Stock Reveal: Alexander Green’s #1 Royalty Company In America

Dylan Rieger // Stocks


July 3  

Welcome back to the website that gives away millions of dollars of expert stock research completely for free.

Today we're going to look at a stock teaser from Alexander Green hyping up the #1 royalty company in America.

He claims this stock can make you rich and that insiders are buying it like crazy.

The problem is that he wants you to give him over one thousand dollars to learn the name of the stock pick.

But I have good news.

Green left enough clues in the teaser to figure out the stock, and I reveal it in the video below.

Additionally, I'll give you all the information you need on the stock to determine if it's right for you.

Let's get started!

Transcript Of Video

Before I reveal the stock I want to cover what's in the teaser.

This presentation is about an oil and gas royalty company Green wants you to invest in.

An oil and gas royalty company is a company that either owns or has a claim to land where hydrocarbons are produced. These companies receive a percentage of the revenue from the sale of oil and gas extracted from their properties, without having to incur any of the costs or risks associated with exploration, development or production. This percentage is called a royalty and it varies depending on the terms of the lease agreement between the royalty company and the operator of the well.

Some top clues about this stock are that it's the largest pure-play and gas mineral royalty owner in America.

It has oil and gas interests in 41 states, and there's a lot of insider buying, including the CEO owning 2.6 million shares and the director owning 34,000.

What Is Black Stone Minerals? 

Alright, time to reveal the name of the stock Green is pitching. The #1 royalty company in America according to green is Black Stone Minerals. 

This company owns and manages roughly 20 million acres of oil and gas mineral and royalty assets in the U.S.. That's a lot of land!

Black Stone Minerals is one of the leading portfolios in the U.S. for oil and gas mineral rights. They have assets in over 40 states and 60 productive basins, covering both established and emerging plays. They also pay distributions to their unitholders every quarter. Their unit price as of July 1, 2023 was $15.95, which is not bad considering the volatility of the energy market.

Black Stone Minerals has been able to grow its production, revenue, and cash flow over the years. They have also diversified their portfolio by acquiring new assets and entering into new agreements with operators. They have a skilled technical team that evaluates potential acquisition targets and develops prospects to promote to the industry.

Reasons To Avoid Black Stone Minerals

Here are some of the reasons why I think BSM could be a bad investment choice:

BSM is highly dependent on the performance of its operating partners, who are responsible for drilling and producing oil and gas from the mineral rights that BSM owns. This means that BSM has little control over the timing, amount and quality of its production and revenue. If the operating partners fail to deliver, BSM will suffer.

BSM is exposed to the volatility of oil and gas prices, which have been fluctuating significantly in recent years due to various factors such as supply and demand, geopolitics, environmental regulations and technological innovations. BSM's revenue and cash flow are directly affected by the changes in oil and gas prices, which can be unpredictable and unfavorable.

BSM has a high payout ratio, which means that it distributes most of its cash flow to its unitholders as dividends. While this may seem attractive to income-seeking investors, it also limits BSM's ability to reinvest in its business, grow its asset base, diversify its portfolio and reduce its debt. BSM's dividend sustainability is also questionable, as it may not be able to maintain or increase its dividend payments in the future if its cash flow declines or its expenses increase.

BSM faces competition from other mineral rights owners, as well as alternative energy sources that are becoming more popular and affordable. BSM's mineral rights may lose value or become obsolete if the demand for oil and gas decreases or if new technologies emerge that can produce energy more efficiently and cleanly. BSM may also face legal challenges or regulatory changes that could affect its operations or profitability.

These are just some of the reasons why I think you might want to avoid investing in BSM. If you want to learn more about this company, you can check out their website or their SEC filings. 

Thank you for watching this video. If you enjoyed it, please give it a thumbs up and subscribe to my channel for more content like this. Also, let me know in the comments what you think about BSM or any other stock that you want me to review. Until next time, happy investing! 

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About the Author

Dylan is an investing and passive income watch dog. He created Level Up Your Wealth to prevent people from wasting money on scam programs and to recommend high quality offers.

Dylan Rieger

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