United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 0-16574
ENEX OIL & GAS INCOME PROGRAM III - SERIES 6, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0214443
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 200, Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices)
Issuer's telephone number:
(713) 358-8401
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX OIL & GAS INCOME PROGRAM III - SERIES 6, L.P.
BALANCE SHEET
JUNE 30,
ASSETS 1995
(Unaudited)
CURRENT ASSETS:
Cash $ 1,816
Accounts receivable - oil & gas sales 41,050
Other current assets 3,011
Total current assets 45,877
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipme 3,350,894
Less accumulated depreciation and depletion 2,832,430
Property, net 518,464
TOTAL $ 564,341
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 17,652
Payable to affiliated limited partnership 1,013
Payable to general partner 58,847
Total current liabilities 77,512
NONCURRENT PAYABLE TO GENERAL PARTNER 134,779
PARTNERS' CAPITAL:
Limited partners 302,491
General partner 49,559
Total partners'capital 352,050
TOTAL $ 564,341
See accompanying notes to financial statements.
I-1
ENEX OIL & GAS INCOME PROGRAM III - SERIES 6, L.P.
STATEMENTS OF OPERATIONS
(UNAUDITED) QUARTER ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1995 1994 1995 1994
REVENUES:
Oil and gas sales $ 87,473 $ 107,584 $ 189,491 $ 205,191
EXPENSES:
Depreciation and depletion 34,050 44,018 74,897 87,987
Lease operating expenses 49,708 38,265 96,024 88,383
Production taxes 5,229 5,524 10,967 10,721
General and administrative 15,536 13,699 30,313 28,889
Total expenses 104,523 101,506 212,201 215,980
NET INCOME (LOSS) $ (17,050) $ 6,078 $ (22,710) $ (10,789)
See accompanying notes to financial statements.
I-2
ENEX OIL AND GAS INCOME PROGRAM III - SERIES 6, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30, JUNE 30,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) $ (22,710) $ (10,789)
Adjustments to reconcile net (loss) to net cash
provided by operating activities:
Depreciation, depletion and amortization 74,897 87,987
(Increase) decrease in:
Accounts receivable - oil & gas sales 75 (2,530)
Other current assets (981) (3,275)
Increase (decrease) in:
Accounts payable (6,303) (17,630)
Payable to affiliated limited partnership 1,013 -
Payable to general partner (10,375) 18,890
Total adjustments 58,326 83,442
Net cash provided by operating activities 35,616 72,653
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs (1,100) (19,803)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (35,948) (43,524)
NET INCREASE (DECREASE) IN CASH (1,432) 9,326
CASH AT BEGINNING OF YEAR 3,248 15,952
CASH AT END OF PERIOD $ 1,816 $ 25,278
See accompanying notes to financial statements.
I-3
ENEX OIL & GAS INCOME PROGRAM III - SERIES 6, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
1. The interim financial information included herein is unaudited;
however, such information reflects all adjustments (consisting solely
of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of results for the
interim periods.
2. A cash distribution was made to the limited partners of the Company in
the amount of $16,048, representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on April 30, 1995.
Item 2. Management's Discussion and Analysis or Plan of Operation.
Second Quarter 1995 Compared to Second Quarter 1994
Oil and gas sales for the second quarter decreased from $107,584 in 1994 to
$87,473 in 1995. This represents a decrease of $20,111 (19%). Oil sales
decreased by $6,387 (9%). A 24% decrease in oil production reduced sales
by $16,752. This decrease was partially offset by a 19% increase in the
average oil sales price. Gas sales decreased by $13,724 (37%). A 30%
decrease in the average gas sales price decreased sales by $10,017. A 10%
decrease in gas production reduced sales by an additional $3,707. The
changes in the average sales prices correspond with changes in the overall
market for the sale of oil and gas. The decrease in oil production was
primarily a result of the shut-in of production from the Corkscrew
acquisition for rod repairs, which were successfully completed in the
second quarter of 1995, coupled with natural production declines. The
decrease in gas production was primarily the result of natural production
declines.
