Item 9A. Controls and Procedures
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2025. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of December 31, 2025, our disclosure controls and procedures were effective, in that they ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Management ’ s Annual Report on Internal Control Over Financial Reporting
Management acknowledges its responsibility for establishing and maintaining adequate internal control over financial reporting in accordance with Rule 13a-15(f) promulgated under the Securities Exchange Act of 1934. Management has also evaluated the effectiveness of its internal control over financial reporting in accordance with generally accepted accounting principles within the guidelines of the Committee of Sponsoring Organizations of the Treadway Commission framework (2013). Based on the results of this evaluation, management has determined that the Partnership’s internal control over financial reporting was effective as of December 31, 2025. The independent registered public accounting firm of Grant Thornton LLP (PCAOB ID Number 248), as auditors of the Partnership’s consolidated financial statements included in the Annual Report, has issued an attestation report on the Partnership’s internal control over financial reporting.
Changes in Internal Controls
There were no changes in our Partnership’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934) during the quarter ended December 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
ITEM 9B. OTHER INFORMATION
During the quarter and year ended December 31, 2025 , none of our executive officers or directors adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5 - 1 (c) of any “Non-Rule 10b5 - 1 trading arrangement.”
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
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PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information required by this item, including information about our Managers, Executive Officers, Partnership Governance and Audit Committee, is incorporated herein by reference to the 2026 Proxy Statement, which will be filed with the Securities and Exchange Commission not later than 120 days subsequent to December 31, 2025 .
Insider Trading Arrangements and Policies
We have adopted an insider trading policy governing the purchase, sale and/or other dispositions of our securities by our Managers, the officers and employees of the Operating Partnership, or the Partnership itself that we believe is reasonably designed to promote compliance with insider trading laws, rules and regulations, and NASDAQ listing standards. A copy of our insider trading policy is filed as Exhibit 19.1 to this Annual Report.
ITEM 11. EXECUTIVE COMPENSATION
The information required by this item is incorporated herein by reference to the 2026 Proxy Statement, which will be filed with the Securities and Exchange Commission not later than 120 days subsequent to December 31, 2025.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED UNITHOLDER MATTERS
The information required by this item is incorporated herein by reference to the 2026 Proxy Statement, which will be filed with the Securities and Exchange Commission not later than 120 days subsequent to December 31, 2025.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information required by this item is incorporated herein by reference to the 2026 Proxy Statement, which will be filed with the Securities and Exchange Commission not later than 120 days subsequent to December 31, 2025.
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this item is incorporated herein by reference to the 2026 Proxy Statement, which will be filed with the Securities and Exchange Commission not later than 120 days subsequent to December 31, 2025.
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PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a)
Financial Statements and Schedules
(1)
See the Index to Consolidated Financial Statements on page F-1.
(2)
No schedules are required.
(3)
The exhibits required by Item 601 of Regulation S-K are as follows:
Number
Description
3.1
Certificate of Limited Partnership of Dorchester Minerals, L.P. (incorporated by reference to Exhibit 3.1 to Dorchester Minerals’ Registration Statement on Form S-4, Registration Number 333-88282)
3.2
Amended and Restated Agreement of Limited Partnership of Dorchester Minerals, L.P. (incorporated by reference to Exhibit 3.2 to Dorchester Minerals’ Report on Form 10-K filed for the year ended December 31, 2002)
3.3
Amendment No. 1 to Amended and Restated Partnership Agreement of Dorchester Minerals, L.P. (incorporated by reference to Exhibit 3.1 to Dorchester Minerals’ Current Report on Form 8-K filed with the SEC on December 22, 2017)
3.4
Amendment No. 2 to Amended and Restated Partnership Agreement of Dorchester Minerals, L.P. (incorporated by reference to Exhibit 3.4 to Dorchester Minerals’ Report on Form 10-Q filed with the SEC on August 6, 2018)
3.5
Amendment No. 3 to Amended and Restated Partnership Agreement of Dorchester Minerals, L.P. (incorporated by reference to Exhibit 3.1 to Dorchester Minerals’ Current Report on Form 8-K filed with the SEC on October 6, 2023)
3.6
Certificate of Limited Partnership of Dorchester Minerals Management LP (incorporated by reference to Exhibit 3.4 to Dorchester Minerals’ Registration Statement on Form S-4, Registration Number 333-88282)
3.7
Amended and Restated Agreement of Limited Partnership of Dorchester Minerals Management LP (incorporated by reference to Exhibit 3.4 to Dorchester Minerals’ Report on Form 10-K for the year ended December 31, 2002)
3.8
Certificate of Formation of Dorchester Minerals Management GP LLC (incorporated by reference to Exhibit 3.7 to Dorchester Minerals’ Registration Statement on Form S-4, Registration Number 333-88282)
3.9
Second Amended and Restated Limited Liability Company Agreement of Dorchester Minerals Management GP LLC (incorporated by reference to Exhibit 3.1 to Dorchester Minerals’ Current Report on Form 8-K filed with the SEC on October 18, 2024)
3.10
Certificate of Formation of Dorchester Minerals Operating GP LLC (incorporated by reference to Exhibit 3.10 to Dorchester Minerals’ Registration Statement on Form S-4, Registration Number 333-88282)
3.11
Limited Liability Company Agreement of Dorchester Minerals Operating GP LLC (incorporated by reference to Exhibit 3.11 to Dorchester Minerals’ Registration Statement on Form S-4, Registration Number 333-88282)
3.12
Certificate of Limited Partnership of Dorchester Minerals Operating LP (incorporated by reference to Exhibit 3.12 to Dorchester Minerals’ Registration Statement on Form S-4, Registration Number 333-88282)
3.13
Amended and Restated Agreement of Limited Partnership of Dorchester Minerals Operating LP (incorporated by reference to Exhibit 3.10 to Dorchester Minerals’ Report on Form 10-K for the year ended December 31, 2002)
3.14
Certificate of Limited Partnership of Dorchester Minerals Oklahoma LP (incorporated by reference to Exhibit 3.11 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)
3.15
Agreement of Limited Partnership of Dorchester Minerals Oklahoma LP (incorporated by reference to Exhibit 3.12 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)
3.16
Certificate of Incorporation of Dorchester Minerals Oklahoma GP, Inc. (incorporated by reference to Exhibit 3.13 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)
3.17
Bylaws of Dorchester Minerals Oklahoma GP, Inc. (incorporated by reference to Exhibit 3.14 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)
4.1
Description of the Registrant’s Securities (incorporated by reference to Exhibit 4.1 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2024)
