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MNRL

Brigham Minerals NYSE:MNRL Stock Report

Last Price

US$24.29

Market Cap

US$1.5b

7D

-9.8%

1Y

25.5%

Updated

24 Sep, 2022

Data

Company Financials +
MNRL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends2/6

MNRL Stock Overview

Brigham Minerals, Inc. owns and operates a portfolio of mineral and royalty interests in the continental United States.

Brigham Minerals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Brigham Minerals
Historical stock prices
Current Share PriceUS$24.29
52 Week HighUS$33.64
52 Week LowUS$19.08
Beta1.79
1 Month Change-19.62%
3 Month Change2.58%
1 Year Change25.47%
3 Year Change19.71%
5 Year Changen/a
Change since IPO21.94%

Recent News & Updates

Sep 01

Brigham Minerals: Double-Digit Production Would Justify Higher Price Marks

Summary Brigham Minerals is focused on acquiring oil and gas mineral rights across the U.S. The company operates in some of the richest basins in the United States. In my view, the combination of more acquisitions and a further increase in net activity wells will likely enhance future production. The most interesting is the Delaware Basin, where management foresees seven or more producing zones. Brigham Minerals, Inc. (MNRL) is delivering double digit production growth, and expects to make more acquisition of rights in the near future. In my view, successful production in new zones in the DJ Basin and the Delaware Basin could bring much more proved reserves than expected. Even considering risks from failed geological models, failed acquisitions, and inflation, I believe that the current stock price is cheap. Brigham Minerals: Strong Drilled But Uncompleted Well Conversions And Beneficial Guidance Brigham Minerals is focused on acquiring oil and gas mineral rights across the U.S. The company operates in some of the richest basins in the United States: Our portfolio is comprised of mineral and royalty interests across six of the most highly economic, liquids-rich resource plays in the continental United States, including the Delaware and Midland Basins in West Texas and New Mexico, the SCOOP and STACK plays in the Anadarko Basin in Oklahoma, the Denver-Julesburg Basin in Colorado and Wyoming and the Williston Basin in North Dakota. Source: 10-k I became very interested in Brigham because of its recent production reports. In the six months ended Jun 30, 2022, production increased by 39%, from 1621 million barrel of oil equivalent in June 2021 to 2268 MBoe in June 2022. Also, with a massive increase in the average price, up to $70/Boe, Brigham reported triple digit sales growth in the last six months. 10-Q The company explained the results by citing strong drilled but uncompleted well conversions in the Permian Basin. I really can't say whether production will be able to grow in the future due to more DUC conversions. However, I believe that there are many other catalysts for production: Our production volumes increased 8% sequentially to a record 13,019 Boe/d driven by continued strong DUC conversions, particularly conversions in the Permian Basin where production volumes grew by 24% sequentially. Source: Quarterly Report Press Release In my view, the combination of more acquisitions and further increase in net activity wells will likely enhance future production. In the past, the acquisition of interests in new regions was quite impressive: 10-k Let's note that Brigham Minerals reported 9% more production volumes than what was forecasted in February. In my view, the momentum will continue for some time if other factors like the oil price don't change much: When combined with our acquisition efforts, we were able to maintain an almost constant DUC inventory level even with the aforementioned strong conversions. Source: Quarterly Report Press Release In total, we ended the second quarter with 11.0 net activity wells in inventory and anticipate our production volumes for the full year 2022 to average between 12,300 and 13,000 Boe/d, which represents a 9% increase relative to our original guidance provided in February. Source: Quarterly Report Press Release The total amount of reserves is another beneficial feature of Brigham Minerals. From 2020 to 2021, the estimated total proved reserves increased by 42%. I really don't expect the company to deliver double digit growth every year. However, it is good noting that reservoir engineers and geologists are doing such great work. More reserves in the future will likely enhance the company's production figures. 10-k With the previous information in mind, many analysts out there are delivering fantastic guidance for Brigham Minerals. I had a look at their numbers for my financial models. The median operating margin would stand at close to 56%, and 2022 net sales would reach $373 million. Let's note that my financial figures are a bit more conservative than that of other financial analysts. With that, it is always good to check the general consensus in the market: marketscreener.com Balance Sheet Brigham Minerals reports $24 million in cash, net oil and gas properties of $711 million, and total assets worth $861 million. With very little debt and liabilities, I believe that the company's balance sheet is quite stable. 10-Q Long-term debt is equal to only $73 million, so management will likely receive debt financing if necessary. The list of liabilities is shown below: 10-Q Under My Base Case Scenario, The Implied Price Would Be $33-$34 Under this case scenario, I assumed that management would use the company's technical expertise to build and acquire new assets. As a result, the business model will little by little gain scale, which would enhance its FCF/Sales margin. In this regard, the most interesting is the Delaware Basin, where management foresees seven or more producing zones. Based on our geologic and engineering data as well as current delineation efforts by operators, we believe our mineral and royalty interests in the Delaware Basin are prospective for seven or more producing zones of economic horizontal development including the Wolfcamp A, B, C and XY; First, Second and Third Bone Spring; and the Avalon. Our Delaware Basin mineral and royalty interests are located in Reeves, Loving, Ward, Pecos, Culberson and Winkler Counties, Texas with our remaining interests located in Lea and Eddy Counties, New Mexico. Source: 10-k Besides, the company's engineers believe that the DJ Basin could offer at least four or more producing zones. Under this case scenario, I assumed that the company's geological models are sufficiently accurate: Based on our geologic and engineering interpretations as well as current delineation efforts by operators, we believe our mineral and royalty interests in the DJ Basin are prospective for four or more producing zones of economic horizontal development including the Niobrara A, B and C and Codell formations. Source: 10-k

