Document_Entity_Information_Do
Document Entity Information Document | 9 Months Ended |
Sep. 30, 2013 | |
Entity Information | ' |
Entity Registrant Name | 'Rockies Region 2007 LP |
Entity Central Index Key | '0001407805 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Smaller Reporting Company |
Document Type | '10-Q |
Document Period End Date | 30-Sep-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
Amendment Flag | 'false |
Entity Common Stock, Shares Outstanding | 0 |
Additional General Partnership Units Outstanding | 0 |
Condensed_Balance_Sheets_Unaud
Condensed Balance Sheets (Unaudited) Statement (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $570,376 | $570,376 |
Accounts receivable | 467,987 | 865,944 |
Crude oil inventory | 49,053 | 42,939 |
Due from Managing General Partner-derivatives | 0 | 4,409,574 |
Due from Managing General Partner-other, net | 54,030 | 800,598 |
Total current assets | 1,141,446 | 6,689,431 |
Crude oil and natural gas properties, successful efforts method, at cost | 55,758,995 | 79,601,649 |
Less: Accumulated depreciation, depletion and amortization | -31,136,270 | -38,868,788 |
Crude oil and natural gas properties, net | 24,622,725 | 40,732,861 |
Other assets | 79,377 | 46,711 |
Total Assets | 25,843,548 | 47,469,003 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 42,045 | 90,570 |
Due to Managing General Partner-derivatives | 0 | 2,004,594 |
Total current liabilities | 42,045 | 2,095,164 |
Asset retirement obligations | 918,245 | 1,110,093 |
Total liabilities | 960,290 | 3,205,257 |
Commitments and contingent liabilities | ' | ' |
Partners' equity: | ' | ' |
Managing General Partner | 4,012,858 | 11,183,638 |
Limited Partners - 4,470 units issued and outstanding | 20,870,400 | 33,080,108 |
Total Partners' equity | 24,883,258 | 44,263,746 |
Total Liabilities and Partners' Equity | $25,843,548 | $47,469,003 |
Balance_Sheet_Parentheticals_P
Balance Sheet Parentheticals (Parentheticals) | Sep. 30, 2013 | Dec. 31, 2012 |
Balance Sheet Parentheticals [Abstract] | ' | ' |
Limited Partners' Capital Account, Units Issued | 4,470 | 4,470 |
Limited Partners' Capital Account, Units Outstanding | 4,470 | 4,470 |
Condensed_Statements_of_Operat
Condensed Statements of Operations (Unaudited) Statement (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues: | ' | ' | ' | ' |
Crude oil, natural gas and NGLs | $1,500,286 | $1,784,184 | $4,536,215 | $4,261,718 |
Commodity price risk management gain (loss), net | 0 | -352,799 | -417,689 | 751,177 |
Total revenues | 1,500,286 | 1,431,385 | 4,118,526 | 5,012,895 |
Operating costs and expenses: | ' | ' | ' | ' |
Crude oil, natural gas and NGLs production costs | 331,242 | 281,879 | 980,150 | 992,892 |
Direct costs - general and administrative | 42,575 | 42,510 | 129,317 | 124,625 |
Depreciation, depletion and amortization | 761,369 | 926,048 | 2,438,069 | 2,505,337 |
Accretion of asset retirement obligations | 17,229 | 15,941 | 50,699 | 46,911 |
Total operating costs and expenses | 1,152,415 | 1,266,378 | 3,598,235 | 3,669,765 |
Operating income (loss): | ' | ' | ' | ' |
Income from continuing operations | 347,871 | 165,007 | 520,291 | 1,343,130 |
Loss from discontinued operations | 0 | -293,406 | -33,370 | -967,091 |
Net income (loss) | 347,871 | -128,399 | 486,921 | 376,039 |
Net income (loss) per Investor Partner Unit: | ' | ' | ' | ' |
Continuing operations | $49 | $23 | $73 | $189 |
Discontinued operations | $0 | ($41) | ($4) | ($136) |
Net income (loss) per Investor Partner unit | $49 | ($18) | $69 | $53 |
Investor Partner units outstanding | 4,470 | 4,470 | 4,470 | 4,470 |
Managing General Partner | ' | ' | ' | ' |
Operating income (loss): | ' | ' | ' | ' |
Income from continuing operations | 128,712 | 61,053 | 192,508 | 496,958 |
Loss from discontinued operations | 0 | -108,560 | -12,347 | -357,824 |
Investor Partners | ' | ' | ' | ' |
Operating income (loss): | ' | ' | ' | ' |
Income from continuing operations | 219,159 | 103,954 | 327,783 | 846,172 |
Loss from discontinued operations | $0 | ($184,846) | ($21,023) | ($609,267) |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (Unaudited) Statement (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income | $486,921 | $376,039 |
Adjustments to net income to reconcile to net cash from operating activities: | ' | ' |
Depreciation, depletion and amortization | 2,593,279 | 3,843,085 |
Accretion of asset retirement obligations | 57,576 | 58,618 |
Change in unrealized loss on derivative transactions | 1,693,233 | 2,095,486 |
Loss on sale of crude oil and natural gas properties | 495,574 | 0 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 397,957 | -77,131 |
Crude oil inventory | -11,028 | -1,979 |
Other assets | -32,666 | -32,673 |
Accounts payable and accrued expenses | -48,525 | -7,507 |
Due from Managing General Partner-other, net | 746,568 | -360,759 |
Net cash from operating activities | 6,378,889 | 5,893,179 |
Cash flows from investing activities: | ' | ' |
Capital expenditures for crude oil and natural gas properties | 0 | -3,128,044 |
Proceeds from sale of crude oil and natural gas properties | 13,488,520 | 0 |
Net cash from investing activities | 13,488,520 | -3,128,044 |
Cash flows from financing activities: | ' | ' |
Distributions to Partners | -19,867,409 | -4,306,135 |
Net cash from financing activities | -19,867,409 | -4,306,135 |
