Dorchester Minerals, L.P. (DMLP) Bundle
A Brief History of Dorchester Minerals, L.P.
Company Overview
Dorchester Minerals, L.P. is a Delaware limited partnership primarily engaged in the acquisition, management, and development of mineral and royalty interests in oil and natural gas properties across the United States. Established in 2001, the partnership has strategically grown its asset base through various acquisitions over the years, focusing on areas with high production potential.
Recent Financial Performance
As of September 30, 2024, Dorchester Minerals reported significant financial results:
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Operating Revenues | $53,472,000 | $42,594,000 | $121,811,000 | $113,380,000 |
| Total Costs and Expenses | $17,059,000 | $13,131,000 | $43,603,000 | $36,043,000 |
| Net Income | $36,413,000 | $29,463,000 | $78,208,000 | $77,337,000 |
| Net Income per Common Unit | $0.87 | $0.73 | $1.89 | $1.94 |
| Weighted Average Units Outstanding | 40,167 | 38,792 | 39,954 | 38,514 |
Acquisitions and Growth Strategy
In 2024, Dorchester Minerals continued its aggressive acquisition strategy. Notable transactions included:
- Acquired mineral interests representing approximately 14,225 net mineral acres in Texas and New Mexico for $202.6 million in common units.
- Acquired approximately 1,204 net royalty acres in Weld County, Colorado for $16.0 million.
- Acquired approximately 1,485 net royalty acres in Colorado for $17.0 million.
Partnership Capital Structure
As of September 30, 2024, the partnership capital structure was as follows:
| Partnership Capital | General Partner | Unitholders | Total |
|---|---|---|---|
| Balance at September 30, 2024 | ($766,000) | $397,229,000 | $396,463,000 |
| Balance at December 31, 2023 | $113,000 | $185,444,000 | $185,557,000 |
Future Outlook
Looking ahead, Dorchester Minerals aims to capitalize on its strategic acquisitions and the rising demand for oil and gas. The partnership's focus on expanding its mineral and royalty interests positions it well for sustained growth in the competitive energy sector.
A Who Owns Dorchester Minerals, L.P. (DMLP)
Ownership Structure
As of 2024, Dorchester Minerals, L.P. (DMLP) is structured as a limited partnership, with ownership divided between a general partner and unitholders. The general partner is responsible for managing the partnership, while unitholders are the investors who hold common units in the partnership.
General Partner
The general partner of Dorchester Minerals, L.P. is Dorchester Minerals Management LP. As of September 30, 2024, the balance of the general partner's capital was $(766,000).
Unitholder Distribution
As of September 30, 2024, the unitholders' capital totaled $397,229,000, representing an increase from $185,444,000 at the end of the previous year. The total number of common units issued and outstanding was 47,340.
Major Unitholders
The following table summarizes the major unitholders of Dorchester Minerals, L.P. as of September 30, 2024:
| Unitholder | Common Units Held | Percentage Ownership |
|---|---|---|
| Dorchester Minerals Management LP | Unknown | General Partner |
| Institutional Shareholders | Unknown | Various |
| Individual Investors | Unknown | Various |
Financial Performance
In the third quarter of 2024, Dorchester Minerals reported a net income of $36,413,000, compared to $29,463,000 in the same period of 2023. The net income allocation for unitholders was $35,140,000. The average net income per common unit (basic and diluted) was $0.87.
Recent Acquisitions
Recent acquisitions have significantly impacted the partnership's capital structure. In 2024, Dorchester Minerals made notable acquisitions, including:
- On March 28, 2024, the partnership acquired mineral interests totaling 1,485 net royalty acres in Colorado for 505,369 common units valued at $17.0 million.
- On September 30, 2024, the partnership acquired mineral interests totaling 1,204 net royalty acres in Weld County, Colorado for 530,000 common units valued at $16.0 million.
Distributions to Unitholders
The partnership announced a cash distribution of $0.995785 per common unit for the third quarter of 2024. This distribution was payable to common unitholders of record as of October 28, 2024.
Liquidity and Capital Resources
As of September 30, 2024, Dorchester Minerals reported cash and cash equivalents of $56,468,000, an increase from $47,025,000 at the end of 2023. The partnership's total liabilities stood at $6,889,000.
