SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 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
June 30, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 444,454 $ 293,296
Accounts receivable:
General Partner (Note 2) 2,306 -
Net Profits 198,075 257,458
---------- ----------
Total current assets $ 644,835 $ 550,754
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,612,528 2,680,005
---------- ----------
$2,257,363 $3,230,759
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 69,434) ($ 62,666)
Limited Partners, issued and
outstanding, 108,074 units 2,326,797 3,293,425
---------- ----------
Total Partners' capital $2,257,363 $3,230,759
---------- ----------
$2,257,363 $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 JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Net Profits $317,208 $310,284
Interest income 2,794 1,937
Gain on sale of Net Profits
Interests 127,385 -
-------- --------
$447,387 $312,221
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 64,546 $ 86,539
General and administrative (Note 2) 34,658 32,251
-------- --------
$ 99,204 $118,790
-------- --------
NET INCOME $348,183 $193,431
======== ========
GENERAL PARTNER - NET INCOME $ 19,852 $ 13,036
======== ========
LIMITED PARTNERS - NET INCOME $328,331 $180,395
======== ========
NET INCOME per unit $ 3.04 $ 1.67
======== ========
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 OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- --------
REVENUES:
Net Profits $ 597,105 $620,610
Interest income 5,056 3,742
Gain on sale of Net Profits
Interests 127,385 631
---------- --------
$ 729,546 $624,983
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 125,229 $181,869
Impairment provision 902,042 -
General and administrative (Note 2) 69,422 67,352
---------- --------
$1,096,693 $249,221
---------- --------
NET INCOME (LOSS) ($ 367,147) $375,762
========== ========
GENERAL PARTNER - NET INCOME $ 22,481 $ 25,876
========== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 389,628) $349,886
========== ========
NET INCOME (LOSS) per unit ($ 3.61) $ 3.24
========== ========
UNITS OUTSTANDING 108,074 108,074
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-4-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-1 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-1
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($367,147) $375,762
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 125,229 181,869
Impairment provision 902,042 -
Gain on sale of Net Profits
Interests ( 127,385) ( 631)
Increase in accounts receivable -
General Partner ( 2,306) -
(Increase) decrease in accounts
receivable - oil and gas sales 59,383 ( 50,280)
-------- --------
Net cash provided by operating
activities $589,816 $506,720
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 13,262) ($ 2,152)
Proceeds from sale of Net Profits
Interests 180,853 631
-------- --------
Net cash provided (used) by
investing activities $167,591 ($ 1,521)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($606,249) ($466,428)
-------- --------
Net cash used by financing
activities ($606,249) ($466,428)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $151,158 $ 38,771
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 293,296 241,524
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $444,454 $280,295
======== ========
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 BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 373,732 $ 222,506
Accounts receivable:
General Partner (Note 2) 1,574 8,376
Net Profits 158,354 203,287
---------- ----------
Total current assets $ 533,660 $ 434,169
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,288,471 2,201,380
---------- ----------
$1,822,131 $2,635,549
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 64,337) ($ 57,428)
Limited Partners, issued and
outstanding, 90,094 units 1,886,468 2,692,977
---------- ----------
Total Partners' capital $1,822,131 $2,635,549
---------- ----------
$1,822,131 $2,635,549
========== ==========
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 OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Net Profits $178,224 $238,369
Interest income 2,202 1,477
Gain on sale of Net Profits
Interests 80,091 -
-------- --------
$260,517 $239,846
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 53,991 $ 78,390
General and administrative (Note 2) 28,826 26,938
-------- --------
$ 82,817 $105,328
-------- --------
NET INCOME $177,700 $134,518
======== ========
GENERAL PARTNER - NET INCOME $ 10,935 $ 9,788
======== ========
LIMITED PARTNERS - NET INCOME $166,765 $124,730
======== ========
NET INCOME per unit $ 1.85 $ 1.38
======== ========
UNITS OUTSTANDING 90,094 90,094
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-7-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-2 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-2
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Net Profits $469,338 $478,042
Interest income 3,910 2,720
Gain on sale of Net Profits
Interests 80,091 448
-------- --------
$553,339 $481,210
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $104,979 $164,763
Impairment provision 727,893 -
General and administrative (Note 2) 57,719 56,224
-------- --------
$890,591 $220,987
-------- --------
NET INCOME (LOSS) ($337,252) $260,223
======== ========
GENERAL PARTNER - NET INCOME $ 16,257 $ 19,466
