UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------------
FORM 8-K/A
-------------------------
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 31, 2003
----------------
DORCHESTER MINERALS, L.P.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 000-50175 81-0551518
- ------------------------------- ----------- ------------------
(State or other jurisdiction of Commission (I.R.S. Employer
incorporation or organization) File Number Identification No.)
3738 Oak Lawn, Suite 300
Dallas, Texas 75219
--------------------------------------------------
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code: (214) 559-0300
--------------
N/A
----------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Item 2. ACQUISITION OR DISPOSITION OF ASSETS.
On January 31, 2003, Dorchester Hugoton, Ltd. contributed assets to us and
transferred certain assets to Dorchester Minerals Operating LP and then
liquidated. Owners of overriding royalty interests ("ORRIs") in Republic Royalty
Company ("Republic") contributed their Republic ORRIs to Republic, then Republic
and Spinnaker Royalty Company, L.P. ("Spinnaker") contributed their working
interest properties to Dorchester Minerals Operating LP and merged with us.
Item 5. OTHER EVENTS.
Dorchester Minerals, L.P. Unaudited Pro Forma Data
The following reflects unaudited pro forma data related to the combination
discussed in Item 2. The unaudited pro forma combined data assumes the
combination had taken place on September 30, 2002 with respect to the unaudited
pro forma combined balance sheet and as of January 1, 2001 with respect to the
unaudited pro forma combined statements of operations. For complete unaudited
pro forma combined financial statements, see Item 7(b). The historical financial
data of Republic, the Republic ORRIs and Spinnaker should be read in conjunction
with the data below, see Item 7(a). In addition, the historical financial data
of Dorchester Hugoton contained in Dorchester Minerals, L.P.'s Registration
Statement on Form S-4 (333-882882) dated October 30, 2002, and Supplement No. 1
to the Registration Statement, dated December 13, 2002, should be read in
conjunction with the data below.
Balance Sheet Data (September 30, 2002) (in thousands):
Total assets........................................................... $252,748
Statement of Operations Data (in thousands):
Year Ended Nine Months Ended
December 31, 2001 September 30, 2002
----------------- ------------------
Net Revenues............................. $49,451 $27,158
Depreciation, Depletion and Amortization. $24,753 $20,271
Net Earnings ............................ $20,225 $2,369
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements of Businesses Acquired.
--------------------------------------------
The following is hereby incorporated by reference to Dorchester Minerals,
L.P. Registration Statement on Form S-4, Registration No. 333-88282, dated
October 30, 2002, and Supplement No. 1 to the Registration Statement dated
December 13, 2002:
Republic Royalty Company and Affiliated Partnership
---------------------------------------------------
Independent Auditor's Report
Combined Balance Sheets, December 31, 2001 and 2000 and June 30, 2002
Combined Statements of Operations, Years ended December 31, 2001, 2000
and 1999 and the Six Month Periods ended June 30, 2002 and 2001
Combined Statements of Owners' Capital, Years ended December 31, 2001, 2000
and 1999 and the Six Month Periods ended June 30, 2002
Combined Statements of Cash Flows, Years ended December 31, 2001, 2000
and 1999 and the Six Month Periods ended June 30, 2002 and 2001
Notes to Combined Financial Statements
Combined Balance Sheets, September 30, 2002
Combined Statements of Operations, Nine Month Periods ended September 30,
2002 and 2001 (unaudited)
Combined Statements of Owners' Capital, Nine Month Periods ended
September 30, 2002 and 2001 (unaudited)
Combined Statements of Cash Flows, Nine Month Periods ended September 30,
2002 and 2001 (unaudited)
Notes to Combined Financial Statements
Republic Royalty Company-Unaffiliated Republic ORRIs Owners
-----------------------------------------------------------
Independent Auditor's Report
Balance Sheets, December 31, 2001 and 2000 and June 30, 2002
Statements of Operations, Years ended December 31, 2001, 2000 and 1999 and
the Six Month Periods ended June 30, 2002 and 2001
Statements of ORRIs Owners' Equity, Years ended December 31, 2001, 2000
and 1999 and the Six Month Periods ended June 30, 2002
Statements of Cash Flows, Years ended December 31, 2001, 2000 and 1999
and the Six Month Periods ended June 30, 2002 and 2001
Notes to Financial Statements
Balance Sheet, September 30, 2002
Statements of Operations, Nine Month Periods ended September 30, 2002
and 2001 (unaudited)
Statements of ORRI Owners' Equity, Nine Month Periods ended September 30,
2002 and 2001 (unaudited)
Statements of Cash Flows, Nine Month Periods ended September 30, 2002
and 2001 (unaudited)
Notes to Financial Statements
Spinnaker Royalty Company, L.P.
