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 June 30, 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
June 30, December 31,
1998 1997
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 31,071 $ 77,028
Accounts receivable:
Oil and gas sales 36,249 53,389
-------- --------
Total current assets $ 67,320 $130,417
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 305,173 327,137
DEFERRED CHARGE 99,262 99,262
-------- --------
$471,755 $556,816
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 4,934 $ 9,366
Gas imbalance payable 3,116 3,116
-------- --------
Total current liabilities $ 8,050 $ 12,482
ACCRUED LIABILITY $ 22,520 $ 22,520
PARTNERS' CAPITAL (DEFICIT):
General Partner ($104,838) ($103,542)
Limited Partners, issued and
outstanding, 11,958 units 546,023 625,356
-------- --------
Total Partners' capital $441,185 $521,814
-------- --------
$471,755 $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 JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
REVENUES:
Oil and gas sales $59,328 $109,096
Interest income 210 206
Loss on sale of oil and gas
properties ( 106) -
------- --------
$59,432 $109,302
COSTS AND EXPENSES:
Lease operating $13,188 $ 30,214
Production tax 3,608 7,398
Depreciation, depletion, and
amortization of oil and gas
properties 11,551 15,336
General and administrative
(Note 2) 12,875 17,673
------- --------
$41,222 $ 70,621
------- --------
NET INCOME $18,210 $ 38,681
======= ========
GENERAL PARTNER - NET INCOME $ 1,362 $ 2,537
======= ========
LIMITED PARTNERS - NET INCOME $16,848 $ 36,144
======= ========
NET INCOME per unit $ 1.41 $ 3.02
======= ========
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 OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
REVENUES:
Oil and gas sales $120,200 $191,538
Interest income 732 300
Loss on sale of oil and gas
properties ( 106) -
-------- --------
$120,826 $191,838
COSTS AND EXPENSES:
Lease operating $ 29,009 $ 48,509
Production tax 6,930 12,880
Depreciation, depletion, and
amortization of oil and gas
properties 21,963 28,262
Impairment provision - 19,726
General and administrative
(Note 2) 33,967 36,377
-------- --------
$ 91,869 $145,754
-------- --------
NET INCOME $ 28,957 $ 46,084
======== ========
GENERAL PARTNER - NET INCOME $ 2,290 $ 4,209
======== ========
LIMITED PARTNERS - NET INCOME $ 26,667 $ 41,875
======== ========
NET INCOME per unit $ 2.23 $ 3.50
======== ========
UNITS OUTSTANDING 11,958 11,958
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
4
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-B
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-B
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 28,957 $46,084
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 21,963 28,262
Impairment provision - 19,726
Loss on sale of oil and gas
properties 106 -
Decrease in accounts receivable -
oil and gas sales 17,140 3,746
Decrease in accounts payable ( 4,432) ( 8,514)
-------- -------
Net cash provided by operating
activities $ 63,734 $89,304
-------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 105) ($ 2,223)
-------- -------
Net cash used by investing activities ($ 105) ($ 2,223)
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($109,586) ($57,866)
-------- -------
Net cash used by financing activities ($109,586) ($57,866)
-------- -------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 45,957) $29,215
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 77,028 13,805
-------- -------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 31,071 $43,020
======== =======
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 BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 42,188 $141,699
Accounts receivable:
Oil and gas sales 82,411 130,355
-------- --------
Total current assets $124,599 $272,054
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 321,738 334,734
DEFERRED CHARGE 110,943 110,943
-------- --------
$557,280 $717,731
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 15,802 $ 22,321
-------- --------
Total current liabilities $ 15,802 $ 22,321
ACCRUED LIABILITY $ 18,103 $ 18,103
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 92,357) ($ 89,189)
Limited Partners, issued and
outstanding, 8,885 units 615,732 766,496
-------- --------
Total Partners' capital $523,375 $677,307
-------- --------
$557,280 $717,731
======== ========
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 OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- ----------
REVENUES:
Oil and gas sales $95,699 $206,408
Interest income 703 1,258
Loss on sale of oil and
gas properties ( 20) ( 4,907)
------- --------
$96,382 $202,759
COSTS AND EXPENSES:
Lease operating $46,870 $ 83,502
Production tax 6,739 10,948
Depreciation, depletion, and
amortization of oil and gas
properties 5,618 10,730
General and administrative
(Note 2) 24,549 28,076
------- --------
$83,776 $133,256
------- --------
NET INCOME $12,606 $ 69,503
======= ========
GENERAL PARTNER - NET INCOME $ 819 $ 3,841
======= ========
LIMITED PARTNERS - NET INCOME $11,787 $ 65,662
======= ========
NET INCOME per unit $ 1.33 $ 7.39
======= ========
UNITS OUTSTANDING 8,885 8,885
======= ========
The accompanying condensed notes are an integral part of these
combined financial statements.
