Black Stone Minerals: A Third Production Agreement Supports An 8% Yield And Haynesville Growth (Rating Upgrade)
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Ronald Ferrie3.58K FollowersFollow5ShareSavePlay(12min)CommentsSummaryBlack Stone Minerals secures a new production agreement with Caturus Energy in the Shelby Trough, expanding its Haynesville footprint.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 hasThis article was written byRonald Ferrie3.58K FollowersFollowI am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producing equities and rental real estate properties for cash flow and long-term appreciation. My articles are to serve as a platform for presenting the underlying fundamentals and long-term potential of each equity/business.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 myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You