-------------------------------
Independent Auditor's Report
Balance Sheets, December 31, 2001 and 2000 and June 30, 2002
Statements of Operations, Years ended December 31, 2001, 2000 and 1999
and the Six Month Periods ended June 30, 2002 and 2001
Statements of Partners' Capital, Years ended December 31, 2001, 2000
and 1999 and the Six Months Period ended June 30, 2002
Statements of Cash Flows, Years ended December 31, 2001, 2000 and 1999
and the Six Month Periods ended June 30, 2002 and 2001
Notes to Financial Statements
Balance Sheet, September 30, 2002
Statements of Operations, Nine Month Periods ended September 30, 2002
and 2001 (unaudited)
Statements of Partners' Capital, Nine Month Periods ended September 30,
2002 and 2001 (unaudited)
Statements of Cash Flows, Nine Month Periods ended September 30, 2002
and 2001 (unaudited)
Notes to Financial Statements
(b) Pro Forma Financial Information.
--------------------------------
Index to Pro Forma Financial Information
Introduction to Pro Forma Financial Information
Unaudited Pro Forma Combined Balance Sheet at September 30, 2002
Unaudited Pro Forma Combined Statement of Operations for the Year Ended
December 31, 2001
Unaudited Pro Forma Combined Statement of Operations for the Nine Months
Ended September 30, 2002
Notes to Unaudited Pro Forma Combined Financial Information.
(c) Exhibits
--------
2.1 Combination Agreement dated as of December 13, 2001 by and between
Republic, Spinnaker, Dorchester, the Registrant and certain other
parties.
2.2 Contribution Agreement dated as of December 13, 2001 by and between
SAM Partners, Ltd., Vaughn Petroleum, Ltd., Smith Allen Oil & Gas,
Inc., P.A. Peak, Inc., James E. Raley, Inc., Dorchester Minerals
Management GP LLC, Dorchester Minerals Management LP.
INDEX TO PRO FORMA FINANCIAL INFORMATION
Dorchester Minerals, L.P.: Page
Introduction to Pro Forma Financial Information........................ P-1
Unaudited Pro Forma Combined Balance Sheet as of September 30, 2002.... P-2
Unaudited Pro Forma Combined Statement of Operations for the Year
Ended December 31, 2001........................................ P-3
Unaudited Pro Forma Combined Statement of Operations for the Nine Month
Period Ended September 30, 2002................................ P-4
Notes to Unaudited Pro Forma Combined Financial Information............ P-5
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS OF
DORCHESTER MINERALS, L.P.
The following unaudited pro forma combined financial information gives
effect to the combination of Dorchester Hugoton, Ltd. ("Dorchester Hugoton"),
Republic Royalty Company ("Republic") and affiliated partnership, owners of
overriding royalty interests in Republic ("Republic ORRIs"), and Spinnaker
Royalty Company, L.P. ("Spinnaker") (collectively, "the Combining Entities"), to
be accounted for using the purchase method of accounting. The pro forma combined
balance sheet has been prepared as if the combination occurred on September 30,
2002. The pro forma combined statements of operations for the nine months ended
September 30, 2002 and for the year ended December 31, 2001 have been prepared
as if the combination occurred on January 1, 2001.
The pro forma financial information is presented for illustrative purposes
only and is not necessarily indicative of what the combined financial position
or results of operations would actually have been if the combination had, in
fact, occurred on those dates, or what the financial position or results of
operations may be for any future date or period. This pro forma financial
information is based upon the respective historical financial statements of the
Combining Entities and related notes and should be read in conjunction with
those statements and notes included in the Registration Statement filed on Form
S-4 filed by Dorchester Minerals, L.P., dated October 30, 2002, and Supplement
No. 1 to the Registration Statement, dated December 13, 2002.
