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:
II-A: 0-16388 II-D: 0-16980 II-G: 0-17802
II-B: 0-16405 II-E: 0-17320 II-H: 0-18305
II-C: 0-16981 II-F: 0-17799
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
---------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
II-A 73-1295505 II-B 73-1303341
II-C 73-1308986 II-D 73-1329761
II-E 73-1324751 II-F 73-1330632
Oklahoma II-G 73-1336572 II-H 73-1342476
- ---------------------------- -------------------------------
(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 II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,059,121 $ 723,978
Accounts receivable:
Oil and gas sales 982,007 702,392
Related party (Note 2) 35,966 -
---------- ----------
Total current assets $2,077,094 $1,426,370
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,227,291 3,541,487
DEFERRED CHARGE 732,855 732,855
---------- ----------
$6,037,240 $5,700,712
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 78,949 $ 112,953
Gas imbalance payable 123,801 123,801
---------- ----------
Total current liabilities $ 202,750 $ 236,754
ACCRUED LIABILITY $ 221,438 $ 221,438
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 329,373) ($ 380,195)
Limited Partners, issued and
outstanding, 484,283 units 5,942,425 5,622,715
---------- ----------
Total Partners' capital $5,613,052 $5,242,520
---------- ----------
$6,037,240 $5,700,712
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $1,458,416 $1,135,642
Interest income, including $288
from a related party in 2000
(Note 2) 11,819 5,895
Gain on sale of oil and gas
properties 95,992 1,237
---------- ----------
$1,566,227 $1,142,774
COSTS AND EXPENSES:
Lease operating $ 223,242 $ 214,199
Production tax 86,546 71,176
Depreciation, depletion, and
amortization of oil and gas
properties 118,226 175,328
General and administrative
(Note 2) 137,466 134,000
---------- ----------
$ 565,480 $ 594,703
---------- ----------
NET INCOME $1,000,747 $ 548,071
========== ==========
GENERAL PARTNER - NET INCOME $ 109,533 $ 34,122
========== ==========
LIMITED PARTNERS - NET INCOME $ 891,214 $ 513,949
========== ==========
NET INCOME per unit $ 1.84 $ 1.06
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $4,104,104 $2,629,667
Interest income, including $288
from a related party in 2000
(Note 2) 28,321 10,585
Gain on sale of oil and gas
properties 96,301 1,237
Insurance settlement - 202,500
---------- ----------
$4,228,726 $2,843,989
COSTS AND EXPENSES:
Lease operating $ 778,877 $ 772,355
Production tax 226,639 144,189
Depreciation, depletion, and
amortization of oil and gas
properties 377,304 463,573
General and administrative
(Note 2) 442,756 441,628
---------- ----------
$1,825,576 $1,821,745
---------- ----------
NET INCOME $2,403,150 $1,022,244
========== ==========
GENERAL PARTNER - NET INCOME $ 271,440 $ 69,126
========== ==========
LIMITED PARTNERS - NET INCOME $2,131,710 $ 953,118
========== ==========
NET INCOME per unit $ 4.40 $ 1.97
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
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 $2,403,150 $1,022,244
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 377,304 463,573
Gain on sale of oil and gas
properties ( 96,301) ( 1,237)
Increase in accounts receivable -
oil and gas sales ( 279,615) ( 188,318)
Increase in accounts receivable -
related party ( 288) -
Decrease in accounts payable ( 34,004) ( 94,478)
---------- ----------
Net cash provided by operating
activities $2,370,246 $1,201,784
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 63,108) ($ 9,141)
Proceeds from sale of oil and
gas properties 60,623 12,063
---------- ----------
Net cash provided (used) by investing
activities ($ 2,485) $ 2,922
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,032,618) ($ 721,184)
---------- ----------
Net cash used by financing activities ($2,032,618) ($ 721,184)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 335,143 $ 483,522
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 723,978 213,480
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,059,121 $ 697,002
========== ==========
-5-
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING ACTIVITIES
The Geodyne II-A 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.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 891,584 $ 372,838
Accounts receivable:
Oil and gas sales 707,462 512,039
---------- ----------
Total current assets $1,599,046 $ 884,877
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,116,223 2,259,415
DEFERRED CHARGE 230,320 230,320
---------- ----------
$3,945,589 $3,374,612
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 55,521 $ 89,312
Gas imbalance payable 21,890 21,890
---------- ----------
Total current liabilities $ 77,411 $ 111,202
ACCRUED LIABILITY $ 97,529 $ 97,529
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 280,584) ($ 290,773)
Limited Partners, issued and
outstanding, 361,719 units 4,051,233 3,456,654
---------- ----------
Total Partners' capital $3,770,649 $3,165,881
---------- ----------
$3,945,589 $3,374,612
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- --------
REVENUES:
Oil and gas sales $ 993,491 $812,462
Interest income 9,327 3,131
Gain on sale of oil and gas
properties 248,695 -
---------- --------
$1,251,513 $815,593
COSTS AND EXPENSES:
Lease operating $ 152,996 $162,365
Production tax 60,369 58,135
Depreciation, depletion, and
amortization of oil and gas
properties 60,150 107,581
General and administrative
(Note 2) 102,926 100,087
---------- --------
$ 376,441 $428,168
---------- --------
NET INCOME $ 875,072 $387,425
========== ========
GENERAL PARTNER - NET INCOME $ 45,694 $ 23,518
========== ========
LIMITED PARTNERS - NET INCOME $ 829,378 $363,907
========== ========
NET INCOME per unit $ 2.30 $ 1.01
========== ========
UNITS OUTSTANDING 361,719 361,719
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $2,859,162 $1,898,187
Interest income 18,701 5,515
Gain on sale of oil and gas
properties 249,921 -
---------- ----------
$3,127,784 $1,903,702
COSTS AND EXPENSES:
Lease operating $ 528,145 $ 590,298
Production tax 161,364 122,224
Depreciation, depletion, and
amortization of oil and gas
properties 196,773 292,007
General and administrative
(Note 2) 331,486 329,001
---------- ----------
$1,217,768 $1,333,530
---------- ----------
NET INCOME $1,910,016 $ 570,172
========== ==========
GENERAL PARTNER - NET INCOME $ 102,437 $ 39,913
========== ==========
LIMITED PARTNERS - NET INCOME $1,807,579 $ 530,259
========== ==========
NET INCOME per unit $ 5.00 $ 1.47
========== ==========
UNITS OUTSTANDING 361,719 361,719
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
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 $1,910,016 $570,172
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 196,773 292,007
Gain on sale of oil and gas
properties ( 249,921) -
Increase in accounts receivable -
oil and gas sales ( 195,423) ( 148,927)
Decrease in accounts payable ( 33,791) ( 18,708)
---------- --------
Net cash provided by operating
activities $1,627,654 $694,544
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 54,407) ($ 1,454)
Proceeds from sale of oil and
gas properties 250,747 23,208
---------- --------
Net cash provided by investing
activities $ 196,340 $ 21,754
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,305,248) ($388,096)
---------- --------
Net cash used by financing activities ($1,305,248) ($388,096)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 518,746 $328,202
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 372,838 107,021
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 891,584 $435,223
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 332,162 $ 204,820
Accounts receivable:
Oil and gas sales 322,879 244,751
Related party (Note 2) 23,345 -
---------- ----------
Total current assets $ 678,386 $ 449,571
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,145,893 1,225,550
DEFERRED CHARGE 129,664 129,664
---------- ----------
$1,953,943 $1,804,785
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 23,255 $ 38,355
Gas imbalance payable 20,300 20,300
---------- ----------
Total current liabilities $ 43,555 $ 58,655
ACCRUED LIABILITY $ 54,063 $ 54,063
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 106,365) ($ 119,145)
Limited Partners, issued and
outstanding, 154,621 units 1,962,690 1,811,212
---------- ----------
Total Partners' capital $1,856,325 $1,692,067
---------- ----------
$1,953,943 $1,804,785
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
REVENUES:
Oil and gas sales $453,932 $379,273
Interest income, including $187
from a related party in 2000
(Note 2) 3,539 1,808
