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 March 31, 1996
Commission File Number:
I-B: 0-14657 I-C: 0-14658 I-D: 0-15831 I-E: 0-15832 I-F: 0-15833
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
----------------------------------------------
I-B 73-1231998
I-C 73-1252536
I-D 73-1265223
I-E 73-1270110
Oklahoma I-F 73-1292669
- ---------------------------- ---------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
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 the filing requirements for the past 90
days.
Yes X No
---- ----
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-B
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-B
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1996 1995
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . $ 15,217 $ 25,001
Accounts receivable:
General Partner . . . . . . . . . . 303 4,074
Oil and gas sales, including $5,872 due
from related parties in 1995 (Note 2) 64,987 38,453
-------- --------
Total current assets . . . . . . $ 80,507 $ 67,528
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method . . . . 461,109 482,234
DEFERRED CHARGE . . . . . . . . . . . . 98,278 98,278
-------- --------
$639,894 $648,040
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . $ 8,933 $ 7,659
Gas imbalance payable . . . . . . . . 73,983 73,983
-------- --------
Total current liabilities . . . . $ 82,916 $ 81,642
ACCRUED LIABILITY . . . . . . . . . . . $ 34,173 $ 34,173
PARTNERS' CAPITAL (DEFICIT):
General Partner . . . . . . . . . . . ($105,317) ($104,724)
Limited Partners, issued and outstanding,
11,958 units . . . . . . . . . . . 628,122 636,949
-------- --------
Total Partners' capital . . . . . $522,805 $532,225
-------- --------
$639,894 $648,040
======== ========
The accompanying notes are an integral part of
these combined financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-B
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
----------- ----------
REVENUES:
Oil and gas sales, including $16,773
of sales to related parties in 1995
(Note 2) . . . . . . . . . . . . . . $86,128 $103,375
Interest and other income . . . . . . 130 255
Gain on sale of oil and gas
properties . . . . . . . . . . . . . - 2,519
------- --------
$86,258 $106,149
COSTS AND EXPENSES:
Lease operating . . . . . . . . . . . $26,435 $ 41,973
Production tax . . . . . . . . . . . 5,241 7,724
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 21,125 96,923
General and administrative . . . . . 18,708 13,204
------- --------
$71,509 $159,824
------- --------
NET INCOME (LOSS) . . . . . . . . . . . $14,749 ($ 53,675)
======= ========
GENERAL PARTNER - NET INCOME . . . . . $ 1,576 $ 1,193
======= ========
LIMITED PARTNERS - NET INCOME (LOSS) . $13,173 ($ 54,868)
======= ========
NET INCOME (LOSS) per unit . . . . . . $ 1.10 ($ 4.59)
======= ========
UNITS OUTSTANDING . . . . . . . . . . . 11,958 11,958
======= ========
The accompanying notes are an integral part of
these combined financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-B
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-B
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) . . . . . . . . . . $14,749 ($53,675)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . 21,125 96,923
Gain on sale of oil and gas properties - ( 2,519)
Decrease in accounts receivable -
General Partner . . . . . . . . . . 3,771 -
Increase in accounts receivable . . ( 26,534) ( 10,646)
Increase (Decrease) in accounts
payable . . . . . . . . . . . . . . 1,274 ( 6,775)
------- -------
Net cash provided by operating
activities . . . . . . . . . . . . . $14,385 $23,308
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures . . . . . . . . $ - ($ 1,022)
Proceeds from sale of oil and gas
properties . . . . . . . . . . . . . - 2,519
------- -------
Net cash provided by investing
activities . . . . . . . . . . . . . $ - $ 1,497
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . ($24,169) ($55,800)
------- -------
Net cash used by financing activities ($24,169) ($55,800)
------- -------
NET DECREASE IN CASH AND CASH EQUIVALENTS ($ 9,784) ($30,995)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD . . . . . . . . . . . . . . . . 25,001 56,549
------- -------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD . . . . . . . . . . . . . . . . $15,217 $25,554
======= =======
The accompanying notes are an integral part of
these combined financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-C
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1996 1995
-------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . $171,220 $115,815
Accounts receivable:
General Partner . . . . . . . . . . - 18,104
Oil and gas sales . . . . . . . . . 165,638 161,572
-------- --------
Total current assets . . . . . . . $336,858 $295,491
NET OIL AND GAS PROPERTIES, utilizing the
successful efforts method . . . . . . 407,065 445,122
DEFERRED CHARGE . . . . . . . . . . . . 39,457 39,457
-------- --------
$783,380 $780,070
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . $ 13,467 $ 16,781
Gas imbalance payable . . . . . . . . 13,021 13,021
-------- --------
Total current liabilities . . . . $ 26,488 $ 29,802
ACCRUED LIABILITY . . . . . . . . . . . $ 15,632 $ 15,632
PARTNERS' CAPITAL (DEFICIT):
General Partner . . . . . . . . . . . ($ 80,968) ($ 66,308)
Limited Partners, issued and outstanding,
8,885 units . . . . . . . . . . . . 822,228 800,944
-------- --------
Total Partners' capital . . . . . $741,260 $734,636
-------- --------
$783,380 $780,070
======== ========
The accompanying notes are an integral part of
these combined financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
--------- ----------
REVENUES:
Oil and gas sales, including $2,412 of
sales to related parties in 1995
(Note 2) . . . . . . . . . . . . . . $265,339 $211,478
Interest and other income . . . . . . 1,110 952
-------- --------
$266,449 $212,430
COSTS AND EXPENSES:
Lease operating . . . . . . . . . . . $ 43,518 $ 57,823
Production tax . . . . . . . . . . . 17,144 16,796
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 38,057 57,957
General and administrative . . . . . 29,045 25,483
-------- --------
$127,764 $158,059
-------- --------