7
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
REVENUES:
Oil and gas sales $282,095 $471,975
Interest income 1,990 2,788
Loss on sale of oil and gas
properties ( 20) ( 4,362)
-------- --------
$284,065 $470,401
COSTS AND EXPENSES:
Lease operating $ 93,931 $124,517
Production tax 17,076 26,599
Depreciation, depletion, and
amortization of oil and gas
properties 12,996 23,286
Impairment provision - 4,679
General and administrative
(Note 2) 55,161 57,067
-------- --------
$179,164 $236,148
-------- --------
NET INCOME $104,901 $234,253
======== ========
GENERAL PARTNER - NET INCOME $ 5,665 $ 12,692
======== ========
LIMITED PARTNERS - NET INCOME $ 99,236 $221,561
======== ========
NET INCOME per unit $ 11.17 $ 24.94
======== ========
UNITS OUTSTANDING 8,885 8,885
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
8
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-C
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $104,901 $234,253
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 12,996 23,286
Impairment provision - 4,679
Loss on sale of oil and gas
properties 20 4,362
Decrease in accounts receivable -
oil and gas sales 47,944 52,015
Decrease in accounts receivable -
General Partner - 14,922
Increase (decrease) in accounts
payable ( 6,519) 85,304
-------- --------
Net cash provided by operating
activities $159,342 $418,821
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 20) ($ 81,949)
Proceeds from sale of oil and
gas properties - 6,000
-------- --------
Net cash used by investing
activities ($ 20) ($ 75,949)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($258,833) ($434,262)
-------- --------
Net cash used by financing activities ($258,833) ($434,262)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 99,511) ($ 91,390)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 141,699 218,437
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 42,188 $127,047
======== ========
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 BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 291,415 $ 274,109
Accounts receivable:
Oil and gas sales 146,951 256,001
---------- ----------
Total current assets $ 438,366 $ 530,110
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 675,583 714,156
DEFERRED CHARGE 104,793 104,793
---------- ----------
$1,218,742 $1,349,059
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 10,166 $ 31,310
Gas imbalance payable 39,971 39,971
---------- ----------
Total current liabilities $ 50,137 $ 71,281
ACCRUED LIABILITY $ 14,345 $ 14,345
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 42,929) ($ 27,560)
Limited Partners, issued and
outstanding, 7,195 units 1,197,189 1,290,993
---------- ----------
Total Partners' capital $1,154,260 $1,263,433
---------- ----------
$1,218,742 $1,349,059
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
10
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
REVENUES:
Oil and gas sales $186,722 $332,197
Interest income 3,307 2,743
Gain on sale of oil and
gas properties 108,746 15,824
-------- --------
$298,775 $350,764
COSTS AND EXPENSES:
Lease operating $ 26,529 $ 48,093
Production tax 13,884 19,814
Depreciation, depletion, and
amortization of oil and gas
properties 11,703 28,574
General and administrative
(Note 2) 21,684 24,880
-------- --------
$ 73,800 $121,361
-------- --------
NET INCOME $224,975 $229,403
======== ========
GENERAL PARTNER - NET INCOME $ 34,889 $ 37,999
======== ========
LIMITED PARTNERS - NET INCOME $190,086 $191,404
======== ========
NET INCOME per unit $ 26.42 $ 26.60
======== ========
UNITS OUTSTANDING 7,195 7,195
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
11
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
REVENUES:
Oil and gas sales $480,382 $805,114
Interest income 6,088 5,387
Gain on sale of oil and
gas properties 255,796 15,824
-------- --------
$742,266 $826,325
COSTS AND EXPENSES:
Lease operating $ 57,471 $ 77,334
Production tax 31,822 50,712
Depreciation, depletion, and
amortization of oil and gas
properties 27,588 60,287
Impairment provision - 61,790
General and administrative
(Note 2) 47,567 49,367
-------- --------
$164,448 $299,490
-------- --------
NET INCOME $577,818 $526,835
======== ========
GENERAL PARTNER - NET INCOME $ 89,622 $ 95,308
======== ========
LIMITED PARTNERS - NET INCOME $488,196 $431,527
======== ========
NET INCOME per unit $ 67.85 $ 59.98
======== ========
UNITS OUTSTANDING 7,195 7,195
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
12
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $577,818 $526,835
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 27,588 60,287
Impairment provision - 61,790
Gain on sale of oil and gas
properties ( 255,796) ( 15,824)
Increase in accounts receivable -
oil and gas sales 109,050 116,014
Decrease in accounts receivable -
General Partner - ( 13,234)
Decrease in accounts payable ( 21,144) ( 1,580)
-------- --------
Net cash provided by operating
activities $437,516 $734,288
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 1,857) ($ 934)
Proceeds from sale of oil and
gas properties 268,638 16,238
-------- --------
Net cash provided by investing
activities $266,781 $ 15,304
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($686,991) ($816,514)
-------- --------
Net cash used by financing activities ($686,991) ($816,514)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 17,306 ($ 66,922)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 274,109 344,951
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $291,415 $278,029
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
13
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,125,855 $ 827,775
Accounts receivable:
Oil and gas sales 626,604 994,354
Other - 69,917
---------- ----------
Total current assets $1,752,459 $1,892,046
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 4,406,419 4,844,378
DEFERRED CHARGE 750,369 750,369
---------- ----------
$6,909,247 $7,486,793
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 79,387 $ 257,524
Gas imbalance payable 135,884 135,884
---------- ----------
Total current liabilities $ 215,271 $ 393,408
ACCRUED LIABILITY $ 138,356 $ 138,356
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 291,665) ($ 228,434)
Limited Partners, issued and
outstanding, 41,839 units 6,847,285 7,183,463
---------- ----------
Total Partners' capital $6,555,620 $6,955,029
---------- ----------
$6,909,247 $7,486,793
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
14
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $1,026,695 $1,459,697
Interest income 12,920 9,045
Gain on sale of oil and
gas properties 489,455 62,609
---------- ----------
$1,529,070 $1,531,351
COSTS AND EXPENSES:
Lease operating $ 241,285 $ 336,136
Production tax 70,829 96,141
Depreciation, depletion, and
amortization of oil and gas
properties 159,710 201,890
General and administrative
(Note 2) 122,432 140,236
---------- ----------
$ 594,256 $ 774,403
---------- ----------
NET INCOME $ 934,814 $ 756,948
========== ==========
GENERAL PARTNER - NET INCOME $ 160,644 $ 140,450
========== ==========
LIMITED PARTNERS - NET INCOME $ 774,170 $ 616,498
========== ==========
NET INCOME per unit $ 18.51 $ 14.74
========== ==========
UNITS OUTSTANDING 41,839 41,839
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
15
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $2,092,070 $3,211,446
Interest income 22,299 16,924
Gain on sale of oil and
gas properties 1,149,051 62,609
---------- ----------
$3,263,420 $3,290,979
COSTS AND EXPENSES:
Lease operating $ 456,139 $ 594,466
Production tax 144,939 217,165
Depreciation, depletion, and
amortization of oil and gas
properties 312,718 399,583
Impairment provision - 291,690
General and administrative
(Note 2) 272,850 282,574
---------- ----------
$1,186,646 $1,785,478
---------- ----------
NET INCOME $2,076,774 $1,505,501
========== ==========
GENERAL PARTNER - NET INCOME $ 351,952 $ 320,065
========== ==========
LIMITED PARTNERS - NET INCOME $1,724,822 $1,185,436
========== ==========
NET INCOME per unit $ 41.23 $ 28.33
========== ==========
UNITS OUTSTANDING 41,839 41,839
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
16
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,076,774 $1,505,501
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 312,718 399,583
Impairment provision - 291,690
Gain on sale of oil and gas
