Dorchester Minerals, L.p. · NASDAQ:DMLP
Dorchester Minerals, L.p — Investor Presentation (June 2023)
23 slides from Dorchester Minerals, L.p's investor presentation, Jun 21, 2023
Slide 1: Investor Presentation
Investor Presentation June 21, 2023 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Portions of this presentation may constitute, and our officers and representatives from time to time may make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statem
Slide 3: Agenda
OUTLINE 01 INVESTMENT HIGHLIGHTS 02 DISTRIBUTIONS AGENDA SLIDE 03 PRODUCTION & RESERVES 04 PROPERTY HIGHLIGHTS 05 SUMMARY *Feb 1984 3
Slide 4: Investment Highlights
Investment Highlights Assets Structure Management Long-life Resource Base Formulaic Distribution Sustainable Cost Structure Exposure to Multiple Basins Unlevered and Unhedged Non-Dilutive Equity Compensation Fixed LP/GP Split Alignment with Unitholders History of Upward Reserve Revision Assertive Re
Slide 5: Royalty Peer Comparison
Royalty Peer Comparison 5 Year Total Shareholder Returns (2018 – 2022) Index 400% 350% 300% 250% 200% 150% 100% 50% 0% 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 DMLP BSM VNOM KRP STR PHX WTI Oil Price Note: Distributions/Dividends reinvested on payment date. STR includes hist
Slide 6: 2022 Distributions
2022 Distributions Cumulative LP Distributions(1) LP Distribution History ($/unit)(3) $1.2 Billion $4.00 $3.50 $3.00 $2.50 2022 LP Distributions $2.00 $3.50 /unit $1.50 $1.00 $0.50 $0.00 Annualized Cash Distribution Yield(2) 13.7% Royalties NPI Other Revenue Gross Revenue by Product Gross Revenue by
Slide 7: Minerals NPI
Minerals NPI Trailing 12 Months NPI Payments Net Operating Income by Interest Type $38.0 Million $50,000,000 $40,000,000 $30,000,000 Trailing 12 Months NPI Payments 74% $0.99 /unit $20,000,000 69% 45% 48% $10,000,000 44% 55% 52% 31% 26% 56% Outstanding Capital Commitments $0 $6.0 Million Participati
Slide 8: Total Production
Total Production Total Production 2018 – 2022 Oil Production 100,000 +14% 10,000 2018 – 2022 Gas Production +34% 1,000 2018 – 2022 NGL Production 100 +122% 2018 2019 Gas Rate (Mcfd) 2020 2021 Oil Rate (boed) 2022 NGL Rate (boed) 2023 Daily Gas Rate (Mcfd) Daily Oil Rate (boed) 25,000 6,000 5,000 20,
Slide 9: Royalty and NPI Production
Royalty and NPI Production Royalty Production NPI Production • Oil volumes sustained by robust Midland Basin development • Oil historically driven by Bakken participation • Gas has increased from associated gas attributable to • After-payout WI in Midland Basin helped suppress oil Bakken and Permian
Slide 10: 2022 Reserves
2022 Reserves 2022 PDP Reserve Revisions (MMBoe) Historical PDP Reserves (MMBoe) 18 15.5 20 MMBoe 16 1.1 2022 Acquisitions 15 14 1.7 2022 Revisions 12 10 10 8 15.5 MMBoe 12.7 12.7 2022 Pro Forma 5 6 MMBoe MMBoe 4 0 2 2022 Production Replaced 100% of 2.8 MMBoe 2022 Production 0 12/31/2021 12/31/2022
Slide 11: Mineral Portfolio Overview
Mineral Portfolio Overview Bakken/Three Forks (ND) 10,200 nma • Core area with remaining development potential • Significant unleased mineral position • Significant contributor to NPI revenue Permian (TX & NM) 85,500 nma • Midland Basin – Large acreage spread across basin with mix of high net intere
Slide 12: 2022 Acquisition Activity
2022 Acquisition Activity 2022 Acquisitions • Two geographically diverse mineral and royalty acquisitions in 2022 • 5,700 Net Royalty Acres located in 25 counties in 9 states • Total of 1.39 million units issued to contributors DJ Basin (CO) • 3,600 Net Royalty Acres • Core area in Weld County, CO w
Slide 13: Bakken/Three Forks
Bakken/Three Forks Net Mineral Acres 2022 Exit Rate New Well Adds 10,200 755 boed 74 (83,300 gross) Daily Production (boed) 2,500 2,000 1,500 1,000 500 0 2018 2019 2020 2021 2022 2023 Non-Consent Royalty Participation New Well Activity 2022 Production Mix 150 5% 100 29% Oil 50 Gas 66% NGL 0 2019 202
Slide 14: Permian Basin
Permian Basin Central Basin Platform Midland Basin Delaware Basin 14
Slide 15: Midland Basin
Midland Basin Net Mineral Acres 2022 Exit Rate New Well Adds 17,400 2,506 boed 280 (265,600 gross) Daily Production (boed) Upton County 3,500 APO Wells 3,000 2,500 2,000 1,500 1,000 500 0 2018 2019 2020 2021 2022 2023 Royalty Vertical Royalty Horizontal NPI New Well Activity 2022 Production Mix 300
Slide 16: Delaware Basin
Delaware Basin Net Mineral Acres 2022 Exit Rate New Well Adds 2,200 469 boed 35 (17,800 gross) Daily Production (boed) 600 500 400 300 200 100 0 Winkler County Prospect • 3 wells completed in 2022 2018 2019 2020 2021 2022 2023 • 9 active permits New Well Activity 2022 Production Mix Silvertip Prospe
Slide 17: Appendix
-DMLP Dorchester Minerals, LP Appendix 17
Slide 18: Management Ownership
Management Ownership Alignment of GP and LP interests • GP has no incentive distribution rights – fixed sharing ratio • Management’s LP interest exceeds its GP interest • Not incentivized to make dilutive transactions 4.0 % Mgmt GP $5.5 MM Mgmt LP is 2.5X 9.9 % Mgmt LP $13.6 MM Mgmt GP 2022 LP & GP
Slide 19: Historical Reserve Revisions
Historical Reserve Revisions Reserve Revision History • Cumulative Reserve Revisions have exceeded 100% of Current Reserves • Production and divestitures have exceeded initial reserves by 27.2 MMBoe Equivalent Reserves (MMBoe) 2003 – 2022 Production & 20 Initial Reserves Divestitures Total Reserves
Slide 20: Non-Consent/Non-Participation
Non-Consent/Non-Participation Each State has unique laws governing the treatment of unleased mineral owners. NRI 100% Texas 100% WI 50% 100% NRI Unleased mineral owner backs in to DMOLP for full working interest after operator recovers 100% of costs. 0% 0% 50% 100% 150% 200% 250% 300% % Costs Recove
Slide 21: Royalty Cash Receipts
Royalty Cash Receipts Cash Receipts Timeline • Cash receipts extend over multiple months due to adjustments, suspense releases, etc. • Prices can change dramatically between production and payment of distribution • Example of a typical cash receipt cycle: Cash 1st Quarter Oil and Gas receipts Distri
Slide 22: Net Royalty Acres?
Net Royalty Acres? Complex mineral ownership is not well represented by Net Royalty Acres • Royalty rates and lease status vary by depth • Royalty rates vary by contract • Single section example from Upton Co. Floating NPRI Spraberry burdening Mineral Interest Leased @ 1/8th Lease 3/16th Floating NP
Slide 23: Annual Meeting Investor Presentation
Dorchester Minerals, L.P. June 21, 2023 Annual Meeting Investor Presentation June 21, 2023 23
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