10.1
Amended and Restated Business Opportunities Agreement dated as of December 13, 2001 by and between the Registrant, the General Partner, Dorchester Minerals Management GP LLC, SAM Partners, Ltd., Vaughn Petroleum, Ltd., Smith Allen Oil & Gas, Inc., P.A. Peak, Inc., James E. Raley, Inc., and certain other parties (incorporated by reference to Exhibit 10.1 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)
10.2
Transfer Restriction Agreement (incorporated by reference to Exhibit 10.2 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)
10.3
Registration Rights Agreement (incorporated by reference to Exhibit 10.3 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)
10.4
Lock-Up Agreement by William Casey McManemin (incorporated by reference to Exhibit 10.4 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)
10.5
Form of Indemnity Agreement (incorporated by reference to Exhibit 10.1 to Dorchester Minerals’ Quarterly Report on Form 10-Q for the quarter ended June 30, 2004)
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Table of Contents
Number
Description
10.6#
Dorchester Minerals Operating LP Equity Incentive Program (incorporated by reference to Annex A to Dorchester Minerals’ Proxy Statement on Schedule 14A filed with the SEC on March 16, 2015)
10.7
Contribution and Exchange Agreement dated September 16, 2022, by and among Dorchester Mineral, L.P., and Excess Energy, LLC (incorporated by reference to Exhibit 2.1 to Dorchester Minerals' Current Report on Form 8-K filed with the SEC on September 21, 2022)
10.8#
Amendment No. 1 to the Dorchester Minerals Management LP Equity Incentive Program (incorporated by reference to Exhibit 10.2 to Dorchester Minerals’ Current Report on Form 8-K filed with the SEC on October 6, 2023)
10.9#
Form of Common Unit Award Agreement (incorporated by reference to Exhibit 10.9 to Dorchester Minerals ’ Annual Report on Form 10-K for the year ended December 31, 2023)
10.10#
Form of Notional Unit Award Agreement (incorporated by reference to Exhibit 10.10 to Dorchester Minerals ’ Annual Report on Form 10-K for the year ended December 31, 2023)
10.11
Contribution and Exchange Agreement dated September 12, 2024, by and among Dorchester Minerals, L.P., West Texas Minerals LLC, Carrollton Mineral Partners, LP, Carrollton Mineral Partners Fund II, LP, Carrollton Mineral Partners III, LP, Carrollton Mineral Partners III-B, LP, Carrollton Mineral Partners IV, LP, CMP Permian, LP, CMP Glasscock, LP, and Carrollton Royalty, LP. (incorporated by reference to Exhibit 2.1 to Dorchester Minerals’ Current Report on Form 8-K filed with the SEC on September 16, 2024)
10.12#
Letter Agreement dated September 30, 2024 by and among Carrollton Mineral Partners, LP and the members of Dorchester Minerals Management GP, LLC (incorporated by reference to Exhibit 10.1 to Dorchester Minerals’ Current Report on Form 8-K filed with the SEC on October 18, 2024)
19.1*##
Insider Trading Policy
21.1*
Subsidiaries of the Registrant
23.1*
Consent of Grant Thornton LLP
23.2*
Consent of LaRoche Petroleum Consultants, Ltd.
31.1*
Certification of Chief Executive Officer of our Partnership pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
31.2*
Certification of Chief Financial Officer of our Partnership pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
32.1**
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Sec. 1350
97.1*
Dorchester Minerals, L.P. Clawback Policy
99.1*
Report of LaRoche Petroleum Consultants, Ltd.
99.2*
Report of LaRoche Petroleum Consultants, Ltd.
101.INS*
XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH*
Inline XBRL Taxonomy Extension Schema Document
101.CAL*
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*
Inline XBRL Taxonomy Extension Definition Document
101.LAB*
Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*
Inline XBRL Taxonomy Extension Presentation Linkbase Document
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
*
Filed herewith
**
Furnished herewith
#
Management contract or compensatory plan or arrangement
##
Certain schedules and/or appendices have been omitted in accordance with Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule and/or appendix will be furnished to the Securities and Exchange Commission upon request.
ITEM 16. FORM 10-K SUMMARY
None.
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GLOSSARY OF CERTAIN OIL AND NATURAL GAS TERMS
The definitions set forth below shall apply to the indicated terms as used in this document. All volumes of natural gas referred to herein are stated at the legal pressure base of the state or area where the reserves exist and at 60 degrees Fahrenheit and in most instances are rounded to the nearest major multiple.
"bbl" means a standard barrel of 42 U.S. gallons and represents the basic unit for measuring the production of crude oil, natural gas liquids and condensate.
“boe ” means one barrel of oil equivalent, converting natural gas to oil at the ratio of 6 Mcf of natural gas to 1 Bbl of oil. Also see mcfe below.
"Depletion" means (a) the volume of hydrocarbons extracted from a formation over a given period of time, (b) the rate of hydrocarbon extraction over a given period of time expressed as a percentage of the reserves existing at the beginning of such period, or (c) the amount of cost basis at the beginning of a period attributable to the volume of hydrocarbons extracted during such period.
"Division order" means a document to protect lessees and purchasers of production, in which all parties who may have a claim to the proceeds of the sale of production agree upon how the proceeds are to be divided.
"Enhanced recovery" means the process or combination of processes applied to a formation to extract hydrocarbons in addition to those that would be produced utilizing the natural energy existing in that formation. Examples of enhanced recovery include water flooding and carbon dioxide (CO2) injection.
"Formation" means a distinct geologic interval, sometimes referred to as the strata, which has characteristics (such as permeability, porosity and hydrocarbon saturations) that distinguish it from surrounding intervals.
"Future estimated net revenues" (also referred to as "future estimated net cash flow") means the result of applying current prices of oil and natural gas to estimated future production from oil and natural gas proved reserves, reduced by estimated future expenditures, based on current costs to be incurred in developing and producing the proved reserves, excluding overhead.
"Gross acre" means the number of surface acres in which a working interest is owned.
"Gross well" means a well in which a working interest is owned.
"Lease bonus" means the initial cash payment made to a lessor by a lessee in consideration for the execution and conveyance of the lease and includes proceeds from assignments of leasehold interests where the Partnership retains an interest.
"Leasehold" means a property in which a working interest is owned.
"Lessee" means the owner of a lease of a mineral interest in a tract of land.
"Lessor" means the owner of the mineral interest who grants a lease of his interest in a tract of land to a third party, referred to as the lessee.
"Mineral interest" means the interest in the minerals beneath the surface of a tract of land. A mineral interest may be severed from the ownership of the surface of the tract. Ownership of a mineral interest generally involves four incidents of ownership: (1) the right to use the surface; (2) the right to incur costs and retain profits, also called the right to develop; (3) the right to transfer all or a portion of the mineral interest; and (4) the right to retain lease benefits, including bonuses and delay rentals.