Net change in cash and cash equivalents | 0 | -1,541,000 |
Cash and cash equivalents, beginning of period | 570,376 | 2,690,377 |
Cash and cash equivalents, end of period | $570,376 | $1,149,377 |
General_and_Basis_of_Presentat
General and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
General and Basis of Presentation | |
Rockies Region 2007 Limited Partnership (this “Partnership” or the “Registrant”) was organized in 2007 as a limited partnership, in accordance with the laws of the State of West Virginia, for the purpose of engaging in the exploration and development of crude oil and natural gas properties. Business operations commenced upon closing of an offering for the private placement of Partnership units. Upon funding, this Partnership entered into a Drilling and Operating Agreement (“D&O Agreement”) with the Managing General Partner which authorizes PDC to conduct and manage this Partnership's business. In accordance with the terms of the Limited Partnership Agreement (the “Agreement”), the Managing General Partner is authorized to manage all activities of this Partnership and initiates and completes substantially all Partnership transactions. | |
As of September 30, 2013, there were 1,784 limited partners in this Partnership (the “Investor Partners”). PDC is the designated Managing General Partner of this Partnership and owns a 37% Managing General Partner ownership in this Partnership. According to the terms of the Agreement, revenues, costs and cash distributions of this Partnership are allocated 63% to the Investor Partners, which are shared pro rata based upon the number of units in this Partnership, and 37% to the Managing General Partner. The Managing General Partner may repurchase Investor Partner units under certain circumstances provided by the Agreement, upon request of an individual Investor Partner. Through September 30, 2013, the Managing General Partner had repurchased 39.3 units of Partnership interest from the Investor Partners at an average price of $4,233 per unit. As of September 30, 2013, the Managing General Partner owned 37.6% of this Partnership. | |
In the Managing General Partner's opinion, the accompanying condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of this Partnership's results for interim periods in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in the audited financial statements have been condensed or omitted. The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with this Partnership's audited financial statements and notes thereto included in this Partnership's 2012 Form 10-K. This Partnership's accounting policies are described in the Notes to Financial Statements in this Partnership's 2012 Form 10-K and updated, as necessary, in this Quarterly Report on Form 10-Q. The results of operations and cash flows for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year or any other future period. | |
Certain reclassifications have been made to prior period financial statements to conform to the current year presentation. The reclassifications had no impact on previously reported results of operations, cash flows or Partners’ equity. |
Recent_Accounting_Standards
Recent Accounting Standards | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncement or Change in Accounting Principle, Current Period Disclosures [Abstract] | ' |
Description of New Accounting Pronouncements Adopted [Text Block] | ' |
Summary of Significant Accounting Policies | |
Recently Adopted Accounting Standard | |
On January 1, 2013, this Partnership adopted changes issued by the Financial Accounting Standards Board regarding the disclosure of offsetting assets and liabilities. These changes require an entity to disclose both gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an enforceable master netting arrangement or similar agreement. The enhanced disclosures enable users of the entity’s financial statements to understand and evaluate the effect or potential effect of master netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. Adoption of these changes had no impact on the condensed financial statements. |
Transactions_with_Managing_Gen
Transactions with Managing General Partner | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Related Party Transactions Disclosure [Text Block] | ' | |||||||||||||||
Transactions with Managing General Partner | ||||||||||||||||
The Managing General Partner transacts business on behalf of this Partnership under the authority of the D&O Agreement. Revenues and other cash inflows received by the Managing General Partner on behalf of this Partnership are distributed to the Partners, net of corresponding operating costs and other cash outflows incurred on behalf of this Partnership. The fair value of this Partnership's portion of open derivative instruments were recorded on the condensed December 31, 2012 balance sheet under the captions “Due from Managing General Partner-derivatives” in the case of net unrealized gains and “Due to Managing General Partner-derivatives” in the case of net unrealized losses. As of September 30, 2013, this Partnership had no outstanding derivative instruments. | ||||||||||||||||