Shareholder Returns

MNRLUS Oil and GasUS Market
7D-9.8%-9.3%-5.2%
1Y25.5%36.4%-23.0%

Return vs Industry: MNRL underperformed the US Oil and Gas industry which returned 36.4% over the past year.

Return vs Market: MNRL exceeded the US Market which returned -23.1% over the past year.

Price Volatility

Is MNRL's price volatile compared to industry and market?
MNRL volatility
MNRL Average Weekly Movement6.7%
Oil and Gas Industry Average Movement8.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: MNRL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MNRL's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
201244Rob Roosahttps://www.brighamminerals.net

Brigham Minerals, Inc. owns and operates a portfolio of mineral and royalty interests in the continental United States. The company primarily holds mineral and royalty interests in the Delaware and Midland Basins in West Texas and New Mexico; the South Central Oklahoma Oil Province and Sooner Trend Anadarko Basin Canadian and Kingfisher Counties plays in the Anadarko Basin of Oklahoma; the Denver-Julesburg Basin in Colorado; and Wyoming and the Williston Basin in North Dakota. As of December 31, 2021, it had mineral and royalty interests in approximately 92,375 net royalty acres; and owned mineral and royalty interests in 8,595 gross productive horizontal wells, which consisted of 7,909 oil wells and 688 natural gas wells.

Brigham Minerals Fundamentals Summary

How do Brigham Minerals's earnings and revenue compare to its market cap?
MNRL fundamental statistics
Market CapUS$1.47b
Earnings (TTM)US$103.73m
Revenue (TTM)US$251.94m

12.7x

P/E Ratio

5.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MNRL income statement (TTM)
RevenueUS$251.94m
Cost of RevenueUS$22.62m
Gross ProfitUS$229.32m
Other ExpensesUS$125.59m
EarningsUS$103.73m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.91
Gross Margin91.02%
Net Profit Margin41.17%
Debt/Equity Ratio9.6%

How did MNRL perform over the long term?

See historical performance and comparison

Dividends

11.3%

Current Dividend Yield

103%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MNRL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MNRL?

Other financial metrics that can be useful for relative valuation.

