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Dorchester Minerals LP
NASDAQ:DMLP

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Dorchester Minerals LP
NASDAQ:DMLP
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Price: 28.88 USD 0.77%
Market Cap: 1.4B USD

Operating Margin
Dorchester Minerals LP

57.2%
Current
71%
Average
11.8%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
57.2%
=
Operating Profit
92.4m
/
Revenue
161.5m

Operating Margin Across Competitors

Dorchester Minerals LP
Glance View

Market Cap
1.4B USD
Industry
Energy

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.

DMLP Intrinsic Value
25.13 USD
Overvaluation 13%
Intrinsic Value
Price
D
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
57.2%
=
Operating Profit
92.4m
/
Revenue
161.5m
What is the Operating Margin of Dorchester Minerals LP?

Based on Dorchester Minerals LP's most recent financial statements, the company has Operating Margin of 57.2%.

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