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

Rhea-AI Summary

On September 30, 2022, Dorchester Minerals, L.P. (NASDAQ-DMLP) announced the completion of its acquisition of approximately 2,100 net royalty acres in 12 counties across New Mexico and Texas. The transaction, structured as a non-taxable contribution and exchange, involved the issuance of 816,719 common limited partnership units to the contributing entity. Dorchester Minerals is a significant player in the oil and natural gas industry, with interests spanning across 28 states, positioning itself for potential growth in royalty revenue.

Positive

• Acquisition of 2,100 net royalty acres, enhancing asset portfolio.
• Strategic presence in New Mexico and Texas, key oil and gas regions.
• Transaction structured as a non-taxable exchange, preserving cash flow.

Negative

• Integration challenges may arise from the newly acquired assets.
• Market volatility in oil and gas prices may impact revenue.

DALLAS, Sept. 30, 2022 (GLOBE NEWSWIRE) -- Dorchester Minerals, L.P. (the “Partnership”) (NASDAQ-DMLP) has completed its previously announced acquisition of mineral, royalty and overriding royalty interests of approximately 2,100 net royalty acres located in 12 counties across New Mexico and Texas.

The transaction is structured as a non-taxable contribution and exchange. The contributing entity conveyed its interest to the Partnership in exchange for 816,719 common limited partnership units of Dorchester Minerals, L.P.

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 was the transaction value of the DMLP acquisition?

The transaction details did not specify a direct financial value; instead, it involved the exchange of 816,719 common limited partnership units.

How will the acquisition of 2,100 net royalty acres impact DMLP?

The acquisition is expected to enhance Dorchester Minerals' royalty revenues and strengthen its position in key oil-producing regions.

What locations are affected by DMLP's acquisition?

The acquisition involves approximately 2,100 net royalty acres located in 12 counties across New Mexico and Texas.

What type of interests did DMLP acquire?

Dorchester Minerals acquired mineral, royalty, and overriding royalty interests.

Is the acquisition expected to be beneficial for DMLP shareholders?

Yes, the acquisition enhances the asset portfolio, potentially leading to increased revenue.