Dorchester Minerals Reports Decline in Revenue and Net Income for Q2 2025

Dorchester Minerals, L.P. reported a decline in financial performance for the second quarter of 2025, with total operating revenues of $32.4 million, down from $37.4 million in the same period of 2024. The decrease in revenue was primarily driven by lower royalties and net profits interest, which fell to $24.4 million and $3.8 million, respectively, compared to $31.6 million and $5.2 million in the prior year. Net income for the quarter was $12.3 million, a significant drop from $23.6 million in the second quarter of 2024, resulting in a net income per common unit of $0.25, down from $0.57.

The partnership's financial position also showed notable changes, with total assets decreasing to $325.6 million as of June 30, 2025, from $366.8 million at the end of 2024. Current assets fell to $59.7 million, primarily due to a reduction in cash and cash equivalents, which decreased to $36.5 million from $42.5 million. The partnership's total liabilities increased slightly to $5.8 million, reflecting a rise in accounts payable and other current liabilities. The total partnership capital also declined to $319.8 million from $361.8 million.

Strategically, Dorchester Minerals has been active in acquisitions, having completed several transactions in 2024 that expanded its mineral and royalty interests. Notably, the partnership acquired approximately 14,225 net mineral acres in Texas and New Mexico for $202.6 million in common units. This acquisition is expected to enhance the partnership's operational footprint and revenue-generating capabilities. The partnership continues to manage its operations across 594 counties and parishes in 28 states, maintaining a focus on optimizing its Royalty Properties.

Operationally, the partnership reported a slight increase in natural gas sales volumes, which rose by 5% in the second quarter of 2025 compared to the previous year. However, oil sales volumes decreased by 6% during the same period. The average sales prices for oil and natural gas also experienced fluctuations, with oil prices dropping by 20% year-over-year. The partnership's general and administrative expenses increased by 11% in the second quarter, attributed to higher data service costs and compensation expenses related to an expanded equity program for employee retention.

Looking ahead, Dorchester Minerals remains cautious about the impact of external factors such as fluctuating commodity prices, geopolitical tensions, and changes in regulatory environments. The partnership anticipates that its cash flows will remain sufficient to fund distributions to unitholders, despite potential uncertainties stemming from ongoing global conflicts and economic volatility. The partnership's management continues to monitor market conditions closely, aiming to navigate the challenges posed by the current economic landscape while pursuing growth opportunities through strategic acquisitions.