Black Stone Minerals to report Q3 results: what analysts expect

what happened

Mineral rights owner Black Stone Minerals will publish its third-quarter results on Monday after the market closes, according to StockStory. Last quarter the company beat analysts' revenue expectations, reporting $149 million, down 6.6% year on year. Its EBITDA and earnings per share also came in well above estimates, while oil production was flat compared with a year earlier.

This quarter the market expects revenue to decline 13.9% year on year, a sharper drop than the 1.8% decrease recorded in the same quarter last year. Analysts have mostly confirmed their estimates over the past 30 days. Over the last two years, however, the company has missed Wall Street's revenue estimates several times.

Among peers in the upstream and integrated segment that have already reported, Weatherford posted a 7.2% revenue decline, beating expectations by 0.8%, and its shares rose 7.8% after the results. Expand Energy grew revenue 11.6% and topped estimates by 54.4%, but its stock fell 3.2%. Over the last month the sector's shares rose 6.2% on average, while Black Stone Minerals gained 1.3% and traded at $14.75.

why it matters

Royalty owners' revenue depends directly on oil and gas prices and on production volumes at the operators they work with, so the report will show how market conditions reached companies of this type. An expected revenue drop with flat production may suggest the market is pricing in lower commodity prices, though that is only an interpretation of the forecast. For energy investors, the actual revenue figures and how peer stocks reacted are the key details to watch.

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