Dorchester Minerals(DMLP) - 2022 Q2 - Quarterly Report

Financial Performance - As of June 30, 2022, the company had cash on hand of $4.1 million from its Net Profits Interest (NPI) in various properties[48] - The company acquired mineral and royalty interests representing approximately 3,600 net royalty acres for $14.8 million on March 31, 2022[57] - Oil sales volumes from Royalty Properties increased by 41% year-over-year for the second quarter of 2022, reaching 318 mbbls[62] - Natural gas sales volumes from Royalty Properties increased by 9% year-over-year for the second quarter of 2022, totaling 1,105 mmcf[62] - Average sales price for oil from Royalty Properties increased by 61% year-over-year to $94.52 per bbl for the second quarter of 2022[62] - Lease bonus revenue increased by 182% from the first six months of 2021 to the same period in 2022, primarily due to a lease bonus from the Permian Basin[66] - Net cash provided by operating activities increased by 139% from the first six months of 2021 to the same period in 2022[69] - Cash receipts from Royalty Properties in Q2 2022 totaled $33.9 million, with 74% from oil sales and 26% from prior sales periods[71] - Average indicated prices for oil and natural gas sales from Royalty Properties were $89.14/bbl and $4.59/mcf, respectively[71] - Cash receipts from Net Profits Interest in Q2 2022 amounted to $5.1 million, with 68% from recent sales[72] - Average indicated prices for oil and natural gas sales from NPI properties were $81.42/bbl and $5.31/mcf, respectively[72] - Cash and cash equivalents increased to $43.0 million as of June 30, 2022, up from $28.3 million at the end of 2021[78] Operating Costs and Expenses - Operating costs, including production taxes, increased by 132% year-over-year for the second quarter of 2022[67] - General and administrative expenses rose by 115% year-over-year for the second quarter of 2022, mainly due to higher compensation expenses[68] Market Conditions and Risks - The company’s profitability is significantly affected by fluctuations in oil and natural gas market prices, which have shown sharp increases recently[54] - The economic environment remains volatile, impacting cash flows and liquidity due to potential declines in oil prices[77] Liquidity and Financial Obligations - The partnership expects sufficient liquidity to fund distributions despite uncertainties from COVID-19 and market volatility due to geopolitical tensions[77] - Total lease payments for office space amount to $2.426 million, with a total lease obligation of $1.738 million after interest[75] - The partnership cannot incur indebtedness exceeding $50,000 at any given time, excluding trade payables[76] - The partnership's distributions to unitholders are determined after all expenses, ensuring liquidity for operational costs[74]