DCF Tool

BSM

Black Stone Minerals L.P. – Crude Petroleum and Natural Gas Extraction
black stone minerals is the largest publicly traded mineral and royalty company in the united states. our interests include approximately 18 million gross acres in over 40 states. our principal business is maximizing the value of our existing portfolio of mineral and royalty assets through active management and expanding our asset base through acquisitions of additional mineral and royalty interests. we maximize value through the marketing of our mineral assets for lease, creative structuring of those leases to encourage and accelerate drilling activity, and selectively participating alongside our lessees on a working-interest basis. our primary business objective is to grow our reserves, production, and cash generated from operations over the long term. we are headquartered in houston, tx.
Analysis Results
Intrinsic Value $40.33
Latest Price $17.40
Relative Value 57% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 4.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 266 255
2024 277 254
2025 288 253
2026 300 252
2027 311 251
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 9340 million. This corresponds to a present value of 7200 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1260 million. Adding in the terminal value gives a total present value of 8470 million.

There are presently 210.0 million outstanding shares, so the intrinsic value per share is 40.33.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 173,381,000
Current Cash 4,307,000
Current Liabilities 30,734,000
Current Debt 0
Non-Cash Working Capital (NCWC) 138,340,000
Change in NCWC 116,382,000
EBIT 482,481,000
Tax Provision 0
Depreciation and Amortization 47,804,000
Capital Expenditure -12,414,000
Unlevered Free Cash Flow 634,253,000
Current Assets 107,974,000
Current Cash 8,876,000
Current Liabilities 77,140,000
Current Debt 0
Non-Cash Working Capital (NCWC) 21,958,000
Change in NCWC -2,820,000
EBIT 184,475,000
Tax Provision 0
Depreciation and Amortization 61,019,000
Capital Expenditure -4,592,000
Unlevered Free Cash Flow 238,082,000
Current Assets 66,521,000
Current Cash 1,796,000
Current Liabilities 39,947,000
Current Debt 0
Non-Cash Working Capital (NCWC) 24,778,000
Change in NCWC -39,591,000
EBIT 159,095,000
Tax Provision 0
Depreciation and Amortization 82,018,000
Capital Expenditure -4,788,000
Unlevered Free Cash Flow 196,734,000
Current Assets 102,291,000
Current Cash 8,119,000
Current Liabilities 29,803,000
Current Debt 0
Non-Cash Working Capital (NCWC) 64,369,000
Change in NCWC -22,984,000
EBIT 235,172,000
Tax Provision 0
Depreciation and Amortization 109,584,000
Capital Expenditure -110,321,000
Unlevered Free Cash Flow 211,451,000
Current Assets 157,533,000
Current Cash 5,414,000
Current Liabilities 64,766,000
Current Debt 0
Non-Cash Working Capital (NCWC) 87,353,000
Change in NCWC 65,086,000
EBIT 318,378,000
Tax Provision 0
Depreciation and Amortization 122,653,000
Capital Expenditure -291,072,000
Unlevered Free Cash Flow 215,045,000
Current Assets 87,643,000
Current Cash 5,642,000
Current Liabilities 59,734,000
Current Debt 0
Non-Cash Working Capital (NCWC) 22,267,000
Change in NCWC 24,381,000
EBIT 171,153,000
Tax Provision 0
Depreciation and Amortization 114,534,000
Capital Expenditure -484,522,000
Unlevered Free Cash Flow -174,454,000
Current Assets 78,989,000
Current Cash 9,772,000
Current Liabilities 71,331,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,114,000
Change in NCWC -29,437,000
EBIT 29,451,000
Tax Provision 0
Depreciation and Amortization 102,487,000
Capital Expenditure -221,740,000
Unlevered Free Cash Flow -119,239,000
Current Assets 103,595,000
Current Cash 13,233,000
Current Liabilities 63,039,000
Current Debt 0
Non-Cash Working Capital (NCWC) 27,323,000
Change in NCWC 3,281,000
EBIT 148,841,000
Tax Provision 0
Depreciation and Amortization 104,298,000
Capital Expenditure -116,703,000
Unlevered Free Cash Flow 139,717,000
Current Assets 137,417,000
Current Cash 14,803,000
Current Liabilities 98,572,000
Current Debt 0
Non-Cash Working Capital (NCWC) 24,042,000
Change in NCWC 26,207,000
EBIT 299,671,000
Tax Provision 0
Depreciation and Amortization 111,962,000
Capital Expenditure -120,580,000
Unlevered Free Cash Flow 317,260,000

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