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($353,509) $240,757
======== ========
NET INCOME (LOSS) per unit ($ 3.92) $ 2.67
======== ========
UNITS OUTSTANDING 90,094 90,094
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-8-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-2 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-2
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($337,252) $260,223
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 104,979 164,763
Impairment provision 727,893 -
Gain on sale of Net Profits
Interests ( 80,091) ( 448)
Decrease in accounts receivable -
General Partner 6,802 -
(Increase) decrease in accounts
receivable - oil and gas sales 44,933 ( 45,010)
-------- --------
Net cash provided by operating
activities $467,264 $379,528
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 8,677) $ -
Proceeds from sale of Net Profits
Interests 168,805 889
-------- --------
Net cash provided by investing
activities $160,128 $ 889
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($476,166) ($328,115)
-------- --------
Net cash used by financing
activities ($476,166) ($328,115)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $151,226 $ 52,302
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 222,506 167,791
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $373,732 $220,093
======== ========
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 BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 713,010 $ 415,354
Accounts receivable:
General Partner (Note 2) 2,905 16,473
Net Profits 297,438 379,725
---------- ----------
Total current assets $1,013,353 $ 811,552
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 2,378,807 4,156,531
---------- ----------
$3,392,160 $4,968,083
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 120,834) ($ 107,085)
Limited Partners, issued and
outstanding, 169,637 units 3,512,994 5,075,168
---------- ----------
Total Partners' capital $3,392,160 $4,968,083
---------- ----------
$3,392,160 $4,968,083
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-10-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-3
GEODYNE NPI PARTNERSHIP P-3
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
--------- --------
REVENUES:
Net Profits $338,563 $442,574
Interest income 4,215 2,497
Gain on sale of Net Profits
Interests 142,486 -
-------- --------
$485,264 $445,071
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $100,187 $147,145
General and administrative (Note 2) 54,254 50,488
-------- --------
$154,441 $197,633
-------- --------
NET INCOME $330,823 $247,438
======== ========
GENERAL PARTNER - NET INCOME $ 20,338 $ 18,133
======== ========
LIMITED PARTNERS - NET INCOME $310,485 $229,305
======== ========
NET INCOME per unit $ 1.83 $ 1.35
======== ========
UNITS OUTSTANDING 169,637 169,637
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-11-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-3
GEODYNE NPI PARTNERSHIP P-3
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- --------
REVENUES:
Net Profits $ 876,433 $890,130
Interest income 7,461 4,653
Gain on sale of Net Profits
Interests 142,486 833
---------- --------
$1,026,380 $895,616
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 194,569 $309,486
Impairment provision 1,413,917 -
General and administrative (Note 2) 108,639 105,614
---------- --------
$1,717,125 $415,100
---------- --------
NET INCOME (LOSS) ($ 690,745) $480,516
========== ========
GENERAL PARTNER - NET INCOME $ 29,429 $ 36,173
========== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 720,174) $444,343
========== ========
NET INCOME (LOSS) per unit ($ 4.25) $ 2.62
========== ========
UNITS OUTSTANDING 169,637 169,637
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-12-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-3
GEODYNE NPI PARTNERSHIP P-3
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 690,745) $480,516
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 194,569 309,486
Impairment provision 1,413,917 -
Gain on sale of Net Profits
Interests ( 142,486) ( 833)
Decrease in accounts receivable -
General Partner 13,568 -
(Increase) decrease in accounts
receivable - oil and gas sales 82,287 ( 85,087)
---------- --------
Net cash provided by operating
activities $ 871,110 $704,082
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 15,966) $ -
Proceeds from sale of Net Profits
Interests 327,690 1,695
---------- --------
Net cash provided by investing
activities $ 311,724 $ 1,695
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 885,178) ($625,398)
---------- --------
Net cash used by financing
activities ($ 885,178) ($625,398)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 297,656 $ 80,379
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 415,354 296,629
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 713,010 $377,008
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-13-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-4
GEODYNE NPI PARTNERSHIP P-4
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 532,937 $ 345,876
Accounts receivable:
Net Profits 286,924 369,940
---------- ----------
Total current assets $ 819,861 $ 715,816
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,341,546 2,567,661
---------- ----------
$2,161,407 $3,283,477
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 94,235) ($ 81,373)
Limited Partners, issued and
outstanding, 126,306 units 2,255,642 3,364,850
