Dorchester Minerals (DMLP) AI Stock Analysis

• Market Cap: $1.23B
• Dividend Yield: 12.53%
• Average Volume (3M): 167.98K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.42
• Revenue Growth: -12.51%
• EPS Growth: -59.55%
• Country: US
• Employees: 27
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.32
• Shares Outstanding: 48,255,450
• 10 Day Avg. Volume: 146,106
• 30 Day Avg. Volume: 167,982
• PEG Ratio: -0.43
• Price to Book (P/B): 3.49
• Price to Sales (P/S): 6.97
• P/FCF Ratio: 8.04
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 7.87
• Enterprise Value/Gross Profit: 13.84
• Enterprise Value/Ebitda: 9.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: $29.00 ▲(36.41% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is led by strong financial quality—very low leverage and consistently strong cash generation—supporting resilience and distributions. Technicals also point to a constructive trend (price above key moving averages with positive MACD). Offsetting factors include only moderate valuation attractiveness given the P/E despite a very high yield, and mixed corporate-event signals due to weaker 2025 results.

Positive Factors

Balance sheet strength

Very low debt and a near-zero debt-to-equity profile provide durable financial flexibility through commodity cycles. This reduces refinancing risk, preserves capacity to fund distributions and opportunistic acreage monetizations, and supports long-term resilience for an MLP reliant on third-party drilling.

Consistent cash generation

Strong cash conversion—FCF tracking net income dollar-for-dollar—underpins sustainable distribution capacity and provides internal funding optionality. Reliable royalty receipts and low capex needs (non-operator model) mean cash generation is structurally supportive of payouts and balance-sheet strength.

Maintained distributions backed by receipts

The partnership sustained material cash returns even after weaker 2025 earnings, indicating a governance emphasis on returning cash and an ability to monetize lease bonuses, royalties and net-profits streams. That consistent payout behavior is important for long-term income-focused investors.

Negative Factors

Revenue and EPS declines

Material declines in revenue and EPS reflect the partnership's sensitivity to commodity cycles and production patterns on its acreage. Prolonged weakness in prices or drilling activity would reduce royalty receipts and distributable cash flow, lowering visibility into sustainable payouts over the medium term.

Reserve and commodity concentration

A majority oil/NGL reserve mix and high percentage tied to royalty interests increases sensitivity to oil price swings and operator drilling decisions. As a non-operator, Dorchester depends on third-party capex cycles; concentrated commodity exposure heightens revenue volatility risk versus a more diversified commodity mix.

Inconsistent 2025 margin/reporting items

Missing or inconsistent profitability line items for the most recent year impair trend analysis and investor confidence. Reduced clarity on margins complicates assessment of distributable cash sustainability and makes it harder to distinguish one-off items from persistent profitability changes.

Dorchester Minerals Business Overview & Revenue Model

Company Description

Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of producing and nonproducing natural gas and crude oil royalty, net profit, and leasehold interests in the United States. Its royalty properties consist of producing and nonproducing mineral, royalty, and overriding royalty interests located in 582 counties and parishes in 26 states; and net profits interests represent net profits overriding royalty interests in various properties owned by the operating partnership. Dorchester Minerals Management LP serves as the general partner of Dorchester Minerals, L.P. The company was founded in 1982 and is based in Dallas, Texas.

How the Company Makes Money

Dorchester Minerals generates revenue primarily through the collection of royalties from oil and natural gas production on its owned mineral and royalty interests. As a royalty owner, the company typically receives a percentage of the revenue generated from the extraction of these resources without incurring the direct costs of production. Key revenue streams include payments based on the volume of oil and gas produced and the prevailing market prices for these commodities. Additionally, the company may benefit from partnerships with various exploration and production companies that operate on its leased properties, which can enhance its revenue through increased production levels. Fluctuations in oil and gas prices, as well as the operational efficiency of its partners, significantly influence its earnings.

Dorchester Minerals Financial Statement Overview

Summary

Strong overall fundamentals driven by an exceptionally conservative balance sheet (minimal debt) and consistently robust operating/free cash flow with strong cash conversion. Offsetting factors are cyclical revenue/FCF softness in 2023–2024 and reduced confidence in the latest-year margin trend due to 2025 profitability line-item inconsistencies.

Income Statement

Profitability is a clear strength, with consistently high net profit margins from 2020–2024 and strong EBITDA margins. Revenue expanded sharply in 2021–2022, but growth cooled and turned slightly negative in 2023–2024, pointing to a more cyclical demand/commodity-price sensitivity. 2025 shows strong reported revenue growth versus 2024, but margin fields are inconsistent for that year (e.g., missing/zero gross profit and EBIT), which reduces confidence in the latest-year profitability read-through.

Balance Sheet

The balance sheet is exceptionally conservative: total debt is minimal relative to equity across all years (debt-to-equity remains near zero), implying very low financial risk and strong flexibility through commodity cycles. Returns on equity are strong overall (particularly 2021–2023) but have moderated into 2024–2025, suggesting profitability normalized from peak levels even as leverage stayed low.

