Dorchester Minerals(US:DMLP)2023-05-03 16:00Financial Performance - For the three months ended March 31, 2023, net cash provided by operating activities increased by 36% compared to the same period in 2022, primarily due to higher NPI payment receipts[60]. - Cash receipts from Royalty Properties in Q1 2023 totaled $24.6 million, with approximately 76% reflecting sales from December 2022 through February 2023[62]. - Cash receipts from NPI during Q1 2023 amounted to $17.5 million, with approximately 31% reflecting sales from November 2022 through January 2023[63]. - As of March 31, 2023, cash and cash equivalents totaled $45.0 million, an increase from $40.8 million at December 31, 2022, indicating improved liquidity[69]. Sales Volumes and Prices - Royalty Properties natural gas sales volumes increased by 16% from 1,147 mmcf in Q1 2022 to 1,330 mmcf in Q1 2023, while oil sales volumes decreased by 18% from 369 mbbls to 302 mbbls[54]. - NPI natural gas sales volumes surged by 170%, from 320 mmcf in Q1 2022 to 864 mmcf in Q1 2023, and NPI oil sales volumes increased by 186%, from 94 mbbls to 269 mbbls[54]. - Average sales prices for Royalty Properties natural gas decreased by 33% to $3.01/mcf, and oil prices decreased by 15% to $68.48/bbl compared to Q1 2022[54]. - Average indicated prices for cash receipts attributable to Royalty Properties during Q1 2023 were $68.92/bbl for oil and $4.77/mcf for natural gas[62]. Operating Costs and Expenses - Operating costs decreased by 17% from Q1 2022 to Q1 2023, primarily due to lower production taxes linked to decreased oil sales volumes[58]. - Depreciation, depletion, and amortization expenses increased by 49% from Q1 2022 to Q1 2023, reflecting adjustments in oil and natural gas reserve estimates[59]. - General and administrative expenses rose by 34% from Q1 2022 to Q1 2023, mainly due to higher compensation and professional service fees[59]. Market Conditions and Risks - Demand and market prices for oil and natural gas remain strong, driven by increased energy use and a global shortage of oil due to sanctions on Russia[68]. - The company cannot predict future price volatility in the oil and natural gas market, which may impact its ability to fund distributions[68]. - The current economic environment remains volatile, and the ultimate impact of COVID-19 and the military conflict in Ukraine on liquidity and cash flows is uncertain[68]. - The company remains cautious about future cash flows due to potential declines in oil prices and increased operating costs[68]. - There have been no significant changes in exposure to market risk during the three months ended March 31, 2023[72]. Internal Controls and Governance - The principal executive officer and principal financial officer evaluated the effectiveness of disclosure controls and procedures, concluding they were effective[72]. - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2023, that materially affected internal controls[73]. - The company has not disclosed any significant changes to critical accounting policies and estimates since the 2022 Annual Report[71]. Liquidity and Future Outlook - The company expects to maintain sufficient liquidity for distributions to unitholders despite uncertainties from COVID-19, market volatility due to the Russian invasion of Ukraine, and rising inflation and interest rates[68].