---------- ----------
Total Partners' capital $2,161,407 $3,283,477
---------- ----------
$2,161,407 $3,283,477
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-14-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-4
GEODYNE NPI PARTNERSHIP P-4
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- --------
REVENUES:
Net Profits $317,362 $368,788
Interest and other income 3,920 2,541
Gain on sale of Net Profits
Interests 4,760 -
-------- --------
$326,042 $371,329
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $111,787 $175,499
General and administrative (Note 2) 40,382 37,648
-------- --------
$152,169 $213,147
-------- --------
NET INCOME $173,873 $158,182
======== ========
GENERAL PARTNER - NET INCOME $ 12,970 $ 14,802
======== ========
LIMITED PARTNERS - NET INCOME $160,903 $143,380
======== ========
NET INCOME per unit $ 1.27 $ 1.13
======== ========
UNITS OUTSTANDING 126,306 126,306
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-15-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-4
GEODYNE NPI PARTNERSHIP P-4
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- --------
REVENUES:
Net Profits $ 724,735 $714,486
Interest and other income 6,640 4,929
Gain (loss) on sale of Net Profits
Interests ( 5,494) 70
---------- --------
$ 725,881 $719,485
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 228,815 $347,068
Impairment provision 752,388 -
General and administrative (Note 2) 78,669 78,675
---------- --------
$1,059,872 $425,743
---------- --------
NET INCOME (LOSS) ($ 333,991) $293,742
========== ========
GENERAL PARTNER - NET INCOME $ 22,217 $ 28,323
========== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 356,208) $265,419
========== ========
NET INCOME (LOSS) per unit ($ 2.82) $ 2.10
========== ========
UNITS OUTSTANDING 126,306 126,306
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-16-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-4
GEODYNE NPI PARTNERSHIP P-4
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($333,991) $293,742
Adjustments to reconcile net income
(loss) net cash provided by
operating activities:
Depletion of Net Profits Interests 228,815 347,068
Impairment provision 752,388 -
(Gain) loss on sale of Net Profits
Interests 5,494 ( 70)
(Increase) decrease in accounts
receivable - oil and gas sales 83,016 ( 13,338)
-------- --------
Net cash provided by operating
activities $735,722 $627,402
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of Net Profits
Interests $239,418 $ 653
-------- --------
Net cash provided by investing
activities $239,418 $ 653
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($788,079) ($612,683)
-------- --------
Net cash used by financing
activities ($788,079) ($612,683)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $187,061 $ 15,372
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 345,876 288,117
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $532,937 $303,489
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-17-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE NPI PARTNERSHIP P-5
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 261,654 $ 247,540
Accounts receivable:
Net Profits 81,550 209,058
---------- ----------
Total current assets $ 343,204 $ 456,598
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,354,282 2,536,590
---------- ----------
$1,697,486 $2,993,188
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 77,617) ($ 60,088)
Limited Partners, issued and
outstanding, 118,449 units 1,775,103 3,053,276
---------- ----------
Total Partners' capital $1,697,486 $2,993,188
---------- ----------
$1,697,486 $2,993,188
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-18-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE NPI PARTNERSHIP P-5
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Net Profits $161,365 $266,293
Interest and other income 2,759 1,714
Gain on sale of Net Profits
Interests 54,195 -
-------- --------
$218,319 $268,007
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 66,428 $126,662
General and administrative (Note 2) 37,896 35,335
-------- --------
$104,324 $161,997
-------- --------
NET INCOME $113,995 $106,010
======== ========
GENERAL PARTNER - NET INCOME $ 8,219 $ 10,281
======== ========
LIMITED PARTNERS - NET INCOME $105,776 $ 95,729
======== ========
NET INCOME per unit $ .89 $ .81
======== ========
UNITS OUTSTANDING 118,449 118,449
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-19-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE NPI PARTNERSHIP P-5
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- --------
REVENUES:
Net Profits $ 502,680 $546,443
Interest and other income 4,758 3,014
Gain on sale of Net Profits
Interests 54,195 -
---------- --------
$ 561,633 $549,457
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 151,942 $267,140
Impairment provision 1,018,067 -
General and administrative (Note 2) 76,477 73,837
---------- --------
$1,246,486 $340,977
---------- --------
NET INCOME (LOSS) ($ 684,853) $208,480
========== ========
GENERAL PARTNER - NET INCOME $ 12,320 $ 20,959
========== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 697,173) $187,521
========== ========
NET INCOME (LOSS) per unit ($ 5.89) $ 1.58
========== ========
UNITS OUTSTANDING 118,449 118,449
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-20-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE NPI PARTNERSHIP P-5
