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:
III-A: 0-18302 III-B: 0-18636 III-C: 0-18634
III-D: 0-18936 III-E: 0-19010 III-F: 0-19102
III-G: 0-19563
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
---------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
III-A 73-1352993 III-B 73-1358666
III-C 73-1356542 III-D 73-1357374
III-E 73-1367188 III-F 73-1377737
Oklahoma III-G 73-1377828
- ---------------------------- ------------------------------------
(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 III-A
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 679,491 $ 379,613
Accounts receivable:
Oil and gas sales 633,380 325,691
---------- ----------
Total current assets $1,312,871 $ 705,304
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,480,899 1,808,851
DEFERRED CHARGE 279,651 279,651
---------- ----------
$3,073,421 $2,793,806
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 49,428 $ 49,195
Gas imbalance payable 31,659 31,659
---------- ----------
Total current liabilities $ 81,087 $ 80,854
ACCRUED LIABILITY $ 50,052 $ 50,052
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 140,298) ($ 194,823)
Limited Partners, issued and
outstanding, 263,976 units 3,082,580 2,857,723
---------- ----------
Total Partners' capital $2,942,282 $2,662,900
---------- ----------
$3,073,421 $2,793,806
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ---------
REVENUES:
Oil and gas sales $1,103,043 $594,498
Interest income 6,595 2,644
Gain on sale of oil and gas
properties 6,899 -
---------- --------
$1,116,537 $597,142
COSTS AND EXPENSES:
Lease operating $ 158,166 $104,224
Production tax 83,386 48,679
Depreciation, depletion, and
amortization of oil and gas
properties 105,789 106,766
General and administrative
(Note 2) 75,891 73,066
---------- --------
$ 423,232 $332,735
---------- --------
NET INCOME $ 693,305 $264,407
========== ========
GENERAL PARTNER - NET INCOME $ 95,278 $ 17,358
========== ========
LIMITED PARTNERS - NET INCOME $ 598,027 $247,049
========== ========
NET INCOME per unit $ 2.26 $ .93
========== ========
UNITS OUTSTANDING 263,976 263,976
========== ========
The accompanying condensed notes are an integral part of
these financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $2,651,107 $1,528,277
Interest income 16,278 6,492
Gain on sale of oil and gas
properties 7,670 883
---------- ----------
$2,675,055 $1,535,652
COSTS AND EXPENSES:
Lease operating $ 476,005 $ 304,775
Production tax 217,673 115,105
Depreciation, depletion, and
amortization of oil and gas
properties 300,003 339,305
General and administrative
(Note 2) 242,230 239,251
---------- ----------
$1,235,911 $ 998,436
---------- ----------
NET INCOME $1,439,144 $ 537,216
========== ==========
GENERAL PARTNER - NET INCOME $ 169,287 $ 40,108
========== ==========
LIMITED PARTNERS - NET INCOME $1,269,857 $ 497,108
========== ==========
NET INCOME per unit $ 4.81 $ 1.88
========== ==========
UNITS OUTSTANDING 263,976 263,976
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
----------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,439,144 $537,216
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 300,003 339,305
Gain on sale of oil and gas
properties ( 7,670) ( 883)
Increase in accounts receivable -
oil and gas sales ( 307,689) ( 120,097)
Increase (decrease) in accounts
payable 233 ( 32,004)
---------- --------
Net cash provided by operating
activities $1,424,021 $723,537
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 1,268) ($ 8,909)
Proceeds from sale of oil and
gas properties 36,887 7,453
---------- --------
Net cash provided (used) by
investing activities $ 35,619 ($ 1,456)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,159,762) ($608,011)
---------- --------
Net cash used by financing activities ($1,159,762) ($608,011)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 299,878 $114,070
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 379,613 212,695
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 679,491 $326,765
========== ========
The accompanying condensed notes are an integral part of
these financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 380,449 $ 227,298
Accounts receivable:
Oil and gas sales 385,677 214,859
---------- ----------
Total current assets $ 766,126 $ 442,157
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 837,236 1,018,525
DEFERRED CHARGE 229,634 229,634
---------- ----------
$1,832,996 $1,690,316
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 28,144 $ 32,585
Gas imbalance payable 16,517 16,517
---------- ----------
Total current liabilities $ 44,661 $ 49,102
ACCRUED LIABILITY $ 33,458 $ 33,458
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 55,153) ($ 79,362)
Limited Partners, issued and
outstanding, 138,336 units 1,810,030 1,687,118
---------- ----------
Total Partners' capital $1,754,877 $1,607,756
---------- ----------
$1,832,996 $1,690,316
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ---------
REVENUES:
Oil and gas sales $671,722 $380,078
Interest income 3,731 1,280
-------- --------
$675,453 $381,358
COSTS AND EXPENSES:
Lease operating $103,455 $ 67,324
Production tax 52,511 29,970
Depreciation, depletion, and
amortization of oil and gas
properties 60,091 63,953
General and administrative
(Note 2) 40,682 38,292
-------- --------
$256,739 $199,539
-------- --------
NET INCOME $418,714 $181,819
======== ========
GENERAL PARTNER - NET INCOME $ 70,660 $ 36,034
======== ========
LIMITED PARTNERS - NET INCOME $348,054 $145,785
======== ========
NET INCOME per unit $ 2.51 $ 1.05
======== ========
UNITS OUTSTANDING 138,336 138,336
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ---------
REVENUES:
Oil and gas sales $1,653,414 $880,919
Interest income 9,256 3,105
Gain on sale of oil and gas
properties - 372
---------- --------
$1,662,670 $884,396
COSTS AND EXPENSES:
Lease operating $ 294,930 $199,454
Production tax 136,427 63,517
Depreciation, depletion, and
amortization of oil and gas
properties 169,814 183,044
General and administrative
(Note 2) 128,208 125,470
---------- --------
$ 729,379 $571,485
---------- --------
NET INCOME $ 933,291 $312,911
========== ========
GENERAL PARTNER - NET INCOME $ 162,379 $ 72,097
========== ========
LIMITED PARTNERS - NET INCOME $ 770,912 $240,814
========== ========
NET INCOME per unit $ 5.57 $ 1.74
========== ========
UNITS OUTSTANDING 138,336 138,336
========== ========
The accompanying condensed notes are an integral part of
these financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $933,291 $312,911
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 169,814 183,044
Gain on sale of oil and gas
properties - ( 372)
Increase in accounts receivable -
oil and gas sales ( 170,818) ( 72,241)
Decrease in accounts payable ( 4,441) ( 2,457)
-------- --------
Net cash provided by operating
activities $927,846 $420,885
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 833) ($ 2,916)
Proceeds from sale of oil and
gas properties 12,308 515
-------- --------
Net cash provided (used) by investing
activities $ 11,475 ($ 2,401)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($786,170) ($357,600)
-------- --------
Net cash used by financing activities ($786,170) ($357,600)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $153,151 $ 60,884
