Dorchester Minerals, L.P. reported its 2025 financial results, posting a net income of $57.4 million and earnings of $1.16 per common unit. The partnership’s operating revenue fell to $152.8 million from $161.5 million in 2024, a decline that reflects a softer commodity environment and lower production volumes across its portfolio.
The partnership’s proved reserves remained unchanged at 15.6 million barrels of oil equivalent (mmboe) as of December 31 2025. Seventy‑six percent of those reserves are tied to royalty interests, with the remaining 14 % attributable to net‑profits interests. Liquids account for 61 % of the proved reserves, and all reserves are classified as proved, developed, and producing. The reserves are spread across 28 states, underscoring the partnership’s geographic diversification strategy.
Dorchester distributed $133.5 million to common unitholders from May 2025 through February 2026, continuing its commitment to high dividend yields. The partnership also announced a Q4 2025 cash distribution of $0.755712 per common unit, payable in February 2026. The distribution policy remains aggressive, but the decline in earnings raises questions about the long‑term sustainability of these payouts.
The decline in net income—from $92.4 million in 2024 to $57.4 million in 2025—mirrors the drop in operating revenue and reflects weaker commodity prices and a modest reduction in production volumes. Because Dorchester’s royalty model limits operating costs, the margin compression is largely driven by lower upstream cash flows rather than increased expenses. The partnership’s focus on royalty and net‑profits interests continues to provide a stable revenue base, but the reduced earnings signal potential pressure on future distributions.
Management did not provide new guidance for 2026, but the company’s continued distribution of $133.5 million and the unchanged reserve base suggest confidence in maintaining shareholder returns. Investors will likely monitor the partnership’s ability to sustain high dividend yields amid the earnings decline, as the high payout ratio could become a risk if upstream cash flows continue to weaken.
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