The following table presents transactions with the Managing General Partner reflected in the condensed balance sheets line item “Due from Managing General Partner-other, net” which remain undistributed or unsettled with this Partnership's investors as of the dates indicated: | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Crude oil, natural gas and NGLs sales revenues | $ | 463,071 | $ | 871,548 | ||||||||||||
collected from this Partnership's third-party customers | ||||||||||||||||
Commodity price risk management, realized gain | — | 356,531 | ||||||||||||||
Other (1) | (409,041 | ) | (427,481 | ) | ||||||||||||
Total Due from Managing General Partner-other, net | $ | 54,030 | $ | 800,598 | ||||||||||||
-1 | All other unsettled transactions, excluding derivative instruments, between this Partnership and the Managing General Partner. The majority of these are operating costs and general and administrative costs, which have not been deducted from distributions. | |||||||||||||||
The following table presents Partnership transactions, excluding derivative transactions which are more fully detailed in Note 5, Derivative Financial Instruments, with the Managing General Partner for the three and nine months ended September 30, 2013 and 2012. “Well operations and maintenance” and “Gathering, compression and processing fees” are included in the “Crude oil, natural gas and NGLs production costs” line item on the condensed statements of operations for continuing operations or in Note 8, Divestitures and Discontinued Operations, for discontinued operations. | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Well operations and maintenance | $ | 273,771 | $ | 522,592 | $ | 1,282,415 | $ | 1,753,939 | ||||||||
Gathering, compression and processing fees | (3,807 | ) | 65,812 | 119,017 | 267,175 | |||||||||||
Direct costs - general and administrative | 42,575 | 42,510 | 455,368 | 124,625 | ||||||||||||
Refracturing and recompletion costs | — | 2,766,186 | — | 3,126,425 | ||||||||||||
Cash distributions (1) | 5,694,280 | 509,856 | 7,445,561 | 1,599,789 | ||||||||||||
-1 | Cash distributions include $74,804 and $94,620 during the three and nine months ended September 30, 2013, respectively, and $4,099 and $6,519 during the three and nine months ended September 30, 2012, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC. The increases for 2013 periods over the 2012 periods is attributable to PDC's proportionate share of the distribution of $13.5 million received from the Piceance Basin asset divestiture in 2013. |
Fair_Value_Measurements_and_Di
Fair Value Measurements and Disclosures | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Fair Value Disclosures [Abstract] | ' | |||||
Fair Value Disclosures [Text Block] | ' | |||||
Fair Value of Financial Instruments | ||||||
Determination of fair value. This Partnership's fair value measurements are estimated pursuant to a fair value hierarchy that requires this Partnership to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, giving the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. In these cases, the lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability, and may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The three levels of inputs that may be used to measure fair value are defined as: | ||||||
Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||||
Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived from observable market data by correlation or other means. | ||||||
Level 3 - Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity. | ||||||
Derivative instruments that were due to mature subsequent to June 30, 2013 were either liquidated or sold to Caerus Oil and Gas LLC ("Caerus") during the quarter ended June 30, 2013. See Note 8, Divestitures and Discontinued Operations, for additional information regarding transactions with Caerus. Accordingly, as of September 30, 2013, this Partnership did not have any derivative instruments in place for its future production. When applicable, the Managing General Partner measured the fair value of this Partnership's derivative instruments based on a pricing model that utilized market-based inputs, including, but not limited to, the contractual price of the underlying position, current market prices, natural gas forward curve, discount rates such as the LIBOR curve for a similar duration of each outstanding position, volatility factors and nonperformance risk. Nonperformance risk considers the effect of the Managing General Partner's credit standing on the fair value of derivative liabilities and the effect of the Managing General Partner's counterparties' credit standings on the fair value of derivative assets. Both inputs to the model are based on published credit default swap rates and the duration of each outstanding derivative position. | ||||||
The Managing General Partner validated its fair value measurement through the review of counterparty statements and other supporting documentation, the determination that the source of the inputs is valid, the corroboration of the original source of inputs through access to multiple quotes, if available, or other information and monitoring changes in valuation methods and assumptions. While the Managing General Partner used common industry practices to develop its valuation techniques, and believed this Partnership's valuation method was appropriate and consistent with those used by other market participants, changes in the Managing General Partner's pricing methodologies or the underlying assumptions could have resulted in significantly different fair values. | ||||||
