Summary

• Dorchester Minerals, L.P. remains a Buy, with intrinsic value estimated above current levels even when taking into account a higher level of macro risk.
• Q1 results were boosted by a $15.5M settlement on paper, but cash from this will impact Q2 and its distributions, while the Iran boost is also delayed.
• DMLP maintains a fortress balance sheet, being prohibited from significant indebtedness by design, currently offering a nearly 7% annualized yield that should be sustained in a low-price oil environment.
• While the Iran conflict offers near-term upside, it introduces even more volatility and potential future headwinds as oil fundamentals may weaken post-conflict.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in DMLP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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