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 227,298 117,355
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $380,449 $178,239
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 763,444 $ 482,914
Accounts receivable:
Oil and gas sales 695,044 444,436
---------- ----------
Total current assets $1,458,488 $ 927,350
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,038,034 2,323,346
DEFERRED CHARGE 197,269 197,269
---------- ----------
$3,693,791 $3,447,965
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 42,568 $ 50,407
Gas imbalance payable 44,727 44,727
---------- ----------
Total current liabilities $ 87,295 $ 95,134
ACCRUED LIABILITY $ 156,396 $ 156,396
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 158,777) ($ 168,448)
Limited Partners, issued and
outstanding, 244,536 units 3,608,877 3,364,883
---------- ----------
Total Partners' capital $3,450,100 $3,196,435
---------- ----------
$3,693,791 $3,447,965
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- --------
REVENUES:
Oil and gas sales $1,117,930 $701,079
Interest income 7,953 3,404
---------- --------
$1,125,883 $704,483
COSTS AND EXPENSES:
Lease operating $ 155,710 $125,300
Production tax 77,878 50,422
Depreciation, depletion, and
amortization of oil and gas
properties 100,436 119,292
General and administrative
(Note 2) 69,936 67,671
---------- --------
$ 403,960 $362,685
---------- --------
NET INCOME $ 721,923 $341,798
========== ========
GENERAL PARTNER - NET INCOME $ 39,716 $ 21,691
========== ========
LIMITED PARTNERS - NET INCOME $ 682,207 $320,107
========== ========
NET INCOME per unit $ 2.79 $ 1.31
========== ========
UNITS OUTSTANDING 244,536 244,536
========== ========
The accompanying condensed notes are an integral part of
these financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $2,714,891 $1,758,244
Interest income 19,578 8,909
Gain on sale of oil and gas
properties 62,457 524
---------- ----------
$2,796,926 $1,767,677
COSTS AND EXPENSES:
Lease operating $ 419,345 $ 347,245
Production tax 185,094 121,441
Depreciation, depletion, and
amortization of oil and gas
properties 286,408 369,240
General and administrative
(Note 2) 224,047 222,251
---------- ----------
$1,114,894 $1,060,177
---------- ----------
NET INCOME $1,682,032 $ 707,500
========== ==========
GENERAL PARTNER - NET INCOME $ 93,038 $ 49,699
========== ==========
LIMITED PARTNERS - NET INCOME $1,588,994 $ 657,801
========== ==========
NET INCOME per unit $ 6.50 $ 2.69
========== ==========
UNITS OUTSTANDING 244,536 244,536
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,682,032 $707,500
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 286,408 369,240
Gain on sale of oil and gas
properties ( 62,457) ( 524)
Increase in accounts receivable -
oil and gas sales ( 250,608) ( 101,470)
Decrease in accounts payable ( 7,839) ( 6,308)
---------- --------
Net cash provided by operating
activities $1,647,536 $968,438
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 1,096) ($ 24,202)
Proceeds from sale of oil and
gas properties 62,457 524
---------- --------
Net cash provided (used) by investing
activities $ 61,361 ($ 23,678)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,428,367) ($892,324)
---------- --------
Net cash used by financing activities ($1,428,367) ($892,324)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 280,530 $ 52,436
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 482,914 340,720
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 763,444 $393,156
========== ========
The accompanying condensed notes are an integral part of
these financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 544,212 $ 338,669
Accounts receivable:
Oil and gas sales 520,945 371,197
---------- ----------
Total current assets $1,065,157 $ 709,866
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 924,350 1,047,894
DEFERRED CHARGE 52,412 52,412
---------- ----------
$2,041,919 $1,810,172
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 66,089 $ 74,391
Gas imbalance payable 2,361 2,361
---------- ----------
Total current liabilities $ 68,450 $ 76,752
ACCRUED LIABILITY $ 181,185 $ 181,185
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 59,579) ($ 66,221)
Limited Partners, issued and
outstanding, 131,008 units 1,851,863 1,618,456
---------- ----------
Total Partners' capital $1,792,284 $1,552,235
---------- ----------
$2,041,919 $1,810,172
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- ---------
REVENUES:
Oil and gas sales $817,695 $543,247
Interest income 6,825 2,242
-------- --------
$824,520 $545,489
COSTS AND EXPENSES:
Lease operating $150,203 $138,654
Production tax 56,057 38,299
Depreciation, depletion, and
amortization of oil and gas
properties 49,980 65,829
General and administrative
(Note 2) 38,077 36,252
-------- --------
$294,317 $279,034
-------- --------
NET INCOME $530,203 $266,455
======== ========
GENERAL PARTNER - NET INCOME $ 28,168 $ 15,843
======== ========
LIMITED PARTNERS - NET INCOME $502,035 $250,612
======== ========
NET INCOME per unit $ 3.83 $ 1.91
======== ========
UNITS OUTSTANDING 131,008 131,008
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ---------
REVENUES:
Oil and gas sales $2,146,696 $1,410,133
Interest income 15,854 5,375
Gain on sale of oil and gas
properties 197,929 -
---------- ----------
$2,360,479 $1,415,508
COSTS AND EXPENSES:
Lease operating $ 447,767 $ 422,404
Production tax 141,808 99,365
Depreciation, depletion, and
amortization of oil and gas
properties 144,838 215,966
General and administrative
(Note 2) 121,659 120,224
---------- ----------
$ 856,072 $ 857,959
---------- ----------
NET INCOME $1,504,407 $ 557,549
========== ==========
GENERAL PARTNER - NET INCOME $ 80,000 $ 36,247
========== ==========
LIMITED PARTNERS - NET INCOME $1,424,407 $ 521,302
========== ==========
NET INCOME per unit $ 10.87 $ 3.98
========== ==========
UNITS OUTSTANDING 131,008 131,008
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
----------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,504,407 $557,549
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 144,838 215,966
Gain on sale of oil and gas
properties ( 197,929) -
Increase in accounts receivable -
oil and gas sales ( 149,748) ( 113,034)
Decrease in accounts payable ( 8,302) ( 12,307)
---------- --------
Net cash provided by operating
activities $1,293,266 $648,174
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 24,541) ($ 16,716)
Proceeds from sale of oil and
gas properties 201,176 -
---------- --------
Net cash provided (used) by investing
activities $ 176,635 ($ 16,716)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,264,358) ($543,332)
---------- --------
Net cash used by financing activities ($1,264,358) ($543,332)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 205,543 $ 88,126
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 338,669 172,776
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 544,212 $260,902
========== ========
The accompanying condensed notes are an integral part of
these financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,603,068 $1,445,029
Accounts receivable:
Oil and gas sales 1,655,935 1,403,065
---------- ----------
Total current assets $3,259,003 $2,848,094
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,604,357 2,776,902
DEFERRED CHARGE 117,235 117,235
