Andrew Carreon, founder of Emeth Value, discusses his thesis on Blackstone Minerals (BSM). Key points include how some of the company's undeveloped acreage could be a massive call option, how rising commodity prices impact BSM's value, and how BSM compares to other loose peers.
Side note: I had a puppy emergency for the last ten minutes of this podcast; you might see me glancing to the side a bit as my dog (Penny) tries to get my attention. I still think the conversation was great, but sorry for that!
Emeth Value's website: https://www.emethvaluecapital.com/
1:00 Blackstone Minerals (BSM) overview
4:40 How mineral rights work
7:15 Contrasting BSM versus TPL
11:50 How does BSM's acreage quality compare to TPL
15:10 BSM's LP structure versus traditional C-corps
18:55 Why BSM's NPV reserve calculation understates their value
23:25 What commodity prices are currently baked into BSM's share price?
31:30 Discussing BSM's GP
33:10 How their capex / farm out agreements work
37:45 Management's track record and pandemic performance
43:25 Drilling outlook for BSM's acreage
50:00 Diving into BSM's Austin Chalk acreage
53:15 Puppy emergency driven conclusion