Stock in Focus: Black Stone Minerals L.P. (BSM)

Company Profile:

Black Stone Minerals, L.P. owns and manages oil and natural gas mineral interests in the United States. The company owns mineral interests in approximately 16.8 million acres, nonparticipating royalty interests in 1.9 million acres, and overriding royalty interests in 2.1 million acres located in 41 states and 64 onshore basins in the continental United States. As of December 31, 2018, the company had a total estimated proved oil and natural gas reserves of 69,904 barrels of oil equivalent. Black Stone Minerals, L.P. was founded in 1876 and is based in Houston, Texas.

Recent News:

The company reported net income of $164.1 million for the fourth quarter ended December 31, 2018, compared to net income of $60.8 million in the preceding quarter and $19.4 million in the fourth quarter of 2017.

Adjusted EBITDA for the fourth quarter of 2018 was $110.0 million, which compares to $114.2 million in the third quarter of 2018 and $79.5 million in the fourth quarter of 2017.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

BSM’s strengths can be seen in its strong growth, strong profitability and robust solvency compared with its peers. Its net income and revenue have increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator. The RSI(14) stands at 56.39 with positive bias. We rate Black Stone Minerals L.P. (BSM) a STRONG BUY.