Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, DC. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 000-50175

DORCHESTER MINERALS, L.P.

(Exact name of registrant as specified in its charter)

Delaware	81-0551518
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3838 Oak Lawn Avenue, Suite 300, Dallas, Texas 75219

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (214) 559-0300

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which

registered

Common Units Representing Limited

Partnership Interest

DMLP

NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

	Large accelerated filer ☒	Accelerated filer ☐	Non-accelerated filer ☐
	Smaller reporting company ☐	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of common units representing limited partnership interests outstanding as of August 3, 2023: 38,715,243

Table of Contents

TABLE OF CONTENTS

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS			1

PART I – FINANCIAL INFORMATION			1

	ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)	1

		CONDENSED CONSOLIDATED BALANCE SHEETS	2

		CONDENSED CONSOLIDATED INCOME STATEMENTS	3

		CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERSHIP CAPITAL	4

		CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	5

		NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	6

	ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	8

	ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	12

	ITEM 4.	CONTROLS AND PROCEDURES	12

PART II – OTHER INFORMATION			12

	ITEM 1.	LEGAL PROCEEDINGS	12

	ITEM 1A.	RISK FACTORS	12

	ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	12

	ITEM 5.	OTHER INFORMATION	12

	ITEM 6.	EXHIBITS	13

SIGNATURES			15

Table of Contents

DORCHESTER MINERALS, L.P.

(A Delaware Limited Partnership)

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

Statements included in this report that are not historical facts (including any statements concerning plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto), are forward-looking statements. These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “will,” “expect,” “anticipate,” “estimate,” “continue,” or other similar words. These statements discuss future expectations, contain projections of results of operations or of financial condition or state other forward-looking information. In this report, the terms “us,” “our,” “we,” and “its” are sometimes used as abbreviated references to the Partnership.

These forward-looking statements are made based upon management's current plans, expectations, estimates, assumptions and beliefs concerning future events impacting us and, therefore, involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements for a number of important reasons, including those discussed under “Item 1A – Risk Factors” in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2023, as amended by Amendment No. 1 to Annual Report on Form 10-K/A filed with the SEC on April 27, 2023 (the “Annual Report”) and in this report, in the Partnership’s other filings with the SEC and elsewhere in this report. Examples of such reasons include, but are not limited to, changes in the price or demand for oil and natural gas, public health crises including the worldwide coronavirus (COVID-19) outbreak beginning in early 2020 and its ongoing variants, changes in the operations on or development of our properties, changes in economic and industry conditions and changes in regulatory requirements (including changes in environmental requirements) and our financial position, business strategy and other plans and objectives for future operations.

You should read these statements carefully because they may discuss our expectations about our future performance, contain projections of our future operating results or our future financial condition, or state other forward-looking information. Before you invest, you should be aware that the occurrence of any of the events herein described in “Item 1A – Risk Factors” in the Partnership’s Annual Report and its other filings with the SEC and elsewhere in this report could substantially harm our business, results of operations and financial condition and that upon the occurrence of any of these events, the trading price of our common units could decline, and you could lose all or part of your investment.

PART I – FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

See attached financial statements on the following pages.

Table of Contents

DORCHESTER MINERALS, L.P.

(A Delaware Limited Partnership)

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

(Unaudited)

	June 30, 2023			December 31, 2022

ASSETS
Current assets
Cash and cash equivalents	$	35,324		$	40,754
Trade and other receivables		10,758			14,543
Net profits interest receivable - related party		5,305			7,170
Total current assets		51,387			62,467

Oil and natural gas properties (full cost method)		473,013			472,974
Accumulated full cost depletion		(372,656	)		(360,724	)
Total		100,357			112,250

Leasehold improvements		989			989
Accumulated amortization		(468	)		(422	)
Total		521			567

Operating lease right-of-use asset		860			959
Total assets	$	153,125		$	176,243

LIABILITIES AND PARTNERSHIP CAPITAL
Current liabilities
Accounts payable and other current liabilities	$	6,341		$	3,131
Operating lease liability		277			281
Total current liabilities		6,618			3,412

Operating lease liability		1,175			1,313
Total liabilities		7,793			4,725

Commitments and contingencies (Note 4)

Partnership capital
General Partner		(60	)		676
Unitholders		145,392			170,842
Total partnership capital		145,332			171,518
Total liabilities and partnership capital	$	153,125		$	176,243

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

DORCHESTER MINERALS, L.P.

(A Delaware Limited Partnership)

CONDENSED CONSOLIDATED INCOME STATEMENTS

(In Thousands, except per unit amounts)

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022

Operating revenues
Royalties	$	23,613	$	37,140	$	48,297	$	72,019
Net profits interest		5,830		9,013		20,777		14,483
Lease bonus and other		1,176		1,306		1,712		1,358

Total operating revenues		30,619		47,459		70,786		87,860

Costs and expenses
Operating, including production taxes		2,754		3,807		5,472		7,075
Depreciation, depletion and amortization		5,337		4,773		11,978		9,239
General and administrative		2,724		1,555		5,462		3,598

Total costs and expenses		10,815		10,135		22,912		19,912

Net income	$	19,804	$	37,324	$	47,874	$	67,948

Allocation of net income
General partner	$	656	$	1,253	$	1,416	$	2,335
Unitholders	$	19,148	$	36,071	$	46,458	$	65,613
Net income per common unit (basic and diluted)	$	0.50	$	0.96	$	1.21	$	1.76
Weighted average basic and diluted common units outstanding		38,372		37,555		38,372		37,275

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

DORCHESTER MINERALS, L.P.

(A Delaware Limited Partnership)

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERSHIP CAPITAL

(In Thousands)

(Unaudited)

	General Partner			Unitholders			Total			Unitholder Units
Three Months Ended June 30, 2022
Balance at April 1, 2022	$	1,209		$	162,118		$	163,327			37,555
Net income		1,253			36,071			37,324
Distributions ($0.753926 per Unit)		(965	)		(28,313	)		(29,278	)
Balance at June 30, 2022	$	1,497		$	169,876		$	171,373			37,555

Three Months Ended June 30, 2023
Balance at April 1, 2023	$	319		$	164,219		$	164,538			38,372
Net income		656			19,148			19,804
Distributions ($0.989656 per Unit)		(1,035	)		(37,975	)		(39,010	)
Balance at June 30, 2023	$	(60	)	$	145,392		$	145,332			38,372

	General Partner			Unitholders			Total			Unitholder Units
Six Months Ended June 30, 2022
Balance at January 1, 2022	$	982		$	141,428		$	142,410			36,985
Net income		2,335			65,613			67,948
Acquisition of assets for units		-			14,792			14,792			570
Distributions ($1.393213 per Unit)		(1,820	)		(51,957	)		(53,777	)
Balance at June 30, 2022	$	1,497		$	169,876		$	171,373			37,555

Six Months Ended June 30, 2023
Balance at January 1, 2023	$	676		$	170,842		$	171,518			38,372
Net income		1,416			46,458			47,874
Distributions ($1.873995 per Unit)		(2,152	)		(71,908	)		(74,060	)
Balance at June 30, 2023	$	(60	)	$	145,392		$	145,332			38,372

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

DORCHESTER MINERALS, L.P.

