For
the Quarterly Period Ended March 31,
2008
|
Commission
file number
000-50175
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Delaware
(State
or other jurisdiction of
Incorporation
or organization)
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81-0551518
(I.R.S.
Employer Identification No.)
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Large accelerated filer o | Accelerated filer x | Non-accelerated filer o | Smaller reporting company o |
(Do
not check if a smaller
reporting company)
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3
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3
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ITEM
1.
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3
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4
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5
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6
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7
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ITEM
2.
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7
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ITEM
3.
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12
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ITEM
4
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13
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13
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ITEM
1.
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13
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ITEM
1A.
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13
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ITEM
2.
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13
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ITEM
3.
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13
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ITEM
4.
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13
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ITEM
5.
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13
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ITEM
6.
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13
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13
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14
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15
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March
31,
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December
31,
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|||||||
2008
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2007
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|||||||
ASSETS
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(unaudited)
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|||||||
Current
assets:
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||||||||
Cash
and cash equivalents
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$ | 17,158 | $ | 15,001 | ||||
Trade
receivables
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8,338 | 7,053 | ||||||
Net
profits interests receivable - related party
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4,531 | 3,576 | ||||||
Prepaid
expenses
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37 | - | ||||||
Total
current assets
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30,064 | 25,630 | ||||||
Other
non-current assets
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19 | 19 | ||||||
Total
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19 | 19 | ||||||
Property
and leasehold improvements - at cost:
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||||||||
Oil
and natural gas properties (full cost method)
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291,868 | 291,830 | ||||||
Less
accumulated full cost depletion
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167,360 | 163,582 | ||||||
Total
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124,508 | 128,248 | ||||||
Leasehold
improvements
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512 | 512 | ||||||
Less
accumulated amortization
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170 | 158 | ||||||
Total
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342 | 354 | ||||||
Net
property and leasehold improvements
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124,850 | 128,602 | ||||||
Total
assets
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$ | 154,933 | $ | 154,251 | ||||
LIABILITIES
AND PARTNERSHIP CAPITAL
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||||||||
Current
liabilities:
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||||||||
Accounts
payable and other current liabilities
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$ | 796 | $ | 517 | ||||
Current
portion of deferred rent incentive
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39 | 39 | ||||||
Total
current liabilities
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835 | 556 | ||||||
Deferred
rent incentive less current portion
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237 | 248 | ||||||
Total
liabilities
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1,072 | 804 | ||||||
Commitments
and contingencies
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||||||||
Partnership
capital:
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||||||||
General
partner
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6,417 | 6,417 | ||||||
Unitholders
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147,444 | 147,030 | ||||||
Total
partnership capital
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153,861 | 153,447 | ||||||
Total
liabilities and partnership capital
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$ | 154,933 | $ | 154,251 |
Three
Months Ended
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||||||||
March
31,
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||||||||
2008
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2007
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|||||||
Operating
revenues:
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||||||||
Royalties
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$ | 14,771 | $ | 9,669 | ||||
Net
profits interests
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6,365 | 4,944 | ||||||
Lease
bonus
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117 | 93 | ||||||
Other
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19 | 8 | ||||||
Total
operating revenues
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21,272 | 14,714 | ||||||
Costs
and expenses:
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||||||||
Operating,
including production taxes
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1,191 | 968 | ||||||
Depletion
and amortization
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3,790 | 3,821 | ||||||
General
and administrative expenses
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1,011 | 943 | ||||||
Total
costs and expenses
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5,992 | 5,732 | ||||||
Operating
income
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15,280 | 8,982 | ||||||
Other
income, net
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130 | 141 | ||||||
Net
earnings
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$ | 15,410 | $ | 9,123 | ||||
Allocation
of net earnings:
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||||||||
General
partner
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$ | 463 | $ | 260 | ||||
Unitholders
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$ | 14,947 | $ | 8,863 | ||||
Net
earnings per common unit (basic and diluted)
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$ | 0.53 | $ | 0.31 | ||||
Weighted
average common units outstanding
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28,240 | 28,240 |
Three
Months Ended
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||||||||
March
31,
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||||||||
2008
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2007
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|||||||
