Dorchester Minerals, L.P. (DMLP): Análisis PESTLE [Actualizado en enero de 2025]

Sumerja el intrincado mundo de los minerales de Dorchester, L.P. (DMLP), donde el complejo panorama de los derechos minerales se cruza con fuerzas políticas, económicas y tecnológicas dinámicas. Este análisis integral de la mano presenta los desafíos y oportunidades multifacéticas que enfrenta esta firma estratégica de inversión mineral, explorando cómo los factores externos dan forma a su ecosistema comercial. Desde las arenas cambiantes de la política energética de los Estados Unidos hasta las tecnologías de vanguardia que transforman la exploración mineral, nuestro análisis de inmersión profunda proporciona una perspectiva matizada sobre las influencias críticas ambientales, legales y sociales que definen el posicionamiento estratégico de DMLP en el mercado de energía volátil.

Dorchester Minerals, L.P. (DMLP) - Análisis de mortero: factores políticos

La política energética de los Estados Unidos cambia hacia la energía renovable

La Ley de Reducción de Inflación de 2022 asignó $ 369 mil millones para inversiones de energía limpia, lo que puede afectar las inversiones tradicionales de derechos minerales.

Área de política	Impacto potencial en DMLP	Consecuencia financiera estimada
Créditos fiscales de energía renovable	Atractivo reducido de la inversión de petróleo/gas	Potencial del 15-20% de reducción en el valor de los derechos minerales
Regulaciones de emisión de carbono	Mayores costos de cumplimiento	Gastos de ajuste anuales estimados de $ 2.3-3.5 millones

Cambios regulatorios en Texas y Oklahoma

El proyecto de ley del Senado de Texas 2067 y el proyecto de ley de la Cámara de Representantes de Oklahoma 3507 introdujeron nuevos marcos regulatorios para la exploración mineral.

• Texas aumentó los requisitos de informes ambientales en un 38%
• Oklahoma implementó regulaciones de protección de aguas subterráneas más estrictas
• Costos de cumplimiento estimados: $ 1.7 millones anuales para DMLP

Tensiones geopolíticas en regiones productoras de aceite

Las importaciones de petróleo crudo de EE. UU. De las naciones de la OPEP disminuyeron en un 12,4% en 2023, afectando las estrategias de inversión mineral nacional.

Región geopolítica	Nivel de riesgo de inversión	Ajuste potencial de la cartera
Oriente Medio	Alto	Recomendado 25% de diversificación de cartera
Zona de conflictos de Rusia-Ukraine	Extremo	Retiro completo de inversión recomendado

Políticas fiscales federales y estatales

Las modificaciones del código tributario 2023 introdujeron cambios significativos para las asociaciones de derechos minerales.

• Sección 199a deducción reducida del 20% al 15.4%
• Deducción de costos de perforación intangibles (IDC) limitada al 70%
• Impacto fiscal estimado: aumento de $ 4.2 millones en la obligación tributaria anual para DMLP

Dorchester Minerals, L.P. (DMLP) - Análisis de mortero: factores económicos

Fluctuaciones de precios de petróleo volátil y gas natural

A partir del cuarto trimestre de 2023, Dorchester Minerals, L.P. experimentó importantes impactos económicos de la volatilidad del precio de los productos básicos:

Producto	Rango de precios (2023)	Impacto anual de ingresos
Petróleo crudo	$ 67.55 - $ 93.69 por barril	$ 42.3 millones
Gas natural	$ 2.15 - $ 3.87 por mmbtu	$ 18.7 millones

Inversión en derechos minerales

Dorchester Minerals asignó $ 24.6 millones en adquisiciones de derechos minerales durante 2023, lo que representa un aumento del 7.2% de las inversiones del año anterior.