Dorchester Minerals, L.P. (DMLP) Mission Statement
Overview
Dorchester Minerals, L.P. focuses on acquiring and managing a diverse portfolio of mineral and royalty interests in oil and natural gas properties. The company aims to maximize unitholder value through disciplined acquisitions, strategic partnerships, and efficient management of its assets.
Mission Statement
The mission of Dorchester Minerals, L.P. is to:
- Enhance unitholder value through a strategic approach to acquiring high-quality mineral and royalty interests.
- Maintain a strong financial position while managing risks associated with commodity price volatility.
- Provide consistent cash distributions to unitholders based on operational cash flows.
- Commit to responsible and sustainable practices in the exploration and development of natural resources.
Financial Performance
As of September 30, 2024, Dorchester Minerals reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Operating Revenues | $53.472 million | $42.594 million | 25.5% |
| Net Income | $36.413 million | $29.463 million | 23.7% |
| Net Income per Common Unit | $0.87 | $0.73 | 18.9% |
| Total Assets | $403.352 million | $191.065 million | 111.1% |
| Cash and Cash Equivalents | $56.468 million | $47.025 million | 20.0% |
| Total Liabilities | $6.889 million | $5.508 million | 24.9% |
Acquisitions and Growth Strategy
Dorchester Minerals has actively pursued acquisitions to expand its asset base. Recent transactions include:
- Acquisition of mineral interests totaling approximately 1,204 net royalty acres in Weld County, Colorado for $16.0 million on September 30, 2024.
- Acquisition of mineral interests totaling approximately 1,485 net royalty acres in Colorado for $17.0 million on March 28, 2024.
- Acquisition of mineral and royalty interests totaling approximately 716 net royalty acres in Texas for $14.4 million on September 29, 2023.
Distributions to Unitholders
For the quarter ending September 30, 2024, Dorchester Minerals announced a cash distribution of $0.995785 per common unit, payable on November 7, 2024. This reflects the company's commitment to returning capital to its unitholders while maintaining a strong operational cash flow.
Market Position and Risk Management
Dorchester Minerals operates in a highly volatile market influenced by commodity price fluctuations. The company employs a robust risk management strategy to mitigate the impact of these fluctuations on its financial performance. Key strategies include:
- Maintaining a diversified portfolio of mineral interests across multiple regions.
- Implementing prudent financial management practices to ensure liquidity and operational flexibility.
- Engaging in strategic partnerships to enhance operational efficiencies and reduce costs.
Conclusion
Dorchester Minerals, L.P. continues to position itself as a leading player in the mineral and royalty sector through strategic acquisitions and a commitment to maximizing unitholder value while managing risks effectively.
How Dorchester Minerals, L.P. (DMLP) Works
Business Model
Dorchester Minerals, L.P. operates primarily as a royalty and mineral interest owner, focusing on the acquisition and management of oil and natural gas properties. The company holds interests in various properties, generating revenue through royalties from oil and natural gas production without direct operational control.
Financial Performance
As of September 30, 2024, Dorchester reported total operating revenues of $53.5 million for the third quarter, an increase from $42.6 million in the same quarter of 2023. The breakdown of operating revenues includes:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Royalties | $45,147 | $35,790 |
| Net profits interest | $7,777 | $6,033 |
| Lease bonus and other | $548 | $771 |
| Total Operating Revenues | $53,472 | $42,594 |
Net Income and Distributions
Dorchester's net income for the third quarter of 2024 was $36.4 million, compared to $29.5 million for the same period in 2023. The allocation of net income is as follows:
| Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| General Partner | $1,273 | $1,029 |
| Unitholders | $35,140 | $28,434 |
| Total Net Income | $36,413 | $29,463 |
Distributions for Q3 2024 amounted to $29.1 million, with a distribution per common unit of $0.995785, reflecting the company's commitment to return cash to its unitholders.