This Partnership's fixed-price swaps and basis swaps as of December 31, 2012 were included in Level 2. The following table presents this Partnership's derivative assets and liabilities that had been measured at fair value on a recurring basis: | ||||||
Balance Sheet | 31-Dec-12 | |||||
Line Item | Level 2 | |||||
Assets: | ||||||
Current | ||||||
Commodity-based derivatives | Due from Managing General Partner-derivatives | $ | 4,409,574 | |||
Total assets | 4,409,574 | |||||
Liabilities: | ||||||
Current | ||||||
Basis protection derivative contracts | Due to Managing General Partner-derivatives | 2,004,594 | ||||
Total liabilities | 2,004,594 | |||||
Net asset | $ | 2,404,980 | ||||
Non-Derivative Financial Assets and Liabilities | ||||||
The carrying values of the financial instruments included in current assets and current liabilities approximate fair value due to the short-term maturities of these instruments. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Derivative Instruments Disclosure [Text Block] | ' | ||||||||||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||||||
The following tables present the impact of this Partnership's derivative instruments on this Partnership's accompanying condensed statements of operations: | |||||||||||||||||||||||||
Three months ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Statement of operations line item: | Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized | Realized Gains (Losses) for the Current Period | Total | Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized | Realized and Unrealized Gains and (Losses) for the Current Period | Total | |||||||||||||||||||
Commodity price risk management loss, net | |||||||||||||||||||||||||
Realized gains | $ | — | $ | — | $ | — | $ | 854,344 | $ | 11,105 | $ | 865,449 | |||||||||||||
Unrealized losses | — | — | — | (854,344 | ) | (363,904 | ) | (1,218,248 | ) | ||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | (352,799 | ) | $ | (352,799 | ) | |||||||||||
Nine months ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Statement of operations line item: | Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized | Realized Losses for the Current Period | Total | Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized | Realized and Unrealized Gains for the Current Period | Total | |||||||||||||||||||
Commodity price risk management gain (loss), net | |||||||||||||||||||||||||
Realized gains (losses) | $ | 1,693,233 | $ | (417,689 | ) | $ | 1,275,544 | $ | 2,264,797 | $ | 581,866 | $ | 2,846,663 | ||||||||||||
Unrealized gains (losses) | (1,693,233 | ) | — | (1,693,233 | ) | (2,264,797 | ) | 169,311 | (2,095,486 | ) | |||||||||||||||
Total | $ | — | $ | (417,689 | ) | $ | (417,689 | ) | $ | — | $ | 751,177 | $ | 751,177 | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
Commitments and Contingencies | |
Legal Proceedings | |
Neither this Partnership nor PDC, in its capacity as the Managing General Partner of this Partnership, are party to any pending legal proceeding that PDC believes would have a materially adverse effect on this Partnership's business, financial condition, results of operations or liquidity. | |
Environmental | |
Due to the nature of the oil and gas industry, this Partnership is exposed to environmental risks. The Managing General Partner has various policies and procedures in place to prevent environmental contamination and mitigate the risks from environmental contamination. The Managing General Partner conducts periodic reviews to identify changes in this Partnership's environmental risk profile. Liabilities are accrued when environmental remediation efforts are probable and the costs can be reasonably estimated. These liabilities are reduced as remediation efforts are completed or are adjusted as a consequence of subsequent periodic reviews. Liabilities for environmental remediation efforts are included in line item captioned “Accounts payable and accrued expenses” on the condensed balance sheets. | |
During the nine months ended September 30, 2013, as a result of the Managing General Partner's periodic review, no new environmental remediation liabilities were identified and this Partnership's expense for environmental remediation efforts was not significant. This Partnership's environmental remediation liabilities were insignificant as of September 30, 2013 and December 31, 2012. | |
The Managing General Partner is not currently aware of any environmental claims existing as of September 30, 2013 which have not been provided for or would otherwise have a material impact on this Partnership's condensed financial statements; however, there can be no assurance that current regulatory requirements will not change or unknown past non-compliance with environmental laws will not be discovered on this Partnership's properties. | |
Royalty Matters | |
During the three months ended June 30, 2013, this Partnership recognized charges totaling approximately $326,000 related to royalty payment disputes with interest owners in the Piceance Basin. These charges were included in Direct costs - general and administrative expenses within discontinued operations. The settlement charges were allocated to this Partnership based upon historical revenue amounts and were paid during the three months ended September 30, 2013, thereby settling all current and future obligations related to this matter. |