NET INCOME . . . . . . . . . . . . . . $138,685 $ 54,371
======== ========
GENERAL PARTNER - NET INCOME . . . . . $ 8,401 $ 5,037
======== ========
LIMITED PARTNERS - NET INCOME . . . . . $130,284 $ 49,334
======== ========
NET INCOME per unit . . . . . . . . . . $ 14.66 $ 5.55
======== ========
UNITS OUTSTANDING . . . . . . . . . . . 8,885 8,885
======== ========
The accompanying notes are an integral part of
these combined financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-C
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . $138,685 $ 54,371
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . 38,057 57,957
Decrease in accounts receivable -
General Partner . . . . . . . . . . 18,104 -
(Increase) Decrease in accounts
receivable . . . . . . . . . . . . ( 4,066) 14,128
Decrease in accounts payable . . . ( 3,314) ( 4,270)
-------- --------
Net cash provided by operating
activities . . . . . . . . . . . . . $187,466 $122,186
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash used by investing activities $ - $ -
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . ($132,061) ($115,800)
-------- --------
Net cash used by financing activities ($132,061) ($115,800)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . . . $ 55,405 $ 6,386
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD . . . . . . . . . . . . . . . 115,815 116,512
-------- --------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD . . . . . . . . . . . . . . . . $171,220 $122,898
======== ========
The accompanying notes are an integral part of
these combined financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1996 1995
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 250,304 $ 245,666
Accounts receivable:
Oil and gas sales, including $65,811
due from related parties in 1995
(Note 2) . . . . . . . . . . . . . 251,512 224,856
---------- ----------
Total current assets . . . . . . $ 501,816 $ 470,522
NET OIL AND GAS PROPERTIES, utilizing the
successful efforts method . . . . . 960,436 1,010,429
DEFERRED CHARGE . . . . . . . . . . . . 113,490 113,490
---------- ----------
$1,575,742 $1,594,441
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . $ 11,687 $ 30,749
Gas imbalance payable . . . . . . . . 67,130 67,130
---------- ----------
Total current liabilities . . . . $ 78,817 $ 97,879
ACCRUED LIABILITY . . . . . . . . . . . $ 17,970 $ 17,970
PARTNERS' CAPITAL (DEFICIT):
General Partner . . . . . . . . . . . ($ 10,807) $ 17,993
Limited Partners, issued and
outstanding, 7,195 units . . . . . . 1,489,762 1,460,599
---------- ----------
Total Partners' capital . . . . . $1,478,955 $1,478,592
---------- ----------
$1,575,742 $1,594,441
========== ==========
The accompanying notes are an integral part of
these combined financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
--------- ---------
REVENUES:
Oil and gas sales, including $88,757 of
sales to related parties in 1995
(Note 2) . . . . . . . . . . . . . . $406,636 $302,642
Interest income . . . . . . . . . . . 1,957 2,006
Gain (Loss) on sale of oil and gas
properties . . . . . . . . . . . . . ( 200) 1,609
-------- --------
$408,393 $306,257
COSTS AND EXPENSES:
Lease operating . . . . . . . . . . . $ 41,271 $ 37,673
Production tax . . . . . . . . . . . 28,506 23,113
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 48,557 70,365
General and administrative . . . . . 24,568 22,389
-------- --------
$142,902 $153,540
-------- --------
NET INCOME . . . . . . . . . . . . . . $265,491 $152,717
======== ========
GENERAL PARTNER - NET INCOME . . . . . $ 46,328 $ 32,759
======== ========
LIMITED PARTNERS - NET INCOME . . . . . $219,163 $119,958
======== ========
NET INCOME per unit . . . . . . . . . . $ 30.46 $ 16.67
======== ========
UNITS OUTSTANDING . . . . . . . . . . . 7,195 7,195
======== ========
The accompanying notes are an integral part of
these combined financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . $265,491 $152,717
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . 48,557 70,365
(Gain) Loss on sale of oil and gas
properties . . . . . . . . . . . . 200 ( 1,609)
(Increase) Decrease in accounts
receivable . . . . . . . . . . . . ( 26,656) 40,396
Decrease in accounts payable . . . ( 19,062) ( 25,969)
-------- --------
Net cash provided by operating
activities . . . . . . . . . . . . . $268,530 $235,900
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of oil and gas
properties . . . . . . . . . . . . . $ 1,236 $ 1,739
-------- --------
Net cash provided by investing
activities . . . . . . . . . . . . . $ 1,236 $ 1,739
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . ($265,128) ($229,000)
-------- --------
Net cash used by financing activities ($265,128) ($229,000)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . . $ 4,638 $ 8,639
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD . . . . . . . . . . . . . . . 245,666 247,485
-------- --------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD . . . . . . . . . . . . . . . . $250,304 $256,124
======== ========
The accompanying notes are an integral part of
these combined financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1996 1995
----------- -------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . $ 635,630 $ 734,316
Accounts receivable:
Oil and gas sales, including $373,412
due from related parties in 1995
(Note 2) . . . . . . . . . . . . 923,126 775,771
---------- ----------
Total current assets . . . . . . . $1,558,756 $1,510,087
NET OIL AND GAS PROPERTIES, utilizing the
successful efforts method . . . . . . 6,249,149 6,504,506
DEFERRED CHARGE . . . . . . . . . . . . 942,747 942,747
---------- ----------
$8,750,652 $8,957,340
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . $ 82,090 $ 172,888
Gas imbalance payable . . . . . . . . 210,231 210,231
---------- ----------
Total current liabilities . . . . $ 292,321 $ 383,119
ACCRUED LIABILITY . . . . . . . . . . . $ 135,446 $ 135,446
PARTNERS' CAPITAL (DEFICIT):
General Partner . . . . . . . . . . . ($ 127,749) ($ 54,687)
Limited Partners, issued and
outstanding 41,839 units . .. . . 8,450,634 8,493,462
---------- ----------
Total Partners' capital . . . . . $8,322,885 $8,438,775
