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, 1998
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
--------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
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 Identification
of incorporation or Number)
organization)
Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(918) 583-1791
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
------ ------
1
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-B
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-B
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1998 1997
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 36,333 $ 77,028
Accounts receivable:
Oil and gas sales 41,630 53,389
-------- --------
Total current assets $ 77,963 $130,417
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 316,725 327,137
DEFERRED CHARGE 99,262 99,262
-------- --------
$493,950 $556,816
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 10,670 $ 9,366
Gas imbalance payable 3,116 3,116
-------- --------
Total current liabilities $ 13,786 $ 12,482
ACCRUED LIABILITY $ 22,520 $ 22,520
PARTNERS' CAPITAL (DEFICIT):
General Partner ($104,531) ($103,542)
Limited Partners, issued and
outstanding, 11,958 units 562,175 625,356
-------- --------
Total Partners' capital $457,644 $521,814
-------- --------
$493,950 $556,816
======== ========
The accompanying condensed 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, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
REVENUES:
Oil and gas sales $60,872 $82,442
Interest income 522 94
------- -------
$61,394 $82,536
COST AND EXPENSES:
Lease operating $15,821 $18,295
Production tax 3,322 5,482
Depreciation, depletion, and
amortization of oil and gas
properties 10,412 12,926
Impairment provision - 19,726
General and administrative
(Note 2) 21,092 18,704
------- -------
$50,647 $75,133
------- -------
NET INCOME $10,747 $ 7,403
======= =======
GENERAL PARTNER - NET INCOME $ 928 $ 1,672
======= =======
LIMITED PARTNERS - NET INCOME $ 9,819 $ 5,731
======= =======
NET INCOME per unit $ .82 $ .48
======= =======
UNITS OUTSTANDING 11,958 11,958
======= =======
The accompanying condensed 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, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $10,747 $ 7,403
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 10,412 12,926
Impairment provision - 19,726
Decrease in accounts receivable -
oil and gas sales 11,759 18,152
Increase (decrease) in accounts
payable 1,304 ( 8,568)
------- -------
Net cash provided by operating
activities $34,222 $49,639
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ - ($ 2,223)
------- -------
Net cash used by investing activities $ - ($ 2,223)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($74,917) ($12,537)
------- -------
Net cash used by financing activities ($74,917) ($12,537)
------- -------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($40,695) $34,879
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 77,028 13,805
------- -------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $36,333 $48,684
======= =======
The accompanying condensed 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,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $109,025 $141,699
Accounts receivable:
Oil and gas sales 117,674 130,355
-------- --------
Total current assets $226,699 $272,054
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 327,356 334,734
DEFERRED CHARGE 110,943 110,943
-------- --------
$664,998 $717,731
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 24,602 $ 22,321
-------- --------
Total current liabilities $ 24,602 $ 22,321
ACCRUED LIABILITY $ 18,103 $ 18,103
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 90,652) ($ 89,189)
Limited Partners, issued and
outstanding, 8,885 units 712,945 766,496
-------- --------
Total Partners' capital $622,293 $677,307
-------- --------
$664,998 $717,731
======== ========
The accompanying condensed 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, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $186,396 $265,567
Interest income 1,287 1,530
Gain on sale of oil and
gas properties - 545
-------- --------
$187,683 $267,642
COST AND EXPENSES:
Lease operating $ 47,061 $ 41,015
Production tax 10,337 15,651
Depreciation, depletion, and
amortization of oil and gas
properties 7,378 12,556
Impairment provision - 4,679
General and administrative
(Note 2) 30,612 28,991
-------- --------
$ 95,388 $102,892
-------- --------
NET INCOME $ 92,295 $164,750
======== ========
GENERAL PARTNER - NET INCOME $ 4,846 $ 8,850
======== ========
LIMITED PARTNERS - NET INCOME $ 87,449 $155,900
======== ========
NET INCOME per unit $ 9.84 $ 17.55
======== ========
UNITS OUTSTANDING 8,885 8,885
======== ========
The accompanying condensed 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, 1998 AND 1997
(Unaudited)
1998 1997
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 92,295 $164,750
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 7,378 12,556
Impairment provision - 4,679
Gain on sale of oil and gas
properties - ( 545)
Decrease in accounts receivable -
oil and gas sales 12,681 16,101
Decrease in accounts receivable -
General Partner - 13,922
Increase (decrease) in accounts
payable 2,281 ( 3,454)
-------- --------
Net cash provided by operating
activities $114,635 $208,009
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ - ($ 10)
Proceeds from sale of oil and
gas properties - 1,000
-------- --------
Net cash provided by investing
activities $ - $ 990