Gain on sale of oil and
gas properties 63,119 -
-------- --------
$520,590 $381,081
COSTS AND EXPENSES:
Lease operating $ 61,261 $ 65,164
Production tax 31,711 26,752
Depreciation, depletion, and
amortization of oil and gas
properties 29,172 59,416
General and administrative
(Note 2) 44,530 42,780
-------- --------
$166,674 $194,112
-------- --------
NET INCOME $353,916 $186,969
======== ========
GENERAL PARTNER - NET INCOME $ 37,663 $ 23,864
======== ========
LIMITED PARTNERS - NET INCOME $316,253 $163,105
======== ========
NET INCOME per unit $ 2.04 $ 1.06
======== ========
UNITS OUTSTANDING 154,621 154,621
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- --------
REVENUES:
Oil and gas sales $1,315,347 $903,938
Interest income, including $187
from a related party in 2000
(Note 2) 8,409 3,668
Gain on sale of oil and
gas properties 68,179 47
---------- --------
$1,391,935 $907,653
COSTS AND EXPENSES:
Lease operating $ 220,670 $227,596
Production tax 82,539 69,002
Depreciation, depletion, and
amortization of oil and gas
properties 102,356 163,546
General and administrative
(Note 2) 143,204 141,385
---------- --------
$ 548,769 $601,529
---------- --------
NET INCOME $ 843,166 $306,124
========== ========
GENERAL PARTNER - NET INCOME $ 92,688 $ 44,965
========== ========
LIMITED PARTNERS - NET INCOME $ 750,478 $261,159
========== ========
NET INCOME per unit $ 4.85 $ 1.69
========== ========
UNITS OUTSTANDING 154,621 154,621
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
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 $843,166 $306,124
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 102,356 163,546
Gain on sale of oil and
properties ( 68,179) ( 47)
Increase in accounts receivable -
oil and gas sales ( 78,128) ( 73,459)
Increase in accounts receivable -
related party ( 187) -
Decrease in accounts payable ( 15,100) ( 5,178)
-------- --------
Net cash provided by operating
activities $783,928 $390,986
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 23,347) ($ 10,587)
Proceeds from sale of oil and
gas properties 45,669 8,735
-------- --------
Net cash provided (used) by investing
activities $ 22,322 ($ 1,852)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($678,908) ($228,872)
-------- --------
Net cash used by financing activities ($678,908) ($228,872)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $127,342 $160,262
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 204,820 66,617
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $332,162 $226,879
======== ========
-14-
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING ACTIVITIES
The Geodyne II-C 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 LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 642,292 $ 547,528
Accounts receivable:
Oil and gas sales 622,710 461,491
Related party (Note 2) 244,989 -
---------- ----------
Total current assets $1,509,991 $1,009,019
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,127,438 2,315,758
DEFERRED CHARGE 415,812 415,812
---------- ----------
$4,053,241 $3,740,589
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 54,715 $ 76,408
Gas imbalance payable 114,149 114,149
---------- ----------
Total current liabilities $ 168,864 $ 190,557
ACCRUED LIABILITY $ 146,343 $ 146,343
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 187,001) ($ 236,260)
Limited Partners, issued and
outstanding, 314,878 units 3,925,035 3,639,949
---------- ----------
Total Partners' capital $3,738,034 $3,403,689
---------- ----------
$4,053,241 $3,740,589
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- --------
REVENUES:
Oil and gas sales $ 874,480 $705,104
Interest income, including $1,961
from a related party in 2000
(Note 2) 8,628 3,898
Gain on sale of oil and gas
properties 273,833 -
---------- --------
$1,156,941 $709,002
COSTS AND EXPENSES:
Lease operating $ 155,260 $144,496
Production tax 70,292 48,457
Depreciation, depletion, and
amortization of oil and gas
properties 51,622 102,835
General and administrative
(Note 2) 89,590 87,122
---------- --------
$ 366,764 $382,910
---------- --------
NET INCOME $ 790,177 $326,092
========== ========
GENERAL PARTNER - NET INCOME $ 82,801 $ 41,475
========== ========
LIMITED PARTNERS - NET INCOME $ 707,376 $284,617
========== ========
NET INCOME per unit $ 2.24 $ .90
========== ========
UNITS OUTSTANDING 314,878 314,878
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $2,573,031 $1,831,319
Interest income, including $1,961
from a related party in 2000
(Note 2) 20,686 9,785
Gain on sale of oil and gas
properties 280,809 36,944
---------- ----------
$2,874,526 $1,878,048
COSTS AND EXPENSES:
Lease operating $ 522,479 $ 590,571
Production tax 185,000 137,156
Depreciation, depletion, and
amortization of oil and gas
properties 188,290 307,251
General and administrative
(Note 2) 288,797 286,856
---------- ----------
$1,184,566 $1,321,834
---------- ----------
NET INCOME $1,689,960 $ 556,214
========== ==========
GENERAL PARTNER - NET INCOME $ 183,874 $ 76,853
========== ==========
LIMITED PARTNERS - NET INCOME $1,506,086 $ 479,361
========== ==========
NET INCOME per unit $ 4.78 $ 1.52
========== ==========
UNITS OUTSTANDING 314,878 314,878
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-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 $1,689,960 $556,214
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 188,290 307,251
Gain on sale of oil and gas
properties ( 280,809) ( 36,944)
Increase in accounts receivable -
oil and gas sales ( 161,219) ( 142,613)
Increase in accounts receivable -
related party ( 1,961) -
Decrease in accounts payable ( 21,693) ( 10,936)
---------- --------
Net cash provided by operating
activities $1,412,568 $672,972
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 4,762) ($ 16,831)
Proceeds from sale of oil and
gas properties 42,573 36,944
---------- --------
Net cash provided by investing
activities $ 37,811 $ 20,113
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,355,615) ($564,126)
---------- --------
Net cash used by financing activities ($1,355,615) ($564,126)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 94,764 $128,959
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 547,528 311,556
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 642,292 $440,515
========== ========
-19-
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING ACTIVITIES
The Geodyne II-D 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.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 664,644 $ 450,833
Accounts receivable:
Oil and gas sales 508,830 319,501
---------- ----------
Total current assets $1,173,474 $ 770,334
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,807,443 2,035,168
DEFERRED CHARGE 216,068 216,068
---------- ----------
$3,196,985 $3,021,570
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 30,530 $ 48,834
Gas imbalance payable 37,480 151,074
---------- ----------
Total current liabilities $ 68,010 $ 199,908
ACCRUED LIABILITY $ 42,252 $ 42,252
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 132,746) ($ 162,586)
Limited Partners, issued and
outstanding, 228,821 units 3,219,469 2,941,996
---------- ----------
Total Partners' capital $3,086,723 $2,779,410
---------- ----------
$3,196,985 $3,021,570
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
REVENUES:
Oil and gas sales $823,961 $490,849
Interest income 5,971 3,827
Gain on sale of oil and
gas properties 149,218 -
-------- --------
$979,150 $494,676
COSTS AND EXPENSES:
Lease operating $ 85,972 $ 90,976
Production tax 59,685 36,311
Depreciation, depletion, and
amortization of oil and gas
properties 82,277 104,784
General and administrative
(Note 2) 65,448 63,315
-------- --------
$293,382 $295,386
-------- --------
NET INCOME $685,768 $199,290
======== ========
GENERAL PARTNER - NET INCOME $ 75,385 $ 28,977
======== ========
LIMITED PARTNERS - NET INCOME $610,383 $170,313
======== ========
NET INCOME per unit $ 2.66 $ .75
======== ========
UNITS OUTSTANDING 228,821 228,821
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-22-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $1,994,401 $1,294,093
Interest income 15,544 9,926
Gain on sale of oil and
gas properties 154,694 23,406
---------- ----------
$2,164,639 $1,327,425
COSTS AND EXPENSES:
Lease operating $ 298,068 $ 297,620
Production tax 130,784 90,873
Depreciation, depletion, and
amortization of oil and gas
properties 236,050 330,819
General and administrative
(Note 2) 210,667 208,877
---------- ----------
$ 875,569 $ 928,189
---------- ----------
NET INCOME $1,289,070 $ 399,236
========== ==========