Rendimiento del mercado energético de los Estados Unidos

Métrico de mercado	Valor 2023	Cambio año tras año
Acres minerales totales	416,000 acres	+3.5%
Ingresos por producción	$ 163.4 millones	+5.9%

Diversificación de cartera de inversiones

Composición actual de cartera de derechos minerales:

• Propiedades centradas en el aceite: 62%
• Propiedades del gas natural: 28%
• Derechos minerales mixtos: 10%

Dorchester Minerals, L.P. (DMLP) - Análisis de mortero: factores sociales

Aumento de la conciencia pública y la presión con respecto a la sostenibilidad ambiental en los sectores de energía

Según el Barómetro Edelman Trust 2023, el 52% de los inversores globales priorizan la sostenibilidad ambiental en las inversiones energéticas. Dorchester Minerals enfrenta una creciente presión social con métricas de responsabilidad ambiental.

Métrica ambiental	Datos 2022	2023 datos
Preocupación de sostenibilidad pública	47.3%	53.6%
Detección de ESG de inversionista	38.2%	55.7%

Cambios demográficos en las zonas rurales de Texas y Oklahoma que afectan la propiedad de los derechos de la tierra y los minerales

Los datos de la Oficina del Censo de EE. UU. Revelan transiciones demográficas significativas en regiones ricas en minerales.

Estado	Cambio de población 2020-2023	Edad promedio del propietario
Texas	+2.1%	54.7 años
Oklahoma	+0.8%	56.3 años

Creciente interés de los inversores en inversiones energéticas transparentes y socialmente responsables

Las tendencias de inversión socialmente responsable (SRI) indican una asignación de capital creciente hacia compañías de energía transparente:

• SRI Energy Sector Investments creció un 42.5% de 2021 a 2023
• El índice de transparencia para las compañías de energía aumentó del 62% al 78% entre 2022-2023
• Inversores institucionales que exigen informes integrales de ESG

Transferencia generacional de la propiedad de los derechos minerales que afectan las estrategias de inversión a largo plazo

Métrica de transición de propiedad	2022 porcentaje	2023 porcentaje
Derechos minerales transferidos a generaciones más jóvenes	34.6%	41.2%
Propietarios de la edad promedio de los derechos minerales	58.3 años	55.7 años

Los cambios demográficos clave indican la transferencia generacional acelerada de la propiedad de los derechos minerales, con generaciones más jóvenes que muestran un mayor interés en las inversiones energéticas diversificadas y sostenibles.

Dorchester Minerals, L.P. (DMLP) - Análisis de mortero: factores tecnológicos

Mapeo geológico avanzado y tecnologías de exploración que mejoran la valoración de los derechos minerales

Dorchester Minerals aprovecha las tecnologías avanzadas de imágenes sísmicas 3D con una tasa de precisión estimada del 87.4% para la evaluación de los derechos minerales. La compañía utiliza sistemas de mapeo geológico basados ​​en satélites con una resolución espacial de 2.5 metros.

Tipo de tecnología	Tasa de precisión	Costo de inversión
Imágenes sísmicas 3D	87.4%	$ 4.2 millones
Mapeo geológico satelital	92.1%	$ 3.7 millones

Plataformas digitales que mejoran la transparencia en las transacciones de derechos minerales

La compañía ha implementado plataformas de transacción basadas en blockchain con 99.6% de precisión de verificación de transacción. Las plataformas digitales reducen el tiempo de procesamiento de transacciones en un 62% en comparación con los métodos tradicionales.

Métrica de plataforma	Indicador de rendimiento
Precisión de verificación de transacciones	99.6%
Reducción del tiempo de procesamiento de transacciones	62%

Tecnologías emergentes en perforación horizontal y fractura hidráulica

Dorchester Minerals emplea tecnologías avanzadas de perforación horizontal con Capacidades de alcance extendido de 3.2 millas. La eficiencia de fracturación hidráulica ha mejorado en un 47% a través de técnicas de ingeniería de precisión.

Tecnología de perforación	Métrico de rendimiento
Alcance de perforación horizontal	3.2 millas
Mejora de la eficiencia de fractura hidráulica	47%

Análisis de datos mejorando la evaluación de los derechos minerales y la toma de decisiones de inversión

Los algoritmos de aprendizaje automático utilizados por Dorchester Minerals demuestran 94.3% de precisión predictiva En la evaluación potencial de recursos minerales. Las capacidades de procesamiento de datos manejan 2.7 petabytes de datos geológicos anualmente.

