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Will Black Stone (BSM) Continue to Beat on Earnings in Q3?
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Black Stone Minerals, L.P. (BSM - Free Report) is set to release third-quarter results on Oct 31. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 43 cents per unit on revenues of $178.1 million.
Let’s delve into the factors that might have influenced the Haynesville-focused royalty trust partnership’s performance in the September quarter. But it’s worth taking a look at BSM’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, this Houston, TX-based oil and gas mineral rights owner beat the consensus mark on strengthening commodity price realizations (especially natural gas). Black Stone Minerals had reported adjusted earnings per share of 43 cents, ahead of the Zacks Consensus Estimate of 40 cents. Revenues of $180.4 million had also come in 15.6% above the consensus mark.
BSM beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 24.7%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the third-quarter bottom line has remained the same in the last seven days. The estimated figure indicates a 65.4% improvement year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 197.7% jump from the year-ago period.
Factors to Consider
Black Stone Minerals is expected to have benefited from the surge in oil and natural gas realizations. As a reflection of this price boost, the respective Zacks Consensus Estimate for the third-quarter average realized price for oil and condensate, and natural gas is pegged at $89 per barrel and $9.80 per thousand cubic feet, up significantly from a year earlier when the partnership had fetched $67 and $4.73. The year-over-year improvement in realizations has most likely buoyed Black Stone Mineral’s revenues and cash flows.
On a further bullish note, BSM is likely to have experienced an increase in output on the back of increased drilling activity and production growth across its mineral position. Consequently, the consensus mark for the partnership’s Q3 volume is pegged at 914,000 barrels, up from the previous quarter’s level of 899,000 barrels.
On a somewhat bearish note, Black Stone Minerals’ total operating costs in the second quarter more than doubled year over year to $19.5 million. The upward cost trajectory is likely to have continued in the third quarter due to persistent inflationary pressure. This is expected to have somewhat dented BSM’s to-be-reported earnings.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Black Stone Minerals is likely to beat estimates in the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -2.33%.
Zacks Rank: BSM currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Black Stone Minerals, here are some firms from the energy space that you may want to consider on the basis of our model:
Comstock Resources (CRK - Free Report) has an Earnings ESP of +1.04% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 1.
For 2022, Comstock Resources has a projected earnings growth rate of 230.2%. Valued at around $3.9 billion, CRK has gained 65.8% in a year.
The Williams Companies (WMB - Free Report) has an Earnings ESP of +1.53% and a Zacks Rank #1. The firm is scheduled to release earnings on Oct 31.
For 2022, Williams has a projected earnings growth rate of 13.2%. Valued at around $6.6 billion, MUSA has gained 10.6% in a year.
ExxonMobil (XOM - Free Report) has an Earnings ESP of +1.39% and a Zacks Rank #2. The firm is scheduled to release earnings on Oct 28.
The Zacks Consensus Estimate for XOM’s 2022 earnings has been revised 3.8% upward over the past 60 days. Valued at around $444.3 billion, ExxonMobil has lost 64.5% in a year.
Image: Bigstock
Will Black Stone (BSM) Continue to Beat on Earnings in Q3?
Black Stone Minerals, L.P. (BSM - Free Report) is set to release third-quarter results on Oct 31. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 43 cents per unit on revenues of $178.1 million.
Let’s delve into the factors that might have influenced the Haynesville-focused royalty trust partnership’s performance in the September quarter. But it’s worth taking a look at BSM’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, this Houston, TX-based oil and gas mineral rights owner beat the consensus mark on strengthening commodity price realizations (especially natural gas). Black Stone Minerals had reported adjusted earnings per share of 43 cents, ahead of the Zacks Consensus Estimate of 40 cents. Revenues of $180.4 million had also come in 15.6% above the consensus mark.
BSM beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 24.7%, on average. This is depicted in the graph below:
Black Stone Minerals, L.P. Price and EPS Surprise
Black Stone Minerals, L.P. price-eps-surprise | Black Stone Minerals, L.P. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line has remained the same in the last seven days. The estimated figure indicates a 65.4% improvement year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 197.7% jump from the year-ago period.
Factors to Consider
Black Stone Minerals is expected to have benefited from the surge in oil and natural gas realizations. As a reflection of this price boost, the respective Zacks Consensus Estimate for the third-quarter average realized price for oil and condensate, and natural gas is pegged at $89 per barrel and $9.80 per thousand cubic feet, up significantly from a year earlier when the partnership had fetched $67 and $4.73. The year-over-year improvement in realizations has most likely buoyed Black Stone Mineral’s revenues and cash flows.
On a further bullish note, BSM is likely to have experienced an increase in output on the back of increased drilling activity and production growth across its mineral position. Consequently, the consensus mark for the partnership’s Q3 volume is pegged at 914,000 barrels, up from the previous quarter’s level of 899,000 barrels.
On a somewhat bearish note, Black Stone Minerals’ total operating costs in the second quarter more than doubled year over year to $19.5 million. The upward cost trajectory is likely to have continued in the third quarter due to persistent inflationary pressure. This is expected to have somewhat dented BSM’s to-be-reported earnings.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Black Stone Minerals is likely to beat estimates in the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -2.33%.
Zacks Rank: BSM currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Black Stone Minerals, here are some firms from the energy space that you may want to consider on the basis of our model:
Comstock Resources (CRK - Free Report) has an Earnings ESP of +1.04% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
For 2022, Comstock Resources has a projected earnings growth rate of 230.2%. Valued at around $3.9 billion, CRK has gained 65.8% in a year.
The Williams Companies (WMB - Free Report) has an Earnings ESP of +1.53% and a Zacks Rank #1. The firm is scheduled to release earnings on Oct 31.
For 2022, Williams has a projected earnings growth rate of 13.2%. Valued at around $6.6 billion, MUSA has gained 10.6% in a year.
ExxonMobil (XOM - Free Report) has an Earnings ESP of +1.39% and a Zacks Rank #2. The firm is scheduled to release earnings on Oct 28.
The Zacks Consensus Estimate for XOM’s 2022 earnings has been revised 3.8% upward over the past 60 days. Valued at around $444.3 billion, ExxonMobil has lost 64.5% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.