Dorchester Minerals combines perpetual, debt-free mineral ownership with 100% cash-flow distributions and a probability-weighted five-year value of $44.27 versus a $28.70 entry price.
Overview
Dorchester Minerals, L.P. is a Dallas-based Delaware limited partnership that owns producing and non-producing mineral, royalty, overriding royalty, net profits, and leasehold interests across 28 states. Unlike exploration and production companies, it is a passive owner and avoids drilling, operating liabilities, and capital expenditures on Royalty Properties. It distributes 100% of available cash to unitholders and had zero debt with $72.500 million of cash at June 30, 2026. **Q2 2026 revenue rose 73.1% to $56.075 million and net income increased 150% to $30.871 million, or $0.62 per unit**, although results benefited from a $15.5 million Midland County litigation settlement and stronger operator activity. H1 revenue reached $114.950 million and net income $60.008 million. The Q2 distribution was $1.272943 per unit. The unit price was approximately $28.70-$29.20 in late August, after reaching $28.61 on August 20, versus a 50-day SMA of $26.57 and 200-day SMA of $25.62. Trailing P/E of roughly 16.3x-16.8x exceeds the 11.7x peer average, but DCF analysis based on distributions estimates fair value of $105.76. **The principal near-term catalysts are Williston and Permian development, further accretive acquisitions, and continued commodity support.**