"mcf ” means one thousand cubic feet of natural gas under prescribed conditions of pressure and temperature and represents the basic unit for measuring the production of natural gas.
“mcfe ” means one thousand cubic feet of natural gas equivalent, converting oil or condensate to natural gas at the ratio of 1 Bbl of oil or condensate to 6 Mcf of natural gas. This conversion ratio, which is typically used in the oil and gas industry, represents the approximate energy equivalent of a barrel of oil or condensate to an Mcf of natural gas. The sales price of one barrel of oil or condensate has been much higher than the sales price of six Mcf of natural gas over the last several years, so a six to one conversion ratio does not represent the economic equivalency of six Mcf of natural gas to one barrel of oil or condensate.
"mbbls" means one thousand standard barrels of 42 U.S. gallons and represents the basic unit for measuring the production of crude oil, natural gas liquids and condensate.
"mmcf ” means one million cubic feet of natural gas under prescribed conditions of pressure and temperature and represents the basic unit for measuring the production of natural gas.
"Net acre" means the product determined by multiplying gross acres by the interest in such acres.
"Net royalty acre" means the product determined by multiplying net acres by the royalty rate in the lease multiplied by eight to normalize the interest based on a one-eighth royalty.
"Net well" means the product determined by multiplying gross oil and natural gas wells by the interest in such wells.
"Net profits interest" means a non-operating interest that creates a share in gross production from another (operating or non-operating) interest in oil and natural gas properties. The share is determined by net profits from the sale of production and customarily provides for the deduction of capital and operating costs from the proceeds of the sale of production. The owner of a net profits interest is customarily liable for the payment of capital and operating costs only to the extent that revenue is sufficient to pay such costs but not otherwise.
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"Operator" means the individual or company responsible for the exploration, development, and production of an oil or natural gas well or lease.
"Overriding royalty interest" means a royalty interest created or reserved from another (operating or non-operating) interest in oil and natural gas properties. Its term extends for the same term as the interest from which it is created.
“Payout ” or “ Back-in ” occurs when the working interest owners who participate in the costs of drilling and completing a well recoup the costs and expenses, or a multiple of the costs and expenses, of drilling and completing that well. Only then are the owners who chose not to contribute to these initial costs entitled to participate with the other owners in production and share in the expenses and revenues associated with the well. The reversionary interest or back-in interest of an owner similarly occurs when the owner becomes entitled to a specified share of the working or overriding royalty interest when specified costs have been recovered from production.
“Pooling election ” means the statutory combination of interests which affords owners the right to choose between participating in the drilling of a well or accepting royalty payments.
"Proved developed reserves" means reserves that can be expected to be recovered (i) through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and (ii) through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.
"Proved reserves" or “ Proved oil and natural gas reserves ” means those quantities of oil and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and governmental regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.
“Reservoir ” A porous and permeable underground formation containing a natural accumulation of producible oil and/or gas that is confined by impermeable rock or water barriers and is individual and separate from other reservoirs.
“Reserves ” Reserves are estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and gas or related substances to market, and all permits and financing required to implement the project.
"Royalty" means an interest in an oil and natural gas lease that gives the owner of the interest the right to receive a portion of the production from the leased acreage (or of the proceeds of the sale thereof) but generally does not require the owner to pay any portion of the costs of drilling or operating the wells on the leased acreage.
"Severance tax" means an amount of tax, surcharge or levy recovered by governmental agencies from the gross proceeds of oil and natural gas sales. Severance tax may be determined as a percentage of proceeds or as a specific amount per volumetric unit of sales. Severance tax is usually withheld from the gross proceeds of oil and natural gas sales by the first purchaser (e.g., pipeline or refinery) of production.
"Standardized measure of discounted future net cash flows" (also referred to as "standardized measure") means the pretax present value of estimated future net revenues to be generated from the production of proved reserves calculated in accordance with SEC guidelines, net of estimated production and future development costs, using prices and costs as of the date of estimation without future escalation, without giving effect to non-property related expenses such as general and administrative expenses, debt service and depreciation, depletion and amortization, and discounted using an annual discount rate of 10%.
“Suspense release ” means revenues that have been held by a purchaser or lessee, often attributable to multiple months of production.
"Undeveloped acreage" means lease acreage on which wells have not been drilled or completed to a point that would permit the production of commercial quantities of oil and natural gas regardless of whether such acreage contains proved reserves.
"Unitization" means the process of combining mineral interests or leases thereof in separate tracts of land into a single entity for administrative, operating or ownership purposes. Unitization is sometimes called "pooling" or "communitization" and may be voluntary or involuntary.
"Working interest" (also referred to as an "operating interest") means a real property interest entitling the owner to receive a specified percentage of the proceeds of the sale of oil and natural gas production or a percentage of the production but requiring the owner of the working interest to bear the cost to explore for, develop and produce such oil and natural gas. A working interest owner who owns a portion of the working interest may participate either as operator or by voting his percentage interest to approve or disapprove the appointment of an operator and certain activities in connection with the development and operation of a property.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
DORCHESTER MINERALS, L.P.
By:
/s/ Bradley Ehrman
Bradley Ehrman
Chief Executive Officer
Date: February 24, 2026
Pursuant to the requirements of the Securities and Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
/s/ Robert C. Vaughn
/s/ H.C. Allen, Jr.
Robert C. Vaughn
Interim Chairman and Manager
Date: February 24, 2026
H.C. Allen, Jr.
Manager
Date: February 24, 2026
/s/ Lesley R. Carver
/s/ Sarah N. Wariner
Lesley R. Carver
Manager
Date: February 24, 2026
Sarah N. Wariner
Manager
Date: February 24, 2026
/s/ Martha Ann Peak Rochelle
/s/ Albert G. Nance III
Martha Ann Peak Rochelle
Manager
Date: February 24, 2026
Albert G. Nance III
Manager
Date: February 24, 2026
/s/ Allen D. Lassiter
/s/ A. Troy Sturrock
Allen D. Lassiter
Manager
Date: February 24, 2026
A. Troy Sturrock
Manager
Date: February 24, 2026
/s/ F. Damon Box
F. Damon Box
Manager
Date: February 24, 2026
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Table of Contents
DORCHESTER MINERALS, L.P.
(A Delaware Limited Partnership)
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Dorchester Minerals, L.P.
Reports of Independent Registered Public Accounting Firm (PCAOB ID Number 248 )
F-2
Consolidated Balance Sheets
F-4
Consolidated Income Statements
F-5
Consolidated Statements of Changes in Partnership Capital
F-6
Consolidated Statements of Cash Flows
F-7
Notes to Consolidated Financial Statements
F-8
Supplemental Oil and Natural Gas Data (Unaudited)
F-13
F-1
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
General Partner and Unitholders
Dorchester Minerals, L.P.