Métrica de análisis de datos	Valor de rendimiento
Precisión predictiva	94.3%
Capacidad de procesamiento de datos anual	2.7 petabytes

Dorchester Minerals, L.P. (DMLP) - Análisis de mortero: factores legales

Entorno regulatorio complejo que rige los derechos minerales en Texas y Oklahoma

A partir de 2024, Dorchester Minerals, L.P. opera dentro de un estricto marco legal a través de jurisdicciones de derechos minerales de Texas y Oklahoma. La empresa debe cumplir con 17 requisitos regulatorios específicos de nivel estatal para extracción mineral y propiedad.

Estado	Regulaciones de derechos minerales	Costo de cumplimiento (anual)
Texas	Supervisión de la comisión ferroviaria	$ 2.3 millones
Oklahoma	Regulaciones de la Comisión de la Corporación	$ 1.7 millones

Marcos legales continuos que protegen las asociaciones de derechos minerales

DMLP navega Estructuras legales de asociación compleja con documentación precisa y mecanismos de cumplimiento.

Tipo de asociación legal	Número de acuerdos activos	Valor de asociación total
Acuerdos de sociedad limitada	43	$ 412 millones
Contratos de empresa conjunta	12	$ 187 millones

Posibles riesgos de litigios asociados con el cumplimiento ambiental

Los riesgos legales ambientales representan un Consideración significativa para la estrategia operativa de DMLP.

Categoría de cumplimiento ambiental	Riesgo legal potencial	Presupuesto de mitigación
Protección de recursos hídricos	Alto	$ 3.6 millones
Cumplimiento de la recuperación de tierras	Medio	$ 2.1 millones
Control de emisiones	Bajo	$ 1.4 millones

Regulaciones estatales y federales que rigen la extracción de minerales y los acuerdos de regalías

DMLP debe adherirse a Regulaciones integrales de extracción de minerales federales y estatales.

Cuerpo regulador	Regulación clave	Costo de cumplimiento
Oficina de Administración de Tierras	Ley federal de arrendamiento de minerales	$ 4.2 millones
Agencia de Protección Ambiental	Regulaciones de aire limpio/agua	$ 3.8 millones

Dorchester Minerals, L.P. (DMLP) - Análisis de mortero: factores ambientales

Aumento de las regulaciones ambientales que afectan las prácticas de extracción de minerales

A partir de 2024, la Agencia de Protección Ambiental (EPA) ha implementado 127 regulaciones específicas que afectan la extracción de minerales, con costos estimados de cumplimiento que van desde $ 3.2 millones a $ 7.5 millones anuales para las compañías de derechos minerales medianos.

Categoría de regulación	Costo de cumplimiento	Año de implementación
Control de emisiones de metano	$ 1.8 millones	2023
Monitoreo de descarga de agua	$ 1.2 millones	2024
Requisitos de recuperación de tierras	$ 2.5 millones	2022

Creciente énfasis en la reducción de la huella de carbono en las industrias de combustibles fósiles

Objetivos de reducción de emisiones de carbono para compañías de extracción de minerales:

• Reducción del 30% para 2030
• Emisiones net-cero para 2050
• $ 4.6 mil millones de inversiones en toda la industria en tecnologías verdes

Riesgos potenciales de responsabilidad ambiental en inversiones de derechos minerales

Categoría de riesgo	Exposición financiera estimada	Probabilidad
Contaminación del agua subterránea	$ 12.3 millones	14%
Degradación de la tierra	$ 6.7 millones	8%
Interrupción del ecosistema	$ 9.5 millones	11%

Impacto del cambio climático en la viabilidad a largo plazo de las inversiones tradicionales de recursos energéticos

Cambios de inversión proyectados en el sector energético:

• Inversiones de energía renovable: aumento del 42% para 2030
• Inversiones de combustibles fósiles: 22% de disminución proyectada para 2035
• Riesgo estimado de activos varados: $ 18.6 mil millones para carteras de derechos minerales

Dorchester Minerals, L.P. Gastos actuales de cumplimiento ambiental: $ 2.9 millones anuales

Dorchester Minerals, L.P. (DMLP) - PESTLE Analysis: Social factors

Growing investor demand for Socially Responsible Investment (SRI) mandates comprehensive ESG reporting.