---------- ----------
$8,750,652 $8,957,340
========== ==========
The accompanying notes are an integral part of
these combined financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
---------- ----------
REVENUES:
Oil and gas sales, including $528,519
of sales to related parties in 1995
(Note 2) . . . . . . . . . . . . . . $1,405,408 $1,205,757
Interest and other income . . . . . . 5,556 6,261
Gain on sale of oil and gas properties 1,515 11,021
---------- ----------
$1,412,479 $1,223,039
COSTS AND EXPENSES:
Lease operating . . . . . . . . . . . $ 289,956 $ 344,007
Production tax . . . . . . . . . . . 92,229 81,724
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 253,205 466,359
General and administrative . . . . . 142,045 128,895
---------- ----------
$ 777,435 $1,020,985
---------- ----------
NET INCOME . . . . . . . . . . . . . . $ 635,044 $ 202,054
========== ==========
GENERAL PARTNER - NET INCOME . . . . . $ 129,872 $ 62,178
========== ==========
LIMITED PARTNERS - NET INCOME . . . . . $ 505,172 $ 139,876
========== ==========
NET INCOME per unit . . . . . . . . . . $ 12.07 $ 3.34
========== ==========
UNITS OUTSTANDING . . . . . . . . . . . 41,839 41,839
========== ==========
The accompanying notes are an integral part of
these combined financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
--------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . $635,044 $202,054
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . 253,205 466,359
Gain on sale of oil and gas
properties . . . . . . . . . . . . ( 1,515) ( 11,021)
(Increase) Decrease in accounts
receivable . . . . . . . . . . . . ( 147,355) 164,668
Decrease in accounts payable . . . ( 90,798) ( 140,006)
-------- --------
Net cash provided by operating
activities . . . . . . . . . . . . . $648,581 $682,054
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures . . . . . . . . $ - ($ 6,363)
Proceeds from sale of oil and gas
properties . . . . . . . . . . . . . 3,667 11,021
-------- --------
Net cash provided by investing
activities . . . . . . . . . . . . . $ 3,667 $ 4,658
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . ($750,934) ($528,000)
-------- --------
Net cash used by financing activities ($750,934) ($528,000)
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . . ($ 98,686) $158,712
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD . . . . . . . . . . . . . . 734,316 679,615
-------- --------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD . . . . . . . . . . . . . . . . $635,630 $838,327
======== ========
The accompanying notes are an integral part of
these combined financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1996 1995
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 191,844 $ 272,653
Accounts receivable:
Oil and gas sales, including $78,769
due from related parties in 1995
(Note 2) . . . . . . . . . . . . . 336,926 274,349
---------- ----------
Total current assets . . . . . . $ 528,770 $ 547,002
NET OIL AND GAS PROPERTIES, utilizing the
successful efforts method . . . . . . 1,956,720 2,038,534
DEFERRED CHARGE . . . . . . . . . . . . 538,858 538,858
---------- ----------
$3,024,348 $3,124,394
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . $ 37,657 $ 64,142
Gas imbalance payable . . . . . . . . 83,203 83,203
---------- ----------
Total current liabilities . . . . $ 120,860 $ 147,345
ACCRUED LIABILITY . . . . . . . . . . . $ 79,435 $ 79,435
PARTNERS' CAPITAL (DEFICIT):
General Partner . . . . . . . . . . . ($ 53,753) ($ 25,679)
Limited Partners, issued and outstanding,
14,321 units . . . . . . . . . . . 2,877,806 2,923,293
---------- ----------
Total Partners' capital . . . . . $2,824,053 $2,897,614
---------- ----------
$3,024,348 $3,124,394
========== ==========
The accompanying notes are an integral part of
these combined financial statements.
-14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
--------- ---------
REVENUES:
Oil and gas sales, including $122,188 of
sales to related parties in 1995
(Note 2) . . . . . . . . . . . . . . $505,356 $448,763
Interest and other income . . . . . . 1,909 2,602
Gain on sale of oil and gas properties - 6,086
-------- --------
$507,265 $457,451
COSTS AND EXPENSES:
Lease operating . . . . . . . . . . . $134,953 $166,275
Production tax . . . . . . . . . . . 31,325 28,883
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 82,023 162,094
General and administrative . . . . . 48,717 44,257
-------- --------
$297,018 $401,509
-------- --------
NET INCOME . . . . . . . . . . . . . . $210,247 $ 55,942
======== ========
GENERAL PARTNER - NET INCOME . . . . . $ 42,734 $ 20,183
======== ========
LIMITED PARTNERS - NET INCOME . . . . . $167,513 $ 35,759
======== ========
NET INCOME per unit . . . . . . . . . . $ 11.70 $ 2.50
======== ========
UNITS OUTSTANDING . . . . . . . . . . . 14,321 14,321
======== ========
The accompanying notes are an integral part of
these combined financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . $210,247 $ 55,942
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . 82,023 162,094
Gain on sale of oil and gas properties - ( 6,086)
(Increase) Decrease in accounts
receivable . . . . . . . . . . . . ( 62,577) 72,346
Decrease in accounts payable . . . ( 26,485) ( 37,424)
-------- --------
Net cash provided by operating
activities . . . . . . . . . . . . . $203,208 $246,872
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures . . . . . . . . ($ 209) ($ 4,601)
Proceeds from sale of oil and gas
properties . . . . . . . . . . . . . - 6,086
-------- --------
Net cash provided (used) by investing
activities . . . . . . . . . . . . ($ 209) $ 1,485
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . ($283,808) ($267,000)
-------- --------
Net cash used by financing activities ($283,808) ($267,000)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . . . ($ 80,809) ($ 18,643)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD . . . . . . . . . . . . . . . 272,653 305,618
-------- --------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD . . . . . . . . . . . . . . . . $191,844 $286,975
======== ========
The accompanying notes are an integral part of
these combined financial statements.
