SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 1997
Commission File Number:
P-1: 0-17800 P-3: 0-18306 P-5: 0-18637
P-2: 0-17801 P-4: 0-18308 P-6: 0-18937
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-1 LIMITED PARTNERSHIP
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-2 LIMITED PARTNERSHIP
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-3
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-4
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-6
-------------------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
P-1: 73-1330245
P-2: 73-1330625
P-1 and P-2: P-3: 73-1336573
Texas P-4: 73-1341929
P-3 through P-6: P-5: 73-1353774
Oklahoma P-6: 73-1357375
- -------------------------------- ----------------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or
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 the filing requirements for the past 90
days.
Yes X No
---- ----
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-1 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-1
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 305,606 $ 293,296
Accounts receivable:
Net Profits 188,330 257,458
---------- ----------
Total current assets $ 493,936 $ 550,754
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,723,882 2,680,005
---------- ----------
$2,217,818 $3,230,759
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 75,648) ($ 62,666)
Limited Partners, issued and
outstanding, 108,074 units 2,239,466 3,293,425
---------- ----------
Total Partners' capital $2,217,818 $3,230,759
---------- ----------
$2,217,818 $3,230,759
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-2-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-1 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-1
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Net Profits $279,897 $310,326
Interest income 2,262 1,805
Gain on sale of Net Profits
Interests - 631
-------- --------
$282,159 $312,762
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 60,683 $ 95,330
Impairment provision 902,042 -
General and administrative (Note 2) 34,764 35,101
-------- --------
$997,489 $130,431
-------- --------
NET INCOME (LOSS) ($715,330) $182,331
======== ========
GENERAL PARTNER - NET INCOME $ 2,629 $ 12,840
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($717,959) $169,491
======== ========
NET INCOME (LOSS) per unit ($ 6.64) $ 1.57
======== ========
UNITS OUTSTANDING 108,074 108,074
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-3-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-1 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-1
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($715,330) $182,331
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 60,683 95,330
Impairment provision 902,042 -
Gain on sale of Net Profits
Interests - ( 631)
(Increase) decrease in accounts
receivable 69,128 ( 58,508)
-------- --------
Net cash provided by operating
activities $316,523 $218,522
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 6,602) ($ 3,139)
Proceeds from sale of Net Profits
Interests - 631
-------- --------
Net cash used by investing
activities ($ 6,602) ($ 2,508)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($297,611) ($236,146)
-------- --------
Net cash used by financing
activities ($297,611) ($236,146)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 12,310 ($ 20,132)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 293,296 241,524
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $305,606 $221,392
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-4-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-2 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-2
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 249,455 $ 222,506
Accounts receivable:
General Partner (Note 2) - 8,376
Net Profits 218,597 203,287
---------- ----------
Total current assets $ 468,052 $ 434,169
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,426,862 2,201,380
---------- ----------
$1,894,914 $2,635,549
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 64,789) ($ 57,428)
Limited Partners, issued and
outstanding, 90,094 units 1,959,703 2,692,977
---------- ----------
Total Partners' capital $1,894,914 $2,635,549
---------- ----------
$1,894,914 $2,635,549
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-5-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-2 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-2
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Net Profits $291,114 $239,673
Interest income 1,708 1,243
Gain on sale of Net Profits
Interests - 448
-------- --------
$292,822 $241,364
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 50,988 $ 86,373
Impairment provision 727,893 -
General and administrative (Note 2) 28,893 29,286
-------- --------
$807,774 $115,659
-------- --------
NET INCOME (LOSS) ($514,952) $125,705
======== ========
GENERAL PARTNER - NET INCOME $ 5,322 $ 9,678
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($520,274) $116,027
======== ========
NET INCOME (LOSS) per unit ($ 5.77) $ 1.29
======== ========
UNITS OUTSTANDING 90,094 90,094
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-6-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-2 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-2
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($514,952) $125,705
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 50,988 86,373
Impairment provision 727,893 -
Gain on sale of Net Profits
Interests - ( 448)
Decrease in accounts receivable -
General Partner 8,376 -
Increase in accounts receivable -
oil and gas sales ( 15,310) ( 49,497)
-------- --------
Net cash provided by operating
activities $256,995 $162,133
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 4,363) ($ 645)
Proceeds from sale of Net Profits
Interests - 448
-------- --------
Net cash used by investing
activities ($ 4,363) ($ 197)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($225,683) ($164,350)
-------- --------
Net cash used by financing
activities ($225,683) ($164,350)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 26,949 ($ 2,414)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 222,506 167,791
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $249,455 $165,377
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-7-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-3
GEODYNE NPI PARTNERSHIP P-3
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 467,329 $ 415,354
Accounts receivable:
General Partner (Note 2) - 16,473
Net Profits 404,305 379,725
---------- ----------
Total current assets $ 871,634 $ 811,552
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 2,656,262 4,156,531
---------- ----------
$3,527,896 $4,968,083
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 121,613) ($ 107,085)
Limited Partners, issued and
outstanding, 169,637 units 3,649,509 5,075,168
---------- ----------
Total Partners' capital $3,527,896 $4,968,083
---------- ----------
$3,527,896 $4,968,083
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-8-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-3
GEODYNE NPI PARTNERSHIP P-3
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
