Dorchester Minerals: Cheap Royalty Play Despite Oil Price Headwinds

Hunting Alphas 8.9K Followers Follow Summary 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. Giorez/iStock via Getty Images Elevator Pitch I am leaning bullish on royalty O&G player Dorchester Minerals, L.P. ( DMLP ) after its recent Q2 FY26 earnings release . Although the incremental fundamental drivers look mediocre, I think the stock is cheap This article was written by Hunting Alphas 8.9K Followers Follow Hunting Alphas manages a long-only, zero-leverage global equity portfolio through a Self Managed Super Fund. The main portfolio managed is defensive in nature and on a risk-adjusted basis, it has outperformed the market, generating 7.5% annualized alpha, Sortino ratio of 2.0, Information Ratio of 0.67, and low max drawdowns.Hunting Alphas' articles are 5-Minute Stock Pitches that focus on the core stock drivers based on fundamentals, sentiment, valuations, and technical analysis across all types of sectors.Portfolio performance is shared monthly, portfolio holdings disclosed weekly and all the Excel models for the 5-Minute Pitches are shared on the Hunting Alphas website. Note: Hunting Alphas is related to VishValue Research on Seeking Alpha. 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.