Black Stone Minerals (BSM) is expected to deliver better-than-expected Q3 results driven by stronger oil production and rising natural gas volumes, RBC Capital Markets said in a note Thursday.

The company is scheduled to report earnings on Nov. 2, the note added.

The analysts said their Q3 estimates for earnings per share and cash flow per share have increased to $0.32 and $0.42, respectively, compared with consensus estimates of $0.25 and $0.35.

They also model a $0.3 million hedge settlement loss, a smaller benefit from cost recoveries than in Q2, and $4.5 million in lease bonus payments, down from the previous quarter.

The analysts estimate total production of 36.3 thousand barrels of oil equivalent per day, including 9.3 thousand barrels of oil per day. They also project $89 million in cash available for distributions, with the declared distribution set to remain at $0.32 per share.

RBC has a sector perform rating and a $16 price target on Black Stone Minerals.

Price: 14.84, Change: +0.09, Percent Change: +0.61