UNITED STATES
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 quarterly period ended September 30, 2000
Commission File No. 33-26097-07
PARKER & PARSLEY 90-B, L.P.
-----------------------------
(Exact name of Registrant as specified in its charter)
Delaware 75-2329287
----------------------------------------- ---------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1400 Williams Square West, 5205 N. O'Connor Blvd., Irving, Texas 75039
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(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code : (972) 444-9001
Not applicable (Former name, former address and former fiscal year,
if changed since last report)
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 / /
PARKER & PARSLEY 90-B, L.P.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of September 30, 2000 and
December 31, 1999................................... 3
Statements of Operations for the three and nine
months ended September 30, 2000 and 1999............. 4
Statement of Partners' Capital for the nine months
ended September 30, 2000............................. 5
Statements of Cash Flows for the nine months ended
September 30, 2000 and 1999.......................... 6
Notes to Financial Statements.......................... 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.................. 7
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K....................... 10
27.1 Financial Data Schedule
Signatures............................................. 11
2
PARKER & PARSLEY 90-B, L.P.
(A Delaware Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
September 30, December 31,
2000 1999
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash $ 381,907 $ 311,017
Accounts receivable - oil and gas sales 540,563 441,577
----------- -----------
Total current assets 922,470 752,594
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 26,107,973 26,069,426
Accumulated depletion (21,739,383) (21,529,251)
----------- -----------
Net oil and gas properties 4,368,590 4,540,175
----------- -----------
$ 5,291,060 $ 5,292,769
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 120,822 $ 66,334
Partners' capital:
Managing general partner 51,706 52,268
Limited partners (32,264 interests) 5,118,532 5,174,167
----------- -----------
5,170,238 5,226,435
----------- -----------
$ 5,291,060 $ 5,292,769
=========== ===========
The financial information included as of September 30, 2000 has been prepared by
the managing general partner without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
3
PARKER & PARSLEY 90-B, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
----------------------- ------------------------
2000 1999 2000 1999
---------- --------- ---------- ----------
Revenues:
Oil and gas $1,098,786 $ 693,518 $2,962,304 $1,641,782
Interest 9,281 4,442 22,423 9,674
Gain on disposition of assets - - 5,487 -
--------- -------- --------- ---------
1,108,067 697,960 2,990,214 1,651,456
--------- -------- --------- ---------
Costs and expenses:
Oil and gas production 368,259 313,095 1,120,284 954,714
General and administrative 37,886 27,459 96,797 60,266
Depletion 67,785 75,103 210,132 321,649
--------- -------- --------- ---------
473,930 415,657 1,427,213 1,336,629
--------- -------- --------- ---------
Net income $ 634,137 $ 282,303 $1,563,001 $ 314,827
========= ======== ========= =========
Allocation of net income:
Managing general partner $ 6,341 $ 2,823 $ 15,630 $ 3,148
========= ======== ========= =========
Limited partners $ 627,796 $ 279,480 $1,547,371 $ 311,679
========= ======== ========= =========
Net income per limited
partnership interest $ 19.46 $ 8.66 $ 47.96 $ 9.66
========= ======== ========= =========
The financial information included herein has been prepared by
managing general partner without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
4
PARKER & PARSLEY 90-B, L.P.
(A Delaware Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
----------- ----------- -----------
Balance at January 1, 2000 $ 52,268 $ 5,174,167 $ 5,226,435
Distributions (16,192) (1,603,006) (1,619,198)
Net income 15,630 1,547,371 1,563,001
--------- ---------- ----------
Balance at September 30, 2000 $ 51,706 $ 5,118,532 $ 5,170,238
========= ========== ==========
The financial information included herein has been prepared by
managing general partner without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
5
PARKER & PARSLEY 90-B, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended
September 30,
-------------------------
2000 1999
---------- ----------
Cash flows from operating activities:
Net income $1,563,001 $ 314,827
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 210,132 321,649
Gain on disposition of assets (5,487) -
Changes in assets and liabilities:
Accounts receivable (98,986) (166,168)
Accounts payable 54,488 39,208
--------- ---------
Net cash provided by operating activities 1,723,148 509,516
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (38,547) (25,539)
Proceeds from asset dispositions 5,487 -
--------- ---------
Net cash used in investing activities (33,060) (25,539)
--------- ---------
Cash flows used in financing activities:
Cash distributions to partners (1,619,198) (370,476)
---------- ---------
Net increase in cash 70,890 113,501
Cash at beginning of period 311,017 211,469
--------- ---------
Cash at end of period $ 381,907 $ 324,970
========= =========
The financial information included herein has been prepared by
the managing general partner without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
6
PARKER & PARSLEY 90-B, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)
Note 1. Organization and nature of operations
Parker & Parsley 90-B, L.P. (the "Partnership") is a limited partnership
organized in 1990 under the laws of the State of Delaware.