properties ( 1,149,051) ( 62,609)
Decrease in accounts receivable -
oil and gas sales 367,750 370,021
Increase in accounts receivable -
General Partner - ( 42,533)
Decrease in accounts receivable -
other 69,917 -
Decrease in accounts payable ( 178,137) ( 19,624)
---------- ----------
Net cash provided by operating
activities $1,499,971 $2,442,029
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 5,120) ($ 68,233)
Proceeds from sale of oil and
gas properties 1,279,412 80,538
---------- ----------
Net cash provided by investing
activities $1,274,292 $ 12,305
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,476,183) ($2,468,430)
---------- ----------
Net cash used by financing activities ($2,476,183) ($2,468,430)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 298,080 ($ 14,096)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 827,775 894,887
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,125,855 $ 880,791
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
17
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 275,836 $ 251,220
Accounts receivable:
Oil and gas sales 204,984 307,734
Other - 48,942
---------- ----------
Total current assets $ 480,820 $ 607,896
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,261,665 1,457,908
DEFERRED CHARGE 501,016 501,016
---------- ----------
$2,243,501 $2,566,820
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 37,923 $ 53,205
Gas imbalance payable 47,046 47,046
---------- ----------
Total current liabilities $ 84,969 $ 100,251
ACCRUED LIABILITY $ 116,401 $ 116,401
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 96,589) ($ 59,811)
Limited Partners, issued and
outstanding, 14,321 units 2,138,720 2,409,979
---------- ----------
Total Partners' capital $2,042,131 $2,350,168
---------- ----------
$2,243,501 $2,566,820
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
18
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $320,633 $528,523
Interest income 4,545 2,837
Gain on sale of oil and
gas properties 45,507 46,356
-------- --------
$370,685 $577,716
COSTS AND EXPENSES:
Lease operating $118,870 $170,574
Production tax 20,716 33,387
Depreciation, depletion, and
amortization of oil and gas
properties 47,513 63,335
General and administrative
(Note 2) 42,403 48,548
-------- --------
$229,502 $315,844
-------- --------
NET INCOME $141,183 $261,872
======== ========
GENERAL PARTNER - NET INCOME $ 27,147 $ 47,722
======== ========
LIMITED PARTNERS - NET INCOME $114,036 $214,150
======== ========
NET INCOME per unit $ 7.96 $ 14.95
======== ========
UNITS OUTSTANDING 14,321 14,321
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
19
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $ 686,935 $1,128,873
Interest income 7,719 5,714
Gain on sale of oil and
gas properties 333,266 46,356
---------- ----------
$1,027,920 $1,180,943
COSTS AND EXPENSES:
Lease operating $ 216,106 $ 299,049
Production tax 44,390 73,194
Depreciation, depletion, and
amortization of oil and gas
properties 95,892 126,646
Impairment provision - 114,631
General and administrative
(Note 2) 93,876 97,259
---------- ----------
$ 450,264 $ 710,779
---------- ----------
NET INCOME $ 577,656 $ 470,164
========== ==========
GENERAL PARTNER - NET INCOME $ 98,915 $ 103,446
========== ==========
LIMITED PARTNERS - NET INCOME $ 478,741 $ 366,718
========== ==========
NET INCOME per unit $ 33.43 $ 25.61
========== ==========
UNITS OUTSTANDING 14,321 14,321
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
20
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $577,656 $470,164
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 95,892 126,646
Impairment provision - 114,631
Gain on sale of oil and gas
properties ( 333,266) ( 46,356)
Decrease in accounts receivable -
oil and gas sales 102,750 115,246
Increase in accounts receivable -
General Partner - ( 35,198)
Decrease in accounts receivable -
other 48,942 -
Decrease in accounts payable ( 15,282) ( 292)
-------- --------
Net cash provided by operating
activities $476,692 $744,841
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 2,180) ($ 24,997)
Proceeds from sale of oil and
gas properties 435,797 58,027
-------- --------
Net cash provided by investing
activities $433,617 $ 33,030
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($885,693) ($835,338)
-------- --------
Net cash used by financing activities ($885,693) ($835,338)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 24,616 ($ 57,467)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 251,220 339,064
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $275,836 $281,597
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
21
GEODYNE ENERGY INCOME I LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
JUNE 30, 1998
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of June 30, 1998, combined statements of
operations for the three and six months ended June 30, 1998 and 1997, and
combined statements of cash flows for the six months ended June 30, 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 June 30, 1998, the combined results of operations for the
three and six months ended June 30, 1998 and 1997, and the combined cash
flows for the six months ended June 30, 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 June 30, 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.
22
OIL AND GAS PROPERTIES
----------------------
The Partnerships follow the successful efforts method of accounting for
their oil and gas properties. Under the successful efforts method, the
Partnerships capitalize all property acquisition costs and development
costs incurred in connection with the further development of oil and gas
reserves. Property acquisition costs include costs incurred by the
Partnerships or the General Partner to acquire producing properties,
including related title insurance or examination costs, commissions,
engineering, legal and accounting fees, and similar costs directly related
to the acquisitions, plus an allocated portion, of the General Partner's
property screening costs. The acquisition cost to the Partnerships of
properties acquired by the General Partner is adjusted to reflect the net
cash results of operations, including interest incurred to finance the
acquisition, for the period of time the properties are held by the General
Partner prior to their transfer to the Partnerships. Leasehold impairment
is recognized based upon an individual property assessment and exploratory
experience. Upon discovery of commercial reserves, leasehold costs are
transferred to producing properties.
Depletion of the costs of producing oil and gas properties, amortization
of related intangible drilling and development costs, and depreciation of
tangible lease and well equipment are computed on the unit-of-production
method. The Partnerships' depletion, depreciation, and amortization
includes estimated dismantlement and abandonment costs, net of estimated
salvage value.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss reflected in income. When less than complete units of depreciable
property are retired or sold, the difference between asset cost and
salvage value is charged to accumulated depreciation.
23
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 six months ended June 30, 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 six months ended June 30, 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 June 30, 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 $1,562 $ 11,313
I-C 1,167 23,382
I-D 1,698 19,986
I-E 6,212 116,220
I-F 2,623 39,780
24
During the six months ended June 30, 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 $11,341 $ 22,626
I-C 8,397 46,764
I-D 7,595 39,972
I-E 40,410 232,440
I-F 14,316 79,560
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.
25
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
- -----------------------------------------------
This Quarterly Report contains certain forward-looking statements. The
words "anticipate", "believe", "expect", "plan", "intend", "estimate",
"project", "could", "may" and similar expressions are intended to identify
forward-looking statements. Such statements reflect management's current
views with respect to future events and financial performance. This
Quarterly Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions are
management's efforts to accurately reflect the condition and operation of
the Partnerships.
