Dorchester Minerals, L.p. · NASDAQ:DMLP
Dorchester Minerals, L.p — Investor Presentation (May 2024)
25 slides from Dorchester Minerals, L.p's investor presentation, May 15, 2024
Slide 1: Investor Presentation
Investor Presentation May 15, 2024 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 OBSERVATIONS & TRENDS AGENDA 03 DISTRIBUTIONS SLIDE 04 PRODUCTION & RESERVES 05 PROPERTY HIGHLIGHTS 06 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 Depletion Deduction Alignment with Unitholders History of Upward Reserve Revision Fixed LP/G
Slide 5: Observations & Trends
Observations & Trends • Consolidation among operators increases capital efficiency and economies of scale Oil and Gas • Operators focused on returning capital to shareholders more modest production growth targets Industry • Low natural gas prices have limited activity in dry gas basins, but not as
Slide 6: Royalty Peer Comparison
Royalty Peer Comparison 5 Year Total Shareholder Returns (2019 – 2023) Index 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 DMLP BSM VNOM KRP STR PHX WTI Spot Price Note: Comparison of DMLP total shareholder return to mineral and roya
Slide 7: 2023 Calendar Year Distributions
2023 Calendar Year Distributions Cumulative LP Distributions(1) LP Distribution History ($/unit)(3) $1.3 Billion $4.00 $3.50 $3.00 $2.50 2023 LP Distributions $2.00 $3.40 /unit $1.50 $1.00 $0.50 $0.00 Annualized Cash Distribution Yield(2) 9.6% Royalties NPI Other Revenue Revenue by Product Revenue b
Slide 8: Minerals NPI
Minerals NPI Trailing 12 Months NPI Payments Net Operating Income by Interest Type (Cash Basis by Calendar Year) $23.4 Million $50,000,000 $40,000,000 $30,000,000 Trailing 12 Months NPI Payments 83% 69% $0.60 /unit $20,000,000 46% 56% $10,000,000 49% 54% 31% 51% 44% 17% Outstanding Capital Commitmen
Slide 9: Total Production
Total Production Total Production 2019 – 2023 Oil Production 100,000 +15% 10,000 2019 – 2023 Gas Production +25% 1,000 2019 – 2023 NGL Production 100 +154% 2019 2020 Gas Rate (Mcfd) 2021 2022 Oil Rate (boed) 2023 NGL Rate (boed) 2024 Daily Gas Rate (Mcfd) Daily Oil Rate (boed) 25,000 6,000 5,000 20,
Slide 10: Royalty and NPI Production
Royalty and NPI Production Royalty Production NPI Production • Oil volumes sustained by Bakken and Midland Basin • Increase in oil volumes attributable to Bakken participation development • Baseline production supported by after-payout WI in • Gas volumes supported by associated gas in Bakken and Mi
Slide 11: 2023 Reserves
2023 Reserves 2023 PDP Reserve Revisions (MMBoe) Historical PDP Reserves (MMBoe) 18 20 13.9 16 MMBoe 15 14 2023 Acquisitions 0.5 1.4 12 2023 Revisions 10 10 8 15.5 MMBoe 12.0 12.0 2023 Pro Forma 5 6 MMBoe MMBoe 4 0 2 2023 Production Replaced 54% of 3.5 MMBoe 2023 Production 0 12/31/2022 12/31/2023 1
Slide 12: 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) 85,600 nma • Midland Basin – Large acreage spread across basin with mix of high net intere
Slide 13: Recent Acquisition Activity
Recent Acquisition Activity Recent Acquisitions • Four mineral and royalty acquisitions closed in the last 12 months. • 3,700 Net Royalty Acres located in 14 counties in 4 states • Total of 1.71 million units issued to contributors DJ Basin (CO) • 1,485 Net Royalty Acres • Core Areas: Adams & Weld C
Slide 14: Bakken/Three Forks
Bakken/Three Forks Net Mineral Acres 2023 Exit Rate New Well Adds 10,200 1,447 boed 103 (83,300 gross) Daily Production (boed) 2,500 First Pay 2022 & 2023 2,000 Participation Elections 1,500 1,000 500 0 2019 2020 2021 2022 2023 2024 Non-Consent Royalty Participation New Well Activity 2023 Production
Slide 15: Permian Basin
Permian Basin Central Basin Platform Midland Basin Delaware Basin 15
Slide 16: Midland Basin
Midland Basin Net Mineral Acres 2023 Exit Rate New Well Adds 17,500 3,111 boed 294 (268,000 gross) Daily Production (boed) 4,000 3,000 2,000 1,000 0 2019 2020 2021 2022 2023 2024 Royalty NPI New Well Activity 2023 Production Mix 400 10% 300 200 Oil Gas Reagan County 100 33% 57% • Leased 243 net acre
Slide 17: Delaware Basin
Delaware Basin Net Mineral Acres 2023 Exit Rate New Well Adds 2,300 494 boed 33 (31,900 gross) Daily Production (boed) 800 600 400 Silvertip Prospect • 28 wells drilled or completed in 2023 • 16 active permits on acreage 200 0 Winkler County Prospect 2019 2020 2021 2022 2023 2024 • 7 wells drilled o
Slide 18: Appendix
DMLP Dorchester Minerals, LP Appendix 18
Slide 19: Royalty Oil Production
Royalty Oil Production Oil Production by Vintage 10,000 1,000 100 1/1/2018 1/1/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 1/1/2024 Projected Decline Rates at 12/31/2024 Pre-2019 Wells 8.4% Pre-2020 Wells 9.7% Pre-2021 Wells 12.3% Pre-2022 Wells 16.5% Pre-2023 Wells 25.1% Pre-2024 Wells 30.3% Note: Pro
Slide 20: 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 2.3X 9.4 % Mgmt LP $12.9 MM Mgmt GP 2023 LP & GP
Slide 21: 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 30.7 MMBoe Equivalent Reserves (MMBoe) 2003 – 2022 Production & Initial Reserves Divestitures 20 Total Reserves
Slide 22: 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 Unleased mineral owner backs in for full 50% working interest after operator recovers 100% 100% NRI of costs. to DMOLP 0% 0% 50% 100% 150% 200% 250% 300% % Costs Recove
Slide 23: 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 24: 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 25: Dorchester Minerals, L.P.
Dorchester Minerals, L.P. June 21, 2023 NASDAQ | DMLP Investor Relations | (214) 559-0300 25
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