Dorchester Minerals, L.p. · NASDAQ:DMLP
Dorchester Minerals, L.p — Shareholder Meeting (May 2015)
53 slides from Dorchester Minerals, L.p's shareholder meeting presentation, May 19, 2015
Slide 1: Annual Meeting May 20, 2015
Dorchester Minerals, LP .Q: DMLP- Dorchester Minerals, LP Annual Meeting May 20, 2015
Slide 2: Forward-Looking Statements
Dorchester Minerals, LP Na LP Forward-Looking Statements ‘ortions of thi ki statements" as cores by federal law. "Such statements are isks, Should one or more of these risks or uncertainties matenalze, or shou ary materially from those anticipated, estimated or projected. Examples of sucl ch changes
Slide 3: Overview of 2014 Results
Dorchester Minerals, LP NASDAQ: DMLP Overview of 2014 Results Ea: Reserves » Production » Distributions
Slide 4: Overview of 2014 Results
Dorchester Minerals, LP NASDAQ: DMLP Overview of 2014 Results
Slide 5: 2014 Activity
. . Dorchester Minerals, LP .Q: DMLP- 2014 Activity Minimal activity in most dry gas plays - Mid-Continent, Fayetteville and Barnett Shale Fever-pitch in Bakken and Midland Basin — Efficiency and technology enhancements Fulfillment of Minerals NPI strategy Prudent acquisition parameters restrict com
Slide 6: Overview of 2014 Results
Dorchester Minerals, LP NASDAQ: DMLP Overview of 2014 Results eS ee
Slide 7: 2014 Reserves
Dorchester Minerals, LP DMLP 2014 Reserves * Total Proved Reserves of 90.2 Bcfe on 12/31/2014 7 9 ) 1339 —_ ivi in it field extensions, infill drilling Year-end Reserves (Bcfe) 100 80 ’ 60 c 40 Ss 20 Plant 0 Products & 4% Sh B.D 1D AN AVAD nde SP PVQ rena SS SO) PPP LP PP F we Base Revisions GAcquis
Slide 8: 2014 Reserves
Dorchester Minerals, LP NASDAQ: DMLP ; 2014 Reserves « Revisions to Reported PDP Reserves Equivalent Reserves (Bcfe) 100 90.2 Total Reserves 90 2014 Revisions 80 70 + 60 50 + 2014 Pro Forma 12/31/2013 12/31/2014 12/31/2014 Reserves Pro Forma Reserves
Slide 9: 2014 Reserves
LP Dorchester Minerals. AQ: 2014 Reserves * Composition of Proved Reserves Geographic Breakdown Royalty-NPI Split Equivalent Reserves (Bcfe) 70 60 Other ie 50 Barnett Shale 40 8% 30 Mia Hugoton Continent 24% 20 6% South TX/ 10 Gulf Coast 8 4% Fe il id Royalty NPI 11% wOil&PP_mGas
Slide 10: Overview of 2014 Results
Dorchester Minerals, LP NASDAQ: DMLP Overview of 2014 Results fe oe en
Slide 11: 2014 Production
2014 Production * Natural Gas Production Daily Gas Rate (Mcfd) 100,000 Barnett ~Saleof Kansas- Acquisition Hugoton Ops TP SS=—__: $$ Started reporting L. 10,000 Ss liquicequivatent 1,000 ; : T 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 12: 2014 Production
Dorchester Minerals, LP NASDAQ: DMLP 2014 Production * Oil and Plant Products Production ermian oil fields Daily Oil Rate (bopd) ly 10,000 1,000 Maecenas Requisition NE a salcolating plant =| iquid id equi 00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 13: 2014 Production
LP Dorchester Minerals. NASDAQ: 2014 Production * Contribution from Diverse Sources — Opportunities for Daily Equivalent Rate (Mcfed) 40,000 Mid- Continent South TX/ Gulf Coast 5% 6% 35,000 | Hugoton Fayetteville 23% Shale 16% 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 14: 2014 Production
Dorchester Minerals, LP 2014 Production * Portfolio Has Shifted Over Time o) ‘ cae nai — 2003-201 — 2011-2014 i participati i i yalty o . Net Profits Interests Royalty 2003 2005 «= 2007: «2009-2011. 2013-2015 Royalty NP’
Slide 15: Overview of 2014 Results
Dorchester Minerals, LP NASDAQ: DMLP Overview of 2014 Results (Sj
Slide 16: 2014 Distributions
Dorchester Minerals, LP DMLP 2014 Distributions * Cash Distributions Paid in Calendar 2014 Royalty Revenue $54.0 MM
Slide 17: 2014 Distributions
Dorchester Mi nerals LP 2014 Distributions . Pemipenenis and Prices - Gross Revenue > 18% gas sales, 80% oll & NGL _ 2% other revenue = N July 2013 LP Distribution History ($/unit) Gas Price ($/Mcf) Oil Price ($/bbl) $3.00 $10.00 $100 $9.00 $90 $2.60 $8.00 = $80 7.00 70 ei seoo | _/ > \/ 360 x v $1.