MNRL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.9x
Enterprise Value/EBITDA7.2x
PEG Ratio-3.2x

Price to Earnings Ratio vs Peers

How does MNRL's PE Ratio compare to its peers?

MNRL PE Ratio vs Peers
The above table shows the PE ratio for MNRL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.2x
NOG Northern Oil and Gas
10.5x35.4%US$2.0b
KRP Kimbell Royalty Partners
19.2x16.6%US$1.1b
TALO Talos Energy
6.7x62.3%US$1.3b
ROCC Ranger Oil
5.2x16.4%US$1.2b
MNRL Brigham Minerals
12.7x-3.9%US$1.5b

Price-To-Earnings vs Peers: MNRL is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (8.2x).


Price to Earnings Ratio vs Industry

How does MNRL's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Earnings vs Industry: MNRL is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the US Oil and Gas industry average (8.2x)


Price to Earnings Ratio vs Fair Ratio

What is MNRL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MNRL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.7x
Fair PE Ratio12.6x

Price-To-Earnings vs Fair Ratio: MNRL is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.6x).


Share Price vs Fair Value

What is the Fair Price of MNRL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MNRL ($24.29) is trading below our estimate of fair value ($55.01)

Significantly Below Fair Value: MNRL is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Brigham Minerals forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-3.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNRL's earnings are forecast to decline over the next 3 years (-3.9% per year).

Earnings vs Market: MNRL's earnings are forecast to decline over the next 3 years (-3.9% per year).

High Growth Earnings: MNRL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MNRL's revenue (1.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MNRL's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MNRL's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Brigham Minerals performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


55.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MNRL has high quality earnings.

Growing Profit Margin: MNRL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MNRL's earnings have grown significantly by 55.4% per year over the past 5 years.

Accelerating Growth: MNRL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MNRL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (184.6%).


Return on Equity

High ROE: MNRL's Return on Equity (17.1%) is considered low.


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Financial Health

How is Brigham Minerals's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MNRL's short term assets ($102.0M) exceed its short term liabilities ($20.2M).

Long Term Liabilities: MNRL's short term assets ($102.0M) exceed its long term liabilities ($79.8M).


Debt to Equity History and Analysis

Debt Level: MNRL's net debt to equity ratio (6.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MNRL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MNRL's debt is well covered by operating cash flow (206.9%).

Interest Coverage: MNRL's interest payments on its debt are well covered by EBIT (62.7x coverage).


Balance Sheet


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Dividend

What is Brigham Minerals's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


11.28%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MNRL's dividend (11.28%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: MNRL's dividend (11.28%) is in the top 25% of dividend payers in the US market (4.57%)


Stability and Growth of Payments

Stable Dividend: MNRL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MNRL's dividend payments have increased, but the company has only paid a dividend for 3 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (102.7%), MNRL's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (728.3%), MNRL's dividend payments are not well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Rob Roosa (52 yo)