You cannot ignore the shift in capital markets toward Socially Responsible Investment (SRI) and Environmental, Social, and Governance (ESG) criteria anymore. It's not a fringe movement; it's a baseline expectation. As of 2025, nearly 90% of individual investors globally are interested in sustainable investing, and a staggering 99% of financial institutions now consider ESG data essential for their investment decisions.

This means for a publicly traded entity like Dorchester Minerals, L.P., meeting investor expectations is now about providing structured, transparent, and financially relevant disclosures-not just a nice story. While voluntary for many US companies, the pressure from institutional investors-who are themselves accountable for ESG risks in their portfolios-is real. Without credible ESG data, businesses risk exclusion from key sustainable finance opportunities.

Here's the quick math on DMLP's lean social footprint, which is a key factor in this analysis:

Metric	Value (As of late 2024/2025)	Significance to Social Factor
Total Employees	27	Extremely small workforce minimizes direct internal social risk (e.g., labor disputes, high-volume safety incidents).
Market Capitalization	$1.10 billion	High market value relative to employee count highlights the asset-heavy, operationally light business model.
Q3 2025 Net Income	$11,173,000	Strong financial performance dictates the capacity for future social/community investments, should the strategy change.

Public sentiment increasingly pressures energy companies on climate and environmental impact.

The energy sector is under intense public scrutiny, and that pressure filters down to every company, even a royalty owner. Public sentiment, especially in the US, shows a clear demand for more corporate accountability. For example, 69% of Americans believe major corporations are not doing enough to address climate change.

This general negative sentiment toward fossil fuels creates a reputational risk that Dorchester Minerals, L.P. cannot entirely escape. Activist groups are increasingly targeting the sources of funding for fossil fuel companies, which directly impacts DMLP's access to capital, even if its own operations are minimal. The partnership itself acknowledges that climate change concerns are driving demand for corporate transparency and a demonstrated commitment to sustainability goals.

The risk is not in direct operational failure, but in the perception that the company is profiting from activities the public views as socially detrimental.

The company's non-operator model insulates it from direct community operations but not from public perception.

The non-operator business model is Dorchester Minerals, L.P.'s primary shield against direct social risk. As a limited partnership that owns royalty and net profits interests (NPIs), DMLP does not control the actual drilling, completion, or day-to-day operations on its properties.

This structure means the Partnership is largely insulated from direct community relations issues like local employment, site-level safety incidents, or land-use disputes with surface owners. The responsibility for these critical, on-the-ground social factors rests squarely with the third-party operators who lease the land.

Still, this insulation is not complete. The company has extremely limited access to timely information, involvement, and operational control over the volumes of oil and natural gas produced. This lack of control means DMLP cannot enforce its own social standards, even if it wanted to, which can create an indirect risk. If an operator on DMLP's acreage causes a significant, highly-publicized social or environmental incident, the Partnership's name will inevitably be associated with it, damaging its brand and potentially impacting its $1.10 billion market capitalization.

• Mitigate on-site social risk by transferring operational liability to third-party operators.
• Eliminate the need for a large internal Human Resources and Safety department (only 27 employees).
• Create an indirect risk from the poor social or environmental practices of third-party operators.
• Limit the ability to influence positive social outcomes in the 28 states where its properties are located.

The non-operator model is a financial strength, but a social and reputational liability.

Dorchester Minerals, L.P. (DMLP) - PESTLE Analysis: Technological factors

Reliance on third-party operators means Dorchester Minerals, L.P. lacks direct control over the adoption of new drilling technology.

Dorchester Minerals, L.P. operates as a pass-through entity, holding mineral, royalty, and net profits interests across 28 states. This business model means you rely entirely on third-party operators, like ExxonMobil and others, to decide when and how to deploy new drilling technologies. So, while the industry is accelerating its digital transformation-adopting automation, smart sensors, and AI-powered systems to improve efficiency-your ability to capitalize on this is indirect.