Opinion on internal control over financial reporting
We have audited the internal control over financial reporting of Dorchester Minerals, L.P. (a Delaware limited partnership) and subsidiaries (the “Partnership”) as of December 31, 2025, based on criteria established in the 2013 Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control — Integrated Framework issued by COSO.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Partnership as of and for the year ended December 31, 2025, and our report dated February 24, 2026, expressed an unqualified opinion on those financial statements.
Basis for opinion
The Partnership’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Partnership’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and limitations of internal control over financial reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ GRANT THORNTON LLP
Dallas, Texas
February 24, 2026
F-2
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
General Partner and Unitholders
Dorchester Minerals, L.P.
Opinion on the financial statements
We have audited the accompanying consolidated balance sheets of Dorchester Minerals, L.P. (a Delaware limited partnership) and subsidiaries (the “Partnership”) as of December 31, 2025 and 2024, the related consolidated statements of income, changes in partnership capital, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Partnership’s internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 24, 2026 expressed an unqualified opinion.
Basis for opinion
These consolidated financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on the Partnership’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical audit matters
Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.
/s/ GRANT THORNTON LLP
We have served as the Partnership’s auditor since 1998.
Dallas, Texas
February 24, 2026
F-3
Table of Contents
DORCHESTER MINERALS, L.P.
(A Delaware Limited Partnership)
CONSOLIDATED BALANCE SHEETS
December 31,
(In Thousands)
2025
2024
ASSETS
Current assets:
Cash and cash equivalents
$ 41,937 $ 42,508
Accounts receivable
13,968 19,241
Net profits interest receivable - related party
2,513 5,544
Prepaid expenses and other current assets
526 539
Total current assets
58,944 67,832
Oil and natural gas properties (full cost method)
745,539 727,446
Accumulated full cost depletion
( 495,643 ) ( 429,435 )
Total
249,896 298,011
Leasehold improvements
989 989
Accumulated amortization
( 698 ) ( 606 )
Total
291 383
Operating lease right-of-use asset
423 586
Total assets
$ 309,554 $ 366,812
LIABILITIES AND PARTNERSHIP CAPITAL
Current liabilities:
Accounts payable and other current liabilities
$ 3,538 $ 3,984
Operating lease liability
256 263
Total current liabilities
3,794 4,247
Operating lease liability
521 777
Total liabilities
4,315 5,024
Commitments and contingencies (Note 5)
Partnership capital:
General Partner
( 4,825 ) ( 1,997 )
Unitholders ( 48,256 and 47,340 common units issued and outstanding as of December 31, 2025 and 2024, respectively)
310,064 363,785
Total partnership capital
305,239 361,788
Total liabilities and partnership capital
$ 309,554 $ 366,812
The accompanying notes are an integral part of these consolidated financial statements
F-4
Table of Contents
DORCHESTER MINERALS, L.P.
(A Delaware Limited Partnership)
CONSOLIDATED INCOME STATEMENTS
For each of the Years Ended December 31,
(In Thousands, except per unit amounts)
2025
2024
2023
Operating revenues:
Royalties
$ 127,823 $ 137,465 $ 114,531
Net profits interest - related party
13,928 21,856 34,338
Lease bonus
9,400 314 12,668
Other
1,681 1,888 2,262
Total operating revenues
152,832 161,523 163,799
Costs and expenses:
Production taxes
5,834 6,884 5,776
Operating expenses
10,022 7,671 6,435
Depreciation, depletion and amortization
66,300 42,588 26,307
General and administrative expenses
2,179 1,980 3,350
General and administrative expenses - related party
11,145 9,951 7,814
Total costs and expenses
95,480 69,074 49,682
Net income
$ 57,352 $ 92,449 $ 114,117
Allocation of net income:
General Partner
$ 2,100 $ 3,249 $ 3,728
Unitholders
$ 55,252 $ 89,200 $ 110,389
Net income per common unit (basic and diluted)
$ 1.16 $ 2.13 $ 2.85
Weighted average basic and diluted common units outstanding
47,654 41,811 38,783
The accompanying notes are an integral part of these consolidated financial statements
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DORCHESTER MINERALS, L.P.
(A Delaware Limited Partnership)
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERSHIP CAPITAL
For each of the Years Ended December 31,
(In Thousands)
General Partner
Unitholders
Total
Unitholder Units
2023
Balance at January 1, 2023
$ 676 $ 170,842 $ 171,518 38,372
Net income
3,728 110,389 114,117 -
Acquisitions of oil and natural gas properties for common units
- 35,777 35,777 1,211
Distributions ($ 3.395933 per common unit)
( 4,291 ) ( 131,564 ) ( 135,855 ) -
Balance at December 31, 2023
$ 113 $ 185,444 $ 185,557 39,583
2024
Net income
$ 3,249 $ 89,200 $ 92,449 -
Acquisitions of oil and natural gas properties for common units
- 235,663 235,663 7,757
Distributions ($ 3.487554 per common unit)
( 5,359 ) ( 146,522 ) ( 151,881 ) -
Balance at December 31, 2024
$ ( 1,997 ) $ 363,785 $ 361,788 47,340
2025
Net income
$ 2,100 $ 55,252 $ 57,352 -
Acquisition of oil and natural gas properties for common units
- 23,043 23,043 916
Distributions ($ 2.775346 per common unit)
( 4,928 ) ( 132,016 ) ( 136,944 ) -
Balance at December 31, 2025
$ ( 4,825 ) $ 310,064 $ 305,239 48,256
The accompanying notes are an integral part of these consolidated financial statements
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DORCHESTER MINERALS, L.P.
(A Delaware Limited Partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For each of the Years Ended December 31,
(In Thousands)
2025
2024
2023
Cash flows from operating activities:
Net income
$ 57,352 $ 92,449 $ 114,117
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization
66,300 42,588 26,307
Amortization of operating lease right-of-use asset
163 179 194
Changes in operating assets and liabilities:
Accounts receivable
6,024 ( 4,646 ) ( 467 )
Net profits interest receivable - related party
3,031 2,731 ( 1,105 )
Prepaid expenses and other current assets
13 133 25
Accounts payable and other current liabilities
( 135 ) ( 522 ) 1,052
Operating lease liability
( 263 ) ( 273 ) ( 281 )
Net cash provided by operating activities
132,485 132,639 139,842
Cash flows provided by investing activities:
Net cash contributed in acquisitions of oil and natural gas properties
3,888 14,725 2,284
Cash flows used in financing activities:
Distributions paid to General Partner and unitholders
( 136,944 ) ( 151,881 ) ( 135,855 )
(Decrease) Increase in cash and cash equivalents
( 571 ) ( 4,517 ) 6,271
Cash and cash equivalents at beginning of period
42,508 47,025 40,754
Cash and cash equivalents at end of period
$ 41,937 $ 42,508 $ 47,025
Non-cash investing and financing activities:
Fair value of common units issued for acquisitions of oil and natural gas properties
$ 23,043 $ 235,663 $ 35,777
The accompanying notes are an integral part of these consolidated financial statements
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DORCHESTER MINERALS, L.P.
