Dorchester Minerals(US:DMLP)2025-11-06 21:08Financial Position - As of September 30, 2025, the company had cash on hand of $8.4 million, with outstanding capital commitments primarily in the Bakken region[40]. - Cash and cash equivalents were $41.6 million as of September 30, 2025, compared to $42.5 million at December 31, 2024[69]. - The Partnership expects sufficient liquidity to fund distributions despite uncertainties from global military conflicts and inflation[67]. - The Partnership's capital resources primarily come from cash flows from Royalty Properties and NPI, with distributions determined after expenses[64]. - The Partnership is prohibited from incurring indebtedness exceeding $50,000, excluding trade payables[66]. Revenue and Sales Performance - For the three months ended September 30, 2025, natural gas sales volumes from Royalty Properties increased by 2% to 1,607 mmcf compared to 1,569 mmcf in the same period of 2024, while oil sales volumes decreased by 23% to 493 mbbls[52]. - The average sales price for Royalty Properties natural gas increased by 145% to $2.35/mcf in Q3 2025, compared to $0.96/mcf in Q3 2024[52]. - Cash receipts from Royalty Properties in Q3 2025 totaled $33.0 million, with 70% from oil sales and 30% from prior sales periods[62]. - Average realized prices for oil and natural gas sales from Royalty Properties were $57.83/bbl and $2.05/mcf, respectively[62]. - Cash receipts from the Partnership's NPI in Q3 2025 amounted to $5.1 million, with 47% from recent sales and 53% from prior periods[63]. - Average realized prices for oil and natural gas sales from NPI properties were $64.45/bbl and $2.82/mcf, respectively[63]. Operating Costs and Expenses - Operating costs, including production taxes, increased by 5% from Q3 2024 to Q3 2025, primarily due to higher natural gas production taxes and post-production costs[56]. - Depreciation, depletion, and amortization increased by 69% from Q3 2024 to Q3 2025, reflecting significant changes in estimates of oil and natural gas reserves[57]. - General and administrative expenses rose by 16% from the first nine months of 2024 to the same period of 2025, driven by increased legal fees and higher compensation expenses[58]. - Net cash provided by operating activities decreased by 3% from the first nine months of 2024 to the same period of 2025, primarily due to lower NPI payment receipts[59]. Acquisitions and Commitments - The company acquired mineral interests totaling approximately 3,050 net royalty acres in Adams County, Colorado, valued at $23.0 million on August 29, 2025[46]. - Lease bonus revenue for the first nine months of 2025 included $3.6 million from a lease extension in Reagan County, Texas, executed at $15,000 per acre with a 25% royalty[55]. Market and Risk Factors - The company continues to monitor factors impacting commodity supply and demand, including geopolitical tensions and tariff impacts, which may affect future profitability[42]. - There have been no significant changes in exposure to market risk during the three months ended September 30, 2025[72]. Lease Obligations - The total lease obligation for the office space is $842,000, with future lease payments totaling $1.276 million[65].