The Partnership engages in oil and gas development and production in Texas and
is not involved in any industry segment other than oil and gas.
Note 2. Basis of presentation
In the opinion of management, the unaudited financial statements of the
Partnership as of September 30, 2000 and for the three and nine months ended
September 30, 2000 and 1999 include all adjustments and accruals consisting only
of normal recurring accrual adjustments which are necessary for a fair
presentation of the results for the interim period. These interim results are
not necessarily indicative of results for a full year. Certain reclassifications
may have been made to the September 30, 1999 financial statements to conform to
the September 30, 2000 financial statement presentations.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted in this Form 10-Q pursuant to the rules and
regulations of the Securities and Exchange Commission. The financial statements
should be read in conjunction with the financial statements and the notes
thereto contained in the Partnership's Report on Form 10-K for the year ended
December 31, 1999, as filed with the Securities and Exchange Commission, a copy
of which is available upon request by writing to Rich Dealy, Vice President and
Chief Accounting Officer, 5205 North O'Connor Boulevard, 1400 Williams Square
West, Irving, Texas 75039-3746.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (1)
Results of Operations
Nine months ended September 30, 2000 compared with nine months ended September
30, 1999
Revenues:
The Partnership's oil and gas revenues increased 80% to $2,962,304 for the nine
months ended September 30, 2000 as compared to $1,641,782 for the same period in
1999. The increase in revenues resulted from higher average prices received,
7
offset by a decrease in production. For the nine months ended September 30,
2000, 73,699 barrels of oil, 35,181 barrels of natural gas liquids ("NGLs") and
135,699 mcf of gas were sold, or 131,497 barrel of oil equivalents ("BOEs"). For
the nine months ended September 30, 1999, 73,259 barrels of oil, 35,722 barrels
of NGLs and 146,719 mcf of gas were sold, or 133,434 BOEs.
The average price received per barrel of oil increased $13.44, or 88%, from
$15.24 for the nine months ended September 30, 1999 to $28.68 for the same
period in 2000. The average price received per barrel of NGLs increased $6.33,
or 76%, from $8.33 during the nine months ended September 30, 1999 to $14.66 for
the same period in 2000. The average price received per mcf of gas increased 58%
from $1.55 for the nine months ended September 30, 1999 to $2.45 for the same
period in 2000 The market price for oil and gas has been extremely volatile in
the past decade and management expects a certain amount of volatility to
continue in the foreseeable future. The Partnership may therefore sell its
future oil and gas production at average prices lower or higher than that
received during the nine months ended September 30, 2000.
A gain on disposition of assets of $5,487 was recognized during the nine months
ended September 30, 2000 from the sale of equipment on one well.
Costs and Expenses:
Total costs and expenses increased to $1,427,213 for the nine months ended
September 30, 2000 as compared to $1,336,629 for the same period in 1999, an
increase of $90,584, or 7%. The increase was due to increases in production
costs and general and administrative expenses ("G&A"), offset by a decline in
depletion.
Production costs were $1,120,284 for the nine months ended September 30, 2000
and $954,714 for the same period in 1999, resulting in an increase of $165,570,
or 17%. The increase was primarily due to higher production taxes of $98,587
associated with higher oil and gas prices and additional well maintenance costs
incurred to stimulate well production of $49,003.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A
increased, in aggregate, 61% from $60,266 for the nine months ended September
30, 1999 to $96,797 for the same period in 2000 primarily due to a higher
allocation of the managing general partner's G&A being allocated (limited to 3%
of oil and gas revenues) as a result of increased oil and gas revenues.
