Mewbourne Energy Partners 10-A 10-Q 16 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover	3 Months Ended
	Mar. 31, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	000-54370
Entity Registrant Name	MEWBOURNE ENERGY PARTNERS 10-A, L.P.
Entity Central Index Key	0001491262
Entity Tax Identification Number	27-1903816
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	3901 South Broadway
Entity Address, City or Town	Tyler
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75701
City Area Code	903
Local Phone Number	561-2900
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false

CONDENSED BALANCE SHEETS (Unaud

CONDENSED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
ASSETS
Cash	$ 198,584	$ 116,521
Accounts receivable, affiliate	1,064,494	1,061,099
Prepaid state taxes	1,333	1,000
Total current assets	1,264,411	1,178,620
Oil and gas properties at cost, full-cost method	69,593,103	69,567,505
Less accumulated depreciation, depletion, amortization and cost ceiling write-downs	(66,801,668)	(66,745,536)
Oil and gas properties, net	2,791,435	2,821,969
Total assets	4,055,846	4,000,589
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable, affiliate	324,323	220,556
Total current liabilities	324,323	220,556
Asset retirement obligation	975,622	958,662
Total liabilities	1,299,945	1,179,218
Partners' capital	2,755,901	2,821,371
Total liabilities and partners' capital	$ 4,055,846	$ 4,000,589

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Total revenues	$ 1,537,051	$ 692,802
Expenses:
Lease operating expense	227,356	204,168
Production taxes	122,950	49,540
Administrative and general expense	94,756	26,264
Depreciation, depletion, and amortization	56,132	41,070
Asset retirement obligation accretion	10,300	9,704
Total expenses	511,494	330,746
Net income	1,025,557	362,056
Oil and Condensate [Member]
Revenues:
Sales	1,056,312	418,966
Natural Gas, Production [Member]
Revenues:
Sales	$ 480,739	$ 273,836

CONDENSED STATEMENTS OF CHANGES

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (Unaudited)	Partners [Member]USD ($)
Beginning balance at Dec. 31, 2020	$ 2,334,434
Cash distributions	(248,234)
Net income	362,056
Ending balance at Mar. 31, 2021	2,448,256
Beginning balance at Dec. 31, 2021	2,821,371
Cash distributions	(1,091,027)
Net income	1,025,557
Ending balance at Mar. 31, 2022	$ 2,755,901

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 1,025,557	$ 362,056
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization	56,132	41,070
Asset retirement obligation accretion	10,300	9,704
Changes in operating assets and liabilities:
Accounts receivable, affiliate	(3,395)	(171,407)
Prepaid state taxes	(333)	(641)
Accounts payable, affiliate	103,753	10,192
Net cash provided by operating activities	1,192,014	250,974
Cash flows from investing activities:
Operator credit received for oil and gas properties		482
Development of oil and gas properties	(18,924)	74
Net cash (used in) provided by investing activities	(18,924)	556
Cash flows from financing activities:
Cash distributions to partners	(1,091,027)	(248,234)
Net cash used in financing activities	(1,091,027)	(248,234)
Net increase in cash	82,063	3,296
Cash, beginning of period	116,521	14,964
Cash, end of period	198,584	18,260
Supplemental Cash Flow Information:
Change to net oil & gas properties related to asset retirement obligation liabilities	6,660	(626)
Changes to oil and gas properties included in accounts payable, affiliate	$ 14	$ 1,665

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Description of Business	1. Description of Business Mewbourne Energy Partners 10-A, L.P., (the “Registrant” or the “Partnership”), a Delaware limited partnership engaged primarily in oil and natural gas development and production in Texas, Oklahoma, and New Mexico, was organized on February 9, 2010. During 2012, all general partner equity interests were converted to limited partner equity interests. In accordance with the laws of the State of Delaware, Mewbourne Development Corporation (“MD”), a Delaware Corporation, has been appointed as the Partnership’s managing general partner. MD has no significant equity interest in the Partnership.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Reference is hereby made to the financial statements within the Registrant’s Annual Report on Form 10-K for 2021, which contains a summary of significant accounting policies followed by the Partnership in the preparation of its financial statements. These policies are also followed in preparing these financial statements within the quarterly report included herein. In the opinion of management, the accompanying unaudited financial statements contain all adjustments of a normal recurring nature necessary to present fairly our financial position, results of operations, cash flows and partners’ capital for the periods presented. The results of operations for the interim periods are not necessarily indicative of the final results expected for the full year. In preparing these financial statements, the Partnership has evaluated subsequent events for potential recognition and disclosure through the date the financial statements were issued. Full Cost Accounting The Partnership follows the full-cost method of accounting for its oil and natural gas activities. Under the full-cost method, all productive and non-productive costs incurred in the acquisition, exploration and development of oil and natural gas properties are capitalized. Depreciation, depletion and amortization of oil and natural gas properties subject to amortization is computed on the units-of-production method based on the proved reserves underlying the oil and natural gas properties. At March 31, 2022 and 2021, all capitalized costs were subject to amortization. Proceeds from the sale or other disposition of properties are credited to the full cost pool. Gains and losses are not recognized unless such adjustments would significantly alter the relationship between capitalized costs and the proved oil and natural gas reserves. Capitalized costs are subject to a quarterly ceiling test that limits such costs to the aggregate of the present value of estimated future net cash flows of proved reserves, computed using the 12-month unweighted average of first-day-of the-month oil and natural gas prices, adjusted by a pricing differential associated with the particular property discounted at 10 no