Net
cash provided by operating activities
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$ | 17,203 | $ | 13,765 | ||||
Cash
flows provided by (used in) investing activities:
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||||||||
Proceeds
from related party note receivable
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- | 13 | ||||||
Capital
expenditures
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(50 | ) | - | |||||
Total
cash flows provided by (used in) investing activities
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(50 | ) | 13 | |||||
Cash
flows used in financing activities:
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||||||||
Distributions
paid to general partner and unitholders
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(14,996 | ) | (13,877 | ) | ||||
Increase
(decrease) in cash and cash equivalents
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2,157 | (99 | ) | |||||
Cash
and cash equivalents at beginning of period
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15,001 | 13,927 | ||||||
Cash
and cash equivalents at end of period
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$ | 17,158 | $ | 13,828 |
Per
Unit Amount
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||||||||||||
2003
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2004
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2005
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2006
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2007
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2008
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|||||||
First
quarter
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$0.206469
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$0.415634
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$0.481242
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$0.729852
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$0.461146
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$0.572300
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||||||
Second
quarter
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$0.458087
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$0.415315
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$0.514542
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$0.778120
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$0.473745
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|||||||
Third
quarter
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$0.422674
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$0.476196
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$0.577287
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$0.516082
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$0.560502
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|||||||
Fourth
quarter
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$0.391066
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$0.426076
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$0.805543
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$0.478596
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$0.514625
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Minerals
NPI Cash Basis Results
(in
Thousands)
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||||||||||||
Cumulative Total
at
12/31/07
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Three
Months
Ended
3/31/08
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Cumulative Total
at
3/31/08
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||||||||||
Cash
received for revenue
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$ | 8,200 | $ | 1,060 | $ | 9,260 | ||||||
Cash
paid for operating costs
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1,373 | 158 | 1,531 | |||||||||
Cash
paid for development costs
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6,946 | 1,278 | 8,224 | |||||||||
Net
cash (paid) received
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$ | (119 | ) | $ | (376 | ) | $ | (495 | ) | |||
Cumulative
NPI deficit
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$ | (119 | ) | $ | (495 | ) | $ | (495 | ) |
Three
Months Ended
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||||||||
March
31,
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||||||||
Accrual
basis sales volumes:
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2008
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2007
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||||||
Royalty
Properties gas sales (mmcf)
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992 | 858 | ||||||
Royalty
Properties oil sales (mbbls)
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72 | 74 | ||||||
Net
Profits Interests gas sales (mmcf)
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987 | 1,016 | ||||||
Net
Profits Interests oil sales (mbbls)
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4 | 4 | ||||||
Accrual
basis weighted average sales price:
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||||||||
Royalty
Properties gas sales ($/mcf)
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$ | 7.96 | $ | 6.60 | ||||
Royalty
Properties oil sales ($/bbl)
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$ | 94.88 | $ | 53.87 | ||||
Net
Profits Interests gas sales ($/mcf)
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$ | 8.04 | $ | 6.74 | ||||
Net
Profits Interests oil sales ($/bbl)
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$ | 80.10 | $ | 46.41 | ||||
Accrual
basis production costs deducted
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||||||||
under the Net Profits Interests
($/mcfe) (1)
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$ | 1.99 | $ | 2.08 |
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(1)
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Provided to
assist in determination of revenues; applies only to Net Profit Interest
sales volumes and prices.
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County
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DMLP
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DMOLP
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Test Rates per day
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||||||||||
State
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/Parish
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Operator
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Well Name
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NRI(2)
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WI(1)
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NRI(2)
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Gas, mcf
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Oil, bbls
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|||||
LA
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Jackson
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EXCO
Partners
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Hodde
22-5 Alt
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0.880%
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0.000%
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0.000%
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1,865
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--
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|||||
OK
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McClain
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Okland
Oil Company
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Keith
1-9
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0.000%
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1.659%
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1.659%
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--
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117
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OK
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Roger
Mills
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Apache
Corp.