(A Delaware Limited Partnership)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

	Six Months Ended June 30,
	2023			2022

Net cash provided by operating activities	$	68,081		$	67,444

Cash flows provided by investing activities:
Net cash contributed in acquisitions of oil and natural gas properties		549			1,003

Cash flows used in financing activities:
Distributions paid to General Partner and unitholders		(74,060	)		(53,777	)

Increase (decrease) in cash and cash equivalents		(5,430	)		14,670
Cash and cash equivalents at beginning of period		40,754			28,306

Cash and cash equivalents at end of period	$	35,324		$	42,976


Non-cash investing and financing activities:
Fair value of common units issued for acquisition of oil and natural gas properties	$	-		$	14,792

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

DORCHESTER MINERALS, L.P.

(A Delaware Limited Partnership)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.	Business and Basis of Presentation

Description of the Business

Dorchester Minerals, L.P. (the “Partnership”) is a publicly traded Delaware limited partnership that commenced operations on January 31, 2003. Our business may be described as the acquisition, ownership and administration of Royalty Properties (which consists of producing and nonproducing mineral, royalty, overriding royalty, net profits, and leasehold interests located in 592 counties and parishes in 28 states (“Royalty Properties”)) and net profits overriding royalty interests (referred to as the Net Profits Interest, or “NPI”).

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Partnership have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements do not include all of the disclosures required for complete annual financial statements prepared in conformity with U.S. GAAP. Therefore, the accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Partnership’s Annual Report. The accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal and recurring adjustments unless indicated otherwise) that are, in the opinion of management, necessary for the fair presentation of our financial position and operating results for the interim period. Interim period results are not necessarily indicative of the results for the calendar year. For more information regarding limitations on the forward-looking statements contained herein, see page 1 of this Quarterly Report on Form 10-Q. Per unit information is calculated by dividing the income or loss applicable to holders of the Partnership’s common units by the weighted average number of units outstanding. The Partnership has no potentially dilutive securities and, consequently, basic and diluted income per unit do not differ.

The unaudited condensed consolidated financial statements include the accounts of the Partnership and its wholly-owned subsidiaries Dorchester Minerals Oklahoma LP, Dorchester Minerals Oklahoma GP, Inc., Maecenas Minerals LLP, Dorchester-Maecenas GP LLC, The Buffalo Co., A Limited Partnership, and DMLPTBC GP LLC. All significant intercompany balances and transactions have been eliminated in consolidation.

Recent Events

In January 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus (“COVID-19”) and the significant risks to the international community and economies as the virus spread globally beyond its point of origin. In March 2020, the WHO classified COVID-19 as a pandemic, based on the rapid increase in exposure globally, and thereafter, COVID-19 continued to spread throughout the U.S. and worldwide. Multiple variants emerged in 2021 and became highly transmissible, which contributed to pricing volatility during 2021 to date. While in May 2023, the WHO determined that COVID-19 is now an established and ongoing health issue which no longer constitutes a public health emergency of international concern, the financial results of companies in the oil and natural gas industry have been impacted materially as a result of changing market conditions. Such circumstances generally increase uncertainty in the Partnership’s accounting estimates.

In February 2022, Russian military forces invaded Ukraine, and sustained conflict and disruption in the region is likely. Although the length, impact and outcome of the ongoing military conflict in Ukraine continues to be highly unpredictable, this conflict could lead to significant market and other disruptions, including significant volatility in commodity prices and supply of energy resources along with instability in financial markets. As a result of the invasion, various economic and trade sanctions have been implemented by countries and private market participants on Russia which have resulted in a lower worldwide supply of oil and natural gas, contributing to a sharp increase in market prices for these commodities in the first half of 2022 followed by a slight softening in oil prices during the second half of 2022 due to higher inflation and rising interest rates. Despite the decline in oil prices during the first six months of 2023, demand and market prices for oil and natural gas remain resilient, due in part to global travel trending towards pre-COVID-19 levels and the recently announced OPEC+ production cuts. While oil prices are now consistent with price levels before the Russia-Ukraine conflict, potential further responses from Russia or other countries to the sanctions imposed on Russia, supply chain disruptions, tensions and military actions, could adversely affect the global economy, cause volatility in the financial markets and could adversely affect our business, financial condition and results of operations. We remain unable to predict events that may lead to future price volatility and the near-term energy outlook remains subject to heightened levels of uncertainty.

We are continuing to closely monitor the overall impact and the evolution of the COVID-19 pandemic, including the ongoing spread of any variants, along with future OPEC actions and the Russian invasion of Ukraine on all aspects of our business, including how these events may impact our future operations, financial results, liquidity, employees, and operators. While conditions have significantly improved with the increase in domestic vaccination programs, a reduction in global constraints and the reduced spread of COVID-19 overall, the long term impact of COVID-19 remains uncertain as responses to COVID-19 and newly emerging variants continue to evolve. Although the WHO in May 2023 determined that COVID-19 is now an established and ongoing health issue which no longer constitutes a public health emergency of international concern, additional actions may be required in response to the COVID-19 pandemic on a national, state, and local level by governmental authorities, and such actions may further adversely affect general and local economic conditions if there is a resurgence in the spread of the COVID-19. We cannot predict the long-term impact of these events on our liquidity, financial position, results of operations or cash flows due to uncertainties including the severity of COVID-19 or any of the ongoing variants, and the effect the virus will have on the demand for oil and natural gas. These situations remain fluid and unpredictable, and we are actively managing our response.

Table of Contents

2.	Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Partnership evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Partnership considers reasonable in each circumstance. Any effects on the Partnership’s business, financial position, or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Although the Partnership believes these estimates are reasonable, actual results could differ from those estimates.