-16-
GEODYNE ENERGY INCOME I LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of March 31, 1996, combined
statements of operations for the three months ended March 31, 1996 and
1995 and combined statements of cash flows for the three months ended
March 31, 1996 and 1995 have been prepared by Geodyne Properties,
Inc., the general partner of the limited partnerships, and are
unaudited. Each limited partnership is a general partner in the
related Geodyne Energy Income Production Partnership in which Geodyne
Production Company serves as the managing partner. Unless the context
indicates otherwise, all references to a "Partnership" or the
"Partnerships" are references to the limited partnership and its
related production partnership, collectively, and all references to
the "General Partner" are references to the general partner of the
limited partnerships and the managing partner of the production
partnerships, collectively. In the opinion of management the
financial statements referred to above include all necessary
adjustments, consisting of normal recurring adjustments, to present
fairly the combined financial position at March 31, 1996, the combined
results of operations for the three months ended March 31, 1996 and
1995 and the combined cash flows for the three months ended March 31,
1996 and 1995.
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, 1995. The results of operations for
the period ended March 31, 1996 are not necessarily indicative of the
results to be expected for the full year.
The Limited Partners' net income or loss per unit is based upon
each $1,000 initial capital contribution.
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. The
acquisition costs to the Partnerships of properties acquired by the
General Partner are adjusted to reflect the net cash results of
operations, including interest incurred to finance the acquisition,
for the period of time the properties are held by the General Partner
prior to their transfer to the Partnerships. Leasehold impairment is
recognized based upon an individual property assessment and
exploratory experience. Upon discovery of commercial reserves,
leasehold costs are transferred to producing properties.
-17-
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.
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 difference
between asset cost and salvage value is charged to accumulated
depreciation.
Effective October 1, 1995, the Partnerships adopted the
requirements of Statement of Financial Accounting Standards ("SFAS")
No. 121, "Accounting for the Impairment of Long Lived Assets and
Assets Held for Disposal. SFAS No. 121 provides that if the
unamortized costs of oil and gas properties for each field exceed the
expected undiscounted future cash flows from such properties, the cost
of the properties is written down to fair value, which is determined
by using the discounted future cash flows from the properties. Under
the Partnerships' prior impairment policy if the net oil and gas
properties taken as a whole exceeded the estimated undiscounted future
net revenues of the properties, a valuation allowance would be
recorded for the excess amount. The risk that the Partnerships will
be required to record such impairment provisions in the future
increases when oil and gas prices are depressed.
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 March 31, 1996
the following payments were made to the General Partner or its
affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------ --------------
I-B $ 7,395 $ 11,313
I-C 5,540 23,505
I-D 4,582 19,986
I-E 25,825 116,220
I-F 8,937 39,780
An affiliated company is the operator of certain of the
Partnerships' properties and its policy is to bill the Partnerships
for all customary charges and cost reimbursements associated with its
activities, together with any compressor rental, consulting, or other
services provided.
During 1995, the Partnerships sold gas at market prices to
Premier Gas Company ("Premier") and Premier then resold such gas to
third parties at market prices. Premier was an affiliate of the
Partnerships until December 6, 1995. The following is a summary of
these sales during the three months ended March 31, 1995 and the
amount of the Partnerships' accrued oil and gas sales due from Premier
at December 31, 1995.
-18-
Gas Sales Accrued Oil and Gas Sales
----------------- ----------------------------
3 Months Ended As of
March 31, 1995 December 31, 1995
---------------- ------------------
I-B $ 16,773 $ 5,872
I-C 2,412 -
I-D 88,757 65,811
I-E 528,519 373,412
I-F 122,188 78,769
-19-
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
GENERAL
-------
The Partnerships were formed for the purpose of investing in
related production partnerships (the "Production Partnerships"). The
Production Partnerships are engaged in the business of acquiring and
operating producing oil and gas properties located in the continental
United States. In general, a Production Partnership acquired
producing properties and did not engage in development drilling or
enhanced recovery projects, except as an incidental part of the
management of the producing properties acquired. Therefore, the
economic life of each Partnership, and its related Production
Partnership, is limited to the period of time required to fully
produce its acquired oil and gas reserves. The net proceeds from the
oil and gas operations are distributed to the Limited Partners and the
General Partner in accordance with the terms of the Partnerships'
Partnership Agreements.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
The Partnerships began operations and investors were assigned
their rights as Limited Partners, having made capital contributions in
the amounts and on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------------------------- -----------------
I-B July 12, 1985 $11,957,700
I-C December 20, 1985 8,884,900
I-D March 4, 1986 7,194,700
I-E September 10, 1986 41,839,400
I-F December 16, 1986 14,320,900
In general, the amount of funds available for acquisition of
producing properties was equal to the capital contributions of the
Limited Partners, less 15% for sales commissions and organization and
management fees. All of the Partnerships have fully invested their
capital contributions.
Net proceeds from the operations less necessary operating capital
are distributed to the Limited Partners on a quarterly basis.
Revenues and net proceeds of a Partnership are largely dependent upon
the volumes of oil and gas sold and the prices received for such oil
and gas. Over the last several years, the domestic energy industry
and the Partnerships have contended with volatile, but generally low,
oil and gas prices. Over the last few years, the oil and gas market
appears to have moved from periods of relative stability in supply and
demand to excess supply or weakened demand. These trends have led to
the volatility in pricing and demand noted over the past years. While
the General Partner cannot predict future pricing trends, it believes
the working capital available as of March 31, 1996 and the net revenue
generated from future operations will provide sufficient working
capital to meet current and future obligations of the Partnerships.