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($147,309) ($228,995)
-------- --------
Net cash used by financing activities ($147,309) ($228,995)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 32,674) ($ 19,996)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 141,699 218,437
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $109,025 $198,441
======== ========
The accompanying condensed 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,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 245,300 $ 274,109
Accounts receivable:
Oil and gas sales 203,175 256,001
General Partner (Note 2) 155,421 -
---------- ----------
Total current assets $ 603,896 $ 530,110
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 697,992 714,156
DEFERRED CHARGE 104,793 104,793
---------- ----------
$1,406,681 $1,349,059
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 13,023 $ 31,310
Gas imbalance payable 39,971 39,971
---------- ----------
Total current liabilities $ 52,994 $ 71,281
ACCRUED LIABILITY $ 14,345 $ 14,345
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 10,761) ($ 27,560)
Limited Partners, issued and
outstanding, 7,195 units 1,350,103 1,290,993
---------- ----------
Total Partners' capital $1,339,342 $1,263,433
---------- ----------
$1,406,681 $1,349,059
========== ==========
The accompanying condensed 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, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
REVENUES:
Oil and gas sales $293,660 $472,917
Interest income 2,781 2,644
Gain on sale of oil and
gas properties 147,050 -
-------- --------
$443,491 $475,561
COST AND EXPENSES:
Lease operating $ 30,942 $ 29,241
Production tax 17,938 30,898
Depreciation, depletion, and
amortization of oil and gas
properties 15,885 31,713
Impairment provision - 61,790
General and administrative
(Note 2) 25,883 24,487
-------- --------
$ 90,648 $178,129
-------- --------
NET INCOME $352,843 $297,432
======== ========
GENERAL PARTNER - NET INCOME $ 54,733 $ 57,309
======== ========
LIMITED PARTNERS - NET INCOME $298,110 $240,123
======== ========
NET INCOME per unit $ 41.43 $ 33.37
======== ========
UNITS OUTSTANDING 7,195 7,195
======== ========
The accompanying condensed 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, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $352,843 $297,432
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 15,885 31,713
Impairment provision - 61,790
Gain on sale of oil and gas
properties ( 147,050) -
Decrease in accounts receivable -
oil and gas sales 52,826 71,855
Increase in accounts receivable -
General Partner ( 155,421) ( 395)
Decrease in accounts payable ( 18,287) ( 3,228)
-------- --------
Net cash provided by operating
activities $100,796 $459,167
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 11,572) $ -
Proceeds from sale of oil and
gas properties 158,901 427
-------- --------
Net cash provided by investing
activities $147,329 $ 427
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($276,934) ($381,353)
-------- --------
Net cash used by financing activities ($276,934) ($381,353)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 28,809) $ 78,241
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 274,109 344,951
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $245,300 $423,192
======== ========
The accompanying condensed 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,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 830,726 $ 827,775
Accounts receivable:
Oil and gas sales 683,048 994,354
General Partner (Note 2) 750,910 -
Other - 69,917
---------- ----------
Total current assets $2,264,684 $1,892,046
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 4,605,427 4,844,378
DEFERRED CHARGE 750,369 750,369
---------- ----------
$7,620,480 $7,486,793
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 87,740 $ 257,524
Gas imbalance payable 135,884 135,884
---------- ----------
Total current liabilities $ 223,624 $ 393,408
ACCRUED LIABILITY $ 138,356 $ 138,356
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 167,615) ($ 228,434)
Limited Partners, issued and
outstanding, 41,839 units 7,426,115 7,183,463
---------- ----------
Total Partners' capital $7,258,500 $6,955,029
---------- ----------
$7,620,480 $7,486,793
========== ==========
The accompanying condensed 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, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $1,065,375 $1,751,749
Interest income 9,379 7,879
Gain on sale of oil and
gas properties 659,596 -
---------- ----------
$1,734,350 $1,759,628
COST AND EXPENSES:
Lease operating $ 214,854 $ 258,330
Production tax 74,110 121,024
Depreciation, depletion, and
amortization of oil and gas
properties 153,008 197,693
Impairment provision - 291,690
General and administrative
(Note 2) 150,418 142,338
---------- ----------
$ 592,390 $1,011,075
---------- ----------
NET INCOME $1,141,960 $ 748,553
========== ==========
GENERAL PARTNER - NET INCOME $ 191,308 $ 179,615
========== ==========
LIMITED PARTNERS - NET INCOME $ 950,652 $ 568,938
========== ==========
NET INCOME per unit $ 22.72 $ 13.60
========== ==========
UNITS OUTSTANDING 41,839 41,839
========== ==========
The accompanying condensed 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, 1998 AND 1997
(Unaudited)
1998 1997
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,141,960 $ 748,553
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 153,008 197,693
Impairment provision - 291,690
Gain on sale of oil and gas
properties ( 659,596) -