Recent Accounting Pronouncements

Recently Adopted Pronouncements

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326)” (“ASU 2016-13”), which changed how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard replaced the incurred loss approach with an expected loss model for instruments measured at amortized cost. As provided by ASU 2019-10, Financial Instruments - Credit Losses (Topic 326), ASU 2016-13 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2022. The Partnership adopted ASU 2016-13 using the modified retrospective approach, effective January 1, 2023. The adoption of this update did not have a material impact on the Partnership’s financial position, results of operations, cash flows or disclosures.

Accounting Pronouncements Not Yet Adopted

The Partnership considers the applicability and impact of all ASUs. There are no recent accounting pronouncements not yet adopted that are expected to have a material effect on the Partnership upon adoption.

3.	Acquisitions for Units

On July 12, 2023, pursuant to a non-taxable contribution and exchange agreement with multiple unrelated third parties, the Partnership acquired mineral and royalty interests totaling approximately 900 net royalty acres located in 13 counties and parishes across Louisiana, New Mexico, and Texas in exchange for 343,750 common units representing limited partnership interests in the Partnership valued at $11.0 million and issued pursuant to the Partnership’s registration statement on Form S-4.

On September 30, 2022, pursuant to a non-taxable contribution and exchange agreement with Excess Energy, LLC, a Texas limited liability company (“Excess”), the Partnership acquired mineral, royalty and overriding royalty interests totaling approximately 2,100 net royalty acres located in 12 counties across Texas and New Mexico in exchange for 816,719 common units representing limited partnership interests in the Partnership valued at $20.4 million and issued pursuant to the Partnership's registration statement on Form S-4. We believe that the acquisition is considered complementary to our business. The transaction was accounted for as an acquisition of assets under U.S. GAAP. Accordingly, the cost of the acquisition was allocated on a relative fair value basis and transaction costs were capitalized as a component of the cost of the assets acquired. Final settlement net cash received, net of capitalized transaction costs paid, of $0.5 million is included in net cash contributed in acquisitions on the condensed consolidated statement of cash flows for the six months ended June 30, 2023. The condensed consolidated balance sheet as of December 31, 2022 includes $19.0 million of net oil and natural gas properties acquired in the transaction. Net property additions for the year ended December 31, 2022 includes $1.8 million of unproved properties acquired that were recorded to the oil and natural gas properties full cost pool, thereby accelerating the costs subject to depletion.

On March 31, 2022, pursuant to a non-taxable contribution and exchange agreement with multiple unrelated third parties, the Partnership acquired mineral and royalty interests representing approximately 3,600 net royalty acres located in 13 counties across Colorado, Louisiana, Ohio, Oklahoma, Pennsylvania, West Virginia and Wyoming in exchange for 570,000 common units representing limited partnership interests in the Partnership valued at $14.8 million and issued pursuant to the Partnership’s registration statement on Form S-4. We believe that the acquisition is considered complementary to our business. The transaction was accounted for as an acquisition of assets under U.S. GAAP. Accordingly, the cost of the acquisition was allocated on a relative fair value basis and transaction costs were capitalized as a component of the cost of the assets acquired. Contributed cash delivered at closing and final settlement net cash received, net of capitalized transaction costs paid, of $0.9 million is included in net cash contributed in acquisitions on the condensed consolidated statement of cash flows for the six months ended June 30, 2022. The condensed consolidated balance sheet as of December 31, 2022 includes $14.0 million of net proved oil and natural gas properties acquired in the transaction.

4.	Commitments and Contingencies

The Partnership and Dorchester Minerals Operating LP, a Delaware limited partnership owned directly and indirectly by our General Partner, are involved in legal and/or administrative proceedings arising in the ordinary course of their businesses, none of which have predictable outcomes, and none of which are believed to have any significant effect on our consolidated financial position, cash flows, or operating results.

5.	Distributions to Holders of Common Units

The distribution for the second quarter of 2023 will be paid on 38,715,243 common units. The second quarter 2023 distribution of $0.676818 per common unit will be paid on August 10, 2023. The distribution for the second quarter of 2022 was paid on 37,554,774 common units. Our partnership agreement requires the third quarter 2023 distribution to be paid by November 14, 2023.

Table of Contents

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion contains forward-looking statements. For a description of limitations inherent in forward-looking statements, see page 1 of this Quarterly Report on Form 10-Q.

Objective

This discussion, which presents our results of operations for the three and six months ended June 30, 2023 and June 30, 2022, should be read in conjunction with our unaudited condensed consolidated financial statements and the accompanying notes. We intend for this discussion to provide the reader with information that will assist in understanding our financial statements, the changes in certain key items in those financial statements from period to period, and the primary factors that accounted for those changes.

Overview

We own producing and nonproducing mineral, royalty, overriding royalty, net profits and leasehold interests. We refer to these interests as the Royalty Properties. We currently own Royalty Properties in 592 counties and parishes in 28 states.

As of June 30, 2023, we own a net profits overriding royalty interest (referred to as the Net Profits Interest, or “NPI”) in various properties owned by Dorchester Minerals Operating LP (the “Operating Partnership”), a Delaware limited partnership owned directly and indirectly by our General Partner. We receive monthly payments from the NPI equaling 96.97% of the net profits actually realized by the Operating Partnership from these properties in the preceding month. In the event that costs, including budgeted capital expenditures, exceed revenues on a cash basis in a given month for properties subject to the Net Profits Interest, no payment is made, and any deficit is accumulated and reflected in the following month's calculation of net profit.

In the event the NPI has a deficit of cumulative revenue versus cumulative costs, the deficit will be borne solely by the Operating Partnership.

From a cash perspective, as of June 30, 2023, the NPI was in a surplus position and had outstanding capital commitments, primarily in the Bakken region, equaling cash on hand of $6.3 million.

Commodity Price Risks

The pricing of oil and natural gas sales is primarily determined by supply and demand in the global marketplace and can fluctuate considerably. As a royalty owner and non-operator, we have extremely limited access to timely information and no operational control over the volumes of oil and natural gas produced and sold or the terms and conditions on which such volumes are marketed and sold.

Our profitability is affected by oil and natural gas market prices. Oil and natural gas market prices have fluctuated significantly in recent years in response to changes in the supply and demand for oil and natural gas in the market, along with domestic and international political and economic conditions.

