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ANNUAL MEETING – Dorchester Minerals Lp

Dorchester Minerals Lp · May 15, 2014 · 40 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. ANNUAL MEETING – Dorchester Minerals Lp – slide 1
    Dorchester Minerals NASDAQ: DMLP Dorchester Minerals, LP Annual Meeting May 15, 2013 1
  2. ANNUAL MEETING – Dorchester Minerals Lp – slide 2
    Dorchester Minerals NASDAQ: DMLP Overview of 2012 Results Activity Reserves Production Distributions 3
  3. ANNUAL MEETING – Dorchester Minerals Lp – slide 3
    Dorchester Minerals NASDAQ: DMLP Overview of 2012 Results Activity Reserves Production Distributions 4
  4. ANNUAL MEETING – Dorchester Minerals Lp – slide 4
    Dorchester Minerals NASDAQ: DMLP 2012 Activity Decreased activity in dry gas plays Fayetteville Shale and Barnett Shale Increased activity in liquids-rich gas plays Anadarko Basin Impactful development in oil plays Bakken and…
  5. ANNUAL MEETING – Dorchester Minerals Lp – slide 5
    Dorchester Minerals NASDAQ: DMLP Overview of 2012 Results Activity Reserves Production Distributions 6
  6. ANNUAL MEETING – Dorchester Minerals Lp – slide 6
    Dorchester Minerals NASDAQ: DMLP 2012 Reserves Total Proved Reserves of 86.0 Bcfe on 12/31/2012 All reserves are Proved Developed Producing (PDP) Demonstrated history of positive revisions Cumulative revisions since inception…
  7. ANNUAL MEETING – Dorchester Minerals Lp – slide 7
    Dorchester Minerals NASDAQ: DMLP 2012 Reserves Revisions to Reported PDP Reserves Equivalent Reserves (Bcfe) 100 2012 Production 86.0 Total Reserves 90 13.5 Bcfe 80 11.1 2012 Revisions 70 60 50 88.4 40 74.9 74.9 2012 Pro…
  8. ANNUAL MEETING – Dorchester Minerals Lp – slide 8
    Dorchester Minerals NASDAQ: DMLP 2012 Reserves Composition of DMLP Reserves Geographic Breakdown Royalty-NPI Split Equivalent Reserves (Bcfe) Bakken 70 56.9 Rockies 3% Other 5% 60 Bcfe Royalty 66% 5% NPI 34% Barnett…
  9. ANNUAL MEETING – Dorchester Minerals Lp – slide 9
    Dorchester Minerals NASDAQ: DMLP Overview of 2012 Results Activity Reserves Production Distributions 10
  10. ANNUAL MEETING – Dorchester Minerals Lp – slide 10
    Dorchester Minerals NASDAQ: DMLP 2012 Production Total Production of 13.5 Bcfe 80% of total production was gas and plant products, 20% oil and condensate High quality properties + Diverse portfolio Low decline rate Historical…
  11. ANNUAL MEETING – Dorchester Minerals Lp – slide 11
    Dorchester Minerals NASDAQ: DMLP 2012 Production Diverse Sources of Production New plays have replaced declines in legacy assets Opportunities for production growth in mature basins Daily Equivalent Rate (Mcfed) 40,000 35,000…
  12. ANNUAL MEETING – Dorchester Minerals Lp – slide 12
    Dorchester Minerals NASDAQ: DMLP Overview of 2012 Results Activity Reserves Production Distributions 13
  13. ANNUAL MEETING – Dorchester Minerals Lp – slide 13
    Dorchester Minerals NASDAQ: DMLP 2012 Distributions Cash Distributions Paid in Calendar 2012 Reflects Q4 2011 to Q3 2012 activity Royalty NPI Other Revenue Revenue Revenue 47.2 MM 10.5 MM 4.8 MM Total Revenue 62.5 MM LP…
  14. ANNUAL MEETING – Dorchester Minerals Lp – slide 14
    Dorchester Minerals NASDAQ: DMLP 2012 Distributions Distribution Components and Prices Royalty properties contributed 75% to total 2012 distributions Gross Revenue 30% gas & plant product sales, 61% oil sales, 9% other revenue…
  15. ANNUAL MEETING – Dorchester Minerals Lp – slide 15
    Dorchester Minerals NASDAQ: DMLP Dorchester Minerals, LP Annual Meeting May 15, 2013 16