P-1
DORCHESTER MINERALS, L.P.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
SEPTEMBER 30, 2002
(IN THOUSANDS)
Dorchester Republic Pro forma Pro forma
Hugoton Republic ORRIs Spinnaker adjustments combined
--------- -------- -------- --------- ----------- ---------
Current assets:
Cash and cash equivalents ............$ 18,111 $ 999 $ -- $ 597 $ (19,707) b $ --
Investment - available for sale ...... 4,083 -- -- -- (4,083) b --
Receivables .......................... 1,880 3,159 2,803 1,184 (3,665) a
(633) b 4,728
Prepaid expenses and other
current assets ............... 341 -- -- -- (341) b --
--------- -------- ------- -------- --------- -------
Total current assets ........ 24,415 4,158 2,803 1,781 (28,429) 4,728
Property and equipment - at cost ...... 35,035 4,300 64,961 30,540 2,031 a
131,634 c 268,501
Less depreciation, depletion
and amortization ............. (20,481) (3,002) (38,010) (19,123) (575) a
60,710 c (20,481)
--------- ------- -------- -------- --------- --------
Net property and equipment.. 14,554 1,298 26,951 11,417 193,800 248,020
--------- ------- -------- -------- --------- --------
Total assets ............... $ 38,969 $ 5,456 $ 29,754 $ 13,198 $ 165,371 $252,748
========= ======= ======== ======== ========= ========
Current liabilities:
Accounts payable and other current
liabilities .......................$ 599 $ 1,009 $ 862 $ 268 $ (862) a
(1,876) b $ --
Production and property taxes payable. 318 -- -- -- (318) b --
Nonaffiliated ORRI owner payable ..... -- 2,803 -- -- (2,803) a --
Royalties payable .................... 370 -- -- -- (370) b --
Distributions payable ................ 2,931 -- -- -- (2,931) b --
--------- ------- -------- -------- --------- --------
Total current liabilities ... 4,218 3,812 862 268 (9,160) --
Partnership capital
General partners ..................... 255 1,644 -- (346) 1,455 a
6,624 d 9,632
Limited partners ..................... 32,930 -- 28,892 13,276 (17,702) b
192,344 c
(6,624) d 243,116
Accumulated other comprehensive income 1,566 -- -- -- (1,566) b --
--------- ------- -------- -------- --------- --------
Total partnership capital ....... 34,751 1,644 28,892 12,930 174,531 252,748
--------- ------- -------- -------- --------- --------
Total liabilities
and partnership capital ......$ 38,969 $ 5,456 $ 29,754 $ 13,198 $ 165,371 $252,748
========= ======= ======== ======== ========= ========
See notes to unaudited pro forma combined financial information.
P-2
DORCHESTER MINERALS, L.P.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2001
(IN THOUSANDS, EXCEPT PER UNIT DATA)
Dorchester Republic Pro forma Pro forma
Hugoton Republic ORRIs Spinnaker adjustments combined
--------- -------- -------- --------- ----------- ---------
Net operating revenues:
Net profits interest...................$ -- $ -- $ -- $ -- $ 20,524 b $ 20,524
Natural gas sales...................... 27,153 -- -- -- (27,153) b --
Royalties.............................. -- 2,549 15,218 10,871 -- 28,638
Lease bonus............................ -- 22 128 34 -- 184
Other.................................. 192 49 291 39 (466) b 105
Production payment..................... (566) -- -- -- 566 b --
-------- -------- ------- -------- ----------- --------
Total net operating revenues 26,779 2,620 15,637 10,944 (6,529) 49,451
Cost and expenses
Operating.............................. 3,160 -- -- -- (3,160) b --
Production taxes....................... 1,721 231 1,520 827 (1,721) b 2,578
Depreciation, depletion and
amortization......................... 2,105 155 3,102 1,442 143 a
17,806 c 24,753
General and administrative............. 1,764 158 776 613 (461) b
267 a
(1,178) e 1,939
Facilitation amount.................... -- -- 604 -- (604) a --
Management fees........................ 605 -- -- -- (605) f --
-------- -------- -------- -------- ---------- --------
Operating expenses..................... 9,355 544 6,002 2,882 10,487 29,270
-------- -------- -------- -------- ---------- --------
Operating Income.............. 17,424 2,076 9,635 8,062 (17,016) 20,181
Other
Investment income...................... (897) -- -- -- 897 d --
Interest expense....................... 36 -- -- -- (36) d --
Other income........................... (66) -- -- -- 22 d (44)
-------- -------- -------- -------- ---------- --------
Total other income............ (927) -- -- -- 883 (44)
-------- -------- -------- -------- ---------- --------
Net Earnings.............................$ 18,351 $ 2,076 $ 9,635 $ 8,062 $ (17,899) $ 20,225
======== ======== ======== ======== =========== ========
Allocation of net earnings
General partners................................................................................. $ 256
========
Limited partners................................................................................. $ 19,969
========
Net earnings per common unit....................................................................... $ .74
========
Weighted average common units outstanding.......................................................... $ 27,040
========
Net earnings after transaction expenses............................................................ $ 19,047
========
Allocation of net earnings after transaction expenses
General partners................................................................................. $ 209
========
Limited partners................................................................................. $ 18,838
========
Net earnings per common unit after transaction expenses............................................ $ .70
========
Weighted average common units outstanding........................................................... $ 27,040
========
See notes to unaudited pro forma combined financial information.