Slide 18: Property Discussion
Dorchester Minerals, LP .Q: DMLP- Property Discussion * Activity Overview Minerals NPI * Core Midland Basin * Bakken/Three Forks Fayetteville Hugoton
Slide 19: Royalty Overview
Dorchester Minerals, LP NASDAQ: DMLP Royalty Overview « Leasing and Development Activity — Consummated 107 — Initial royalty terms up to 25%
Slide 20: Net Profits Interests Overview
rals, LP Dorchester Mi Net Profits Interests Overview « NPI Provides Exposure to Working Interest Potential Without Generating UBTI — Currently five NPI groups — Leverage information franchise = “Heads up” participation (North Dakota & Texas) = Unleased cotenancy (Texas) Montana, North Dakota \aded
Slide 21: Net Profits Interests Production
Dorchester Mi rals, LP DMLP Net Profits Interests Production « Relative contribution of NPIs has shifted over time Minerals NPI volum: to 011 i i resul aly Equivalent Rate (Mefed) 000 [ Hugoton NPI GOtherNPIis Minerals NPI aa sonny emote 003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Not
Slide 22: Minerals NPI
Dorchester Mi Minerals NPI * Production by Product Daily Oil Rate (boepd) Gas i 300% over the same period ily 1,000 Daily Gas Rate (Mcfd) 10,000 1,000 R PD r : 10 2013 2014 22 100 T 2006 2007 2008 2009 2010 2011 2012
Slide 23: Minerals NPI
LP Dorchester Minerals. AQ: Minerals NPI * Components of Production — NewAreas: MT Bakken (2006), i Permian (2010) Daily Equivalent Rate (Mcfed) 9,000 ‘Miscellaneous, Fayetteville @ Permian ken 007 «2008 §=62009 «2010 2011 2012 2013 2014 Note: Production graph limited to “in pay” volumes. 23
Slide 24: Minerals NPI
Dorchester Minerals, LP .Q: DMLP Minerals NPI * Activity from August 2013 through March 2015 Cash on Band @ 07/31/2013 Cash on Hand @ 03/31/2015 Capital Commitments @ 07/31/2013 Additional Commitments During Period Capital Commitments @ 03/31/2015 Cumulative Surplus (Deficit) $5.0 MM Outstanding Cap
Slide 25: Minerals NPI
Dorchester Minerals, LP NASDAQ: DMLP Minerals NPI * Activity from August 2013 through March 2015 1001, As of Bolance ($ Millions) 03/34/2015 Minerals NPI Deficit $6.4 MM ($5) Minerals NPI Cash on Hand ($1 0) $4.3 MM ¥ Budgeted Capital Balance ($15) $10.7 MM ($20) ($25) , : Jul-2013 Jan-2014 Jul-2014
Slide 26: Non-Consent/Non-Participation
Dorchester Minerals, LP Non-Consent/Non-Participation * Texas 100% of costs NRI 100% 50% 0% 0% 100% 200% 300% * North Dakota % Costs Recovered recovers 150% of costs NRI 100% 50% ~ 0 1% 0% 100% 200% 300% % Costs Recovered
Slide 27: Non-Consent/Non-Participation
Dorchester Minerals, LP NASI DAQ: DMLP Non-Consent/Non-Participation * Texas 100% of costs Selected Texas NIC Paid Out Average Average Well Count WellCount BPONRI APO NRI * North Dakota recovers 150% of costs Selected North NIC Paid Out © Average Average Dakota Counties WellCount WellCount BPO NRI N
Slide 28: Minerals NPI
Dorchester Mi nerals LP Minerals NPI * Production by Interest Type Daily Equivalent Rate (Mcfed) 9,000 OParticipation 8,000 -| wNon-Consent Back-in 2007 +2008 2009 2010 2011 2012 2013 2014 2001 Note: Production graph limited to “in pay” volumes. 28
Slide 29: Core Midland Basin
Dorchester Minerals. 0 Core Midland Basin « Emerging Horizontal Wolfcamp Play HOWARD cuassoock Varying undivided interests in ~200,000 gross acres - Unleased on the Spraberry in numerous tra | Midland Basi 1 |[amictand Basin -Royaty O 2009 2010 2011 2012 2013 2014 29