  16. ANNUAL MEETING – Dorchester Minerals Lp – slide 16
    Dorchester Minerals NASDAQ: DMLP Appendix 17
  17. ANNUAL MEETING – Dorchester Minerals Lp – slide 17
    Dorchester Minerals NASDAQ: DMLP Portfolio Overview Geographically Diverse 574 counties in 25 states 378,000 net mineral acres (2,308,000 gross acres) Varying NPRIs, ORRIs and leasehold interests in an additional 860,000 gross…
  18. ANNUAL MEETING – Dorchester Minerals Lp – slide 18
    Dorchester Minerals NASDAQ: DMLP 2012 Reserves History of Positive Reserve Revisions Cumulative Reserve Revisions have exceeded 100% of Current Reserves Equivalent Reserves (Bcfe) 120 109.5 Initial Reserves 110 100 12.5…
  19. ANNUAL MEETING – Dorchester Minerals Lp – slide 19
    Dorchester Minerals NASDAQ: DMLP 2012 Production Historical Production Profile Portfolio has shifted toward royalties over time, but net profits interests have a new source of production growth after payout of the Minerals NPI…
  20. ANNUAL MEETING – Dorchester Minerals Lp – slide 20
    Dorchester Minerals NASDAQ: DMLP 2012 Production Plant Products Contribution Plant Products (PP) includes all production revenue other than that from oil and gas Volume may be reported in barrels, cubic feet, gallons, bushels,…
  21. ANNUAL MEETING – Dorchester Minerals Lp – slide 21
    Dorchester Minerals NASDAQ: DMLP Royalty Overview Leasing and Development Activity Consummated 66 leases/elections on 3,382 net acres in 24 counties/ parishes in seven states Lease bonus payments up to 7,000/acre Initial royalty…
  22. ANNUAL MEETING – Dorchester Minerals Lp – slide 22
    Dorchester Minerals NASDAQ: DMLP Net Profits Interests Overview NPI Provides LP Exposure to Working Interest Potential Without Generating UBTI Four NPI groups were created at the time of formation in 2003 and two additional NPI…
  23. ANNUAL MEETING – Dorchester Minerals Lp – slide 23
    Dorchester Minerals NASDAQ: DMLP Net Profits Interests Production Relative contribution of NPIs has shifted over time Hugoton accounted for 96% of NPI production at inception 57% at year-end 2012 Minerals NPI volumes prior to Q3…
  24. ANNUAL MEETING – Dorchester Minerals Lp – slide 24
    Dorchester Minerals NASDAQ: DMLP Net Profits Interests Production Non-Hugoton NPI Production New Areas: MT Bakken (2005), Fayetteville (2006), ND Bakken (2008), Permian (2010) Additional participation opportunities in West Texas…
  25. ANNUAL MEETING – Dorchester Minerals Lp – slide 25
    Dorchester Minerals NASDAQ: DMLP Minerals NPI What is the Minerals NPI and How Does it Work Upon its formation, Dorchester Minerals, LP (DMLP, the public partnership and owner of the mineral interests) provided for future…
  26. ANNUAL MEETING – Dorchester Minerals Lp – slide 26
    Dorchester Minerals NASDAQ: DMLP Minerals NPI What is the Minerals NPI and How Does it Work DMLP Lease to third party for Participation right royalty and optional assigned to DMOLP participation right DMOLP pays 100% of…
  27. ANNUAL MEETING – Dorchester Minerals Lp – slide 27
    Dorchester Minerals NASDAQ: DMLP Minerals NPI Minerals NPI Cash Flow Inception through Q1 2013 Cumulative Revenue 49.6 MM Cumulative Expense (LOE, taxes, etc) (9.9 MM) Cumulative Operating Income exceeded Cumulative Operating…
  28. ANNUAL MEETING – Dorchester Minerals Lp – slide 28
    Dorchester Minerals NASDAQ: DMLP Fayetteville Shale Eastern Arkoma Basin Northern Arkansas DMLP owns 23,336 gross/11,464 net acres in 196 sections June 2006: Leased 9,800 net acres in 179 sections for 25% royalty with optional…