Asset_Retirement_Obligations_A
Asset Retirement Obligations Asset Retirement Obligations (Notes) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
ASSET RETIREMENT OBLIGATIONS [Abstract] | ' | |||
Asset Retirement Obligation Disclosure [Text Block] | ' | |||
Asset Retirement Obligations | ||||
The following table presents the changes in carrying amounts of the asset retirement obligations associated with this Partnership's working interest in crude oil and natural gas properties: | ||||
Amount | ||||
Balance at December 31, 2012 | $ | 1,110,093 | ||
Accretion expense | 57,576 | |||
Obligations discharged with divestiture of properties | (249,424 | ) | ||
Balance at September 30, 2013 | $ | 918,245 | ||
Assets_Held_for_Sales_Divestit
Assets Held for Sales, Divestitures and Discontinued Operations | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | ||||||||||||
Divestitures and Discontinued Operations | |||||||||||||
Piceance Basin. In February 2013, this Partnership's Managing General Partner entered into a purchase and sale agreement with certain affiliates of Caerus, pursuant to which this Partnership agreed to sell to Caerus all of its Piceance Basin assets and certain derivatives. In June 2013, this divestiture was completed with total consideration for this Partnership of approximately $13.5 million, subject to customary post-closing adjustments. The divestiture of this Partnership's Piceance Basin assets resulted in a decrease of crude oil and natural gas properties of $23.8 million and a decrease of accumulated depreciation, depletion and amortization of $10.3 million. The sale resulted in a loss on divestiture of assets of approximately $0.5 million. | |||||||||||||
In July 2013, this Partnership distributed proceeds received for the Piceance Basin asset divestiture to the Managing General Partner and Investor Partners as follows: | |||||||||||||
Amount | |||||||||||||
Distributed to: | (millions) | ||||||||||||
Managing General Partner | $ | 5 | |||||||||||
Investor Partners | 8.5 | ||||||||||||
Total | $ | 13.5 | |||||||||||
Following the sale, this Partnership does not have a significant continuing involvement in the operations of, or cash flows from, the Piceance Basin oil and gas properties. Accordingly, the results of operations related to these assets have been separately reported as discontinued operations in the condensed statement of operations for all periods presented. | |||||||||||||
The following table presents statement of operations data related to this Partnership's discontinued operations for the Piceance Basin divestiture: | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
Statement of Operations - Discontinued Operations | 2012 | 2013 | 2012 | ||||||||||
Revenues: | |||||||||||||
Crude oil, natural gas and NGLs sales | $ | 547,394 | $ | 1,691,225 | $ | 1,530,684 | |||||||
Operating costs and expenses: | |||||||||||||
Crude oil, natural gas and NGLs production costs | 395,684 | 740,883 | 1,148,320 | ||||||||||
Depreciation, depletion and amortization | 441,148 | 155,210 | 1,337,748 | ||||||||||
Direct costs - general and administrative expense | — | 326,051 | — | ||||||||||
Accretion of asset retirement obligations | 3,968 | 6,877 | 11,707 | ||||||||||
Loss on sale of crude oil and natural gas properties | — | 495,574 | — | ||||||||||
Total operating costs and expenses | 840,800 | 1,724,595 | 2,497,775 | ||||||||||
Loss from discontinued operations | $ | (293,406 | ) | $ | (33,370 | ) | $ | (967,091 | ) | ||||
While the reclassification of revenues and expenses related to discontinued operations for the prior period had no impact upon previously reported net earnings, the statement of operations table presents the revenues and expenses that were reclassified from the specified statement of operations line items to discontinued operations. |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
In the Managing General Partner's opinion, the accompanying condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of this Partnership's results for interim periods in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in the audited financial statements have been condensed or omitted. The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with this Partnership's audited financial statements and notes thereto included in this Partnership's 2012 Form 10-K. This Partnership's accounting policies are described in the Notes to Financial Statements in this Partnership's 2012 Form 10-K and updated, as necessary, in this Quarterly Report on Form 10-Q. The results of operations and cash flows for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year or any other future period. |
Transactions_with_Managing_Gen1
Transactions with Managing General Partner Transactions with Managing General Partner (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Due from (to) Managing General Partner-other, net [Table Text Block] | ' | |||||||||||||||
The following table presents transactions with the Managing General Partner reflected in the condensed balance sheets line item “Due from Managing General Partner-other, net” which remain undistributed or unsettled with this Partnership's investors as of the dates indicated: | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Crude oil, natural gas and NGLs sales revenues | $ | 463,071 | $ | 871,548 | ||||||||||||
