Brigham Minerals, Inc., a leading mineral and royalty interest acquisition company, today announced record operational and financial results for the quarter and year ended December 31, 2021, along with recent developments and 2022 guidance. Brigham Minerals missed estimated earnings by 5.41%, reporting an EPS of $0.35 versus an estimate of $0.37, while last quarter the company beat on EPS by $0.03 which was followed by a 0.17% drop in the share price the next day. Brigham currently trades +1.72% over the past month, and 47.84% over the past year as oil and gas have seen tighter markets and higher commodity prices.
BRIGHAM PAST RESULTS
Brigham Past Performance – Benzinga
Brigham has shown consistent earnings and revenue growth over the past 4 quarters as the oil and gas industry has seen stock prices soaring over the past 12 months. During the earnings call Robert M. (“Rob”) Roosa, Chief Executive Officer, commented, “We are entering 2022 from a position of strength with a record 12.9 net activity wells in inventory, significant accretive ground game acquisition momentum, and continued portfolio optimization. Our record activity well inventory is being driven by both organic development on our assets with over 200 gross wells spud on our minerals during the fourth quarter as well as our technical team executing on our accretive acquisition thesis, which added 2.8 net activity wells to inventory during the quarter. Importantly, our acquisition momentum has continued to carry over into the first quarter of 2022 with our entry into our largest Midland Basin deal to date. This transaction is anticipated to add approximately 250 Boe/d of production in 2022 as well as to continue to provide organic development from large, highly active operators including Pioneer and Endeavor. In total, our team has executed over $135 million in acquisitions since the beginning of Q4 2021 that, when combined with the steady PDP growth on our assets, is anticipated to allow us to increase our Quarterly Base Dividend in 2022 by 14% to $0.16 per share. Finally, we have continued to execute on our portfolio optimization efforts and subsequent to year-end divested $7.1 million in Anadarko Basin Merge minerals, which will provide us incremental capital to redeploy to the Permian.”
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FOURTH QUARTER 2021 OPERATIONAL & FINANCIAL HIGHLIGHTS
- Daily production volumes of 9,170 Boe/d (71% liquids, 51% oil)
- Production up 1% sequentially from Q3 2021
- Record royalty revenues totaling $47.0 million
- Up 16% sequentially from Q3 2021 driven by 15% higher realized prices and 1% higher volumes
- Continued cost control efforts drive general and administrative costs (before share-based compensation) below the revised 2021 guidance
- Full-year 2021 general and administrative costs 5% below revised 2021 guidance and 17% below initial 2021 guidance
- Record net income totaling $21.7 million
- Record Adjusted EBITDA(1) totaling $39.6 million up 13% sequentially from Q3 2021
- Declared Q4 2021 dividend of $0.45 per share of Class A common stock(2)
- Base Dividend of $0.14 per share of Class A common stock
- Variable Dividend increased 19% sequentially to $0.31 per share of Class A common stock
- Represents 80% payout of Discretionary Cash Flow ex lease bonus (1)
- Record 12.9 net (1,723 gross) activity wells at year-end comprised of 7.4 net (850 gross) DUCs and 5.5 net (873 gross) permits
- 24% sequential increase in net DUCs to 7.4 net locations and 31% sequential increase in net permits to 5.5 net locations
- Permian Basin net activity wells increased to a record 7.2 net locations
- 24.5 net activity wells in inventory at year-end normalized to 5,000’ laterals
- Acquired 8,855 net royalty acres deploying $104 million in mineral acquisition capital
- Closed DJ Basin acquisition totaling 8,395 net royalty acres that is estimated to add 1,100 to 1,200 Boe/d to 2022 production (50% liquids)
- Deployed $9.8 million in-ground game acquisition capital adding 460 net royalty acres (93% to the Permian Basin)
- 46% of acquired net locations comprised of PDP, DUCs, and permits
- Ground game acquisitions entirely funded via portfolio rationalization and retained cash
- Undrawn revolver capacity of $137.0 million and $20.8 million cash balance as of December 31, 2021
- Conservative leverage at 0.5x last quarter annualized Adjusted EBITDA(1)
- RECENT DEVELOPMENTS
- Subsequent to year-end, continued portfolio optimization with divestiture of $7.1 million
- Divested undeveloped Anadarko Basin Merge minerals with estimated 2022 production totaling 40 Boe/d
- Significant 2022 acquisition momentum with entry into $32 million Midland Basin acquisition with Echo Minerals
- Acquiring approximately 1,800 net royalty acres with 2022 production totaling approximately 225 – 275 Boe/d
- Anticipated to be developed by Pioneer Natural Resources and Endeavor Energy Resources with 0.4 net activity wells
- Transaction expected to close in early-to-mid April 2022, subject to continued diligence and satisfaction of customary closing conditions
2022 GUIDANCE
- Anticipate increasing Quarterly Base Dividend 14% to $0.16 per share ($0.64 per share annualized) beginning with Q1 2022 Dividend(2)
- Accretive acquisitions and continued growth in PDP reserves per share underpins strong and sustainable cash flow profile
- Continue to target 75 – 80% total payout ratio inclusive of Base plus Variable Dividend
- Full Year 2022 production guidance of 11,300 to 12,000 Boe/d driving year-over-year production growth of greater than 25%
- Anchored by current producing locations, record activity wells, and anticipated 2022 ground game acquisitions
- To see additional detail visit BusinessWire for the full financials and quarterly results.
- Subsequent to year-end, continued portfolio optimization with divestiture of $7.1 million
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