Dorchester Minerals, L.P. Announces Acquisition of Mineral and Royalty Interests

Rhea-AI Summary

Dorchester Minerals, L.P. (NASDAQ-DMLP) announced a non-taxable exchange agreement to acquire approximately 4,600 net royalty acres across New Mexico, Oklahoma, Texas, and Wyoming. The deal, valued at 1,580,000 common limited partnership units, is expected to close on December 31, 2021, with a cash receipt date of October 1, 2021. This acquisition enhances the Partnership's portfolio of mineral and royalty interests in the oil and natural gas sector, contributing to its overall growth strategy.

Positive

• Acquisition of 4,600 net royalty acres bolstering asset base.
• Expected transaction to enhance revenue potential from diverse geographic locations.

Negative

• None.

DALLAS, Nov. 23, 2021 (GLOBE NEWSWIRE) -- Dorchester Minerals, L.P. (the “Partnership”) (NASDAQ-DMLP) announced today that it has entered into a non-taxable contribution and exchange agreement with an unrelated third party to acquire mineral and royalty interests representing approximately 4,600 net royalty acres located in 27 counties across New Mexico, Oklahoma, Texas and Wyoming. The contributing entity will convey its interests to the Partnership in exchange for 1,580,000 common limited partnership units of the Partnership. The acquisition is expected to close on December 31, 2021, subject to customary closing conditions, with a cash receipt reference date of October 1, 2021.

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 26 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.

FAQ

What is Dorchester Minerals, L.P. acquiring?

Dorchester Minerals, L.P. is acquiring approximately 4,600 net royalty acres in 27 counties across New Mexico, Oklahoma, Texas, and Wyoming.

How many common limited partnership units is Dorchester Minerals exchanging?

The Partnership will exchange 1,580,000 common limited partnership units for the mineral and royalty interests.

When is the acquisition expected to close?

The acquisition is expected to close on December 31, 2021.

What is the significance of this acquisition for DMLP?

This acquisition is significant as it enhances Dorchester Minerals' asset base and potential revenue streams in the oil and gas sector.