Black Stone Minerals: Distributions Should Increase Further In 2023

Sep. 28, 2022 11:11 PM ETBlack Stone Minerals, L.P. (BSM)14 Comments

Summary

  • Black Stone now expects 2022 production to come in at the low end of guidance due to well delays.
  • 2023 production is expected to increase throughout the year, though, with an exit rate close to 40,000 BOEPD.
  • Black Stone appears likely to maintain its current $0.42 distribution during 2022 and then increase it to around $0.475 to $0.50 in 2023 based on current strip prices.
  • Distribution coverage would be around 1.1x to 1.2x in this scenario.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

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Black Stone Minerals (NYSE:BSM) indicated that its 2022 production would end up at the low end of its guidance due to delays with well completions on its acreage. Combined with the lowered expectations for commodity prices (based on current

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