Decrease in accounts receivable -
oil and gas sales 311,306 373,895
Increase in accounts receivable -
General Partner ( 750,910) ( 1,270)
Decrease in accounts receivable -
other 69,917 -
Decrease in accounts payable ( 169,784) ( 20,979)
---------- ----------
Net cash provided by operating
activities $ 95,901 $1,589,582
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 18,386) ($ 45,188)
Proceeds from sale of oil and
gas properties 763,925 1,332
---------- ----------
Net cash provided (used) by
investing activities $ 745,539 ($ 43,856)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 838,489) ($1,019,302)
---------- ----------
Net cash used by financing activities ($ 838,489) ($1,019,302)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 2,951 $ 526,424
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 827,775 894,887
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 830,726 $1,421,311
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
13
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 291,873 $ 251,220
Accounts receivable:
Oil and gas sales 229,782 307,734
General Partner (Note 2) 339,222 -
Other - 48,942
---------- ----------
Total current assets $ 860,877 $ 607,896
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,370,133 1,457,908
DEFERRED CHARGE 501,016 501,016
---------- ----------
$2,732,026 $2,566,820
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 37,555 $ 53,205
Gas imbalance payable 47,046 47,046
---------- ----------
Total current liabilities $ 84,601 $ 100,251
ACCRUED LIABILITY $ 116,401 $ 116,401
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 33,660) ($ 59,811)
Limited Partners, issued and
outstanding, 14,321 units 2,564,684 2,409,979
---------- ----------
Total Partners' capital $2,531,024 $2,350,168
---------- ----------
$2,732,026 $2,566,820
========== ==========
The accompanying condensed 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, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $366,302 $600,350
Interest income 3,174 2,877
Gain on sale of oil and
gas properties 287,759 -
-------- --------
$657,235 $603,227
COST AND EXPENSES:
Lease operating $ 97,236 $128,475
Production tax 23,674 39,807
Depreciation, depletion, and
amortization of oil and gas
properties 48,379 63,311
Impairment provision - 114,631
General and administrative
(Note 2) 51,473 48,711
-------- --------
$220,762 $394,935
-------- --------
NET INCOME $436,473 $208,292
======== ========
GENERAL PARTNER - NET INCOME $ 71,768 $ 55,724
======== ========
LIMITED PARTNERS - NET INCOME $364,705 $152,568
======== ========
NET INCOME per unit $ 25.47 $ 10.65
======== ========
UNITS OUTSTANDING 14,321 14,321
======== ========
The accompanying condensed 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, 1998 AND 1997
(Unaudited)
1998 1997
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $436,473 $208,292
Adjustments to reconcile net income
to net cash provided (used) by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 48,379 63,311
Impairment provision - 114,631
Gain on sale of oil and gas
properties ( 287,759) -
Decrease in accounts receivable -
oil and gas sales 77,952 134,288
Increase in accounts receivable -
General Partner ( 339,222) ( 437)
Decrease in accounts receivable -
other 48,942 -
Decrease in accounts payable ( 15,650) ( 2,977)
-------- --------
Net cash provided (used) by operating
activities ($ 30,885) $517,108
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 17,334) ($ 14,221)
Proceeds from sale of oil and
gas properties 344,489 437
-------- --------
Net cash provided (used) by
investing activities $327,155 ($ 13,784)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($255,617) ($364,827)
-------- --------
Net cash used by financing activities ($255,617) ($364,827)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 40,653 $138,497
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 251,220 339,064
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $291,873 $477,561
======== ========
The accompanying condensed 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, 1998
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of March 31, 1998, combined statements of
operations for the three months ended March 31, 1998 and 1997, and
combined statements of cash flows for the three months ended March 31,
1998 and 1997 have been prepared by Geodyne Resources, Inc., the General
Partner of the limited partnerships, without audit. Each limited
partnership is a general partner in the related Geodyne Energy Income
Production Partnership in which Geodyne Resources, Inc. serves as the
managing partner. Unless the context indicates otherwise, all references
to a "Partnership" or the "Partnerships" are references to the limited
partnership and its related production partnership, collectively, and all
references to the "General Partner" are references to the general partner
of the limited partnerships and the managing partner of the production
partnerships, collectively. In the opinion of management the financial
statements referred to above include all necessary adjustments, consisting
of normal recurring adjustments, to present fairly the combined financial
position at March 31, 1998, the combined results of operations for the
three months ended March 31, 1998 and 1997, and the combined cash flows
for the three months ended March 31, 1998 and 1997.
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, 1997. The
results of operations for the period ended March 31, 1998 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.