In January 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus (“COVID-19”) and the significant risks to the international community and economies as the virus spread globally beyond its point of origin. In March 2020, the WHO classified COVID-19 as a pandemic, based on the rapid increase in exposure globally, and thereafter, COVID-19 continued to spread throughout the U.S. and worldwide. In addition, in early March 2020, oil prices dropped sharply and continued to decline, briefly reaching negative levels, as a result of multiple factors affecting the supply and demand in global oil and natural gas markets, including (i) actions taken by OPEC members and other exporting nations impacting commodity price and production levels and (ii) a significant decrease in demand due to the COVID-19 pandemic. Additionally, multiple variants emerged in 2021 and became highly transmissible, which contributed to additional pricing and demand volatility during 2021 to date. However, conditions have significantly improved since 2022 with the increase in domestic vaccination programs, a reduction in global constraints and a reduced spread of COVID-19 overall and in May 2023, the WHO determined that COVID-19 is now an established and ongoing health issue which no longer constitutes a public health emergency of international concern. Nevertheless, the long term impact of COVID-19 remains uncertain.

Furthermore, in February 2022, Russian military forces invaded Ukraine leading to various trade and economic sanctions being implemented by countries and private market participants on Russia which have resulted in a global supply shortage of oil and natural gas.

As a result of the lifting of certain restrictions put in place in response to COVID-19 and the global supply shortage of oil and natural gas caused by the Russian invasion of Ukraine, in addition to other changing market conditions, oil and natural gas market prices sharply increased during the first half of 2022 followed by a slight softening in oil prices during the second half of 2022 due to higher inflation and rising interest rates. During the first quarter of 2023, with the exception of a decline of oil prices in March in reaction to the U.S. regional bank instability, oil prices remained generally in line with those seen in the later portion of 2022. Despite the decline in oil prices during the first six months of 2023, demand and market prices for oil and natural gas remain resilient, due in part to global travel trending towards pre-COVID-19 levels and the recently announced OPEC+ production cuts. However, commodity prices have historically been volatile, and we cannot predict events which may lead to future fluctuations in these prices. Although the WHO in May 2023 determined that COVID-19 is now an established and ongoing health issue which no longer constitutes a public health emergency of international concern, additional actions may be required in response to the COVID-19 pandemic on a national, state, and local level by governmental authorities, and such actions may further adversely affect general and local economic conditions if there is a resurgence in the spread of the COVID-19. The long term effects of COVID-19 remain uncertain. Similarly, the length, impact and outcome of the ongoing military conflict between Russia and Ukraine is highly unpredictable and could lead to significant market disruptions and increased volatility in oil and natural gas prices and supply of energy resources along with instability in the global commodity and financial markets.

Table of Contents

Results of Operations

Acquisitions for Units

On September 30, 2022, pursuant to a non-taxable contribution and exchange agreement with Excess, the Partnership acquired mineral, royalty and overriding royalty interests totaling approximately 2,100 net royalty acres located in 12 counties across Texas and New Mexico in exchange for 816,719 common units representing limited partnership interests in the Partnership valued at $20.4 million and issued pursuant to the Partnership's registration statement on Form S-4. We believe that the acquisition is considered complementary to our business. The transaction was accounted for as an acquisition of assets under U.S. GAAP. Accordingly, the cost of the acquisition was allocated on a relative fair value basis and transaction costs were capitalized as a component of the cost of the assets acquired. Final settlement net cash received, net of capitalized transaction costs paid, of $0.5 million is included in net cash contributed in acquisitions on the condensed consolidated statement of cash flows for the six months ended June 30, 2023.

On March 31, 2022, pursuant to a non-taxable contribution and exchange agreement with multiple unrelated third parties, the Partnership acquired mineral and royalty interests representing approximately 3,600 net royalty acres located in 13 counties across Colorado, Louisiana, Ohio, Oklahoma, Pennsylvania, West Virginia and Wyoming in exchange for 570,000 common units representing limited partnership interests in the Partnership valued at $14.8 million and issued pursuant to the Partnership’s registration statement on Form S-4. We believe that the acquisition is considered complementary to our business. The transaction was accounted for as an acquisition of assets under U.S. GAAP. Accordingly, the cost of the acquisition was allocated on a relative fair value basis and transaction costs were capitalized as a component of the cost of the assets acquired. Contributed cash delivered at closing and final settlement net cash received, net of capitalized transaction costs paid, of $0.9 million is included in net cash contributed in acquisitions on the condensed consolidated statement of cash flows for the six months ended June 30, 2022.

Three and Six Months Ended June 30, 2023 as compared to Three and Six Months Ended June 30, 2022

Our period-to-period changes in net income and cash flows from operating activities are principally determined by changes in oil and natural gas sales volumes and prices, and to a lesser extent, by capital expenditures deducted under the NPI calculation. Our portion of oil and natural gas sales volumes and average sales prices are shown in the following table. Oil sales volumes include volumes attributable to natural gas liquids and oil sales prices include natural gas liquids prices combined by volumetric proportions.

	Three Months Ended							Six Months Ended
	June 30,							June 30,
Accrual basis sales volumes:	2023		2022		% Change			2023		2022		% Change
Royalty Properties natural gas sales (mmcf)		1,153		1,105		4	%		2,483		2,252		10	%
Royalty Properties oil sales (mbbls)		335		318		5	%		637		687		(7	%)
NPI natural gas sales (mmcf)		475		353		35	%		1,339		673		99	%
NPI oil sales (mbbls)		158		139		14	%		427		233		83	%

Accrual basis average sales price:
Royalty Properties natural gas sales ($/mcf)	$	1.78	$	6.46		(72	%)	$	2.44	$	5.46		(55	%)
Royalty Properties oil sales ($/bbl)	$	64.44	$	94.52		(32	%)	$	66.36	$	86.96		(24	%)
NPI natural gas sales ($/mcf)	$	2.08	$	7.67		(73	%)	$	2.92	$	6.51		(55	%)
NPI oil sales ($/bbl)	$	64.51	$	84.24		(23	%)	$	68.32	$	82.48		(17	%)

Table of Contents

Both oil and natural gas sales price changes reflected in the table above resulted from changing market conditions.

The increase in oil sales volumes attributable to our Royalty Properties from the second quarter of 2022 to the same period of 2023 is primarily a result of higher suspense releases on new wells in the Permian Basin and Bakken region, partially offset by decreased production and lower suspense releases on new wells in the Rockies. The decrease in oil sales volumes attributable to our Royalty Properties from the first six months of 2022 to the same period of 2023 is primarily a result of decreased production in the Permian Basin, Rockies, and Bakken region and lower suspense releases on new wells in the Rockies, partially offset by higher suspense releases on new wells in the Permian Basin and Bakken region. The increase in natural gas sales volumes attributable to our Royalty Properties from the second quarter of 2022 to the same period of 2023 is primarily a result of increased production and higher suspense releases on new wells in the Permian Basin and South Texas, partially offset by decreased production in the Fayetteville Shale, Rockies, and Southeast. The increase in natural gas sales volumes attributable to our Royalty Properties from the first six months of 2022 to the same period of 2023 is primarily a result of higher suspense releases on new wells in the Permian Basin, South Texas, and East Texas, partially offset by decreased production in the Bakken region and Southeast and lower suspense releases on new wells in the Rockies and Southeast.