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements
1.
Business and Basis of Presentation
Description of the Business
Dorchester Minerals, L.P. (the “Partnership”) is a publicly traded Delaware limited partnership that commenced operations on January 31, 2003. Our Partnership is based in Dallas, Texas and our business may be described as the acquisition, ownership and administration of Royalty Properties (which consists of producing and nonproducing mineral, royalty, overriding royalty, net profits, and leasehold interests located in 594 counties and parishes in 28 states (“Royalty Properties”)) and net profits overriding royalty interests (referred to as the “Net Profits Interest”, or “NPI”). In these Notes, the term “Partnership,” as well as the terms “us,” “our,” “we,” and “its” are sometimes used as abbreviated references to Dorchester Minerals, L.P. itself or Dorchester Minerals, L.P. and its related entities.
Basis of Presentation
The consolidated financial statements herein have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the accounts of Dorchester Minerals, L.P., Dorchester Minerals Oklahoma, LP, Dorchester Minerals Oklahoma GP, Inc., Maecenas Minerals LLP, Dorchester-Maecenas GP LLC, The Buffalo Co., A Limited Partnership, and DMLPTBC GP LLC, and DMLP Terra Firma LLC. All intercompany balances and transactions have been eliminated in consolidation.
Certain amounts in the prior‑period consolidated financial statements have been reclassified to conform to the current‑period presentation. Management believes these reclassifications enhance the clarity and consistency of the financial statement presentation. These are presentation only reclassifications and had no effect on total assets, total liabilities, shareholders’ equity, net income, or cash flows for any periods presented.
2.
Summary of Significant Accounting Policies
Basic and Diluted Earnings Per Unit — Per-unit information is calculated by dividing the net income applicable to holders of our Partnership’s common units by the weighted average number of units outstanding. The Partnership has no potentially dilutive securities and, accordingly, basic and dilutive net income per unit do not differ.
Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Partnership evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Partnership considers reasonable in each circumstance. Any effects on the Partnership’s business, financial position, or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Although the Partnership believes these estimates are reasonable, actual results could differ from those estimates.
General Partner — Our general partner is Dorchester Minerals Management LP, referred to in these Notes as “our General Partner.” Our General Partner owns all of the partnership interests in Dorchester Minerals Operating LP, the Operating Partnership. See Note 4 —Related Party Transactions. The General Partner is allocated 4 % and 1 % of our Royalty Properties’ net revenues and Net Profits Interest (“NPI”) proceeds received by the Operating Partnership, respectively.
Cash and Cash Equivalents — Our principal banking relationships are with major financial institutions. Cash balances in these accounts may, at times, exceed federally insured limits. We have not experienced any losses in such cash accounts and do not believe we are exposed to any significant risk on cash and cash equivalents. Short term investments with an original maturity of three months or less are considered to be cash equivalents and are carried at cost, which approximates fair value.
Concentration of Credit Risks and Significant Customers — Our Partnership, as a royalty owner, has no control over the volumes or method of sale of oil and natural gas produced and sold from the Royalty Properties and NPI. Royalties operating revenues from properties operated by Exxon Mobil Corporation and its subsidiaries and Chevron Corporation and its subsidiaries represented approximately 15 % and 10 % of total operating revenues for the year ended December 31, 2025 , respectively. Royalties operating revenues from properties operated by Exxon Mobil Corporation and its subsidiaries and Diamondback Energy, Inc. represented approximately 16 % and 15 % of total operating revenues for the year ended December 31, 2024, respectively. Royalties operating revenues from properties operated by Pioneer Natural Resources Company represented approximately 11 % of total operating revenues for the year ended December 31, 2023. If we were to lose a significant customer, such loss could impact revenue. The loss of any single customer is mitigated by our diversified customer base, and we do not believe that the loss of any single customer would have a long-term material adverse effect on our financial position or the results of operations.
Fair Value of Financial Instruments — The carrying amount of cash and cash equivalents, trade and other receivables, net profits interest receivable - related party, and accounts payables and other current liabilities approximates fair value because of the short maturity of those instruments. These estimated fair values may not be representative of actual values of the financial instruments that could have been realized as of year-end or that will be realized in the future.
Receivables — Our Partnership’s accounts receivable and net profits interest receivable consist primarily of Royalty Properties payments receivable and NPI payments receivable, respectively. Most payments are received two to three months after the production date. No reserve for current expected credit losses on accounts receivable is deemed necessary based upon our lack of historical write offs and review of current receivables. The Partnership’s receivables as of the years ended December 31, 2025, 2024 and 2023 consists of the following:
In Thousands
2025
2024
2023
Royalty Properties receivable
$ 13,810 $ 19,120 $ 13,556
Other
158 121 179
Accounts receivable
13,968 19,241 13,735
Net profits interest receivable - related party
2,513 5,544 8,275
Total Receivables
$ 16,481 $ 24,785 $ 22,010
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DORCHESTER MINERALS, L.P.
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements
Oil and Natural Gas Properties — We utilize the full cost method of accounting for costs related to our oil and natural gas properties. Under this method, all such costs are capitalized and amortized on an aggregate basis over the estimated lives of the properties using the unit-of-production method. These capitalized costs are subject to a ceiling test, which limits such pooled costs to the aggregate of the present value of future net revenues attributable to proved oil and natural gas reserves discounted at 10 % plus the lower of cost or market value of unproved properties. For the purposes of determining the capitalized costs ceiling, our Partnership only assigned value to proved developed producing oil and natural gas reserves as of December 31, 2025 . The full cost ceiling is evaluated at the end of each quarter and when events indicate possible impairment. There have been no impairments for the years ended December 31, 2025, 2024 and 2023 as a result of the full cost ceiling test.
The discounted present value of our proved oil and natural gas reserves is a major component of the ceiling test calculation and requires many subjective judgments. Estimates of reserves are forecasts based on engineering and geological analyses. Different reserve engineers could reach different conclusions as to estimated quantities of oil and natural gas reserves based on the same information. The passage of time provides more qualitative and quantitative information regarding reserve estimates, and revisions are made to prior estimates based on updated information. However, there can be no assurance that more significant revisions will not be necessary in the future. Significant downward revisions could result in an impairment representing a non-cash charge to income. In addition to the impact on the calculation of the ceiling test, estimates of proved reserves are also a major component of the calculation of depletion.
