Dorchester Minerals Reports $43.2 Million Revenue in Q1 2025, Net Income Declines

Dorchester Minerals, L.P. reported a total operating revenue of $43.2 million for the first quarter of 2025, a significant increase of 39% compared to $31.0 million in the same period of 2024. The rise in revenue was primarily driven by a 52% increase in royalties, which reached $37.8 million, up from $24.9 million year-over-year. However, net income for the quarter slightly decreased to $17.6 million, down from $18.2 million in the prior year, resulting in a net income per common unit of $0.36, compared to $0.44 in the first quarter of 2024.

The partnership's costs and expenses surged by 99% to $25.5 million, largely due to a 142% increase in depreciation, depletion, and amortization expenses, which rose to $16.8 million from $6.9 million. This increase reflects the impact of recent acquisitions and adjustments in estimates of oil and natural gas reserves. General and administrative expenses also rose by 32% to $4.3 million, attributed to higher legal and professional service fees and increased compensation expenses related to an expanded equity program for employee retention.

In terms of operational developments, Dorchester Minerals expanded its asset base through strategic acquisitions, including mineral and royalty interests in approximately 14,225 net mineral acres across New Mexico and Texas, valued at $202.6 million. This acquisition was part of a non-taxable contribution and exchange agreement completed in September 2024. The partnership also acquired additional royalty interests in Colorado, further enhancing its portfolio. As of March 31, 2025, the partnership owned interests in 594 counties and parishes across 28 states.

The partnership's cash flow from operating activities increased by 19% to $33.4 million, driven by higher revenue receipts from its Royalty Properties. Cash and cash equivalents at the end of the quarter stood at $41.5 million, a slight decrease from $42.5 million at the end of 2024. The partnership announced a cash distribution of $0.725835 per common unit for the first quarter of 2025, reflecting its commitment to returning value to unitholders.

Looking ahead, Dorchester Minerals remains cautious about the volatility in oil and natural gas prices, which are influenced by global market conditions, including geopolitical tensions and supply chain disruptions. The partnership continues to monitor these factors closely, as they could impact future revenues and operating costs. Despite these uncertainties, management believes that the partnership has sufficient liquidity to meet its operational needs and distribution obligations.