collected from this Partnership's third-party customers | ||||||||||||||||
Commodity price risk management, realized gain | — | 356,531 | ||||||||||||||
Other (1) | (409,041 | ) | (427,481 | ) | ||||||||||||
Total Due from Managing General Partner-other, net | $ | 54,030 | $ | 800,598 | ||||||||||||
-1 | All other unsettled transactions, excluding derivative instruments, between this Partnership and the Managing General Partner. The majority of these are operating costs and general and administrative costs, which have not been deducted from distributions. | |||||||||||||||
Schedule of Related Party Transactions [Table Text Block] | ' | |||||||||||||||
The following table presents Partnership transactions, excluding derivative transactions which are more fully detailed in Note 5, Derivative Financial Instruments, with the Managing General Partner for the three and nine months ended September 30, 2013 and 2012. “Well operations and maintenance” and “Gathering, compression and processing fees” are included in the “Crude oil, natural gas and NGLs production costs” line item on the condensed statements of operations for continuing operations or in Note 8, Divestitures and Discontinued Operations, for discontinued operations. | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Well operations and maintenance | $ | 273,771 | $ | 522,592 | $ | 1,282,415 | $ | 1,753,939 | ||||||||
Gathering, compression and processing fees | (3,807 | ) | 65,812 | 119,017 | 267,175 | |||||||||||
Direct costs - general and administrative | 42,575 | 42,510 | 455,368 | 124,625 | ||||||||||||
Refracturing and recompletion costs | — | 2,766,186 | — | 3,126,425 | ||||||||||||
Cash distributions (1) | 5,694,280 | 509,856 | 7,445,561 | 1,599,789 | ||||||||||||
-1 | Cash distributions include $74,804 and $94,620 during the three and nine months ended September 30, 2013, respectively, and $4,099 and $6,519 during the three and nine months ended September 30, 2012, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC. The increases for 2013 periods over the 2012 periods is attributable to PDC's proportionate share of the distribution of $13.5 million received from the Piceance Basin asset divestiture in 2013. |
Fair_Value_Measurements_and_Di1
Fair Value Measurements and Disclosures Fair Value Measurements and Disclosures (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Fair Value Disclosures [Abstract] | ' | |||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | |||||
The following table presents this Partnership's derivative assets and liabilities that had been measured at fair value on a recurring basis: | ||||||
Balance Sheet | 31-Dec-12 | |||||
Line Item | Level 2 | |||||
Assets: | ||||||
Current | ||||||
Commodity-based derivatives | Due from Managing General Partner-derivatives | $ | 4,409,574 | |||
Total assets | 4,409,574 | |||||
Liabilities: | ||||||
Current | ||||||
Basis protection derivative contracts | Due to Managing General Partner-derivatives | 2,004,594 | ||||
Total liabilities | 2,004,594 | |||||
Net asset | $ | 2,404,980 | ||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | ' | ||||||||||||||||||||||||
The following tables present the impact of this Partnership's derivative instruments on this Partnership's accompanying condensed statements of operations: | |||||||||||||||||||||||||
Three months ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Statement of operations line item: | Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized | Realized Gains (Losses) for the Current Period | Total | Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized | Realized and Unrealized Gains and (Losses) for the Current Period | Total | |||||||||||||||||||
Commodity price risk management loss, net | |||||||||||||||||||||||||
Realized gains | $ | — | $ | — | $ | — | $ | 854,344 | $ | 11,105 | $ | 865,449 | |||||||||||||
Unrealized losses | — | — | — | (854,344 | ) | (363,904 | ) | (1,218,248 | ) | ||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | (352,799 | ) | $ | (352,799 | ) | |||||||||||
Nine months ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Statement of operations line item: | Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized | Realized Losses for the Current Period | Total | Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized | Realized and Unrealized Gains for the Current Period | Total | |||||||||||||||||||
Commodity price risk management gain (loss), net | |||||||||||||||||||||||||
Realized gains (losses) | $ | 1,693,233 | $ | (417,689 | ) | $ | 1,275,544 | $ | 2,264,797 | $ | 581,866 | $ | 2,846,663 | ||||||||||||
Unrealized gains (losses) | (1,693,233 | ) | — | (1,693,233 | ) | (2,264,797 | ) | 169,311 | (2,095,486 | ) | |||||||||||||||
Total | $ | — | $ | (417,689 | ) | $ | (417,689 | ) | $ | — | $ | 751,177 | $ | 751,177 | |||||||||||
Asset_Retirement_Obligations_A1
Asset Retirement Obligations Asset Retirement Obligations (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
ASSET RETIREMENT OBLIGATIONS [Abstract] | ' | |||
Schedule of Change in Asset Retirement Obligation [Table Text Block] | ' | |||
Asset Retirement Obligations | ||||