---------- ----------
$5,980,595 $5,742,231
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 364,117 $ 398,764
Gas imbalance payable 34,902 34,902
---------- ----------
Total current liabilities $ 399,019 $ 433,666
ACCRUED LIABILITY $ 530,662 $ 530,662
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 247,802) ($ 259,526)
Limited Partners, issued and
outstanding, 418,266 units 5,298,716 5,037,429
---------- ----------
Total Partners' capital $5,050,914 $4,777,903
---------- ----------
$5,980,595 $5,742,231
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $2,475,574 $1,877,248
Interest income 27,841 6,605
Gain on sale of oil and
gas properties 5,101 -
---------- ----------
$2,508,516 $1,883,853
COSTS AND EXPENSES:
Lease operating $ 698,989 $ 764,530
Production tax 166,338 126,105
Depreciation, depletion, and
amortization of oil and gas
properties 100,945 140,883
General and administrative
(Note 2) 119,230 115,744
---------- ----------
$1,085,502 $1,147,262
---------- ----------
NET INCOME $1,423,014 $ 736,591
========== ==========
GENERAL PARTNER - NET INCOME $ 73,796 $ 42,135
========== ==========
LIMITED PARTNERS - NET INCOME $1,349,218 $ 694,456
========== ==========
NET INCOME per unit $ 3.22 $ 1.66
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $7,530,254 $4,559,288
Interest income 66,856 14,557
Gain on sale of oil and
gas properties 1,322,199 -
---------- ----------
$8,919,309 $4,573,845
COSTS AND EXPENSES:
Lease operating $2,163,849 $2,346,380
Production tax 480,008 306,609
Depreciation, depletion, and
amortization of oil and gas
properties 332,253 434,005
General and administrative
(Note 2) 384,005 383,696
---------- ----------
$3,360,115 $3,470,690
---------- ----------
NET INCOME $5,559,194 $1,103,155
========== ==========
GENERAL PARTNER - NET INCOME $ 287,907 $ 71,790
========== ==========
LIMITED PARTNERS - NET INCOME $5,271,287 $1,031,365
========== ==========
NET INCOME per unit $ 12.60 $ 2.47
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $5,559,194 $1,103,155
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 332,253 434,005
Gain on sale of oil and gas
properties ( 1,322,199) -
Increase in accounts receivable -
oil and gas sales ( 252,870) ( 412,386)
Decrease in accounts payable ( 34,647) ( 59,868)
---------- ----------
Net cash provided by operating
activities $4,281,731 $1,064,906
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 190,118) ($ 91,835)
Proceeds from sale of oil and gas
properties 1,352,609 -
---------- ----------
Net cash provided (used) by
investing activities $1,162,491 ($ 91,835)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($5,286,183) ($ 691,613)
---------- ----------
Net cash used by financing activities ($5,286,183) ($ 691,613)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 158,039 $ 281,458
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,445,029 483,197
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,603,068 $ 764,655
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 548,478 $ 803,913
Accounts receivable:
Oil and gas sales 584,848 424,488
---------- ----------
Total current assets $1,133,326 $1,228,401
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,202,243 2,405,074
DEFERRED CHARGE 56,227 56,227
---------- ----------
$3,391,796 $3,689,702
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 56,522 $ 77,807
Gas imbalance payable 55,092 55,092
---------- ----------
Total current liabilities $ 111,614 $ 132,899
ACCRUED LIABILITY $ 135,208 $ 135,208
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 149,077) ($ 154,318)
Limited Partners, issued and
outstanding, 221,484 units 3,294,051 3,575,913
---------- ----------
Total Partners' capital $3,144,974 $3,421,595
---------- ----------
$3,391,796 $3,689,702
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-22-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- ---------
REVENUES:
Oil and gas sales $735,710 $698,626
Interest income 7,621 3,219
Gain (loss) on sale of oil and
gas properties ( 11,880) 18,316
-------- --------
$731,451 $720,161
COSTS AND EXPENSES:
Lease operating $162,814 $199,551
Production tax 40,033 32,383
Depreciation, depletion, and
amortization of oil and gas
properties 77,879 143,796
General and administrative
(Note 2) 63,548 61,302
-------- --------
$344,274 $437,032
-------- --------
NET INCOME $387,177 $283,129
======== ========
GENERAL PARTNER - NET INCOME $ 22,093 $ 19,747
======== ========
LIMITED PARTNERS - NET INCOME $365,084 $263,382
======== ========
NET INCOME per unit $ 1.65 $ 1.19
======== ========
UNITS OUTSTANDING 221,484 221,484
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $2,402,405 $1,621,650
Interest income 21,413 7,781
Gain on sale of oil and gas
properties 150,840 18,156
---------- ----------
$2,574,658 $1,647,587
COSTS AND EXPENSES:
Lease operating $ 539,823 $ 675,905
Production tax 115,951 76,164
Depreciation, depletion, and
amortization of oil and gas
properties 287,729 404,367
General and administrative
(Note 2) 203,180 201,746
---------- ----------
$1,146,683 $1,358,182
---------- ----------
NET INCOME $1,427,975 $ 289,405
========== ==========
GENERAL PARTNER - NET INCOME $ 81,837 $ 30,256
========== ==========
LIMITED PARTNERS - NET INCOME $1,346,138 $ 259,149
========== ==========
NET INCOME per unit $ 6.08 $ 1.17
========== ==========
UNITS OUTSTANDING 221,484 221,484
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-24-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,427,975 $289,405
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 287,729 404,367
Gain on sale of oil and gas
properties ( 150,840) ( 18,156)
Increase in accounts receivable -
oil and gas sales ( 160,360) ( 134,768)
Decrease in accounts receivable -
other - 9,631
Decrease in accounts payable ( 21,285) ( 61,893)
---------- --------
Net cash provided by operating
activities $1,383,219 $488,586
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 159,635) ($ 78,236)
Proceeds from the sale of oil
and gas properties 225,577 19,893
---------- --------
Net cash provided (used) by investing
activities $ 65,942 ($ 58,343)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,704,596) ($304,866)
---------- --------
Net cash used by financing activities ($1,704,596) ($304,866)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 255,435) $125,377
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 803,913 316,761
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 548,478 $442,138
========== ========
The accompanying condensed notes are an integral part of
these financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 323,727 $ 475,226
Accounts receivable:
Oil and gas sales 355,351 259,524
---------- ----------
Total current assets $ 679,078 $ 734,750
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,175,237 1,230,211
DEFERRED CHARGE 36,477 36,477
---------- ----------
$1,890,792 $2,001,438
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 35,622 $ 48,611
Gas imbalance payable 7,548 7,548
---------- ----------
Total current liabilities $ 43,170 $ 56,159
ACCRUED LIABILITY $ 80,069 $ 80,069
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 85,633) ($ 91,045)
Limited Partners, issued and
outstanding, 121,925 units 1,853,186 1,956,255
---------- ----------
Total Partners' capital $1,767,553 $1,865,210
