Dorchester Minerals, L.P. Completes Acquisition of Royalty Properties

Rhea-AI Summary

Dorchester Minerals, L.P. (NASDAQ-DMLP) has successfully completed the acquisition of overriding royalty interests in the Bakken Trend, covering approximately 6,400 net royalty acres across 63,000 gross acres in North Dakota. This transaction was structured as a non-taxable contribution, with the contributing entity receiving 725,000 common limited partnership units in exchange. Dorchester focuses on oil and natural gas interests in 26 states, with its common units traded on NASDAQ.

Positive

• Acquisition expands Dorchester's royalty interests, potentially increasing future revenue streams.
• The non-taxable structure may be advantageous for tax implications.

Negative

• The acquisition may lead to integration challenges impacting operational efficiency.
• Future cash flows may be affected by fluctuating oil and natural gas prices.

DALLAS, June 30, 2021 (GLOBE NEWSWIRE) -- Dorchester Minerals, L.P. (the “Partnership”) (NASDAQ-DMLP) announced today that it has completed its previously announced acquisition of overriding royalty interests in the Bakken Trend totaling approximately 6,400 net royalty acres under 63,000 gross acres located in Dunn, McKenzie, McLean and Mountrail Counties, North Dakota.

The transaction is structured as a non-taxable contribution and exchange. The contributing entity conveyed their interests to DMLP and affiliates of its General Partner in exchange for 725,000 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 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 acquisition did Dorchester Minerals announce on June 30, 2021?

Dorchester Minerals announced the acquisition of overriding royalty interests in the Bakken Trend, totaling approximately 6,400 net royalty acres.

What is the value of the transaction involving Dorchester Minerals and the Bakken Trend?

The transaction involves the exchange of 725,000 common limited partnership units for the royalty interests, structured as a non-taxable contribution.

How will the Bakken Trend acquisition impact Dorchester Minerals' future revenue?

The acquisition is expected to enhance future revenue through expanded royalty interests; however, results will depend on oil and gas price fluctuations.

Where are the acquired royalty interests located?

The acquired royalty interests are located across Dunn, McKenzie, McLean, and Mountrail Counties in North Dakota.