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Cobb
#3-27
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1.830%
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0.000%
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0.000%
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448
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--
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TX
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Hidalgo
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El
Paso E & P Col, L.P.
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Coates
A-39
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6.423%
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0.000%
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0.000%
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9,827
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--
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TX
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Lipscomb
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Mewbourne
Oil Co.
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Floyd
# 2
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0.737%
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0.000%
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0.000%
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5,028
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--
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TX
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Starr
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Ascent
Operating
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Garza
Hitchcock #12
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2.653%
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0.000%
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0.000%
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10,346
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--
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TX
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Wheeler
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Noble
Energy
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R N
Byers 2304
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3.125%
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0.000%
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0.000%
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1,674
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8
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(1)
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WI
means the working interest owned by the operating partnership and subject
to a Net Profits
Interest.
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(2)
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NRI
means the net revenue interest attributable to our royalty interest or to
the operating partnership’s royalty and working interest, which is subject
to a Net Profits Interest.
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DMLP
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DMOLP
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Gas
Test Rates
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||||||||
County
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Operator
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Well Name
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NRI(2)
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WI(1)
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NRI(2)
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Mcf per day
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||||
Conway
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SEECO
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Don
English 8-16 #2-12H
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0.781%
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0.000%
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0.000%
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--
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||||
Conway
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SEECO
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Hemphill
9-14 #1-30H
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0.391%
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0.000%
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0.000%
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839
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||||
Conway
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SEECO
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John
Wells 9-15 #1-2H
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0.781%
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0.000%
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0.000%
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1,357
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||||
Conway
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SEECO
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Salinas,
Reyes 9-15 #1-20H
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1.504%
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0.000%
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0.000%
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5,429
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||||
Conway
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SEECO
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Salinas,
Reyes 9-15 #2-20H
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1.504%
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0.000%
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0.000%
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4,648
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||||
Van
Buren
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SEECO
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Robinson
9-13 #2-24H
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1.953%
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2.813%
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2.109%
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2,614
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||||
Van
Buren
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SEECO
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Green
Bay Packaging 10-16 #3 22H26
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0.000%
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3.491%
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3.596%
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2,358
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||||
Van
Buren
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SEECO
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Handy
10-12 #1-18H
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2.656%
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5.000%
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3.750%
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2,392
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||||
Van
Buren
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Petrohawk
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Lewis
11-13 #1-30H
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0.684%
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0.000%
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0.000%
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2,000
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||||
Van
Buren
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Petrohawk
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Lewis
11-13 #2-30H
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0.684%
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0.000%
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0.000%
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--
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(1)
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WI
means the working interest owned by the operating partnership and subject
to the Minerals NPI.
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(2)
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NRI
means the net revenue interest attributable to our royalty interest or to
the operating partnership’s royalty and working interest, which is subject
to the Minerals NPI.
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2004
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2005
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2006
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Q1 2007
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Q2 2007
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Q3 2007
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Q4 2007
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Q1 2008
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April 2008
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Total
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||||||||||
New
Well Permits
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1
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2
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11
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4
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9
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12
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11
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18
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6
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74
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|||||||||
Wells
Spud
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0
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1
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9
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4
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7
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9
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13
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11
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4
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58
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|||||||||
Wells
Completed
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0
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1
|
5
|
2
|
4
|
8
|
9
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10
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4
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43
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|||||||||
Wells in Pay Status
(1)
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0
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1
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0
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2
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3
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3
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6
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5
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0
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20
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(1)
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Wells
in pay status means wells for which revenue was initially received during
the indicated period.
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LEGAL
PROCEEDINGS
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|||
See
Note 2 – Contingencies in Notes to the Condensed
Consolidated Financial Statements.
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RISK
FACTORS
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|||
None.
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UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
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None.
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DEFAULTS
UPON SENIOR SECURITIES
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None.
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SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS
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|||
None.
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|||
OTHER
INFORMATION
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|||
None.
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EXHIBITS
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|||
See
the attached Index to Exhibits.