---------- --------
REVENUES:
Net Profits $ 537,870 $447,556
Interest income 3,246 2,156
Gain on sale of Net Profits
Interests - 833
---------- --------
$ 541,116 $450,545
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 94,382 $162,341
Impairment provision 1,413,917 -
General and administrative (Note 2) 54,385 55,126
---------- --------
$1,562,684 $217,467
---------- --------
NET INCOME (LOSS) ($1,021,568) $233,078
========== ========
GENERAL PARTNER - NET INCOME $ 9,091 $ 18,040
========== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($1,030,659) $215,038
========== ========
NET INCOME (LOSS) per unit ($ 6.08) $ 1.27
========== ========
UNITS OUTSTANDING 169,637 169,637
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-9-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-3
GEODYNE NPI PARTNERSHIP P-3
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($1,021,568) $233,078
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 94,382 162,341
Impairment provision 1,413,917 -
Gain on sale of Net Profits
Interests - ( 833)
Decrease in accounts receivable -
General Partner 16,473 -
Increase in accounts receivable -
oil and gas sales ( 24,580) ( 93,834)
---------- --------
Net cash provided by operating
activities $ 478,624 $300,752
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 8,030) ($ 1,184)
Proceeds from sale of Net Profits
Interests - 833
---------- --------
Net cash used by investing
activities ($ 8,030) ($ 351)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 418,619) ($316,413)
---------- --------
Net cash used by financing
activities ($ 418,619) ($316,413)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 51,975 ($ 16,012)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 415,354 296,629
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 467,329 $280,617
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-10-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-4
GEODYNE NPI PARTNERSHIP P-4
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 452,705 $ 345,876
Accounts receivable:
General Partner (Note 2) 56,788
Net Profits 291,983 369,940
---------- ----------
Total current assets $ 801,476 $ 715,816
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,630,886 2,567,661
---------- ----------
$2,432,362 $3,283,477
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 94,377) ($ 81,373)
Limited Partners, issued and
outstanding, 126,306 units 2,526,739 3,364,850
---------- ----------
Total Partners' capital $2,432,362 $3,283,477
---------- ----------
$2,432,362 $3,283,477
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-11-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-4
GEODYNE NPI PARTNERSHIP P-4
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
---------- --------
REVENUES:
Net Profits $407,373 $345,698
Interest and other income 2,720 2,388
Gain (loss) on sale of Net Profits
Interests ( 10,254) 70
-------- --------
$399,839 $348,156
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $117,028 $171,569
Impairment provision 752,388 -
General and administrative (Note 2) 38,287 41,027
-------- --------
$907,703 $212,596
-------- --------
NET INCOME (LOSS) ($507,864) $135,560
======== ========
GENERAL PARTNER - NET INCOME $ 9,247 $ 13,521
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($517,111) $122,039
======== ========
NET INCOME (LOSS) per unit ($ 4.09) $ .97
======== ========
UNITS OUTSTANDING 126,306 126,306
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-12-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-4
GEODYNE NPI PARTNERSHIP P-4
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($507,864) $135,560
Adjustments to reconcile net income
(loss) net cash provided by
operating activities:
Depletion of Net Profits Interests 117,028 171,569
Impairment provision 752,388 -
(Gain) loss on sale of Net Profits
Interests 10,254 ( 70)
Increase in accounts receivable -
General Partner ( 56,788) -
Decrease in accounts receivable -
oil and gas sales 77,957 26,792
-------- --------
Net cash provided by operating
activities $392,975 $333,851
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of Net Profits
Interests $ 57,105 $ 976
-------- --------
Net cash provided by investing
activities $ 57,105 $ 976
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($343,251) ($293,193)
-------- --------
Net cash used by financing
activities ($343,251) ($293,193)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $106,829 $ 41,634
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 345,876 288,117
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $452,705 $329,751
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-13-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE NPI PARTNERSHIP P-5
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 351,565 $ 247,540
Accounts receivable:
General Partner (Note 2) 1,955 -
Net Profits 155,598 209,058
---------- ----------
Total current assets $ 509,118 $ 456,598
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,430,426 2,536,590
---------- ----------
$1,939,544 $2,993,188
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 73,783) ($ 60,088)
Limited Partners, issued and
outstanding, 118,449 units 2,013,327 3,053,276
---------- ----------
Total Partners' capital $1,939,544 $2,993,188
---------- ----------
$1,939,544 $2,993,188
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-14-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE NPI PARTNERSHIP P-5
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
---------- --------
REVENUES:
Net Profits $ 341,315 $280,150
Interest and other income 1,999 1,300
---------- --------
$ 343,314 $281,450
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 85,514 $140,478
Impairment provision 1,018,067 -
General and administrative (Note 2) 38,581 38,502
---------- --------
$1,142,162 $178,980
---------- --------
NET INCOME (LOSS) ($ 798,848) $102,470
========== ========
GENERAL PARTNER - NET INCOME $ 4,101 $ 10,678
========== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 802,949) $ 91,792
========== ========
NET INCOME (LOSS) per unit ($ 6.78) $ .77
========== ========
UNITS OUTSTANDING 118,449 118,449
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-15-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE NPI PARTNERSHIP P-5
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 798,848) $102,470
Adjustments to reconcile net income
(loss) net cash provided by
operating activities:
Depletion of Net Profits
Interests 85,514 140,478
Impairment provision 1,018,067 -
Increase in accounts receivable -
General Partner ( 1,955) -
(Increase) decrease in accounts
receivable - oil and gas sales 53,460 ( 17,810)
---------- --------
Net cash provided by operating
activities $ 356,238 $225,138
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of Net Profits
Interests $ 2,583 $ 867
---------- --------
Net cash provided by investing
activities $ 2,583 $ 867
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 254,796) ($187,819)
---------- --------
Net cash used by financing
activities ($ 254,796) ($187,819)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 104,025 $ 38,186
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 247,540 167,076
