Brigham Minerals, Inc. (MNRL): Business Model Canvas

Key Partnerships

Oil and gas exploration companies:

Brigham Minerals, Inc. forms partnerships with oil and gas exploration companies to acquire mineral and royalty interests on their behalf. These partnerships allow us to participate in the development of new oil and gas resources and provide a stream of income through royalties.

Landowners and mineral rights holders:

We collaborate with landowners and mineral rights holders to secure mineral and royalty interests on their properties. These partnerships are essential for acquiring rights to develop oil and gas resources and ensuring a fair and mutually beneficial agreement for all parties involved.

Processing and logistics service providers:

To efficiently manage the production and transportation of oil and gas resources, Brigham Minerals partners with processing and logistics service providers. These partnerships help streamline operations and ensure the timely delivery of resources to the market.

Legal and regulatory consultants:

In the highly regulated oil and gas industry, Brigham Minerals relies on partnerships with legal and regulatory consultants to navigate complex laws and regulations. These consultants provide expert guidance on compliance matters and help mitigate any potential legal risks.

Key Activities

Brigham Minerals, Inc. (MNRL) engages in several key activities to drive its business model. These activities are crucial in ensuring the company's success in acquiring, managing, and optimizing mineral and royalty interests.

• Acquiring and managing mineral and royalty interests: Brigham Minerals focuses on identifying and acquiring mineral and royalty interests in oil and gas properties across the United States. This involves conducting thorough due diligence, assessing the potential of the assets, and negotiating favorable deals to build a diversified portfolio.
• Negotiating lease agreements: Once mineral and royalty interests are acquired, the company enters into lease agreements with operators to allow for the exploration and production of oil and gas resources. Brigham Minerals leverages its expertise and industry relationships to negotiate agreements that provide value for both parties.
• Revenue collection from producing wells: Brigham Minerals generates revenue through royalty payments from producing wells on its properties. The company closely monitors production levels, ensures accurate reporting from operators, and collects payments in a timely manner to maximize returns for its stakeholders.
• Monitoring and managing production activities: To optimize the performance of its assets, Brigham Minerals actively monitors and manages production activities on its properties. This includes overseeing well maintenance, production optimization efforts, and implementing strategies to maximize the long-term value of the mineral and royalty interests.

By focusing on these key activities, Brigham Minerals is able to build a profitable business model centered around acquiring, managing, and optimizing mineral and royalty interests in the oil and gas industry.

Key Resources

Brigham Minerals, Inc. relies on a variety of key resources to drive its business model. These resources are crucial for the company to identify, acquire, and manage mineral and royalty interests effectively. Here are the key resources that Brigham Minerals, Inc. leverages:

Portfolio of Mineral and Royalty Interests:

• One of the primary resources for Brigham Minerals, Inc. is its portfolio of mineral and royalty interests. These interests provide the company with the rights to receive royalty payments from oil and gas production on specified properties.
• By strategically acquiring these interests, Brigham Minerals, Inc. is able to generate consistent cash flows and unlock value from oil and gas reserves.

Expertise in Geological and Legal Analysis:

Brigham Minerals, Inc. possesses a team of experienced geologists and legal professionals who specialize in analyzing geological data and legal documents related to mineral rights. This expertise allows the company to evaluate potential acquisition targets effectively and mitigate risks associated with mineral and royalty interests.

Relationships with Oil and Gas Companies:

Brigham Minerals, Inc. has established strong relationships with oil and gas operators and producers in key energy-producing regions. These relationships provide the company with access to valuable market insights, industry trends, and potential investment opportunities.

Proprietary Databases for Tracking Royalties:

To manage its extensive portfolio of mineral and royalty interests, Brigham Minerals, Inc. utilizes proprietary databases and software systems for tracking royalties, monitoring production levels, and analyzing financial performance. These tools enable the company to make informed decisions, optimize asset allocations, and maximize returns for its shareholders.

Value Propositions

Brigham Minerals, Inc. (MNRL) offers a compelling value proposition to investors seeking exposure to commodities through mineral and royalty interests. Some key value propositions include:

Providing investors with direct exposure to commodities:

By investing in mineral and royalty interests, investors are able to directly participate in the production and cash flows generated from commodities such as oil, gas, and other minerals. This provides a unique opportunity for investors to benefit from the upside potential of commodity prices.

Diversified mineral and royalty interests across multiple geographies:

Brigham Minerals, Inc. has strategically diversified its asset base across multiple geographies, reducing concentration risk and providing investors with exposure to a wide range of resource-rich areas. This diversification helps to mitigate risk and enhance the stability of cash flow streams.

Expert management of mineral assets:

The company's management team possesses extensive experience and expertise in evaluating, acquiring, and managing mineral assets. This expertise allows Brigham Minerals, Inc. to effectively identify and capitalize on attractive investment opportunities, maximizing value for investors.

Attractive and consistent dividend payments:

Brigham Minerals, Inc. is committed to delivering value to its shareholders through attractive and consistent dividend payments. By generating stable and predictable cash flows from its mineral and royalty interests, the company is able to provide shareholders with regular income distributions.

• Investors benefit from direct exposure to commodities through mineral and royalty interests.
• Asset diversification reduces risk and enhances stability of cash flows.
• Experienced management team maximizes value for investors through effective asset management.
• Regular dividend payments provide investors with a source of income.