Asset Retirement Obligations

Asset Retirement Obligations	3 Months Ended
	Mar. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	3. Asset Retirement Obligations The Partnership has recognized an estimated asset retirement obligation liability (“ARO”) for future plugging and abandonment costs. A liability for the estimated fair value of the future plugging and abandonment costs is recorded with a corresponding increase in the full cost pool at the time a new well is drilled. Accretion expense associated with estimated plugging and abandonment costs is recognized in accordance with the full cost methodology. The Partnership estimates a liability for plugging and abandonment costs based on historical experience and estimated well life. The liability is discounted using the credit-adjusted risk-free rate. Revisions to the liability could occur due to changes in well plugging and abandonment costs or well useful lives, or if federal or state regulators enact new well restoration requirements. The Partnership recognizes accretion expense in connection with the discounted liability over the remaining life of the well. A reconciliation of the Partnership’s liability for well plugging and abandonment costs as of and for the three months ended March 31, 2022 and the year ended December 31, 2021 is as follows: 2022 2021 Balance, beginning of period $ 958,662 $ 909,538 Liabilities incurred 6,660 10,826 Liabilities reduced due to settlements — (626 ) Accretion expense 10,300 38,924 Balance, end of period $ 975,622 $ 958,662

Oil and Natural Gas Sales

Oil and Natural Gas Sales	3 Months Ended
	Mar. 31, 2022
Extractive Industries [Abstract]
Oil and Natural Gas Sales	4. Oil and Natural Gas Sales The Partnership’s oil and condensate production is sold and revenue recognized at or near the Partnership’s wells under short-term purchase contracts at prevailing prices in accordance with arrangements which are customary in the oil industry. Sales of natural gas applicable to the Partnership’s interest are recorded as revenue when the natural gas is metered and title transferred pursuant to the natural gas sales contracts covering the Partnership’s interest in natural gas reserves. Substantially all the Partnership’s accounts receivable result from oil and natural gas sales by Mewbourne Oil Company (“MOC”) to third parties in the oil and natural gas industry. This concentration of customers may impact the Partnership’s overall credit risk in that these entities may be similarly affected by changes in economic and other conditions. Historically, the Partnership has not experienced significant credit losses on such receivables. No bad debt expense was recorded for the three months ended March 31, 2022 or 2021. The Partnership cannot ensure that such losses will not occur in the future. The Partnership has only non-operated working interests in oil and natural gas wells and receives monthly net revenue checks from the operator of these oil and natural gas wells. Each unit of oil and natural gas is accounted for as a separate performance obligation. It recognizes revenue for oil and condensate when control transfers to the purchaser at a contractually specified delivery point at or near the wellhead at market prices in accordance with the contractual arrangement. Sales of natural gas applicable to the Partnership’s interest are recorded as revenue when the natural gas is metered and control is transferred pursuant to the natural gas sales contracts covering the Partnership’s interest in natural gas reserves. Disaggregation of Revenue The Partnership has identified two material revenue streams in its business: oil sales and natural gas sales. Revenue attributable to each of the Partnership’s identified revenue streams is disaggregated in the Statements of Operations. Principal versus agent In the case of the non-operating agreements, the operator is responsible for providing the goods due to its contractual obligations with the purchaser. Based on the joint operating and marketing agreement arrangements between the Partnership and operator, the Partnership does not take title to the product prior to the operator’s ultimate sale to a customer. The operator is responsible for fulfilling promises to provide specified goods and remitting proceeds back to the Partnership for the Partnership’s proportionate share of the total product sold. MOC, rather than the Partnership, is primarily responsible for fulfilling promises to provide specified goods. MOC, as the operator, enters the sales contract with the third-party customers and directs all activities from the wellhead to the delivery point that make the commodity available to the customer; there is no agreement between the Partnership and the customers. In the event a production delay occurs because of, for example, well-equipment failure, MOC is responsible for correcting the issues preventing fulfillment of its promises to deliver product to its customers. Accounts Receivable, affiliate Under the Partnership’s joint operating and marketing agreements, the Partnership is entitled to consideration as production occurs at the wellhead and the value of such consideration is an estimate. Final amounts are only determined upon sale by the operator to the ultimate third-party customer, and recorded in “Accounts receivable, affiliate” in its balance sheet.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2022
