Black Stone Minerals, L.P. (NYSE:BSM) Increases Dividend to $0.35 Per Share

Key Points

• Black Stone Minerals raised its quarterly dividend 9.4% to $0.35 per share, payable November 13 to shareholders of record on November 6. The annualized dividend is $1.40 per share, representing a 9.6% yield.
• The dividend may face future coverage pressure: the current payout ratio is 83.1%, while analysts expect next year’s earnings of $0.98 per share versus an annualized dividend of $1.28, implying a projected payout ratio above 130%.
• Black Stone reported quarterly EPS of $0.47, exceeding the $0.23 analyst consensus, while revenue of $148.97 million also topped estimates. Despite the earnings beat, analysts maintain an overall “Reduce” rating, with a $15 average price target.

Black Stone Minerals, L.P. (NYSE:BSM - Get Free Report) declared a quarterly dividend on Wednesday, October 21st. Shareholders of record on Friday, November 6th will be paid a dividend of $0.35 per share by the oil and gas producer on Friday, November 13th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 9.6%. The ex-dividend date is Friday, November 6th. This is a 9.4% increase from Black Stone Minerals's previous quarterly dividend of $0.32.

Black Stone Minerals has raised its dividend by an average of 0.1% annually over the last three years. Black Stone Minerals has a payout ratio of 83.1% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Analysts expect Black Stone Minerals to earn $0.98 per share next year, which means the company may not be able to cover its $1.28 annual dividend with an expected future payout ratio of 130.6%.

Black Stone Minerals Price Performance

Shares of Black Stone Minerals stock traded up $0.04 during mid-day trading on Thursday, reaching $14.63. 95,890 shares of the stock traded hands, compared to its average volume of 391,095. The stock has a market capitalization of $3.11 billion, a PE ratio of 12.10 and a beta of 0.15. The business has a 50-day moving average of $14.74 and a 200 day moving average of $14.28. Black Stone Minerals has a fifty-two week low of $12.92 and a fifty-two week high of $15.49. The company has a quick ratio of 3.76, a current ratio of 3.76 and a debt-to-equity ratio of 0.24.

Black Stone Minerals (NYSE:BSM - Get Free Report) last issued its quarterly earnings results on Monday, August 3rd. The oil and gas producer reported $0.47 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.23 by $0.24. Black Stone Minerals had a return on equity of 41.48% and a net margin of 61.72%. The firm had revenue of $148.97 million for the quarter, compared to analyst estimates of $108.28 million. On average, analysts predict that Black Stone Minerals will post 0.95 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Zacks Research lowered Black Stone Minerals from a "hold" rating to a "strong sell" rating in a report on Friday, October 16th. Weiss Ratings raised shares of Black Stone Minerals from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, August 20th. Four equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $15.00.

Black Stone Minerals Company Profile

Black Stone Minerals, L.P. NYSE: BSM is a publicly traded master limited partnership that owns mineral and royalty interests in oil and natural gas properties across the United States. The company's interests entitle it to receive a portion of production or revenue from properties operated and developed by exploration and production companies, generally without bearing the same level of operating costs as working-interest owners.

Black Stone's portfolio includes mineral, royalty, overriding royalty and working interests in several major U.S.

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