Lease operating expenses increased from $38,265 in 1994 to $49,708 in 1995.
The increase of $11,443 (30%) is primarily due to workover expenses
incurred on the Corkscrew acquisition in 1995.
Depreciation and depletion expense decreased from $44,018 in the second
quarter of 1994 to $34,050 in the second quarter of 1995. This represents
a decrease of $9,968 (23%). The changes in production, noted above, caused
depreciation and depletion expense to decrease by $8,248, while a 5%
decrease in the depletion rate reduced depreciation and depletion expense
by an additional $1,720. This rate decrease was primarily due to an upward
revision of the oil and gas reserves at December 31, 1994.
General and administrative expenses increased from $13,699 in 1994 to
$15,536 in 1995. This increase of $1,837 (13%) is primarily due to more
staff time being required to manage the Company's operations.
First Six Months in 1995 Compared to First Six Months in 1994
Oil and gas sales for the first six months decreased from $205,191 in 1994
to $189,491 in 1995. This represents a decrease of $15,700 (8%). Oil sales
increased by $16,772 (14%). A 22% increase in average oil sales price
increased sales by $25,192. This increase was partially offset by a 7%
decrease in oil production. Gas sales decreased by $32,472 (40%). A 23%
decrease in the average gas sales price decreased sales by $14,737. A 22%
decrease in gas production reduced sales by an additional $17,735. The
changes in the average sales prices correspond with changes in the overall
market for the sale of oil and gas. The changes in oil and gas production
were primarily a result of natural production declines.
Lease operating expenses increased from $88,383 in 1994 to $96,024 in 1995.
The increase of $7,641 (9%) is primarily due to workover expenses incurred
on the Corkscrew acquisition in 1995.
Depreciation and depletion expense decreased from $87,987 in the first six
months of 1994 to $74,897 in the first six months of 1995. This represents
a decrease of $13,090 (15%). The decline in production, noted above,
caused depreciation and depletion expense to decrease by $11,082, while a
3% decrease in the depletion rate reduced depreciation and depletion
expense by an additional $2,008. This rate decrease was primarily a result
of an upward revision of the oil and gas reserves at December 31, 1994.
General and administrative expenses increased from $28,889 in 1994 to
$30,313 in 1995. This increase of $1,424 (5%) is primarily due to more
staff time being required to manage the Company's operations.
CAPITAL RESOURCES AND LIQUIDITY
The Company's cash flow is a direct result of the amount of net proceeds
realized from the sale of oil and gas production after the payment of its
debt obligations. Accordingly, the changes in cash flow from 1994 to 1995
are primarily due to the changes in oil and gas sales described above. It
is the general partner's intention to distribute substantially all of the
Company's remaining available cash flow to the Company's partners.
The Company will continue to recover its reserves and distribute to the
limited partners the net proceeds realized from the sale of oil and gas
production after the payment of its debt obligations. Distribution amounts
are subject to change if net revenues are greater or less than expected.
Nonetheless, the general partner believes the Company will continue to have
sufficient cash flow to fund operations and to maintain a regular pattern
of distributions.
As of June 30, 1995, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
PART II. OTHER INFORMATION
Item 1.Legal Proceedings.
None
Item 2.Changes in Securities.
None
Item 3.Defaults Upon Senior Securities.
Not Applicable
Item 4.Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5.Other Information.
Not Applicable
Item 6.Exhibits and Reports on Form 8-K.
(a) There are no exhibits to this report.
(b) The Company filed no reports on Form 8-K during the quarter
ended June 30, 1995.
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM III - SERIES 6, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By: /s/ R. E. Densford
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
August 11, 1995 By: /s/ James A. Klein
James A. Klein
Controller and Chief
Accounting Officer
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM III - SERIES 6, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By:
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
August 11, 1995 By:
James A. Klein
Controller and Chief
Accounting Officer