Related Party Transactions [Abstract]
Related Party Transactions	5. Related Party Transactions In accordance with the laws of the State of Delaware, MD has been appointed as the Partnership’s managing general partner. MD has no significant equity interest in the Partnership. MOC is operator of oil and natural gas properties owned by the Partnership. Mewbourne Holdings, Inc. is the parent of both MD and MOC. The Partnership participates in oil and natural gas activities through a Drilling Program Agreement (the “Program”). In the ordinary course of business, MOC will incur certain costs that will be passed on to owners of the well for which the costs were incurred. The Partnership will receive its portion of these costs based upon its ownership in each well incurring the costs. These costs are referred to as operator charges and are standard and customary in the oil and natural gas industry. Operator charges include recovery of natural gas marketing costs, fixed rate overhead, supervision, pumping, and equipment furnished by the operator, some of which will be included in the full cost pool pursuant to Rule 4-10(c)(2) of Regulation S-X. Services and operator charges are billed in accordance with the Program and Partnership agreements. In accordance with the Partnership agreement, during any calendar year the total amount of administrative expenses allocated to the Partnership by MOC shall not exceed the greater of (a) 3.5 50,000 0.25 The Partnership participates in oil and natural gas activities through the Program. The Partnership and MD are the parties to the Program, and the costs and revenues are allocated between them as follows: Partnership MD (1) Revenues: Proceeds from disposition of depreciable and depletable properties 75 % 25 % All other revenues 75 % 25 % Costs and expenses: Organization and offering costs (1) 0 % 100 % Lease acquisition costs (1) 0 % 100 % Tangible and intangible drilling costs (1) 100 % 0 % Reporting and legal expenses 100 % 0 % Operating costs, general and administrative expenses (except for reporting and legal expenses) and all other costs 75 % 25 % (1) As noted above, pursuant to the Program, MD must contribute 100 15 15 15

Risks and Uncertainties

Risks and Uncertainties	3 Months Ended
	Mar. 31, 2022
Risks and Uncertainties [Abstract]
Risks and Uncertainties	6. Risks and Uncertainties Oil, natural gas, and natural gas liquids prices are determined by many factors outside of the Partnership’s control. Historically, world-wide oil and natural gas prices and markets have been subject to significant change and may continue to be in the future. Global macroeconomic factors contributing to uncertainty within the industry include real or perceived geopolitical risks in oil-producing regions of the world, particularly the Middle East; forecasted levels of global economic growth combined with forecasted global supply; supply levels of oil and natural gas due to exploration and development activities in the United States; global health issues, such as the strain of coronavirus (“COVID-19”) and the wide distribution of the vaccine counteracting it; environmental and climate change regulation; actions taken by OPEC; and the strength of the U.S. dollar in international currency markets. In recent months, the conflict between Russia and Ukraine has driven oil and natural gas prices up significantly, in part because of sanctions by the European Union, the United Kingdom and the U.S. on imports of oil and gas from Russia. Recent Russian actions have further contributed to global uncertainties for the future, causing even higher oil and natural gas prices.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Full Cost Accounting	Full Cost Accounting The Partnership follows the full-cost method of accounting for its oil and natural gas activities. Under the full-cost method, all productive and non-productive costs incurred in the acquisition, exploration and development of oil and natural gas properties are capitalized. Depreciation, depletion and amortization of oil and natural gas properties subject to amortization is computed on the units-of-production method based on the proved reserves underlying the oil and natural gas properties. At March 31, 2022 and 2021, all capitalized costs were subject to amortization. Proceeds from the sale or other disposition of properties are credited to the full cost pool. Gains and losses are not recognized unless such adjustments would significantly alter the relationship between capitalized costs and the proved oil and natural gas reserves. Capitalized costs are subject to a quarterly ceiling test that limits such costs to the aggregate of the present value of estimated future net cash flows of proved reserves, computed using the 12-month unweighted average of first-day-of the-month oil and natural gas prices, adjusted by a pricing differential associated with the particular property discounted at 10 no