---------- ----------
$1,890,792 $2,001,438
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-26-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ---------
REVENUES:
Oil and gas sales $446,431 $440,935
Interest income 4,462 1,924
Gain on sale of oil and gas
properties 27,256 13,109
-------- --------
$478,149 $455,968
COSTS AND EXPENSES:
Lease operating $102,041 $124,379
Production tax 23,479 19,702
Depreciation, depletion, and
amortization of oil and gas
properties 37,996 89,412
General and administrative
(Note 2) 35,207 33,766
-------- --------
$198,723 $267,259
-------- --------
NET INCOME $279,426 $188,709
======== ========
GENERAL PARTNER - NET INCOME $ 15,268 $ 12,916
======== ========
LIMITED PARTNERS - NET INCOME $264,158 $175,793
======== ========
NET INCOME per unit $ 2.17 $ 1.44
======== ========
UNITS OUTSTANDING 121,925 121,925
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-27-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- -----------
REVENUES:
Oil and gas sales $1,463,791 $1,004,949
Interest income 12,074 4,249
Gain on sale of oil and gas
properties 157,065 13,064
---------- ----------
$1,632,930 $1,022,262
COSTS AND EXPENSES:
Lease operating $ 346,053 $ 449,999
Production tax 69,593 46,104
Depreciation, depletion, and
amortization of oil and gas
properties 137,602 246,708
General and administrative
(Note 2) 112,491 111,232
---------- ----------
$ 665,739 $ 854,043
---------- ----------
NET INCOME $ 967,191 $ 168,219
========== ==========
GENERAL PARTNER - NET INCOME $ 53,260 $ 18,067
========== ==========
LIMITED PARTNERS - NET INCOME $ 913,931 $ 150,152
========== ==========
NET INCOME per unit $ 7.50 $ 1.23
========== ==========
UNITS OUTSTANDING 121,925 121,925
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-28-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 967,191 $168,219
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 137,602 246,708
Gain on sale of oil and gas
properties ( 157,065) ( 13,064)
Increase in accounts receivable -
oil and gas sales ( 95,827) ( 90,942)
Decrease in accounts receivable -
other - 6,369
Decrease in accounts payable ( 12,989) ( 27,945)
---------- --------
Net cash provided by operating
activities $ 838,912 $289,345
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 89,167) ($ 41,152)
Proceeds from the sale of oil and
gas properties 163,604 13,216
---------- --------
Net cash provided (used) by investing
activities $ 74,437 ($ 27,936)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,064,848) ($166,687)
---------- --------
Net cash used by financing activities ($1,064,848) ($166,687)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 151,499) $ 94,722
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 475,226 169,558
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 323,727 $264,280
========== ========
The accompanying condensed notes are an integral part of
these financial statements.
-29-
GEODYNE ENERGY INCOME PROGRAM III LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 2000, statements of operations for
the three and nine months ended September 30, 2000 and 1999, and
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 Partnerships (the "General Partner"), without audit. In the opinion of
management the financial statements referred to above include all
necessary adjustments, consisting of normal recurring adjustments, to
present fairly the financial position at September 30, 2000, the results
of operations for the three and nine months ended September 30, 2000 and
1999, and the 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.
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
-30-
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.
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
----------- ------------------- ---------------
III-A $6,423 $ 69,468
III-B 4,277 36,405
III-C 5,583 64,353
III-D 3,601 34,476
III-E 9,160 110,070
III-F 5,264 58,284
III-G 3,122 32,085
-31-
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
----------- ------------------- ---------------
III-A $33,826 $208,404
III-B 18,993 109,215
III-C 30,988 193,059
III-D 18,231 103,428
III-E 53,795 330,210
III-F 28,328 174,852
III-G 16,236 96,255
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.
-32-
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 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.
-33-
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
----------- ------------------ ---------------
III-A November 21, 1989 $26,397,600
III-B January 24, 1990 13,833,600
III-C February 27, 1990 24,453,600
III-D September 5, 1990 13,100,800
III-E December 26, 1990 41,826,600
III-F March 7, 1991 22,148,400
III-G September 20, 1991 12,192,500
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 III-D, III-E, III-F, and III-G 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 second quarter of 2000.
These proceeds were included in these Partnerships' cash distributions
paid in August 2000.
-34-
Occasional expenditures for new wells or well recompletion or workovers,
however, may reduce or eliminate cash available for a particular quarterly
cash distribution. During the nine months ended September 30, 2000,
capital expenditures for the III-F and III-G Partnerships totaled $159,635
and $89,167, respectively. These expenditures were primarily due to
drilling activities in a large unitized property, the Trail Unit, located
in Sweetwater County, Wyoming, in which the III-F and III-G Partnerships
own working interests of 15.6% and 7.8%, respectively.
Pursuant to the terms of the Partnership Agreements for the Partnerships
(the "Partnership Agreements") the Partnerships were initially scheduled
to terminate on the dates indicated in the "Initial Termination Date"
column of the following chart. However, the Partnership Agreements provide
that the General Partner may extend the term of each Partnership for up to
five periods of two years each. As of the date of this Quarterly Report,
the General Partner has extended the terms of the III-A, III-B, III-C, and
III-D Partnerships for the first two-year extension period. Therefore, the
Partnerships are currently scheduled to terminate on the dates indicated
in the "Current Termination Date" column of the following chart.
Initial Extensions Current
Partnership Termination Date Exercised Termination Date
----------- ----------------- --------- -----------------
III-A November 22, 1999 1 November 22, 2001
III-B January 24, 2000 1 January 24, 2002
III-C February 28, 2000 1 February 28, 2002
III-D September 5, 2000 1 September 5, 2002
III-E December 26, 2000 - December 26, 2000
III-F March 7, 2001 - March 7, 2001
III-G September 20, 2001 - September 20, 2001
The General Partner will extend the term of the III-E Partnership for its
first two-year extension period. The General Partner has not determined
whether it intends to (i) further extend the terms of such Partnerships or
(ii) extend the term of any other Partnership.
-35-
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 in the "spot market". Prices on
the spot market are subject to wide seasonal and regional pricing
fluctuations due to the highly competitive nature of the spot market. Such
spot market sales are generally short-term in nature and are dependent
upon the obtaining of transportation services provided by pipelines.