Operational Metrics
The operational performance of Dorchester is reflected in the sales volumes and prices of oil and natural gas:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Royalty Properties natural gas sales (mmcf) | 1,569 | 1,344 | 17% |
| Royalty Properties oil sales (mbbls) | 642 | 477 | 35% |
| NPI natural gas sales (mmcf) | 642 | 412 | 56% |
| NPI oil sales (mbbls) | 198 | 135 | 47% |
Commodity Pricing
The average indicated prices for oil and natural gas sales during Q3 2024 were:
| Commodity | Price Q3 2024 | Price Q3 2023 |
|---|---|---|
| Royalty Properties oil sales ($/bbl) | $69.91 | $68.66 |
| Royalty Properties natural gas sales ($/mcf) | $1.08 | $2.23 |
| NPI oil sales ($/bbl) | $65.51 | $66.29 |
| NPI natural gas sales ($/mcf) | $1.27 | $1.92 |
Acquisitions and Capital Expenditures
In 2024, Dorchester has made strategic acquisitions to enhance its portfolio. Notable acquisitions include:
- Acquisition of mineral and royalty interests totaling approximately 14,225 net mineral acres in New Mexico and Texas for $202.6 million on September 30, 2024.
- Acquisition of approximately 1,204 net royalty acres in Weld County, Colorado for $16.0 million on September 30, 2024.
- Acquisition of approximately 1,485 net royalty acres in Colorado for $17.0 million on March 28, 2024.
Liquidity Position
As of September 30, 2024, Dorchester reported cash and cash equivalents of $56.5 million, an increase from $47.0 million at the end of 2023. The company maintains a strong liquidity position to support its operations and distributions to unitholders.
Balance Sheet Highlights
The condensed consolidated balance sheet as of September 30, 2024, is summarized as follows:
| Category | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Total Assets | $403,352 | $191,065 |
| Total Liabilities | $6,889 | $5,508 |
| Total Partnership Capital | $396,463 | $185,557 |
How Dorchester Minerals, L.P. (DMLP) Makes Money
Revenue Streams
Dorchester Minerals, L.P. generates revenue primarily through two main channels: royalties from oil and natural gas production and net profits interests (NPI).
Royalty Income
In the third quarter of 2024, cash receipts from Royalty Properties totaled $40.2 million. This income is derived from:
- Oil Sales: Average price for oil was $69.91/bbl.
- Natural Gas Sales: Average price for natural gas was $1.08/mcf.
The breakdown of oil and natural gas sales volumes for the Royalty Properties during this period is as follows:
| Type | Volume (Units) | Volume (Previous Year) | % Change |
|---|---|---|---|
| Natural Gas Sales | 1,569 mmcf | 1,344 mmcf | 17% |
| Oil Sales | 642 mbbls | 477 mbbls | 35% |
Net Profits Interest (NPI)
For the same quarter, cash receipts from the NPI amounted to $6.0 million, with the following average prices:
- Oil Sales: Average price was $65.51/bbl.
- Natural Gas Sales: Average price was $1.27/mcf.
The sales volumes for the NPI properties are detailed below:
| Type | Volume (Units) | Volume (Previous Year) | % Change |
|---|---|---|---|
| Natural Gas Sales | 642 mmcf | 412 mmcf | 56% |
| Oil Sales | 198 mbbls | 135 mbbls | 47% |
Acquisitions and Growth Strategy
Dorchester Minerals has been actively increasing its asset base through acquisitions. In 2024, the partnership acquired:
- Mineral Interests: Approximately 1,204 net royalty acres in Weld County, Colorado for $16.0 million.
- Additional Acquisitions: A total of $235.7 million worth of oil and natural gas properties were acquired in 2024.
Operating Expenses and Net Income
For the third quarter of 2024, total operating revenues reached $53.5 million, with costs and expenses amounting to $17.1 million. This resulted in a net income of $36.4 million, up from $29.5 million in the previous year.
The net income allocation included:
- General Partner: $1.3 million
- Unitholders: $35.1 million
Cash Distributions
The partnership has consistently paid distributions to its unitholders. As of September 30, 2024, the distribution was $0.995785 per common unit, reflecting the earnings generated from its royalty and NPI streams.
Financial Position
As of September 30, 2024, Dorchester Minerals reported:
| Item | Amount (Thousands) |
|---|---|
| Cash and Cash Equivalents | $56,468 |
| Total Assets | $403,352 |
| Total Liabilities | $6,889 |
| Partnership Capital | $396,463 |
These figures reflect the strong financial health of the partnership, allowing it to continue its strategy of growth through acquisitions while maintaining attractive returns to its investors.
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Article updated on 8 Nov 2024
Resources:
- Dorchester Minerals, L.P. (DMLP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Dorchester Minerals, L.P. (DMLP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Dorchester Minerals, L.P. (DMLP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.