Use of forward-looking statements and estimates and assumptions involve
risks and uncertainties which include, but are not limited to, the
volatility of oil and gas prices, the uncertainty of reserve information,
the operating risk associated with oil and gas properties (including the
risk of personal injury, death, property damage, damage to the well or
producing reservoir, environmental contamination, and other operating
risks), the prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the general
economic climate, the supply and price of foreign imports of oil and gas,
the level of consumer product demand, and the price and availability of
alternative fuels. Should one or more of these risks or uncertainties
occur or should estimates or underlying assumptions prove incorrect,
actual conditions or results may vary materially and adversely from those
stated, anticipated, believed, estimated, and otherwise indicated.
GENERAL
- -------
The Partnerships are engaged in the business of acquiring and operating
producing oil and gas properties located in the continental United States.
In general, a Partnership acquired producing properties and did not engage
in development drilling or enhanced recovery projects, except as an
incidental part of the management of the producing properties acquired.
Therefore, the economic life of each Partnership, and its related
Production Partnership, is limited to the period of time required to fully
produce its acquired oil and gas reserves. The net proceeds from the oil
and gas operations are distributed to the Limited Partners and the General
Partner in accordance with the terms of the Partnerships' partnership
agreements.
26
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 June 30, 1998 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
The Partnerships' Statements of Cash Flows for the six months ended June
30, 1998 include proceeds from the sale of oil and gas properties during
the six months ended June 30, 1998. These proceeds received during the
first quarter were included in the Partnerships' cash distributions paid
during May 1998, and the proceeds received during the second quarter will
be included in the Partnerships' cash distributions to be paid in August
1998. It is possible that the 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 Partnerships' remaining
properties. This is primarily due to the fact that the properties sold
generally bore a higher ratio of operating expenses as compared to
reserves than the Partnerships' remaining properties.
27
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. Such spot market sales are generally short-term in nature and
are dependent upon the obtaining of transportation services provided by
pipelines. In addition, crude oil prices are at or near their lowest level
in the past decade due primarily to the global surplus of crude oil.
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 JUNE 30, 1998 AS COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 1997.
Three Months Ended June 30,
---------------------------
1998 1997
------- --------
Oil and gas sales $59,328 $109,096
Oil and gas production expenses $16,796 $ 37,612
Barrels produced 265 527
Mcf produced 28,541 37,735
Average price/Bbl $ 11.15 $ 18.83
Average price/Mcf $ 1.98 $ 2.63
As shown in the table above, total oil and gas sales decreased $49,768
(45.6%) for the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. Of this decrease, approximately $5,000 and
$24,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $2,000 and $19,000, respectively, were related to
decreases in the average prices of oil and gas sold. Volumes of oil and
gas sold decreased 262 barrels and 9,194 Mcf, respectively, for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. The decrease in volumes of oil sold resulted primarily from (i) the
sale of one significant well in 1997 and (ii) a normal decline in
production due to diminishing reserves on one significant well during the
three months ended June 30, 1998. The decrease in volumes of gas sold
resulted primarily
28
from (i) positive prior period volume adjustments by purchasers on two
significant wells during the three months ended June 30, 1997, (ii) the
sale of one significant well in 1997, and (iii) a normal decline in
production due to diminishing reserves on one significant well during the
three months ended June 30, 1998. Average oil and gas prices decreased to
$11.15 per barrel and $1.98 per Mcf, respectively, for the three months
ended June 30, 1998 from $18.83 per barrel and $2.63 per Mcf,
respectively, for the three months ended June 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $20,816 (55.3%) for the three months ended
June 30, 1998 as compared to the three months ended June 30, 1997. This
decrease resulted primarily from (i) a decrease in production taxes
associated with the decrease in oil and gas sales discussed above, (ii)
the decreases in volumes of oil and gas sold during the six months ended
June 30, 1998 as compared to the six months ended June 30, 1997, (iii)
workover expenses incurred on two significant wells during the three
months ended June 30, 1997 in order to improve the recovery of reserves,
and (iv) the sale of one significant well in 1997. As a percentage of oil
and gas sales, these expenses decreased to 28.3% for the three months
ended June 30, 1998 from 34.5% for the three months ended June 30, 1997.
This percentage decrease was primarily due to the decrease in workover
expenses discussed above.
Depreciation, depletion, and amortization of oil and gas properties
decreased $3,785 (24.7%) for the three months ended June 30, 1998 as
compared to the three months ended June 30, 1997. This decrease resulted
primarily from the decreases in volumes of oil and gas sold during the
three months ended June 30, 1998 as compared to the three months ended
June 30 1997. As a percentage of oil and gas sales, this expense increased
to 19.5% for the three months ended June 30, 1998 from 14.1% for the three
months ended June 30, 1997. This percentage increase was primarily due to
the decreases in the average prices of oil and gas sold during the three
months ended June 30, 1998 as compared to the three months ended June 30
1997.
General and administrative expenses decreased $4,798 (27.1%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from a decrease in professional
fees for the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. As a percentage of oil and gas sales, these
expenses increased to 21.7% for the three months ended June 30, 1998 from
16.2% for the three months ended June 30, 1997. This percentage increase
was primarily due to the decrease in oil and gas sales discussed above.
29
SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1997.
Six Months Ended June 30,
-------------------------
1998 1997
-------- --------
Oil and gas sales $120,200 $191,538
Oil and gas production expenses $ 35,939 $ 61,389
Barrels produced 736 1,113
Mcf produced 52,879 68,688
Average price/Bbl $ 13.17 $ 20.01
Average price/Mcf $ 2.09 $ 2.46
As shown in the table above, total oil and gas sales decreased $71,338
(37.2%) for the six months ended June 30, 1998 as compared to the six
months ended June 30, 1997. Of this decrease, approximately $7,000 and
$39,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $5,000 and $20,000, respectively, were related to
decreases in the average prices of oil and gas sold. Volumes of oil and
gas sold decreased 377 barrels and 15,809 Mcf for the six months ended
June 30, 1998 as compared to the six months ended June 30, 1997. The
decrease in volumes of oil sold resulted primarily from (i) the sale of
one significant well in 1997 and (ii) a normal decline in production due
to diminishing reserves on one significant well during the six months
ended June 30, 1998. The decrease in volumes of gas sold resulted
primarily from (i) the sale of two significant wells in 1997 and (ii)
positive prior period volume adjustments by purchasers on several wells
during the six months ended June 30, 1997. Average oil and gas prices
decreased to $13.17 per barrel and $2.09 per Mcf, respectively, for the
six months ended June 30, 1998 from $20.01 per barrel and $2.46 per Mcf,
respectively, for the six months ended June 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $25,450 (41.5%) for the six months ended June
30, 1998 as compared to the six months ended June 30, 1997. This decrease
resulted primarily from (i) a decrease in production taxes associated with
the decrease in oil and gas sales discussed above, (ii) the decreases in
volumes of oil and gas sold during the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997, and (iii) workover
expenses on one significant well during the three months ended June 30,
1997. As a percentage of oil and gas sales, these expenses decreased to
29.9% for the six months ended June 30, 1998 from 32.1% for the six months
ended June 30, 1997. This percentage decrease was primarily due to the
decrease in workover expenses discussed above.