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 351,565 $205,262
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-16-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-6
GEODYNE NPI PARTNERSHIP P-6
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 667,533 $ 319,699
Accounts receivable:
General Partner (Note 2) 669 -
Net Profits 243,364 428,072
---------- ----------
Total current assets $ 911,566 $ 747,771
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 2,922,786 3,966,906
---------- ----------
$3,834,352 $4,714,677
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 78,805) ($ 59,021)
Limited Partners, issued and
outstanding, 143,041 units 3,913,157 4,773,698
---------- ----------
Total Partners' capital $3,834,352 $4,714,677
---------- ----------
$3,834,352 $4,714,677
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-17-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-6
GEODYNE NPI PARTNERSHIP P-6
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
----------- --------
REVENUES:
Net Profits $ 544,640 $502,096
Interest and other income 3,179 2,118
Gain on sale of Net Profits
Interests 4,020 -
---------- --------
$ 551,839 $504,214
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 152,608 $220,281
Impairment provision 898,584 -
General and administrative (Note 2) 47,649 46,544
---------- --------
$1,098,841 $266,825
---------- --------
NET INCOME (LOSS) ($ 547,002) $237,389
========== ========
GENERAL PARTNER - NET INCOME $ 14,539 $ 20,575
========== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 561,541) $216,814
========== ========
NET INCOME (LOSS) per unit ($ 3.93) $ 1.52
========== ========
UNITS OUTSTANDING 143,041 143,041
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-18-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-6
GEODYNE NPI PARTNERSHIP P-6
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($547,002) $237,389
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 152,608 220,281
Impairment provision 898,584 -
Gain on sale of Net Profits
Interests ( 4,020) -
Increase in accounts receivable -
General Partner ( 669) -
(Increase) decrease in accounts
receivable - oil and gas sales 184,708 ( 89,340)
-------- --------
Net cash provided by operating
activities $684,209 $368,330
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 7,741) ($ 35,387)
Proceeds from sale of Net Profits
Interests 4,689 -
-------- --------
Net cash used by investing
activities ($ 3,052) ($ 35,387)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($333,323) ($261,954)
-------- --------
Net cash used by financing
activities ($333,323) ($261,954)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $347,834 $ 70,989
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 319,699 254,180
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $667,533 $325,169
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-19-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
MARCH 31, 1997
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of March 31, 1997, combined
statements of operations for the three months ended March 31,
1997 and 1996 and combined statements of cash flows for the three
months ended March 31, 1997 and 1996 have been prepared by
Geodyne Resources, Inc., the general partner of the Geodyne
Institutional/Pension Energy Income Limited Partnerships, without
audit. Each limited partnership is a general partner in the
related Geodyne NPI Partnership (the "NPI Partnerships") in which
Geodyne Resources, Inc. serves as the managing partner. For the
purposes of these financial statements, the general partner and
managing partner are collectively referred to as the "General
Partner" and the limited partnerships and NPI Partnerships are
collectively referred to as the "Partnerships". In the opinion
of management the financial statements referred to above include
all necessary adjustments, consisting of normal recurring
adjustments, to present fairly the combined financial position at
March 31, 1997, the combined results of operations for the three
months ended March 31, 1997 and 1996 and the combined cash flows
for the three months ended March 31, 1997 and 1996.
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, 1996. The results of
operations for the period ended March 31, 1997 are not
necessarily indicative of the results to be expected for the full
year.
As used in these financial statements, the Partnerships' net
profits and royalty interests in oil and gas sales are referred
to as "Net Profits" and the Partnerships' net profits and royalty
interests in oil and gas properties are referred to as "Net
Profits Interests". The working interests from which the
Partnerships' Net Profits Interests are carved are referred to as
"Working Interests".
The Limited Partners' net income or loss per unit is based upon
each $100 initial capital contribution.
NET PROFITS INTERESTS
---------------------
The Partnerships follow the successful efforts method of
accounting for their Net Profits Interests. Under the successful
efforts method, the NPI Partnerships capitalize all acquisition
costs. 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
-20-
costs. The acquisition cost to the NPI Partnership of Net
Profits Interests 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
oil and gas properties are held by the General Partner prior to
their transfer to the Partnerships. Impairment of Net Profits
Interests is recognized based upon an individual property
assessment.
Depletion of the costs of Net Profits Interests is computed on
the unit-of-production method. The Partnerships' depletion,
depreciation, and amortization includes dismantlement and
abandonment costs, net of estimated salvage value.
Effective October 1, 1995, the Partnerships adopted the
requirements of Statement of Financial Accounting Standards
("SFAS") No. 121, "Accounting for the Impairment of Long Lived
Assets and Assets Held for Disposal", which is intended to
establish more consistent accounting standards for measuring the
recoverability of long-lived assets. SFAS No. 121 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, rather than for the Partnership's
properties as a whole as previously allowed by the Securities and
Exchange Commission ("SEC"). SFAS No. 121 provides that if the
unamortized costs of Net Profits Interests 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. Under the Partnerships' prior impairment policy if
the unamortized costs of Net Profits Interests as a whole
exceeded the estimated undiscounted future net revenues of the
properties, an impairment provision would be recorded for the
excess amount. The Partnerships recorded a non-cash charge
against earnings (impairment provision) during the first quarter
of 1997 pursuant to SFAS No. 121 as follows:
Partnership Amount
----------- ------------
P-1 $ 902,042
P-2 727,893
P-3 1,413,917
P-4 752,388
P-5 1,018,067
P-6 898,584
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 the Partnerships' direct
general and administrative expenses and for the general and
administrative overhead applicable to the Partnerships based on
-21-
an allocation of actual costs incurred by the General Partner.