17
OIL AND GAS PROPERTIES
----------------------
The Partnerships follow the successful efforts method of accounting for
their oil and gas properties. Under the successful efforts method, the
Partnerships capitalize all property acquisition costs and development
costs incurred in connection with the further development of oil and gas
reserves. Property acquisition costs include costs incurred by the
Partnerships or the General Partner to acquire producing properties,
including related title insurance or examination costs, commissions,
engineering, legal and accounting fees, and similar costs directly related
to the acquisitions, plus an allocated portion, of the General Partner's
property screening costs. The acquisition cost to the Partnerships of
properties acquired by the General Partner is adjusted to reflect the net
cash results of operations, including interest incurred to finance the
acquisition, for the period of time the properties are held by the General
Partner prior to their transfer to the Partnerships. During the three
months ended March 31, 1998 capital expenditures incurred by the I-D, I-E,
and I-F Partnerships totaled $11,572, $18,386, and $17,334, respectively.
These expenditures resulted primarily from a recompletion attempt of the
White Farms A No. 4 well located in Canadian County, Oklahoma. The I-D,
I-E, and I-F Partnerships have a 4.4%, 15.9%, and 6.3% interest,
respectively, in the White Farms A No. 4 well. 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 difference between asset cost and
salvage value is charged to accumulated depreciation.
18
Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting
for the Impairment of Long Lived Assets and Assets Held for Disposal",
requires successful efforts companies, like the Partnerships, to evaluate
the recoverability of the carrying costs of their proved oil and gas
properties at the lowest level for which there are identifiable cash flows
that are largely independent of the cash flows of other groups of oil and
gas properties. With respect to the Partnerships' oil and gas properties,
this evaluation was performed for each field. 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. The
Partnerships recorded a non-cash charge against earnings (impairment
provision) during the three months ended March 31, 1997 pursuant to SFAS
No. 121 as follows:
Partnership Amount
----------- -----------
I-B $ 19,726
I-C 4,679
I-D 61,790
I-E 291,690
I-F 114,631
No such charge was recorded in the three months ended March 31, 1998. 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, 1998 the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
I-B $ 9,779 $ 11,313
I-C 7,230 23,382
I-D 5,897 19,986
I-E 34,198 116,220
I-F 11,693 39,780
19
Affiliates of the Partnerships operate certain of the Partnerships'
properties and their policy is to bill the Partnerships for all customary
charges and cost reimbursements associated with their activities.
The receivables from the General Partner at March 31, 1998 for the I-D,
I-E and I-F Partnerships represent proceeds due to such Partnerships from
the sale of oil and gas properties to third parties during the first
quarter of 1998. Subsequent to March 31, 1998, such receivables were
collected by the I-D, I-E and I-F Partnerships.
20
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 Program.
Use of forward-looking statements and estimates and assumptions involve
risks and uncertainties which include, but are not limited to, the
volatility of oil and gas prices, the uncertainty of reserve information,
the operating risk associated with oil and gas properties (including the
risk of personal injury, death, property damage, damage to the well or
producing reservoir, environmental contamination, and other operating
risks), the prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the general
economic climate, the supply and price of foreign imports of oil and gas,
the level of consumer product demand, and the price and availability of
alternative fuels. Should one or more of these risks or uncertainties
occur or should estimates or underlying assumptions prove incorrect,
actual conditions or results may vary materially and adversely from those
stated, anticipated, believed, estimated, and otherwise indicated.
GENERAL
- -------
The Partnerships are engaged in the business of acquiring and operating
producing oil and gas properties located in the continental United States.
In general, a Partnership acquired producing properties and did not engage
in development drilling or enhanced recovery projects, except as an
incidental part of the management of the producing properties acquired.
Therefore, the economic life of each Partnership, and its related
Production Partnership, is limited to the period of time required to fully
produce its acquired oil and gas reserves. The net proceeds from the oil
and gas operations are distributed to the Limited Partners and the General
Partner in accordance with the terms of the Partnerships' partnership
agreements.
21
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. While the
General Partner cannot predict future pricing trends, it believes the
working capital available as of March 31, 1998 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
The I-B Partnership's first quarter 1998 cash distribution includes
proceeds from the sale of oil and gas properties to third parties during
the fourth quarter of 1997.
The I-D, I-E and I-F Partnerships' Statements of Cash Flows for the first
quarter of 1998 include proceeds from the sale of oil and gas properties
during the three months ended March 31, 1998. These proceeds will be
reflected, as applicable, in the I-D, I-E and I-F Partnerships' cash
distributions, if any, to be paid in May 1998. It is possible that the
I-D, I-E and I-F Partnerships' repurchase values and future cash
distributions could decline as a result of the disposition of these
properties. On the other hand, the General Partner believes there will be
beneficial operating efficiencies related to the I-D, I-E and I-F
Partnerships' remaining properties. This is primarily due to the fact that
the properties sold generally bore a higher
22
ratio of operating expenses as compared to reserves than the I-D, I-E and
I-F Partnerships' remaining properties.
The Partnerships will terminate on December 31, 1999 in accordance with
their partnership agreements. 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 not determined whether to extend the term of any
Partnership.
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
variable affecting the Partnerships' revenues is the prices received for
the sale of oil and gas. Predicting future prices is very difficult.
