Dorchester Minerals, L.P. Announces Second Quarter Results

Rhea-AI Summary

Dorchester Minerals, L.P. (NASDAQ: DMLP) has reported its financial results for the second quarter of 2024. The Partnership's net income reached $23,628,000, or $0.57 per common unit, showing an increase from the same period in 2023. Operating revenues for Q2 2024 were $37,360,000, up from $30,619,000 in Q2 2023.

The Partnership declared a second quarter distribution of $0.702058 per common unit, payable on August 8, 2024. For the six months ended June 30, 2024, net income was $41,795,000, slightly lower than the $47,874,000 reported for the same period in 2023. Dorchester Minerals owns producing and non-producing oil and natural gas interests across 28 states.

Positive

• Net income increased to $23,628,000 in Q2 2024, up from $19,804,000 in Q2 2023
• Earnings per unit rose to $0.57 in Q2 2024, compared to $0.50 in Q2 2023
• Operating revenues grew to $37,360,000 in Q2 2024, an increase from $30,619,000 in Q2 2023
• Declared a quarterly distribution of $0.702058 per common unit

Negative

• Six-month net income decreased to $41,795,000 in 2024, down from $47,874,000 in 2023
• Six-month operating revenues declined to $68,339,000 in 2024, compared to $70,786,000 in 2023

Financial Analyst

Dorchester Minerals' Q2 2024 results show a solid performance with notable year-over-year improvements. Net income increased by 19.3% to $23,628,000, while earnings per unit rose from $0.50 to $0.57, a 14% jump. This growth is particularly impressive given the challenging market conditions many energy companies have faced.

The Partnership's operating revenues saw a significant boost, climbing 22% to $37,360,000 for the quarter. This surge suggests either an increase in production volumes, higher commodity prices, or a combination of both. However, it's worth noting that the six-month figures show a slight decline in revenues and net income compared to the same period in 2023, indicating some volatility in the broader market.

The declared distribution of $0.702058 per unit is substantial, reflecting the Partnership's commitment to returning value to unitholders. This distribution model is typical for mineral rights companies, but investors should be aware that these payouts can fluctuate based on commodity prices and production levels.

While the results are encouraging, it's important to consider the cyclical nature of the oil and gas industry. Dorchester's diverse portfolio across 28 states provides some insulation against regional fluctuations, but the company remains exposed to broader market trends and commodity price risks.

Market Research Analyst

Dorchester Minerals' Q2 performance outpaced the broader energy sector, which has been grappling with price volatility and demand uncertainties. The 22% year-over-year revenue growth is particularly noteworthy, as it comes at a time when many peers are struggling to maintain their top lines.

The Partnership's unique business model as an owner of mineral and royalty interests positions it favorably in the current market. Unlike traditional E&P companies, Dorchester doesn't bear the direct costs and risks associated with exploration and production activities. This structure allows for higher margins and more stable cash flows, which is reflected in the robust distribution to unitholders.

However, investors should be mindful of the potential headwinds. The slight decline in six-month figures compared to 2023 hints at the ongoing challenges in the energy markets. Factors such as global economic uncertainties, shifts towards renewable energy and potential regulatory changes could impact future performance.

The Partnership's presence across 28 states is a double-edged sword. While it provides geographical diversification, it also exposes Dorchester to a complex web of state-specific regulations and market dynamics. This broad exposure requires careful management and constant monitoring of regional trends.

Looking ahead, Dorchester's performance will likely continue to be tied closely to commodity prices and overall energy demand. Investors should watch for any shifts in production levels from the properties where Dorchester holds interests, as well as broader industry trends that could affect the company's revenue streams.

DALLAS, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Dorchester Minerals, L.P. (the “Partnership”) (NASDAQ-DMLP) announced today the Partnership’s net income for the quarter ended June 30, 2024 of $23,628,000, or $0.57 per common unit.

A comparison of the Partnership’s consolidated results for the quarters ended June 30, 2024 and 2023 are set forth below:

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2024				2023				2024				2023
Operating Revenues	$	37,360,000			$	30,619,000			$	68,339,000			$	70,786,000
Net Income	$	23,628,000			$	19,804,000			$	41,795,000			$	47,874,000
Net Income Per Common Unit	$	0.57			$	0.50			$	1.01			$	1.21

The Partnership previously declared its second quarter distribution in the amount of $0.702058 per common unit payable on August 8, 2024 to common unitholders of record as of July 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 was Dorchester Minerals' (DMLP) net income for Q2 2024?

Dorchester Minerals (DMLP) reported a net income of $23,628,000 for the second quarter of 2024.

How much is DMLP's Q2 2024 distribution per common unit?

Dorchester Minerals (DMLP) declared a second quarter distribution of $0.702058 per common unit, payable on August 8, 2024.

What were Dorchester Minerals' (DMLP) operating revenues for Q2 2024?

Dorchester Minerals (DMLP) reported operating revenues of $37,360,000 for the second quarter of 2024.

How did DMLP's Q2 2024 earnings compare to Q2 2023?

DMLP's net income increased from $19,804,000 in Q2 2023 to $23,628,000 in Q2 2024, with earnings per unit rising from $0.50 to $0.57.