GENERAL PARTNER - NET INCOME $ 148,597 $ 47,711
========== ==========
LIMITED PARTNERS - NET INCOME $1,140,473 $ 351,525
========== ==========
NET INCOME per unit $ 4.98 $ 1.54
========== ==========
UNITS OUTSTANDING 228,821 228,821
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-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 $1,289,070 $399,236
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 236,050 330,819
Gain on sale of oil and gas
properties ( 154,694) ( 23,406)
Increase in accounts receivable -
oil and gas sales ( 189,329) ( 119,316)
Decrease in accounts payable ( 18,304) ( 8,560)
Decrease in gas imbalance payable ( 113,594) -
---------- --------
Net cash provided by operating
activities $1,049,199 $578,773
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 12,770) ($ 5,785)
Proceeds from sale of oil and
gas properties 159,139 27,235
---------- --------
Net cash provided by investing
activities $ 146,369 $ 21,450
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 981,757) ($596,582)
---------- --------
Net cash used by financing activities ($ 981,757) ($596,582)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 213,811 $ 3,641
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 450,833 376,779
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 664,644 $380,420
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-24-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 433,575 $ 280,098
Accounts receivable:
Oil and gas sales 400,802 286,995
---------- ----------
Total current assets $ 834,377 $ 567,093
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,630,739 1,792,192
DEFERRED CHARGE 34,366 34,366
---------- ----------
$2,499,482 $2,393,651
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 23,916 $ 27,269
Gas imbalance payable 5,208 5,208
---------- ----------
Total current liabilities $ 29,124 $ 32,477
ACCRUED LIABILITY $ 22,508 $ 22,508
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 105,875) ($ 112,893)
Limited Partners, issued and
outstanding, 171,400 units 2,553,725 2,451,559
---------- ----------
Total Partners' capital $2,447,850 $2,338,666
---------- ----------
$2,499,482 $2,393,651
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
REVENUES:
Oil and gas sales $582,555 $454,356
Interest income 4,306 1,950
Gain on sale of oil and
gas properties 33,624 -
-------- --------
$620,485 $456,306
COSTS AND EXPENSES:
Lease operating $ 49,261 $ 67,499
Production tax 41,490 26,867
Depreciation, depletion, and
amortization of oil and gas
properties 55,619 75,359
General and administrative
(Note 2) 49,023 47,427
-------- --------
$195,393 $217,152
-------- --------
NET INCOME $425,092 $239,154
======== ========
GENERAL PARTNER - NET INCOME $ 47,084 $ 30,502
======== ========
LIMITED PARTNERS - NET INCOME $378,008 $208,652
======== ========
NET INCOME per unit $ 2.20 $ 1.22
======== ========
UNITS OUTSTANDING 171,400 171,400
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-26-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $1,658,278 $1,225,529
Interest income 10,988 5,125
Gain on sale of oil and
gas properties 51,336 1,203
---------- ----------
$1,720,602 $1,231,857
COSTS AND EXPENSES:
Lease operating $ 192,158 $ 257,961
Production tax 111,350 73,494
Depreciation, depletion, and
amortization of oil and gas
properties 179,439 269,059
General and administrative
(Note 2) 157,414 156,008
---------- ----------
$ 640,361 $ 756,522
---------- ----------
NET INCOME $1,080,241 $ 475,335
========== ==========
GENERAL PARTNER - NET INCOME $ 123,075 $ 71,236
========== ==========
LIMITED PARTNERS - NET INCOME $ 957,166 $ 404,099
========== ==========
NET INCOME per unit $ 5.58 $ 2.36
========== ==========
UNITS OUTSTANDING 171,400 171,400
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-27-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-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 $1,080,241 $475,335
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 179,439 269,059
Gain on sale of oil and gas
properties ( 51,336) ( 1,203)
Increase in accounts receivable -
oil and gas sales ( 113,807) ( 113,842)
Decrease in accounts payable ( 3,353) ( 2,095)
---------- --------
Net cash provided by operating
activities $1,091,184 $627,254
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 24,102) ($ 17,239)
Proceeds from sale of oil and
gas properties 57,452 5,833
---------- --------
Net cash provided (used) by
investing activities $ 33,350 ($ 11,406)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 971,057) ($525,939)
---------- --------
Net cash used by financing activities ($ 971,057) ($525,939)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 153,477 $ 89,909
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 280,098 153,240
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 433,575 $243,149
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-28-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 919,329 $ 633,816
Accounts receivable:
Oil and gas sales 850,582 605,936
---------- ----------
Total current assets $1,769,911 $1,239,752
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,508,180 3,857,776
DEFERRED CHARGE 77,306 77,306
---------- ----------
$5,355,397 $5,174,834
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 51,443 $ 58,877
Gas imbalance payable 11,288 11,288
---------- ----------
Total current liabilities $ 62,731 $ 70,165
ACCRUED LIABILITY $ 52,863 $ 52,863
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 221,991) ($ 266,026)
Limited Partners, issued and
outstanding, 372,189 units 5,461,794 5,317,832
---------- ----------
Total Partners' capital $5,239,803 $5,051,806
---------- ----------
$5,355,397 $5,174,834
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-29-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- --------
REVENUES:
Oil and gas sales $1,237,877 $888,505
Interest income 9,322 4,234
Gain on sale of oil and
gas properties 70,733 -
---------- --------
$1,317,932 $892,739
COSTS AND EXPENSES:
Lease operating $ 105,927 $145,415
Production tax 88,131 54,369
Depreciation, depletion, and
amortization of oil and gas
properties 119,300 157,039
General and administrative
(Note 2) 105,629 102,973
---------- --------
$ 418,987 $459,796
---------- --------
NET INCOME $ 898,945 $432,943
========== ========
GENERAL PARTNER - NET INCOME $ 99,700 $ 27,717
========== ========
LIMITED PARTNERS - NET INCOME $ 799,245 $405,226
========== ========
NET INCOME per unit $ 2.15 $ 1.09
========== ========
UNITS OUTSTANDING 372,189 372,189
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-30-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $3,521,240 $2,593,092
Interest income 24,457 11,235
Gain on sale of oil and
gas properties 107,819 2,693
---------- ----------
$3,653,516 $2,607,020
COSTS AND EXPENSES:
Lease operating $ 412,470 $ 551,590
Production tax 238,578 156,989
Depreciation, depletion, and
amortization of oil and gas
properties 386,603 574,522
General and administrative
(Note 2) 339,964 338,439
---------- ----------
$1,377,615 $1,621,540
---------- ----------
NET INCOME $2,275,901 $ 985,480
========== ==========
GENERAL PARTNER - NET INCOME $ 259,939 $ 71,693
========== ==========
LIMITED PARTNERS - NET INCOME $2,015,962 $ 913,787
========== ==========
NET INCOME per unit $ 5.42 $ 2.46
========== ==========
UNITS OUTSTANDING 372,189 372,189
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-31-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
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 $2,275,901 $ 985,480
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 386,603 574,522
Gain on sale of oil and gas
properties ( 107,819) ( 2,693)
Increase in accounts receivable -
oil and gas sales ( 244,646) ( 236,136)
Decrease in accounts payable ( 7,434) ( 4,300)
---------- ----------
Net cash provided by operating
activities $2,302,605 $1,316,873
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 50,404) ($ 36,609)
Proceeds from sale of oil and
gas properties 121,216 12,505
---------- ----------
Net cash provided (used) by
investing activities $ 70,812 ($ 24,104)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,087,904) ($1,123,090)
---------- ----------
Net cash used by financing activities ($2,087,904) ($1,123,090)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 285,513 $ 169,679
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 633,816 333,168
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 919,329 $ 502,847
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-32-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 229,230 $ 147,018
Accounts receivable:
Oil and gas sales 202,767 143,876