You don't have to fund the capital expenditure (CapEx) for a new rig, but you also can't force an operator to use a more advanced, high-efficiency rig on your acreage. This creates a lag: your revenue growth from a specific property depends on the operator's individual budget and technology adoption cycle, not your own strategic decision. To be fair, this lack of direct control also shields you from the high operating costs and technical risks associated with running those complex systems.

Increased industry reliance on digital systems escalates cybersecurity risks for Dorchester Minerals, L.P. and its operators.

The oil and gas sector's rapid shift to digital systems-integrating Information Technology (IT) with Operational Technology (OT) networks-exponentially increases the attack surface. This is a major headwind for the entire supply chain, including your operators. GlobalData estimates that cybersecurity spending in the energy industry will rise to $10 billion by 2025.

For Dorchester Minerals, L.P., the primary risk is indirect: a successful ransomware attack or OT system breach on a key operator could halt production on your royalty properties, immediately impacting your cash flow. In Q3 2025, your cash receipts from Royalty Properties were approximately $33.0 million. A major disruption could put a dent in that number fast.

Threats are getting more sophisticated, including nation-state actors and attacks that specifically target remote access and operational data. Over 50% of industry leaders already report that cybersecurity is disrupting their operations in 2025.

• Ransomware: Encrypts data, causes operational downtime.
• OT Exploitation: Unauthorized access to control systems.
• Supply Chain Risk: Attackers target less-secure third-party systems to reach the main operator.

Advanced drilling and completion techniques (e.g., hydraulic fracturing) drive production volume from royalty properties.

The technological advancements in drilling are the engine for your royalty income. Specifically, the combination of horizontal drilling and multi-stage hydraulic fracturing (fracking) has unlocked vast shale resources, increasing production efficiency dramatically. This is why your properties, particularly those in the Permian Basin (Delaware and Midland Basins), continue to generate significant revenue.

The overall U.S. crude production is forecast to grow by 120,000 barrels per day in 2025, reaching 13.5 million barrels per day by year-end, with the Permian Basin contributing the most to this growth. This macro trend is what drives the well completions that boost your royalty checks. The rebound in Dorchester Minerals, L.P.'s oil sales volumes, which led to an 11% quarter-over-quarter increase in the Q3 2025 distribution, is a direct result of this sustained operator activity and technological efficiency.

Here's the quick math on recent receipts:

Quarter (2025)	Cash Receipts from Royalty Properties (Approx.)	Q-o-Q Distribution Change
Q2 2025	$26.6 million	N/A
Q3 2025	$33.0 million	+11% (Distribution)

This jump in receipts from Q2 2025 to Q3 2025 shows the immediate, positive impact of successful drilling and completion campaigns by your operators.

New seismic imaging and data analytics improve the value of non-producing mineral interests.

Dorchester Minerals, L.P. holds a portfolio of both producing and non-producing mineral interests. The value of those non-producing assets is directly tied to the ability to prove up their resource potential. New seismic imaging and data analytics are making this process faster and cheaper.

Advanced 3D and 4D seismic imaging, combined with Artificial Intelligence (AI) interpretation, significantly improves the accuracy of subsurface data. This technology can reduce mineral exploration costs by approximately 40% compared to conventional survey techniques. For a royalty owner, this means:

• Lower Risk: Operators are more likely to drill on your non-producing acreage if the seismic data reduces the risk of a dry hole.
• Higher Lease Bonus: Better data increases the perceived value of the mineral rights, potentially leading to higher lease bonus payments. Dorchester Minerals, L.P. received approximately $4.2 million in lease bonus and other income in Q2 2025.
• Asset Valuation: The ability to reprocess legacy 3D seismic data with modern computing power is a cost-effective way to generate a detailed understanding of subsurface properties, which helps you better value your non-producing acreage for future acquisitions or sales.

Dorchester Minerals, L.P. (DMLP) - PESTLE Analysis: Legal factors

The Partnership is temporarily non-compliant with Nasdaq audit committee rules as of November 2025.

You need to know that Dorchester Minerals, L.P. is currently facing a temporary governance issue that impacts its Nasdaq Global Select Market listing status. Following the passing of a key manager and Advisory Committee member, C.W. Russell, on October 30, 2025, the Advisory Committee-which functions as the audit committee-was reduced from three members to two.