However, oil and gas are depleting assets, so it can be expected that
production levels will decline over time. Recent gas prices have been
significantly higher than the Partnerships' historical average. This is
attributable to the higher prices for crude oil, a substitute fuel in some
markets, and reduced production due to lower capital investments in 1998
and 1999.
III-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 $1,103,043 $594,498
Oil and gas production expenses $ 241,552 $152,903
Barrels produced 12,973 9,173
Mcf produced 174,044 162,850
Average price/Bbl $ 29.36 $ 20.02
Average price/Mcf $ 4.15 $ 2.52
As shown in the table above, total oil and gas sales increased $508,545
(85.5%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$121,000 and $283,000, respectively, were related to increases in the
average prices of oil and gas sold and approximately $76,000 was related
to an increase in the
-36-
volumes of oil sold. Volumes of oil and gas sold increased 3,800 barrels
and 11,194 Mcf, respectively, 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) the successful
workover of two significant wells during 1999 and (ii) positive prior
period volume adjustments made by the purchasers on two other significant
wells during the three months ended September 30, 2000. Average oil and
gas prices increased to $29.36 per barrel and $4.15 per Mcf, respectively,
for the three months ended September 30, 2000 from $20.02 per barrel and
$2.52 per Mcf, respectively, for the three months ended September 30,
1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $88,649 (58.0%) 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) workover expenses incurred on
two significant wells during the three months ended September 30, 2000 and
(ii) an increase in production taxes associated with the increase of oil
and gas sales. As a percentage of oil and gas sales, these expenses
decreased to 21.9% for the three months ended September 30, 2000 from
25.7% 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.
Depreciation, depletion, and amortization of oil and gas properties
remained relatively constant for the three months ended September 30, 2000
as compared to the three months ended September 30, 1999. Any decrease in
depreciation, depletion, and amortization due to upward revisions in the
estimates of remaining oil and gas reserves at December 31, 1999 was
substantially offset by the increases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense decreased to 9.6% for the
three months ended September 30, 2000 from 18.0% 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.
General and administrative expenses increased $2,825 (3.9%) for the three
months ended September 30, 2000 as compared to the three months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 6.9% 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.
-37-
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 $2,651,107 $1,528,277
Oil and gas production expenses $ 693,678 $ 419,880
Barrels produced 35,783 27,420
Mcf produced 499,595 527,937
Average price/Bbl $ 28.61 $ 15.31
Average price/Mcf $ 3.26 $ 2.10
As shown in the table above, total oil and gas sales increased $1,122,830
(73.5%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$476,000 and $578,000, respectively, were related to increases in the
average prices of oil and gas sold and approximately $128,000 was related
to an increase in volumes of oil sold. Volumes of oil sold increased 8,363
barrels, while volumes of gas sold decreased 28,342 Mcf for the nine
months ended September 30, 2000 as compared to the nine months ended
September 30, 1999. The increase in volumes of oil sold was primarily due
to the successful workover of two significant wells during 1999. Average
oil and gas prices increased to $28.61 per barrel and $3.26 per Mcf,
respectively, for the nine months ended September 30, 2000 from $15.31 per
barrel and $2.10 per Mcf, respectively, for the nine months ended
September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $273,798 (65.2%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This increase was primarily due to (i) workover expenses incurred on
three significant wells during the nine months ended September 30, 2000
and (ii) an increase in production taxes associated with the increase of
oil and gas sales. As a percentage of oil and gas sales, these expenses
decreased to 26.2% for the nine months ended September 30, 2000 from 27.5%
for the nine months ended September 30, 1999.
Depreciation, depletion, and amortization of oil and gas properties
decreased $39,302 (11.6%) 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. This decrease was partially offset by
the increase in volumes of oil sold. As a percentage of oil and gas sales,
this expense decreased to 11.3% for the nine months ended September 30,
2000 from
-38-
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.
General and administrative expenses increased $2,979 (1.2%) 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 9.1% 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.
The III-A Partnership achieved payout during the nine months ended
September 30, 2000. After payout, operations and revenues for the III-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 III-A
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.
The Limited Partners have received cash distributions through September
30, 2000 totaling $27,082,701 or 102.60% of Limited Partners' capital
contributions.
III-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 $671,722 $380,078
Oil and gas production expenses $155,966 $ 97,294
Barrels produced 10,714 9,039
Mcf produced 84,704 79,004
Average price/Bbl $ 29.79 $ 19.96
Average price/Mcf $ 4.16 $ 2.53
As shown in the table above, total oil and gas sales increased $291,644
(76.7%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$105,000 and $138,000, respectively, were related to increases in the
average prices of oil and gas sold and approximately $33,000 was related
to an increase in volumes of oil sold. Volumes of oil and gas sold
increased 1,675 barrels and 5,700 Mcf, respectively, for the three months
-39-
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) the
successful workover of two significant wells during 1999 and (ii) positive
prior period volume adjustments made by the purchasers on two other
significant wells during the three months ended September 30, 2000.
Average oil and gas prices increased to $29.79 per barrel and $4.16 per
Mcf, respectively, for the three months ended September 30, 2000 from
$19.96 per barrel and $2.53 per Mcf, respectively, for the three months
ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $58,672 (60.3%) for the three months ended
September 30, 2000 as compared to the three months ended September 30,
1999. This increase was primarily due to (i) workover expenses incurred on
two significant wells during the three months ended September 30, 2000 and
(ii) an increase in production taxes associated with the increase of oil
and gas sales. As a percentage of oil and gas sales, these expenses
decreased to 23.2% for the three months ended September 30, 2000 from
25.6% for the three months ended September 30, 1999.
Depreciation, depletion, and amortization of oil and gas properties
decreased $3,862 (6.0%) 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, this expense decreased to 8.9% for the three months
ended September 30, 2000 from 16.8% 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 $2,390 (6.2%) 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, this percentage
decreased to 6.1% for the three months ended September 30, 2000 from 10.1%
for the three months ended September 30, 1999. This percentage decrease
was primarily due to the increase in oil and gas sales.
-40-
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 $1,653,414 $880,919
Oil and gas production expenses $ 431,357 $262,971
Barrels produced 30,218 24,565
Mcf produced 239,719 233,954
Average price/Bbl $ 28.75 $ 15.82
Average price/Mcf $ 3.27 $ 2.10
As shown in the table above, total oil and gas sales increased $772,495
(87.7%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$391,000 and $280,000, respectively, were related to increases in the
average prices of oil and gas sold and approximately $89,000 was related
to an increase in volumes of oil sold. Volumes of oil and gas sold
increased 5,653 barrels and 5,765 Mcf, respectively, for the nine months
ended September 30, 2000 as compared to the nine months ended September
30, 1999. The increase in volumes of oil sold was primarily due to the
successful workover of two significant wells during 1999. Average oil and
gas prices increased to $28.75 per barrel and $3.27 per Mcf, respectively,
for the nine months ended September 30, 2000 from $15.82 per barrel and
$2.10 per Mcf, respectively, for the nine months ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $168,386 (64.0%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This increase was primarily due to (i) workover expenses incurred on
three significant wells during the nine months ended September 30, 2000
and (ii) an increase in production taxes associated with the increase of
oil and gas sales. As a percentage of oil and gas sales, these expenses
decreased to 26.1% for the nine months ended September 30, 2000 from 29.9%
for the nine months ended September 30, 1999. This percentage decrease was
primarily due to increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $13,230 (7.2%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. As a percentage of
oil and gas sales, this expense decreased to 10.3% for the nine months
ended September 30, 2000 from 20.8% for the nine months ended September
30, 1999. This percentage decrease was
-41-
primarily due to the increases in the average prices of oil and gas
sold.
