Dorchester Minerals(DMLP) - 2021 Q3 - Quarterly Report

Revenue and Sales Performance - Operating revenues increased 92% from $12.5 million during Q3 2020 to$24.0 million during Q3 2021, driven by higher Royalty Properties oil sales volumes and prices [65]. - Oil sales volumes attributable to Royalty Properties remained consistent from Q3 2020 to Q3 2021, with oil sales volumes of 271 mbbls in Q3 2021, a 4% increase from 260 mbbls in Q3 2020 [61]. - Natural gas sales volumes attributable to Royalty Properties were 971 mmcf in Q3 2021, consistent with 973 mmcf in Q3 2020 [61]. - Average sales price for Royalty Properties oil increased 67% from $36.34 per bbl in Q3 2020 to$60.65 per bbl in Q3 2021 [61]. - Cash receipts from Royalty Properties in Q3 2021 totaled $17.3 million, with 77$59.96/bbl and $3.03/mcf, respectively [71]. - Cash receipts from Net Profits Interests (NPI) in Q3 2021 amounted to$3.3 million, with average prices of $59.42/bbl for oil and$3.26/mcf for natural gas [72]. Expenses and Costs - General and administrative expenses decreased 59% from $2.2 million in Q3 2020 to$0.9 million in Q3 2021, primarily due to non-recurring costs related to the Hugoton NPI divestiture [68]. - Operating costs, including production taxes, increased 40% from $1.5 million in Q3 2020 to$2.1 million in Q3 2021, mainly due to higher production taxes [66]. - NPI natural gas sales decreased 42% from 528 mmcf in Q3 2020 to 304 mmcf in Q3 2021, reflecting lower production levels [61]. Cash Flow and Liquidity - Net cash provided by operating activities increased 48% from $32.0 million during the first nine months of 2020 to$47.5 million during the same period in 2021 [69]. - Cash and cash equivalents increased to $22.3 million as of September 30, 2021, up from$11.2 million at December 31, 2020 [79]. - The company expects sufficient liquidity to fund distributions to unitholders despite uncertainties from COVID-19 and market volatility [77]. - Approximately 23% of cash receipts were from prior sales periods, indicating ongoing revenue streams [71]. - The current economic environment remains volatile, impacting future cash flows and liquidity [77]. - The company anticipates that expenses will vary with oil and natural gas sales prices, affecting liquidity management [74]. Capital Commitments and Financial Stability - The company had outstanding capital commitments of $1.7 million as of September 30, 2021, primarily in the Bakken region [52]. - The partnership agreement restricts incurring indebtedness beyond$50,000, ensuring financial stability [76]. - The company does not have liabilities for exploration or production costs, minimizing financial risk [75].