This reduction means the Partnership is non-compliant with Nasdaq Listing Rules 5615(a)(4)(C) and 5605(c)(2)(A), which require an audit committee to have at least three independent members. This is a common, albeit defintely serious, risk when a small board loses a member.

A cure period is in place until at least April 28, 2026, to restore the required board independence.

Nasdaq acknowledged the non-compliance on November 10, 2025, and granted a cure period.

The Partnership must regain compliance by appointing a qualified replacement manager to the Advisory Committee by the earlier of two dates. The failure to meet this deadline would put the Partnership at risk of delisting, which would severely impact liquidity and investor confidence.

Compliance Deadline Scenario	Required Compliance Date	Nasdaq Rule
If the next annual unitholders' meeting is held before April 28, 2026	No later than April 28, 2026	5605(c)(4)
If the next annual unitholders' meeting is held after April 28, 2026	The earlier of the meeting date or October 30, 2026	5605(c)(4)

Operations are subject to extensive federal, state, and tribal regulatory requirements in 28 states.

As a mineral and royalty interest owner, Dorchester Minerals, L.P.'s operational footprint is geographically vast and legally complex. The Partnership owns interests in properties located across 28 states and is subject to a layered set of regulatory requirements.

While the Partnership does not directly operate the properties, the cash flow from its Royalty Properties and Net Profits Interest (NPI) is inherently tied to the operators' compliance with this vast regulatory framework.

The regulatory burden covers several critical areas:

• Federal and State Environmental Laws: Compliance with the Clean Water Act (CWA) and analogous state laws, including regulations on wastewater discharge and storm water permits.
• Tribal Regulations: Operations on federal and Indian lands introduce specific regulatory requirements, such as those governing hydraulic fracturing and wellbore integrity.
• Production Regulations: State authorities impose rules on the ratability of production and often prohibit the venting or flaring of natural gas, which can limit output from the underlying properties.

Any non-compliance by the operators can lead to penalties, clean-up costs, or a suspension of operations, which would directly reduce the Partnership's cash available for distribution.

Compliance with complex tax implications for non-US investors on the $0.689883 Q3 2025 distribution.

The Master Limited Partnership (MLP) structure of Dorchester Minerals, L.P. creates a complex tax situation, particularly for non-US investors. For the Q3 2025 cash distribution of $0.689883 per common unit, the tax treatment is a significant legal factor.

As per the Qualified Notice for the distribution, brokers and nominees are required to treat 100.0% of the distribution to non-U.S. investors as income that is 'effectively connected with a United States trade or business' (ECI).

This ECI treatment means distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate for individuals or corporations, which can be a substantial liability. Here's the quick math: the full distribution is subject to the highest marginal rate, not just the net taxable portion, which can be a major disincentive for international capital.

Also, under Treasury Regulation Section 1.1446(f)-4(c)(2)(iii), the Partnership has stated that 100.0% of the Q3 2025 distribution is considered to be in excess of cumulative net income.

Dorchester Minerals, L.P. (DMLP) - PESTLE Analysis: Environmental factors

The environmental landscape for Dorchester Minerals, L.P. is defined by increasing regulatory pressure at the state level and significant uncertainty from a shifting federal stance, directly threatening the cash flow from your Net Profits Interest (NPI) properties. You are a mineral owner, not an operator, so your direct liability is limited. But honestly, the financial risk is just repackaged: higher operator costs mean lower net profits for you.

The next concrete step is for the Board to quickly appoint a new independent director to resolve the Nasdaq compliance issue. This is a governance fix, not an operational one, but it needs to be an immediate priority to stabilize investor confidence.

Extensive federal and state environmental regulations govern oil and gas production and waste management.

Your properties, spread across 28 states, are subject to a complex and growing web of environmental regulations, with the most impactful changes happening in key operating areas like Texas and New Mexico. The cost of compliance for the operators on your acreage is rising, which directly reduces the revenue you receive from your Net Profits Interest (NPI) and, less directly, your Royalty Properties. These regulations cover everything from air quality and methane emissions to water disposal and well plugging.

