Dorchester Minerals, L.P. reported a decline in financial performance for the third quarter of 2025 compared to the same period in 2024. The partnership's total operating revenues for the three months ended September 30, 2025, were $35.4 million, down from $53.5 million in the prior year. This decrease was primarily driven by a significant drop in royalties, which fell to $31.5 million from $45.1 million, and net profits interest revenue, which decreased from $7.8 million to $3.5 million. The partnership's net income also saw a substantial decline, totaling $11.2 million for the quarter, compared to $36.4 million in the same quarter of the previous year.
In terms of operational metrics, Dorchester's oil sales volumes decreased by 23% year-over-year for the third quarter, while natural gas sales volumes increased by 2%. The average sales price for oil dropped by 17% to $56.27 per barrel, and the average price for natural gas surged by 145% to $2.35 per thousand cubic feet. The partnership attributed the decline in oil sales volumes to lower production from legacy wells and reduced suspense releases on new wells, although this was partially offset by increased production from recently acquired properties in the Permian Basin.
Strategically, Dorchester Minerals made a notable acquisition on August 29, 2025, acquiring approximately 3,050 net royalty acres in Adams County, Colorado, for $23 million in common units. This acquisition is expected to complement the partnership's existing portfolio and enhance its operational capabilities. The partnership's total assets decreased to $330.4 million as of September 30, 2025, down from $366.8 million at the end of 2024, reflecting the impact of lower revenues and increased liabilities.
Looking ahead, Dorchester Minerals remains cautious about the future, citing ongoing volatility in oil and natural gas prices due to geopolitical tensions, including conflicts in Ukraine and the Middle East, as well as fluctuating market conditions. The partnership's management emphasized the importance of monitoring these external factors, which could significantly impact its financial performance and liquidity. Despite these challenges, Dorchester expects to maintain sufficient liquidity to fund its operations and distributions to unitholders, although it acknowledges the potential for reduced cash flows if market conditions worsen.
About DORCHESTER MINERALS, L.P.
Dorchester Minerals, L.P. is a publicly traded partnership that owns and manages oil and natural gas royalty and mineral interests across multiple U.S. states. It generates revenue primarily from royalty payments and net profits interests, focusing on acquiring, developing, and overseeing producing properties. The company emphasizes conservative capital management, asset protection, and strategic acquisitions to provide unitholders with attractive yields from its diversified energy assets.
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