SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 2000
Commission File Number:
I-D: 0-15831 I-E: 0-15832 I-F: 0-15833
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
--------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
I-D 73-1265223
I-E 73-1270110
Oklahoma I-F 73-1292669
- ---------------------------- -------------------------------
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(918) 583-1791
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
------ ------
-1-
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 258,252 $183,942
Accounts receivable:
Oil and gas sales 240,681 130,579
---------- --------
Total current assets $ 498,933 $314,521
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 470,064 522,300
DEFERRED CHARGE 85,847 85,847
---------- --------
$1,054,844 $922,668
========== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 8,351 $ 16,194
Gas imbalance payable 36,593 36,593
---------- --------
Total current liabilities $ 44,944 $ 52,787
ACCRUED LIABILITY $ 26,398 $ 26,398
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 13,987) ($ 31,152)
Limited Partners, issued and
outstanding, 7,195 units 997,489 874,635
---------- --------
Total Partners' capital $ 983,502 $843,483
---------- --------
$1,054,844 $922,668
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ---------
REVENUES:
Oil and gas sales $370,080 $250,390
Interest income 2,885 1,544
Gain on sale of oil and gas
properties - 494
-------- --------
$372,965 $252,428
COSTS AND EXPENSES:
Lease operating $ 27,725 $ 22,130
Production tax 25,077 17,028
Depreciation, depletion, and
amortization of oil and gas
properties 17,576 15,407
General and administrative
(Note 2) 22,257 20,934
-------- --------
$ 92,635 $ 75,499
-------- --------
NET INCOME $280,330 $176,929
======== ========
GENERAL PARTNER - NET INCOME $ 44,078 $ 28,465
======== ========
LIMITED PARTNERS - NET INCOME $236,252 $148,464
======== ========
NET INCOME per unit $ 32.84 $ 20.64
======== ========
UNITS OUTSTANDING 7,195 7,195
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ---------
REVENUES:
Oil and gas sales $958,710 $572,783
Interest income 6,807 4,124
Gain on sale of oil and gas
properties - 494
-------- --------
$965,517 $577,401
COSTS AND EXPENSES:
Lease operating $118,878 $ 75,962
Production tax 63,059 39,550
Depreciation, depletion, and
amortization of oil and gas
properties 54,264 45,463
General and administrative
(Note 2) 71,163 69,490
-------- --------
$307,364 $230,465
-------- --------
NET INCOME $658,153 $346,936
======== ========
GENERAL PARTNER - NET INCOME $105,299 $ 57,787
======== ========
LIMITED PARTNERS - NET INCOME $552,854 $289,149
======== ========
NET INCOME per unit $ 76.84 $ 40.19
======== ========
UNITS OUTSTANDING 7,195 7,195
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $658,153 $346,936
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 54,264 45,463
Gain on sale of oil and gas
properties - ( 494)
Increase in accounts receivable -
oil and gas sales ( 110,102) ( 39,289)
Decrease in accounts payable ( 7,843) ( 1,071)
-------- --------
Net cash provided by operating
activities $594,472 $351,545
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 2,714) ($ 764)
Proceeds from sale of oil and
gas properties 686 494
-------- --------
Net cash used by investing activities ($ 2,028) ($ 270)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($518,134) ($336,825)
-------- --------
Net cash used by financing activities ($518,134) ($336,825)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 74,310 $ 14,450
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 183,942 167,361
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $258,252 $181,811
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,256,529 $ 891,310
Accounts receivable:
Oil and gas sales 1,214,481 772,416
Related party (Note 2) 119,882 -
---------- ----------
Total current assets $2,590,892 $1,663,726
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,201,853 3,573,231
DEFERRED CHARGE 622,281 622,281
---------- ----------
$6,415,026 $5,859,238
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 68,422 $ 104,132
Gas imbalance payable 174,639 174,639
---------- ----------
Total current liabilities $ 243,061 $ 278,771
ACCRUED LIABILITY $ 189,964 $ 189,964
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 25,071) ($ 106,782)
Limited Partners, issued and
outstanding, 41,839 units 6,007,072 5,497,285
---------- ----------
Total Partners' capital $5,982,001 $5,390,503
---------- ----------
$6,415,026 $5,859,238
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $1,909,516 $1,252,798
Interest income, including $959
from a related party in 2000
(Note 2) 14,160 6,275
Gain on sale of oil and gas
properties 89,900 1,587
---------- ----------
$2,013,576 $1,260,660
COSTS AND EXPENSES:
Lease operating $ 201,031 $ 192,512
Production tax 129,012 77,422
Depreciation, depletion, and
amortization of oil and gas
properties 139,833 155,433
General and administrative
(Note 2) 124,868 121,723
---------- ----------
$ 594,744 $ 547,090
---------- ----------
NET INCOME $1,418,832 $ 713,570
========== ==========
GENERAL PARTNER - NET INCOME $ 230,278 $ 127,855
========== ==========
LIMITED PARTNERS - NET INCOME $1,188,554 $ 585,715
========== ==========
NET INCOME per unit $ 28.41 $ 14.00
========== ==========
UNITS OUTSTANDING 41,839 41,839
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $4,891,139 $2,906,835
Interest income, including $959
from a related party in 2000
(Note 2) 34,303 9,444
Gain on sale of oil and gas
properties 89,900 1,587
Insurance settlement - 675,000
---------- ----------
$5,015,342 $3,592,866
COSTS AND EXPENSES:
Lease operating $ 664,257 $ 640,242
Production tax 319,748 187,037
Depreciation, depletion, and
amortization of oil and gas
properties 431,393 432,075
General and administrative
(Note 2) 401,077 400,334
---------- ----------
$1,816,475 $1,659,688
---------- ----------
NET INCOME $3,198,867 $1,933,178
========== ==========
GENERAL PARTNER - NET INCOME $ 535,080 $ 349,051
========== ==========
LIMITED PARTNERS - NET INCOME $2,663,787 $1,584,127
========== ==========
NET INCOME per unit $ 63.67 $ 37.86
========== ==========
UNITS OUTSTANDING 41,839 41,839
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $3,198,867 $1,933,178
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 431,393 432,075
Gain on sale of oil and gas
properties ( 89,900) ( 1,587)
Increase in accounts receivable -
oil and gas sales ( 442,065) ( 159,459)
Increase in accounts receivable -
related party ( 959) -
Decrease in accounts payable ( 35,710) ( 142,878)
---------- ----------
Net cash provided by operating
activities $3,061,626 $2,061,329
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 89,038) ($ 27,366)
Proceeds from sale of oil and
gas properties - 1,587
---------- ----------
Net cash used by investing activities ($ 89,038) ($ 25,779)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,607,369) ($1,377,359)
---------- ----------
Net cash used by financing activities ($2,607,369) ($1,377,359)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 365,219 $ 658,191
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 891,310 12,003
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,256,529 $ 670,194
========== ==========
-9-
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING ACTIVITIES
The Geodyne I-E Partnership sold certain oil and gas properties during the
nine months ended September 30, 2000 for which proceeds and interest
thereon were due from a related party at September 30, 2000.
