Thread on one of my fav energy stocks: $DMLP
Investment Case
- No debt.
- 11.5% yield.
- High EBITDA margin (51% vs. FB at 50%).
- No capex.
- Insiders buying.
Investment Case
- No debt.
- 11.5% yield.
- High EBITDA margin (51% vs. FB at 50%).
- No capex.
- Insiders buying.
DMLP earns income from royalties and net property interests. It doesn't spend $ on capex. Here's its 2020 revenue. 
It pays out all income to unit holders (current yield is 11.5%).
Better yet, the company doesn't generate UBTI so you can own this name in retirement accounts (I do).
Better yet, the company doesn't generate UBTI so you can own this name in retirement accounts (I do).
It's EBITDA margins are high (51% vs. FB at 50%) due to its attractive biz model.
Again, no capex and low operating costs.
Again, no capex and low operating costs.
Insiders own ~8% of the company and are constantly buying in the open market.
Oil is >$70/bbl but DMLP is still trading below its pre-covid levels.
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