5.17yrs

Tenure

US$5,193,799

Compensation

Mr. Robert M. Roosa, also known as Rob, has been the Chief Executive Officer of Brigham Minerals, Inc. since July 2017 and serves as its Director since May 2018. He served as president of Brigham Minerals,...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD5.19M) is about average for companies of similar size in the US market ($USD5.62M).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MNRL's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: MNRL's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:MNRL Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
23 Jun 22SellUS$1,046,428Pine Brook Road Partners, LLCCompany41,503US$25.21
22 Jun 22SellUS$2,747,391Pine Brook Road Partners, LLCCompany99,862US$28.15
15 Jun 22SellUS$5,576,143Pine Brook Road Partners, LLCCompany181,978US$31.20
13 Jun 22SellUS$8,602,416Pine Brook Road Partners, LLCCompany273,986US$32.32
26 May 22SellUS$750,000Blake WilliamsIndividual25,000US$30.00
26 May 22SellUS$11,442,061Pine Brook Road Partners, LLCCompany389,626US$29.99
22 Mar 22SellUS$5,558,414Pine Brook Road Partners, LLCCompany227,175US$24.62
22 Mar 22SellUS$16,847,561Pine Brook Road Partners, LLCCompany709,371US$23.75
18 Mar 22SellUS$10,494,330Pine Brook Road Partners, LLCCompany432,336US$24.27
16 Mar 22SellUS$4,431,403Pine Brook Road Partners, LLCCompany183,911US$24.11
14 Mar 22SellUS$4,892,919Pine Brook Road Partners, LLCCompany197,568US$25.03
10 Mar 22SellUS$4,798,992Pine Brook Road Partners, LLCCompany189,148US$25.44
08 Mar 22SellUS$6,336,403Pine Brook Road Partners, LLCCompany235,491US$28.12
24 Nov 21SellUS$1,012,971Yorktown Partners LLCCompany45,419US$22.30
23 Nov 21SellUS$1,858,148Yorktown Partners LLCCompany83,936US$22.16
18 Nov 21SellUS$939,286Yorktown Partners LLCCompany40,339US$23.40

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.


Top Shareholders

Top 25 shareholders own 69.59% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.62%
FMR LLC
6,837,205$166.1m-0.14%0.02%
10.54%
Wellington Management Group LLP
5,711,596$138.7m38.43%0.03%
6.77%
BlackRock, Inc.
3,669,306$89.1m-12.59%no data
5.22%
The Vanguard Group, Inc.
2,827,821$68.7m9.41%no data
4.14%
State Street Global Advisors, Inc.
2,245,408$54.5m42.88%no data
4.14%
Horizon Kinetics LLC
2,243,428$54.5m14.63%1.09%
4%
Westwood Management Corp.
2,165,913$52.6m38.79%0.64%
2.54%
CIBC Private Wealth Advisors, Inc.
1,376,519$33.4m0.35%0.1%
2.31%
Ranger Investment Management, L.P.
1,251,022$30.4m-1.05%2.49%
2.2%
Adage Capital Management, L.P.
1,190,901$28.9m-17.92%0.07%
1.59%
Geode Capital Management, LLC
860,233$20.9m9.45%no data
1.52%
Goldman Sachs Asset Management, L.P.
824,428$20.0m-47.98%0.01%
1.5%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
813,033$19.7m93.07%0.01%
1.41%
Dimensional Fund Advisors LP
763,252$18.5m41.17%no data
1.12%
Epoch Investment Partners, Inc.
605,137$14.7m0%0.27%
1.07%
Nuveen Investments, Inc.
580,836$14.1m-19.86%0.05%
1.01%
ClearBridge Investments, LLC
548,876$13.3m-18.84%0.01%
0.9%
Northern Trust Global Investments
487,987$11.9m14.14%no data
0.79%
NFC Investments, LLC
427,360$10.4m-0.23%2.99%
0.77%
Toronto-Dominion Bank, Banking Investments
419,096$10.2m-40.54%0.02%
0.73%
Victory Capital Management Inc.
395,580$9.6m2.15%0.01%
0.68%
Russell Investment Management, LLC
369,332$9.0m-10.08%0.02%
0.68%
Charles Schwab Investment Management, Inc.
368,032$8.9m8.78%no data
0.67%
Citadel Advisors LLC
360,821$8.8m6.02%0.01%
0.66%
Ben Brigham
356,996$8.7m0%no data

Company Information

Brigham Minerals, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Brigham Minerals, Inc.
  • Ticker: MNRL
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$1.468b
  • Market Cap: US$1.316b
  • Shares outstanding: 60.45m
  • Website: https://www.brighamminerals.net

Number of Employees


Location

  • Brigham Minerals, Inc.
  • 5914 West Courtyard Drive
  • Suite 200
  • Austin
  • Texas
  • 78730
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNRLNYSE (New York Stock Exchange)YesClass A Common StockUSUSDApr 2019
2TQDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.