30
Depreciation, depletion, and amortization of oil and gas properties
decreased $6,299 (22.3%) for the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997. This decrease resulted
primarily from the decrease in volumes of oil and gas sold during the six
months ended June 30, 1998 as compared to the six months ended June 30
1997. As a percentage of oil and gas sales, this expense increased to
18.3% for the six months ended June 30, 1998 from 14.8% for the six months
ended June 30, 1997. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold during the six months
ended June 30, 1998 as compared to the six months ended June 30, 1997.
The I-B Partnership recognized a non-cash charge against earnings of
$19,726 during the six months ended June 30, 1997. Of this amount, $17,233
was related to the 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 the
level of permissible drilling activity. No similar charge was necessary
during the three months ended June 30, 1998.
General and administrative expenses decreased $2,410 (6.6%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of oil and gas sales, these expenses increased to
28.3% for the six months ended June 30, 1998 from 19.0 % for the six
months ended June 30, 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 June 30,
1998 totaling $6,650,527 or 55.62% of Limited Partners' capital
contributions.
31
I-C PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 1997.
Three Months Ended June 30,
---------------------------
1998 1997
------- --------
Oil and gas sales $95,699 $206,408
Oil and gas production expenses $53,609 $ 94,450
Barrels produced 3,143 5,288
Mcf produced 31,455 40,614
Average price/Bbl $ 11.45 $ 18.78
Average price/Mcf $ 1.90 $ 2.64
As shown in the table above, total oil and gas sales decreased $110,709
(53.6%) for the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. Of this decrease, approximately $40,000 and
$24,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $23,000 and $23,000, respectively, were related to
decreases in the average prices of oil and gas sold. Volumes of oil and
gas sold decreased 2,145 barrels and 9,159 Mcf, respectively, for the
three months ended June 30, 1998 as compared to the three months ended
June 30, 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 a normal decline in production on one
significant well during the three months ended June 30, 1998. Average oil
and gas prices decreased to $11.45 per barrel and $1.90 per Mcf,
respectively, for the three months ended June 31, 1998 from $18.78 per
barrel and $2.64 per Mcf, respectively, for the three months ended June
30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $40,841 (43.2%) for the three months ended
June 30, 1998 as compared to the three months ended June 30, 1997. This
decrease was primarily due to (i) a decrease in production taxes
associated with the decrease in oil and gas sales discussed above, (ii)
the decreases in volumes of oil and gas sold for the three months ended
June 30, 1998 as compared to the three months ended June 30, 1997, and
(iii) workover expenses incurred on three wells during the three months
ended June 30, 1997 in order to improve the recovery of reserves. As a
percentage of oil and gas sales, these expenses increased to 56.0% for the
three months ended June 30, 1998 from 45.8% for the three months ended
June 30, 1997. This percentage increase was primarily due to the decreases
in the average prices of oil and gas sold for the
32
three months ended June 30, 1998 as compared to the three months ended
June 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $5,112 (47.6%) for the three months ended June 30, 1998 as
compared to the three months ended June 30, 1997. This decrease resulted
primarily from the decreases in volumes of oil and gas sold during the
three months ended June 30, 1998 as compared to the three months ended
June 30, 1997. As a percentage of oil and gas sales, this expense remained
relatively constant at 5.9% for the three months ended June 30, 1998 and
5.2% for the three months ended June 30, 1997.
General and administrative expenses decreased $3,527 (12.6%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease was primarily due to decreased professional fees
during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. As a percentage of oil and gas sales, these
expenses increased to 25.7% for the three months ended June 30, 1998 from
13.6% for the three months ended June 30, 1997. This percentage increase
was primarily due to the decrease in oil and gas sales discussed above.
SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1997.
Six Months Ended June 30,
-------------------------
1998 1997
-------- --------
Oil and gas sales $282,095 $471,975
Oil and gas production expenses $111,007 $151,116
Barrels produced 7,382 11,222
Mcf produced 72,092 89,654
Average price/Bbl $ 12.45 $ 19.94
Average price/Mcf $ 2.64 $ 2.77
As shown in the table above, total oil and gas sales decreased $189,880
(40.2%) for the six months ended June 30, 1998 as compared to the six
months ended June 30, 1997. Of this decrease, approximately $77,000 and
$49,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $55,000 and $9,000, respectively, were related to
decreases in the average prices of oil and gas sold. Volumes of oil and
gas sold decreased 3,840 barrels and 17,562 Mcf, respectively, for the six
months ended June 30, 1998 as compared to the six months ended June 30,
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 a normal decline in production on another
significant well during the six months ended June
33
30, 1998. Average oil and gas prices decreased to $12.45 per barrel and
$2.64 per Mcf, respectively, for the six months ended June 30, 1998 from
$19.94 per barrel and $2.77 per Mcf, respectively, for the six months
ended June 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $40,109 (26.5%) for the six months ended June
30, 1998 as compared to the six months ended June 30, 1997. This decrease
was primarily due to (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 for the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997. As a percentage of oil and
gas sales, these expenses increased to 39.4% for the six months ended June
30, 1998 from 32.0% for the six months ended June 30, 1997. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold for the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $10,290 (44.2%) for the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997. This decrease resulted
primarily from the decreases in volumes of oil and gas sold during the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of oil and gas sales, this expense remained
relatively constant at 4.6% for the six months ended June 30, 1998 and
4.9% for the six months ended June 30, 1997.
The I-C Partnership recognized a non-cash charge against earnings of
$4,679 during the six months ended June 30, 1997 primarily related to the
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 six months ended June 30, 1998.