Depletion was $210,132 for the nine months ended September 30, 2000 compared to
$321,649 for the same period in 1999, representing a decrease of $111,517, or
35%. This decrease was due to an increase in proved reserves due to higher
commodity prices as compared to the same period in 1999 and a reduction in the
Partnership's net depletable basis from charges taken in accordance with
Statement of Financial Accounting Standards No. 121, "Accounting for the
Impairment of Long- Lived Assets and for Long-Lived Assets to be Disposed Of"
("SFAS 121") during the fourth quarter of 1999, offset by an increase in oil
production of 440 barrels for the nine months ended September 30, 2000 compared
to the same period in 1999.
8
Three months ended September 30, 2000 compared with three months ended September
30, 1999
Revenues:
The Partnership's oil and gas revenues increased 58% to $1,098,786 for the three
months ended September 30, 2000 as compared to $693,518 for the same period in
1999. The increase in revenues resulted from higher average prices received and
an increase in production. For the three months ended September 30, 2000, 25,000
barrels of oil, 11,842 barrels of NGLs and 46,163 mcf of gas were sold, or
44,536 BOEs. For the three months ended September 30, 1999, 24,158 barrels of
oil, 12,210 barrels of NGLs and 48,207 mcf of gas were sold, or 44,403 BOEs.
The average price received per barrel of oil increased $11.21, or 58%, from
$19.33 for the three months ended September 30, 1999 to $30.54 for the same
period in 2000. The average price received per barrel of NGLs increased $4.69,
or 42%, from $11.25 during the three months ended September 30, 1999 to $15.94
for the same period in 2000. The average price received per mcf of gas increased
71% from $1.85 during the three months ended September 30, 1999 to $3.17 for the
same period in 2000.
Costs and Expenses:
Total costs and expenses increased to $473,930 for the three months ended
September 30, 2000 as compared to $415,657 for the same period in 1999, an
increase of $58,273, or 14%. This increase was due to increases in production
costs and G&A, offset by a decline in depletion.
Production costs were $368,259 for the three months ended September 30, 2000 and
$313,095 for the same period in 1999 resulting in a $55,164 increase, or 18%.
The increase was primarily due to higher production taxes of $34,689 associated
with higher oil and gas prices and additional well maintenance costs incurred to
stimulate well production of $5,790.
During this period, G&A increased, in aggregate, 38% from $27,459 for the three
months ended September 30, 1999 to $37,886 for the same period in 2000 primarily
due to a higher allocation of the managing general partner's G&A being allocated
(limited to 3% of oil and gas revenues) as a result of increased oil and gas
revenues.
Depletion was $67,785 for the three months ended September 30, 2000 compared to
$75,103 for the same period in 1999, representing a decrease of $7,318, or 10%.
This decrease was attributable to an increase in proved reserves as a result of
higher commodity prices as compared to the same period in 1999 and a reduction
in the Partnership's net depletable basis from charges taken in accordance with
SFAS 121 during the fourth quarter of 1999, offset by an increase in oil
production of 842 barrels for the three months ended September 30, 2000 compared
to the same period in 1999.
9
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $1,213,632 during the nine
months ended September 30, 2000 from the same period ended September 30, 1999.
This increase was due to an increase in oil and gas sales receipts of
$1,400,453, offset by increases in production costs paid of $153,896 and G&A
expenses paid of $32,925.
Net Cash Used in Investing Activities
The Partnership's investing activities during the nine months ended September
30, 2000 and 1999 included expenditures related to equipment upgrades on various
oil and gas properties.
Proceeds from asset dispositions of $5,487 received during the nine months ended
September 30, 2000 were derived from the sale of equipment on one well.
Net Cash Used in Financing Activities
For the nine months ended September 30, 2000, cash distributions to the partners
were $1,619,198, of which $16,192 was distributed to the managing general
partner and $1,603,006 to the limited partners. For the same period ended
September 30, 1999, cash distributions to the partners were $370,476, of which
$3,704 was distributed to the managing general partner and $366,772 to the
limited partners.
- ---------------
(1) "Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations" contains forward looking statements that involve
risks and uncertainties. Accordingly, no assurances can be given that the
actual events and results will not be materially different than the
anticipated results described in the forward looking statements.
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27.1 Financial Data Schedule
(b) Reports on Form 8-K - none
10
PARKER & PARSLEY 90-B, L.P.
(A Delaware Limited Partnership)
S I G N A T U R E S
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.
PARKER & PARSLEY 90-B, L.P.
By: Pioneer Natural Resources USA, Inc.,
Managing General Partner
Dated: November 8, 2000 By: /s/ Rich Dealy
------------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
11