---------- ----------
Total current assets $ 431,997 $ 290,894
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 824,538 906,816
DEFERRED CHARGE 18,072 18,072
---------- ----------
$1,274,607 $1,215,782
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 12,540 $ 14,504
Gas imbalance payable 2,789 2,789
---------- ----------
Total current liabilities $ 15,329 $ 17,293
ACCRUED LIABILITY $ 11,016 $ 11,016
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 64,446) ($ 66,614)
Limited Partners, issued and
outstanding, 91,711 units 1,312,708 1,254,087
---------- ----------
Total Partners' capital $1,248,262 $1,187,473
---------- ----------
$1,274,607 $1,215,782
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-33-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
REVENUES:
Oil and gas sales $295,563 $222,185
Interest income 2,217 906
Gain on sale of oil and
gas properties 16,544 -
-------- --------
$314,324 $223,091
COSTS AND EXPENSES:
Lease operating $ 25,934 $ 35,386
Production tax 21,051 13,556
Depreciation, depletion, and
amortization of oil and gas
properties 28,162 37,057
General and administrative
(Note 2) 26,549 25,373
-------- --------
$101,696 $111,372
-------- --------
NET INCOME $212,628 $111,719
======== ========
GENERAL PARTNER - NET INCOME $ 11,647 $ 7,023
======== ========
LIMITED PARTNERS - NET INCOME $200,981 $104,696
======== ========
NET INCOME per unit $ 2.20 $ 1.14
======== ========
UNITS OUTSTANDING 91,711 91,711
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-34-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
REVENUES:
Oil and gas sales $829,411 $618,940
Interest income 5,698 2,356
Gain on sale of oil and
gas properties 25,142 700
-------- --------
$860,251 $621,996
COSTS AND EXPENSES:
Lease operating $100,340 $132,845
Production tax 57,101 37,682
Depreciation, depletion, and
amortization of oil and gas
properties 90,576 133,998
General and administrative
(Note 2) 84,909 83,453
-------- --------
$332,926 $387,978
-------- --------
NET INCOME $527,325 $234,018
======== ========
GENERAL PARTNER - NET INCOME $ 29,704 $ 16,943
======== ========
LIMITED PARTNERS - NET INCOME $497,621 $217,075
======== ========
NET INCOME per unit $ 5.43 $ 2.37
======== ========
UNITS OUTSTANDING 91,711 91,711
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-35-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
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 $527,325 $234,018
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 90,576 133,998
Gain on sale of oil and gas
properties ( 25,142) ( 700)
Increase in accounts receivable -
oil and gas sales ( 58,891) ( 56,987)
Decrease in accounts payable ( 1,964) ( 986)
-------- --------
Net cash provided by operating
activities $531,904 $309,343
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 11,658) ($ 8,711)
Proceeds from sale of oil and
gas properties 28,502 2,940
-------- --------
Net cash provided (used) by investing
activities $ 16,844 ($ 5,771)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($466,536) ($261,227)
-------- --------
Net cash used by financing activities ($466,536) ($261,227)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 82,212 $ 42,345
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 147,018 78,275
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $229,230 $120,620
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-36-
GEODYNE ENERGY INCOME PROGRAM II 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 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 $100
initial capital contribution.
-37-
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.
-38-
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
----------- ------------------- ---------------
II-A $10,023 $127,443
II-B 7,736 95,190
II-C 3,841 40,689
II-D 6,727 82,863
II-E 5,232 60,216
II-F 3,918 45,105
II-G 7,685 97,944
II-H 2,414 24,135
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
----------- ------------------- ---------------
II-A $ 60,427 $382,329
II-B 45,916 285,570
II-C 21,137 122,067
II-D 40,208 248,589
II-E 30,019 180,648
II-F 22,099 135,315
II-G 46,132 293,832
II-H 12,504 72,405
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
II-A, II-C, and II-D 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.
-39-
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.
-40-
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
----------- ------------------ ---------------
II-A July 22, 1987 $48,428,300
II-B October 14, 1987 36,171,900
II-C January 14, 1988 15,462,100
II-D May 10, 1988 31,487,800
II-E September 27, 1988 22,882,100
II-F January 5, 1989 17,140,000
II-G April 10, 1989 37,218,900
II-H May 17, 1989 9,171,100
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.
The II-B and II-E Partnerships' Statements of Cash Flows for the nine
months ended September 30, 2000 include proceeds from the sale of certain
oil and gas properties during the third quarter of 2000. These proceeds
will be included in these Partnerships' cash distributions to be paid in
November 2000.
-41-
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.
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 on 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.
II-A 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 $1,458,416 $1,135,642
Oil and gas production expenses $ 309,788 $ 285,375
Barrels produced 18,650 19,868
Mcf produced 242,776 332,216
Average price/Bbl $ 27.44 $ 19.28
Average price/Mcf $ 3.90 $ 2.27
As shown in the table above, total oil and gas sales increased $322,774
(28.4%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$152,000 and $397,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of
-42-
approximately $203,000 related to a decrease in volumes of gas sold.
Volumes of oil and gas sold decreased 1,218 barrels and 89,440 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 gas
sold was primarily due to (i) positive prior period volume adjustments
made by the purchaser on one significant well during the three months
ended September 30, 1999 and (ii) the shutting-in of another significant
well during the three months ended September 30, 2000 due to low well
pressure. Average oil and gas prices increased to $27.44 per barrel and
$3.90 per Mcf, respectively, for the three months ended September 30, 2000
from $19.28 per barrel and $2.27 per Mcf, respectively, for the three
months ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $24,413 (8.6%) 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) a
negative prior period lease operating expense adjustment made by the
operator on one significant well during the three months ended September
30, 1999. These increases were partially offset by a positive 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 21.2% for the
three months ended September 30, 2000 from 25.1% 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 $57,102 (32.6%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decreases in volumes of oil and
gas sold. As a percentage of oil and gas sales, this expense decreased to
8.1% for the three months ended September 30, 2000 from 15.4% 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 $3,466 (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 9.4% for the three months ended September 30, 2000 from 11.8%
for the three months ended September 30, 1999. This percentage decrease
was primarily due to the increase in oil and gas sales.
-43-
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 $4,104,104 $2,629,667
Oil and gas production expenses $1,005,516 $ 916,544
Barrels produced 60,076 63,543
Mcf produced 771,454 867,158
Average price/Bbl $ 27.21 $ 14.49
Average price/Mcf $ 3.20 $ 1.97
As shown in the table above, total oil and gas sales increased $1,474,437
(56.1%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$764,000 and $949,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $189,000 related to a decrease in volumes
of gas sold. Volumes of oil and gas sold decreased 3,467 barrels and
95,704 Mcf, respectively, for the nine months ended September 30, 2000 as
compared to the nine 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 one significant well during the nine
months ended September 30, 1999, (ii) the shutting-in of another
significant well during the nine months ended September 30, 2000 due to
low well pressure, and (iii) normal declines in production. Average oil
and gas prices increased to $27.21 per barrel and $3.20 per Mcf,
respectively, for the nine months ended September 30, 2000 from $14.49 per
barrel and $1.97 per Mcf, respectively, for the nine months ended
September 30, 1999.
