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Dorchester Minerals LP (DMLP)
NASDAQ:DMLP
US Market
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Dorchester Minerals (DMLP) AI Stock Analysis

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DMLP

Dorchester Minerals

(NASDAQ:DMLP)

Rating:73Outperform
Price Target:
$31.00
▲(12.65%Upside)
Dorchester Minerals scores highly due to its strong financial health, characterized by high profitability and low leverage. The valuation is attractive, supported by a high dividend yield. However, technical indicators suggest a neutral market sentiment, which balances the score.

Dorchester Minerals (DMLP) vs. SPDR S&P 500 ETF (SPY)

Dorchester Minerals Business Overview & Revenue Model

Company DescriptionDorchester 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 MoneyDorchester Minerals, L.P. generates revenue primarily through the collection of royalties and net profits interests derived from its extensive portfolio of producing oil and natural gas properties. These revenue streams include royalties received from operators who extract and sell hydrocarbons from the company's mineral and royalty interests, and net profits interests which represent a percentage of the profits from production after the deduction of operational and development costs. The company's earnings are significantly influenced by fluctuations in commodity prices, production volumes, and operational efficiencies. While Dorchester Minerals does not directly engage in exploration or production activities, its strategic partnerships with operators who manage these activities on its properties play a critical role in optimizing its revenue potential.

Dorchester Minerals Financial Statement Overview

Summary
Dorchester Minerals shows a strong financial position with high profitability, stable growth, and excellent balance sheet metrics. The company's low leverage and efficient cash flow management provide a solid foundation for future growth, although revenue growth has slowed slightly.
Income Statement
85
Very Positive
Dorchester Minerals has demonstrated strong profitability with a high gross profit margin of 66.15% and a solid net profit margin of 52.18% for the TTM (Trailing-Twelve-Months). While total revenue increased by 7.54% from 2024, there was a slight decline from the 2023 levels. Despite this, the company's EBIT and EBITDA margins remain robust, indicating effective cost management.
Balance Sheet
90
Very Positive
The company maintains a very healthy balance sheet with a low debt-to-equity ratio of 0.003, signaling minimal financial leverage. The equity ratio stands at an impressive 99.07%, reflecting strong financial stability and shareholder funding. Return on Equity (ROE) is also commendable at 26.21%, demonstrating efficient use of equity capital.
Cash Flow
88
Very Positive
Dorchester Minerals exhibits strong cash flow metrics with a consistent operating cash flow to net income ratio of 1.52. The free cash flow to net income ratio is equally solid, supporting sustainable dividend payments and potential reinvestments. However, the free cash flow growth rate shows minimal change, which could indicate a plateau in cash generation.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue161.52M163.80M170.80M93.42M46.93M
Gross Profit104.38M125.28M138.83M75.36M29.33M
EBITDA135.22M140.62M149.90M80.86M34.02M
Net Income92.45M110.39M130.61M70.17M21.87M
Balance Sheet
Total Assets366.81M191.06M176.24M146.81M88.33M
Cash, Cash Equivalents and Short-Term Investments42.51M47.02M40.75M28.31M11.23M
Total Debt1.04M1.31M1.59M1.89M2.19M
Total Liabilities5.02M5.51M4.72M4.40M3.76M
Stockholders Equity363.79M185.44M171.52M142.41M84.56M
Cash Flow
Free Cash Flow132.64M139.84M147.05M70.31M39.41M
Operating Cash Flow132.64M139.84M147.05M70.31M39.41M
Investing Cash Flow14.72M2.28M2.09M2.58M6.13M
Financing Cash Flow-151.88M-135.85M-136.69M-55.81M-49.64M

Dorchester Minerals Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price27.52
Price Trends
50DMA
27.65
Negative
100DMA
28.07
Negative
200DMA
29.53
Negative
Market Momentum
MACD
-0.07
Positive
RSI
49.24
Neutral
STOCH
47.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DMLP, the sentiment is Neutral. The current price of 27.52 is below the 20-day moving average (MA) of 27.58, below the 50-day MA of 27.65, and below the 200-day MA of 29.53, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 49.24 is Neutral, neither overbought nor oversold. The STOCH value of 47.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DMLP.

Dorchester Minerals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.30B13.1333.71%11.49%12.35%-18.66%
70
Outperform
$2.60B13.4319.93%12.14%-12.71%-39.85%
68
Neutral
$1.79B45.092.88%11.56%3.20%-91.39%
67
Neutral
$15.27B9.946.24%5.21%4.47%-70.67%
66
Neutral
$967.34M12.42798.58%7.64%-11.35%-11.76%
61
Neutral
$273.59M251.9739.61%0.39%-85.94%-88.55%
$57.24M9.60240.32%9.65%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DMLP
Dorchester Minerals
27.52
-0.31
-1.11%
SJT
San Juan Basin Royalty
5.68
1.84
47.92%
SBR
Sabine Royalty
66.06
7.34
12.50%
CRT
Cross Timbers Royalty
9.53
-0.05
-0.52%
BSM
Black Stone Minerals
12.36
-1.33
-9.72%
KRP
Kimbell Royalty Partners
14.70
-0.02
-0.14%

Dorchester Minerals Corporate Events

DividendsFinancial Disclosures
Dorchester Minerals Announces Q2 Cash Distribution
Neutral
Jul 24, 2025

On July 24, 2025, Dorchester Minerals, L.P. announced a second quarter cash distribution of $0.620216 per common unit, reflecting activities for the period ending June 30, 2025. The distribution, payable on August 14, 2025, is based on cash receipts from oil and natural gas sales, totaling approximately $26.6 million from royalty properties and $3.1 million from net profits interest. Additionally, $4.2 million was received from lease bonus and other income. The announcement also included the availability of the 2024 Schedule K-3 for unitholders, with implications for foreign tax credit computations and federal income tax withholding for non-U.S. investors.

Executive/Board ChangesShareholder Meetings
Dorchester Minerals Elects Board and Approves Auditor
Neutral
May 19, 2025

On May 14, 2025, Dorchester Minerals, L.P. held its Annual Meeting of Limited Partners where unitholders voted on key matters. Three managers, Allen D. Lassiter, C.W. Russell, and Sarah N. Wariner, were elected to the Board of Managers and appointed to the Advisory Committee. Additionally, Grant Thornton LLP was approved as the independent registered public accounting firm for the year ending December 31, 2025.

Shareholder MeetingsFinancial Disclosures
Dorchester Minerals to Hold Annual Meeting and Presentation
Neutral
May 13, 2025

On May 14, 2025, Dorchester Minerals, L.P. will hold its Annual Meeting of Limited Partners followed by an investor presentation in Dallas, Texas. During the presentation, CEO Bradley Ehrman and other employees will discuss the company’s historical financial and operational information, providing stakeholders with insights into past performance.

DividendsFinancial Disclosures
Dorchester Minerals Reports Q1 2025 Financial Results
Neutral
May 8, 2025

Dorchester Minerals, L.P. announced its financial results for the first quarter ended March 31, 2025, reporting a net income of $17,642,000 or $0.36 per common unit. Despite a decrease in net income compared to the previous year, the company saw an increase in operating revenues from $30,979,000 in 2024 to $43,164,000 in 2025. The company had previously declared a first quarter distribution of $0.725835 per common unit payable on May 15, 2025. These results highlight the company’s continued focus on managing its mineral and royalty interests, although the net income per common unit decreased from $0.44 in 2024.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 10, 2025