The following table presents the changes in carrying amounts of the asset retirement obligations associated with this Partnership's working interest in crude oil and natural gas properties: | ||||
Amount | ||||
Balance at December 31, 2012 | $ | 1,110,093 | ||
Accretion expense | 57,576 | |||
Obligations discharged with divestiture of properties | (249,424 | ) | ||
Balance at September 30, 2013 | $ | 918,245 | ||
Assets_Held_for_Sales_Divestit1
Assets Held for Sales, Divestitures and Discontinued Operations Assets Held for Sale, Divestitures and Discontinued Operations (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Distributions Made to Managing General Partner and Investor Partners [Table Text Block] | ' | ||||||||||||
In July 2013, this Partnership distributed proceeds received for the Piceance Basin asset divestiture to the Managing General Partner and Investor Partners as follows: | |||||||||||||
Amount | |||||||||||||
Distributed to: | (millions) | ||||||||||||
Managing General Partner | $ | 5 | |||||||||||
Investor Partners | 8.5 | ||||||||||||
Total | $ | 13.5 | |||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | ||||||||||||
The following table presents statement of operations data related to this Partnership's discontinued operations for the Piceance Basin divestiture: | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
Statement of Operations - Discontinued Operations | 2012 | 2013 | 2012 | ||||||||||
Revenues: | |||||||||||||
Crude oil, natural gas and NGLs sales | $ | 547,394 | $ | 1,691,225 | $ | 1,530,684 | |||||||
Operating costs and expenses: | |||||||||||||
Crude oil, natural gas and NGLs production costs | 395,684 | 740,883 | 1,148,320 | ||||||||||
Depreciation, depletion and amortization | 441,148 | 155,210 | 1,337,748 | ||||||||||
Direct costs - general and administrative expense | — | 326,051 | — | ||||||||||
Accretion of asset retirement obligations | 3,968 | 6,877 | 11,707 | ||||||||||
Loss on sale of crude oil and natural gas properties | — | 495,574 | — | ||||||||||
Total operating costs and expenses | 840,800 | 1,724,595 | 2,497,775 | ||||||||||
Loss from discontinued operations | $ | (293,406 | ) | $ | (33,370 | ) | $ | (967,091 | ) | ||||
While the reclassification of revenues and expenses related to discontinued operations for the prior period had no impact upon previously reported net earnings, the statement of operations table presents the revenues and expenses that were reclassified from the specified statement of operations line items to discontinued operations. |
General_and_Basis_of_Presentat1
General and Basis of Presentation General and Basis of Presentation (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Number_of_Limited_Partners | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of Investor Partners | 1,784 |
Managing General Partner, Ownership Interest Before Unit Repurchases | 37.00% |
Investor Partner Ownership Interest | 63.00% |
Limited Partner Units Repurchased by Managing General Partner | 39.3 |
Average Price Paid for Units Repurchased by Managing General Partner | $4,233 |
Managing General Partner Ownership Interest | 37.60% |
Transactions_with_Managing_Gen2
Transactions with Managing General Partner Undistributed or Unsettled Transactions With Investor Partners (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Related Party Transaction | ' | ' | ||
Due from (to) Managing General Partner-other, net | $54,030 | $800,598 | ||
Crude oil, natural gas and NGLs sales revenues collected from the Partnership's third-party customers | ' | ' | ||
Related Party Transaction | ' | ' | ||
Due from (to) Managing General Partner-other, net | 463,071 | 871,548 | ||
Commodity price risk management, realized gain | ' | ' | ||
Related Party Transaction | ' | ' | ||
Due from (to) Managing General Partner-other, net | 0 | 356,531 | ||
Other | ' | ' | ||
Related Party Transaction | ' | ' | ||
Due from (to) Managing General Partner-other, net | ($409,041) | [1] | ($427,481) | [1] |
[1] | All other unsettled transactions, excluding derivative instruments, between this Partnership and the Managing General Partner. The majority of these are operating costs and general and administrative costs, which have not been deducted from distributions. |
Transactions_with_Managing_Gen3
Transactions with Managing General Partner Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Related Party Transaction | ' | ' | ' | ' | ||||
Direct costs - general and administrative | $42,575 | $42,510 | $129,317 | $124,625 | ||||
Total proceeds from sale of Piceance Basin asset divestiture | ' | ' | 13,488,520 | 0 | ||||
Transactions with Managing General Partner | ' | ' | ' | ' | ||||
Related Party Transaction | ' | ' | ' | ' | ||||
Well operations and maintenance | 273,771 | 522,592 | 1,282,415 | 1,753,939 | ||||
Gathering, compression and processing fees | -3,807 | 65,812 | 119,017 | 267,175 | ||||
Direct costs - general and administrative | 42,575 | 42,510 | 455,368 | 124,625 | ||||
Refracturing and recompletion costs | 0 | 2,766,186 | 0 | 3,126,425 | ||||
Cash distributions | 5,694,280 | [1] | 509,856 | [1] | 7,445,561 | [1] | 1,599,789 | [1] |
Distribution Made to Limited Partner, Cash Distributions Paid | 74,804 | 4,099 | 94,620 | 6,519 | ||||
Total proceeds from sale of Piceance Basin asset divestiture | $13,500,000 | ' | ' | ' | ||||