The II-A Partnership recognized an insurance settlement in the amount of
$202,500 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 $88,972 (9.7%) 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) production
tax credits received from the operator on several wells during the nine
months ended September 30, 1999, and (iii) surface repair and maintenance
expenses incurred on one significant well during the nine months ended
September 30, 2000. These increases were partially offset by workover
-44-
expenses incurred on two other wells during the nine months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 24.5% for the nine months ended September 30, 2000 from 34.9%
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.
Depreciation, depletion, and amortization of oil and gas properties
decreased $86,269 (18.6%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decreases in volumes of oil and
gas sold. As a percentage of oil and gas sales, this expense decreased to
9.2% for the nine months ended September 30, 2000 from 17.6% 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 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 10.8% for the nine months ended September 30, 2000 from 16.8%
for the nine months ended September 30, 1999. This percentage decrease was
primarily due to the increase in oil and gas sales.
The II-A Partnership achieved payout during the nine months ended
September 30, 2000. After payout, operations and revenues for the II-A
Partnership have been and will be allocated using after payout
percentages. After payout percentages allocate operating income and
expenses 10% to the General Partner and 90% to the Limited Partners.
Before payout, operating income and expenses were allocated 5% to the
General Partner and 95% to the Limited Partners. See the Partnerships'
Annual Report on Form 10-K for the year ended December 31, 1999 for a
further discussion of pre and post payout allocations of income and
expense.
The Limited Partners have received cash distributions through September
30, 2000 totaling $49,816,357 or 102.87% of the Limited Partners' capital
contributions.
-45-
II-B 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 $993,491 $812,462
Oil and gas production expenses $213,365 $220,500
Barrels produced 12,436 14,643
Mcf produced 169,234 253,666
Average price/Bbl $ 27.16 $ 18.05
Average price/Mcf $ 3.87 $ 2.16
As shown in the table above, total oil and gas sales increased $181,029
(22.3%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$113,000 and $290,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $40,000 and $182,000, respectively, related
to decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 2,207 barrels and 84,432 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 a
positive prior period volume adjustment made by the purchaser on one
significant well during 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 purchasers on two significant wells
during the three months ended September 30, 1999, (ii) the shutting-in of
one significant well during the three months ended September 30, 2000 due
to low well pressure, and (iii) normal declines in production. Average oil
and gas prices increased to $27.16 per barrel and $3.87 per Mcf,
respectively, for the three months ended September 30, 2000 from $18.05
per barrel and $2.16 per Mcf, respectively, for the three months ended
September 30, 1999.
As discussed in Liquidity and Capital Resources above, the II-B
Partnership sold certain oil and gas properties during the three months
ended September 30, 2000 and recognized a $248,695 gain on such sales. No
such sales occurred during the three months ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $7,135 (3.2%) for the three months ended
September 30, 2000 as compared to the three months ended September 30,
1999. As a percentage of
-46-
oil and gas sales, these expenses decreased to 21.5% for the three months
ended September 30, 2000 from 27.1% 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 $47,431 (44.1%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decreases in volumes of oil and
gas sold. As a percentage of oil and gas sales, this expense decreased to
6.1% for the three months ended September 30, 2000 from 13.2% 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
and the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses increased $2,839 (2.8%) 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 10.4% for the three months ended September 30, 2000 from
12.3% 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 $2,859,162 $1,898,187
Oil and gas production expenses $ 689,509 $ 712,522
Barrels produced 41,378 42,696
Mcf produced 549,461 670,828
Average price/Bbl $ 27.17 $ 14.40
Average price/Mcf $ 3.16 $ 1.91
As shown in the table above, total oil and gas sales increased $960,975
(50.6%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$528,000 and $684,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $232,000 related to a decrease in volumes
of gas sold. Volumes of oil and gas sold decreased 1,318 barrels and
121,367 Mcf, respectively, for the nine months ended September 30, 2000 as
compared to the nine months
-47-
ended September 30, 1999. The decrease in volumes of gas sold was
primarily due to (i) positive prior period volume adjustments made by the
purchasers on two significant wells during the nine months ended September
30, 1999, (ii) the shutting-in of one significant well during the nine
months ended September 30, 2000 due to low well pressure, and (iii) normal
declines in production. Average oil and gas prices increased to $27.17 per
barrel and $3.16 per Mcf, respectively, for the nine months ended
September 30, 2000 from $14.40 per barrel and $1.91 per Mcf, respectively,
for the nine months ended September 30, 1999.
As discussed in Liquidity and Capital Resources above, the II-B
Partnership sold certain oil and gas properties during the nine months
ended September 30, 2000 and recognized a $249,921 gain on such sales. No
such sales occurred during the nine months ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $23,013 (3.2%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This decrease was primarily due to workover expenses incurred on
several wells during the nine months ended September 30, 1999 in order to
improve the recovery of reserves. This decrease was partially offset by 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
24.1% for the nine months ended September 30, 2000 from 37.5% 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
decreased $95,234 (32.6%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decreases in volumes of oil and
gas sold. As a percentage of oil and gas sales, this expense decreased to
6.9% for the nine months ended September 30, 2000 from 15.4% 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 and the
dollar decrease in depreciation, depletion, and amortization.
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 11.6% for the nine months ended September 30, 2000 from 17.3%
for the nine months ended September 30, 1999. This
-48-
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 $36,135,916 or 99.90% of the Limited Partners'
capital contributions. The II-B Partnership achieved payout during the
fourth quarter of 2000. After payout, operations and revenues for the II-B
Partnership have been and will be allocated using after payout
percentages. After payout percentages allocate operating income and
expenses 10% to the General Partner and 90% to the Limited Partners.
Before payout, operating income and expenses were allocated 5% to the
General Partner and 95% to the Limited Partners. See the Partnership's
Annual Report on Form 10-K for the year ended December 31, 1999 for a
further discussion of pre and post payout allocations of income and
expense.
II-C 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 $453,932 $379,273
Oil and gas production expenses $ 92,972 $ 91,916
Barrels produced 3,919 4,847
Mcf produced 85,201 132,959
Average price/Bbl $ 28.81 $ 18.01
Average price/Mcf $ 4.00 $ 2.20
As shown in the table above, total oil and gas sales increased $74,659
(19.7%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$42,000 and $154,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $16,000 and $105,000, respectively, related
to decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 928 barrels and 47,758 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) a
positive prior period volume adjustment made by the purchaser on one
significant well during the three months ended September 30, 1999 and (ii)
normal declines in production. These decreases were partially offset by
increased production on another significant well during the three months
ended September 30, 2000 due to a successful workover during late 1999.
The decrease in volumes of gas sold was primarily due to (i) a positive
prior period volume adjustment made by the
-49-
purchaser on one significant well during the three months ended September
30, 1999, (ii) a negative prior period volume adjustment made by the
operator on another significant well during the three months ended
September 30, 2000, and (iii) the shutting-in of one significant well
during the three months ended September 30, 2000 due to low well pressure.
Average oil and gas prices increased to $28.81 per barrel and $4.00 per
Mcf, respectively, for the three months ended September 30, 2000 from
$18.01 per barrel and $2.20 per Mcf, respectively, for the three months
ended September 30, 1999.
The II-C Partnership sold certain oil and gas properties during the three
months ended September 30, 2000 and recognized a $63,119 gain on such
sales. No such sales occurred during the three months ended September 30,
1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $1,056 (1.1%) for the three months ended
September 30, 2000 as compared to the three months ended September 30,
1999. This increase was primarily due to an increase in production taxes
associated with the increase in oil and gas sales, which increase was
partially offset by a positive prior period production tax adjustment made
by the purchaser on one significant well during the three months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 20.5% for the three months ended September 30, 2000 from
24.2% 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.