Cash Flow

Cash generation is a major positive: operating cash flow and free cash flow are consistently high and closely track earnings (free cash flow to net income is 1.0 each year), indicating strong cash conversion. Free cash flow growth was volatile (down in 2023–2024, then up sharply in 2025), reflecting cyclical conditions, but cash flow remains very well supported and shows strong ability to cover obligations given the company’s very small debt load.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	150.69M	152.83M	161.52M	163.80M	170.80M	93.42M
Gross Profit	85.68M	0.00	104.38M	125.28M	138.83M	75.36M
EBITDA	121.82M	123.65M	135.22M	140.62M	149.90M	80.86M
Net Income	54.01M	57.35M	92.45M	110.39M	130.61M	70.17M
Balance Sheet
Total Assets	330.37M	309.55M	366.81M	191.06M	176.24M	146.81M
Cash, Cash Equivalents and Short-Term Investments	41.61M	41.94M	42.51M	47.02M	40.75M	28.31M
Total Debt	842.00K	777.00K	1.04M	1.31M	1.59M	1.89M
Total Liabilities	6.80M	4.32M	5.02M	5.51M	4.72M	4.40M
Stockholders Equity	323.57M	305.24M	363.79M	185.44M	170.84M	141.43M
Cash Flow
Free Cash Flow	129.70M	132.49M	132.64M	139.84M	147.05M	70.31M
Operating Cash Flow	129.70M	132.49M	132.64M	139.84M	147.05M	70.31M
Investing Cash Flow	6.78M	0.00	14.72M	2.28M	2.09M	2.58M
Financing Cash Flow	-151.34M	0.00	-151.88M	-135.85M	-136.69M	-55.81M

Dorchester Minerals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DMLP, the sentiment is Positive. The current price of 21.26 is below the 20-day moving average (MA) of 25.02, below the 50-day MA of 23.35, and below the 200-day MA of 23.92, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 62.16 is Neutral, neither overbought nor oversold. The STOCH value of 57.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DMLP.

Dorchester Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DMLP	81 Outperform	$1.23B	21.97	14.72%	12.53%	-12.51%	-59.55%
MNR	81 Outperform	$2.25B	13.90	6.68%	17.48%	9.33%	―
SBR	66 Neutral	$1.02B	12.91	986.82%	7.51%	-14.84%	-16.23%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KRP	64 Neutral	$1.73B	-79.07	4.73%	13.84%	-2.71%	-113.80%
TALO	64 Neutral	$2.23B	-3.97	-13.71%	―	-0.02%	-473.61%
INR	62 Neutral	$980.13M	-30.49	-2.91%	―	―	―

Dorchester Minerals Corporate Events

Dorchester Minerals Reports Lower 2025 Results, Maintains Distributions

Dorchester Minerals, L.P., a Dallas-based energy partnership that owns producing and non-producing crude oil and natural gas mineral, royalty, overriding royalty, net profits and leasehold interests in 28 U.S. states, reported lower results for 2025. The NASDAQ-listed royalty and minerals owner, whose units trade under the symbol DMLP, focuses on generating distributable cash flow from its diversified oil and gas interest portfolio rather than operating wells.

For the year ended Dec. 31, 2025, the partnership posted net income of $57.4 million, or $1.16 per common unit, down from $92.4 million, or $2.13 per unit, in 2024 as operating revenues slipped to $152.8 million from $161.5 million. Its independent engineering consultant estimated total proved reserves at 15.6 million barrels of oil equivalent at year-end 2025, all proved developed producing, with oil and natural gas liquids comprising 61% of reserves and 86% tied to royalty properties, while the partnership distributed $133.5 million to common unitholders from May 2025 through February 2026 attributable to 2025 activity, underscoring its continued emphasis on cash returns despite earnings pressure.

The most recent analyst rating on (DMLP) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Dorchester Minerals stock, see the DMLP Stock Forecast page.

Dorchester Minerals Appoints Independent Manager to Strengthen Oversight

Dorchester Minerals, L.P. announced that on February 11, 2026, it appointed A. Troy Sturrock as an independent manager to the board of managers of the general partner of its general partner, filling the vacancy created by the October 30, 2025 death of long-serving manager C.W. “Bill” Russell. Sturrock, 55, brings more than 25 years of accounting and financial reporting experience, including two decades focused on the midstream energy sector, and currently serves as Group Senior Vice President, Controller and Principal Accounting Officer of Energy Transfer LP.

Under the existing governance structure, Sturrock will receive compensation in line with other independent managers and will serve on the advisory committee, which functions as the board’s audit committee, after entering into the partnership’s standard indemnity agreement. His appointment strengthens Dorchester’s financial oversight and industry expertise at a time when accurate reporting and strategic stewardship are critical for energy partnerships navigating commodity volatility and evolving regulatory expectations.

The most recent analyst rating on (DMLP) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Dorchester Minerals stock, see the DMLP Stock Forecast page.

Dorchester Minerals Announces Q4 2025 Cash Distribution

On January 22, 2026, Dorchester Minerals, L.P. announced a fourth-quarter 2025 cash distribution of $0.755712 per common unit, reflecting activity for the three months ended December 31, 2025, payable on February 12, 2026 to unitholders of record as of February 2, 2026. The payout is backed by approximately $32.2 million in cash receipts from royalty properties, $4.0 million from net profits interests, and $6.0 million from lease bonus and other income during the quarter, and the partnership reiterated that nominees must treat 100% of its distributions to non-U.S. investors as effectively connected U.S. trade or business income subject to withholding at the highest marginal federal rate, underscoring material tax implications for foreign unitholders.

The most recent analyst rating on (DMLP) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Dorchester Minerals stock, see the DMLP Stock Forecast page.

Dorchester Minerals Announces Leadership Transition

On December 9, 2025, Dorchester Minerals, L.P. announced the retirement of Mr. William Casey McManemin from the Board of Managers, effective December 31, 2025. Mr. McManemin, a co-founder and former CEO, has been named Chairman Emeritus in recognition of his 37 years of service. Mr. Robert C. Vaughn, a current board member and co-founder, will serve as Interim Chairman, ensuring continuity in governance. Additionally, Mr. Albert G. Nance III, with over 38 years of experience in the oil and gas industry, has been appointed to the Board, effective January 1, 2026, bringing valuable expertise to the company.

The most recent analyst rating on (DMLP) stock is a Hold with a $24.50 price target. To see the full list of analyst forecasts on Dorchester Minerals stock, see the DMLP Stock Forecast page.