While the quantities of proved reserves require substantial judgment, the associated prices of oil and natural gas reserves that are included in the discounted present value of our reserves are objectively determined. The ceiling test calculation requires use of the unweighted arithmetic average of the first day of the month price during the 12 -month period ending on the balance sheet date and costs in effect as of the last day of the accounting period, which are generally held constant for the life of the oil and natural gas properties. As a result, the present value is not necessarily an indication of the fair value of the reserves. Oil and natural gas prices have historically been volatile, and the prevailing prices at any given time may not reflect our Partnership’s or the industry’s forecast of future prices.
Gains and losses are recognized upon the disposition of oil and natural gas properties involving a significant portion (greater than 25 %) of our Partnership’s reserves. Proceeds from other dispositions of oil and natural gas properties are credited to the full cost pool.
Leasehold Improvements — Leasehold improvements are amortized over the shorter of their estimated useful lives or the related life of the lease.
Leases — The Partnership determines if an arrangement is a lease at inception. The Partnership leases its office space at 3838 Oak Lawn Avenue, Suite 300, Dallas, Texas, through an operating lease (the “Office Lease”). The operating lease is included in operating lease right-of-use (“ROU”) asset and operating lease liability in our consolidated balance sheets. Operating lease expense is included in general and administrative expenses in the consolidated income statements.
Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. As the Partnership’s lease does not provide an implicit rate of return and as the Partnership is precluded from incurring any borrowings above a nominal amount under its partnership agreement, the Partnership used a discount rate commensurate with the incremental borrowing rate of a group of peers based on information available at the application date in determining the present value of lease payments. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
Asset Retirement Obligations — Based on the nature of our property ownership, we have no material obligations to record.
Revenue Recognition — The pricing of oil and natural gas sales from the Royalty Properties and NPI is primarily determined by supply and demand in the marketplace and can fluctuate considerably. As a royalty owner, we have no operational control over the volumes and method of sale of oil and natural gas produced and sold from the Royalty Properties and NPI.
Revenues from Royalty Properties and NPI are recorded under the cash receipts approach as directly received from the remitters’ statement accompanying the revenue check. Since the revenue checks are generally received two to three months after the production month, the Partnership accrues for revenue earned but not received by estimating production volumes and product prices. Identified differences between our accrued revenue estimates and actual revenue received historically have not been significant.
The Partnership does not record revenue for unsatisfied or partially unsatisfied performance obligations. The Partnership’s right to revenues from Royalty Properties and NPI occurs at the time of production, at which point, payment is unconditional, and no remaining performance obligation exists for the Partnership. Accordingly, the Partnership’s revenue contracts for Royalty Properties and NPI do not generate contract assets or liabilities.
The following table disaggregates the Partnership’s oil and natural gas revenues from production on the Royalty Properties for the years ended December 31, 2025, 2024 and 2023 :
In Thousands
2025
2024
2023
Oil sales (1)
$ 114,116 $ 129,693 $ 102,323
Natural gas sales
13,707 7,772 12,208
Total Royalties operating revenue
$ 127,823 $ 137,465 $ 114,531
( 1 )
Includes natural gas liquids sales.
Revenues from lease bonus payments are recorded upon receipt. The lease bonus is separate from the lease itself and is recognized as revenue to the Partnership upon receipt of payment. The Partnership generates lease bonus revenue by leasing its mineral interests to exploration and production companies and includes proceeds from assignments of leasehold interests where the Partnership retains an interest. A lease agreement represents the Partnership’s contract with a lessee and generally transfers the rights to develop oil or natural gas, grants the Partnership a right to a specified royalty interest, and requires that drilling and completion operations commence within a specified time period. Upon signing a lease agreement, no further performance obligation exists for the Partnership, and therefore, no contract assets or contract liabilities are generated.
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DORCHESTER MINERALS, L.P.
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements
Income Taxes — We are treated as a partnership for income tax purposes and, as a result, our income or loss is includable in the tax returns of the individual unitholders. Depletion of oil and natural gas properties is an expense allowable to each individual partner, and the depletion expense as reported on the consolidated financial statements will not be indicative of the depletion expense an individual partner or unitholder may be able to deduct for income tax purposes.
Texas imposes a franchise tax (commonly referred to as the Texas margin tax) at a rate of 0.75 % on gross revenues less certain deductions, as specifically set forth in the Texas margin tax statute. The Texas margin tax applies to corporations and limited liability companies, general and limited partnerships (unless otherwise exempt), limited liability partnerships, trusts (unless otherwise exempt), business trusts, business associations, professional associations, joint stock companies, holding companies, joint ventures, and certain other business entities having limited liability protection.
Limited partnerships that receive at least 90% of their gross income from designated passive sources, including royalties from mineral properties and other non-operated mineral interest income, and do not receive more than 10% of their income from operating an active trade or business, are generally exempt from the Texas margin tax as “passive entities.” We believe our Partnership meets the requirements for being considered a “passive entity” for Texas margin tax purposes and, therefore, it is exempt from the Texas margin tax. If the Partnership is exempt from Texas margin tax as a passive entity, each unitholder that is considered a taxable entity under the Texas margin tax would generally be required to include its portion of Partnership revenues in its own Texas margin tax computation. The Texas Administrative Code provides that such income is sourced according to the principal place of business of the Partnership, which would be the state of Texas.
Recent Accounting Pronouncements
Accounting Pronouncements Not Yet Adopted
In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024 - 03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220 - 40 ): Disaggregation of Income Statement Expenses” (“ASU 2024 - 03” ), which requires public entities to disclosure additional information about certain costs and expenses included in relevant expense captions presented on the income statement. ASU 2024 - 03 is effective for annual periods beginning after December 15, 2026, and for interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. Management is evaluating ASU 2024 - 03 to determine its impact on the Partnership’s disclosures.
In December 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025 - 11, “Interim Reporting (Topic 270 ): Narrow-Scope Improvements” (“ASU 2025 - 11” ), which improves the guidance in Topic 270 by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The ASU includes a comprehensive list of required interim disclosures and adds a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025 - 11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. Management is evaluating ASU 2025 - 11 to determine its impact on the Partnership’s disclosures.
The Partnership considers the applicability and impact of all ASUs. There are no other recent accounting pronouncements not yet adopted that are expected to have a material effect on the Partnership upon adoption.
3.