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. In addition, such spot market sales are generally short-term
in nature and are dependent upon the obtaining of transportation services
provided by pipelines. Management is unable to predict whether future oil
and gas prices will (i) stabilize, (ii) increase, or (iii) decrease.
I-B PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1998 AS COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 1997.
Three Months Ended March 31,
----------------------------
1998 1997
-------- -------
Oil and gas sales $ 60,872 $82,442
Oil and gas production expenses $ 19,143 $23,777
Barrels produced 471 586
Mcf produced 24,338 30,953
Average price/Bbl $ 14.31 $ 21.07
Average price/Mcf $ 2.22 $ 2.26
As shown in the table above, total oil and gas sales decreased $21,570
(26.2%) for the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997. Of this decrease, approximately $2,000 and
$15,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $3,000 and $1,000,
23
respectively, were related to decreases in the average prices of oil and
gas sold. Volumes of oil and gas sold decreased 115 barrels and 6,615 Mcf,
respectively, for the three months ended March 31, 1998 as compared to the
three months ended March 31, 1997. The decrease in volumes of oil sold
resulted primarily from the sale of one significant well during 1997. The
decrease in volumes of gas sold resulted primarily from (i) the sale of
one significant well during 1997 and (ii) positive prior period volume
adjustments made by the purchaser on several wells during the three months
ended March 31, 1997. Average oil and gas prices decreased to $14.31 per
barrel and $2.22 per Mcf, respectively, for the three months ended March
31, 1998 from $21.07 per barrel and $2.26 per Mcf, respectively, for the
three months ended March 31, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $4,634 (19.5%) for the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. This
decrease resulted primarily from (i) a decrease in production taxes
associated with the decrease in oil and gas sales discussed above and (ii)
the decreases in volumes of oil and gas sold during the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. As a
percentage of oil and gas sales, these expenses increased to 31.4% for the
three months ended March 31, 1998 from 28.8% for the three months ended
March 31, 1997. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold during the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $2,514 (19.4%) for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997. This decrease resulted
primarily from the decreases in volumes of oil and gas sold during the
three months ended March 31, 1998 as compared to the three months ended
March 31, 1997. As a percentage of oil and gas sales, this expense
remained relatively constant at 17.1% for the three months ended March 31,
1998 and 15.7% for the three months ended March 31, 1997.
The I-B Partnership recognized a non-cash charge against earnings of
$19,726 during the three months ended March 31, 1997. Of this amount,
$17,233 was related to a decline in oil and gas prices used to determine
the recoverability of proved oil and gas reserves at March 31, 1997 and
$2,493 was related to the writing off of unproved properties. These
unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the I-B Partnership's partnership agreement which limit
24
the level of permissible drilling activity. No similar charge was
necessary during the three months ended March 31, 1998.
General and administrative expenses increased $2,388 (12.8%) for the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997. This increase resulted primarily from an increase in
professional fees during the three months ended March 31, 1998 as compared
to the three months ended March 31, 1997. As a percentage of oil and gas
sales, these expenses increased to 34.6% for the three months ended March
31, 1998 from 22.7% for the three months ended March 31, 1997. This
percentage increase was primarily due to the decrease in oil and gas sales
discussed above.
The Limited Partners have received cash distributions through March 31,
1998 totaling $6,617,527 or 55.34% of Limited Partners' capital
contributions.
I-C PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1998 AS COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 1997.
Three Months Ended March 31,
----------------------------
1998 1997
-------- --------
Oil and gas sales $186,396 $265,567
Oil and gas production expenses $ 57,398 $ 56,666
Barrels produced 4,239 5,934
Mcf produced 40,637 49,040
Average price/Bbl $ 13.20 $ 20.97
Average price/Mcf $ 3.21 $ 2.88
As shown in the table above, total oil and gas sales decreased $79,171
(29.8%) for the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997. Of this decrease, approximately $36,000 and
$24,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $33,000 was related to a decrease in the average
price of oil sold, which amounts were partially offset by an increase of
approximately $13,000 related to an increase in the average price of gas
sold. Volumes of oil and gas sold decreased 1,695 barrels and 8,403 Mcf,
respectively, for the three months ended March 31, 1998 as compared to the
three months ended March 31, 1997. The decrease in volumes of oil sold
resulted primarily from (i) the sale of one significant well during 1997
and (ii) the decline in production on one significant well during the
three months ended March 31, 1998. The decrease in volumes of gas sold
resulted primarily from the decline in production on one significant well
during the
25
three months ended March 31, 1998. Average oil prices decreased to $13.20
per barrel for the three months ended March 31, 1998 from $20.97 per
barrel for the three months ended March 31, 1997. Average gas prices
increased to $3.21 per Mcf for the three months ended March 31, 1998 from
$2.88 per Mcf for the three months ended March 31, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $732 (1.3%) for the three months ended March
31, 1998 as compared to the three months ended March 31, 1997. As a
percentage of oil and gas sales, these expenses increased to 30.8% for the
three months ended March 31, 1998 from 21.3% for the three months ended
March 31, 1997. This percentage increase was primarily due to the decrease
in the average price of oil sold during the three months ended March 31,
1998 as compared to the three months ended March 31, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $5,178 (41.2%) for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997. This decrease resulted
primarily from (i) the decreases in volumes of oil and gas sold during the
three months ended March 31, 1998 as compared to the three months ended
March 31, 1997 and (ii) upward revisions in the estimates of remaining gas
reserves at December 31, 1997. As a percentage of oil and gas sales, this
expense remained relatively constant at 4.0% for the three months ended
March 31, 1998 and 4.7% for the three months ended March 31, 1997.