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	3 Months Ended
	Mar. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]
A reconciliation of the Partnership’s liability for well plugging and abandonment costs as of and for the three months ended March 31, 2022 and the year ended December 31, 2021 is as follows:	A reconciliation of the Partnership’s liability for well plugging and abandonment costs as of and for the three months ended March 31, 2022 and the year ended December 31, 2021 is as follows: 2022 2021 Balance, beginning of period $ 958,662 $ 909,538 Liabilities incurred 6,660 10,826 Liabilities reduced due to settlements — (626 ) Accretion expense 10,300 38,924 Balance, end of period $ 975,622 $ 958,662

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2022
Related Party Transactions [Abstract]
The Partnership participates in oil and natural gas activities through the Program. The Partnership and MD are the parties to the Program, and the costs and revenues are allocated between them as follows:	The Partnership participates in oil and natural gas activities through the Program. The Partnership and MD are the parties to the Program, and the costs and revenues are allocated between them as follows: Partnership MD (1) Revenues: Proceeds from disposition of depreciable and depletable properties 75 % 25 % All other revenues 75 % 25 % Costs and expenses: Organization and offering costs (1) 0 % 100 % Lease acquisition costs (1) 0 % 100 % Tangible and intangible drilling costs (1) 100 % 0 % Reporting and legal expenses 100 % 0 % Operating costs, general and administrative expenses (except for reporting and legal expenses) and all other costs 75 % 25 % (1) As noted above, pursuant to the Program, MD must contribute 100 15 15 15

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accounting Policies [Abstract]
Discount rate of future cash flows	10.00%
Cost ceiling write-down	$ 0	$ 0

A reconciliation of the Partner

A reconciliation of the Partnership’s liability for well plugging and abandonment costs as of and for the three months ended March 31, 2022 and the year ended December 31, 2021 is as follows: (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]
Balance, beginning of period	$ 958,662	$ 909,538
Liabilities incurred	6,660	10,826
Liabilities reduced due to settlements		(626)
Accretion expense	10,300	38,924
Balance, end of period	$ 975,622	$ 958,662

The Partnership participates in

The Partnership participates in oil and natural gas activities through the Program. The Partnership and MD are the parties to the Program, and the costs and revenues are allocated between them as follows: (Details)	3 Months Ended
	Mar. 31, 2022
Revenues:
Proceeds from disposition of depreciable and depletable properties	75.00%
All other revenues	75.00%
Costs and expenses:
Organization and offering costs	0.00%	[1]
Lease acquisition costs	0.00%	[1]
Tangible and intangible drilling costs	100.00%	[1]
Reporting and legal expenses	100.00%
Operating costs, general and administrative expenses (except for reporting and legal expenses) and all other costs	75.00%
Affiliated Entity [Member]
Revenues:
Proceeds from disposition of depreciable and depletable properties	25.00%	[1]
All other revenues	25.00%	[1]
Costs and expenses:
Organization and offering costs	100.00%	[1]
Lease acquisition costs	100.00%	[1]
Tangible and intangible drilling costs	0.00%	[1]
Reporting and legal expenses	0.00%	[1]
Operating costs, general and administrative expenses (except for reporting and legal expenses) and all other costs	25.00%	[1]
Total capital costs, (percent)	15.00%
[1]	As noted above, pursuant to the Program, MD must contribute 100 15 15 15

Related Party Transactions (Det

Related Party Transactions (Details Narrative)	3 Months Ended
	Mar. 31, 2022shares
Related Party Transactions [Abstract]
Description of management control	In accordance with the laws of the State of Delaware, MD has been appointed as the Partnership’s managing general partner. MD has no significant equity interest in the Partnership. MOC is operator of oil and natural gas properties owned by the Partnership. Mewbourne Holdings, Inc. is the parent of both MD and MOC.
Description of allocated administrative expenses	In accordance with the Partnership agreement, during any calendar year the total amount of administrative expenses allocated to the Partnership by MOC shall not exceed the greater of (a) 3.5% of the Partnership’s gross revenue from the sale of oil and natural gas production during each year (calculated without any deduction for operating costs or other costs and expenses) or (b) the sum of $50,000 plus 0.25% of the capital contributions of limited and general partners.
Percentage of Partnership's gross revenue from the sale of oil and natural gas	3.50%
Amount of administrative fees allocated	50,000
Percentage of the capital contributions of limited and general partners	0.25%