General and administrative expenses increased $2,738 (2.2%) for the nine
months ended September 30, 2000 as compared to the nine months ended
September 30, 1999. As a percentage of oil and gas sales, this percentage
decreased to 7.8% for the nine months ended September 30, 2000 from 14.2%
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 $15,762,353 or 113.94% of Limited Partners' capital
contributions.
III-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 $1,117,930 $701,079
Oil and gas production expenses $ 233,588 $175,722
Barrels produced 4,444 5,559
Mcf produced 256,258 247,336
Average price/Bbl $ 31.40 $ 20.69
Average price/Mcf $ 3.82 $ 2.37
As shown in the table above, total oil and gas sales increased $416,851
(59.5%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$48,000 and $371,000, respectively, were related to increases in the
average prices of oil and gas sold. Volumes of oil sold decreased 1,115
barrels, while volumes of gas sold increased 8,922 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 normal declines in production. Average oil and gas prices increased to
$31.40 per barrel and $3.82 per Mcf, respectively, for the three months
ended September 30, 2000 from $20.69 per barrel and $2.37 per Mcf,
respectively, for the three months ended September 30, 1999.
-42-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $57,866 (32.9%) 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, and (iii) positive prior period lease operating
expense adjustments made by the operators on two other significant wells
during the three months ended September 30, 2000. As a percentage of oil
and gas sales, these expenses decreased to 20.9% 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 $18,856 (15.8%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This decrease was
primarily due to 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 9.0% for the three months ended September 30,
2000 from 17.0% 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.
General and administrative expenses increased $2,265 (3.3%) for the three
months ended September 30, 2000 as compared to the three months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 6.3% for the three months ended September 30, 2000 from 9.7%
for the three months ended September 30, 1999. This percentage decrease
was primarily due to the increase in oil and gas sales.
-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 $2,714,891 $1,758,244
Oil and gas production expenses $ 604,439 $ 468,686
Barrels produced 15,253 17,591
Mcf produced 715,267 763,256
Average price/Bbl $ 29.15 $ 16.11
Average price/Mcf $ 3.17 $ 1.93
As shown in the table above, total oil and gas sales increased $956,647
(54.4%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$199,000 and $888,000, respectively, were related to increases in the
average prices of oil and gas sold. Volumes of oil and gas sold decreased
2,338 barrels and 47,989 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 normal
declines in production. Average oil and gas prices increased to $29.15 per
barrel and $3.17 per Mcf, respectively, for the nine months ended
September 30, 2000 from $16.11 per barrel and $1.93 per Mcf, respectively,
for the nine months ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $135,753 (29.0%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This increase was primarily due to (i) an increase in production
taxes associated with the increase in oil and gas sales, (ii) workover
expenses incurred on one significant well during the nine months ended
September 30, 2000, and (iii) positive prior period lease operating
expense adjustments made by the operators on two other significant wells
during the nine months ended September 30, 2000. As a percentage of oil
and gas sales, these expenses decreased to 22.3% for the nine months ended
September 30, 2000 from 26.7% 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.
-44-
Depreciation, depletion, and amortization of oil and gas properties
decreased $82,832 (22.4%) 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) upward revisions in the estimates of remaining oil
and gas reserves at December 31, 1999 and (ii) the decreases in volumes of
oil and gas sold. As a percentage of oil and gas sales, this expense
decreased to 10.5% for the nine months ended September 30, 2000 from 21.0%
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.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 2000 as compared to the nine months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 8.3% for the nine months ended September 30, 2000 from 12.6%
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 $19,784,795 or 80.91% of Limited Partners' capital
contributions.
III-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 $817,695 $543,247
Oil and gas production expenses $206,260 $176,953
Barrels produced 6,952 7,591
Mcf produced 170,971 169,113
Average price/Bbl $ 27.86 $ 18.60
Average price/Mcf $ 3.65 $ 2.38
As shown in the table above, total oil and gas sales increased $274,448
(50.5%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$64,000 and $218,000, respectively, were related to increases in the
average prices of oil and gas sold. Volumes of oil sold decreased 639
barrels, while volumes of gas sold increased 1,858 Mcf for the three
months ended September 30, 2000 as compared to the three months ended
September 30, 1999. The increase in volumes of gas sold was primarily due
to positive prior period volume adjustments made by the
-45-
purchasers on several wells during the three months ended September 30,
2000. This increase was partially offset by (i) normal declines in
production and (ii) the sale of several wells during early 2000. Average
oil and gas prices increased to $27.86 per barrel and $3.65 per Mcf,
respectively, for the three months ended September 30, 2000 from $18.60
per barrel and $2.38 per Mcf, respectively, for the three months ended
September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $29,307 (16.6%) 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 of oil and gas sales and (ii) workover
expenses incurred on one significant well during the three months ended
September 30, 2000 in order to improve the recovery of reserves. As a
percentage of oil and gas sales, these expenses decreased to 25.2% for the
three months ended September 30, 2000 from 32.6% 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.
Depreciation, depletion, and amortization of oil and gas properties
decreased $15,849 (24.1%) 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. As a percentage of oil and gas sales,
this expense decreased to 6.1% for the three months ended September 30,
2000 from 12.1% 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 and the dollar decrease in depreciation,
depletion, and amortization.
General and administrative expenses increased $1,825 (5.0%) 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 4.7% for the three months ended September 30, 2000 from 6.7%
for the three months ended September 30, 1999. This percentage decrease
was primarily due to the increase in the oil and gas sales.