The accompanying condensed notes are an integral part of these
combined financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 326,390 $ 254,500
Accounts receivable:
Oil and gas sales 350,934 250,188
Related Party (Note 2) 83,919 -
---------- ----------
Total current assets $ 761,243 $ 504,688
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,041,630 1,110,525
DEFERRED CHARGE 375,691 375,691
---------- ----------
$2,178,564 $1,990,904
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 32,494 $ 33,956
Gas imbalance payable 68,901 68,901
---------- ----------
Total current liabilities $ 101,395 $ 102,857
ACCRUED LIABILITY $ 122,086 $ 122,086
PARTNERS' CAPITAL (DEFICIT):
General Partner $ 15,111 ($ 9,232)
Limited Partners, issued and
outstanding, 14,321 units 1,939,972 1,775,193
---------- ----------
Total Partners' capital $1,955,083 $1,765,961
---------- ----------
$2,178,564 $1,990,904
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $522,159 $408,335
Interest income, including $672
from a related party in 2000
(Note 2) 4,087 1,095
Gain on sale of oil and gas
properties 63,355 546
-------- --------
$589,601 $409,976
COSTS AND EXPENSES:
Lease operating $ 96,657 $100,184
Production tax 34,396 22,677
Depreciation, depletion, and
amortization of oil and gas
properties 33,976 49,917
General and administrative
(Note 2) 43,351 41,662
-------- --------
$208,380 $214,440
-------- --------
NET INCOME $381,221 $195,536
======== ========
GENERAL PARTNER - NET INCOME $ 61,327 $ 36,154
======== ========
LIMITED PARTNERS - NET INCOME $319,894 $159,382
======== ========
NET INCOME per unit $ 22.34 $ 11.13
======== ========
UNITS OUTSTANDING 14,321 14,321
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
----------- ----------
REVENUES:
Oil and gas sales $1,464,412 $ 919,529
Interest income, including $672
from a related party in 2000
(Note 2) 10,084 1,856
Gain on sale of oil and gas
properties 63,355 546
Insurance settlement - 472,500
---------- ----------
$1,537,851 $1,394,431
COSTS AND EXPENSES:
Lease operating $ 313,152 $ 277,636
Production tax 91,347 53,848
Depreciation, depletion, and
amortization of oil and gas
properties 107,977 134,083
General and administrative
(Note 2) 139,042 137,597
---------- ----------
$ 651,518 $ 603,164
---------- ----------
NET INCOME $ 886,333 $ 791,267
========== ==========
GENERAL PARTNER - NET INCOME $ 146,554 $ 137,183
========== ==========
LIMITED PARTNERS - NET INCOME $ 739,779 $ 654,084
========== ==========
NET INCOME per unit $ 51.66 $ 45.67
========== ==========
UNITS OUTSTANDING 14,321 14,321
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $886,333 $791,267
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 107,977 134,083
Gain on sale of oil and gas
properties ( 63,355) ( 546)
Increase in accounts receivable -
oil and gas sales ( 100,746) ( 62,647)
Increase in accounts receivable -
related party ( 672) -
Decrease in accounts payable ( 1,462) ( 375,334)
-------- --------
Net cash provided by operating
activities $828,075 $486,823
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 58,974) ($ 18,998)
Proceeds from sale of oil and
gas properties - 2,004
-------- --------
Net cash used by investing
activities ($ 58,974) ($ 16,994)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($697,211) ($316,341)
-------- --------
Net cash used by financing activities ($697,211) ($316,341)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 71,890 $153,488
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 254,500 5,457
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $326,390 $158,945
======== ========
-14-
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING ACTIVITIES
The Geodyne I-F Partnership sold certain oil and gas properties during the
nine months ended September 30, 2000 for which proceeds and interest
thereon were due from a related party at September 30, 2000.
The accompanying condensed notes are an integral part of these
combined financial statements.
-15-
GEODYNE ENERGY INCOME PROGRAM I LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of September 30, 2000, combined statements
of operations for the three and nine months ended September 30, 2000 and
1999, and combined statements of cash flows for the nine months ended
September 30, 2000 and 1999 have been prepared by Geodyne Resources, Inc.,
the General Partner of the limited partnerships, without audit. Each
limited partnership is a general partner in the related Geodyne Energy
Income Production Partnership in which Geodyne Resources, Inc. serves as
the managing partner. Unless the context indicates otherwise, all
references to a "Partnership" or the "Partnerships" are references to the
limited partnership and its related production partnership, collectively,
and all references to the "General Partner" are references to the general
partner of the limited partnerships and the managing partner of the
production partnerships, collectively. In the opinion of management the
financial statements referred to above include all necessary adjustments,
consisting of normal recurring adjustments, to present fairly the combined
financial position at September 30, 2000, the combined results of
operations for the three and nine months ended September 30, 2000 and
1999, and the combined cash flows for the nine months ended September 30,
2000 and 1999.