Slide 30: Core Midland Basin
Dorchester Minerals, LP NASDAQ: DMLP Core Midland Basin * Effect of well elections on production profile — Single Operator in Upton Co, Texas ~ NPI participation in 36 wells Daily Equivalent Rate (boepd) Well Count 4,000 20 — Incremental volumes added as non- consent wells reach payout status 2013 O
Slide 31: Core Midland Basin
Dorchester Minerals, LP NASDAQ: DMLP Core Midland Basin + Example: Selected Upton/Midland County Holdings
Slide 32: Bakken/Three Forks
Dorchester Mi nerals LP Bakken/Three Forks ¢ Williston Basin — Northwestern North Dakota — Producing 1 Well Count Net Daily Production (boepd) 140 1,200 429 | SNon-Consent Elections NPI Participation Elections 1,000 7 Royalty 00 00 0 2008 2010 2012 2014 2008 2010 2012 2014
Slide 33: Bakken/Three Forks
Dorchester Minerals. Bakken/Three Forks Williston Basin — Northwestern North Dakota Well Average Average Count BPONRI APO NRI [Eemereremenn [wr | ons | [seen went a [ em | um a [eeriesncrepone |e | Teo | roo { Note: NRI values are the sum of DMLP and DMOLP NRIs. 33
Slide 34: Bakken/Three Forks
Dorchester M nerals LP Bakken/Three Forks * Non-Consent Elections — A Look Back 302 Non-Consent Wells 41 Back-in WI Wells Incremental Ean 4% Royalty $17.8 MM $4.5 ($2.3 MM) Lease Bonus Working Interest Upside Other Considerations Well Information/Risk Mitigation Lease Bonus assumed “ “Market Rate” P
Slide 35: Bakken/Three Forks
Dorchester Minerals, LP NASDAQ: DMLP Bakken/Three Forks * Non-Consent Elections — A Look Back =“ 7 production, oil prices, etc. Cumulative Production (BOE) 800,000
Slide 36: Bakken/Three Forks
Dorchester Minerals, LP Na SDAQ: DMLP. Bakken/Three Forks « Example: 22-155N-94W, Mountrail Co. (149 net acres) Well Name (Operator) EN-Jetrey A 155:94-2794H-9 Hess) | Election apo Apo Peak Ave nel NR ae,
Slide 37: Fayetteville Shale
Dorchester Minerals, LP NASDAQ: DMLP ~ Fayetteville Shale « Eastern Arkoma Basin — Northern Arkansas 196 sections - 457 New Wells on Production 120 Net Daily Production (Mcfd) 8,000 ‘|Working Interest Wells 100 | Royalty interest Wells 80 0 th =i 2006 2008 2010 Note: Production graph limited to “in
Slide 38: Fayetteville Shale
Dorchester Mi Fayetteville Shale « Eastern Arkoma Basin — Northern Arkansas — Fewer - ly acreage in Q1 Average NRI of New Wells 5.00% 7,000 4.00% 6,000 5,000 3.00% 4,000 2.00% 3,000 4.00% 2,000 : nl 1,000 0.00% 0 2006 «2008 2010 2012 2014 2006 2008 2010 2012 2014
Slide 39: Hugoton Operated Properties
Dorchester Minerals, LP .Q: DMLP Hugoton Operated Properties * Hugoton Field - Oklahoma Panhandle — 2014 production within au 0% of poe Year-over-year with a 1.2% fog Rate (Mcfd) Well Count 200 150 \ 10,000 te 00 Sale of Kansas 50 Hugoton Ops 1,000 2003 2005 2007 2009 2011 2013 Note: Gas rate based
Slide 40: Annual Meeting May 20, 2015
Dorchester Minerals, LP .Q: DMLP- Dorchester Minerals, LP Annual Meeting May 20, 2015
Slide 41: Appendix
Dorchester Minerals, LP NASDAQ: DMLP Appendix
Slide 42: Portfolio Overview
Portfolio Overview Dorchester Minerals, LP N Varying NPRI’s, * Geographically Diverse — 574 counties in 25 states prod: lucing basin: West Texas Gulf Coast Southeast NM Denver nie a tiolbery Ongoing Development Delaware Basin Springs | West TX 0 Jeffress , ’ South Texas _| McAllen Ranch Horizontal W
