Dorchester Minerals, L.P. Announces Consummation of Midland Basin Lease Transaction

Rhea-AI Summary

Dorchester Minerals, L.P. (NASDAQ-DMLP) announced a significant lease transaction on October 3, 2022. The Partnership leased 243 net acres in Reagan County, Texas, for $30,000 per acre with a 25% royalty. This lease agreement generates a lease bonus payment of approximately $7.3 million, which will be distributed to unitholders in the third quarter. Dorchester Minerals is engaged in owning various oil and natural gas interests across 28 states.

Positive

• Lease transaction of 243 net acres completed, enhancing asset base.
• Lease bonus payment of approximately $7.3 million to be distributed to unitholders.

Negative

• Potential risks from changes in oil and natural gas prices impacting future earnings.

DALLAS, Oct. 03, 2022 (GLOBE NEWSWIRE) -- Dorchester Minerals, L.P. (the “Partnership”) (NASDAQ-DMLP) announced today the successful consummation of a notable lease transaction in the Midland Basin.

On September 30, 2022, the Partnership leased 243 net acres in two tracts of land in Reagan County, Texas for $30,000 per acre and a 25% royalty. The resulting lease bonus payment of approximately $7.3 million will be included in the Partnership’s third quarter distribution to unitholders.

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.

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 recent lease transaction did Dorchester Minerals, L.P. complete?

Dorchester Minerals, L.P. leased 243 net acres in Reagan County, Texas, on September 30, 2022.

What is the financial impact of the recent lease on Dorchester Minerals, L.P.?

The lease transaction generated a bonus payment of approximately $7.3 million to be included in the third quarter distribution.

What is the royalty percentage associated with the new lease?

The lease in Reagan County has a royalty rate of 25%.

When will the lease bonus payment be distributed to unitholders?

The lease bonus payment will be included in the third quarter distribution to unitholders.

What are some risks mentioned in the press release regarding Dorchester Minerals, L.P.?

The press release notes risks related to changes in oil and natural gas prices, which may impact future earnings.