Dorchester Minerals: 10% Yield On Energy Royalties, Plus Peers

seekingalpha05-26

Dorchester Minerals, L.P. operates similarly to energy trusts, collecting royalties and paying out 100% of its net income to unitholders.DMLP owns properties in 28 states, with oil providing 77% of ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2438675628?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1322463451/image_1322463451.jpg","is_english":true,"pubTime":"2024-05-26 21:15","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2438675628","market":"fut","top_or_hot":-1,"title":"Dorchester Minerals: 10% Yield On Energy Royalties, Plus Peers","media":"seekingalpha","content":"<div>\n<p>Dorchester Minerals, L.P. operates similarly to energy trusts, collecting royalties and paying out 100% of its net income to unitholders.DMLP owns properties in 28 states, with oil providing 77% of ...</p>\n\n<a href=\"https://seekingalpha.com/article/4695468-dorchester-minerals-10-percent-yield-on-energy-royalties-plus-peers\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Dorchester Minerals: 10% Yield On Energy Royalties, Plus Peers</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDorchester Minerals: 10% Yield On Energy Royalties, Plus Peers\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-26 21:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4695468-dorchester-minerals-10-percent-yield-on-energy-royalties-plus-peers><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Dorchester Minerals, L.P. operates similarly to energy trusts, collecting royalties and paying out 100% of its net income to unitholders.DMLP owns properties in 28 states, with oil providing 77% of ...</p>\n\n<a href=\"https://seekingalpha.com/article/4695468-dorchester-minerals-10-percent-yield-on-energy-royalties-plus-peers\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"STR","symbol_name":"Sitio Royalties Corp.","start_time":0,"source_url":"https://seekingalpha.com/article/4695468-dorchester-minerals-10-percent-yield-on-energy-royalties-plus-peers","article_id":"2438675628","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1322463451/image_1322463451.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2438675628","pubTimestamp":1716729300,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Dorchester Minerals, L.P. operates similarly to energy trusts, collecting royalties and paying out 100% of its net income to unitholders.DMLP owns properties in 28 states, with oil providing 77% of its revenue.DMLP has a high dividend growth 5-year average of over 24% and a forward yield of 9.88%.onurdongel Looking for an alternative high-yield Energy play?","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"STR":"Sitio Royalties Corp.","BK4590":"PTP","BK4109":"特种化学制品","BSM":"Black Stone Minerals, L.P.","MTX":"Minerals Technologies Inc","VOC":"Voc Energy Trust","BK4213":"石油与天然气的勘探与生产","VNOM":"Viper Energy Partners LP","DMLP":"多尔切斯特","KRP":"Kimbell Royalty Partners LP"},"translate_title":"多切斯特矿产公司：10%的能源特许权使用费收益率，加上同行","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"US3Y.BOND":1,"VOC":1,"VNOM":1,"US7Y.BOND":1,"US6M.BOND":1,"US5Y.BOND":1,"US30Y.BOND":1,"US2Y.BOND":1,"US12M.BOND":1,"US10Y.BOND":1,"STR":1,"MTX":1,"KRP":1,"DMLP":1,"BSM":1,"US912797FS14.BOND":0.6,"US912797GB79.BOND":0.6,"US912797GK78.BOND":0.6,"US912797GL51.BOND":0.6,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6},"content_text":"Dorchester Minerals, L.P. operates similarly to energy trusts, collecting royalties and paying out 100% of its net income to unitholders.DMLP owns properties in 28 states, with oil providing 77% of its revenue.DMLP has a high dividend growth 5-year average of over 24% and a forward yield of 9.88%.onurdongel Looking for an alternative high-yield Energy play? Royalty Trusts lease out land that they own to energy producers, in return for receiving royalties on crude oil and natural gas. These trusts can be an attractive source of income for investors. This article covers Dorchester Minerals, L.P. (NASDAQ:DMLP), which, although not a trust, operates on a similar principle as most energy trusts. It collects royalties, has very limited expenses, and pays out 100% of its net income to unitholders. Profile: Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of royalty properties in the US. Its royalty properties include producing and non-producing mineral, royalty, overriding royalty, net profits, and leasehold interests in 593 counties and parishes in 28 states, and Net Profits Interests, NPI's, representing 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. DMLP was founded in 1982 and is based in Dallas, Texas. (DMLP site) Holdings: DMLP owns properties in 28 states, headed up by Texas, with 1.89M gross acres; N. Dakota, with 523K gross acres, and Montana, with 366K gross acres. DMLP 10K Oil provides 77% of its revenue; Gas provides 14%, and Natural Gas Liquids provide 9%. 