During the three months ended March 31, 1997 the following
payments were made to the General Partner or its affiliates by
the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------ --------------
P-1 $ 6,324 $28,440
P-2 5,184 23,709
P-3 9,745 44,640
P-4 5,047 33,240
P-5 7,411 31,170
P-6 10,008 37,641
Affiliates of the Partnerships operate certain of the
Partnerships' properties and their policy is to bill the
Partnerships for all customary charges and cost reimbursements
associated with their activities.
The receivable from the General Partner at December 31, 1996 for
the P-2 and P-3 Partnerships represented proceeds due to the
Partnerships for the sale of Net Profits Interests. Subsequent
to December 31, 1996 such receivable was collected by the P-2 and
P-3 Partnerships.
The receivable from the General Partner at March 31, 1997 for the
P-4, P-5, and P-6 Partnerships represents proceeds due to such
Partnerships for the sale of Net Profits Interests. Subsequent
to March 31, 1997 such receivable was collected by the P-4, P-5,
and P-6 Partnerships.
-22-
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, or otherwise indicated.
GENERAL
- -------
The Partnerships are engaged in the business of acquiring Net
Profits Interests in producing oil and gas properties located in
the continental United States. In general, a Partnership
acquired passive interests in producing properties and does not
directly engage in development drilling or enhanced recovery
projects. Therefore, the economic life of each limited
partnership, and its related NPI Partnership, is limited to the
period of time required to fully produce its acquired oil and gas
reserves. A Net Profits Interest entitles the Partnerships to a
portion of the oil and gas sales less operating and production
expenses and development costs generated by the owner of the
underlying working interest in the oil and gas properties. 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.
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:
-23-
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
P-1 October 25, 1988 $10,807,400
P-2 February 9, 1989 9,009,400
P-3 May 10, 1989 16,963,700
P-4 November 21, 1989 12,630,600
P-5 February 27, 1990 11,844,900
P-6 September 5, 1990 14,304,100
In general, the amount of funds available for the acquisition of
producing properties was equal to the capital contributions of
the Limited Partners, less 15% for sales commissions and
organization and management fees. The Partnerships have fully
invested their capital contributions.
Net proceeds from the Partnerships' Net Profits Interests less
necessary operating capital are distributed to Limited Partners
on a quarterly basis. Revenues and net proceeds of a Partnership
are largely dependent upon the volumes of oil and gas sold and
the prices received for such oil and gas. While the General
Partner cannot predict future pricing trends, it believes the
working capital available as of March 31, 1997 and the net
revenue generated from future operations will provide sufficient
working capital to meet current and future obligations of the
Partnerships.
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction
with the analysis of results of operations provided below. The
most important variable affecting the Partnerships' revenues is
the prices received for the sale of oil and gas. Predicting
future prices is very difficult. Substantially all of the
Partnerships' gas reserves are being sold in the "spot market".
Prices on the spot market are subject to wide seasonal and
regional pricing fluctuations due to the highly competitive
nature of the spot market. In addition, such spot market sales
are generally short-term in nature and are dependent upon the
obtaining of transportation services provided by pipelines.
Management is unable to predict whether future oil and gas prices
will (i) stabilize, (ii) increase, or (iii) decrease.
PARTNERSHIP P-1
THREE MONTHS ENDED MARCH 31, 1997 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1996.
Three Months Ended March 31,
-----------------------------
1997 1996
-------- --------
Net Profits $279,897 $310,326
Barrels produced 8,584 9,504
Mcf produced 82,354 134,915
Average price/Bbl $ 20.91 $ 17.57
Average price/Mcf $ 2.35 $ 1.75
-24-
As shown in the table above, Net Profits decreased $30,429 (9.8%)
for the three months ended March 31, 1997 as compared to the
three months ended March 31, 1996. Of this decrease,
approximately $16,000 and $92,000, respectively, were related to
decreases in volumes of oil and gas sold, partially offset by
increases of approximately $29,000 and $49,000, respectively,
related to increases in the average prices of oil and gas sold.
Volumes of oil and gas sold decreased 920 barrels and 52,561 Mcf,
respectively, for the three months ended March 31, 1997 as
compared to the three months ended March 31, 1996. The decrease
in volumes of gas sold resulted primarily from (i) positive prior
period volume adjustments made by the purchasers on two wells
during the three months ended March 31, 1996 and (ii) a negative
prior period volume adjustment made by the purchaser on one well
during the three months ended March 31, 1997. Average oil and
gas prices increased to $20.91 per barrel and $2.35 per Mcf,
respectively, for the three months ended March 31, 1997 from
$17.57 per barrel and $1.75 per Mcf, respectively, for the three
months ended March 31, 1996.
