Black Stone Minerals, Viper Energy rated Overweight in KeyBanc initiation

Sep. 20, 2022 8:29 AM ETBlack Stone Minerals, L.P. (BSM), VNOM, MNRL, KRPBy: Rob Williams, SA NY

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KeyBanc analysts started covering the minerals industry with Overweight ratings for Black Stone Minerals (NYSE:BSM) and Viper Energy Partners (NASDAQ:VNOM). The bank also initiated Brigham Minerals (NYSE:MNRL) and Kimbell Royalty Partners (NYSE:KRP) with Sector Weight ratings.

“We see no major distribution risk across our coverage group and believe all four companies will deliver healthy income to investors,” Tim Rezvan, analyst at KeyBanc, said in the Sept. 19 report. “Our ratings reflect idiosyncratic catalysts, balance sheet flexibility and strategic clarity.”

The report coincides with KeyBanc's initiation report for 13 exploration and production companies.

KeyBanc estimates for minerals stocks, Sept. 19
EBITDA (mln)
2022E 2023E
Black Stone Minerals (BSM) $427 $555
Kimbell Royalty Partners (KRP) $159 $144
Brigham Minerals (MNRL) $283 $279
Viper Energy Partners (VNOM) $769 $743
KeyBanc estimates for minerals stocks, Sept. 19
Next 12 Months
Dividend Yield
Black Stone Minerals (BSM) $1.95 12.4%
Kimbell Royalty Partners (KRP) $1.82 10.3%
Brigham Minerals (MNRL) $3.28 12.2%
Viper Energy Partners (VNOM) $3.07 9.8%
Average 11.2%

Seeking Alpha contributor Elephant Analytics has a Buy rating on Black Stone Minerals (BSM) based on estimates of its distributable cash flow. Contributor Arie Investment Management rates Brigham Minerals (MNRL) as a Buy on the production outlook.

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