Dorchester Minerals Reaches Settlement Agreement

Resolves litigation affecting certain Texas oil and gas leases

Mar. 16, 2026 at 8:04pm

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Dorchester Minerals, L.P. and its operating subsidiary have entered into a settlement agreement with unrelated third parties, resolving ordinary course litigation affecting certain oil and gas leasehold interests in Midland County, Texas. The Operating Partnership received $15.5 million in proceeds from the settlement, which will be included in the calculation of the April 2026 net profits interest payment to Dorchester Minerals, L.P.

Why it matters

This settlement allows Dorchester Minerals to avoid potentially costly and protracted litigation, while providing a financial boost through the $15.5 million payment that will be distributed to unitholders. The company's mineral and royalty interests in Texas are a key part of its business model, so resolving this dispute is an important development.

The details

The settlement agreement resolves litigation affecting certain leasehold interests in Midland County, Texas that are owned by Dorchester Minerals Operating LP and subject to Dorchester Minerals, L.P.'s net profits interest. The $15.5 million in proceeds received by the Operating Partnership will be included in the calculation of the April 2026 net profits interest payment to the parent company, Dorchester Minerals, L.P.

  • The settlement agreement was reached on March 16, 2026.
  • The $15.5 million payment will be included in the April 2026 net profits interest payment.

The players

Dorchester Minerals, L.P.

A Dallas-based owner of producing and non-producing oil and natural gas mineral, royalty, overriding royalty, and net profits interests located in 28 states. Its common units trade on the NASDAQ Global Select Market under the symbol DMLP.

Dorchester Minerals Operating LP

The operating subsidiary of Dorchester Minerals, L.P. that owns the oil and gas leasehold interests in Midland County, Texas that were subject to the litigation.

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The takeaway

This settlement allows Dorchester Minerals to avoid potential legal costs and risks, while providing a financial boost to its unitholders through the $15.5 million payment that will be distributed. It demonstrates the company's ability to effectively manage its mineral and royalty interests in Texas, a key part of its business model.