Depletion of Net Profits Interests decreased $34,647 (36.3%) for
the three months ended March 31, 1997 as compared to the three
months ended March 31, 1996. This decrease resulted primarily
from (i) decreases in volumes of oil and gas sold during the
three months ended March 31, 1997 as compared to the three months
ended March 31, 1996 and (ii) upward revisions in the estimates
of remaining oil and gas reserves at December 31, 1996. As a
percentage of Net Profits, this expense decreased to 21.7% for
the three months ended March 31, 1997 from 30.7% for the three
months ended March 31, 1996. This decrease was primarily due to
the increases in the average prices of oil and gas sold during
the three months ended March 31, 1997 as compared to the three
months ended March 31, 1996.
The P-1 Partnership recognized a non-cash charge against earnings
of $902,042 for the three months ended March 31, 1997. This
impairment provision was necessary due to the unamortized costs
of Net Profits Interests exceeding the undiscounted future net
revenues from such Net Profits Interests, in accordance with the
P-1 Partnership's adoption of SFAS No. 121. Of this amount,
$113,945 was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at March 31,
1997 and $788,097 was related to impairment of unproved
properties. No similar charge was necessary during the three
months ended March 31, 1996.
General and administrative expenses remained relatively constant
for the three months ended March 31, 1997 as compared to the
three months ended March 31, 1996. As a percentage of Net
Profits, these expenses remained relatively constant at 12.4% for
the three months ended March 31, 1997 as compared to 11.3% for
the three months ended March 31, 1996.
Cumulative cash distributions to the Limited Partners through
March 31, 1997 were $9,059,558 or 83.83% of Limited Partners'
capital contributions.
PARTNERSHIP P-2
THREE MONTHS ENDED MARCH 31, 1997 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1996.
-25-
Three Months Ended March 31,
----------------------------
1997 1996
-------- --------
Net Profits $291,114 $239,673
Barrels produced 6,082 6,829
Mcf produced 71,611 113,725
Average price/Bbl $ 20.93 $ 17.63
Average price/Mcf $ 3.45 $ 1.75
As shown in the table above, Net Profits increased $51,441
(21.5%) for the three months ended March 31, 1997 as compared to
the three months ended March 31, 1996. Of this increase,
approximately $20,000 and $122,000, respectively, were related to
increases in the average prices of oil and gas sold, partially
offset by decreases of approximately $13,000 and $74,000,
respectively, related to decreases in volumes of oil and gas
sold. Volumes of oil and gas sold decreased 747 barrels and
42,114 Mcf, respectively, for the three months ended March 31,
1997 as compared to the three months ended March 31, 1996. The
decrease in volumes of gas sold resulted primarily from (i)
positive prior period volume adjustments made by the purchasers
on two wells during the three months ended March 31, 1996 and
(ii) a negative prior period volume adjustment made by the
purchaser on one well during the three months ended March 31,
1997. Average oil and gas prices increased to $20.93 per barrel
and $3.45 per Mcf, respectively, for the three months ended March
31, 1997 from $17.63 per barrel and $1.75 per Mcf, respectively
for the three months ended March 31, 1996.
Depletion of Net Profits Interests decreased $35,385 (41.0%) for
the three months ended March 31, 1997 as compared to the three
months ended March 31, 1996. This decrease resulted primarily
from (i) decreases in volumes of oil and gas sold during the
three months ended March 31, 1997 as compared to the three months
ended March 31, 1996 and (ii) upward revisions in the estimates
of remaining oil and gas reserves at December 31, 1996. As a
percentage of Net Profits, this expense decreased to 17.5% for
the three months ended March 31, 1997 from 36.0% for the three
months ended March 31, 1996. This decrease was primarily due to
the dollar decrease in depreciation, depletion, and amortization
discussed above and the increases in the average prices of oil
and gas sold during the three months ended March 31, 1997 as
compared to the three months ended March 31, 1996.
The P-2 Partnership recognized a non-cash charge against earnings
of $727,893 for the three months ended March 31, 1997. This
impairment provision was necessary due to the unamortized costs
of Net Profits Interests exceeding the undiscounted future net
revenues from such Net Profits Interests, in accordance with the
P-2 Partnership's adoption of SFAS No. 121. Of this amount,
$113,005 was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at March 31,
1997 and $614,888 was related to impairment of unproved
properties. No similar charge was necessary during the three
months ended March 31, 1996.
General and administrative expenses remained relatively constant
for the three months ended March 31, 1997 as compared to the
three months ended March 31, 1996. As a percentage of Net
Profits, these expenses decreased to 9.9% for the three months
-26-
ended March 31, 1997 from 12.2% for the three months ended March
31, 1996. This percentage decrease was primarily due to the
increase in Net Profits discussed above.
Cumulative cash distributions to the Limited Partners through
March 31, 1997 were $6,896,561 or 76.55% of Limited Partners'
capital contributions.
PARTNERSHIP P-3
THREE MONTHS ENDED MARCH 31, 1997 AS COMPARED TO THE THREE
MONTHS ENDED MARCH 31, 1996.