General and administrative expenses decreased $1,906 (3.3%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of oil and gas sales, these expenses increased to
19.6% for the six months ended June 30, 1998 from 12.1% for the six months
ended June 30, 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 June 30,
1998 totaling $8,131,300 or 91.52% of Limited Partners' capital
contributions.
34
I-D PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 1997.
Three Months Ended June 30,
---------------------------
1998 1997
-------- --------
Oil and gas sales $186,722 $332,197
Oil and gas production expenses $ 40,413 $ 67,907
Barrels produced 2,913 3,700
Mcf produced 78,709 124,332
Average price/Bbl $ 11.95 $ 17.98
Average price/Mcf $ 1.93 $ 2.14
As shown in the table above, total oil and gas sales decreased $145,475
(43.8%) for the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. Of this decrease, approximately $14,000 and
$97,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $18,000 and $16,000, respectively, were related to
decreases in the average prices of oil and gas sold. Volumes of oil and
gas sold decreased 787 barrels and 45,623 Mcf, respectively, for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. The decrease in volumes of oil sold resulted primarily from a normal
decline in production on one significant well during the three months
ended June 30, 1998. The decrease in volumes of gas sold resulted
primarily from normal declines in production on three significant wells
during the three months ended June 30, 1998. Average oil and gas prices
decreased to $11.95 per barrel and $1.93 per Mcf, respectively, for the
three months ended June 30, 1998 from $17.98 per barrel and $2.14 per Mcf,
respectively, for the three months ended June 30, 1997.
As discussed in Liquidity and Capital Resources above, the I-D Partnership
sold certain oil and gas properties during the three months ended June 30,
1998 and recognized a $108,746 gain on such sales. Similar sales during
the three months ended June 30, 1997 resulted in the I-D Partnership
recognizing similar gains totaling $15,824.
35
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $27,494 (40.5%) for the three months ended
June 30, 1998 as compared to the three months ended June 30, 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 for the three months ended
June 30, 1998 as compared to the three months ended June 30, 1997. As a
percentage of oil and gas sales, these expenses remained relatively
constant at 21.6% for the three months ended June 30, 1998 and 20.4% for
the three months ended June 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $16,871 (59.0%) for the three months ended June 30, 1998 as
compared to the three months ended June 30, 1997. This decrease resulted
primarily from (i) the decreases in volumes of oil and gas sold during the
three months ended June 3, 1998 as compared to the three months ended June
30, 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 6.3% for the three months ended June 30, 1998
from 8.6% for the three months ended June 30, 1997. This percentage
decrease was primarily due to the upward revisions in the estimates of
remaining oil and gas reserves discussed above.
General and administrative expenses decreased $3,196 (12.8%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease was primarily a result of a decrease in professional
fees during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. As a percentage of oil and gas sales, these
expenses increased to 11.6% for the three months ended June 30, 1998 from
7.5% for the three months ended June 30, 1997. This percentage increase
was primarily due to the decrease in oil and gas sales discussed above.
36
SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1997.
Six Months Ended June 30,
-------------------------
1998 1997
-------- --------
Oil and gas sales $480,382 $805,114
Oil and gas production expenses $ 89,293 $128,046
Barrels produced 6,333 8,519
Mcf produced 188,751 258,049
Average price/Bbl $ 13.23 $ 20.66
Average price/Mcf $ 2.10 $ 2.44
As shown in the table above, total oil and gas sales decreased $324,732
(40.3%) for the six months ended June 30, 1998 as compared to the six
months ended June 30, 1997. Of this decrease, approximately $45,000 and
$169,000, respectively, were related to decreases in volumes of oil and
gas sold and approximately $47,000 and $64,000, respectively, were related
to decreases in the average prices of oil and gas sold. Volumes of oil and
gas sold decreased 2,186 barrels and 69,298 Mcf, respectively, for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. The decrease in volumes of oil sold resulted primarily from normal
declines in production on two significant wells during the six months
ended June 30, 1998. The decrease in volumes of gas sold resulted
primarily from normal declines in production on several wells during the
six months ended June 30, 1998. Average oil and gas prices decreased to
$13.23 per barrel and $2.10 per Mcf, respectively, for the six months
ended June 30, 1998 from $20.66 per barrel and $2.44 per Mcf,
respectively, for the six months ended June 30, 1997.
As discussed in Liquidity and Capital Resources above, the I-D Partnership
sold certain oil and gas properties during the six months ended June 30,
1998 and recognized a $255,796 gain on such sales. Similar sales during
the six months ended June 30, 1997 resulted in the I-D Partnership
recognizing similar gains totaling $15,824.
37
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $38,753 (30.3%) for the six months ended June
30, 1998 as compared to the six months ended June 30, 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 six months ended June 30, 1998
as compared to June 30, 1997. As a percentage of oil and gas sales, these
expenses increased to 18.6% for the six months ended June 30, 1998 from
15.9% for the six months ended June 30, 1997. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold
during the six months ended June 30, 1998 as compared to the six months
ended June 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $32,699 (54.2%) for the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997. This decrease resulted
primarily from (i) the decreases in volumes of oil and gas sold during the
six months ended June 30, 1998 as compared to the six months ended June
30, 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 5.7% for the six months ended June 30, 1998 from
7.5% for the six months ended June 30, 1997.
The I-D Partnership recognized a non-cash charge against earnings of
$61,790 during the six months ended June 30, 1998. Of this amount, $12,290
was related to the 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 six months ended June 30, 1998.
General and administrative expenses decreased $1,800 (3.6%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of oil and gas sales, these expenses increased to
9.9% for the six months ended June 30, 1998 from 6.1% for the six months
ended June 30, 1997. This percentage increase was primarily due to the
decrease in oil and gas sales discussed above.
38
The Limited Partners have received cash distributions through June 30,
1998 totaling $13,496,175 or 187.58% of Limited Partners' capital
contributions.
I-E PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 1997.
Three Months Ended June 30,
---------------------------
1998 1997
---------- ----------
Oil and gas sales $1,026,695 $1,459,697
Oil and gas production expenses $ 312,114 $ 432,277
Barrels produced 17,876 20,166
Mcf produced 434,138 516,555
Average price/Bbl $ 11.53 $ 18.39
Average price/Mcf $ 1.89 $ 2.11
As shown in the table above, total oil and gas sales decreased $433,002
(29.7%) for the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. Of this decrease, approximately $42,000 and
$174,000, respectively, were related to decreases in volumes of oil and
gas sold and approximately $122,000 and $95,000, respectively, were
related to decreases in the average prices of oil and gas sold. Volumes of
oil and gas sold decreased 2,290 barrels and 82,417 Mcf, respectively, for
the three months ended June 30, 1998 as compared to the three months ended
June 30, 1997. The decrease in volumes of oil sold resulted primarily from
(i) normal declines in production on two significant wells during the
three months ended June 30, 1998 and (ii) the sale of one significant well
in 1997. The decrease in volumes of gas sold resulted primarily from
normal declines in production on two significant wells during the three
months ended June 30, 1998. Average oil and gas prices decreased to $11.53
per barrel and $1.89 per Mcf, respectively, for the three months ended
June 30, 1998 from $18.39 per barrel and $2.11 per Mcf, respectively, for
the three months ended June 30, 1997.