Information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The accompanying interim
financial statements should be read in conjunction with the Partnerships'
Annual Report on Form 10-K filed for the year ended December 31, 1999. The
results of operations for the period ended September 30, 2000 are not
necessarily indicative of the results to be expected for the full year.
The Limited Partners' net income or loss per unit is based upon each
$1,000 initial capital contribution.
-16-
OIL AND GAS PROPERTIES
----------------------
The Partnerships follow the successful efforts method of accounting for
their oil and gas properties. Under the successful efforts method, the
Partnerships capitalize all property acquisition costs and development
costs incurred in connection with the further development of oil and gas
reserves. Property acquisition costs include costs incurred by the
Partnerships or the General Partner to acquire producing properties,
including related title insurance or examination costs, commissions,
engineering, legal and accounting fees, and similar costs directly related
to the acquisitions, plus an allocated portion, of the General Partner's
property screening costs. The acquisition cost to the Partnerships of
properties acquired by the General Partner is adjusted to reflect the net
cash results of operations, including interest incurred to finance the
acquisition, for the period of time the properties are held by the General
Partner prior to their transfer to the Partnerships. Leasehold impairment
is recognized based upon an individual property assessment and exploratory
experience. Upon discovery of commercial reserves, leasehold costs are
transferred to producing properties.
Depletion of the costs of producing oil and gas properties, amortization
of related intangible drilling and development costs, and depreciation of
tangible lease and well equipment are computed on the unit-of-production
method. The Partnerships' depletion, depreciation, and amortization
includes estimated dismantlement and abandonment costs, net of estimated
salvage value.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss reflected in income. When less than complete units of depreciable
property are retired or sold, the proceeds are credited to oil and gas
properties.
-17-
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' partnership agreements provide for reimbursement to the
General Partner for all direct general and administrative expenses and for
the general and administrative overhead applicable to the Partnerships
based on an allocation of actual costs incurred. During the three months
ended September 30, 2000 the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
I-D $2,271 $ 19,986
I-E 8,648 116,220
I-F 3,571 39,780
During the nine months ended September 30, 2000 the following payments
were made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
I-D $11,205 $ 59,958
I-E 52,417 348,660
I-F 19,702 119,340
Affiliates of the Partnerships operate certain of the Partnerships'
properties and their policy is to bill the Partnerships for all customary
charges and cost reimbursements associated with their activities.
The accounts receivable - related party at September 30, 2000 for the I-E
and I-F Partnerships represents accrued proceeds and interest due from a
related party for the sale of certain oil and gas properties during the
nine months ended September 30, 2000. Subsequent to September 30, 2000,
such amounts were collected.
-18-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
- -----------------------------------------------
This Quarterly Report contains certain forward-looking statements. The
words "anticipate", "believe", "expect", "plan", "intend", "estimate",
"project", "could", "may" and similar expressions are intended to identify
forward-looking statements. Such statements reflect management's current
views with respect to future events and financial performance. This
Quarterly Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions are
management's efforts to accurately reflect the condition and operation of
the Partnerships.
Use of forward-looking statements and estimates and assumptions involve
risks and uncertainties which include, but are not limited to, the
volatility of oil and gas prices, the uncertainty of reserve information,
the operating risk associated with oil and gas properties (including the
risk of personal injury, death, property damage, damage to the well or
producing reservoir, environmental contamination, and other operating
risks), the prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the general
economic climate, the supply and price of foreign imports of oil and gas,
the level of consumer product demand, and the price and availability of
alternative fuels. Should one or more of these risks or uncertainties
occur or should estimates or underlying assumptions prove incorrect,
actual conditions or results may vary materially and adversely from those
stated, anticipated, believed, estimated, and otherwise indicated.
GENERAL
- -------
The Partnerships are engaged in the business of acquiring and operating
producing oil and gas properties located in the continental United States.
In general, a Partnership acquired producing properties and did not engage
in development drilling or enhanced recovery projects, except as an
incidental part of the management of the producing properties acquired.