  29. ANNUAL MEETING – Dorchester Minerals Lp – slide 29
    Dorchester Minerals NASDAQ: DMLP Fayetteville Shale 2012 Production Results 374 wells producing at year-end 2012 2.9 MMcfd (WI) 5.8 MMcfd 2.9 MMcfd (RI) Produced 2.3 Bcf in 2012 52% from wells completed since January 2011…
  30. ANNUAL MEETING – Dorchester Minerals Lp – slide 30
    Dorchester Minerals NASDAQ: DMLP Fayetteville Shale 2012 Reserves Total reserves of 9.1 Bcfe on 12/31/2012 53% royalty Year-over-year reserves declined 18% Lower natural gas price assumption negatively affected economic limits…
  31. ANNUAL MEETING – Dorchester Minerals Lp – slide 31
    Dorchester Minerals NASDAQ: DMLP Bakken/Three Forks Williston Basin Northwestern North Dakota Diversified acreage position 70,390 gross acres/8,905 net acres Operators: Continental, COP, EOG, Hess, Marathon, Oasis Elected…
  32. ANNUAL MEETING – Dorchester Minerals Lp – slide 32
    Dorchester Minerals NASDAQ: DMLP Bakken/Three Forks Six County Core Area Current development activity on DMLP acreage 273 wells completed as producers 56 wells in various stages of drilling or completion (or confidential) 361…
  33. ANNUAL MEETING – Dorchester Minerals Lp – slide 33
    Dorchester Minerals NASDAQ: DMLP Hugoton Operated Properties Hugoton Field Oklahoma Panhandle & SW Kansas 2012 production within 1.8% of projection Year-over-year production decline of 6.0% with a 2.4% decrease in net reserves…
  34. ANNUAL MEETING – Dorchester Minerals Lp – slide 34
    Dorchester Minerals NASDAQ: DMLP Appalachia Devonian Shale New York and Pennsylvania Concentrated acreage position 32,395 gross acres/24,494 net acres 70% in Allegany and Steuben Counties, NY Challenging political environment in…
  35. ANNUAL MEETING – Dorchester Minerals Lp – slide 35
    Dorchester Minerals NASDAQ: DMLP Appalachia Southern Tier NY & Northern Tier PA Schuyler 459 nma Allegany Steuben Cattaraugus 13,216 nma 4,714 nma Chemung Tioga NY 308 nma 163 nma NY PA McKean Potter Tioga PA 1,158 nma 846…
  36. ANNUAL MEETING – Dorchester Minerals Lp – slide 36
    Dorchester Minerals NASDAQ: DMLP Distributions Distribution Determinations Period from October 2011 through September 2012 ( thousands) Limited General Partners Partner 4% of Net Cash Receipts from Royalty Properties --------…
  37. ANNUAL MEETING – Dorchester Minerals Lp – slide 37
    Dorchester Minerals NASDAQ: DMLP Management Ownership Alignment of GP and LP interests GP has no incentive distribution rights fixed sharing ratio Managements LP interest exceeds its GP interest Not incentivized to make dilutive…
  38. ANNUAL MEETING – Dorchester Minerals Lp – slide 38
    Dorchester Minerals NASDAQ: DMLP Effects of Operating Leverage Royalty Interest vs. NPI Royalty Interest Net Profits Interest Production Volume 1,000 Mcf 1,000 Mcf Gas Price 4.00/Mcf 4.00/Mcf Revenue 4,000 4,000 Fixed…
  39. ANNUAL MEETING – Dorchester Minerals Lp – slide 39
    Dorchester Minerals NASDAQ: DMLP Royalty Cash Receipts Long delay between production and cash distribution Cash receipts extend over multiple months due to adjustments, releases, etc. Prices can change dramatically between…
  40. ANNUAL MEETING – Dorchester Minerals Lp – slide 40
    Dorchester Minerals NASDAQ: DMLP Peer Group Comparison Market Performance Pure royalties lack operating leverage inherent in net profits interests Less volatility Outperformance in low price environment (mid-2009) due to lower…

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