72% of its Revenues come from royalties, and 26% come from NPI's: DMLP site Key Point: One of the big advantages of DMLP vs. similar firms is that it's allowed to acquire more acreage, in order to bolster its reserves. Some energy trusts, such as MVO, have a fixed amount of energy reserves, which, when they reach a certain point, will trigger the termination of the trust. On 12/31/2022, DMLP had reserves of 15.5 MMBoe. Production decreased that amount by 3.5 MMBoe in 2023, down to 12MMBoe. However, management added 1.4MMBoe via revisions, and 0.5MMBoe from acquisitions in 2023, increasing the reserve total to 13.9MMBoe, as of 12/31/23. DMLP's cumulative Reserve Revisions have exceeded 100% of its Current Reserves, as of 12/31/23. On March 28, 2024, the Partnership acquired mineral interests totaling ~1,485 net royalty acres, located in 2 counties in Colorado, in exchange for 505,369 common units, representing limited partnership interests in the Partnership valued at $17.0M. DMLP site This type of action has increased DMLP's oil production by 15%, its Gas production by 25%, and its NGL production by 154% in 2019-2023. DMLP site Earnings: While Royalties were relatively flat in Q1 '24, Net Profits Interests declined over $9M, vs. Q1 '23, leading to much lower operating revenues. Management said that, The decrease in oil and natural gas sales volumes attributable to our NPI properties from the first quarter of 2023 to the same period of 2024 is primarily a result of lower suspense releases on new wells in the Permian Basin, partially offset by increased production and higher suspense releases on new wells in the Bakken region. DMLP 10Q Cash receipts attributable to our Royalty Properties during the first quarter of 2024 totaled $24.5M. Approximately 71% of these receipts reflect oil sales during December 2023 through February 2024, and natural gas sales during November 2023 through January 2024, and approximately 29% from prior sales periods. The average indicated prices for oil and natural gas sales cash receipts attributable to the Royalty Properties during the first quarter of 2024 were $63.89/bbl and $2.37/mcf, respectively. - Q1'24 10Q WTI Crude bottomed in December '23, and remained lower than previous 2023 levels through February '24, before moving higher in March-April: FINVIZ.com Revenues, Net Income, EPU, EBITDA, and Operating Cash Flow all declined in Q1 '24 vs. Q1 '23. Hidden Dividend Stocks Plus Dividends: DMLP's most recent distribution was $.7818, which gives it a forward yield of 9.88%. However, be aware that it pays variable quarterly distributions, so the July payout will most likely be different than $.7818. DMLP has a very high 5-year dividend growth average of over 24%, due to a 128% jump in distributions in 2022 vs. 2021. Hidden Dividend Stocks Plus DMLP's Operating Cash Flow covered its distributions by 1.07X in 2023. That figure dipped to just .68X in Q1 '24. However, take this table with a large grain of salt, since, as you'll see below, distributions can lag cash receipts by up to ~7 months. Hidden Dividend Stocks Plus In this example, for January production, DMLP began receiving cash in February, which stretched all the way to an August distribution: DMLP site Taxes: DMLP issues a K-1 to unitholders at tax time. LP distributions may include Return of Capital, ROC, which offers you a tax deferral benefit, but also decreases your tax basis. There also may UBTI involved. Please consult your tax advisor for more details. Peers: There are several other similar outfits in this sub-industry, 5 of which have markets of over $1B. Sitio Royalties (STR), is the biggest, with a $3.5B market cap, followed by Viper Energy (VNOM), with a $3.4B cap, and Black Stone Minerals, (BSM), with a $3.3B cap. DMLP is in the next tier, with a $1.27B cap, below Kimbell Royalty (KRP), with a $1.58 cap. This table also includes6 trusts with sub-$1B caps, with Sabine at $917M, down to Cross Timbers, at $82M. DMLP's trailing 10.45% yield puts it in the middle tier, similar to BSM, KRP, and CRT. MVO has the highest yield, at 16.55%, followed by VOC Energy (VOC), at 15.13%. PBT has the lowest yield, at 5.39%, below VNOM, at 6.7%, and STR, at 7.99%. VNOM has the highest average volume by far, at over 1M shares, whereas DMLP trades ~67K/day, in the lowest volume tier of this group. DMLP sits 11.3% below its 52-week high of $35.74. KRP and VNOM are closest to their 52-week highs, while PBT, VOC, and SJT are the furthest off their highs: Hidden Dividend Stocks Plus Performance: While DMLP has lagged the Energy sector so far in 2024, its total 1-year return of 17.63% was slightly better, due to its 10.45% yield. DMLP had the 3rd best 1-year total return in this group, trailing VNOM, which returned 47.46%, due to an outsized 41% price gain, and KRP, which returned 17.66%. 7 out of 11 companies have had negative total returns over the past year. Hidden Dividend Stocks Plus Looking back further, DMLP has had a much higher 5-year return than peers BSM, VNOM, KRP, STR, and PHX. DMLP site Parting Thoughts: Another plus for DMLP investors is that its General Partner has no incentive distribution rights. In fact, management's LP interest exceeds its GP interest by 2.3X, so there's no incentive for them to make dilutive transactions. Last week, on May 17th, CFO Moriyama bought 2,430 units at $31.74, bringing his total units owned to 68,000. DMLP could be a good addition to an income portfolio - we've owned it off and on for years. At this point, we'd buy units if they dip below $31.00. All tables furnished by Hidden Dividend Stocks Plus, unless otherwise noted.  Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.0","shortVersion":"4.24.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2438675628"}