The I-C Partnership recognized a non-cash charge against earnings of
$4,679 during the three months ended March 31, 1997 primarily related to a
decline in oil and gas prices used to determine the recoverability of
proved oil and gas reserves at March 31, 1997. No similar charge was
necessary during the three months ended March 31, 1998.
General and administrative expenses increased $1,621 (5.6%) for the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997. As a percentage of oil and gas sales, these expenses increased
to 16.4% for the three months ended March 31, 1998 from 10.9% for the
three months ended March 31, 1997. This percentage increase was primarily
due to the decrease in oil and gas sales discussed above.
The Limited Partners have received cash distributions through March 31,
1998 totaling $8,022,300 or 90.29% of Limited Partners' capital
contributions.
26
I-D PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1998 AS COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 1997.
Three Months Ended March 31,
----------------------------
1998 1997
-------- --------
Oil and gas sales $293,660 $472,917
Oil and gas production expenses $ 48,880 $ 60,139
Barrels produced 3,420 4,819
Mcf produced 110,042 133,717
Average price/Bbl $ 14.33 $ 22.71
Average price/Mcf $ 2.22 $ 2.72
As shown in the table above, total oil and gas sales decreased $179,257
(37.9%) for the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997. Of this decrease, approximately $32,000 and
$64,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $29,000 and $55,000, respectively, were related to
decreases in the average prices of oil and gas sold. Volumes of oil and
gas sold decreased 1,399 barrels and 23,675 Mcf, respectively, for the
three months ended March 31, 1998 as compared to the three months ended
March 31, 1997. The decrease in volumes of oil sold resulted primarily
from the decline in production on one significant well during the three
months ended March 31, 1998. The decrease in volumes of gas sold resulted
primarily from (i) the decline in production on one significant well
during the three months ended March 31, 1998 and (ii) a positive prior
period volume adjustment made by the purchaser on one significant well
during the three months ended March 31, 1997. Average oil and gas prices
decreased to $14.33 per barrel and $2.22 per Mcf, respectively, for the
three months ended March 31, 1998 from $22.71 per barrel and $2.72 per
Mcf, respectively, for the three months ended March 31, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $11,259 (18.7%) for the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. This
decrease resulted primarily from a decrease in production taxes associated
with the decrease in oil and gas sales discussed above. As a percentage of
oil and gas sales, these expenses increased to 16.6% for the three months
ended March 31, 1998 from 12.7% for the three months ended March 31, 1997.
This percentage increase was primarily due to the decreases in the average
prices of oil and gas sold during the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997.
27
Depreciation, depletion, and amortization of oil and gas properties
decreased $15,828 (49.9%) for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997. This decrease resulted
primarily from (i) the decreases in volumes of oil and gas sold during the
three months ended March 31, 1998 as compared to the three months ended
March 31, 1997 and (ii) upward revisions in the estimates of remaining oil
and gas reserves at December 31, 1997. As a percentage of oil and gas
sales, this expense decreased to 5.4% for the three months ended March 31,
1998 from to 6.7% for the three months ended March 31, 1997. This
percentage decrease resulted primarily from the dollar decrease in
depreciation, depletion, and amortization discussed above.
The I-D Partnership recognized a non-cash charge against earnings of
$61,790 during the three months ended March 31, 1997. Of this amount,
$12,290 was related to a decline in oil and gas prices used to determine
the recoverability of proved oil and gas reserves at March 31, 1997 and
$49,500 was related to the writing off of unproved properties. These
unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the I-D Partnership's partnership agreement which limit
the level of permissible drilling activity. No similar charge was
necessary during the three months ended March 31, 1998.
General and administrative expenses increased $1,396 (5.7%) for the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997. As a percentage of oil and gas sales, these expenses increased
to 8.8% for the three months ended March 31, 1998 from 5.2% for the three
months ended March 31, 1997. This percentage increase was primarily due to
the decrease in oil and gas sales discussed above.
The Limited Partners have received cash distributions through March 31,
1998 totaling $13,153,175 or 182.82% of Limited Partners' capital
contributions.