Three Months Ended March 31,
----------------------------
1997 1996
-------- --------
Net Profits $537,870 $447,556
Barrels produced 11,239 12,651
Mcf produced 134,814 214,852
Average price/Bbl $ 20.94 $ 17.63
Average price/Mcf $ 3.41 $ 1.75
As shown in the table above, Net Profits increased $90,314
(20.2%) for the three months ended March 31, 1997 as compared to
the three months ended March 31, 1996. Of this increase,
approximately $37,000 and $224,000, respectively, were related to
increases in the average prices of oil and gas sold, partially
offset by decreases of approximately $25,000 and $140,000,
respectively, related to decreases in volumes of oil and gas
sold. Volumes of oil and gas sold decreased 1,412 barrels and
80,038 Mcf, respectively, for the three months ended March 31,
1997 as compared to the three months ended March 31, 1996. The
decrease in volumes of gas sold resulted primarily from (i)
positive prior period volume adjustments made by the purchasers
on two wells during the three months ended March 31, 1996 and
(ii) a negative prior period volume adjustment made by the
purchaser on one well during the three months ended March 31,
1997. Average oil and gas prices increased to $20.94 per barrel
and $3.41 per Mcf, respectively, for the three months ended March
31, 1997 from $17.63 per barrel and $1.75 per Mcf, respectively,
for the three months ended March 31, 1996.
Depletion of Net Profits Interests decreased $67,959 (41.9%) for
the three months ended March 31, 1997 as compared to the three
months ended March 31, 1996. This decrease resulted primarily
from (i) decreases in volumes of oil and gas sold during the
three months ended March 31, 1997 as compared to the three months
ended March 31, 1996 and (ii) upward revisions in the estimates
of remaining oil and gas reserves at December 31, 1996. As a
percentage of Net Profits, this expense decreased to 17.5% for
the three months ended March 31, 1997 from 36.3% for the three
months ended March 31, 1996. This decrease was primarily due to
the dollar decrease in depreciation, depletion, and amortization
discussed above and the increases in the average prices of oil
and gas sold during the three months ended March 31, 1997 as
compared to the three months ended March 31, 1996.
The P-3 Partnership recognized a non-cash charge against earnings
of $1,413,917 for the three months ended March 31, 1997. This
impairment provision was necessary due to the unamortized costs
-27-
of Net Profits Interests exceeding the undiscounted future net
revenues from such Net Profits Interests, in accordance with the
P-3 Partnership's adoption of SFAS No. 121. Of this amount,
$220,449 was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at March 31,
1997 and $1,193,468 was related to impairment of unproved
properties. No similar charge was necessary during the three
months ended March 31, 1996.
General and administrative expenses remained relatively constant
for the three months ended March 31, 1997 as compared to the
three months ended March 31, 1996. As a percentage of Net
Profits, these expenses decreased to 10.1% for the three months
ended March 31, 1997 from 12.3% for the three months ended March
31, 1996. This percentage decrease was primarily due to the
increase in Net Profits discussed above.
Cumulative cash distributions to the Limited Partners through
March 31, 1997 were $12,355,401 or 72.83% of Limited Partners'
capital contributions.
PARTNERSHIP P-4
THREE MONTHS ENDED MARCH 31, 1997 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1996.
Three Months Ended March 31,
----------------------------
1997 1996
-------- --------
Net Profits $407,373 $345,698
Barrels produced 5,414 6,226
Mcf produced 142,615 179,821
Average price/Bbl $ 21.73 $ 19.26
Average price/Mcf $ 2.73 $ 1.83
As shown in the table above, Net Profits increased $61,675
(17.8%) for the three months ended March 31, 1997 as compared to
the three months ended March 31, 1996. Of this increase,
approximately $13,000 and $128,000, respectively, were related to
increases in the average prices of oil and gas sold, partially
offset by decreases of approximately $16,000 and $68,000,
respectively, related to decreases in volumes of oil and gas
sold. Volumes of oil and gas sold decreased 812 barrels and
37,206 Mcf, respectively, for the three months ended March 31,
1997 as compared to the three months ended March 31, 1996. The
decrease in volumes of gas sold resulted primarily from (i)
normal declines in production due to diminished gas reserves on
several wells, (ii) the sale of two gas producing wells during
1996, and (iii) a positive prior period volume adjustment made by
the purchaser on one well during the three months ended March 31,
1996. Average oil and gas prices increased to $21.73 per barrel
and $2.73 per Mcf, respectively, for the three months ended March
31, 1997 from $19.26 per barrel and $1.83 per Mcf, respectively,
for the three months ended March 31, 1996.
Depletion of Net Profits Interests decreased $54,541 (31.8%) for
the three months ended March 31, 1997 as compared to the three
months ended March 31, 1996. This decrease resulted primarily
from (i) decreases in volumes of oil and gas sold during the
three months ended March 31, 1997 as compared to the three months
-28-
ended March 31, 1996 and (ii) upward revisions in the estimates
of remaining oil and gas reserves at December 31, 1996. As a
percentage of Net Profits, this expense decreased to 28.7% for
the three months ended March 31, 1997 from 49.6% for the three
months ended March 31, 1996. This decrease was primarily due to
the dollar decrease in depreciation, depletion, and amortization
discussed above and the increases in the average prices of oil
and gas sold during the three months ended March 31, 1997 as
compared to the three months ended March 31, 1996.
The P-4 Partnership recognized a non-cash charge against earnings
of $752,388 for the three months ended March 31, 1997. This
impairment provision was necessary due to the unamortized costs
of Net Profits Interests exceeding the undiscounted future net
revenues from such Net Profits Interests, in accordance with the
P-4 Partnership's adoption of SFAS No. 121. Of this amount,
$84,059 was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at March 31,
1997 and $668,329 was related to impairment of unproved
properties. No similar charge was necessary during the three
months ended March 31, 1996.