Depreciation, depletion, and amortization of oil and gas properties
decreased $30,244 (50.9%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decreases in volumes of oil and
gas sold. As a percentage of oil and gas sales, this expense decreased to
6.4% for the three months ended September 30, 2000 from 15.7% 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
and the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses increased $1,750 (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 9.8% for the three months ended September 30, 2000 from 11.3%
for the three months ended September 30, 1999. This percentage decrease
was primarily due to the increase in oil and gas sales.
-50-
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 $1,315,347 $903,938
Oil and gas production expenses $ 303,209 $296,598
Barrels produced 12,808 13,638
Mcf produced 304,601 364,207
Average price/Bbl $ 27.36 $ 14.95
Average price/Mcf $ 3.17 $ 1.92
As shown in the table above, total oil and gas sales increased $411,409
(45.5%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$159,000 and $379,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $115,000 related to a decrease in volumes
of gas sold. Volumes of oil and gas sold decreased 830 barrels and 59,606
Mcf, respectively, for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. The decrease in
volumes of gas sold was primarily due to (i) a positive prior period
volume adjustment made by the purchaser on one significant well during the
nine months ended September 30, 1999, (ii) a negative prior period volume
adjustment made by the operator on another significant well during the
nine months ended September 30, 2000, and (iii) the shutting-in of one
significant well during the nine months ended September 30, 2000 due to
low well pressure. Average oil and gas prices increased to $27.36 per
barrel and $3.17 per Mcf, respectively, for the nine months ended
September 30, 2000 from $14.95 per barrel and $1.92 per Mcf, respectively,
for the nine months ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $6,611 (2.2%) 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. This increase was
partially offset by (i) positive prior period production tax adjustments
made by the purchaser on several significant wells during the nine months
ended September 30, 1999, (ii) negative prior period production tax
adjustments made by the purchaser on several other wells during the nine
months ended September 30, 2000, and (iii) workover expenses incurred on
two significant wells during the nine months
-51-
ended September 30, 1999. As a percentage of oil and gas sales, these
expenses decreased to 23.1% for the nine months ended September 30, 2000
from 32.8% 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
decreased $61,190 (37.4%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decreases in volumes of oil and
gas sold. As a percentage of oil and gas sales, this expense decreased to
7.8% for the nine months ended September 30, 2000 from 18.1% 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 and the
dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses increased $1,819 (1.3%) 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 10.9% for the nine months ended September 30, 2000 from 15.6%
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 $16,490,686 or 106.65% of the Limited Partners' capital
contributions.
II-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 $874,480 $705,104
Oil and gas production expenses $225,552 $192,953
Barrels produced 9,279 7,755
Mcf produced 153,609 250,111
Average price/Bbl $ 28.89 $ 19.44
Average price/Mcf $ 3.95 $ 2.22
As shown in the table above, total oil and gas sales increased $169,376
(24.0%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$88,000
-52-
and $266,000, respectively, were related to increases in the average
prices of oil and gas sold and approximately $29,000 was related to an
increase in volumes of oil sold. These increases were partially offset by
a decrease of approximately $214,000 related to a decrease in volumes of
gas sold. Volumes of oil sold increased 1,524 barrels, while volumes of
gas sold decreased 96,502 Mcf for the three months ended September 30,
2000 as compared to the three months ended September 30, 1999. The
increase in volumes of oil sold was primarily due to (i) increased
production on one significant well during the three months ended September
30, 2000 following successful repairs made during late 1999 and (ii) a
positive prior period volume adjustment made by the purchaser on another
significant well during the three months ended September 30, 2000. The
decrease in volumes of gas sold was primarily due to (i) negative prior
period volume adjustments made on two significant wells during the three
months ended September 30, 2000 and (ii) normal declines in production.
Average oil and gas prices increased to $28.89 per barrel and $3.95 per
Mcf, respectively, for the three months ended September 30, 2000 from
$19.44 per barrel and $2.22 per Mcf, respectively, for the three months
ended September 30, 1999.
The II-D Partnership sold certain oil and gas properties during the three
months ended September 30, 2000 and recognized a $273,833 gain on such
sales. No such sales occurred during the three months ended September 30,
1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $32,599 (16.9%) 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, (ii) workover
expenses incurred on one significant well during the three months ended
September 30, 2000 in order to improve the recovery of reserves, and (iii)
an increase in repair and maintenance expenses incurred on another
significant well during 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 25.8% for the three months
ended September 30, 2000 from 27.4% for the three months ended September
30, 1999.
-53-
Depreciation, depletion, and amortization of oil and gas properties
decreased $51,213 (49.8%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This decrease was
primarily due to the decrease in volumes of gas sold and 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 5.9% for
the three months ended September 30, 2000 from 14.6% 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 and the dollar
decrease in depreciation, depletion, and amortization.
General and administrative expenses increased $2,468 (2.8%) 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 10.2% for the three months ended September 30, 2000 from
12.4% 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 $2,573,031 $1,831,319
Oil and gas production expenses $ 707,479 $ 727,727
Barrels produced 25,838 26,368
Mcf produced 608,310 728,093
Average price/Bbl $ 27.33 $ 14.42
Average price/Mcf $ 3.07 $ 1.99
As shown in the table above, total oil and gas sales increased $741,712
(40.5%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$333,000 and $655,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $239,000 related to a decrease in volumes
of gas sold. Volumes of oil and gas sold decreased 530 barrels and 119,783
Mcf, respectively, for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. The decrease in
volumes of gas sold was primarily due to (i) negative prior period volume
adjustments on two significant wells during the nine months ended
September 30, 2000 and (ii) normal declines in production. Average oil and
gas
-54-
prices increased to $27.33 per barrel and $3.07 per Mcf, respectively, for
the nine months ended September 30, 2000 from $14.42 per barrel and $1.99
per Mcf, respectively, for the nine months ended September 30, 1999.
The II-D Partnership sold certain oil and gas properties during the nine
months ended September 30, 2000 and recognized a $280,809 gain on such
sales. Sales of oil and gas properties during the nine months ended
September 30, 1999 resulted in the II-D Partnership recognizing similar
gains totaling $36,944.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $20,248 (2.8%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This decrease was primarily due to workover expenses incurred on
several wells during the nine months ended September 30, 1999. This
decrease was partially offset by (i) an increase in production taxes
associated with the increase in oil and gas sales and (ii) positive prior
period lease operating expense adjustments made by the operator on one
significant well during the nine months ended September 30, 2000. As a
percentage of oil and gas sales, these expenses decreased to 27.5% for the
nine months ended September 30, 2000 from 39.7% 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
decreased $118,961 (38.7%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and 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 nine months ended September 30, 2000 from 16.8% 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 and the
dollar decrease in depreciation, depletion, and amortization.
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 11.2% for the nine months ended September 30, 2000 from 15.7%
for the nine months ended September 30, 1999. This percentage decrease was
primarily due to the increase in oil and gas sales.
-55-
The Limited Partners have received cash distributions through September
30, 2000 totaling $33,325,903 or 105.84% of Limited Partners' capital
contributions.
II-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 $823,961 $490,849
Oil and gas production expenses $145,657 $127,287
Barrels produced 7,102 7,120
Mcf produced 163,083 153,140
Average price/Bbl $ 29.17 $ 21.26
Average price/Mcf $ 3.78 $ 2.22
As shown in the table above, total oil and gas sales increased $333,112
(67.9%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$56,000 and $255,000, respectively, were related to increases in the
average prices of oil and gas sold. Volumes of oil sold decreased 18
barrels, while volumes of gas sold increased 9,943 Mcf 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 $29.17 per
barrel and $3.78 per Mcf, respectively, for the three months ended
September 30, 2000 from $21.26 per barrel and $2.22 per Mcf, respectively,
for the three months ended September 30, 1999.
