UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
/ x / Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 1997
or
/ / Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from _______ to _______
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)
303 West Wall, Suite 101, Midland, Texas 79701
(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code : (915) 683-4768
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 / /
Page 1 of 11 pages.
Exhibit index on page 10.
PARKER & PARSLEY 90-B, L.P.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of June 30, 1997 and
December 31, 1996 ..................................... 3
Statements of Operations for the three and six
months ended June 30, 1997 and 1996....................... 4
Statement of Partners' Capital for the six months
ended June 30, 1997....................................... 5
Statements of Cash Flows for the six months ended
June 30, 1997 and 1996.................................... 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. 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
June 30, December 31,
1997 1996
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $341,570 at June 30 and
$332,819 at December 31 $ 341,820 $ 333,006
Accounts receivable - oil and gas sales 320,643 564,298
----------- -----------
Total current assets 662,463 897,304
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 25,951,142 25,934,794
Accumulated depletion (17,934,572) (17,601,394)
----------- -----------
Net oil and gas properties 8,016,570 8,333,400
----------- -----------
$ 8,679,033 $ 9,230,704
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 92,437 $ 68,524
Partners' capital:
Managing general partner 85,870 91,626
Limited partners (32,264 interests) 8,500,726 9,070,554
----------- -----------
8,586,596 9,162,180
----------- -----------
$ 8,679,033 $ 9,230,704
=========== ===========
The financial information included as of June 30, 1997 has been prepared by
management 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 Six months ended
June 30, June 30,
--------------------- -----------------------
1997 1996 1997 1996
--------- --------- ---------- ----------
Revenues:
Oil and gas $ 714,251 $ 905,148 $1,596,212 $1,725,231
Interest 6,654 4,875 12,635 8,661
Salvage income from equipment
disposals - - - 7,405
-------- -------- --------- ---------
720,905 910,023 1,608,847 1,741,297
-------- -------- --------- ---------
Costs and expenses:
Oil and gas production 354,861 350,763 699,620 713,010
General and administrative 22,202 30,208 51,037 54,810
Depletion 165,251 176,025 333,178 360,884
Loss on abandoned property - 2,017 - 2,017
-------- -------- --------- ---------
542,314 559,013 1,083,835 1,130,721
-------- -------- --------- ---------
Net income $ 178,591 $ 351,010 $ 525,012 $ 610,576
======== ======== ========= =========
Allocation of net income:
Managing general partner $ 1,786 $ 3,510 $ 5,250 $ 6,106
======== ======== ========= =========
Limited partners $ 176,805 $ 347,500 $ 519,762 $ 604,470
======== ======== ========= =========
Net income per limited
partnership interest $ 5.48 $ 10.78 $ 16.11 $ 18.74
======== ======== ========= =========
Distributions per limited
partnership interest $ 14.45 $ 13.59 $ 33.77 $ 24.80
======== ======== ========= =========
The financial information included herein has been prepared by
management 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, 1997 $ 91,626 $ 9,070,554 $ 9,162,180
Distributions (11,006) (1,089,590) (1,100,596)
Net income 5,250 519,762 525,012
-------- ---------- ----------
Balance at June 30, 1997 $ 85,870 $8,500,726 $ 8,586,596
======== ========== ==========
The financial information included herein has been prepared by
management 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)
Six months ended
June 30,
------------------------
1997 1996
----------- ----------
Cash flows from operating activities:
Net income $ 525,012 $ 610,576
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 333,178 360,884
Salvage income from equipment disposals - (7,405)
Loss on abandoned property - 2,017
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 243,655 (44,196)
Increase (decrease) in accounts payable 23,913 (51,637)
---------- ---------
Net cash provided by operating activities 1,125,758 870,239
---------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (16,348) (8,426)
Proceeds from salvage income on equipment disposals - 7,405
---------- ---------
Net cash used in investing activities (16,348) (1,021)
---------- ---------
Cash flows from financing activities:
Cash distributions to partners (1,100,596) (808,379)
---------- ---------
Net increase in cash and cash equivalents 8,814 60,839
Cash and cash equivalents at beginning of period 333,006 289,053
--------- ---------
Cash and cash equivalents at end of period $ 341,820 $ 349,892
========== =========
The financial information included herein has been prepared by
management 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
June 30, 1997
(Unaudited)
Note 1. Basis of presentation
In the opinion of management, the unaudited financial statements of Parker &
Parsley 90-B, L.P. (the "Partnership") as of June 30, 1997 and for the three and
six months ended June 30, 1997 and 1996 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 information and footnote disclosure 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, 1996, as filed with the Securities and Exchange Commission, a copy
of which is available upon request by writing to Rich Dealy, Controller, 303
West Wall, Suite 101, Midland, Texas 79701.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (1)
Results of Operations
Six months ended June 30, 1997 compared with six months ended
June 30, 1996
Revenues:
The Partnership's oil and gas revenues decreased 7% to $1,596,212 from
$1,725,231 for the six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. The decrease in revenues resulted from a 9% decline in
barrels of oil produced and sold, an 8% decline in mcf of gas produced and sold
and a decrease in the average price received per barrel of oil, offset by a 6%
increase in the average price received per mcf of gas. For the six months ended
June 30, 1997, 59,044 barrels of oil were sold compared to 64,600 for the same
period in 1996, a decrease of 5,556 barrels. For the six months ended June 30,
1997, 161,148 mcf of gas were sold compared to 175,687 for the same period in
1996, a decrease of 14,539 mcf. The decreases in production volumes were
primarily due to the decline characteristics of the Partnership's oil and gas
properties. Management expects a certain amount of decline in production to
continue in the future until the Partnership's economically recoverable reserves
are fully depleted.
