Black Stone Minerals, L.P.
$13.92
+1.9%Black Stone Minerals, L.P., together with its subsidiaries, owns and manages oil and natural gas mineral interests. It owns mineral interests in approximately 16.8 million gross acres, nonparticipating royalty interests in 1.8 million gross acres, and overriding royalty interests in 1.7 million gross acres located in 41 states in the United States. As of December 31, 2021, the company had a total estimated proved oil and natural gas reserves of 59,824 barrels of oil equivalent. Black Stone Minerals, L.P. was founded in 1876 and is based in Houston, Texas.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 10.9).
Valuation inputs: P/E 10.9, earnings yield +9.2%, momentum +1.9%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +26.7%, ROIC +19.9%).
Profitability stack: net margin +71.0%, ROE +26.7%, ROIC +19.9%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile looks controlled across current risk inputs.
Risk factors: liabilities/assets +15.5%, momentum +1.9%, net margin +71.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Black Stone Minerals, L.P. Market vs Earnings Trajectory
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Black Stone Minerals, L.P. Fair Value Envelope
Black Stone Minerals, L.P. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.
Black Stone Minerals, L.P. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Black Stone Minerals, L.P. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Black Stone Minerals, L.P. Street Expectations Map
Wall Street analysts project that BSM stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 16.00, with estimates ranging from a low of 16.00 to a high of 16.00.
The consensus 1-year price target stands at 16.00, with estimates ranging from a low of 16.00 to a high of 16.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Black Stone Minerals, L.P. Insider Positioning
During the last 12 months, insiders have purchased $4.39M and sold $1.44M worth of BSM shares, resulting in $2.95M of net buying activity.
3 Months
179.3K
2.41M
69.9K
978.37K
+1.4M
+$1.43M
3-6 Months
0
0.00
30.3K
461.58K
-462K
-$462K
6-9 Months
40.7K
498.81K
0
0.00
+499K
+$499K
9-12 Months
122.4K
1.49M
0
0.00
+1.5M
+$1.49M
Top Buyers
Carter Thomas L Jr
Director, Officer: Executive Chairman
$2.91M
Dewalch D Mark
Director
$1.48M
Top Sellers
Putman Luke Stevens
Officer: Svp, General Counsel, And Sec
$1.29M
Longmaid Ashley J
Director
$150K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $2.95M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
2 insider buyers and 2 sellers. Equal participation suggests mixed or neutral insider views.
Insider Activity Insight
Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.
bsm Dividend History
Learning Layer
Related Guides
Build conviction on BSM by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.