28
I-E PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1998 AS COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 1997.
Three Months Ended March 31,
----------------------------
1998 1997
---------- ----------
Oil and gas sales $1,065,375 $1,751,749
Oil and gas production expenses $ 288,964 $ 379,354
Barrels produced 15,983 18,942
Mcf produced 422,711 510,642
Average price/Bbl $ 14.95 $ 23.01
Average price/Mcf $ 1.95 $ 2.58
As shown in the table above, total oil and gas sales decreased $686,374
(39.2%) for the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997. Of this decrease, approximately $68,000 and
$226,000, respectively, were related to decreases in volumes of oil and
gas sold and approximately $129,000 and $263,000, respectively, were
related to decreases in the average prices of oil and gas sold. Volumes of
oil and gas sold decreased 2,959 barrels and 87,871 Mcf, respectively, for
the three months ended March 31, 1998 as compared to the three months
ended March 31, 1997. The decrease in volumes of oil sold resulted
primarily from declines in production on two significant wells during the
three months ended March 31, 1998. The decrease in volumes of gas sold
resulted primarily from positive prior period volume adjustments made by
the purchaser on two significant wells during the three months ended March
31, 1997. Average oil and gas prices decreased to $14.95 per barrel and
$1.95 per Mcf, respectively, for the three months ended March 31, 1998
from $23.01 per barrel and $2.58 per Mcf, respectively, for the three
months ended March 31, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $90,390 (23.8%) for the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. This
decrease resulted primarily from (i) the decreases in volumes of oil and
gas sold during the three months ended March 31, 1998 as compared to the
three months ended March 31, 1997 and (ii) a decrease in production taxes
associated with the decrease in oil and gas sales discussed above. As a
percentage of oil and gas sales, these expenses increased to 27.1% for the
three months ended March 31, 1998 from 21.7% for the three months ended
March 31, 1997. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold during the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997.
29
Depreciation, depletion, and amortization of oil and gas properties
decreased $44,685 (22.6%) for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997. This decrease resulted
primarily from (i) the decreases in volumes of oil and gas sold during the
three months ended March 31, 1998 as compared to the three months ended
March 31, 1997 and (ii) upward revisions in the estimates of remaining gas
reserves at December 31, 1997. As a percentage of oil and gas sales, this
expense increased to 14.4% for the three months ended March 31, 1998 from
11.3% for the three months ended March 31, 1997. This percentage increase
was primarily due to the decreases in the average prices of oil and gas
sold during the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997.
The I-E Partnership recognized a non-cash charge against earnings of
$291,690 during the three months ended March 31, 1997. Of this amount,
$59,728 was related to a decline in oil and gas prices used to determine
the recoverability of proved oil and gas reserves at March 31, 1997 and
$231,962 was related to the writing off of unproved properties. These
unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the I-E Partnership's partnership agreement which limit
the level of permissible drilling activity. No similar charge was
necessary during the three months ended March 31, 1998.
General and administrative expenses increased $8,080 (5.7%) for the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997. As a percentage of oil and gas sales, these expenses increased
to 14.1% for the three months ended March 31, 1998 from 8.1% for the three
months ended March 31, 1997. This percentage increase was primarily due to
the decrease in oil and gas sales discussed above.
The Limited Partners have received cash distributions through March 31,
1998 totaling $50,444,552 or 120.57% of Limited Partners' capital
contributions.
30
I-F PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1998 AS COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 1997.
Three Months Ended March 31,
----------------------------
1998 1997
-------- --------
Oil and gas sales $366,302 $600,350
Oil and gas production expenses $120,910 $168,282
Barrels produced 7,867 9,762
Mcf produced 113,169 145,659
Average price/Bbl $ 14.99 $ 23.09
Average price/Mcf $ 2.19 $ 2.57
As shown in the table above, total oil and gas sales decreased $234,048
(39.0%) for the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997. Of this decrease, approximately $44,000 and
$83,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $64,000 and $43,000, respectively, were related to
decreases in the average prices of oil and gas sold. Volumes of oil and
gas sold decreased 1,895 barrels and 32,490 Mcf, respectively, for the
three months ended March 31, 1998 as compared to the three months ended
March 31, 1997. The decrease in volumes of oil sold resulted primarily
from declines in production on two significant wells during the three
months ended March 31, 1998. The decrease in volumes of gas sold resulted
primarily from positive prior period volume adjustments made by the
purchaser on two significant wells during the three months ended March 31,
1997. Average oil and gas prices decreased to $14.99 per barrel and $2.19
per Mcf, respectively, for the three months ended March 31, 1998 from
$23.09 per barrel and $2.57 per Mcf, respectively, for the three months
ended March 31, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $47,372 (28.2%) for the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. This
decrease resulted primarily from (i) the decreases in volumes of oil and
gas sold during the three months ended March 31, 1998 as compared to the
three months ended March 31, 1997 and (ii) a decrease in production taxes
associated with the decrease in oil and gas sales discussed above. As a
percentage of oil and gas sales, these expenses increased to 33.0% for the
three months ended March 31, 1998 from 28.0% for the three months ended
March 31, 1997. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold during the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997.