[1] | Cash distributions include $74,804 and $94,620 during the three and nine months ended September 30, 2013, respectively, and $4,099 and $6,519 during the three and nine months ended September 30, 2012, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC. The increases for 2013 periods over the 2012 periods is attributable to PDC's proportionate share of the distribution of $13.5 million received from the Piceance Basin asset divestiture in 2013. |
Transactions_with_Managing_Gen4
Transactions with Managing General Partner Additional Information (Details) (USD $) | Sep. 30, 2013 |
Additional Information [Abstract] | ' |
Derivative Instruments Outstanding as of September 31, 2013 | $0 |
Fair_Value_Measurements_and_Di2
Fair Value Measurements and Disclosures Fair Value Measurements and Disclosures (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Due from Managing General Partner-derivatives | $0 | $4,409,574 |
Due to Managing General Partner-derivatives | 0 | 2,004,594 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure | ' | 4,409,574 |
Liabilities, Fair Value Disclosure | ' | 2,004,594 |
Net Asset Fair Value | ' | 2,404,980 |
Commodity Contracts Related to Natural Gas and Crude Oil Sales [Member] | Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Due from Managing General Partner-derivatives | ' | 4,409,574 |
Basis Protection Contracts Related to Natural Gas and Crude Oil Sales [Member] | Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Due to Managing General Partner-derivatives | ' | $2,004,594 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments Derivative Financial Instruments (Details) (Commodity Price Risk Management, net [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Derivative Financial Instruments | ' | ' | ' | ' |
Realized Gains (Losses) | $0 | $865,449 | $1,275,544 | $2,846,663 |
Unrealized gains (losses) | 0 | -1,218,248 | -1,693,233 | -2,095,486 |
Total | 0 | -352,799 | -417,689 | 751,177 |
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized [Member] | ' | ' | ' | ' |
Derivative Financial Instruments | ' | ' | ' | ' |
Realized Gains (Losses) | 0 | 854,344 | 1,693,233 | 2,264,797 |
Unrealized gains (losses) | 0 | -854,344 | -1,693,233 | -2,264,797 |
Total | 0 | 0 | 0 | 0 |
Realized and Unrealized Gains (Losses) for the Current Period [Member] | ' | ' | ' | ' |
Derivative Financial Instruments | ' | ' | ' | ' |
Realized Gains (Losses) | 0 | 11,105 | -417,689 | 581,866 |
Unrealized gains (losses) | 0 | -363,904 | 0 | 169,311 |
Total | $0 | ($352,799) | ($417,689) | $751,177 |
Commitments_and_Contingencies_
Commitments and Contingencies Commitments and Contingencies (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Royalty payment settlement expense | $326,000 |
Asset_Retirement_Obligations_A2
Asset Retirement Obligations Asset Retirement Obligations (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Changes in asset retirement obligations | ' | ' |
Balance at December 31, 2012 | $1,110,093 | ' |
Accretion expense | 57,576 | 58,618 |
Obligations discharged with disposal of properties | -249,424 | ' |
Balance at September 30, 2013 | $918,245 | ' |
Assets_Held_for_Sales_Divestit2
Assets Held for Sales, Divestitures and Discontinued Operations Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Piceance Basin Assets Divested | ' | ' | ' | ' |
Total proceeds from sale of Piceance Basin asset divestiture | ' | $13,488,520 | $0 | ' |
Proceeds received from sale of Piceance Basin assets | 13,500,000 | ' | ' | ' |
Crude oil and natural gas properties | 55,758,995 | 55,758,995 | ' | 79,601,649 |
Accumulated depreciation, depletion and amortization | 31,136,270 | 31,136,270 | ' | 38,868,788 |
Piceance and NECO Asset Group [Member] | ' | ' | ' | ' |
Piceance Basin Assets Divested | ' | ' | ' | ' |
Crude oil and natural gas properties | 23,800,000 | 23,800,000 | ' | ' |
Accumulated depreciation, depletion and amortization | 10,300,000 | 10,300,000 | ' | ' |
Loss on disposal of Piceance Basin oil and gas properties | -500,000 | ' | ' | ' |
Managing General Partner | ' | ' | ' | ' |
Piceance Basin Assets Divested | ' | ' | ' | ' |
Proceeds received from sale of Piceance Basin assets | 5,000,000 | ' | ' | ' |
Investor Partners | ' | ' | ' | ' |
Piceance Basin Assets Divested | ' | ' | ' | ' |
Proceeds received from sale of Piceance Basin assets | $8,500,000 | ' | ' | ' |
Assets_Held_for_Sales_Divestit3
Assets Held for Sales, Divestitures and Discontinued Operations Assets Held for Sale, Divestitures and Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Operations - Discontinued Operations | ' | ' | ' | ' |
Loss from discontinued operations | $0 | ($293,406) | ($33,370) | ($967,091) |
Segment, Discontinued Operations [Member] | ' | ' | ' | ' |
Statement of Operations - Discontinued Operations | ' | ' | ' | ' |
Crude oil, natural gas and NGL sales | ' | 547,394 | 1,691,225 | 1,530,684 |
Crude oil, natural gas and NGL production costs | ' | 395,684 | 740,883 | 1,148,320 |
Depreciation, depletion and amortization | ' | 441,148 | 155,210 | 1,337,748 |
Direct costs - general and administrative | ' | 0 | 326,051 | 0 |
Accretion of asset retirement obligations | ' | 3,968 | 6,877 | 11,707 |
Loss on sale of crude oil and natural gas properties | ' | 0 | 495,574 | 0 |
Total operating costs and expenses | ' | 840,800 | 1,724,595 | 2,497,775 |
Loss from discontinued operations | ' | ($293,406) | ($33,370) | ($967,091) |