Dorchester Minerals(DMLP) - 2020 Q2 - Quarterly Report

Revenue Performance - Operating revenues decreased 67% from $20.6 million in Q2 2019 to$6.8 million in Q2 2020, and 44% from $39.6 million to$22.3 million for the first six months of 2020 compared to the same period in 2019[53]. - Royalty properties natural gas sales volumes decreased by 31% in Q2 2020 compared to Q2 2019, while oil sales volumes decreased by 17% in the same period[50]. Cash Flow and Receipts - Cash receipts from Royalty Properties in Q2 2020 totaled $6.3 million, with weighted average indicated prices of$25.36/bbl for oil and $1.29/mcf for natural gas[60]. - Cash receipts from NPIs in Q2 2020 amounted to$4.0 million, with weighted average indicated prices of $37.49/bbl for oil and$1.74/mcf for natural gas[61]. - Net cash provided by operating activities decreased 25% to $26.4 million for the first six months of 2020 compared to$35.3 million in the same period of 2019[57]. Expenses and Costs - General and administrative expenses increased 33% to $3.2 million in the first six months of 2020 compared to$2.4 million in the same period of 2019[56]. - Operating costs decreased 22% from $1.8 million in Q2 2019 to$1.4 million in Q2 2020, and 18% from $3.4 million to$2.8 million for the first six months of 2020[54]. Financial Position and Liquidity - The Minerals NPI was in a deficit position as of June 30, 2020, with outstanding capital commitments of $2.6 million, exceeding cash on hand of$2.5 million[43]. - The company anticipates sufficient liquidity to fund distributions to unitholders despite uncertainties from the COVID-19 pandemic and oil market volatility[65]. - Cash and cash equivalents totaled $11.8 million as of June 30, 2020, down from$15.3 million at December 31, 2019[69]. Operational Outlook - The company continues to evaluate opportunities to increase production based on prevailing market conditions in Oklahoma[66]. - The Operating Partnership believes it has sufficient field compression and permits for vacuum operation for the foreseeable future[68]. Accounting Policies - No significant changes to critical accounting policies and related estimates were reported as of June 30, 2020[70].