31
Depreciation, depletion, and amortization of oil and gas properties
decreased $14,932 (23.6%) for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997. This decrease resulted
primarily from (i) the decreases in volumes of oil and gas sold during the
three months ended March 31, 1998 as compared to the three months ended
March 31, 1997 and (ii) upward revisions in the estimates of remaining gas
reserves at December 31, 1997. As a percentage of oil and gas sales, this
expense increased to 13.2% for the three months ended March 31, 1998 from
10.5% for the three months ended March 31, 1997. This percentage increase
was primarily due to the decreases in the average prices of oil and gas
sold during the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997.
The I-F Partnership recognized a non-cash charge against earnings of
$114,631 during the three months ended March 31, 1997. Of this amount,
$20,908 was related to a decline in oil and gas prices used to determine
the recoverability of proved oil and gas reserves at March 31, 1997 and
$93,723 was related to the writing off of unproved properties. These
unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the I-F Partnership's partnership agreement which limit
the level of permissible drilling activity. No similar charge was
necessary during the three months ended March 31, 1998.
General and administrative expenses increased $2,762 (5.7%) for the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997. As a percentage of oil and gas sales, these expenses increased
to 14.1% for the three months ended March 31, 1998 from 8.1% for the three
months ended March 31, 1997. This percentage increase was primarily due to
the decrease in oil and gas sales discussed above.
The Limited Partners have received cash distributions through March 31,
1998 totaling $16,972,664 or 118.52% of Limited Partners' capital
contributions.
32
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As further described in the Partnerships' Annual Report on Form 10-K for
the year ended December 31, 1997 (the "Form 10-K"), the Partnerships are
included in the subject matter of a class action lawsuit entitled "In Re:
PaineWebber Limited Partnerships' Litigation," Case No. 94-CIV-8558, U.S.
District Court, Southern District of New York.
In early 1996 PaineWebber Incorporated ("PaineWebber") reached settlements
with the class action plaintiffs and the Securities and Exchange
Commission (the "SEC") that resolved the above referenced litigation. As
part of the class settlement, PaineWebber paid $125 million (the "Class
Action Fund"), plus certain additional consideration to the class.
PaineWebber also paid $40 million to a capped claims fund to be
independently administered on behalf of the SEC (the "SEC Fund"). Both
settlement funds (in the case of the Class Action Fund, net of court
approved class counsel attorney's fees and disbursements) were to be
allocated among eligible limited partners whose claims were approved by
the respective Claims Administrators.
In late March 1998, the Court awarded attorney's fees and disbursements to
class counsel. On or about May 8, 1998, the Claims Administrator for the
Class Action Fund mailed to eligible class members the cash component of
their settlement benefits from the Class Action Fund. The General Partner
has been advised that in late May 1998 the SEC Claims Administrator
expects to mail to each eligible class member his or her claim
determination with the preliminary settlement amount, if any, from the SEC
Fund.
With respect to the I-D, I-E, and I-F Partnerships, the settlement
provided that limited partners in such Partnerships would not receive cash
awards from either the Class Action Fund or the SEC Fund for the reason
that plaintiff's counsel determined that these limited partners had not
suffered any out of pocket loss. However, they may be eligible to share in
the additional consideration agreed to in the settlement.
A further description of the settlement is included within the Form 10-K
referred to above.
33
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, 1998 and for the
three months ended March 31, 1998, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the I-C Partnership's
financial statements as of March 31, 1998 and for the
three months ended March 31, 1998, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the I-D Partnership's
financial statements as of March 31, 1998 and for the
three months ended March 31, 1998, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the I-E Partnership's
financial statements as of March 31, 1998 and for the
three months ended March 31, 1998, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the I-F Partnership's
financial statements as of March 31, 1998 and for the
three months ended March 31, 1998, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
Current report on Form 8-K filed during the first quarter of 1998:
Date of event: January 29, 1998
Date filed with SEC: January 30, 1998
Items included
Item 5 - Other Events
Item 7 - Exhibits
34
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 RESOURCES, INC.
General Partner
Date: May 13, 1998 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: May 13, 1998 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
35
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, 1998 and for the three months
ended March 31, 1998, 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, 1998 and for the three months
ended March 31, 1998, 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, 1998 and for the three months
ended March 31, 1998, 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, 1998 and for the three months
ended March 31, 1998, 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, 1998 and for the three months
ended March 31, 1998, filed herewith.
All other exhibits are omitted as inapplicable.
36