-20-
RESULTS OF OPERATIONS
---------------------
An analysis of the change in net oil and gas operations (oil and
gas sales, less lease operating expenses and production taxes), is
presented in the tables within "Results of Operations". Generally,
the Partnerships' operations during the three months ended March 31,
1996 reflect an increase in total revenues compared to the same
periods in 1995. Management believes this increase generally resulted
from increases in the average oil and natural gas sales prices. Refer
to "Liquidity and Capital Resources" above for a discussion of factors
impacting prices and production volumes.
I-B PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1996 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1995.
Three months ended March 31,
---------------------------------
1996 1995
---- ----
Oil and gas sales $86,128 $103,375
Direct operating expenses $31,676 $ 49,697
Barrels produced 697 1,730
Mcf produced 35,677 44,271
Average price/Bbl $ 18.62 $ 16.40
Average price/Mcf $ 2.05 $ 1.69
Total oil and gas sales decreased 16.7% for the three months
ended March 31, 1996 as compared to the three months ended March 31,
1995. This decrease was due to decreases in the volumes of oil and
natural gas sold, partially offset by increases in the average prices
of oil and natural gas sold during the three months ended March 31,
1996 as compared to the three months ended March 31, 1995. Volumes of
oil and natural gas sold decreased 1,033 barrels and 8,594 Mcf,
respectively, for the three months ended March 31, 1996 as compared to
the three months ended March 31, 1995. The decrease in the volumes of
oil sold resulted primarily from one significant well being shut-in
during a portion of the three months ended March 31, 1996 in order to
increase the well's production capabilities. The decrease in the
volumes of natural gas sold resulted primarily from positive volume
adjustments made during the three months ended March 31, 1995 by a
purchaser related to gas sold in prior periods. Average oil and
natural gas prices increased to $18.62 per barrel and $2.05 per Mcf,
respectively, for the three months ended March 31, 1996 from $16.40
per barrel and $1.69 per Mcf, respectively, for the three months ended
March 31, 1995.
Direct operating expenses (lease operating expenses and
production taxes) decreased $18,021 for the three months ended March
31, 1996 as compared to the three months ended March 31, 1995. This
decrease was primarily due to abandonment expenses incurred during the
three months ended March 31, 1995 on two wells and higher general
repair and maintenance expenses incurred on another of the
Partnership's wells during the three months ended March 31, 1995. As
a percentage of oil and gas sales, these expenses decreased to 36.8%
for the three months ended March 31, 1996 from 48.1% for the three
months ended March 31, 1995. This percentage decrease was primarily
due to the dollar decrease in direct operating expenses as discussed
above and the increase in the average prices of oil and natural gas
-21-
sold during the three months ended March 31, 1996 as compared to the
three months ended March 31, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $75,798 for the three months ended March 31, 1996
as compared to the three months ended March 31, 1995. This decrease
was primarily due to a decrease in capitalized costs due to an
impairment provision recognized in the fourth quarter of 1995 and the
decreases in the volumes of oil and natural gas sold during the three
months ended March 31, 1996 as compared to the three months ended
March 31, 1995. As a percentage of oil and gas sales, this expense
decreased to 24.5% for the three months ended March 31, 1996 from
93.8% for the three months ended March 31, 1995. This percentage
decrease was primarily due to the dollar decrease related to the
impairment provision as discussed above and the increase in the
average prices of oil and natural gas sold during the three months
ended March 31, 1996 as compared to the three months ended March 31,
1995.
General and administrative expenses increased $5,504 for the
three months ended March 31, 1996 as compared to the three months
ended March 31, 1995. This increase was primarily due to an increase
in professional fees during the three months ended March 31, 1996 as
compared to the three months ended March 31, 1995. As a percentage of
oil and gas sales, these expenses increased to 21.7% for the three
months ended March 31, 1996 from 12.8% for the three months ended
March 31, 1995. This percentage increase was primarily a result of
the dollar increase in general and administrative expenses as
discussed above and the decrease in oil and gas sales during the three
months ended March 31, 1996 as compared to the three months ended
March 31, 1995.
The Limited Partners have received cash distributions through
March 31, 1996 totaling $6,374,527 or 53.31% of Limited Partners'
capital contributions.
I-C PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1996 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1995.
Three months ended March 31,
--------------------------------
1996 1995
---- ----
Oil and gas sales $265,339 $211,478
Direct operating expenses $ 60,662 $ 74,619
Barrels produced 7,948 7,114
Mcf produced 58,516 56,668
Average price/Bbl $ 17.95 $ 16.72
Average price/Mcf $ 2.10 $ 1.63
Total oil and gas sales increased 25.5% for the three months
ended March 31, 1996 as compared to the three months ended March 31,
1995. This increase was due to increases in both the volumes and
prices of oil and natural gas sold during the three months ended March
31, 1996 as compared to the three months ended March 31, 1995.
Volumes of oil and natural gas sold increased 834 barrels and 1,848
Mcf, respectively, for the three months ended March 31, 1996 as
compared to the three months ended March 31, 1995. Average oil and
natural gas prices increased to $17.95 per barrel and $2.10 per Mcf,
respectively, for the three months ended March 31, 1996 from $16.72
-22-
per barrel and $1.63 per Mcf, respectively, for the three months ended
March 31, 1995.