Acquisitions for Units
On August 29, 2025, pursuant to a non-taxable contribution and exchange agreement with multiple unrelated third parties, the Partnership acquired mineral interests totaling approximately 3,050 net royalty acres located in Adams County, Colorado in exchange for 915,694 common units representing limited partnership interests in the Partnership valued at $ 23.0 million and issued pursuant to the Partnership’s registration statement on Form S- 4. We believe that the acquisition is considered complementary to our business. The transaction was accounted for as an acquisition of assets under U.S. GAAP. Accordingly, the cost of the acquisition was allocated on a relative fair value basis and transaction costs were capitalized as a component of the cost of the assets acquired. Contributed cash delivered at closing and final settlement net cash received, net of capitalized transaction costs paid, of $ 1.8 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2025. Oil and natural gas properties, at cost, on the consolidated balance sheet as of December 31, 2025 includes $ 19.7 million of net capitalized costs attributable to proved oil and natural gas properties acquired in the transaction.
On September 30, 2024, pursuant to a non-taxable contribution and exchange agreement with West Texas Minerals LLC, a Delaware limited liability company, Carrollton Mineral Partners, LP, a Texas limited partnership, Carrollton Mineral Partners Fund II, LP, a Texas limited partnership, Carrollton Mineral Partners III, LP, a Texas limited partnership, Carrollton Mineral Partners III-B, LP, a Texas limited partnership, Carrollton Mineral Partners IV, LP, a Texas limited partnership, CMP Permian, LP, a Texas limited partnership, CMP Glasscock, LP, a Texas limited partnership, and Carrollton Royalty, LP, a Texas limited partnership, the Partnership acquired mineral, royalty, and overriding royalty interests in producing and non-producing oil and natural gas properties representing approximately 14,225 net mineral acres located in 14 counties across New Mexico and Texas in exchange for 6,721,144 common units representing limited partnership interests in the Partnership valued at $ 202.6 million and issued pursuant to the Partnership’s registration statements on Form S- 4. We believe that the acquisition is considered complementary to our business. The transaction was accounted for as an acquisition of assets under U.S. GAAP. Accordingly, the cost of the acquisition was allocated on a relative fair value basis and transaction costs were capitalized as a component of the cost of the assets acquired. Contributed cash delivered at closing and final settlement net cash received, net of capitalized transaction costs paid, of $ 8.8 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2024. Oil and natural gas properties, at cost, on the consolidated balance sheet as of December 31, 2024 includes $ 193.7 million of net capitalized costs attributable to proved oil and natural gas properties acquired in the transaction. Final settlement net cash received, net of capitalized transaction costs paid, of $ 1.9 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2025.
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DORCHESTER MINERALS, L.P.
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements
On September 30, 2024, pursuant to a non-taxable contribution and exchange agreement with an unrelated third party, the Partnership acquired overriding royalty interests totaling approximately 1,204 net royalty acres located in Weld County, Colorado in exchange for 530,000 common units representing limited partnership interests in the Partnership valued at $ 16.0 million and issued pursuant to the Partnership’s registration statement on Form S- 4. We believe that the acquisition is considered complementary to our business. The transaction was accounted for as an acquisition of assets under U.S. GAAP. Accordingly, the cost of the acquisition was allocated on a relative fair value basis and transaction costs were capitalized as a component of the cost of the assets acquired. Contributed cash delivered at closing and final settlement net cash received, net of capitalized transaction costs paid, of $ 1.4 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2024. Oil and natural gas properties, at cost, on the consolidated balance sheet as of December 31, 2024 includes $ 14.6 million of net capitalized costs attributable to proved oil and natural gas properties acquired in the transaction.
On March 28, 2024, pursuant to a non-taxable contribution and exchange agreement with multiple unrelated third parties, the Partnership acquired mineral interests totaling approximately 1,485 net royalty acres located in two counties in Colorado in exchange for 505,369 common units representing limited partnership interests in the Partnership valued at $ 17.0 million and issued pursuant to the Partnership’s registration statement on Form S- 4. We believe that the acquisition is considered complementary to our business. The transaction was accounted for as an acquisition of assets under U.S. GAAP. Accordingly, the cost of the acquisition was allocated on a relative fair value basis and transaction costs were capitalized as a component of the cost of the assets acquired. Contributed cash delivered at closing and final settlement net cash received, net of capitalized transaction costs paid, of $ 4.4 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2024. Oil and natural gas properties, at cost, on the consolidated balance sheet as of December 31, 2024 includes $ 12.3 million of net capitalized costs attributable to proved oil and natural gas properties acquired in the transaction.
Final settlement net cash received, net of capitalized transaction costs paid, of $ 0.2 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2025.
4.
Related Party Transactions
Our General Partner owns all of the partnership interests in the Operating Partnership. The Operating Partnership is the employer of all personnel, owns the working interests and other properties underlying our NPI, and provides day-to-day operational and administrative services to us and the General Partner. In accordance with our partnership agreement, we reimburse the General Partner for certain allocable general and administrative costs, including rent, salaries, and employee equity and benefit plans that are not direct expenses. These types of reimbursements are limited to 5% of distributions, plus certain costs previously paid. All such costs have been below the annual 5% limit amount, including the allowable surplus carryforward, for the years ended December 31, 2025, 2024 and 2023 . Additionally, certain reimbursable direct expenses such as professional and regulatory fees, as well as certain general and administrative costs that are related to regulatory matters, are not limited. The Partnership reimburses the Operating Partnership an estimated monthly fee for these expenses and in the month following will settle any payable or receivable remaining for actual expenses paid on behalf of the Partnership. All significant related party transactions with the Operating Partnership have been stated on the face of the consolidated financial statements for the years ended December 31, 2025, 2024 and 2023 .
5.
Commitments and Contingencies
Our Partnership and the Operating Partnership are involved in legal and/or administrative proceedings arising in the ordinary course of their businesses, none of which have predictable outcomes and none of which are believed to have any significant effect on consolidated financial position, cash flows, or operating results.
6.
Distribution To Holders of Common Units
On January 22, 2026, the Partnership announced its cash distribution for the fourth quarter of 2025 of $ 0.755712 per common unit, representing activity for the three -month period ended December 31, 2025 , payable to common unitholders on record as of February 2, 2026. This distribution was paid on February 12, 2026. The partnership agreement requires the next cash distribution to be paid by May 15, 2026.
7.
Leases
The third amendment to our Office Lease was executed in April 2017 for a term of 129 months, beginning June 1, 2018 and expiring in 2029. At lease commencement, the Partnership concluded the Office Lease was an operating lease. Under the third amendment to the Office Lease, monthly rental payments range from $ 25,000 to $ 30,000 and the Partnership received lease incentives of $ 0.7 million.
