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Black Stone Minerals: A Third Production Agreement Supports An 8% Yield And Haynesville Growth (Rating Upgrade) [Seeking Alpha]

Black Stone Minerals, L.P. Common units representing limited partner interests (BSM) 
NASDAQ:AMEX Investor Relations: investor.blackstoneminerals.com
Company Research Source: Seeking Alpha
The Caturus deal introduces a vertically integrated partner developing its own LNG terminal, enhancing BSM's long-term production stability. Multi-year phased drilling requirements mirror prior agreements, supporting sustained cash flow and mitigating previous counterparty risks. I upgrade BSM to BUY, anchored by a thesis of long-term production and distribution growth driven by diversified customers. Near-term distributions are well protected by a vast hedge book. Aleksandr Bunin/iStock via Getty Images Thesis Black Stone Minerals ( BSM ) reported a new production agreement with private equity firm Caturus Energy in the company's Shelby Trough acreage. This deal represents the third Haynesville-based production agreement the company has This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article Show less Read more
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