Dorchester Minerals, L.P. Announces 2023 Results

Rhea-AI Summary

Dorchester Minerals, L.P. reported a net income of $114,117,000 for the year ended December 31, 2023, with earnings of $2.85 per common unit. The company's operating revenues decreased from $170.8 million in 2022 to $163.8 million in 2023. The Partnership's total proved oil and natural gas reserves were estimated at 83.3 billion cubic feet as of December 31, 2023, with 40% attributed to natural gas. Despite a decrease in net income, the company distributed $137.5 million to common unitholders in 2023. Dorchester Minerals, L.P. trades on the NASDAQ under the symbol DMLP.

Financial Analyst

The reported net income of Dorchester Minerals, L.P. for the year ended December 31, 2023, indicates a decrease when compared to the previous year. This decline in profitability, from $130.6 million to $114.1 million, could be indicative of operational challenges or market conditions that may have affected the company's revenue streams. The dip in operating revenues from $170.8 million to $163.8 million corroborates this trend. It is essential to examine the factors contributing to this downward trajectory, such as changes in commodity prices, production volumes, or operational expenses, to understand the company's financial health and performance.

Furthermore, the distribution of $137.5 million to common unitholders, despite the drop in net income, reflects a commitment to shareholder returns. Investors should assess the sustainability of these distributions, considering the company's earnings and cash flow positions. The reserve estimates provided by the independent engineering consultant, particularly the composition and classification of the reserves, offer insights into the company's future production capabilities and potential revenue generation from its oil and gas assets.

Market Research Analyst

The composition of Dorchester Minerals' reserves, with a significant portion in proved developed producing reserves and a notable 40% in natural gas, provides a glimpse into the company's asset quality and operational focus. The shift towards natural gas may align with market trends favoring cleaner energy sources. However, the heavy reliance on royalty properties, which account for 82% of reserves, could expose the company to risks associated with fluctuating commodity prices and regulatory changes affecting the energy sector.

Investors might also consider the geographical diversification of Dorchester's interests across 28 states, which could mitigate region-specific risks and offer stability in production. The impact of this diversification on operational efficiency and cost management is a critical factor in evaluating the company's long-term strategic positioning within the industry.

Energy Sector Analyst

Understanding the implications of the reserve mix is crucial for stakeholders. The fact that all natural gas reserves are classified as proved developed producing suggests that these assets are currently generating revenue, which is a positive indicator of immediate cash flow. Nonetheless, the longevity of these reserves and the prospects for replacing them once depleted are important considerations for the company's future prospects.

The energy market's volatility, often driven by geopolitical events, technological advancements and policy changes, can significantly impact Dorchester Minerals' performance. The company's ability to adapt to these dynamics, as well as its strategies for managing its portfolio of mineral and royalty interests, will be pivotal in maintaining its competitive edge and financial stability.

DALLAS, Feb. 22, 2024 (GLOBE NEWSWIRE) -- Dorchester Minerals, L.P. (the “Partnership”) (NASDAQ-DMLP) announced today the Partnership’s net income for the year ended December 31, 2023 of $114,117,000 or $2.85 per common unit.

A comparison of the Partnership’s consolidated results for the twelve month periods ended December 31, 2023 and 2022 are set forth below:

	Twelve Months Ended
	December 31,
		2023				2022
Operating Revenues	$	163,799,000			$	170,800,000
Net Income	$	114,117,000			$	130,607,000
Net Income Per Common Unit	$	2.85			$	3.35

The Partnership’s independent engineering consultant estimated its total proved oil and natural gas reserves to be 83.3 billion cubic feet of natural gas equivalents (bcfe) as of December 31, 2023. Approximately 82% of these reserves are attributable to the Partnership’s Royalty Properties and 18% are attributable to its Net Profits Interest. Natural gas accounted for 40% of proved reserves as of December 31, 2023, all of which were classified as proved developed producing.

The Partnership distributed a total of $137.5 million to its common unitholders from May 2023 through February 2024 attributable to 2023 activity.

Dorchester Minerals, L.P. is a Dallas based owner of producing and non-producing crude oil and natural gas mineral, royalty, overriding royalty, net profits, and leasehold interests in 28 states. Its common units trade on the NASDAQ Global Select Market under the symbol DMLP.

FORWARD-LOOKING STATEMENTS

Portions of this document may constitute "forward-looking statements" as defined by federal law. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Examples of such uncertainties and risk factors include, but are not limited to, changes in the price or demand for oil and natural gas, changes in the operations on or development of the Partnership’s properties, changes in economic and industry conditions and changes in regulatory requirements (including changes in environmental requirements) and the Partnership’s financial position, business strategy and other plans and objectives for future operations. These and other factors are set forth in the Partnership's filings with the Securities and Exchange Commission.

Contact:
Martye Miller
3838 Oak Lawn Ave., Suite 300
Dallas, Texas 75219-4541
(214) 559-0300

What was Dorchester Minerals, L.P.'s net income for the year ended December 31, 2023?

Dorchester Minerals, L.P. reported a net income of $114,117,000 for the year ended December 31, 2023.

How much did the company distribute to its common unitholders in 2023?

The company distributed a total of $137.5 million to its common unitholders in 2023.

Where does Dorchester Minerals, L.P. trade its common units?

Dorchester Minerals, L.P. trades its common units on the NASDAQ Global Select Market under the symbol DMLP.

What percentage of the company's proved reserves is attributed to natural gas?

40% of the company's proved reserves as of December 31, 2023, are attributed to natural gas.

How many states does Dorchester Minerals, L.P. have interests in?

Dorchester Minerals, L.P. has interests in 28 states.