Slide 43: 2014 Reserves
Dorchester Minerals. 2014 Reserves * History of Positive Reserve Revisions Equivalent Reserves (Bcfe) 120 106.5 _ Initial Reserves isl “o 90.2 100 -——— Acquisitions ee so -—— — 60 Reserve aan Revisions 20 + o + — (20) (40) 01/31/2003 12/31/2014 12/31/2014 Reserves Pro Forma Reserves
Slide 44: 2014 Production
2014 Production ¢ Plant Products Contribution ~ in cubic feet, gallons, bushels, etc. (or none) = Equi t Equivalent PF iti i i gas prices, NGL ices -oil price ratio, gas composition, i Propane Price ee Plant Products (Equivalent Volume) Belvieu Propane Price (S/bb!) 0 2006 2007 2008 2009 2010 2011 2
Slide 45: 2014 Production
Dorchester M nerals LP 2014 Production * Plant Products Example — Permian Royalty - Calculated PP y p y Net Revenue from Gas/Plant Products Gas Price $800,000 $6.00 Permian Plant Products Revenue ‘ermian Gas Revenue $700,000 Henry Hub Gas Price $5.00 $600,000 Realized Gas Price AD $500,000 |_| $4.00
Slide 46: What is the Minerals NPI and How Does it Work?
Dorchester Minerals, LP NASDAQ: DMLP Minerals NPI What is the Minerals NPI and How Does it Work? n, Dorchester Mi e public partnership and owner of the mineral ees fuser for fate Narslceteat a ic on is undeveloped Teal interests by the creation of the Minerals Net Profits Interest (Minerals NPI). DM
Slide 47: What is the Minerals NPI and How Does it Work?
Dorchester Minerals, LP ASDA .Q: DMLP- Minerals NPI « What is the Minerals NPI and How Does it Work? Lease to third party for ——— ‘ Participation right royalty and optional assigned to DMOLP participation right 100% of costs IOLP pay: Royalty anal receives 100% of revenue (100% of cash flow) plus in
Slide 48: Distributions
Dorchester Minerals, LP LP Distributions * Distribution Determinations 7 i ($ thousands) Limited eneral Partners Partner 4Y i roperties = = $--—--~ $2,061 96Y i p $49,474 $--——--- 1y t i Partnership $——— $ 90 999 i i Partnership $ 8,914 $-————- Total Distributions $2,151 perating f Net Proceeds) $ 2
Slide 49: Management Ownership
Dorchester Mi rals, LP DMLP Management Ownership Alignment of GP and LP interests dishari ti interest Mgmt GP $2.1 MM Mgmt LP is 3.3 Mgmt LP* $7.0 MM times Mgmt GP 2014 Cash Distributions Other LP mm) $51.4 MM nagement LP interest includes Punts owned by officers, mi and their immediate familie
Slide 50: Effects of Operating Leverage
Dorchester Minerals, LP AQ: DMLP Effects of Operating Leverage Royalty Interest vs. NPI Royalty Interest Net Profits | interest Production Volume 1,000 Mcf Gas Price $4.00/Mcf oa aoMat Revenue $4,000 $4,000 Fixed Production Costs ($0) ($1,000) Operating Income $4,000 $3,000 Net Interest 25% Royalty
Slide 51: Royalty Cash Receipts
Dorchester Mi Is, LP DMLP Royalty Cash Receipts « Long delay between predueaon and cash distribution - releases, etc. LP di: y production may occur as late as nt sia a 7-month ‘lens lag 51
Slide 52: Peer Group Comparison
Dorchester Minerals, LP NASDAQ: DMLP Peer Group Comparison * Market Performance oO T r 2010 2011 2012 2013 2014 2015 ]
Slide 53: Annual Meeting May 20, 2015
Dorchester Minerals, LP .Q: DMLP- Dorchester Minerals, LP Annual Meeting May 20, 2015