General and administrative expenses decreased $2,740 (6.7%) for
the three months ended March 31, 1997 as compared to the three
months ended March 31, 1996. This decrease resulted primarily
from a decrease in professional fees during the three months
ended March 31, 1997 as compared to the three months ended March
31, 1996. As a percentage of Net Profits, these expenses
decreased to 9.4% for the three months ended March 31, 1997 from
11.9% for the three months ended March 31, 1996. This percentage
decrease was primarily due to the increase in Net Profits
discussed above.
Cumulative cash distributions to the Limited Partners through
March 31, 1997 were $10,231,945 or 81.01% of Limited Partners'
capital contributions.
PARTNERSHIP P-5
THREE MONTHS ENDED MARCH 31, 1997 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1996.
Three Months Ended March 31,
----------------------------
1997 1996
-------- --------
Net Profits $341,315 $280,150
Barrels produced 2,267 3,478
Mcf produced 146,737 174,240
Average price/Bbl $ 20.79 $ 17.99
Average price/Mcf $ 2.59 $ 1.75
As shown in the table above, Net Profits increased $61,165
(21.8%) for the three months ended March 31, 1997 as compared to
the three months ended March 31, 1996. Of this increase,
approximately $6,000 and $123,000, respectively, were related to
increases in the average prices of oil and gas sold, partially
offset by decreases of approximately $22,000 and $48,000,
respectively, related to decreases in volumes of oil and gas
sold. Volumes of oil and gas sold decreased 1,211 barrels and
27,503 Mcf, respectively, for the three months ended March 31,
-29-
1997 as compared to the three months ended March 31, 1996. The
decrease in volumes of oil sold resulted primarily from (i)
normal declines in production due to diminished oil reserves on
two wells and (ii) positive prior period volume adjustments made
by the operator on two wells during the three months ended March
31, 1996. The decrease in volumes of gas sold resulted primarily
from (i) normal declines in production due to diminished gas
reserves on several wells, (ii) a negative prior period volume
adjustment made by the purchaser on one well during the three
months ended March 31, 1997, and (iii) a positive prior period
volume adjustment made by the purchaser on another well during
the three months ended March 31, 1996. Average oil and gas
prices increased to $20.79 per barrel and $2.59 per Mcf,
respectively, for the three months ended March 31, 1997 from
$17.99 per barrel and $1.75 per Mcf, respectively, for the three
months ended March 31, 1996.
Depletion of Net Profits Interests decreased $54,964 (39.1%) for
the three months ended March 31, 1997 as compared to the three
months ended March 31, 1996. This decrease resulted primarily
from (i) decreases in volumes of oil and gas sold during the
three months ended March 31, 1997 as compared to the three months
ended March 31, 1996 and (ii) upward revisions in the estimates
of remaining oil and gas reserves at December 31, 1996. As a
percentage of Net Profits, this expense decreased to 25.1% for
the three months ended March 31, 1997 from 50.1% for the three
months ended March 31, 1996. This decrease was primarily due to
the dollar decrease in depreciation, depletion, and amortization
discussed above and the increases in the average prices of oil
and gas sold during the three months ended March 31, 1997 as
compared to the three months ended March 31, 1996.
The P-5 Partnership recognized a non-cash charge against earnings
of $1,018,067 for the three months ended March 31, 1997. This
impairment provision was necessary due to the unamortized costs
of Net Profits Interests exceeding the undiscounted future net
revenues from such Net Profits Interests, in accordance with the
P-5 Partnership's adoption of SFAS No. 121. Of this amount,
$122,458 was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at March 31,
1997 and $895,609 was related to impairment of unproved
properties. No similar charge was necessary during the three
months ended March 31, 1996.
General and administrative expenses remained relatively constant
for the three months ended March 31, 1997 as compared to the
three months ended March 31, 1996. As a percentage of Net
Profits, these expenses decreased to 11.3% for the three months
ended March 31, 1997 from 13.7% for the three months ended March
31, 1996. This decrease was primarily due to the increase in Net
Profits discussed above.
Cumulative cash distributions to the Limited Partners through
March 31, 1997 were $5,590,759 or 47.20% of Limited Partners'
capital contributions.
PARTNERSHIP P-6
THREE MONTHS ENDED MARCH 31, 1997 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1996.
-30-
Three Months Ended March 31,
----------------------------
1997 1996
-------- --------
Net Profits $544,640 $502,096
Barrels produced 4,303 5,706
Mcf produced 235,050 285,013
Average price/Bbl $ 21.24 $ 17.96
Average price/Mcf $ 2.87 $ 2.03
As shown in the table above, Net Profits increased $42,544 (8.5%)
for the three months ended March 31, 1997 as compared to the
three months ended March 31, 1996. Of this increase,
approximately $14,000 and $197,000, respectively, were related to
the increases in the average prices of oil and gas sold,
partially offset by decreases of approximately $25,000 and
$101,000, respectively, related to decreases in volumes of oil
and gas sold and a decrease of approximately $42,000 related to
an increase in production expenses incurred by the owners of the
Working Interests. Volumes of oil and gas sold decreased 1,403
barrels and 49,963 Mcf, respectively, for the three months ended
March 31, 1997 as compared to the three months ended March 31,
1996. The decrease in volumes of oil sold resulted primarily
from normal declines in production due to diminished oil reserves
on two wells. The decrease in volumes of gas sold resulted
primarily from (i) normal declines in production due to
diminished gas reserves on several wells, (ii) positive prior
period volume adjustments made by the purchasers on several wells
during the three months ended March 31, 1996, (iii) the shutting-
in of two wells during 1996 due to mechanical difficulties, and
(iv) a negative prior period volume adjustment made by the
purchaser on one well during the three months ended March 31,
1997. The increase in production expenses resulted primarily
from (i) an increase in ad valorem taxes incurred on several
wells during the three months ended March 31, 1997 as compared to
the three months ended March 31, 1996 and (ii) workover expenses
incurred during the three months ended March 31, 1997 in order to
improve the recovery of reserves on several wells, partially
offset by decreases in volumes of oil and gas sold during the
three months ended March 31, 1997 as compared to the three months
ended March 31, 1996. Average oil and gas prices increased to
$21.24 per barrel and $2.87 per Mcf, respectively, for the three
months ended March 31, 1997 from $17.96 per barrel and $2.03 per
Mcf, respectively, for the three months ended March 31, 1996.