P-3
DORCHESTER MINERALS, L.P.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2002
(IN THOUSANDS, EXCEPT PER UNIT DATA)
Dorchester Republic Pro forma Pro forma
Hugoton Republic ORRIs Spinnaker adjustments combined
--------- -------- -------- --------- ----------- ---------
Net operating revenues:
Net profits interest.................. $ -- $ -- $ -- $ -- $ 9,499 b $ 9,499
Natural gas sales..................... 12,761 -- -- -- (12,761) b --
Royalties............................. -- 1,701 10,029 5,891 -- 17,621
Lease bonus........................... -- 2 9 15 -- 26
Other................................. 96 71 422 190 (767) b 12
-------- -------- -------- --------- ----------- ---------
Total net operating revenues 12,857 1,774 10,460 6,096 (4,029) 27,158
Cost and expenses
Operating............................. 2,058 -- -- -- (2,058) b --
Production taxes...................... 629 149 878 467 (629) b 1,494
Depreciation, depletion and amortization 1,616 127 2,643 1,278 42 a
14,565 c 20,271
General and administrative............ 1,223 364 2,092 786 256 a
(339) b
61 g
(1,419) e 3,024
Facilitation amount................... -- -- 298 -- (298) a --
Management fees....................... 381 -- -- -- (381) f --
------- -------- -------- --------- ----------- --------
Operating expenses.................... 5,907 640 5,911 2,531 9,800 24,789
------- -------- -------- --------- ----------- --------
Operating Income ... 6,950 1,134 4,549 3,565 (13,829) 2,369
Investment income...................... (300) -- -- -- 300 d --
Interest expense....................... 14 -- -- -- (14) d --
Other expense.......................... 21 -- -- -- (21) d --
------- -------- -------- --------- ----------- --------
Total other income..................... (265) -- -- -- 265 --
------- -------- -------- --------- ----------- --------
Net Earnings.............................$ 7,215 $ 1,134 $ 4,549 $ 3,565 $ (14,094) $ 2,369
======= ======== ======== ========= =========== ========
Allocation of net earnings
General partners................................................................................. $ (143)
========
Limited partners................................................................................. $ 2,512
========
Net earnings per common unit....................................................................... $ 0.09
=========
Weighted average common units outstanding.......................................................... 27,040
========
Net earnings after transaction expenses............................................................ $ 950
========
Allocation of net earnings after transaction expenses
General partners................................................................................. $ (200)
========
Limited partners................................................................................. $ 1,150
========
Net earnings per common unit after transaction expenses............................................ $ 0.04
========
Weighted average common units outstanding.......................................................... 27,040
========
See notes to unaudited pro forma combined financial information.
P-4
Notes to Unaudited Pro Forma Combined Financial Information
(Dollars in thousands)
1. Basis of Presentation
The pro forma financial information presents the combination using the
purchase method of accounting and reflects the total number of common units of
Dorchester Minerals, L.P. outstanding upon the consummation of the combination
of 27,040,431. Dorchester Hugoton is deemed to be the acquiror because its
depository receipt holders are the ownership group that received the largest
ownership interest in Dorchester Minerals, L.P. Accordingly, the assets of
Republic, the Republic ORRIs and Spinnaker are adjusted to fair value in the pro
forma balance sheet.
For accounting purposes, the fair value (new basis) of the assets of
Republic, the Republic ORRIs and Spinnaker is based on the fair value of
Dorchester Hugoton and the share of the total common units of Dorchester
Minerals, L.P. that the partners of Republic, the Republic ORRIs and Spinnaker
received, as follows:
Market capitalization of Dorchester Hugoton at January 31, 2003 based on
the closing price of $16.08 per common unit................... $174,515
Less cash distributed to Dorchester Hugoton
unitholders prior to the combination transaction.......... (20,614)
--------
Estimated fair value of Dorchester Hugoton assets contributed
to Dorchester Minerals, L.P............................... $153,901
========
The Dorchester Hugoton unitholders received 39.73% of the common units of
Dorchester Minerals, L.P. in exchange for their interest in Dorchester Hugoton,
which results in a valuation of Dorchester Minerals, L.P. of $387,367.