As discussed in Liquidity and Capital Resources above, the II-E
Partnership sold certain oil and gas properties during the three months
ended September 30, 2000 and recognized a $149,218 gain on such sales. No
such sales occurred during the three months ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $18,370 (14.4%) 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 17.7% for the three months
ended September 30, 2000 from 25.9% 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 $22,507 (21.5%) for the three months
-56-
ended September 30, 2000 as compared to the three months ended September
30, 1999. This decrease was primarily due to 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 10.0% for the
three months ended September 30, 2000 from 21.3% 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 and the dollar
decrease in depreciation, depletion, and amortization.
General and administrative expenses decreased $2,133 (3.4%) 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 7.9% for the three months ended September 30, 2000 from 12.9%
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 $1,994,401 $1,294,093
Oil and gas production expenses $ 428,852 $ 388,493
Barrels produced 19,625 24,392
Mcf produced 472,376 472,003
Average price/Bbl $ 29.07 $ 15.72
Average price/Mcf $ 3.01 $ 1.93
As shown in the table above, total oil and gas sales increased $700,308
(54.1%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$262,000 and $512,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $75,000 related to a decrease in volumes of
oil sold. Volumes of oil sold decreased 4,767 barrels, while volumes of
gas sold increased 373 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) a negative prior period
volume adjustment made by the operator on one significant well during the
nine months ended September 30, 2000, (ii) a positive prior period volume
adjustment made by the operator on another significant well during the
nine months ended September 30, 1999, and (iii) normal declines in
production. Average oil and gas prices increased to $29.07 per barrel and
$3.01 per Mcf, respectively, for the nine months ended September 30, 2000
-57-
from $15.72 per barrel and $1.93 per Mcf, respectively, for the nine
months ended September 30, 1999.
As discussed in Liquidity and Capital Resources above, the II-E
Partnership sold certain oil and gas properties during the nine months
ended September 30, 2000 and recognized a $154,694 gain on such sales.
Sales of oil and gas properties during the nine months ended September 30,
1999 resulted in the II-E Partnership recognizing similar gains of
$23,406.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $40,359 (10.4%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This increase was primarily due to 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 21.5% for the nine months ended
September 30, 2000 from 30.0% 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.
Depreciation, depletion, and amortization of oil and gas properties
decreased $94,769 (28.6%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This decrease was
primarily due to 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 11.8% for the nine months ended September 30,
2000 from 25.6% 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 and the dollar decrease in depreciation,
depletion, and amortization.
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 10.6% for the nine months ended September 30, 2000 from 16.1%
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 $24,146,574 or 105.53% of Limited Partners' capital
contributions.
-58-
II-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 $582,555 $454,356
Oil and gas production expenses $ 90,751 $ 94,366
Barrels produced 5,898 7,718
Mcf produced 118,397 123,033
Average price/Bbl $ 28.47 $ 21.29
Average price/Mcf $ 3.50 $ 2.36
As shown in the table above, total oil and gas sales increased $128,199
(28.2%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$42,000 and $136,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $39,000 related to a decrease in volumes of
oil sold. Volumes of oil and gas sold decreased 1,820 barrels and 4,636
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 positive prior period volume
adjustments made by the operators on two significant wells during the
three months ended September 30, 1999 and normal declines in production.
Average oil and gas prices increased to $28.47 per barrel and $3.50 per
Mcf, respectively, for the three months ended September 30, 2000 from
$21.29 per barrel and $2.36 per Mcf, respectively, for the three months
ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $3,615 (3.8%) 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) an ad valorem tax refund
received on one significant well during the three months ended September
30, 2000, (ii) a decrease in repair and maintenance expenses on one
significant well during the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999, and (iii) workover
expenses incurred on one significant well during the three months ended
September 30, 1999. These decreases were partially offset by 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 15.6% for
the three months ended September 30, 2000 from 20.8% for the three months
ended September 30, 1999. This
-59-
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 $19,740 (26.2%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and 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
9.5% for the three months ended September 30, 2000 from 16.6% 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
and the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses increased $1,596 (3.4%) 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 8.4% for the three months ended September 30, 2000 from 10.4%
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 $1,658,278 $1,225,529
Oil and gas production expenses $ 303,508 $ 331,455
Barrels produced 20,332 27,299
Mcf produced 374,152 440,829
Average price/Bbl $ 27.89 $ 14.97
Average price/Mcf $ 2.92 $ 1.85
As shown in the table above, total oil and gas sales increased $432,749
(35.3%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$263,000 and $398,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $104,000 and $124,000, respectively, related
to decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 6,967 barrels and 66,677 Mcf, respectively, 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
positive prior period volume adjustments made by the operators on several
wells during the
-60-
nine months ended September 30, 1999 and normal declines in production.
The decrease in volumes of gas sold was primarily due to a positive prior
period volume adjustment made by the operator on another significant well
during the nine months ended September 30, 1999 and normal declines in
production. Average oil and gas prices increased to $27.89 per barrel and
$2.92 per Mcf, respectively, for the nine months ended September 30, 2000
from $14.97 per barrel and $1.85 per Mcf, respectively, for the nine
months ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $27,947 (8.4%) 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) a decrease in lease operating
expenses associated with the decreases in volumes of oil and gas sold,
(ii) positive prior period lease operating expense adjustments made by the
operator on several wells during the nine months ended September 30, 1999,
and (iii) workover expenses incurred on one significant well during the
nine months ended September 30, 1999. These decreases were partially
offset by 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 18.3% for the nine months ended September 30, 2000 from 27.0%
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.
Depreciation, depletion, and amortization of oil and gas properties
decreased $89,620 (33.3%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and 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
10.8% for the nine months ended September 30, 2000 from 22.0% 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 and the
dollar decrease in depreciation, depletion, and amortization.
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 9.5% for the nine months ended September 30, 2000 from 12.7%
for the nine months ended September 30, 1999. This percentage decrease was
primarily due to the increase in oil and gas sales.
-61-
The Limited Partners have received cash distributions through September
30, 2000 totaling $18,612,051 or 108.59% of Limited Partners' capital
contributions.
II-G 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 $1,237,877 $888,505
Oil and gas production expenses $ 194,058 $199,784
Barrels produced 12,368 16,277
Mcf produced 252,641 252,612
Average price/Bbl $ 28.46 $ 20.69
Average price/Mcf $ 3.51 $ 2.18
As shown in the table above, total oil and gas sales increased $349,372
(39.3%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$96,000 and $334,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $81,000 related to a decrease in volumes of
oil sold. Volumes of oil sold decreased 3,909 barrels, while volumes of
gas sold increased 29 Mcf 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 positive prior period volume
adjustments made by the operators on two significant wells during the
three months ended September 30, 1999 and normal declines in production.
Average oil and gas prices increased to $28.46 per barrel and $3.51 per
Mcf, respectively, for the three months ended September 30, 2000 from
$20.69 per barrel and $2.18 per Mcf, respectively, for the three months
ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $5,726 (2.9%) 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) an ad valorem tax refund
received on one significant well during the three months ended September
30, 2000, (ii) a decrease in repair and maintenance expenses on one
significant well during the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999, and (iii) workover
expenses incurred on another significant well during the three months
ended September 30, 1999. These decreases were partially offset by an
increase in production taxes associated with the increase in oil and gas
sales. As a percentage of oil and gas sales, these
-62-
expenses decreased to 15.7% for the three months ended September 30, 2000
from 22.5% 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 $37,739 (24.0%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This decrease was
primarily due to the decrease in volumes of oil sold and 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 9.6% for
the three months ended September 30, 2000 from 17.7% 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 and the dollar
decrease in depreciation, depletion, and amortization.
