Outlook for Dorchester Minerals Units Solid
And just like that, the outlook for crude oil and energy stocks looks robust. On February 28, the U.S. and Israel launched a number of attacks across Iran. The Iranian military for its part responded with strikes in Israel, Bahrain, Jordan, Kuwait, Saudi Arabia, and the UAE.
Before the attacks, U.S. stocks were off to their worst start to a year since 1995. The war with Iran has not helped matters, as fears grow that the war could expand throughout the Middle East.
While the broader global markets are taking a hit, one sector, of course, that is experiencing growth is energy. Brent crude, the international benchmark, has soared above $82.00 per barrel; its highest level since January 2025.
Brent crude has soared on concerns that the closure of the Strait of Hormuz, one of the world’s most important shipping channels, would cut off major oil shipments.
Meanwhile, West Texas Intermediate, the U.S. benchmark, has experienced a similar jolt, trading hands at more than $83.00 per barrel. President Donald Trump said that strikes on Iran could last weeks, which should continue to give energy stocks some additional lift.
Some analysts are even calling for West Texas Intermediate to hit $100.00 per barrel. The last time crude was at that level was back in 2022. (Source: “Oil may hit US$100 per barrel as Iran conflict escalates, analysts say,” Yahoo! Finance, March 2, 2026.)
While tensions in the Middle East will eventually ease, what won’t is our need for oil and gas that comes from reliable, safe domestic providers like Dorchester Minerals LP (NASDAQ:DMLP), an oil and gas exploration and production (E&P) company.
About the Company
Dorchester Minerals LP was formed in January 2003 with the combination of Dorchester Hugoton, Ltd., Republic Royalty Company, L.P., and Spinnaker Royalty Company, L.P. (Source: “Investor Presentation,” Dorchester Minerals, L.P., May 14, 2025.)
The partnership owns producing and non-producing crude oil and natural gas mineral, royalty, overriding royalty, net profits, and leasehold interests across 28 states. (Source: “Investor Relations,” Dorchester Minerals LP, last accessed March 3, 2026.)
Dorchester Minerals’ independent engineering consultant has estimated that its total proved oil and gas reserves are 15.6 million barrels of oil equivalent. Approximately 86% of these reserves are attributable to the partnership’s royalty properties and 14% are attributable to its net profits interest. (Source: “Dorchester Minerals, L.P. Announces 2025 Results,” Dorchester Minerals LP, February 24, 2026.)
Some of Dorchester’s biggest customers include ExxonMobile Corp. (NYSE:XOM), Diamondback Energy Inc (NASDAQ:FANG), and ConocoPhillips (NYSE:COP).
Solid 2025 Results
Despite weak prices for crude oil in 2025, Dorchester reported solid full-year results. This included operating revenue of $152.83 million and net income of $57.35 million, or $1.16 per unit. (Source: “Dorchester Minerals, L.P. Announces 2025 Results,” Dorchester Minerals LP, May 8, 2025.)
These numbers were lower than what the company reported in 2024, but again, West Texas Intermediate prices trended lower for much of the year. Prices have soared in 2026, rising more than 24% year to date. Chances are good that Dorchester Minerals’ first-quarter numbers will be strong.
Fourth-Quarter Distribution of $0.75/Unit
Dorchester Minerals also has a history of reporting reliable free cash flow over the years, which is important, because this is where distributions come from. The partnership reported its four highest years on record in 2022 ($147.1 million), 2023 ($139.8 million), 2024 ($132.6 million), and 2025 ($132.4 million). (Source: “Dorchester Minerals, L.P. (DMLP),” Yahoo! Finance, last accessed March 3, 2026.)
This reliable cash flow has helped Dorchester pay an annual dividend every year since 1982. While its payout is reliable, the distribution fluctuates because it’s based on earning. In the fourth quarter of 2025, Dorchester Minerals LP paid out $0.755 per unit, or $2.79 on an annual basis, for a forward annual yield of 10.31%. (Source: “Distribution History,” Dorchester Minerals LP, last accessed March 3, 2026.)
That ultra-high-yield dividend is not a fluke due to a lower share price; the five-year average dividend yield is 10.61%.
The partnership distributed a total of $133.5 million to its common unitholders from May 2025 through February 2026, which is attributable to 2025 activity. Since its formation, Dorchester Minerals has paid out in excess of $1.5 billion to unitholders in distributions.
DMLP Stock Crushing S&P 500
Investing is about opportunities and right now, the energy sector is the place to be. We’re seeing crude and defensive plays get a near-term boost.
As of this March 3 writing, DMLP stock is significantly outpacing the broader market, up:
- 10% over the last month
- 25% year to date
For comparison sake, over the same time frame, the S&P 500 is down 1.5% over the last month and 0.4% year to date.
How will the markets perform over the longer term?
We could see investors pivot from riskier stocks like technology and smaller-cap stocks to less volatile ones. That said, should a ceasefire with Iran be on the horizon, the stock market could become less volatile very quickly.
Chart courtesy of StockCharts.com
The Lowdown on Dorchester Minerals LP
Dorchester Minerals is an oil and gas E&P partnership that has been reporting consistently solid financial results and paying out a reliable high-yield distribution. The longer-term outlooks for Dorchester Minerals, its stock, and distribution remain robust, too.
That’s good news for the 148 institutions that hold 29.58% of all outstanding DMLP shares. The biggest holders include Morgan Stanley, Horizon Kinetics Asset Management LLC, and Adams Asset Advisors, LLC. (Source: “Dorchester Minerals, L.P. (DMLP),” Yahoo! Finance, last accessed March 3, 2026.)