The increases in oil and natural gas sales volumes attributable to our NPI properties from the second quarter of 2022 to the same period of 2023 are primarily a result of increased production in the Permian Basin and higher suspense releases on new wells in the Bakken region, partially offset by decreased production in the Bakken region and lower suspense releases on new wells in the Permian Basin. The increase in oil and natural gas sales volumes attributable to our NPI properties from the first six months of 2022 to the same period of 2023 is primarily a result of higher suspense releases on new wells in the Permian Basin in the first quarter of 2023 and increased production in the Permian Basin year to date, partially offset by decreased production in the Bakken region.

Operating costs, including production taxes, decreased 28% from the second quarter of 2022 to the same period of 2023 and 23% from the first six months of 2022 to the same period of 2023. The decreases are primarily a result of lower proportionate production taxes due to lower Royalty Properties oil and natural gas sales prices.

Depreciation, depletion and amortization increased 12% from the second quarter of 2022 to the same period of 2023 and 30% from the first six months of 2022 to the same period of 2023. We adjust our depletion rate each quarter for significant changes in our estimates of oil and natural gas reserves, including recent acquisitions.

General and administrative expenses increased 75% from the second quarter of 2022 to the same period of 2023 and 52% from the first six months of 2022 to the same period of 2023. The increases are primarily a result of higher compensation expenses due to market adjustments, increased professional service fees, and one-time, non-recurring professional services expenses of $1.2 million related to an unsuccessful acquisition in the second quarter of 2023.

Net cash provided by operating activities remained consistent from the first six months of 2022 to the same period of 2023 primarily due to higher NPI payment receipts, partially offset by lower Royalties revenue receipts, net of production taxes and operating expenses.

In an effort to provide the reader with information concerning prices of oil and natural gas sales that correspond to our quarterly distributions, management calculates the average price by dividing gross revenues received by the net volumes of the corresponding product without regard to the timing of the production to which such sales may be attributable. This “indicated price” does not necessarily reflect the contract terms for such sales and may be affected by transportation costs, location differentials, and quality and gravity adjustments. While the relationship between our cash receipts and the timing of the production of oil and natural gas may be described generally, actual cash receipts may be materially impacted by purchasers’ release of suspended funds and by purchasers’ prior period adjustments.

Cash receipts attributable to our Royalty Properties during the second quarter of 2023 totaled $23.2 million. Approximately 71% of these receipts reflect oil sales during March 2023 through May 2023 and natural gas sales during February 2023 through April 2023, and approximately 29% from prior sales periods. The average indicated prices for oil and natural gas sales cash receipts attributable to the Royalty Properties during the second quarter of 2023 were $67.54/bbl and $2.23/mcf, respectively.

Cash receipts attributable to our Net Profits Interest during the second quarter of 2023 totaled $5.1 million. Approximately 65% of these receipts reflect oil and natural gas sales during February 2023 through April 2023, and approximately 35% from prior sales periods. The average indicated prices for oil and natural gas sales cash receipts attributable to the NPI properties during the second quarter of 2023 were $68.19/bbl and $2.97/mcf, respectively.

Table of Contents

Liquidity and Capital Resources

Capital Resources

Our primary sources of capital, on both a short-term and long-term basis, are our cash flows from the Royalty Properties and the NPI. Our partnership agreement requires that we distribute quarterly an amount equal to all funds that we receive from Royalty Properties and NPIs (other than cash proceeds received by the Partnership from a public or private offering of securities of the Partnership) less certain expenses and reasonable reserves. Additional cash requirements include the payment of oil and natural gas production and property taxes not otherwise deducted from gross production revenues and general and administrative expenses incurred on our behalf and allocated to the Partnership in accordance with the partnership agreement. Because the distributions to our unitholders are, by definition, determined after the payment of all expenses actually paid by us, the only cash requirements that may create liquidity concerns for us are the payment of expenses. Because many of these expenses vary directly with oil and natural gas sales prices and volumes, we anticipate that sufficient funds will be available at all times for payment of these expenses. See Note 5 to the unaudited condensed consolidated financial statements included in “Item 1 – Financial Statements” of this Quarterly Report on Form 10-Q for additional information regarding cash distributions to unitholders.

Contractual Obligations

The Partnership leases its office space at 3838 Oak Lawn Avenue, Suite 300, Dallas, Texas, through an operating lease (the “Office Lease”). The third amendment to our Office Lease was executed in April 2017 for a term of 129 months, beginning June 1, 2018 and expiring in 2029. Under the third amendment to the Office Lease, monthly rental payments range from $25,000 to $30,000. Future maturities of Office Lease liabilities representing monthly cash rental payment obligations as of June 30, 2023 are summarized as follows:

	In Thousands
2023	$	175
2024		356
2025		362
2026		368
2027		374
Thereafter		443
Total lease payments		2,078
Less amount representing interest		(626	)
Total lease obligation	$	1,452

We are not directly liable for the payment of any exploration, development or production costs. We do not have any transactions, arrangements or other relationships that could materially affect our liquidity or the availability of capital resources. We have not guaranteed the debt of any other party, nor do we have any other arrangements or relationships with other entities that could potentially result in unconsolidated debt.

Pursuant to the terms of the partnership agreement, we cannot incur indebtedness, other than trade payables, (i) in excess of $50,000 in the aggregate at any given time or (ii) which would constitute “acquisition indebtedness” (as defined in Section 514 of the Internal Revenue Code of 1986, as amended).

We currently expect to have sufficient liquidity to fund our distributions to unitholders and operations despite potential material uncertainties that may impact us as a result of the ongoing military conflict between Russian and Ukraine and the rise during 2022 and 2023 in inflation and interest rates. Although demand and market prices for oil and natural gas remain resilient due in part to global travel trending towards pre-COVID-19 levels and the recently announced OPEC+ production cuts, we cannot predict events that may lead to future price volatility. Our ability to fund future distributions to unitholders may be affected by the prevailing economic conditions in the oil and natural gas market and other financial and business factors, including the possible resurgence of COVID-19 and any ongoing variants, along with the military conflict between Russia and Ukraine which are beyond our control. If market conditions were to change due to declines in oil prices or uncertainty created by a resurgence of COVID-19 or any ongoing variants and our revenues were reduced significantly or our operating costs were to increase significantly, our cash flows and liquidity could be reduced. Despite the significant improvement in conditions since the beginning of the COVID-19 pandemic, the current economic environment is volatile, and therefore, we cannot predict the ultimate long-term impact that COVID-19 or the ongoing military conflict between Russia and Ukraine will have on our liquidity or cash flows.