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 684,853) $208,480
Adjustments to reconcile net income
(loss) net cash provided by
operating activities:
Depletion of Net Profits
Interests 151,942 267,140
Impairment provision 1,018,067 -
Gain on sale of Net Profits
Interests ( 54,195) -
(Increase) decrease in accounts
receivable - oil and gas sales 127,508 ( 20,164)
---------- --------
Net cash provided by operating
activities $ 558,469 $455,456
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of Net Profits
Interests $ 66,494 $ 913
---------- --------
Net cash provided by investing
activities $ 66,494 $ 913
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 610,849) ($390,280)
---------- --------
Net cash used by financing
activities ($ 610,849) ($390,280)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 14,114 $ 66,089
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 247,540 167,076
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 261,654 $233,165
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-21-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-6
GEODYNE NPI PARTNERSHIP P-6
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 374,738 $ 319,699
Accounts receivable:
General Partner (Note 2) 5,854 -
Net Profits 244,568 428,072
---------- ----------
Total current assets $ 625,160 $ 747,771
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 2,744,263 3,966,906
---------- ----------
$3,369,423 $4,714,677
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 79,842) ($ 59,021)
Limited Partners, issued and
outstanding, 143,041 units 3,449,265 4,773,698
---------- ----------
Total Partners' capital $3,369,423 $4,714,677
---------- ----------
$3,369,423 $4,714,677
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-22-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-6
GEODYNE NPI PARTNERSHIP P-6
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
--------- --------
REVENUES:
Net Profits $407,320 $346,050
Interest and other income 5,272 2,624
Gain on sale of Net Profits
Interests 21,938 -
-------- --------
$434,530 $348,674
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $173,910 $199,792
General and administrative (Note 2) 45,041 42,588
-------- --------
$218,951 $242,380
-------- --------
NET INCOME $215,579 $106,294
======== ========
GENERAL PARTNER - NET INCOME $ 17,471 $ 13,175
======== ========
LIMITED PARTNERS - NET INCOME $198,108 $ 93,119
======== ========
NET INCOME per unit $ 1.39 $ 0.65
======== ========
UNITS OUTSTANDING 143,041 143,041
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-23-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-6
GEODYNE NPI PARTNERSHIP P-6
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- --------
REVENUES:
Net Profits $ 951,960 $848,146
Interest and other income 8,451 4,742
Gain on sale of Net Profits
Interests 25,958 -
---------- --------
$ 986,369 $852,888
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 326,518 $420,073
Impairment provision 898,584 -
General and administrative (Note 2) 92,690 89,132
---------- --------
$1,317,792 $509,205
---------- --------
NET INCOME (LOSS) ($ 331,423) $343,683
========== ========
GENERAL PARTNER - NET INCOME $ 32,010 $ 33,750
========== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 363,433) $309,933
========== ========
NET INCOME (LOSS) per unit ($ 2.54) $ 2.17
========== ========
UNITS OUTSTANDING 143,041 143,041
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-24-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-6
GEODYNE NPI PARTNERSHIP P-6
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 331,423) $343,683
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 326,518 420,073
Impairment provision 898,584 -
Gain on sale of Net Profits
Interests ( 25,958) -
Increase in accounts receivable -
General Partner ( 5,854) -
(Increase) decrease in accounts
receivable - oil and gas sales 183,504 ( 32,745)
---------- --------
Net cash provided by operating
activities $1,045,371 $731,011
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 7,789) ($ 62,568)
Proceeds from sale of Net Profits
Interests 31,288 -
---------- --------
Net cash provided (used) by
investing activities $ 23,499 ($ 62,568)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,013,831) ($594,052)
---------- --------
Net cash used by financing
activities ($1,013,831) ($594,052)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 55,039 $ 74,391
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 319,699 254,180
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 374,738 $328,571
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-25-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of June 30, 1997, combined
statements of operations for the three and six months ended June
30, 1997 and 1996 and combined statements of cash flows for the
six months ended June 30, 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
June 30, 1997, the combined results of operations for the three
and six months ended June 30, 1997 and 1996 and the combined cash
flows for the six months ended June 30, 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 June 30, 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
-26-
allocated portion of the General Partner's property screening
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 estimated dismantlement
and abandonment costs, net of estimated salvage value.
