Black Stone Minerals stock hits 52-week low at $13.77

Black Stone Minerals , L.P. (NYSE:BSM) stock has reached a 52-week low, touching down at $13.77. This price point marks a significant dip for the company, which has seen a -17.17% change over the past year. According to InvestingPro analysis, the stock appears undervalued at current levels, while maintaining an impressive 10.06% dividend yield and robust gross profit margins of 86.12%. Investors are closely monitoring the energy sector, as Black Stone Minerals, a leader in oil and natural gas mineral interests in the United States, navigates through market volatility and fluctuating commodity prices. The 52-week low serves as a critical juncture for the company, as stakeholders consider the firm’s performance amidst broader economic pressures and future growth prospects. InvestingPro data reveals the company maintains strong financial health with low price volatility and sufficient cash flows to cover obligations, with 8 additional exclusive insights available to subscribers through the comprehensive Pro Research Report.

In other recent news, Black Stone Minerals reported its fourth-quarter 2024 earnings, revealing a revenue of $83.73 million, which fell short of the forecasted $114.73 million. However, the company’s earnings per share matched analyst expectations at $0.18. Despite the revenue miss, Black Stone Minerals maintained its distribution at $0.375 per unit, indicating stable cash flow. The company also reported a net income of $46.3 million for the quarter, contributing to a full-year net income of $271.3 million, with adjusted EBITDA for the quarter at $90.1 million.

In addition to its earnings report, Black Stone Minerals announced a change in its certifying accountant, moving from Ernst & Young LLP to Deloitte & Touche LLP. This change is effective immediately and will begin with the quarter ending March 31, 2025. The decision to switch auditors did not stem from any disagreements or reportable events between the company and Ernst & Young. Additionally, Black Stone Minerals continues to focus on its acquisition strategy, with recent acquisitions totaling $43 million during the quarter, focusing on the Gulf Coast region.

Analysts have noted the company’s aggressive acquisition strategy and its focus on maintaining production levels, particularly in the East Texas and Louisiana Haynesville regions. Despite the challenges posed by volatile commodity prices, Black Stone Minerals projects a positive outlook for 2025, supported by a constructive natural gas outlook and robust oil production from multiple basins. The company anticipates increased production levels in 2025, with operating expenses and production costs expected to remain consistent with 2024 levels.

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