Direct operating expenses (lease operating expenses and
production taxes) decreased $13,957 for the three months ended March
31, 1996 as compared to the three months ended March 31, 1995. This
decrease was primarily due to workover expenses incurred on one well
during the three months ended March 31, 1995 in order to improve the
recovery of reserves. As a percentage of oil and gas sales, these
expenses decreased to 22.9% for the three months ended March 31, 1996
from 35.3% for the three months ended March 31, 1995. This percentage
decrease was primarily due to the dollar decrease in direct operating
expenses as discussed above and the increase in the average prices of
oil and natural gas sold during the three months ended March 31, 1996
as compared to the three months ended March 31, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $19,900 for the three months ended March 31, 1996
as compared to the three months ended March 31, 1995. This decrease
was primarily due to an upward revision in previous oil reserve
estimates at December 31, 1995 and a decrease in capitalized costs due
to an impairment provision recognized in the fourth quarter of 1995.
As a percentage of oil and gas sales, this expense decreased to 14.3%
for the three months ended March 31, 1996 from 27.4% for the three
months ended March 31, 1995. This percentage decrease was primarily
due to the dollar decrease in depreciation, depletion, and
amortization expenses as discussed above and the increases in the
average prices of oil and natural gas sold during the three months
ended March 31, 1996 as compared to the three months ended March 31,
1995.
General and administrative expenses increased $3,562 for the
three months ended March 31, 1996 as compared to the three months
ended March 31, 1995. This increase was primarily due to an increase
in professional fees during the three months ended March 31, 1996 as
compared to the three months ended March 31, 1995. As a percentage of
oil and gas sales, these expenses decreased to 10.9% for the three
months ended March 31, 1996 from 12.0% for the three months ended
March 31, 1995. This percentage decrease resulted primarily from the
increase in oil and natural gas sales during the three months ended
March 31, 1996 as compared to the three months ended March 31, 1995.
The Limited Partners have received cash distributions through
March 31, 1996 totaling $6,784,300 or 76.36% of Limited Partners'
capital contributions.
I-D PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1996 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1995.
Three months ended March 31,
--------------------------------
1996 1995
---- ----
Oil and gas sales $406,636 $302,642
Direct operating expenses $ 69,777 $ 60,786
Barrels produced 6,567 5,140
Mcf produced 136,105 147,300
Average price/Bbl $ 18.50 $ 16.61
Average price/Mcf $ 2.10 $ 1.47
-23-
Total oil and gas sales increased 34.4% for the three months
ended March 31, 1996 as compared to the three months ended March 31,
1995. This increase was due to an increase in the volumes of oil sold
and increases in the average prices of oil and natural gas sold,
partially offset by a decrease in volumes of natural gas sold during
the three months ended March 31, 1996 as compared to the three months
ended March 31, 1995. Volumes of oil sold increased 1,427 barrels,
while volumes of natural gas sold decreased 11,195 Mcf for the three
months ended March 31, 1996 as compared to the three months ended
March 31, 1995. The increase in the volumes of oil sold resulted
primarily from one significant well not producing at maximum capacity
during the three months ended March 31, 1995 due to state-imposed
allowable restrictions for the well. Average oil and natural gas
prices increased to $18.50 per barrel and $2.10 per Mcf, respectively,
for the three months ended March 31, 1996 from $16.61 per barrel and
$1.47 per Mcf, respectively, for the three months ended March 31,
1995.
Direct operating expenses (lease operating expenses and
production taxes) increased $8,991 for the three months ended March
31, 1996 as compared to the three months ended March 31, 1995. This
increase was primarily due to higher general repair and maintenance
expenses incurred during the three months ended March 31, 1996 as
compared to the three months ended March 31, 1995. As a percentage of
oil and gas sales, these expenses decreased to 17.2% for the three
months ended March 31, 1996 from 20.1% for the three months ended
March 31, 1995. This percentage decrease resulted primarily from the
increases in the average prices of oil and natural gas sold during the
three months ended March 31, 1996 as compared to the three months
ended March 31, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $21,808 for the three months ended March 31, 1996
as compared to the three months ended March 31, 1995. This decrease
was primarily due to upward revisions of previous oil and gas reserve
estimates at December 31, 1995 and a decrease in capitalized costs due
to an impairment provision recognized in the fourth quarter of 1995.
As a percentage of oil and gas sales, this expense decreased to 11.9%
for the three months ended March 31, 1996 from 23.3% for the three
months ended March 31, 1995. This percentage decrease was primarily
due to the dollar decrease in depreciation, depletion, and
amortization expenses as discussed above and the increases in the
average prices of oil and natural gas sold during the three months
ended March 31, 1996 as compared to the three months ended March 31,
1995.
General and administrative expenses increased $2,179 for the
three months ended March 31, 1996 as compared to the three months
ended March 31, 1995. This increase was primarily due to an increase
in professional fees during the three months ended March 31, 1996 as
compared to the three months ended March 31, 1995. As a percentage of
oil and gas sales, these expenses decreased to 6.0% for the three
months ended March 31, 1996 from 7.4% for the three months ended March
31, 1995. This percentage decrease resulted primarily from the
increase in oil and natural gas sales during the three months ended
March 31, 1996 as compared to the three months ended March 31, 1995.
The Limited Partners have received cash distributions through
March 31, 1996 totaling $10,974,175 or 152.53% of Limited Partners'
capital contributions.
-24-
I-E PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1996 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1995.
Three months ended March 31,
--------------------------------
1996 1995
---- ----
Oil and gas sales $1,405,408 $1,205,757
Direct operating expenses $ 382,185 $ 425,731
Barrels produced 19,933 22,972
Mcf produced 535,243 618,424
Average price/Bbl $ 18.42 $ 16.42
Average price/Mcf $ 1.94 $ 1.34
Total oil and gas sales increased 16.6% for the three months
ended March 31, 1996 as compared to the three months ended March 31,
1995. This increase was due to increases in the average prices of oil
and natural gas sold, partially offset by decreases in the volumes of
oil and natural gas sold during the three months ended March 31, 1996
as compared to the three months ended March 31, 1995. Volumes of oil
and natural gas sold decreased 3,039 barrels and 83,181 Mcf,
respectively, for the three months ended March 31, 1996 as compared to
the three months ended March 31, 1995. Average oil and natural gas
prices increased to $18.42 per barrel and $1.94 per Mcf, respectively,
for the three months ended March 31, 1996 from $16.42 per barrel and
$1.34 per Mcf, respectively, for the three months ended March 31,
1995.
