Dorchester Minerals LP
NASDAQ:DMLP
Gross Margin
Dorchester Minerals LP
Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.
Gross Margin Across Competitors
Country | Company | Market Cap |
Gross Margin |
||
---|---|---|---|---|---|
US |
D
|
Dorchester Minerals LP
NASDAQ:DMLP
|
1.3B USD |
91%
|
|
US |
![]() |
Conocophillips
NYSE:COP
|
110.3B USD |
47%
|
|
CN |
C
|
CNOOC Ltd
SSE:600938
|
675.7B CNY |
50%
|
|
US |
![]() |
EOG Resources Inc
NYSE:EOG
|
60B USD |
62%
|
|
CA |
![]() |
Canadian Natural Resources Ltd
TSX:CNQ
|
79.9B CAD |
49%
|
|
US |
P
|
Pioneer Natural Resources Co
LSE:0KIX
|
46B USD |
51%
|
|
US |
![]() |
Hess Corp
NYSE:HES
|
39.4B USD |
78%
|
|
US |
![]() |
Diamondback Energy Inc
NASDAQ:FANG
|
37.3B USD |
71%
|
|
US |
![]() |
EQT Corp
NYSE:EQT
|
29.9B USD |
57%
|
|
US |
C
|
Continental Resources Inc
F:C5L
|
25.8B EUR |
92%
|
|
US |
![]() |
Texas Pacific Land Corp
NYSE:TPL
|
28.7B USD |
93%
|
Dorchester Minerals LP
Glance View
Dorchester Minerals LP is a unique player in the oil and gas sector, operating as a master limited partnership (MLP) with a distinct business model that sets it apart from traditional exploration and production companies. Formed through the merger of several smaller partnerships, Dorchester Minerals focuses on acquiring and managing a diverse portfolio of producing royalty interests, overriding royalty interests, net profits interests, and leasehold mineral interests. The real charm of Dorchester’s strategy lies in its focus on passive income generation; the company primarily earns revenue through royalties from oil and gas production activities conducted by other operators on its lands. This approach allows Dorchester to sidestep the high capital expenditures and operational risks typically associated with direct exploration and development, thus generating more stable and predictable cash flows which are attractive for its investors. By holding an extensive array of mineral rights across various prolific basins in the United States, Dorchester Minerals has structured its business to benefit from both rising commodity prices and increasing production activities. When oil and gas prices are high, the royalties they earn from production activities increase, directly impacting their profitability. Furthermore, the partnership's diversified geographic footprint dilutes the risk inherent in operating in a single area or basin. This geographical diversity is complemented by a zero-debt policy, which fortifies its financial stability in the volatile oil and gas market. As a result, Dorchester Minerals can consistently distribute the majority of its cash flow to unitholders, embodying the MLP model designed to provide steady income streams along with potential tax advantages, hence becoming a favored choice for income-focused investors.
See Also
Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.
Based on Dorchester Minerals LP's most recent financial statements, the company has Gross Margin of 91%.