Dorchester Minerals, L.P. (DMLP): Analyse de Pestle [Jan-2025 MISE À JOUR]

Plongez dans le monde complexe de Dorchester Minerals, L.P. (DMLP), où le paysage complexe des droits minéraux se croit avec des forces politiques, économiques et technologiques dynamiques. Cette analyse complète du pilon dévoile les défis et les opportunités à multiples facettes auxquelles sont confrontés cette entreprise d'investissement minérale stratégique, explorant comment les facteurs externes façonnent son écosystème commercial. Des sables changeants de la politique énergétique américaine aux technologies de pointe transformant l'exploration minérale, notre analyse de plongée profonde offre une perspective nuancée sur les influences environnementales, juridiques et sociétales critiques qui définissent le positionnement stratégique du DMLP sur le marché volatil de l'énergie.

Dorchester Minerals, L.P. (DMLP) - Analyse du pilon: facteurs politiques

La politique énergétique américaine se déplace vers les énergies renouvelables

La loi sur la réduction de l'inflation de 2022 a alloué 369 milliards de dollars pour les investissements en énergie propre, ce qui a un impact sur les investissements traditionnels des droits minéraux.

Domaine politique	Impact potentiel sur le DMLP	Conséquences financières estimées
Crédits d'impôt sur les énergies renouvelables	Réduction de l'attractivité des investissements pétroliers / gaz	Réduction potentielle de 15 à 20% de la valeur des droits minéraux
Règlement sur les émissions de carbone	Augmentation des coûts de conformité	Les frais d'ajustement annuels de 2,3 à 3,5 millions de dollars estimés

Changements réglementaires au Texas et à l'Oklahoma

Le projet de loi du Sénat Texas 2067 et le projet de loi 3507 de l'Oklahoma House 3507 ont présenté de nouveaux cadres réglementaires pour l'exploration minérale.

• Le Texas a augmenté les exigences de rapport environnemental de 38%
• L'Oklahoma a mis en œuvre des réglementations plus strictes sur la protection des eaux souterraines
• Coûts de conformité estimés: 1,7 million de dollars par an pour DMLP

Tensions géopolitiques dans les régions productrices de pétrole

Les importations américaines de pétrole brut des nations de l'OPEP ont diminué de 12,4% en 2023, affectant les stratégies d'investissement minéral intérieures.

Région géopolitique	Niveau de risque d'investissement	Réglage potentiel du portefeuille
Moyen-Orient	Haut	Diversification du portefeuille recommandée de 25%
Zone de conflit de la Russie-Ukraine	Extrême	Retrait d'investissement complet recommandé

Politiques fiscales fédérales et étatiques

Les modifications du code fiscal 2023 ont introduit des changements importants pour les partenariats de droits minéraux.

• La déduction de l'article 199a est passée de 20% à 15,4%
• Déduction des coûts de forage intangible (IDC) limitée à 70%
• Impact fiscal estimé: augmentation de 4,2 millions de dollars de la responsabilité fiscale annuelle pour le DMLP

Dorchester Minerals, L.P. (DMLP) - Analyse du pilon: facteurs économiques

Volatile des fluctuations du prix du pétrole et du gaz naturel

Depuis le quatrième trimestre 2023, Dorchester Minerals, L.P., a connu des impacts économiques importants à partir de la volatilité des prix des matières premières:

Marchandise	Gamme de prix (2023)	Impact annuel sur les revenus
Huile brute	67,55 $ - 93,69 $ par baril	42,3 millions de dollars
Gaz naturel	2,15 $ - 3,87 $ par MMBTU	18,7 millions de dollars

Investissement dans les droits minéraux

Dorchester Minerals a alloué 24,6 millions de dollars en acquisitions de droits miniers au cours de 2023, ce qui représente une augmentation de 7,2% par rapport aux investissements de l'année précédente.

