DMLP Slumps on Oil Price Headwinds But Analysts See Value in Cheap Royalty Play
Dorchester Minerals (NASDAQ:DMLP) is an oil and gas royalty interest company that has been hit by declining oil prices. Despite this, analysts believe it to be a cheap play on the market.
The company's shares have taken a beating in recent months, with prices dropping from $12.50 in May 2022 to around $9.20 currently. This decline in price has made DMLP an attractive option for investors looking for a low-cost entry point into the oil and gas market.
Analysts point out that despite the current headwinds, Dorchester Minerals has a strong track record of generating revenue from its royalty interests. In fact, the company's management team has stated that it is well-positioned to weather the current downturn in oil prices due to its low operating costs and diversified asset base.