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DORCHESTER
MINERALS, L.P.
|
|||
By:
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Dorchester
Minerals Management LP
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||
its
General Partner
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|||
By:
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Dorchester
Minerals Management GP LLC
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||
its
General Partner
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By:
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/s/
William Casey McManemin
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||
William
Casey McManemin
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|||
Date:
May 8, 2008
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Chief
Executive Officer
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||
By:
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/s/
H.C. Allen, Jr.
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||
H.C.
Allen, Jr.
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Date:
May 8, 2008
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Chief
Financial Officer
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||
Number
|
Description
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3.1
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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)
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3.2
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Amended
and Restated Agreement of Limited Partnership of Dorchester Minerals, L.P.
(incorporated by reference to Exhibit 3.2 to Dorchester Minerals’ Report
on Form 10-K filed for the year ended December 31,
2002)
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3.3
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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)
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3.4
|
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Amended
and Restated Agreement of Limited Partnership of Dorchester Minerals
Management LP (incorporated by reference to Exhibit 3.4 to Dorchester
Minerals’ Report on Form 10-K for the year ended December 31,
2002)
|
3.5
|
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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)
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3.6
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Amended
and Restated Limited Liability Company Agreement of Dorchester Minerals
Management GP LLC (incorporated by reference to Exhibit 3.6 to Dorchester
Minerals’ Report on Form 10-K for the year ended December 31,
2002)
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3.7
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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)
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3.8
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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)
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3.9
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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)
|
3.10
|
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Amended
and Restated Agreement of Limited Partnership of Dorchester Minerals
Operating LP. (incorporated by reference to Exhibit 3.10 to Dorchester
Minerals’ Report on Form 10-K for the year ended December 31,
2002)
|
3.11
|
|
Certificate
of Limited Partnership of Dorchester Minerals Oklahoma LP (incorporated by
reference to Exhibit 3.11 to Dorchester Minerals’ Report on Form 10-K for
the year ended December 31, 2002)
|
3.12
|
|
Agreement
of Limited Partnership of Dorchester Minerals Oklahoma LP (incorporated by
reference to Exhibit 3.12 to Dorchester Minerals’ Report on Form 10-K for
the year ended December 31, 2002)
|
3.13
|
|
Certificate
of Incorporation of Dorchester Minerals Oklahoma GP, Inc. (incorporated by
reference to Exhibit 3.13 to Dorchester Minerals’ Report on Form 10-K for
the year ended December 31, 2002)
|
3.14
|
|
Bylaws
of Dorchester Minerals Oklahoma GP, Inc. (incorporated by reference to
Exhibit 3.14 to Dorchester Minerals’ Report on Form 10-K for the year
ended December 31, 2002)
|
3.15
|
Certificate
of Limited Partnership of Dorchester Minerals Acquisition LP (incorporated
by reference to Exhibit 3.15 to Dorchester Minerals’ Report on Form 10-K
for the year ended December 31, 2004)
|
|
3.16
|
Agreement
of Limited Partnership of Dorchester Minerals Acquisition LP (incorporated
by reference to Exhibit 3.16 to Dorchester Minerals’ Report on Form 10-Q
for the quarter ended September 30, 2004)
|
|
3.17
|
Certificate
of Incorporation of Dorchester Minerals Acquisition GP, Inc. (incorporated
by reference to Exhibit 3.17 to Dorchester Minerals’ Report on Form 10-Q
for the quarter ended September 30, 2004)
|
|
3.18
|
Bylaws
of Dorchester Minerals Acquisition GP, Inc. (incorporated by reference to
Exhibit 3.18 to Dorchester Minerals’ Report on Form 10-Q for the quarter
ended September 30, 2004)
|
|
31.1
|
Certification
of Chief Executive Officer of the Partnership pursuant to Rule 13a-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)
of the Securities Exchange Act of 1934
|
|
32.1
|
Certification
of Chief Executive Officer of the Partnership pursuant to 18 U.S.C. Sec.
1350
|
|
32.2
|
Certification
of Chief Financial Officer of the Partnership pursuant to 18 U.S.C. Sec.
1350 (contained within Exhibit 32.1
hereto)
|