The fair market value of the assets of Republic, the Republic ORRIs and
Spinnaker were determined based on the percentage interests that their partners
received in Dorchester Minerals, L.P., as follows:
Percentage Fair Value
Interest of Assets
--------- ----------
Republic.................................. 5.87% $ 22,754
Republic ORRIs............................ 34.64% 134,168
Spinnaker................................. 19.76% 76,544
---------
$233,466
=========
2. Pro Forma Adjustments
Balance sheet adjustments:
(a) Eliminate intercompany receivables and payables and the effect of
intercompany transactions on property and equipment.
(b) Eliminate assets and liabilities that were not transferred to
Dorchester Minerals, L.P.
(c) Adjust historical book values of property and equipment of Republic,
the Republic ORRIs, and Spinnaker to fair value, as follows:
P-5
Purchase accounting fair value.............................. $233,466
Historical cost:
Republic, after elimination of intercompany transaction $ 2,754
Republic ORRIs......................................... 26,951
Spinnaker.............................................. 11,417 41,122
------- -------
$192,344
========
Allocation:
Property and equipment................................. $131,634
Accumulated depreciation, depletion and
amortization........................................ 60,710
--------
$192,344
========
(d) Adjust equity accounts to reflect capital structure of Dorchester Minerals,
L.P.
Statement of operations adjustments:
-----------------------------------
(a) Eliminate intercompany transactions and their effect on depletion.
(b) Reflect the income and expenses of Dorchester Hugoton as a 96.97% net
profits interest.
Under the net profits interests agreement, certain costs and expenses
previously incurred by Dorchester Hugoton are the obligations of Dorchester
Minerals Operating LP, and Dorchester Minerals, L.P. will retain a 96.97%
net profits interest. Accordingly, adjustments have been made to reduce
expenses and revenues as follows:
For the
Nine Month For the Year
Period Ended Ended
September 30, 2002 December 31, 2001
------------------ -----------------
Expenses
Operating expenses.......................... $2,058 $3,160
Production taxes............................ 629 1,721
General and administrative expenses......... 339 461
Other deductions
Production payment.......................... -- 566
Other....................................... 35 272
------ ------
$3,061 $6,180
====== ======
The effect on revenue is as follows:
Dorchester Hugoton historical revenues:
Natural gas sales............................... $12,761 $27,153
Other revenue................................... 96 192
------- -------
12,857 27,345
Deduct costs and expenses.......................... (3,061) (6,180)
------- -------
9,796 21,165
Net profits interest............................... x 96.97% x 96.97%
------- -------
Pro forma net profits interest revenue............. $ 9,499 $20,524
======= =======
P-6
(c) Adjust depreciation, depletion, and amortization based on the new
basis of oil and gas properties.
(d) Eliminate income and expense related to assets and liabilities of
Dorchester Hugoton that were not transferred to Dorchester Minerals,
L.P..
(e) Eliminate nonrecurring transaction costs.
(f) Eliminate management fees.
(g) Increase general and administrative expenses for reimbursable costs
incurred by Dorchester Minerals Operating LP.
3. Severance Payments
Dorchester Hugoton had a severance policy pursuant to which payments in the
approximate amount of $2.7 million have been made by Dorchester Hugoton to its
employees and general partners upon consummation of the Combination. These
payments were not an obligation of Dorchester Minerals, L.P. and are not
included as a liability or an expense in the pro forma financial statements.
4. Pro Forma Information on Oil and Gas Operations
The pro forma reserve information set forth below assumes the combination
transactions were completed on January 1, 2001. There are many uncertainties
inherent in estimating reserve quantities, and in projecting future production
rates and the timing of future development expenditures. Accordingly, estimates
are subject to change as additional information becomes available. Revisions of
estimates can have a significant impact on the results.
Proved oil and natural gas reserves are the estimated quantities of crude
oil, condensate, natural gas and natural gas liquids that geological and
engineering data demonstrate with reasonable certainty to be recoverable in
future years from known reservoirs under existing economic conditions. Proved
developed oil and gas reserves are those reserves expected to be recovered
through existing equipment and operating methods.
All reserves are located in the United States.