As discussed in Liquidity and Capital Resources above, the I-E Partnership
sold certain oil and gas properties during the three months ended June 30,
1998 and recognized a $489,455 gain on such sales. Similar sales during
the three months ended June 30, 1997 resulted in the I-E Partnership
recognizing similar gains totaling $62,609.
39
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $120,163 (27.8%) for the three months ended
June 30, 1998 as compared to the three months ended June 30, 1997. This
decrease resulted primarily from (i) a decrease in production taxes
associated with the decrease in oil and gas sales discussed above, (ii)
the decreases in volumes of oil and gas sold during the three months ended
June 30, 1998 as compared to the three months ended June 30, 1997, and
(iii) decreased general repair and maintenance expenses on two significant
wells during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. As a percentage of oil and gas sales, these
expenses increased to 30.4% for the three months ended June 30, 1998 from
29.6% for the three months ended June 30, 1997. This percentage increase
was primarily due to the decreases in the average prices of oil and gas
sold during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997, which increase was partially offset by the
decreased general repair and maintenance expenses discussed above.
Depreciation, depletion, and amortization of oil and gas properties
decreased $42,180 (20.9%) for the three months ended June 30, 1998 as
compared to the three months ended June 30, 1997. This decrease resulted
primarily from (i) the decreases in volumes of oil and gas sold during the
three months ended June 30, 1998 as compared to the three months ended
June 30, 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 15.6% for the three months ended June 30, 1998 from
13.8% for the three months ended June 30, 1997.
General and administrative expenses decreased $17,804 (12.7%) for the
three months ended June 30, 1998 as compared to the three months ended
June 30, 1997. This decrease was primarily due to a decrease in
professional fees during the three months ended June 30, 1998 as compared
to the three months ended June 30, 1997. As a percentage of oil and gas
sales, these expenses increased to 11.9% for the three months ended June
30, 1998 from 9.6% for the three months ended June 30, 1997. This
percentage increase was primarily due to the decrease in oil and gas sales
discussed above.
40
SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1997.
Six Months Ended June 30,
-------------------------
1998 1997
---------- ----------
Oil and gas sales $2,092,070 $3,211,446
Oil and gas production expenses $ 601,078 $ 811,631
Barrels produced 33,859 39,108
Mcf produced 856,909 1,027,197
Average price/Bbl $ 13.15 $ 20.63
Average price/Mcf $ 1.92 $ 2.34
As shown in the table above, total oil and gas sales decreased $1,119,376
(34.9%) for the six months ended June 30, 1998 as compared to the six
months ended June 30, 1997. Of this decrease, approximately $108,000 and
$399,000, respectively, were related to decreases in volumes of oil and
gas sold and approximately $253,000 and $359,000, respectively, were
related to decreases in the average prices of oil and gas sold. Volumes of
oil and gas sold decreased 5,249 barrels and 170,288 Mcf, respectively,
for the six months ended June 30, 1998 as compared to the six months ended
June 30, 1997. The decrease in volumes of oil sold resulted primarily from
(i) the sale of one significant well in 1997 and (ii) normal declines in
production on several wells during the six months ended June 30, 1998. The
decrease in volumes of gas sold resulted primarily from (i) a negative
prior period volume adjustment made by the purchaser on one significant
well during the six months ended June 30, 1998 and (ii) normal declines in
production on several wells during the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997. Average oil and gas prices
decreased to $13.15 per barrel and $1.92 per Mcf, respectively, for the
six months ended June 30, 1998 from $20.63 per barrel and $2.34 per Mcf,
respectively, for the six months ended June 30, 1997.
As discussed in Liquidity and Capital Resources above, the I-E Partnership
sold certain oil and gas properties during the six months ended June 30,
1998 and recognized a $1,149,051 gain on such sales. Similar sales during
the six months ended June 30, 1997 resulted in the I-E Partnership
recognizing similar gains totaling $62,609.
41
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $210,553 (25.9%) for the six months ended June
30, 1998 as compared to the six months ended June 30, 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 six months ended June 30, 1998
as compared to the six months ended June 30, 1997. As a percentage of oil
and gas sales, these expenses increased to 28.7% for the six months ended
June 30, 1998 from 25.3% for the six months ended June 30, 1997. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold during the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $86,865 (21.7%) for the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997. This decrease resulted
primarily from (i) the decreases in volumes of oil and gas sold during the
six months ended June 30, 1998 as compared to the six months ended June
30, 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 14.9% for the six months ended June 30, 1998 from
12.4% for the six months ended June 30, 1997. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold
during the six months ended June 30, 1998 as compared to the six months
ended June 30, 1997.
The I-E Partnership recognized a non-cash charge against earnings of
$291,690 during the six months ended June 30, 1997. Of this amount,
$59,728 was related to the 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 six months ended June 30, 1998.
General and administrative expenses decreased $9,724 (3.4%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of oil and gas sales, these expenses increased to
13.0% for the six months ended June 30, 1998 from 8.8% for the six months
42
ended June 30, 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 June 30, 1998 totaling $51,797,552 or
123.80% of Limited Partners' capital contributions.
I-F PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 1997.