Lease expense for the years ended December 31, 2025, 2024 and 2023 was as follows:
In Thousands
2025
2024
2023
Operating lease expense
$ 262 $ 262 $ 262
Supplemental cash flow information related to leases was as follows:
In Thousands
2025
2024
2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases
$ 362 $ 356 $ 350
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DORCHESTER MINERALS, L.P.
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements
Supplemental balance sheet information related to leases was as follows:
2025
2024
2023
Weighted-Average Remaining Lease Term (months)
Operating lease
38 50 62
Weighted-Average Discount Rate
Operating lease
5 % 5 % 5 %
Maturities of lease liabilities are as follows:
In Thousands
2025
2026
$ 368
2027
374
2028
380
2029
63
Total lease payments
1,185
Less amount representing interest
( 408 )
Total lease obligation
$ 777
8.
Segment Reporting
The Partnership manages its business activities on a consolidated basis and operates in a single operating and reportable segment. Operating segments are defined as components of a public entity that engages in business activities and for which discrete financial information and operating results are available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and assess performance. As disclosed in Note 1 – Business and Basis of Presentation, our business may be described as the acquisition, ownership and administration of Royalty Properties and the NPI. See Note 2 – Summary of Significant Accounting Policies for a summarization of the Partnerships revenue recognition policy.
The Partnership’s CEO has been determined to be the chief operating decision maker of the Partnership. The CEO uses Net income, as reported on our Consolidated Income Statements, to assess financial performance and allocate resources on a consolidated basis. The CEO manages and evaluates the results of the Partnership on a consolidated basis, and Net income is used to evaluate key operating decisions, such as making strategic acquisitions, determining transaction structures to capitalize on the development of the properties underlying our mineral interests, and allocating resources for general and administrative expenditures. The CEO does not review consolidated balance sheet assets when assessing segment performance and deciding how to allocate resources. Disaggregated operating revenues of the Partnership’s single segment and all significant segment expenses are presented separately on the Partnership’s Consolidated Income Statements. There are no other significant segment expenses or other segment items that would require disclosure.
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DORCHESTER MINERALS, L.P.
(A Delaware Limited Partnership)
Supplemental Oil and Natural Gas Data
(Unaudited)
Oil and Natural Gas Reserve and Standardized Measure
The NPI represents a net profits overriding royalty interest burdening various properties owned by the Operating Partnership. The Royalty Properties consist of producing and nonproducing mineral, royalty, overriding royalty, net profits, and leasehold interests located in 594 counties and parishes in 28 states. Amounts set forth herein attributable to the NPI reflects our 96.97% net share. Although new activity has occurred on certain of the Royalty Properties, based on engineering studies available to date, no events have occurred since December 31, 2025 that would have a material effect on our estimated proved developed reserves.
In accordance with U.S. GAAP and Securities and Exchange Commission rules and regulations, the following information is presented with regard to the Royalty Properties and NPI oil and natural gas reserves, all of which are proved, developed, and located in the United States. These rules require inclusion as a supplement to the basic financial statements a standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves. The standardized measure, in management's opinion, should be examined with caution. The basis for these disclosures are petroleum engineers’ reserve studies which contain estimates of quantities and rates of production of reserves. Revision of prior year estimates can have a significant impact on the results. Changes in production costs may result in significant revisions to previous estimates of proved reserves and their future value. Therefore, the standardized measure is not necessarily a best estimate of the fair value of oil and natural gas properties or of future net cash flows.
The following summaries of changes in reserves and standardized measure of discounted future net cash flows were prepared from estimates of proved reserves. The Standardized Measure of Discounted Future Net Cash Flows reflects adjustments for fuel, shrinkage, and pipeline loss.
Oil (mbbls)
Natural Gas (mmcf)
2025
2024
2023
2025
2024
2023
Estimated quantity, beginning of year
11,069
8,318
8,920
35,599
33,351
39,153
Revisions in previous estimates
520
2,927
1,283
7,921
4,799
839
Purchase of reserves in place (1)
506
2,429
374
1,269
5,296
743
Production
(2,623
)
(2,605
)
(2,259
)
(8,157
)
(7,847
)
(7,384
)
Estimated quantity, end of year
9,472
11,069
8,318
36,632
35,599
33,351
(1) During 2025, the Partnership acquired mineral interests representing approximately 3,050 net royalty acres in Adams County, Colorado. The acquisition represented 506 mbbls and 1,269 mmcf of 2025 purchases of minerals in place.
During 2024, the Partnership acquired mineral, royalty, and overriding royalty interests representing approximately 16,914 net royalty acres in 16 counties across three states. The acquisitions represented 2,429 mbbls and 5,296 mmcf of 2024 purchases of minerals in place.
During 2023, the Partnership acquired mineral and royalty interests representing approximately 2,184 net royalty acres in 16 counties and parishes across three states. The acquisitions represented 374 mbbls and 743 mmcf of 2023 purchases of minerals in place.
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Table of Contents
DORCHESTER MINERALS, L.P.
(A Delaware Limited Partnership)
Supplemental Oil and Natural Gas Data
(Unaudited)
Standardized Measure of Discounted Future Net Cash Flows
(Dollars in Thousands Except Where Noted)
2025
2024
2023
Future estimated gross revenues
$
547,822
$
667,840
$
559,865
Future estimated production costs
(34,747
)
(43,476
)
(35,026
)
Future estimated net revenues
513,075
624,364
524,839
10% annual discount for estimated timing of cash flows
(235,255
)
(291,958
)
(252,761
)
Standardized measure of discounted future estimated net cash flows
$
277,820
$
332,406
$
272,078
Sales of oil and natural gas produced, net of production costs
$
(125,895
)
$
(146,050
)
$
(137,015
)
Net changes in prices and production costs
(37,190
)
(7,280
)
(122,884
)
Net change due to purchase of minerals in place
15,656
69,946
9,813
Revisions of previous quantity estimates
52,949
109,971
54,220
Accretion of discount
33,241
27,208
41,915
Change in production rate and other
6,653
6,533
6,876
Net change in standardized measure of discounted future estimated net cash flows
$
(54,586
)
$
60,328
$
(147,075
)
Depletion of oil and natural gas properties (dollars per mcfe)
$
2.78
$
1.81
$
1.25
Property acquisition costs
$
18,093
$
220,389
$
34,084
Average oil price per barrel (1)(2)
$
55.24
$
61.19
$
66.04
Average natural gas price per mcf (1)
$
1.93
$
1.04
$
1.90
(1)
Includes Royalty and NPI prices combined by volumetric proportions and represents the 12-month unweighted average of first-day-of-the-month commodity prices for the periods presented with adjustments for basin differentials.
(2)
Includes oil and natural gas liquids prices combined by volumetric proportions.
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