Discounted Cash Flow (DCF) Analysis Levered

Black Stone Minerals, L.P. (BSM)

$15.97

+0.30 (+1.91%)

All numbers are in Millions, Currency in USD

Stock DCF: 36.38 | 15.97 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	594.74	492.78	342.75	359.26	663.60	733.19	810.06	895	988.85	1,092.54
Revenue (%)
Operating Cash Flow	385.38	412.72	281.81	256.88	424.98	537.16	593.48	655.71	724.46	800.43
Operating Cash Flow (%)
Capital Expenditure	-297.33	-111.30	-4.82	-14.63	-12.56	-117.24	-129.53	-143.12	-158.12	-174.70
Capital Expenditure (%)
Free Cash Flow	88.04	301.42	276.99	242.25	412.42	419.92	463.95	512.59	566.34	625.72

Weighted Average Cost Of Capital

Share price	$ 15.97
Beta	1.044
Diluted Shares Outstanding	224.45
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	62.86%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.628
Total Debt	10
Total Equity	3,584.40
Total Capital	3,594.40
Debt Weighting	0.28
Equity Weighting	99.72
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	594.74	492.78	342.75	359.26	663.60	733.19	810.06	895	988.85	1,092.54
Operating Cash Flow	385.38	412.72	281.81	256.88	424.98	537.16	593.48	655.71	724.46	800.43
Capital Expenditure	-297.33	-111.30	-4.82	-14.63	-12.56	-117.24	-129.53	-143.12	-158.12	-174.70
Free Cash Flow	88.04	301.42	276.99	242.25	412.42	419.92	463.95	512.59	566.34	625.72
WACC
PV LFCF						386.02	392.07	398.22	404.47	410.81
SUM PV LFCF										1,991.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.78
Free cash flow (t + 1)	638.24
Terminal Value	9,413.55
Present Value of Terminal Value	6,180.28

Intrinsic Value

Enterprise Value	8,171.87
Net Debt	5.69
Equity Value	8,166.18
Shares Outstanding	224.45
Equity Value Per Share	36.38