Long Position on MNRL @ $25.50 on 5/13/2022 (Fundamentals)

Brigham Minerals, Inc. (MNRL) 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. 

On May 4th, it  reported 1st Quarter March 2022 earnings of $0.62 per share on revenue of $71.4 million. The consensus earnings estimate was $0.46 per share on revenue of $55.1 million. Revenue grew 111.5% on a year-over-year basis. Shares are heading higher in an upward trading channel. Higher share prices are expected as crude oil contiues to trade above the $100 mark. Note the 50-day moving average shown on the chart.

Entry Point: $25.50

Stop Loss: $24.00

Trading Range: $16.51 to $28.83

Target Price: $28.00

Updates

5/26/2022 1:05:25 PM

MNRL closed at $30.16

Position closed on 5/26/2022 at price of $30.16 with a 18.27% gain in 13 days.

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