Direct operating expenses (lease operating expenses and
production taxes) decreased $43,546 for the three months ended March
31, 1996 as compared to the three months ended March 31, 1995. This
decrease was primarily due to workover expenses incurred on two wells
during the three months ended March 31, 1995 in order to improve the
recovery of reserves and the decrease in the volumes of oil and
natural gas sold during the three months ended March 31, 1996 as
compared to the three months ended March 31, 1995. As a percentage of
oil and gas sales, this expense decreased to 27.2% for the three
months ended March 31, 1996 from 35.3% for the three months ended
March 31, 1995. This percentage decrease was primarily due to the
increases in the average prices of oil and natural gas sold during the
three months ended March 31, 1996 as compared to the three months
ended March 31, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $213,154 for the three months ended March 31,
1996 as compared to the three months ended March 31, 1995. This
decrease was primarily due to (i) the decrease in the volumes of
natural gas sold during the three months ended March 31, 1996 as
compared to the three months ended March 31, 1995, (ii) upward
revisions of previous oil and natural gas reserve estimates at
December 31, 1995 and (iii) a decrease in capitalized costs due to an
impairment provision recognized in the fourth quarter of 1995. As a
percentage of oil and gas sales, this expense decreased to 18.0% for
the three months ended March 31, 1996 from 38.7% for the three months
ended March 31, 1995. This percentage decrease was primarily due to
the upward reserve revisions and decrease in capitalized costs as
discussed above and the increases in the average prices of oil and
natural gas sold during the three months ended March 31, 1996 as
compared to the three months ended March 31, 1995.
-25-
General and administrative expenses increased $13,150 for the
three months ended March 31, 1996 as compared to the three months
ended March 31, 1995. This increase resulted primarily from an
increase in professional fees during the three months ended March 31,
1996 as compared to the three months ended March 31, 1995. As a
percentage of oil and gas sales, these expenses remained relatively
constant at 10.1% for the three months ended March 31, 1996 as
compared to 10.7% the three months ended March 31, 1995.
The Limited Partners have received cash distributions through
March 31, 1996 totaling $43,971,552 or 105.10% of Limited Partners'
capital contributions.
I-F PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1996 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1995.
Three months ended March 31,
--------------------------------
1996 1995
---- ----
Oil and gas sales $505,356 $448,763
Direct operating expenses $166,278 $195,158
Barrels produced 10,008 11,539
Mcf produced 154,861 185,363
Average price/Bbl $ 18.44 $ 16.41
Average price/Mcf $ 2.07 $ 1.40
Total oil and gas sales increased 12.6% for the three months
ended March 31, 1996 as compared to the three months ended March 31,
1995. This increase was due to increases in the average prices of oil
and natural gas sold, partially offset by decreases in the volumes of
oil and natural gas sold during the three months ended March 31, 1996
as compared to the three months ended March 31, 1995. Volumes of oil
and natural gas sold decreased 1,531 barrels and 30,502 Mcf,
respectively, for the three months ended March 31, 1996 as compared to
the three months ended March 31, 1995. The decrease in the volumes of
natural gas sold resulted primarily from positive volume adjustments
on two wells made during the three months ended March 31, 1995 by a
purchaser related to gas sold in prior periods. Average oil and
natural gas prices increased to $18.44 per barrel and $2.07 per Mcf,
respectively, for the three months ended March 31, 1996 from $16.41
per barrel and $1.40 per Mcf, respectively for the three months ended
March 31, 1995.
Direct operating expenses (lease operating expenses and
production taxes) decreased $28,880 for the three months ended March
31, 1996 as compared to the three months ended March 31, 1995. This
decrease was primarily due to workover expenses incurred on two wells
during the three months ended March 31, 1995 in order to improve the
recovery of reserves. As a percentage of oil and gas sales, these
expenses decreased to 32.9% for the three months ended March 31, 1996
from 43.5% for the three months ended March 31, 1995. This percentage
decrease was primarily due to the dollar decrease in direct operating
expenses as discussed above and the increases in the average prices of
oil and natural gas sold during the three months ended March 31, 1996
as compared to the three months ended March 31, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $80,071 for the three months ended March 31, 1996
as compared to the three months ended March 31, 1995. This decrease
-26-
was primarily due to the decrease in the volumes of natural gas sold
during the three months ended March 31, 1996 as compared to the three
months ended March 31, 1995 and upward revisions of previous oil and
natural gas reserve estimates at December 31, 1995. As a percentage
of oil and gas sales, this expense decreased to 16.2% for the three
months ended March 31, 1996 from 36.1% for the three months ended
March 31, 1995. This percentage decrease was primarily due to the
upward reserve revisions mentioned above and the increases in the
average prices of oil and natural gas sold during the three months
ended March 31, 1996 as compared to the three months ended March 31,
1995.
General and administrative expenses increased $4,460 for the
three months ended March 31, 1996 as compared to the three months
ended March 31, 1995. This increase resulted primarily from an
increase in professional fees for the three months ended March 31,
1996 as compared to the three months ended March 31, 1995. As a
percentage of oil and gas sales, these expenses remained relatively
constant at 9.6% for the three months ended March 31, 1996 as compared
to 9.9% the three months ended March 31, 1995.
The Limited Partners have received cash distributions through
March 31, 1996 totaling $14,841,664 or 103.64% of Limited Partners'
capital contributions.