Liquidity and Working Capital

Cash and cash equivalents totaled $35.3 million at June 30, 2023 and $40.8 million at December 31, 2022.

Critical Accounting Policies and Estimates

As of June 30, 2023, there have been no significant changes to our critical accounting policies and related estimates previously disclosed in our Annual Report.

Table of Contents

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no significant changes in our exposure to market risk during the three months ended June 30, 2023. For a discussion of our exposure to market risk, refer to Item 7A of Part I of the Partnership’s Annual Report for the year ended December 31, 2022.

ITEM 4.

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, our principal executive officer and principal financial officer carried out an evaluation of the effectiveness of our disclosure controls and procedures. Based on their evaluation, they have concluded that our disclosure controls and procedures were effective.

Changes in Internal Control

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934) during the quarter ended June 30, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

The Partnership and the Operating Partnership are involved in legal and/or administrative proceedings arising in the ordinary course of their businesses, none of which have predictable outcomes, and none of which are believed to have any significant effect on consolidated financial position, cash flows, or operating results.

ITEM 1A.

RISK FACTORS

There have been no material changes to the Partnership’s risk factors as disclosed in Item 1A of Part I of the Partnership’s Annual Report for the year ended December 31, 2022.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

Period			(a) Total Number of Units Purchased			(b) Average Price Paid per Unit			(c) Total Number of Units Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number of Units that May Yet Be Purchased Under the Plans or Programs
April 1, 2023	–	April 30, 2023		-				N/A		-		112,777	(1)
May 1, 2023	–	May 31, 2023		10,000	(2)		$	28.53		10,000		102,777	(1)
June 1, 2023	–	June 30, 2023		5,000	(2)		$	29.10		5,000		97,777	(1)
Total				15,000			$	28.72		15,000		97,777	(1)

(1)

The number of common units that Dorchester Minerals Management LP may grant under the Dorchester Minerals Management LP Equity Incentive Program, as amended and restated as of October 20, 2022, which was approved by our common unitholders on May 20, 2015 (the “Equity Incentive Program”), each fiscal year may not exceed 0.333% of the number of common units outstanding at the beginning of the fiscal year. In 2023, the maximum number of common units that could be purchased under the Equity Incentive Program is 127,777 common units.

(2)

Open-market purchases by the Operating Partnership, an affiliate of the Partnership, pursuant to a Rule 10b5-1 plan adopted on November 8, 2022 for the purpose of satisfying equity awards to be granted pursuant to the Equity Incentive Program.

ITEM 5.

OTHER INFORMATION

Annual Meeting

The 2023 Annual Meeting of Limited Partners for the Partnership is tentatively scheduled to be held at 2 p.m. Central Time on October 4, 2023, which date is subject to change and is more than 30 days from the one-year anniversary of the date on which the 2022 Annual Meeting of the Limited Partners took place. The Annual Meeting will be held in a live virtual meeting format only, via webcast, at www.virtualshareholdermeeting.com/DMLP2023. The proxy rules promulgated by the SEC under the Securities Exchange Act of 1934 require the Partnership to inform unitholders of such change in date in addition to the new deadline for unitholder proposals in the Partnership’s earliest possible Quarterly Report on Form 10-Q, or, if impracticable, by any means reasonably calculated to inform unitholders. Accordingly, the Partnership hereby notifies our unitholders that unitholder proposals for its 2023 Annual Meeting must be received at our principal executive office at 3838 Oak Lawn Avenue, Suite 300, Dallas, Texas 75219-4541, addressed to our general partner no later than August 15, 2023 (which the Partnership has determined to be a reasonable time before it expects to begin to print and distribute its proxy materials prior to the Annual Meeting).

Rule 10b5-1 Trading Plans

During the quarter and six months ended June 30, 2023, none of our executive officers or directors adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of any “Non-Rule 10b5-1 trading arrangement.”

Table of Contents

ITEM 6.

EXHIBITS

Number	Description
3.1	Certificate of Limited Partnership of Dorchester Minerals, L.P. (incorporated by reference to Exhibit 3.1 to Dorchester Minerals’ Registration Statement on Form S-4, Registration Number 333-88282)

3.2	Amended and Restated Agreement of Limited Partnership of Dorchester Minerals, L.P. (incorporated by reference to Exhibit 3.2 to Dorchester Minerals’ Annual Report on Form 10-K filed for the year ended December 31, 2002)

3.3	Amendment No. 1 to Amended and Restated Partnership Agreement of Dorchester Minerals, L.P. (incorporated by reference to Exhibit 3.1 to Dorchester Minerals’ Current Report on Form 8-K filed with the SEC on December 22, 2017)

3.4	Amendment No. 2 to Amended and Restated Partnership Agreement of Dorchester Minerals, L.P. (incorporated by reference to Exhibit 3.4 to Dorchester Minerals’ Quarterly Report on Form 10-Q filed with the SEC on August 6, 2018)

3.5	Certificate of Limited Partnership of Dorchester Minerals Management LP (incorporated by reference to Exhibit 3.4 to Dorchester Minerals’ Registration Statement on Form S-4, Registration Number 333-88282)

3.6	Amended and Restated Limited Partnership Agreement of Dorchester Minerals Management LP (incorporated by reference to Exhibit 3.4 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)

3.7	Certificate of Formation of Dorchester Minerals Management GP LLC (incorporated by reference to Exhibit 3.7 to Dorchester Minerals’ Registration Statement on Form S-4, Registration Number 333-88282)

3.8	Amended and Restated Limited Liability Company Agreement of Dorchester Minerals Management GP LLC (incorporated by reference to Exhibit 3.6 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)

3.9	Certificate of Formation of Dorchester Minerals Operating GP LLC (incorporated by reference to Exhibit 3.10 to Dorchester Minerals’ Registration Statement on Form S-4, Registration Number 333-88282)

3.10	Limited Liability Company Agreement of Dorchester Minerals Operating GP LLC (incorporated by reference to Exhibit 3.11 to Dorchester Minerals’ Registration Statement on Form S-4, Registration Number 333-88282)