Therefore, the economic life of each Partnership, and its related
Production Partnership, is limited to the period of time required to fully
produce its acquired oil and gas reserves. The net proceeds from the oil
and gas operations are distributed to the Limited Partners and the General
Partner in accordance with the terms of the Partnerships' partnership
agreements.
-19-
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
I-D March 4, 1986 $ 7,194,700
I-E September 10, 1986 41,839,400
I-F December 16, 1986 14,320,900
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
Net proceeds from the operations less necessary operating capital are
distributed to the Limited Partners on a quarterly basis. Revenues and net
proceeds of a Partnership are largely dependent upon the volumes of oil
and gas sold and the prices received for such oil and gas. While the
General Partner cannot predict future pricing trends, it believes the
working capital available as of September 30, 2000 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction with the
analysis of results of operations provided below. The most important
variables affecting the Partnerships' revenues are the prices received for
the sale of oil and gas and the volumes of oil and gas produced. The
Partnerships' production is mainly natural gas, so such pricing and
volumes are the most significant factors.
-20-
Due to the volatility of oil and gas prices, forecasting future prices is
subject to great uncertainty and inaccuracy. Substantially all of the
Partnerships' gas reserves are being sold in the "spot market". Prices on
the spot market are subject to wide seasonal and regional pricing
fluctuations due to the highly competitive nature of the spot market. Such
spot market sales are generally short-term in nature and are dependent
upon the obtaining of transportation services provided by pipelines.
However, oil and gas are depleting assets, so it can be expected that
production levels will decline over time. Recent gas prices have been
significantly higher than the Partnerships' historical average. This is
attributable to the higher prices for crude oil, a substitute fuel in some
markets, and reduced production due to lower capital investments in 1998
and 1999.
I-D PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1999.
Three Months Ended September 30,
--------------------------------
2000 1999
-------- --------
Oil and gas sales $370,080 $250,390
Oil and gas production expenses $ 52,802 $ 39,158
Barrels produced 1,508 2,577
Mcf produced 79,570 82,545
Average price/Bbl $ 33.18 $ 17.61
Average price/Mcf $ 4.02 $ 2.48
As shown in the table above, total oil and gas sales increased $119,690
(47.8%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$23,000 and $122,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $19,000 related to a decrease in volumes of
oil sold. Volumes of oil and gas sold decreased 1,069 barrels and 2,975
Mcf, respectively, for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. The decrease in
volumes of oil sold was primarily due to (i) normal declines in production
and (ii) a positive prior period volume adjustment on one significant well
during the three months ended September 30, 1999. Average oil and gas
prices increased to $33.18 per barrel and $4.02 per Mcf, respectively, for
the three months ended September 30, 2000 from $17.61 per barrel and $2.48
per Mcf, respectively, for the three months ended September 30, 1999.
-21-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $13,644 (34.8%) for the three months ended
September 30, 2000 as compared to the three months ended September 30,
1999. This increase was primarily due to (i) an increase in production
taxes associated with the increase in oil and gas sales and (ii) workover
expenses incurred on one significant well during the three months ended
September 30, 2000. As a percentage of oil and gas sales, these expenses
decreased to 14.3% for the three months ended September 30, 2000 from
15.6% for the three months ended September 30, 1999.
Depreciation, depletion, and amortization of oil and gas properties
increased $2,169 (14.1%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This increase was
primarily due to downward revisions in the estimates of remaining gas
reserves on three significant wells at December 31, 1999. This increase
was partially offset by the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense decreased to 4.7% for the
three months ended September 30, 2000 from 6.2% for the three months ended
September 30, 1999. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
General and administrative expenses increased $1,323 (6.3%) for the three
months ended September 30, 2000 as compared to the three months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 6.0% for the three months ended September 30, 2000 from 8.4%
for the three months ended September 30, 1999. This percentage decrease
was primarily due to the increase in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1999.