-46-
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 $2,146,696 $1,410,133
Oil and gas production expenses $ 589,575 $ 521,769
Barrels produced 23,491 27,307
Mcf produced 483,469 540,394
Average price/Bbl $ 26.19 $ 13.76
Average price/Mcf $ 3.17 $ 1.91
As shown in the table above, total oil and gas sales increased $736,563
(52.2%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$292,000 and $606,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $109,000 related to a decrease in volumes
of gas sold. Volumes of oil and gas sold decreased 3,816 barrels and
56,925 Mcf, respectively, for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. The decreases in
volumes of oil and gas sold were primarily due to (i) normal declines in
production and (ii) the sale of several wells during early 2000. Average
oil and gas prices increased to $26.19 per barrel and $3.17 per Mcf,
respectively, for the nine months ended September 30, 2000 from $13.76 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 III-D
Partnership sold certain oil and gas properties during the nine months
ended September 30, 2000 and recognized a $197,929 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) increased $67,806 (13.0%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This increase was primarily due to (i) an increase in production
taxes associated with the increase of oil and gas sales and (ii) workover
expenses incurred 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 37.0%
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.
-47-
Depreciation, depletion, and amortization of oil and gas properties
decreased $71,128 (32.9%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This decrease was
primarily due to (i) upward revisions in the estimates of remaining oil
and gas reserves at December 31, 1999 and (ii) the decreases in volumes of
oil and gas sold. As a percentage of oil and gas sales, this expense
decreased to 6.7% for the nine months ended September 30, 2000 from 15.3%
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
and the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses increased $1,435 (1.2%) 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 5.7% for the nine months ended September 30, 2000 from 8.5%
for the nine months ended September 30, 1999. This percentage decrease was
primarily due to the increase in the oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2000 totaling $10,490,669 or 80.08% of Limited Partners' capital
contributions.
III-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 $2,475,574 $1,877,248
Oil and gas production expenses $ 865,327 $ 890,635
Barrels produced 43,388 44,634
Mcf produced 339,350 436,613
Average price/Bbl $ 27.79 $ 17.85
Average price/Mcf $ 3.74 $ 2.47
As shown in the table above, total oil and gas sales increased $598,326
(31.9%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$431,000 and $430,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $241,000 related to a decrease in volumes
of gas sold. Volumes of oil and gas sold decreased 1,246 barrels and
97,263 Mcf, respectively, for the three months ended September 30, 2000 as
compared to the three months
-48-
ended September 30, 1999. The decrease in volumes of gas sold was
primarily due to (i) the sale of several wells during early 2000 and (ii)
a negative prior period volume adjustment made by the purchaser on one
significant well during the three months ended September 30, 2000. Average
oil and gas prices increased to $27.79 per barrel and $3.74 per Mcf,
respectively, for the three months ended September 30, 2000 from $17.85
per barrel and $2.47 per Mcf, respectively, for the three months ended
September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $25,308 (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
35.0% for the three months ended September 30, 2000 from 47.4% 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.
Depreciation, depletion, and amortization of oil and gas properties
decreased $39,938 (28.3%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This decrease was
primarily due to (i) the decreases in volumes of oil and gas sold and (ii)
upward revisions in the estimates of remaining oil and gas reserves at
December 31, 1999. As a percentage of oil and gas sales, this expense
decreased to 4.1% for three months ended September 30, 2000 from 7.5% 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.
General and administrative expenses increased $3,486 (3.0%) 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 4.8% for the three months ended September 30, 2000 from 6.2%
for the three months ended September 30, 1999. This percentage decrease
was primarily due to the increase in oil and gas sales.
-49-
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 $7,530,254 $4,559,288
Oil and gas production expenses $2,643,857 $2,652,989
Barrels produced 140,208 152,375
Mcf produced 1,192,352 1,255,776
Average price/Bbl $ 25.72 $ 13.43
Average price/Mcf $ 3.29 $ 2.00
As shown in the table above, total oil and gas sales increased $2,970,966
(65.2%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$1,724,000 and $1,537,000, respectively, were related to increases in the
average prices of oil and gas sold. Volumes of oil and gas sold decreased
12,167 barrels and 63,424 Mcf, respectively, for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. Average oil and gas prices increased to $25.72 per barrel and $3.29
per Mcf, respectively, for the nine months ended September 30, 2000 from
$13.43 per barrel and $2.00 per Mcf, respectively, for the nine months
ended September 30, 1999.
As discussed in Liquidity and Capital Resources above, the III-E
Partnership sold certain oil and gas properties during the nine months
ended September 30, 2000 and recognized a $1,322,199 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) 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
35.1% for the nine months ended September 30, 2000 from 58.2% 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.
Depreciation, depletion, and amortization of oil and gas properties
decreased $101,752 (23.4%) 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. As a percentage of oil and gas sales,
this expense decreased to 4.4% for nine months ended September 30, 2000
from 9.5% for the nine
-50-
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 5.1% for the nine months ended September 30, 2000 from 8.4%
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 $36,327,016 or 86.85% of Limited Partners' capital
contributions.
III-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 $735,710 $698,626
Oil and gas production expenses $202,847 $231,934
Barrels produced 9,542 12,820
Mcf produced 131,163 205,030
Average price/Bbl $ 28.48 $ 19.22
Average price/Mcf $ 3.54 $ 2.21
As shown in the table above, total oil and gas sales increased $37,084
(5.3%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$88,000 and $175,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $63,000 and $163,000, respectively, related
to decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 3,278 barrels and 73,867 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) the
sale of several wells during late 1999 and early 2000 and (ii) normal
declines in production. 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 three months ended September 30, 1999
and (ii) a negative prior period volume adjustment made by the purchaser
on another significant well during the three months ended September 30,
2000. Average oil and gas prices increased to $28.48 per
-51-
barrel and $3.54 per Mcf, respectively, for the three months ended
September 30, 2000 from $19.22 per barrel and $2.21 per Mcf, respectively,
for the three months ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $29,087 (12.5%) 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 sale of several wells during
late 1999 and early 2000. This decrease was partially offset by (i)
workover expenses incurred on one significant well during the three months
ended September 30, 2000 and (ii) 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 27.6% for the three months
ended September 30, 2000 from 33.2% 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 $65,917 (45.8%) 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) the decreases in volumes of oil and gas sold and (ii)
upward revisions in the estimates of remaining oil and gas reserves at
December 31, 1999. As a percentage of oil and gas sales, this expense
decreased to 10.6% for the three months ended September 30, 2000 from
20.6% 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.
General and administrative expenses increased $2,246 (3.7%) for the three
months ended September 30, 2000 as compared to the three months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 8.6% for the three months ended September 30, 2000 from 8.8%
for the three months ended September 30, 1999.
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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 $2,402,405 $1,621,650
Oil and gas production expenses $ 655,774 $ 752,069
Barrels produced 34,242 42,836
Mcf produced 495,157 535,860
Average price/Bbl $ 27.83 $ 14.66
Average price/Mcf $ 2.93 $ 1.85
As shown in the table above, total oil and gas sales increased $780,755
(48.1%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$451,000 and $531,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $126,000 related to a decrease in volumes
of oil sold. Volumes of oil and gas sold decreased 8,594 barrels and
40,703 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 (i) the sale of several wells
during late 1999 and early 2000 and (ii) normal declines in production.
