Dorchester Minerals, L.P. Announces First Quarter Results

Rhea-AI Summary

Dorchester Minerals, L.P. announced their first quarter results with a net income of $18,167,000 and earnings of $0.44 per common unit. The operating revenues for the quarter ended March 31, 2024, were $30,979,000. The Partnership declared a distribution of $0.781837 per common unit. Dorchester Minerals, L.P. is a Dallas-based owner of oil and gas mineral interests trading under the symbol DMLP on NASDAQ.

Positive

• Stable revenue generation with operating revenues of $30,979,000 for the first quarter of 2024.

• Declared distribution of $0.781837 per common unit showcasing commitment to shareholders.

• Presence in 28 states providing diversification and growth opportunities.

Negative

• Decrease in net income from $28,070,000 in Q1 2023 to $18,167,000 in Q1 2024.

• Lower net income per common unit at $0.44 compared to $0.71 in Q1 2023.

• Challenges in the oil and gas industry may impact future earnings and distributions.

Insights

Financial Analyst

Dorchester Minerals, L.P.'s first quarter results show a marked decrease in both operating revenues and net income compared to the same quarter in the prior year, which could be indicative of several factors investors should be aware of. The operating revenues decreased from $40,167,000 in Q1 2023 to $30,979,000 in Q1 2024, a 22.9% drop, while net income fell from $28,070,000 to $18,167,000, which represents a 35.3% decline year-over-year. This decrease in profitability has also impacted the net income per common unit, which has declined from $0.71 to $0.44. Despite this, the company announced a distribution of $0.781837 per common unit, which is noteworthy because distributions can sometimes diverge from net earnings, particularly for partnerships due to different accounting treatments like depletion. For retail investors, these figures are significant because they reflect the company's current profitability and could impact the attractiveness of its distributions moving forward.

Oil & Gas Industry Expert

The performance of Dorchester Minerals should be considered within the context of the oil and gas industry at large. The decline in earnings may be a reflection of broader market conditions such as fluctuating commodity prices, regulatory changes, or production efficiencies. It’s important to note that for a company like Dorchester, which deals with mineral and royalty interests, the performance can be significantly leveraged to the prices of oil and natural gas. If there's been a downturn in commodity prices or an unexpected decrease in production volumes, this would directly impact Dorchester's revenues. Investors should also consider the company's asset portfolio in terms of geographic diversification and the mix of producing versus non-producing interests, as these factors can mitigate risk and influence revenue stability over time. The fact that Dorchester maintains a distribution despite decreased earnings suggests a commitment to returning value to unitholders, but investors should be cautious about the sustainability of these payments if profitability continues to decline.

DALLAS, May 02, 2024 (GLOBE NEWSWIRE) -- Dorchester Minerals, L.P. (the “Partnership”) (NASDAQ-DMLP) announced today the Partnership’s net income for the quarter ended March 31, 2024 of $18,167,000, or $0.44 per common unit.

A comparison of the Partnership’s consolidated results for the quarter ended March 31, 2024 and 2023 are set forth below:

		Three Months Ended
		March 31,
		2024				2023
Operating Revenues		$	30,979,000			$	40,167,000
Net Income		$	18,167,000			$	28,070,000
Net Income Per Common Unit		$	0.44			$	0.71

The Partnership previously declared its first quarter distribution in the amount of $0.781837 per common unit payable on May 9, 2024 to common unitholders of record as of April 29, 2024. The Partnership’s cash distributions are not comparable to its net earnings due to timing and other differences including depletion.

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.

Contact:

Martye Miller

(214) 559-0300

 

FAQ

What is Dorchester Minerals, L.P.'s net income for the first quarter of 2024?

Dorchester Minerals, L.P. reported a net income of $18,167,000 for the quarter ended March 31, 2024.

What is the symbol under which Dorchester Minerals, L.P. trades on the NASDAQ?

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

When was the first quarter distribution declared and how much was it?

The first quarter distribution of $0.781837 per common unit was declared on May 9, 2024, payable to common unitholders of record as of April 29, 2024.

Where is Dorchester Minerals, L.P. based?

Dorchester Minerals, L.P. is based in Dallas.

What are the primary interests owned by Dorchester Minerals, L.P.?

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