Depletion of Net Profits Interests decreased $67,673 (30.7%) for
the three months ended March 31, 1997 as compared to the three
months ended March 31, 1996. This decrease resulted primarily
from (i) decreases in volumes of oil and gas sold during the
three months ended March 31, 1997 as compared to the three months
ended March 31, 1996 and (ii) upward revisions in the estimates
of remaining oil and gas reserves at December 31, 1996. As a
percentage of Net Profits, this expense decreased to 28.0% for
the three months ended March 31, 1997 from 43.9% for the three
months ended March 31, 1996. This decrease was primarily due to
the dollar decrease in depreciation, depletion, and amortization
discussed above and the increases in the average prices of oil
and gas sold during the three months ended March 31, 1997 as
compared to the three months ended March 31, 1996.
The P-6 Partnership recognized a non-cash charge against earnings
-31-
of $898,584 for the three months ended March 31, 1997. This
impairment provision was necessary due to the unamortized costs
of Net Profits Interests exceeding the undiscounted future net
revenues from such Net Profits Interests, in accordance with the
P-6 Partnership's adoption of SFAS No. 121. Of this amount,
$444,990 was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at March 31,
1997 and $453,594 was related to impairment of unproved
properties. No similar charge was necessary during the three
months ended March 31, 1996.
General and administrative expenses remained relatively constant
for the three months ended March 31, 1997 as compared to the
three months ended March 31, 1996. As a percentage of Net
Profits, these expenses remained relatively constant at 8.7% for
the three months ended March 31, 1997 as compared to 9.3% for the
three months ended March 31, 1996.
Cumulative cash distributions to the Limited Partners through
March 31, 1997 were $7,084,248 or 49.53% of Limited Partners'
capital contributions.
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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 P-1 Partnership's
financial statements as of March 31, 1997 and for the
three months ended March 31, 1997, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the P-2 Partnership's
financial statements as of March 31, 1997 and for the
three months ended March 31, 1997, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the P-3 Partnership's
financial statements as of March 31, 1997 and for the
three months ended March 31, 1997, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the P-4 Partnership's
financial statements as of March 31, 1997 and for the
three months ended March 31, 1997, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the P-5 Partnership's
financial statements as of March 31, 1997 and for the
three months ended March 31, 1997, filed herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the P-6 Partnership's
financial statements as of March 31, 1997 and for the
three months ended March 31, 1997, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K:
Current Reports on Form 8-K filed during the first quarter
of 1997:
Date of event: January 24, 1997
Date filed with SEC: January 24, 1997
Items Included:
Item 5 - Other Events
Item 7 - Exhibits
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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 INSTITUTIONAL/PENSION ENERGY
INCOME P-1 LIMITED PARTNERSHIP
GEODYNE INSTITUTIONAL/PENSION ENERGY
INCOME P-2 LIMITED PARTNERSHIP
GEODYNE INSTITUTIONAL/PENSION ENERGY
INCOME LIMITED PARTNERSHIP P-3
GEODYNE INSTITUTIONAL/PENSION ENERGY
INCOME LIMITED PARTNERSHIP P-4
GEODYNE INSTITUTIONAL/PENSION ENERGY
INCOME LIMITED PARTNERSHIP P-5
GEODYNE INSTITUTIONAL/PENSION ENERGY
INCOME LIMITED PARTNERSHIP P-6
(Registrant)
By: GEODYNE RESOURCES, INC.
General Partner
Date: May 13, 1997 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: May 13, 1997 By: /s/Patrick M. Hall
-------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
-34-
INDEX TO EXHIBITS
-----------------
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Geodyne Institutional/Pension
Energy Income P-1 Limited Partnership's financial statements
as of March 31, 1997 and for the three months ended March
31, 1997, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the Geodyne Institutional/Pension
Energy Income P-2 Limited Partnership's financial statements
as of March 31, 1997 and for the three months ended March
31, 1997, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the Geodyne Institutional/Pension
Energy Income Limited Partnership P-3's financial statements
as of March 31, 1997 and for the three months ended March
31, 1997, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the Geodyne Institutional/Pension
Energy Income Limited Partnership P-4's financial statements
as of March 31, 1997 and for the three months ended March
31, 1997, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the Geodyne Institutional/Pension
Energy Income Limited Partnership P-5's financial statements
as of March 31, 1997 and for the three months ended March
31, 1997, filed herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the Geodyne Institutional/Pension
Energy Income Limited Partnership P-6's financial statements
as of March 31, 1997 and for the three months ended March
31, 1997, filed herewith.
All other exhibits are omitted as inapplicable.