Dorchester Minerals Reports $92.4 Million Net Income and $146.5 Million Distributed to Partners

Dorchester Minerals, L.P. reported a net income of $92.4 million for the fiscal year ending December 31, 2024, a significant increase from the previous year's net income of $81.5 million. The partnership distributed $146.5 million to its limited partners, reflecting a strong cash flow driven by increased sales volumes from its Royalty Properties, particularly in the Permian Basin and Bakken region. The total revenue from Royalty Properties was bolstered by new drilling activities and acquisitions, despite a decline in net profits interest (NPI) sales volumes and lower realized natural gas prices compared to 2023.

The partnership made several strategic acquisitions during the fiscal year, including mineral, royalty, and overriding royalty interests totaling approximately 14,225 net mineral acres across New Mexico and Texas, valued at $202.6 million. Other notable acquisitions included overriding royalty interests in Weld County, Colorado, and mineral interests in two counties in Colorado, which were valued at $16 million and $17 million, respectively. These acquisitions were executed through the issuance of common units, reflecting the partnership's strategy to grow its asset base while maintaining a conservative capital structure.

Operationally, Dorchester Minerals reported first payments on 1,943 gross and 12 net new wells on its Royalty Properties, with the majority of activity concentrated in the Permian Basin, Bakken region, South Texas, and the Rockies. The partnership's total productive wells reached 1,379, with 543 in Texas and 552 in North Dakota. The increase in production was attributed to higher baseline production and suspense releases from new wells, although some declines were noted in legacy wells.

The partnership's financial performance was impacted by fluctuations in oil and natural gas prices, which have historically been volatile. The average sales price for oil from Royalty Properties was $66.74 per barrel, while natural gas sold for $1.37 per thousand cubic feet. The decrease in average sales prices compared to the previous year was a contributing factor to the overall revenue dynamics. Additionally, production taxes and operating expenses rose by 19%, primarily due to increased oil production taxes and post-production costs.

Looking ahead, Dorchester Minerals remains focused on its strategy of acquiring additional oil and natural gas properties while managing its balance sheet conservatively. The partnership anticipates that continued operator development will help offset declines in production from mature properties. However, it acknowledges the potential for market volatility and economic uncertainties, including the impact of ongoing global conflicts and inflationary pressures, which could affect future cash flows and distributions to unitholders.