM ETBlack Stone Minerals, L.P. (BSM)10 Comments
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DT Analysis


  • Black Stone Minerals partly missed out on the strong oil and gas prices of 2021 due to their hedges.
  • This saw their operating cash flow slightly below their previous results during 2020.
  • When looking ahead, their hedges have increased and thus their operating cash flow will surge higher even without the added benefit of these now very strong oil and gas prices.
  • Since their net debt is rapidly plunging towards zero, they are likely to return even more of their free cash flow via distributions going forwards.
  • Even based upon their unhedged 2021 results, this could see a very high 13%+ distribution yield on current cost and thus I believe that maintaining my buy rating is appropriate.

Oil barrels on stack of golden coins. Growth rise of oil stock prices.

Bet_Noire/iStock via Getty Images


Despite oil and gas prices seeing a strong recovery during 2021, sadly Black Stone Minerals (NYSE:BSM) found themselves partly missing out with their hedges costing over one-third of their operating cash flow during the

Black Stone Minerals Ratings


Black Stone Minerals Cash Flows


Black Stone Minerals Operating Cash Flow


Black Stone Minerals Capital Structure


Black Stone Minerals Liquidity Ratios


This article was written by

DT Analysis profile picture
I am no longer active, as I am taking a hiatus from finance to pursue business ventures in other sectors.  I hope that my analysis was helpful to investors across the years, thank you.

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