Three Months Ended June 30,
---------------------------
1998 1997
-------- --------
Oil and gas sales $320,633 $528,523
Oil and gas production expenses $139,586 $203,961
Barrels produced 8,327 9,760
Mcf produced 107,539 145,741
Average price/Bbl $ 11.74 $ 18.21
Average price/Mcf $ 2.07 $ 2.41
As shown in the table above, total oil and gas sales decreased $207,890
(39.3%) for the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. Of this decrease, approximately $26,000 and
$92,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $54,000 and $36,000, respectively, were related to
decreases in the average prices of oil and gas sold. Volumes of oil and
gas sold decreased 1,433 barrels and 38,202 Mcf, respectively, for the
three months ended June 30, 1998 as compared to the three months ended
June 30, 1997. The decrease in volumes of oil sold resulted primarily from
(i) normal declines in production due to diminishing reserves on two
significant wells during the three months ended June 30, 1998 and (ii) the
sale of one significant well during 1997. The decrease in volumes of gas
sold resulted primarily from (i) a negative prior period volume adjustment
by a purchaser on one significant well during the three months ended June
30, 1998 and (ii) the sale of several wells during the six months ended
June 30, 1998. Average oil and gas prices decreased to $11.74 per barrel
and $2.07 per Mcf, respectively, for the three months ended June 30, 1998
from $18.21 per barrel and $2.41 per Mcf, respectively, for the three
months ended June 30, 1997.
As discussed in Liquidity and Capital Resources above, the I-F Partnership
sold certain oil and gas properties during the three months ended June 30,
1998 and recognized a $45,507 gain on such sales. Similar sales during the
three months ended June 30, 1997 resulted in the I-F Partnership
recognizing similar gains totaling $46,356.
43
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $64,375 (31.6%) for the three months ended
June 30, 1998 as compared to the three months ended June 30, 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 43.5% for the
three months ended June 30, 1998 from 38.6% for the three months ended
June 30, 1997. This percentage increase was primarily due to the decreases
in the average prices of oil and gas sold during the three months ended
June 30, 1998 as compared to the three months ended June 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $15,822 (25.0%) for the three months ended June 30, 1998 as
compared to the three months ended June 30, 1997. This decrease resulted
primarily from the decreases in volumes of oil and gas sold during the
three months ended June 30, 1998 as compared to the three months ended
June 30, 1997. As a percentage of oil and gas sales, this expense
increased to 14.8% for the three months ended June 30, 1998 from 12.0% for
the three months ended June 30, 1997. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold
during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997.
General and administrative expenses decreased $6,145 (12.7%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease was primarily due to a decrease in professional fees
for the three months ended June 30, 1998 as compared to the three months
ended June 30, 1997. As a percentage of oil and gas sales, these expenses
increased to 13.2% for the three months ended June 30, 1998 from 9.2% for
the three months ended June 30, 1997. This percentage increase was
primarily due to the decrease in oil and gas sales discussed above.
44
SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1997.
Six Months Ended June 30,
-------------------------
1998 1997
-------- ----------
Oil and gas sales $686,935 $1,128,873
Oil and gas production expenses $260,496 $ 372,243
Barrels produced 16,194 19,522
Mcf produced 220,708 291,400
Average price/Bbl $ 13.32 $ 20.65
Average price/Mcf $ 2.14 $ 2.49
As shown in the table above, total oil and gas sales decreased $441,938
(39.1%) for the six months ended June 30, 1998 as compared to the six
months ended June 30, 1997. Of this decrease, approximately $69,000 and
$176,000, respectively, were related to decreases in volumes of oil and
gas sold and approximately $119,000 and $78,000, respectively, were
related to decreases in the average prices of oil and gas sold. Volumes of
oil and gas sold decreased 3,328 barrels and 70,692 Mcf, respectively, for
the six months ended June 30, 1998 as compared to the six months ended
June 30, 1997. The decrease in volumes of oil sold resulted primarily from
(i) normal declines in production on several significant wells due to
diminishing reserves during the six months ended June 30, 1998 and (ii)
the sale of one significant well in 1997. The decrease in volumes of gas
sold resulted primarily from (i) negative prior period volume adjustments
on one significant well made by a purchaser during the six months ended
June 30, 1998 and (ii) positive prior period volume adjustments on two
significant wells made by a purchaser during the six months ended June 30,
1997. Average oil and gas prices decreased to $13.32 per barrel and $2.14
per Mcf, respectively, for the six months ended June 30, 1998 from $20.65
per barrel and $2.49 per Mcf, respectively, for the six months ended June
30, 1997.
As discussed in Liquidity and Capital Resources above, the I-F Partnership
sold certain oil and gas properties during the six months ended June 30,
1998 and recognized a $333,266 gain on such sales. Similar sales during
the three months ended June 30, 1997 resulted in the I-F Partnership
recognizing similar gains totaling $46,356.
45
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $111,747 (30.0%) for the six months ended June
30, 1998 as compared to the six months ended June 30, 1997. This decrease
resulted primarily from (i) the decreases in volumes of oil and gas sold
during the six months ended June 30, 1998 as compared to the six months
ended June 30, 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 37.9% for the six months
ended June 30, 1998 from 33.0% for the six months ended June 30, 1997.
This percentage increase was primarily due to the decreases in the average
prices of oil and gas sold during the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $30,754 (24.3%) for the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997. This decrease resulted
primarily from the decreases in volumes of oil and gas sold during the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of oil and gas sales, this expense increased to
14.0% for the six months ended June 30, 1998 from 11.2% for the six months
ended June 30, 1997. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold during the six months
ended June 30, 1998 as compared to the six months ended June 30, 1997.
The I-F Partnership recognized a non-cash charge against earnings of
$114,631 during the six months ended June 30, 1997. Of this amount,
$20,908 was related to the 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 six months ended June 30, 1998.
General and administrative expenses decreased $3,383 (3.5%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of oil and gas sales, these expenses increased to
13.7% for the six months ended June 30, 1998 from 8.6% for the six months
46
ended June 30, 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 June 30,
1998 totaling $17,512,664 or 122.29% of Limited Partners' capital
contributions.
47
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule containing summary financial
information extracted from the I-B Partnership's
financial statements as of June 30, 1998 and for the six
months ended June 30, 1998, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the I-C Partnership's
financial statements as of June 30, 1998 and for the six
months ended June 30, 1998, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the I-D Partnership's
financial statements as of June 30, 1998 and for the six
months ended June 30, 1998, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the I-E Partnership's
financial statements as of June 30, 1998 and for the six
months ended June 30, 1998, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the I-F Partnership's
financial statements as of June 30, 1998 and for the six
months ended June 30, 1998, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
None.
48
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: August 13, 1998 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: August 13, 1998 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
49
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 June 30, 1998 and for the six months
ended June 30, 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 June 30, 1998 and for the six months
ended June 30, 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 June 30, 1998 and for the six months
ended June 30, 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 June 30, 1998 and for the six months
ended June 30, 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 June 30, 1998 and for the six months
ended June 30, 1998, filed herewith.
All other exhibits are omitted as inapplicable.
50