Dorchester Minerals: Cheap Royalty Play Despite Oil Price Headwinds (Archive)
Dorchester Minerals trades at a 39% discount despite oil price headwinds and rising free cash flow.
This 5-Minute Pitch was originally published on Seeking Alpha. It is shared here to showcase my work and track record. I also publish full 5-Minute Pitches on this site. This will be behind a paywall, accessible to Hunter Tier members.
Elevator Pitch
- Dorchester Minerals, L.P. is an O&G royalty play that gets most of its revenues from oil-linked sales.
- Falling oil prices due to rising inventories and demand losses are a headwind.
- The Williston Basin acquisition diversifies royalty streams and lifts near-term sales, though long-term organic growth is limited.
- DMLP trades at a 39% discount to its long-term P/FCF median, making its valuations attractive.
- Monthly technicals show bullish momentum after a rebound from key support, with consolidation pointing to further upside.
Read the full article here.