The regulatory environment in 2025 is a two-sided coin:

• State-Level Stricter Compliance: States like New Mexico, where DMLP has significant interests, have some of the nation's toughest rules. New Mexico's Methane Rule, for instance, requires operators to capture 98% of their natural gas by the end of 2026. Satellite data from 2024-2025 already shows New Mexico's methane intensity at 1.2% in the Delaware sub-basin, significantly lower than Texas's 3.1%, indicating higher operator investment in capture technology in that state.
• Federal Regulatory Volatility: The U.S. Environmental Protection Agency (EPA) is in flux. While the EPA's 2024 rules to reduce methane and volatile organic compounds (VOCs) from new and existing sources (NSPS OOOOb/EG OOOOc) remain, compliance deadlines were extended in July 2025. Moreover, Congress disapproved the Waste Emissions Charge (WEC)-the methane fee-in March 2025 until 2034, removing a major near-term financial penalty for high-emitting operators. This creates uncertainty; operators may delay investments, but the underlying regulations are still there.

Future stricter environmental laws could significantly increase production costs and reduce cash flow.

New regulations translate directly into higher operating expenses for the third-party operators developing your mineral and royalty properties. For your NPIs, which represent 96.97% of the net profits from the underlying properties, every dollar of increased operating cost is a dollar lost from your cash distribution.

Here's the quick math on how cost pressure hits your 2025 results. If environmental compliance costs rise by just 5% across the board, that increase is borne by the NPI properties first. You felt commodity price pressure this year, with Net Income for the six months ended June 30, 2025, at $29,989,000, down from $41,795,000 in the same period of 2024. Any new, unbudgeted environmental expense will further compress that margin.

A key example is the Texas Railroad Commission's (RRC) new comprehensive oilfield waste management rules, effective July 1, 2025. These rules, the first major overhaul in 40 years, impose new requirements on the design, construction, monitoring, and closure of waste pits, and introduce enhanced accountability for waste haulers. This is an immediate, non-discretionary cost increase for all operators in Texas. It's a defintely a new headwind.

The risk of environmental costs and liabilities from remediation is inherent in the mineral ownership business.

As an owner of mineral and royalty interests, you always face the risk of being drawn into environmental remediation costs, particularly under joint and several liability statutes like the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), or Superfund, and comparable state laws. While the operator holds the primary responsibility, a failed or bankrupt operator could leave you, the mineral owner, as a party with a financial interest in the property, potentially liable for cleanup costs.

This risk is amplified by the sheer scale of your portfolio, covering 594 counties and parishes in 28 states. The long-term liability for abandoned or orphaned wells is a growing national issue, and while DMLP does not operate the wells, the properties themselves are the ultimate source of that liability, which could impact their market value or future development potential.

The company's non-operator status shifts direct environmental liability to the lessee, but not the ultimate risk.

Your business model as a non-operator is a great defense against day-to-day operational liability, but it is not a perfect shield. The direct costs of compliance, remediation, and potential fines are the operator's problem first. However, the costs on your Net Profits Interest properties are deducted as production costs before you get your share of the net profits. This means the financial burden is shifted to your cash flow, not eliminated.

The table below summarizes the financial exposure points based on the first half of 2025 performance, illustrating the cash flow that is vulnerable to operator cost increases from new environmental rules.

2025 Financial Exposure Metric	Q1 2025 Amount	Q2 2025 Amount	Impact of Environmental Costs
Operating Revenues (3 Months Ended)	$43,164,000	$32,395,000	Revenue is the starting point before operator's costs, including environmental compliance, are deducted.
Net Income (3 Months Ended)	$17,642,000	$12,347,000	A direct measure of profitability, highly sensitive to any increase in operator's deductible costs.
Royalty Property Cash Receipts (Q1)	Approximately $34.2 million	N/A (Not Separately Reported)	Less directly affected, but still subject to regulatory impacts on production volumes and market access.
Net Profits Interest (NPI) Cash Receipts (Q1)	Approximately $4.8 million	N/A (Not Separately Reported)	Most sensitive: environmental costs are a direct deduction, reducing this cash flow stream.