7
The average price received per barrel of oil decreased slightly from $20.47 for
the six months ended June 30, 1996 to $20.40 for the same period in 1997,
while the average price received per mcf of gas increased from $2.29 for the six
months ended June 30, 1996 to $2.43 for the same period in 1997. 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 six months ended
June 30, 1997.
Salvage income totaling $7,405 was received during the six months ended June 30,
1996, attributable to credits received from the disposal of oil and gas
equipment on one well that was plugged and abandoned in a prior year.
Costs and Expenses:
Total costs and expenses decreased to $1,083,835 for the six months ended June
30, 1997 as compared to $1,130,721 for the same period in 1996, a decrease of
$46,886, or 4%. The decrease was due to declines in depletion, production costs,
general and administrative expenses ("G&A") and loss on abandoned property.
Production costs were $699,620 for the six months ended June 30, 1997 and
$713,010 for the same period in 1996, resulting in a $13,390 decrease. The
decrease was primarily the result of a decline in workover costs.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A
decreased, in aggregate, 7% from $54,810 for the six months ended June 30, 1996
to $51,037 for the same period in 1997.
Depletion was $333,178 for the six months ended June 30, 1997 compared to
$360,884 for the same period in 1996. This represented a decrease in depletion
of $27,706, or 8%.
A loss on abandoned property of $2,017 was recognized during the six months
ended June 30, 1996. This loss resulted from the abandonment of a saltwater
disposal well.
Three months ended June 30, 1997 compared with three months ended
June 30, 1996
Revenues:
The Partnership's oil and gas revenues decreased 21% to $714,251 from $905,148
for the three months ended June 30, 1997 as compared to the three months ended
June 30, 1996. The decrease in revenues resulted from a 15% decrease in the
average price received per barrel of oil, an 11% decline in mcf of gas produced
and sold, a 10% decline in barrels of oil produced and sold and a 5% decrease in
the average price received per mcf of gas. For the three months ended June 30,
1997, 28,608 barrels of oil were sold compared to 31,694 for the same period in
8
1996, a decrease of 3,086 barrels. For the three months ended June 30, 1997,
80,021 mcf of gas were sold compared to 89,543 for the same period in 1996, a
decrease of 9,522 mcf. The decreases in production volumes were due to the
decline characteristics of the Partnership's oil and gas properties.
The average price received per barrel of oil decreased $3.20 from $21.95 for the
three months ended June 30, 1996 to $18.75 for the same period in 1997, while
the average price received per mcf of gas decreased from $2.34 during the three
months ended June 30, 1996 to $2.22 in 1997.
Costs and Expenses:
Total costs and expenses decreased to $542,314 for the three months ended June
30, 1997 as compared to $559,013 for the same period in 1996, a decrease of
$16,699, or 3%. This decrease was due to declines in depletion, G&A and loss on
abandoned property, offset by an increase in production costs..
Production costs were $354,861 for the three months ended June 30, 1997 and
$350,763 for the same period in 1996 resulting in a $4,098 increase. The
increase was the result of additional well repair and maintenance, offset by a
decline in workover costs.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A
decreased, in aggregate, 27% from $30,208 for the three months ended June 30,
1996 to $22,202 for the same period in 1997.
Depletion was $165,251 for the three months ended June 30, 1997 compared to
$176,025 for the same period in 1996. This represented a decrease in depletion
of $10,774, or 6%.
A loss on abandoned property of $2,017 was recognized during the three months
ended June 30, 1996. This loss resulted from the abandonment of a saltwater
disposal well.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $255,519 during the six
months ended June 30, 1997 from the same period ended June 30, 1996. This
increase was primarily due to an increase in oil and gas sales receipts and a
decrease in production costs paid.
Net Cash Used in Investing Activities
The Partnership's principal investing activities for the six months ended June
30, 1997 and 1996 included expenditures related to equipment replacement on
various oil and gas properties.
9
Proceeds of $7,405 were received during the six months ended June 30, 1996 from
the sale of oil and gas equipment on one well abandoned in a prior year.
Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1997 to cover
distributions to the partners of $1,100,596 of which $11,006 was distributed to
the managing general partner and $1,089,590 to the limited partners. For the
same period ended June 30, 1996, cash was sufficient for distributions to the
partners of $808,379 of which $8,073 was distributed to the managing general
partner and $800,306 to the limited partners.
It is expected that future net cash provided by operating activities will be
sufficient for any capital expenditures and any distributions. As the production
from the properties declines, distributions are also expected to decrease.
- ---------------
(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. Financial Data Schedule
(b) 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: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: August 11, 1997 By: /s/ Rich Dealy
---------------------------------
Rich Dealy, Controller of PPUSA
11