Customer Segments

Brigham Minerals, Inc. targets a diverse range of customer segments, including:

• Individual investors seeking exposure to commodities
• Institutional investors looking to diversify their portfolios
• Energy companies seeking capital for development and production activities
• Mineral owners interested in monetizing their mineral rights

Customer Relationships

Brigham Minerals, Inc. places high importance on building strong and lasting relationships with its investors. The company strives to communicate effectively and transparently with its investors to provide them with the necessary information to make informed decisions.

• Investor communications and updates: Brigham Minerals, Inc. regularly communicates with its investors through various channels, including quarterly reports, press releases, and investor presentations. The company also holds annual shareholder meetings to provide updates on the company's performance and future prospects.
• Transparency in financial reporting: The company is committed to transparency in its financial reporting, providing investors with detailed information on its financial performance, operations, and growth prospects. Brigham Minerals, Inc. ensures that investors have access to accurate and timely financial information to make informed investment decisions.
• Regular dividend distributions: Brigham Minerals, Inc. understands the importance of regular dividend distributions to its investors. The company aims to provide consistent and reliable dividend payments to reward investors for their investment in the company.
• Dedicated investor services team: Brigham Minerals, Inc. has a dedicated investor services team that is available to assist investors with any questions or concerns they may have. The team provides personalized support to investors, helping them navigate the complexities of investing in the oil and gas mineral rights sector.

Channels

Brigham Minerals, Inc. utilizes a variety of channels to communicate with stakeholders, investors, and the general public. These channels provide different avenues for distributing information about the company and its operations.

Corporate Website: Brigham Minerals maintains a corporate website that serves as the primary hub for information about the company. This website contains detailed information about Brigham Minerals' business model, financial performance, leadership team, and current projects. Investors and stakeholders can access press releases, financial reports, and other important updates on the website.

Investor Presentations and Roadshows: Brigham Minerals regularly participates in investor presentations and roadshows to connect with current and potential investors. These presentations provide an opportunity for the company to showcase its operations, growth strategy, and financial performance. Investor roadshows allow Brigham Minerals to engage directly with investors, answer questions, and provide updates on the company's progress.

Financial News Outlets: Brigham Minerals disseminates information through various financial news outlets to reach a broader audience. The company may issue press releases, participate in interviews, or publish articles in financial publications to share important updates and developments with the investing community.

Stock Exchange Listings: Brigham Minerals is listed on a major stock exchange, providing investors with an accessible way to trade shares of the company. Being listed on a stock exchange also enhances the company's visibility and credibility among investors and analysts.

Customer Segments

Brigham Minerals, Inc. caters to a diverse range of customers who are interested in investing in mineral rights and royalties. The company's customer segments include:

• Individual investors: Individuals who are looking to diversify their investment portfolios with exposure to natural resources.
• Institutional investors: Large financial institutions, such as pension funds and insurance companies, that seek to invest in mineral rights to generate returns for their clients.
• Investment funds specializing in natural resources: Funds that focus specifically on investing in natural resources, including oil, gas, and minerals, as part of their investment strategy.
• Dividend-focused investors: Investors who prioritize receiving regular dividend payments as part of their investment strategy and see mineral rights as a source of steady income.

By targeting these distinct customer segments, Brigham Minerals, Inc. is able to attract a wide variety of investors who are interested in profiting from the ownership of mineral rights and royalties.

Cost Structure

Brigham Minerals, Inc. operates with a cost structure that encompasses various expenses involved in their mineral rights business. These costs include:

• Acquisition costs of mineral rights: Brigham Minerals, Inc. incurs costs in acquiring mineral rights from landowners or other mineral rights holders. These costs can vary depending on the location, quality, and size of the mineral rights being acquired.
• Operational management expenses: The company requires resources to manage and oversee their operational activities related to the exploration, development, and production of mineral rights. These expenses cover salaries, benefits, and other operational costs.
• Legal and compliance fees: Brigham Minerals, Inc. needs to ensure that their operations comply with various laws and regulations governing the mineral rights industry. This involves hiring legal counsel and paying for compliance fees to maintain regulatory standards.
• Taxes and royalties to governments: The company is obligated to pay taxes and royalties to governments for the extraction and production of minerals from their properties. These costs can significantly impact the overall cost structure of the business.

Revenue Streams

Brigham Minerals, Inc. generates revenue from various streams related to the oil and gas industry. These revenue streams are essential to the company's financial success and growth. The key revenue streams for Brigham Minerals, Inc. are as follows:

- Royalties from oil and gas production:

• One of the primary revenue streams for Brigham Minerals, Inc. is royalties from oil and gas production on the properties it owns mineral rights to. The company earns a percentage of the revenue generated by oil and gas production on these properties, providing a steady stream of income.

- Lease bonuses:

• Brigham Minerals, Inc. also generates revenue through lease bonuses, which are one-time payments made by oil and gas companies to secure the right to explore and develop a property. These lease bonuses provide an upfront source of revenue for the company.

- Income from selling interests in mineral rights:

• Another revenue stream for Brigham Minerals, Inc. is income from selling interests in mineral rights. The company may choose to sell a portion of its mineral rights to other companies or investors, generating immediate cash flow.

- Gains from the appreciation of asset values:

• Brigham Minerals, Inc. may also realize gains from the appreciation of asset values. As the value of oil and gas properties increases over time, the company can benefit from capital appreciation, enhancing its overall revenue stream.