Nine Months Ended September 30,
-------------------------------
2000 1999
-------- --------
Oil and gas sales $958,710 $572,783
Oil and gas production expenses $181,937 $115,512
Barrels produced 5,066 7,386
Mcf produced 243,202 234,026
Average price/Bbl $ 31.10 $ 14.10
Average price/Mcf $ 3.29 $ 2.00
As shown in the table above, total oil and gas sales increased $385,927
(67.4%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$86,000
-22-
and $314,000, respectively, were related to increases in the average
prices of oil and gas sold. Volumes of oil sold decreased 2,320 barrels,
while volumes of gas sold increased 9,176 Mcf for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. The decrease in volumes of oil sold was primarily due to (i) normal
declines in production and (ii) a positive prior period volume adjustment
on one significant well during the nine months ended September 30, 1999.
Average oil and gas prices increased to $31.10 per barrel and $3.29 per
Mcf, respectively, for the nine months ended September 30, 2000 from
$14.10 per barrel and $2.00 per Mcf, respectively, for the nine months
ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $66,425 (57.5%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This increase was primarily due to (i) workover expenses incurred on
one significant well during the nine months ended September 30, 2000 in
order to improve the recovery of reserves, (ii) an increase in production
taxes associated with the increase in oil and gas sales, and (iii) a
negative prior period lease operating expense adjustment made by the
operator on another significant well during the three months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 19.0% for the nine months ended September 30, 2000 from 20.2%
for the nine months ended September 30, 1999.
Depreciation, depletion, and amortization of oil and gas properties
increased $8,801 (19.4%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This increase was
primarily due to downward revisions in the estimates of remaining gas
reserves on three significant wells at December 31, 1999. As a percentage
of oil and gas sales, this expense decreased to 5.7% for the nine months
ended September 30, 2000 from 7.9% for the nine months ended September 30,
1999. This percentage decrease was primarily due to the increases in the
average prices of oil and gas sold.
General and administrative expenses increased $1,673 (2.4%) for the nine
months ended September 30, 2000 as compared to the nine months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 7.4% for the nine months ended September 30, 2000 from 12.1%
for the nine months ended September 30, 1999. This percentage decrease was
primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2000 totaling $14,888,175 or 206.93% of Limited Partners' capital
contributions.
-23-
I-E PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1999.
Three Months Ended September 30,
--------------------------------
2000 1999
---------- ----------
Oil and gas sales $1,909,516 $1,252,798
Oil and gas production expenses $ 330,043 $ 269,934
Barrels produced 12,874 13,360
Mcf produced 383,740 411,175
Average price/Bbl $ 28.37 $ 19.65
Average price/Mcf $ 4.02 $ 2.41
As shown in the table above, total oil and gas sales increased $656,718
(52.4%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$112,000 and $620,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $66,000 related to a decrease in volumes of
gas sold. Volumes of oil and gas sold decreased 486 barrels and 27,435
Mcf, respectively, for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. Average oil and gas
prices increased to $28.37 per barrel and $4.02 per Mcf, respectively, for
the three months ended September 30, 2000 from $19.65 per barrel and $2.41
per Mcf, respectively, for the three months ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $60,109 (22.3%) for the three months ended
September 30, 2000 as compared to the three months ended September 30,
1999. This increase was primarily due to an increase in production taxes
associated with the increase in oil and gas sales. As a percentage of oil
and gas sales, these expenses decreased to 17.3% for the three months
ended September 30, 2000 from 21.5% for the three months ended September
30, 1999. This percentage decrease was primarily due to the increases in
the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $15,600 (10.0%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This decrease was
primarily due to (i) the decreases in volumes of oil and gas sold and (ii)
upward revisions in the estimates of remaining oil and gas reserves at
December 31, 1999. As a percentage of oil and gas sales, this expense
decreased to 7.3% for the three
-24-
months ended September 30, 2000 from 12.4% for the three months ended
September 30, 1999. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
General and administrative expenses increased $3,145 (2.6%) for the three
months ended September 30, 2000 as compared to the three months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 6.5% for the three months ended September 30, 2000 from 9.7%
for the three months ended September 30, 1999. This percentage decrease
was primarily due to the increase in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1999.