P-7
SUMMARY OF CHANGES IN PRO FORMA COMBINED PROVED RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2001
(IN THOUSANDS)
Dorchester Republic Pro forma Pro forma
Hugoton Republic ORRIs Spinnaker adjustments combined
---------- -------- -------- --------- ----------- ---------
Oil (MBbls)
Proved reserves
Estimated quantity, beginning of year -- 698 2,793 1,002 -- 4,493
Revisions of previous estimates.. -- 37 150 60 -- 247
Production....................... -- (55) (222) (88) -- (365)
----------- ------- -------- --------- ----------- ---------
Estimated quantity, end of year.. -- 680 2,721 974 -- 4,375
=========== ======= ======== ========= =========== =========
Proved developed reserves
Beginning of year................ -- 698 2,792 998 -- 4,488
End of year...................... -- 680 2,721 972 -- 4,373
Dorchester Republic Pro forma Pro forma
Hugoton Republic ORRIs Spinnaker adjustments combined
---------- -------- -------- --------- ----------- ---------
Gas (MMcf)
Proved reserves
Estimated quantity, beginning of year 54,127 3,793 15,173 15,000 (1,640) a 86,453
Revisions of previous estimates.. 743 781 3,124 1,784 (23) a 6,409
Production....................... (6,568) (543) (2,174) (2,247) 200 a (11,332)
-------- ------- -------- -------- ----------- ---------
Estimated quantity, end of year.. 48,302 4,031 16,123 14,537 (1,463) 81,530
======== ======= ======== ======== =========== =========
Proved developed reserves
Beginning of year................ 54,127 3,759 15,035 13,493 (1,640) a 84,774
End of year...................... 48,302 3,998 15,990 13,271 (1,463) a 80,098
a) to adjust Dorchester Hugoton amounts to 96.97% of historical amounts.
P-8
PRO FORMA COMBINED STANDARDIZED MEASURE
OF DISCOUNTED FUTURE NET CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2001
(IN THOUSANDS)
Dorchester Republic Pro forma Pro forma
Hugoton Republic ORRIs Spinnaker adjustments combined
--------- -------- -------- --------- ----------- ---------
Future estimated gross revenues.......... $117,029 $109,736 $ 87,789 $ 52,935 $ (87,789) a
(3,546) b $276,154
Net proceeds interest to unaffiliated
ORRI owner..................... -- (87,789) -- -- 87,789 a --
Less future estimated production taxes... -- (1,689) (6,758) (4,237) -- (12,684)
Future estimated production and
development costs...................... (51,083) -- -- -- 1,548 b (49,535)
-------- -------- -------- -------- ----------- ---------
Future estimated net revenue............. 65,946 20,258 81,031 48,698 (1,998) 213,935
10% annual discount for estimated timing
of cash flows......................... (21,220) (10,420) (41,681) (22,253) 643 b (94,931)
-------- -------- -------- -------- ----------- ---------
Standardized measure of discounted
future estimated net revenue............ $ 44,726 $ 9,838 $ 39,350 $ 26,445 $ (1,355) $119,004
======== ======== ======== ======== =========== ========
Beginning of year........................ $140,003 $ 25,812 $103,249 $ 92,416 $ (4,242) b $357,238
Sales of natural gas produced, net of
production costs......................... (21,899) (2,318) (13,698) (10,044) 664 b (47,295)
Net changes in prices and production costs. (89,233) (14,913) (59,651) (60,964) 2,704 b (222,057)
Revisions of previous quantity estimates... 3,488 1,097 4,384 1,908 (106) b 10,771
Accretion of discount...................... 12,471 2,581 10,325 9,242 (378) b 34,241
Other...................................... (104) (2,421) (5,259) (6,113) 3 b (13,894)
-------- -------- -------- -------- ----------- ---------
Net change in standardized measure of
discounted future estimated net revenues.. (95,277) (15,974) (63,899) (65,971) 2,887 (238,234)
-------- -------- -------- -------- ----------- --------
End of year................................$ 44,726 $ 9,838 $ 39,350 $ 26,445 $ (1,355) $119,004
======== ======== ======== ======== =========== ========
a) to eliminate intercompany amounts
b) to adjust Dorchester Hugoton amount to 96.97% of historical amounts.
P-9
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DORCHESTER MINERALS, L.P.
By: Dorchester Minerals Management LP,
its general partner
By: Dorchester Minerals Management GP LLC,
its general partner
Date: April 15, 2003 By: /s/ William Casey McManemin
---------------------------
Chief Executive Officer