3.11	Certificate of Limited Partnership of Dorchester Minerals Operating LP (incorporated by reference to Exhibit 3.12 to Dorchester Minerals’ Registration Statement on Form S-4, Registration Number 333-88282)

3.12	Amended and Restated Agreement of Limited Partnership of Dorchester Minerals Operating LP (incorporated by reference to Exhibit 3.10 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)

3.13	Certificate of Limited Partnership of Dorchester Minerals Oklahoma LP (incorporated by reference to Exhibit 3.11 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)

3.14	Agreement of Limited Partnership of Dorchester Minerals Oklahoma LP (incorporated by reference to Exhibit 3.12 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)

3.15	Certificate of Incorporation of Dorchester Minerals Oklahoma GP, Inc. (incorporated by reference to Exhibit 3.13 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)

3.16	Bylaws of Dorchester Minerals Oklahoma GP, Inc. (incorporated by reference to Exhibit 3.14 to Dorchester Minerals’ Annual Report on Form 10-K for the year ended December 31, 2002)

31.1*	Certification of Chief Executive Officer of the Partnership pursuant to Rule 13a-14(a) / 15d-14(a) of the Securities Exchange Act of 1934

31.2*	Certification of Chief Financial Officer of the Partnership pursuant to Rule 13a-14(a) / 15d-14(a) of the Securities Exchange Act of 1934

32.1**	Certification of Chief Executive Officer and Chief Financial Officer of the Partnership pursuant to 18 U.S.C. Sec. 1350

Table of Contents

101.INS*	XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH*	Inline XBRL Taxonomy Extension Schema Document

101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*	Inline XBRL Taxonomy Extension Definition Document

101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

	* Filed herewith
	**Furnished herewith

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

DORCHESTER MINERALS, L.P.

	By:	/s/ Bradley Ehrman
		Bradley Ehrman
Date: August 3, 2023		Chief Executive Officer

	By:	/s/ Leslie Moriyama
		Leslie Moriyama
Date: August 3, 2023		Chief Financial Officer

Exhibit 31.1

CERTIFICATIONS

I, Bradley Ehrman, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Dorchester Minerals, L.P.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


	/s/	Bradley Ehrman
		Bradley Ehrman
Date: August 3, 2023		Chief Executive Officer of
		Dorchester Minerals, L.P.

Exhibit 31.2

I, Leslie Moriyama, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Dorchester Minerals, L.P.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

5.	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

	/s/	Leslie Moriyama
		Leslie Moriyama
Date: August 3, 2023		Chief Financial Officer of
		Dorchester Minerals, L.P.

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the accompanying Quarterly Report of Dorchester Minerals, L.P., (the "Partnership") on Form 10-Q for the period ended June 30, 2023 (the "Report”), each of the undersigned officers of the Partnership, hereby certifies that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

	/s/	Bradley Ehrman
		Bradley Ehrman
Date: August 3, 2023		Chief Executive Officer

	/s/	Leslie Moriyama
		Leslie Moriyama
Date: August 3, 2023		Chief Financial Officer

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2023	Aug. 03, 2023
Document Information [Line Items]
Entity Central Index Key	0001172358
Entity Registrant Name	Dorchester Minerals, L.P.
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	000-50175
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-0551518
Entity Address, Address Line One	3838 Oak Lawn Avenue, Suite 300
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75219
City Area Code	214
Local Phone Number	559-0300
Title of 12(b) Security	Common Units Representing Limited Partnership Interest
Trading Symbol	DMLP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		38,715,243

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 35,324	$ 40,754
Trade and other receivables	10,758	14,543
Total current assets	51,387	62,467
Oil and natural gas properties (full cost method)	473,013	472,974
Accumulated full cost depletion	(372,656)	(360,724)
Total	100,357	112,250
Operating lease right-of-use asset	860	959
Total assets	153,125	176,243
Current liabilities
Accounts payable and other current liabilities	6,341	3,131
Operating lease liability	277	281
Total current liabilities	6,618	3,412
Operating lease liability	1,175	1,313
Total liabilities	7,793	4,725
Partnership capital
General Partner	(60)	676
Unitholders	145,392	170,842
Total partnership capital	145,332	171,518
Total liabilities and partnership capital	153,125	176,243
Leasehold Improvements [Member]
Current assets
Leasehold improvements	989	989
Accumulated amortization	(468)	(422)
Total	521	567
Related Party [Member]
Current assets
Net profits interest receivable - related party	$ 5,305	$ 7,170

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating revenues
Operating revenues	$ 30,619	$ 47,459	$ 70,786	$ 87,860
Costs and expenses
Operating, including production taxes	2,754	3,807	5,472	7,075
Depreciation, depletion and amortization	5,337	4,773	11,978	9,239
General and administrative	2,724	1,555	5,462	3,598
Total costs and expenses	10,815	10,135	22,912	19,912
Net income	19,804	37,324	47,874	67,948
Allocation of net income
General partner	656	1,253	1,416	2,335
Unitholders	$ 19,148	$ 36,071	$ 46,458	$ 65,613
Net income per common unit (basic and diluted) (in dollars per share)	$ 0.50	$ 0.96	$ 1.21	$ 1.76
Weighted average basic and diluted common units outstanding (in shares)	38,372	37,555	38,372	37,275
Royalties [Member]
Operating revenues
Operating revenues	$ 23,613	$ 37,140	$ 48,297	$ 72,019
Net Profit Interests [Member]
Operating revenues
Operating revenues	5,830	9,013	20,777	14,483
Lease Bonus and Other [Member]
Operating revenues
Operating revenues	$ 1,176	$ 1,306	$ 1,712	$ 1,358