Nine Months Ended September 30,
-------------------------------
2000 1999
---------- ----------
Oil and gas sales $4,891,139 $2,906,835
Oil and gas production expenses $ 984,005 $ 827,279
Barrels produced 40,716 44,371
Mcf produced 1,177,876 1,162,880
Average price/Bbl $ 28.19 $ 14.71
Average price/Mcf $ 3.18 $ 1.94
As shown in the table above, total oil and gas sales increased $1,984,304
(68.3%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$549,000 and $1,460,000, respectively, were related to increases in the
average prices of oil and gas sold. Volumes of oil sold decreased 3,655
barrels, while volumes of gas sold increased 14,996 Mcf for the nine
months ended September 30, 2000 as compared to the nine months ended
September 30, 1999. Average oil and gas prices increased to $28.19 per
barrel and $3.18 per Mcf, respectively, for the nine months ended
September 30, 2000 from $14.71 per barrel and $1.94 per Mcf, respectively,
for the nine months ended September 30, 1999.
The I-E Partnership recognized an insurance settlement in the amount of
$675,000 during the nine months ended September 30, 1999. No similar
settlements occurred during the nine months ended September 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $156,726 (18.9%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This increase was primarily due to an increase in production taxes
associated with the increase in oil and gas sales. As a percentage of
-25-
oil and gas sales, these expenses decreased to 20.1% for the nine months
ended September 30, 2000 from 28.5% for the nine months ended September
30, 1999. This percentage decrease was primarily due to the increases in
the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
remained relatively constant for the nine months ended September 30, 2000
as compared to the nine months ended September 30, 1999. As a percentage
of oil and gas sales, this expense decreased to 8.8% for the nine months
ended September 30, 2000 from 14.9% for the nine months ended September
30, 1999. This percentage decrease was primarily due to the increases in
the average prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 2000 as compared to the nine months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 8.2% for the nine months ended September 30, 2000 from 13.8%
for the nine months ended September 30, 1999. This percentage decrease was
primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2000 totaling $57,567,552 or 137.59% of Limited Partners' capital
contributions.
I-F PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1999.
Three Months Ended September 30,
--------------------------------
2000 1999
-------- --------
Oil and gas sales $522,159 $408,335
Oil and gas production expenses $131,053 $122,861
Barrels produced 6,032 6,158
Mcf produced 85,874 113,037
Average price/Bbl $ 28.25 $ 19.40
Average price/Mcf $ 4.10 $ 2.56
As shown in the table above, total oil and gas sales increased $113,824
(27.9%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase approximately
$53,000 and $132,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $69,000 related to a decrease in volumes of
gas sold. Volumes of oil and gas sold decreased 126 barrels and 27,163
Mcf,
-26-
respectively, for the three months ended September 30, 2000 as compared to
the three months ended September 30, 1999. The decrease in volumes of gas
sold was primarily due to (i) positive prior period volume adjustments
made by the purchaser on three significant wells during the three months
ended September 30, 1999 and (ii) normal declines in production. Average
oil and gas prices increased to $28.25 per barrel and $4.10 per Mcf,
respectively, for the three months ended September 30, 2000 from $19.40
per barrel and $2.56 per Mcf, respectively, for the three months ended
September 30, 1999.
The I-F Partnership sold certain oil and gas properties during the three
months ended September 30, 2000 and recognized a $63,355 gain on such
sales. Sales of oil and gas properties during the three months ended
September 30, 1999 resulted in the I-F Partnership recognizing similar
gains of $546.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $8,192 (6.7%) for the three months ended
September 30, 2000 as compared to the three months ended September 30,
1999. As a percentage of oil and gas sales, these expenses decreased to
25.1% for the three months ended September 30, 2000 from 30.1% for the
three months ended September 30, 1999. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $15,941 (31.9%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This decrease was
primarily due to (i) the decreases in volumes of oil and gas sold and (ii)
upward revisions in the estimates of remaining oil and gas reserves at
December 31, 1999. As a percentage of oil and gas sales, this expense
decreased to 6.5% for the three months ended September 30, 2000 from 12.2%
for the three months ended September 30, 1999. This percentage decrease
was primarily due to the increases in the average prices of oil and gas
sold.
