Dorchester said that about 65% of the acreage is located in the Delaware Basin with the remainder in the in the Midland. (Source: Shutterstock)
Dorchester Minerals has entered into two agreements to acquire mineral, royalty and overriding royalty interests in the Permian’s Midland and Delaware basins and the Denver-Julesburg (D-J) Basin.
Dorchester announced the all-equity acquisitions on Sept. 16. The value of the total deals, based on the company’s Sept. 13 unit prices of $29.85, is about $215 million, although the deals were signed prior to that date. The other parties in the deals were not disclosed.
Dorchester said on Sept. 12, it entered into a non-taxable contribution and exchange agreement with unrelated third parties to acquire mineral, royalty and overriding royalty interests totaling approximately 14,529 net royalty acres in 14 counties across New Mexico and Texas.
Dorchester said that about 65% of the acreage is located in the Delaware Basin with the remainder in the in the Midland.
The sellers will sell their interests to Dorchester in exchange for 6.72 million common units of Dorchester Minerals LP.
Cash received by the contributing entities on or after July 1, will be contributed to Dorchester at closing.
In a separate transaction on Sept. 4, also announced on Sept. 16, Dorchester agreed to acquire overriding royalty interests totaling approximately 1,204 net royalty acres located in Weld County, Colorado, from an unrelated third party. Weld County overlays the D-J Basin.
The seller will convey its interests in exchange for 530,000 common units representing limited partnership interests in Dorchester.
Both transactions are expected to close on Sept. 30, subject to customary closing conditions.
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