Dorchester Minerals, L.P. Reports $11M Net Income

Dorchester Minerals, L.P. has recently released its 10-K report, detailing its business activities and financial performance for the fiscal year ended December 31, 2023. Dorchester Minerals, L.P. is primarily engaged in the acquisition, ownership, and administration of producing and nonproducing natural gas and crude oil royalty, net profit, and leasehold interests in the United States. The company's royalty properties consist of producing and nonproducing mineral, royalty, and overriding royalty, net profits, and leasehold interests in 592 counties and parishes in 28 states. Additionally, the company holds net profits interests representing net profits overriding royalty interests in various properties owned by the operating partnership. Dorchester Minerals Management LP serves as the general partner of Dorchester Minerals, L.P., which was founded in 1982 and is based in Dallas, Texas.

For the fiscal year ended December 31, 2023, Dorchester Minerals, L.P. reported a net income of $114.1 million and distributed $131.6 million to its limited partners. The company made several acquisitions of mineral and royalty interests, representing approximately 716 net royalty acres in Texas, 568 net royalty acres in Texas, and 900 net royalty acres across Louisiana, New Mexico, and Texas. These acquisitions were exchanged for common units representing limited partnership interests in the Partnership valued at $14.4 million, $10.4 million, and $11.0 million, respectively.

In terms of production, Dorchester Minerals, L.P. reported first payments on 1,052 gross and six net new wells on its Royalty Properties, with the majority of the activity concentrated in the Bakken region, Permian Basin, and South Texas. The company also reported total lease bonus of $12.7 million, including consummation of leases or extension of existing leases of its mineral interest in undeveloped properties located in 11 counties in three states.

The company's results during 2023 were mainly affected by industrywide decreases in realized oil and natural gas sales prices versus 2022, partially offset by increases in Royalty Properties and NPI (Net Profits Interest) sales volumes from continued drilling activity in the Permian Basin and Bakken region and incremental production from 2022 and 2023 acquisitions.

In terms of financial performance, Dorchester Minerals, L.P. reported changes in key metrics compared to the previous year. For example, the company's net income for 2023 was $114.1 million, and distributions to limited partners were $131.6 million. The company also reported an increase in oil and natural gas sales volumes attributable to its Royalty Properties and NPI properties. However, the company experienced a decrease in oil and natural gas sales prices, resulting in lower realized revenues.

Furthermore, the company provided insights into its critical accounting estimates, including the utilization of the full cost method of accounting for costs related to its oil and natural gas properties and revenue recognition for its Royalty Properties and NPI. Dorchester Minerals, L.P. also discussed the factors that influenced its results of operations, such as changes in oil and natural gas sales volumes and prices, capital expenditures, and general and administrative expenses.

Overall, Dorchester Minerals, L.P.'s 10-K report provides a comprehensive overview of its business activities and financial performance for the fiscal year ended December 31, 2023, highlighting the company's acquisitions, production activities, and key financial metrics. As a result of these announcements, the company's shares have moved -0.8% on the market, and are now trading at a price of $30.67. For more information, read the company's full 10-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.