Condensed Consolidated Statements of Changes in Partnership Capital (Unaudited) - USD ($) shares in Thousands, $ in Thousands	General Partner [Member]	Limited Partner [Member]	Total
Balance at Dec. 31, 2021	$ 982	$ 141,428	$ 142,410
Balance (in shares) at Dec. 31, 2021		36,985
Net income	2,335	$ 65,613	67,948
Distributions	(1,820)	(51,957)	(53,777)
Acquisition of assets for units	0	$ 14,792	14,792
Acquisition of assets for units (in shares)		570
Balance at Jun. 30, 2022	1,497	$ 169,876	171,373
Balance (in shares) at Jun. 30, 2022		37,555
Balance at Mar. 31, 2022	1,209	$ 162,118	163,327
Balance (in shares) at Mar. 31, 2022		37,555
Net income	1,253	$ 36,071	37,324
Distributions	(965)	(28,313)	(29,278)
Balance at Jun. 30, 2022	1,497	$ 169,876	171,373
Balance (in shares) at Jun. 30, 2022		37,555
Balance at Dec. 31, 2022	676	$ 170,842	171,518
Balance (in shares) at Dec. 31, 2022		38,372
Net income	1,416	$ 46,458	47,874
Distributions	(2,152)	(71,908)	(74,060)
Balance at Jun. 30, 2023	(60)	$ 145,392	145,332
Balance (in shares) at Jun. 30, 2023		38,372
Balance at Mar. 31, 2023	319	$ 164,219	164,538
Balance (in shares) at Mar. 31, 2023		38,372
Net income	656	$ 19,148	19,804
Distributions	(1,035)	(37,975)	(39,010)
Balance at Jun. 30, 2023	$ (60)	$ 145,392	$ 145,332
Balance (in shares) at Jun. 30, 2023		38,372

Condensed Consolidated Statements of Changes in Partnership Capital (Unaudited) (Parentheticals) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Limited Partner [Member]
Distributions, per unit (in dollars per share)	$ 0.989656	$ 0.753926	$ 1.873995	$ 1.393213

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Net cash provided by operating activities	$ 68,081	$ 67,444
Cash flows provided by investing activities:
Net cash contributed in acquisitions of oil and natural gas properties	549	1,003
Cash flows used in financing activities:
Distributions paid to General Partner and unitholders	(74,060)	(53,777)
Increase (decrease) in cash and cash equivalents	(5,430)	14,670
Cash and cash equivalents at beginning of period	40,754	28,306
Cash and cash equivalents at end of period	35,324	42,976
Non-cash investing and financing activities:
Fair value of common units issued for acquisition of oil and natural gas properties	$ 0	$ 14,792

Note 1 - Business and Basis of Presentation

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Basis of Presentation and Significant Accounting Policies [Text Block]

DORCHESTER MINERALS, L.P.

(A Delaware Limited Partnership)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.	Business and Basis of Presentation

Description of the Business

Basis of Presentation

Recent Events

Note 2 - Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Significant Accounting Policies [Text Block]

2.	Summary of Significant Accounting Policies

Use of Estimates

Recent Accounting Pronouncements

Recently Adopted Pronouncements

Accounting Pronouncements Not Yet Adopted

Note 3 - Acquisitions for Units

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Acquisition of Producing and Nonproducing Royalty and Mineral Rights [Text Block]

3.	Acquisitions for Units

Note 4 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

4.	Commitments and Contingencies

Note 5 - Distributions to Holders of Common Units

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Partners' Capital Notes Disclosure [Text Block]

5.	Distributions to Holders of Common Units

Item 5 - Other Information

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Issuer Rule 10b5-1, Material Terms [Text Block]

ITEM 5.

OTHER INFORMATION

Annual Meeting

Rule 10b5-1 Trading Plans

Note 1 - Business and Basis of Presentation (Details Textual) shares in Thousands	6 Months Ended
	Jun. 30, 2023 shares
Number Of Counties In Which Entity Operates	592
Number of States in which Entity Operates	28
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	0

Note 2 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands	Jun. 30, 2023 USD ($)
Accounts Receivable, Allowance for Credit Loss, Current	$ 0

Note 3 - Acquisitions for Units (Details Textual) $ in Thousands				6 Months Ended		12 Months Ended
	Jul. 12, 2023 USD ($) a shares	Sep. 30, 2022 USD ($) a shares	Mar. 31, 2022 USD ($) a shares	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Number Of Counties In Which Entity Operates				592
Asset Acquisition Consideration Transferred Royalty and Mineral Revenue Received				$ 549	$ 1,003
Oil and Gas Property, Full Cost Method, Net, Total				100,357		$ 112,250
Subsequent Event [Member]
Asset Acquisition, Consideration Transferred, Equity Interest Issued and Issuable	$ 11,000
dmlp_Mineral And Royalty Interest [Member] \| Partnership Interest [Member]
Asset Acquisition Consideration Transferred Royalty and Mineral Revenue Received					$ 900
Excess Energy, LLC [Member] \| dmlp_Mineral And Royalty Interest [Member]
Area of Real Estate Property (Acre) \| a		2,100
Number Of Counties In Which Entity Operates		12
Asset Acquisition, Consideration Transferred, Equity Interest Issued and Issuable, Number of Shares (in shares) \| shares		816,719
Asset Acquisition, Consideration Transferred, Equity Interest Issued and Issuable		$ 20,400
Asset Acquisition Consideration Transferred Royalty and Mineral Revenue Received				$ 500
Oil and Gas Property, Full Cost Method, Net, Total						19,000
Costs Incurred, Acquisition of Unproved Oil and Gas Properties						1,800
Excess Energy, LLC [Member] \| dmlp_Mineral And Royalty Interest [Member] \| Subsequent Event [Member]
Area of Real Estate Property (Acre) \| a	900
Number Of Counties In Which Entity Operates	13
Asset Acquisition, Consideration Transferred, Equity Interest Issued and Issuable, Number of Shares (in shares) \| shares	343,750
Unrelated Third Parties [Member] \| dmlp_Mineral And Royalty Interest [Member]
Area of Real Estate Property (Acre) \| a			3,600
Number Of Counties In Which Entity Operates			13
Asset Acquisition, Consideration Transferred, Equity Interest Issued and Issuable, Number of Shares (in shares) \| shares			570,000
Asset Acquisition, Consideration Transferred, Equity Interest Issued and Issuable			$ 14,800
Oil and Gas Property, Full Cost Method, Net, Total						$ 14,000

Note 5 - Distributions to Holders of Common Units (Details Textual) - $ / shares	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Number of Units That Cash Distributions Were Paid on During the Period (in shares)	38,715,243	37,554,774
Distribution Made to Limited Partner, Distributions Paid, Per Unit (in dollars per share)	$ 0.676818

Dorchester Minerals (NASDAQ:DMLP)
Historical Stock Chart
From Dec 2024 to Jan 2025

Click Here for more Dorchester Minerals Charts.

Dorchester Minerals (NASDAQ:DMLP)
Historical Stock Chart
From Jan 2024 to Jan 2025

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

DMLP Dorchester Minerals LP

Dorchester Minerals LP News

Your Recent History

Company

Business

Popular

Get The App

Trending Now

Toplists

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

DMLP Dorchester Minerals LP

Dorchester Minerals LP News

Your Recent History

Company

Business

Popular

Get The App

Go Ad-Free