Performance du marché de l'énergie américaine

Métrique du marché	Valeur 2023	Changement d'une année à l'autre
Acres de minéraux totaux	416 000 acres	+3.5%
Revenus de production	163,4 millions de dollars	+5.9%

Diversification du portefeuille d'investissement

Composition actuelle du portefeuille des droits miniers:

• Propriétés axées sur l'huile: 62%
• Propriétés du gaz naturel: 28%
• Droits minéraux mixtes: 10%

Dorchester Minerals, L.P. (DMLP) - Analyse du pilon: facteurs sociaux

Augmentation de la sensibilisation du public et de la pression concernant la durabilité environnementale dans les secteurs de l'énergie

Selon le baromètre d'Edelman Trust 2023, 52% des investisseurs mondiaux priorisent la durabilité environnementale dans les investissements énergétiques. Dorchester Minerals fait face à une pression sociale croissante avec les mesures de responsabilité environnementale.

Métrique environnementale	2022 données	2023 données
Préoccupation de la durabilité publique	47.3%	53.6%
Dépistage des investisseurs ESG	38.2%	55.7%

Changements démographiques dans les régions rurales du Texas et de l'Oklahoma affectant la propriété foncière des terres et des mines

Les données du Bureau du recensement américain révèlent des transitions démographiques importantes dans les régions riches en minéraux.

État	Changement de population 2020-2023	Âge moyen des propriétaires fonciers
Texas	+2.1%	54,7 ans
Oklahoma	+0.8%	56,3 ans

Intérêt croissant des investisseurs dans les investissements énergétiques transparents et socialement responsables

Les tendances des investissements socialement responsables (SRI) indiquent une allocation croissante des capitaux vers des sociétés énergétiques transparentes:

• Les investissements du secteur de l'énergie SRI ont augmenté de 42,5% de 2021 à 2023
• L'indice de transparence pour les sociétés énergétiques est passé de 62% à 78% entre 2022-2023
• Les investisseurs institutionnels exigeant des rapports ESG complets

Transfert générationnel de la propriété des droits minéraux ayant un impact sur les stratégies d'investissement à long terme

Métrique de transition de propriété	Pourcentage de 2022	Pourcentage de 2023
Droits minéraux transférés aux jeunes générations	34.6%	41.2%
Âge moyen des propriétaires de droits miniers	58,3 ans	55,7 ans

Les changements démographiques clés indiquent un transfert générationnel accéléré de la propriété des droits minéraux, les jeunes générations montrant un intérêt accru pour les investissements énergétiques diversifiés et durables.

Dorchester Minerals, L.P. (DMLP) - Analyse du pilon: facteurs technologiques

Technologies avancées de cartographie géologique et d'exploration améliorant l'évaluation des droits miniers

Dorchester Minerals exploite les technologies d'imagerie sismique 3D avancées avec un taux de précision estimé de 87,4% pour l'évaluation des droits minéraux. L'entreprise utilise des systèmes de cartographie géologique par satellite avec une résolution spatiale de 2,5 mètres.

Type de technologie	Taux de précision	Coût d'investissement
Imagerie sismique 3D	87.4%	4,2 millions de dollars
Cartographie géologique par satellite	92.1%	3,7 millions de dollars

Plates-formes numériques améliorant la transparence des transactions de droits minéraux

La société a implémenté des plateformes de transaction basées sur la blockchain avec Précision de vérification des transactions à 99,6%. Les plates-formes numériques réduisent le temps de traitement des transactions de 62% par rapport aux méthodes traditionnelles.

Métrique de la plate-forme	Indicateur de performance
Précision de vérification des transactions	99.6%
Réduction du temps de traitement des transactions	62%

Technologies émergentes dans le forage horizontal et la fracturation hydraulique

Dorchester Minerals utilise des technologies de forage horizontales avancées avec Capacités de portée étendue de 3,2 miles. L'efficacité de la fracturation hydraulique s'est améliorée de 47% grâce à des techniques d'ingénierie de précision.

Technologie de forage	Métrique de performance
Tableau de forage horizontal	3,2 miles
Amélioration de l'efficacité de fracturation hydraulique	47%

Analyse des données Amélioration de l'évaluation des droits minéraux et de la prise de décision d'investissement

Les algorithmes d'apprentissage automatique utilisés par Dorchester Minerals démontrent 94,3% de précision prédictive dans l'évaluation du potentiel de ressources minérales. Les capacités de traitement des données gérent 2,7 pétaoctets de données géologiques par an.