-27-
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On November 23 and 25, 1994, Geodyne Resources, Inc. ("Geodyne
Resources"), PaineWebber Incorporated ("PaineWebber"), and certain
other parties were named as defendants in two related lawsuits
alleging misrepresentations made to induce investments in the
Partnerships' units of limited partnership interest ("Units") and
asserting causes of action for common law fraud and deceit and unjust
enrichment (Romine v. PaineWebber, Inc., et al. Case No. 94-CIV-8558,
U.S. District Court, Southern District of New York and Romine v.
PaineWebber, Inc. et al., Case No. 94-132844, Supreme Court of the
State of New York, County of New York). The federal court case was
later consolidated with other similar actions (to which Geodyne
Resources is not a party) under the title In Re: PaineWebber Limited
Partnerships Litigation and was certified as a class action on May 30,
1995 (the "PaineWebber Partnership Class Action"). A class action
notice was mailed on June 7, 1995 to all members of the class. The
PaineWebber Partnership Class Action also alleges violations of 18
U.S.C. Section 1962(c) and the Securities Exchange Act of 1934.
Compensatory and punitive damages, interest, and costs have been
requested in both matters. PaineWebber has agreed to indemnify
Geodyne Resources with respect to all claims asserted by the plaintiff
in the lawsuits pursuant to that certain Indemnification Agreement
dated November 24, 1992 by and between PaineWebber and Samson
Investment Company (the "Indemnification Agreement"). The amended
complaint in the PaineWebber Partnership Class Action no longer
asserts any claim directly against Geodyne Resources.
On January 18, 1996, PaineWebber issued a press release
indicating that it had reached an agreement to settle the pending
PaineWebber Partnership Class Action matter, along with a settlement
with the SEC and an agreement to settle with various state securities
regulators. The press release issued by PaineWebber indicates that
the parties have agreed to a class action settlement of $125 million
and other non-cash consideration; a SEC administrative order creating
a capped $40 million fund (the "Claims Fund"), which is to be
distributed to eligible limited partners by an independent
administrator (the "Claims Administrator"); a civil penalty of $5
million leveled by the SEC; and payments aggregating $5 million to
state securities administrators. The dollar amounts referred to in
the press release apply to both the Partnerships and other direct
investment programs sold by PaineWebber. As of the date of this
Annual Report, PaineWebber has not informed management of the
Partnerships of the portion of such settlement that would be
applicable to the Partnerships. In any event, such settlement is not
an obligation of either the Partnerships or the General Partner and,
accordingly, would not affect the financial statements of the
Partnerships. As a result of the Indemnification Agreement, Geodyne
Resources does not believe that it will be required to pay any damages
or expenses in this matter.
On April 17, 1996, PaineWebber mailed a Notice and Claim Form to
each limited partner who purchased Units in the Partnerships through
PaineWebber from January 1, 1986 to December 31, 1992. Limited
partners are not eligible to participate in the claims process if they
(i) previously reached a settlement with PaineWebber or (ii) had their
direct investment claim resolved by a court or in arbitration.
Participation in the claims process is optional, and does not prevent
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a limited partner from pursuing any other remedy against PaineWebber
that may be available. Limited partners have until October 22, 1996
to complete the claim form and return it to the Claims Administrator.
The determination of whether a limited partner is entitled to a
recovery under the Claims Fund will be based on whether or not the
Claim Administrator determines that the limited partner's investment
in the Partnerships was suitable for him at the time of purchase. In
addition, if the limited partner has opted out of the class action and
has not already settled with PaineWebber or has had a claim resolved
by a court or in arbitration, the Claims Administrator will also
consider allegations that misrepresentations were made in connection
with the sale of the Units.
To the knowledge of the General Partner, neither the General
Partner nor the Partnerships or their properties are subject to any
litigation, the results of which would have a material effect on the
Partnerships' or the General Partner's financial condition or
operations.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27.1 Financial Data Schedule containing summary financial
information extracted from the I-B Partnership's
financial statements as of March 31, 1996 and for the
three months ended March 31, 1996, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the I-C Partnership's
financial statements as of March 31, 1996 and for the
three months ended March 31, 1996, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the I-D Partnership's
financial statements as of March 31, 1996 and for the
three months ended March 31, 1996, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the I-E Partnership's
financial statements as of March 31, 1996 and for the
three months ended March 31, 1996, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the I-F Partnership's
financial statements as of March 31, 1996 and for the
three months ended March 31, 1996, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K:
1. A Current Report on Form 8-K dated January 18, 1996 was
filed with the Securities and Exchange Commission.
Items reported were:
Item 5. Other Events
Item 7. Exhibits
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2. A Current Report on Form 8-K dated January 22, 1996 was
filed with the Securities and Exchange Commission.
Items reported were:
Item 5: Other Events
Item 7: Exhibits
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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 I-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
(Registrant)
By: GEODYNE PROPERTIES, INC.
General Partner
Date: May 13, 1996 By: /s/Dennis R. Neill
--------------------------
(Signature)
Dennis R. Neill
Senior Vice President
and Director
Date: May 13, 1996 By: /s/Drew S. Phillips
---------------------------
(Signature)
Drew S. Phillips
Vice President - Controller
Principal Accounting Officer
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INDEX TO EXHIBITS
-----------------
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership I-B's financial statements as of March 31, 1996
and for the three months ended March 31, 1996, filed
herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership I-C's financial statements as of March 31, 1996
and for the three months ended March 31, 1996, filed
herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership I-D's financial statements as of March 31, 1996
and for the three months ended March 31, 1996, filed
herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership I-E's financial statements as of March 31, 1996
and for the three months ended March 31, 1996, filed
herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership I-F's financial statements as of March 31, 1996
and for the three months ended March 31, 1996, filed
herewith.
All other exhibits are omitted as inapplicable.