Average oil and gas prices increased to $27.83 per barrel and $2.93 per
Mcf, respectively, for the nine months ended September 30, 2000 from
$14.66 per barrel and $1.85 per Mcf, respectively, for the nine months
ended September 30, 1999.
As discussed in Liquidity and Capital Resources above, the III-F
Partnership sold certain oil and gas properties during the nine months
ended September 30, 2000 and recognized a $150,840 gain on such sales.
Sales of oil and gas properties during the nine months ended September 30,
1999 resulted in the III-F Partnership recognizing similar gains of
$18,156.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $96,295 (12.8%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This decrease was primarily due to (i) the sale of several wells
during late 1999 and early 2000 and (ii) a positive prior period lease
operating expense adjustment made by the operator on one significant well
during the nine months ended September 30, 1999. These decreases were
partially offset by (i) the reversal of a litigation accrual during the
nine months ended September 30, 1999 and (ii) an increase in production
-53-
taxes associated with the increase in oil and gas sales. As a percentage
of oil and gas sales, these expenses decreased to 27.3% for the nine
months ended September 30, 2000 from 46.4% 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.
Depreciation, depletion, and amortization of oil and gas properties
decreased $116,638 (28.8%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This decrease was
primarily due to (i) upward revisions in the estimates of remaining oil
and gas reserves at December 31, 1999 and (ii) the decreases in volumes of
oil and gas sold. As a percentage of oil and gas sales, this expense
decreased to 12.0% for the nine months ended September 30, 2000 from 24.9%
for the nine months ended September 30, 1999. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 2000 as compared to the nine months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 8.5% for the nine months ended September 30, 2000 from 12.4%
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 $13,251,904 or 59.83% of Limited Partners' capital
contributions.
III-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 $446,431 $440,935
Oil and gas production expenses $125,520 $144,081
Barrels produced 7,012 9,897
Mcf produced 70,232 114,797
Average price/Bbl $ 28.58 $ 18.73
Average price/Mcf $ 3.50 $ 2.23
As shown in the table above, total oil and gas sales increased $5,496
(1.2%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$69,000 and $90,000, respectively, were related to increases in the
average prices
-54-
of oil and gas sold. These increases were partially offset by decreases of
approximately $54,000 and $99,000, respectively, related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 2,885
barrels and 44,565 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) the sale of
several wells during late 1999 and early 2000 and (ii) normal declines in
production. 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 three months ended September 30, 1999 and (ii)
a negative prior period volume adjustment made by the purchaser on another
significant well during the three months ended September 30, 2000. Average
oil and gas prices increased to $28.58 per barrel and $3.50 per Mcf,
respectively, for the three months ended September 30, 2000 from $18.73
per barrel and $2.23 per Mcf, respectively, for the three months ended
September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $18,561 (12.9%) for the three months ended
September 30, 2000 as compared to the three months ended September 30,
1999. This decrease was primarily due to the sale of several wells during
late 1999 and early 2000. This decrease was partially offset by (i)
workover expenses incurred on one well during the three months ended
September 30, 2000 and (ii) an increase in production taxes associated
with the increase of oil and gas sales. As a percentage of oil and gas
sales, these expenses decreased to 28.1% for the three months ended
September 30, 2000 from 32.7% 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.
Depreciation, depletion, and amortization of oil and gas properties
decreased $51,416 (57.5%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This decrease was
primarily due to (i) the decreases in volumes of oil and gas sold and (ii)
upward revisions in the estimates of remaining oil and gas reserves at
December 31, 1999. As a percentage of oil and gas sales, this expense
decreased to 8.5% for the three months ended September 30, 2000 from 20.3%
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.
-55-
General and administrative expenses increased $1,441 (4.3%) for the three
months ended September 30, 2000 as compared to the three months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
increased to 7.9% for the three months ended September 30, 2000 from 7.7%
for the three months ended September 30, 1999.
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 $1,463,791 $1,004,949
Oil and gas production expenses $ 415,646 $ 496,103
Barrels produced 25,020 31,383
Mcf produced 260,470 292,301
Average price/Bbl $ 27.93 $ 14.60
Average price/Mcf $ 2.94 $ 1.87
As shown in the table above, total oil and gas sales increased $458,842
(45.7%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$334,000 and $278,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $93,000 and $60,000, respectively, related
to decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 6,363 barrels and 31,831 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 (i) the
sale of several wells during 1999 and early 2000 and (ii) normal declines
in production. The decrease in volumes of gas sold was primarily due to a
positive prior period volume adjustment made by the purchaser on one
significant well during the nine months ended September 30, 1999. Average
oil and gas prices increased to $27.93 per barrel and $2.94 per Mcf,
respectively, for the nine months ended September 30, 2000 from $14.60 per
barrel and $1.87 per Mcf, respectively, for the nine months ended
September 30, 1999.
As discussed in Liquidity and Capital Resources above, the III-G
Partnership sold certain oil and gas properties during the nine months
ended September 30, 2000 and recognized a $157,065 gain on such sales.
Sales of oil and gas properties during the nine months ended September 30,
1999 resulted in the III-G Partnership recognizing similar gains of
$13,064.
-56-
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $80,457 (16.2%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This decrease was primarily due to (i) the sale of several wells
during late 1999 and early 2000 and (ii) a positive prior period lease
operating expense adjustment made by the operator on one significant well
during the nine months ended September 30, 1999. These decreases were
partially offset by (i) the reversal of a litigation accrual during the
nine months ended September 30, 1999 and (ii) 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 28.4% for the nine
months ended September 30, 2000 from 49.4% 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.
Depreciation, depletion, and amortization of oil and gas properties
decreased $109,106 (44.2%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This decrease was
primarily due to (i) upward revisions in the estimates of remaining oil
and gas reserves at December 31, 1999 and (ii) the decreases in volumes of
oil and gas sold. As a percentage of oil and gas sales, this expense
decreased to 9.4% for the nine months ended September 30, 2000 from 24.5%
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.
General and administrative expenses increased $1,259 (1.1%) for the nine
months ended September 30, 2000 as compared to the nine months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 7.7% for the nine months ended September 30, 2000 from 11.1%
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 $7,168,287 or 58.79% of Limited Partners' capital
contributions.
-57-
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The Partnerships do not hold any market risk sensitive
instruments.
-58-
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 III-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 III-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 III-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 III-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 III-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 III-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 III-G 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.
-59-
(b) Reports on Form 8-K.
Current Report on Form 8-K was filed during the third quarter of 2000:
Date of Event August 23, 2000
Date filed with the SEC August 23, 2000
Items Included Item 5 - Other Events
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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 III-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
(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
-61-
INDEX TO EXHIBITS
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership III-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 III-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 III-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 III-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 III-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 III-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 III-G'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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