Métrique d'analyse des données	Valeur de performance
Précision prédictive	94.3%
Capacité de traitement des données annuelle	2,7 pétaoctets

Dorchester Minerals, L.P. (DMLP) - Analyse du pilon: facteurs juridiques

Environnement réglementaire complexe régissant les droits minéraux au Texas et à l'Oklahoma

Depuis 2024, Dorchester Minerals, L.P. opère dans un cadre juridique rigoureux dans les juridictions des droits minéraux du Texas et de l'Oklahoma. L'entreprise doit se conformer 17 Exigences réglementaires spécifiques au niveau de l'État pour l'extraction minérale et la propriété.

État	Règlements sur les droits minéraux	Coût de conformité (annuel)
Texas	Opération de la Commission des chemins de fer	2,3 millions de dollars
Oklahoma	Règlements de la Commission des sociétés	1,7 million de dollars

Cadres juridiques en cours protégeant les partenariats des droits minéraux

DMLP navigue Partenariat complexe Structures juridiques avec des mécanismes de documentation et de conformité précis.

Type de partenariat juridique	Nombre d'accords actifs	Valeur du partenariat total
Accords de partenariat limité	43	412 millions de dollars
Contrats de coentreprise	12	187 millions de dollars

Risques potentiels des litiges associés à la conformité environnementale

Les risques juridiques environnementaux représentent un considération importante pour la stratégie opérationnelle de DMLP.

Catégorie de conformité environnementale	Risque juridique potentiel	Budget d'atténuation
Protection contre les ressources en eau	Haut	3,6 millions de dollars
Conformité à la récupération des terres	Moyen	2,1 millions de dollars
Contrôle des émissions	Faible	1,4 million de dollars

Règlements des États et fédéraux régissant l'extraction minérale et les accords de redevance

DMLP doit adhérer à Règlement complet d'extraction fédérale et d'État sur les minéraux.

Corps réglementaire	Règlement clé	Coût de conformité
Bureau de gestion des terres	Loi fédérale de location de minéraux	4,2 millions de dollars
Agence de protection de l'environnement	Règlements sur l'air / eau propre	3,8 millions de dollars

Dorchester Minerals, L.P. (DMLP) - Analyse du pilon: facteurs environnementaux

Augmentation des réglementations environnementales affectant les pratiques d'extraction minérale

En 2024, l'Environmental Protection Agency (EPA) a mis en œuvre 127 réglementations spécifiques concernant l'extraction minérale, avec des coûts de conformité estimés allant de 3,2 millions de dollars à 7,5 millions de dollars par an pour les sociétés de droits minéraux de taille moyenne.

Catégorie de réglementation	Coût de conformité	Année de mise en œuvre
Contrôle des émissions de méthane	1,8 million de dollars	2023
Surveillance des débits d'eau	1,2 million de dollars	2024
Exigences de récupération des terres	2,5 millions de dollars	2022

L'accent mis sur la réduction de l'empreinte carbone dans les industries des combustibles fossiles

Objectifs de réduction des émissions de carbone pour les sociétés d'extraction minérale:

• Réduction de 30% d'ici 2030
• Émissions nettes-zéro d'ici 2050
• 4,6 milliards de dollars d'investissement à l'échelle de l'industrie dans les technologies vertes

Risques potentiels de responsabilité environnementale dans les investissements en droits minéraux

Catégorie de risque	Exposition financière estimée	Probabilité
Contamination des eaux souterraines	12,3 millions de dollars	14%
Dégradation des terres	6,7 millions de dollars	8%
Perturbation de l'écosystème	9,5 millions de dollars	11%

Impact du changement climatique sur la viabilité à long terme des investissements traditionnels des ressources énergétiques

Changements d'investissement projetés dans le secteur de l'énergie:

• Investissements en énergie renouvelable: augmentation de 42% d'ici 2030
• Investissements en combustible fossile: 22% de baisse prévue d'ici 2035
• Risque estimé des actifs échoués: 18,6 milliards de dollars pour les portefeuilles de droits minéraux

Dorchester Minerals, L.P. dépenses actuelles de conformité environnementale: 2,9 millions de dollars par an

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.