1 unchanged sentence
We own two categories of properties:
−Removed: Royalty Properties and Net Profits Interests (“NPI”).
+Added: Royalty Properties and Net Profits Interests (“NPI”).
Royalty Properties
22 unchanged sentences
Leasing Activity
−Removed: We received $8.7 million during 2022 attributable to lease bonus on 28 leases or extension of existing leases and three pooling elections in lands located in 17 counties in four states.
+Added: We received $12.7 million during 2023 attributable to lease bonus on 14 leases or extension of existing leases in lands located in 11 counties in three states.
These leases reflected bonus payments ranging up to $30,000/acre and initial royalty terms ranging up to 25%.
4 unchanged sentences
Average Bonus, $/acre(1)
−Removed: Total Lease Bonus
+Added: Total Lease Bonus (in millions)
Based on net acreage weighted average.
1 unchanged sentence
Net Profits Interests
−Removed: 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, a Delaware limited partnership owned directly and indirectly by our General Partner.
−Removed: We refer to Dorchester Minerals Operating LP as the “Operating Partnership.”
−Removed: 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.
+Added: 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, a Delaware limited partnership owned directly and indirectly by our General Partner.
+Added: We refer to Dorchester Minerals Operating LP as the “Operating Partnership.” 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 costs, including budgeted capital expenditures, exceed revenues on a cash basis in a given month for properties subject to a 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 an NPI has a deficit of cumulative revenue versus cumulative costs, the deficit will be borne solely by the Operating Partnership.
−Removed: In 2020 we obtained a ruling from the IRS permitting the aggregation of the Minerals NPI, Bradley NPI, Republic NPI, and Spinnaker NPI for federal income tax purposes effective January 1, 2020.
−Removed: The Bradley NPI, Republic NPI, and Spinnaker NPI were aggregated into the Minerals NPI on a prospective basis in our financial results effective October 1, 2020.
From a cash perspective, as of December 31, 2023, the Minerals NPI was in a surplus position and had outstanding capital commitments, primarily in the Bakken region, equaling cash on hand of $5.4 million.
1 unchanged sentence
The following tables set forth, as of December 31, 2023, information concerning properties owned by the Operating Partnership and subject to the NPI.
−Removed: Acreage amounts listed under “Leasehold”
−Removed: reflect gross acres leased by the Operating Partnership and the working interest share (net acres) in those properties.
−Removed: Acreage amounts listed under “Mineral”
−Removed: reflect gross acres in which the Operating Partnership owns a mineral interest and the undivided mineral interest (net acres) in those properties.
+Added: Acreage amounts listed under “Leasehold” reflect gross acres leased by the Operating Partnership and the working interest share (net acres) in those properties.
+Added: Acreage amounts listed under “Mineral” reflect gross acres in which the Operating Partnership owns a mineral interest and the undivided mineral interest (net acres) in those properties.
The Operating Partnership's interest in these properties may be unleased, leased by others or a combination thereof.
14 unchanged sentences
Drilling Activity
−Removed: The following table sets forth first payments received for new wells completed on our Royalty Properties and NPI Properties during 2022.
−Removed: The majority of the activity was concentrated in the Permian Basin and Rockies. Included in the table below are wells in which we own both a royalty interest and a net profits interest.
+Added: The following table sets forth first payments received for new wells on our Royalty Properties and NPI Properties during 2023.
+Added: The majority of the activity was concentrated in the Bakken region, Permian Basin, and South Texas.
+Added: Included in the table below are wells in which we own both a royalty interest and a net profits interest.
Wells with such overlapping interests are counted in both categories.
2 unchanged sentences
Number of Counties/Parishes
−Removed: 472 gross and four net royalty well additions in 18 counties and four states are attributable to the Gemini acquisition that closed on December 31, 2021, 871 gross and three net royalty well additions in ten counties and six states are attributable to the acquisition from multiple unrelated third parties that closed on March 31, 2022, and 37 gross and < 1 net royalty well additions in six counties and two states are attributable to the Excess acquisition that closed on September 30, 2022.
+Added: 249 gross and < 1 net royalty well additions in 14 counties and five states were attributable to acquisitions closed during 2022.
+Added: 363 gross and two net well additions in 11 counties and parishes in two states were attributable to acquisitions closed during 2023.
+Added: We anticipate receiving more first payments for new wells attributable to acquisitions closed during 2023 in the first half of 2024.
We have and will continue to consider a range of transaction structures for our unleased mineral interests including leasing to third parties, working interest participation through the Operating Partnership, electing non-consent under State laws, or a combination thereof.
9 unchanged sentences
The Partnership does not have information that would be available to a company with oil and natural gas operations because detailed information is not generally available to owners of royalty interests.
−Removed: The Partnership’s Chief Executive Officer (“CEO”) provides production and accounting information to our independent petroleum engineering consulting firm who extrapolates from such information estimates of the reserves attributable to the Royalty Properties and NPI based on their expertise in the oil and natural gas fields where the Royalty Properties and NPI are situated, as well as publicly available information.
−Removed: Ensuring compliance with generally accepted petroleum engineering and evaluation methods and procedures is the responsibility of the CEO.
−Removed: Our CEO has a bachelor’s degree in Petroleum Engineering from the University of Alberta and has worked in the upstream oil and natural gas business in various capacities since 1996.
+Added: The Partnership’s petroleum engineer provides production and accounting information to our independent petroleum engineering consulting firm who extrapolates from such information estimates of the reserves attributable to the Royalty Properties and NPI based on their expertise in the oil and natural gas fields where the Royalty Properties and NPI are situated, as well as publicly available information.
+Added: Ensuring compliance with generally accepted petroleum engineering and evaluation methods and procedures is the responsibility of the Partnership's Chief Executive Officer (“CEO”).
+Added: Our CEO has a bachelor’s degree in Petroleum Engineering from the University of Alberta and has worked in the upstream oil and natural gas business in various capacities since 1996.
Summary of Oil and Gas Reserves as of Fiscal Year-End
2 unchanged sentences
Net Profits Interests(1)
−Removed: Reserves reflect 96.97% of the corresponding amounts assigned to the Operating Partnership’s interests in the properties underlying the Net Profits Interests.
+Added: Reserves reflect 96.97% of the corresponding amounts assigned to the Operating Partnership’s interests in the properties underlying the Net Profits Interests.
Oil reserves include volumes attributable to natural gas liquids.
−Removed: Proved oil and natural gas reserves means those quantities of oil and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and governmental regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation.
+Added: Proved oil and natural gas reserves means those quantities of oil and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and governmental regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation.
The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.
−Removed: See “Item 7 –
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations –
−Removed: Results of Operations”
−Removed: for average sales prices.
+Added: See “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations” for average sales prices.
Title to Properties
4 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.