General and administrative expenses increased $1,689 (4.1%) for the three
months ended September 30, 2000 as compared to the three months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 8.3% for the three months ended September 30, 2000 from 10.2%
for the three months ended September 30, 1999. This percentage decrease
was primarily due to the increase in oil and gas sales.
-27-
NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1999.
Nine Months Ended September 30,
-------------------------------
2000 1999
---------- --------
Oil and gas sales $1,464,412 $919,529
Oil and gas production expenses $ 404,499 $331,484
Barrels produced 19,605 21,118
Mcf produced 270,310 296,248
Average price/Bbl $ 28.61 $ 14.65
Average price/Mcf $ 3.34 $ 2.06
As shown in the table above, total oil and gas sales increased $544,883
(59.3%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$274,000 and $347,000, respectively, were related to increases in the
average prices of oil and gas sold. Volumes of oil and gas sold decreased
1,513 barrels and 25,938 Mcf, respectively, for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. Average oil and gas prices increased to $28.61 per barrel and $3.34
per Mcf, respectively, for the nine months ended September 30, 2000 from
$14.65 per barrel and $2.06 per Mcf, respectively, for the nine months
ended September 30, 1999.
The I-F Partnership recognized an insurance settlement in the amount of
$472,500 during the nine months ended September 30, 1999. No similar
settlements occurred during the nine months ended September 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $73,015 (22.0%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This increase was primarily due to (i) an increase in production
taxes associated with the increase in oil and gas sales, (ii) legal
expenses incurred on one significant well during the nine months ended
September 30, 2000, and (iii) positive prior period lease operating
expense adjustments made by the operator on several wells during the nine
months ended September 30, 2000. As a percentage of oil and gas sales,
these expenses decreased to 27.6% for the nine months ended September 30,
2000 from 36.0% for the nine months ended September 30, 1999. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
-28-
Depreciation, depletion, and amortization of oil and gas properties
decreased $26,106 (19.5%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This decrease was
primarily due to (i) upward revisions in the estimates of remaining oil
and gas reserves at December 31, 1999 and (ii) the decreases in volumes of
oil and gas sold. As a percentage of oil and gas sales, this expense
decreased to 7.4% for the nine months ended September 30, 2000 from 14.6%
for the nine months ended September 30, 1999. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
General and administrative expenses decreased $1,445 (1.1%) for the nine
months ended September 30, 2000 as compared to the nine months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 9.5% for the nine months ended September 30, 2000 from 15.0%
for the nine months ended September 30, 1999. This percentage decrease was
primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2000 totaling $18,956,664 or 132.37% of Limited Partners' capital
contributions.
-29-
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
-30-
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule containing summary financial information
extracted from the I-D Partnership's financial statements as of
September 30, 2000 and for the nine months ended September 30, 2000,
filed herewith.
27.2 Financial Data Schedule containing summary financial information
extracted from the I-E Partnership's financial statements as of
September 30, 2000 and for the nine months ended September 30, 2000,
filed herewith.
27.3 Financial Data Schedule containing summary financial information
extracted from the I-F Partnership's financial statements as of
September 30, 2000 and for the nine months ended September 30, 2000,
filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
None.
-31-
SIGNATURES
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.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: November 13, 2000 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: November 13, 2000 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
-32-
INDEX TO EXHIBITS
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership I-D's
financial statements as of September 30, 2000 and for the nine
months ended September 30, 2000, filed herewith.
27.2 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership I-E's
financial statements as of September 30, 2000 and for the nine
months ended September 30, 2000, filed herewith.
27.3 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership I-F's
financial statements as of September 30, 2000 and for the nine
months ended September 30, 2000, filed herewith.
All other exhibits are omitted as inapplicable.