General and administrative expenses increased $2,656 (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 8.5% for the three months ended September 30, 2000 from 11.6%
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 $3,521,240 $2,593,092
Oil and gas production expenses $ 651,048 $ 708,579
Barrels produced 42,640 57,547
Mcf produced 803,343 936,181
Average price/Bbl $ 27.89 $ 14.90
Average price/Mcf $ 2.90 $ 1.85
As shown in the table above, total oil and gas sales increased $928,148
(35.8%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$554,000 and $842,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $222,000 and $246,000, respectively, related
to decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 14,907 barrels and 132,838 Mcf, respectively, for the nine
months ended September 30, 2000 as compared to the nine months ended
September 30, 1999. The decrease in volumes of
-63-
oil sold was primarily due to positive prior period volume adjustments
made by the operators on several wells during the nine months ended
September 30, 1999 and normal declines in production. The decrease in
volumes of gas sold was primarily due to a positive prior period volume
adjustment made by the operator on another significant well during the
nine months ended September 30, 1999 and normal declines in production.
Average oil and gas prices increased to $27.89 per barrel and $2.90 per
Mcf, respectively, for the nine months ended September 30, 2000 from
$14.90 per barrel and $1.85 per Mcf, respectively, for the nine months
ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $57,531 (8.1%) 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) a decrease in lease operating
expenses associated with the decreases in volumes of oil and gas sold,
(ii) positive prior period lease operating expense adjustments made by the
operator on several wells during the nine months ended September 30, 1999,
and (iii) workover expenses incurred on one significant well during the
nine months ended September 30, 1999 in order to improve the recovery of
reserves. These decreases were partially offset by 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 18.5% for the
nine months ended September 30, 2000 from 27.3% 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
decreased $187,919 (32.7%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and 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
11.0% for the nine months ended September 30, 2000 from 22.2% 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 and the
dollar decrease in depreciation, depletion, and amortization.
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 9.7% for the nine months ended September 30, 2000 from 13.1%
for the nine months ended September 30, 1999. This
-64-
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 $38,554,371 or 103.59% of Limited Partners' capital
contributions.
II-H 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 $295,563 $222,185
Oil and gas production expenses $ 46,985 $ 48,942
Barrels produced 2,873 3,734
Mcf produced 60,631 61,823
Average price/Bbl $ 28.45 $ 21.35
Average price/Mcf $ 3.53 $ 2.30
As shown in the table above, total oil and gas sales increased $73,378
(33.0%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$20,000 and $74,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $18,000 related to a decrease in volumes of
oil sold. Volumes of oil and gas sold decreased 861 barrels and 1,192 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 positive prior period volume adjustments made by
the operators on two significant wells during the three months ended
September 30, 1999 and normal declines in production. Average oil and gas
prices increased to $28.45 per barrel and $3.53 per Mcf, respectively, for
the three months ended September 30, 2000 from $21.35 per barrel and $2.30
per Mcf, respectively, for the three months ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $1,957 (4.0%) 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) an ad valorem tax refund
received on one significant well during the three months ended September
30, 2000, (ii) a decrease in repair and maintenance expenses on one
significant well during the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999, and (iii) workover
expenses incurred on one significant well during the three months ended
September 30, 1999 in
-65-
order to improve the recovery of reserves. These decreases were partially
offset by 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 15.9% for the three months ended September 30, 2000 from
22.0% 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 $8,895 (24.0%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and 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
9.5% for the three months ended September 30, 2000 from 16.7% 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
and the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses increased $1,176 (4.6%) 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 9.0% for the three months ended September 30, 2000 from 11.4%
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 $829,411 $618,940
Oil and gas production expenses $157,441 $170,527
Barrels produced 9,929 13,371
Mcf produced 190,864 224,318
Average price/Bbl $ 27.88 $ 14.95
Average price/Mcf $ 2.90 $ 1.87
As shown in the table above, total oil and gas sales increased $210,471
(34.0%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$128,000 and $196,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $51,000 and $63,000, respectively, related
to decreases in volumes of oil
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and gas sold. Volumes of oil and gas sold decreased 3,442 barrels and
33,454 Mcf, respectively, 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 positive prior period volume
adjustments made by the operators on several wells during the nine months
ended September 30, 1999 and normal declines in production. The decrease
in volumes of gas sold was primarily due to a positive prior period volume
adjustment made by the operator on another significant well during the
nine months ended September 30, 1999 and normal declines in production.
Average oil and gas prices increased to $27.88 per barrel and $2.90 per
Mcf, respectively, for the nine months ended September 30, 2000 from
$14.95 per barrel and $1.87 per Mcf, respectively, for the nine months
ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $13,086 (7.7%) 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) a decrease in lease operating
expenses associated with the decreases in volumes of oil and gas sold,
(ii) positive prior period lease operating expense adjustments made by the
operator on several wells during the nine months ended September 30, 1999,
and (iii) workover expenses incurred on one significant well during the
nine months ended September 30, 1999 in order to improve the recovery of
reserves. These decreases were partially offset by 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 19.0% for the
nine months ended September 30, 2000 from 27.6% 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.
Depreciation, depletion, and amortization of oil and gas properties
decreased $43,422 (32.4%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and 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
10.9% for the nine months ended September 30, 2000 from 21.6% 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 and the
dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses decreased $1,456 (1.7%) 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 10.2% for the
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nine months ended September 30, 2000 from 13.5% 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 $8,983,364 or 97.95% of Limited Partners' capital
contributions. The II-H Partnership achieved payout during the fourth
quarter of 2000. After payout, operations and revenues for the II-H
Partnership have been and will be allocated using after payout
percentages. After payout percentages allocate operating income and
expenses 10% to the General Partner and 90% to the Limited Partners.
Before payout, operating income and expenses were allocated 5% to the
General Partner and 95% to the Limited Partners. See the Partnership's
Annual Report on Form 10-K for the year ended December 31, 1999 for a
further discussion of pre and post payout allocations of income and
expense.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
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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 II-A 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 II-B 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 II-C Partnership's financial statements as of
September 30, 2000 and for the nine months ended September 30, 2000,
filed herewith.
27.4 Financial Data Schedule containing summary financial information
extracted from the II-D Partnership's financial statements as of
September 30, 2000 and for the nine months ended September 30, 2000,
filed herewith.
27.5 Financial Data Schedule containing summary financial information
extracted from the II-E Partnership's financial statements as of
September 30, 2000 and for the nine months ended September 30, 2000,
filed herewith.
27.6 Financial Data Schedule containing summary financial information
extracted from the II-F Partnership's financial statements as of
September 30, 2000 and for the nine months ended September 30, 2000,
filed herewith.
27.7 Financial Data Schedule containing summary financial information
extracted from the II-G Partnership's financial statements as of
September 30, 2000 and for the nine months ended September 30, 2000,
filed herewith.
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27.8 Financial Data Schedule containing summary financial information
extracted from the II-H 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.
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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 II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
(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
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INDEX TO EXHIBITS
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-A'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 II-B'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 II-C's
financial statements as of September 30, 2000 and for the nine
months ended September 30, 2000, filed herewith.
27.4 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-D's
financial statements as of September 30, 2000 and for the nine
months ended September 30, 2000, filed herewith.
27.5 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-E's
financial statements as of September 30, 2000 and for the nine
months ended September 30, 2000, filed herewith.
27.6 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-F's
financial statements as of September 30, 2000 and for the nine
months ended September 30, 2000, filed herewith.
27.7 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-G's
financial statements as of September 30, 2000 and for the nine
months ended September 30, 2000, filed herewith.
27.8 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-H'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.
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