Dorchester Minerals, L.P. Announces Its First Quarter Distribution

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Dorchester Minerals, L.P. announced its first quarter 2024 cash distribution of $0.781837 per common unit, totaling approximately $24.5 million from Royalty Properties, $6.8 million from Net Profits Interest, $0.6 million from lease bonus and other income, and $4.0 million from acquisitions. The company owns oil and gas interests in 28 states, trading on Nasdaq under the symbol DMLP.

Financial Analyst

The recent announcement by Dorchester Minerals, L.P. of a first quarter cash distribution of $0.781837 per common unit is a reflection of their financial performance and may influence investor sentiment. This distribution is backed by $24.5 million in cash receipts from royalty properties, which mainly represents oil and natural gas sales from the past three months. Distributions are a direct indicator of the company's ability to generate cash flow and it is essential to note that approximately 71% of the oil sales and 65% of the natural gas sales occurred in the recent quarter, signaling consistent production levels.

Moreover, the receipts include $6.8 million from net profits interest and $4.0 million from acquisition-related cash contributions. For income-focused investors, such details suggest a robust revenue-generating capacity which might make the partnership an attractive holding. It is important for an investor to consider the distribution in the context of the company's overall financial health, including its earnings stability, debt levels and future growth prospects.

Regarding tax implications, the treatment of distributions to non-U.S. investors as effectively connected income is standard for U.S.-based limited partnerships and indicates compliance with federal tax requirements. This may have implications for the attractiveness of Dorchester Minerals to international investors.

Energy Sector Analyst

The cash distribution announcement from Dorchester Minerals, L.P. bears significance for stakeholders within the energy sector, particularly due to the commodity prices and production levels. It's indicative that the majority of revenues come from the sale of oil and natural gas. Given the volatility in commodity markets, the stable cash receipts could suggest Dorchester's effective risk management strategies and favorable contract terms.

The distribution also hints at the relative success of their acquisition strategy, with a notable $4.0 million being attributed to this. For investors, this suggests strategic growth alongside organic production, which is often a hallmark of resilience in the energy sector. Understanding the mix of revenue sources—royalties, net profits interest, lease bonuses and other income—allows for a more nuanced perspective on the company's portfolio and risk diversification.

Investors should also be aware of the energy sector's sensitivity to geopolitical events, regulatory changes and technological advancements. Dorchester's ability to maintain distributions in such an environment may reflect positively on their operational and financial management.

DALLAS, April 18, 2024 (GLOBE NEWSWIRE) -- Dorchester Minerals, L.P. (NASDAQ:DMLP) announced today the Partnership’s first quarter 2024 cash distribution. The distribution of $0.781837 per common unit represents activity for the three-month period ended March 31, 2024 and is payable on May 9, 2024 to common unitholders of record as of April 29, 2024.

Cash receipts attributable to the Partnership’s Royalty Properties during the first quarter totaled approximately $24.5 million. Approximately 71% of these receipts reflect oil sales during December 2023 through February 2024 and natural gas sales during November 2023 through January 2024, and approximately 29% from prior sales periods. Cash receipts attributable to the Partnership’s Net Profits Interest during the first quarter totaled approximately $6.8 million. Approximately 65% of these receipts reflect oil sales and natural gas sales during November 2023 through January 2024, and approximately 35% from prior sales periods.

Cash receipts attributable to lease bonus and other income during the first quarter totaled approximately $0.6 million. Cash receipts attributable to acquisition contributed cash totaled approximately $4.0 million.

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

This release serves as qualified notice to nominees as provided for under Treasury Regulation Section 1.1446-4(b)(4) and (d). Although a portion of Dorchester Minerals, L.P.’s income may not be effectively connected income and may be subject to alternative withholding procedures, brokers and nominees should treat 100% of Dorchester Minerals, L.P.’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Dorchester Minerals, L.P.’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest marginal rate for individuals or corporations, as applicable. Nominees, and not Dorchester Minerals, L.P., are treated as withholding agents responsible for withholding on distributions received by them on behalf of non-U.S. investors.

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.

FAQ

What is Dorchester Minerals, L.P.'s first quarter 2024 cash distribution per common unit?

Dorchester Minerals, L.P. announced a cash distribution of $0.781837 per common unit for the first quarter of 2024.

When is the first quarter 2024 distribution payable to common unitholders?

The distribution is payable on May 9, 2024, to common unitholders of record as of April 29, 2024.

How much cash receipts came from Royalty Properties during the first quarter?

Approximately $24.5 million in cash receipts came from Royalty Properties during the first quarter.

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 types of oil and gas interests does Dorchester Minerals, L.P. own?

Dorchester Minerals, L.P. owns producing and non-producing oil and natural gas mineral, royalty, overriding royalty, net profits, and leasehold interests located in 28 states.