Statement of Financial Accounting Standards ("SFAS") No. 121,
"Accounting for the Impairment of Long Lived Assets and Assets
Held for Disposal", requires successful efforts companies, like
the Partnerships, to evaluate the recoverability of the carrying
costs of their proved oil and gas properties at the lowest level
for which there are identifiable cash flows that are largely
independent of the cash flows of other groups of oil and gas
properties. With respect to the Partnerships' oil and gas
properties, this evaluation was performed for each field. SFAS
No. 121 provides that if the unamortized costs of 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. The
Partnerships recorded a non-cash charge against earnings
(impairment provision) during the six months ended June 30, 1997
pursuant to SFAS No. 121 as follows:
Partnership Amount
----------- ------------
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
an allocation of actual costs incurred by the General Partner.
During the six months ended June 30, 1997 the following payments
were made to the General Partner or its affiliates by the
Partnerships:
-27-
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------ --------------
P-1 $12,542 $56,880
P-2 10,301 47,418
P-3 19,359 89,280
P-4 12,189 66,480
P-5 14,137 62,340
P-6 17,408 75,282
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 during the
three months ended December 31, 1996. Subsequent to December 31,
1996 such receivable was collected by the P-2 and P-3
Partnerships.
The receivable from the General Partner at June 30, 1997 for the
P-1, P-2, and P-3 Partnerships represents proceeds due to such
Partnerships for the sale of Net Profits Interests during the
three months ended June 30, 1997. The receivable from the
General Partner at June 30, 1997 for the P-6 Partnership
represents credits received for general and administrative
expenses during the three months ended June 30, 1997. Subsequent
to June 30, 1997 such receivable was collected by the P-1, P-2,
P-3, and P-6 Partnerships.
-28-
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 Interests. 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:
-29-
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 June 30, 1997 and the net revenue
generated from future operations will provide sufficient working
capital to meet current and future obligations of the
Partnerships.
The Partnerships' cash flows for the second quarter of 1997
included proceeds from the sale of oil and gas properties during
the three months ended June 30, 1997. These proceeds will be
reflected, as applicable, in the Partnerships' cash distributions
to be paid in mid-August 1997. It is possible that the Partner-
ships' repurchase values and future cash distributions could
decline as a result of the disposition of these properties. On
the other hand, the General Partner believes there will be bene-
ficial operating efficiencies related to the Partnerships'
remaining properties. This is primarily due to the fact that the
properties sold generally bore a higher ratio of operating
expenses as compared to reserves than the Partnerships' remaining
properties.
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 JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Net Profits $317,208 $310,284
Barrels produced 8,543 9,191
Mcf produced 91,125 119,096
Average price/Bbl $ 18.23 $ 19.42
Average price/Mcf $ 2.48 $ 1.88
-30-
As shown in the table above, Net Profits increased $6,924 (2.2%)
for the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. Of this increase, approximately
$55,000 was related to an increase in the average price of gas
sold and approximately $28,000 was related to a decrease in
production expenses incurred by the owners of the Working
Interests, partially offset by decreases of approximately $13,000
and $53,000, respectively, related to decreases in volumes of oil
and gas sold and a decrease of approximately $10,000 related to a
decrease in the average price of oil sold. Volumes of oil and
gas sold decreased 648 barrels and 27,971 Mcf, respectively, for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. The decrease in volumes of gas sold
resulted primarily from (i) normal declines in production due to
diminished gas reserves on several wells and (ii) negative prior
period volume adjustments made by the purchaser on two wells
during the three months ended June 30, 1997. The decrease in
production expenses resulted primarily from (i) decreases in
volumes of oil and gas sold during the three months ended June
30, 1997 as compared to the three months ended June 30, 1996 and
(ii) the sale of one well during the third quarter of 1996.
Average oil prices decreased to $18.23 per barrel for the three
months ended June 30, 1997 from $19.42 per barrel for the three
months ended June 30, 1996, while average gas prices increased to
$2.48 per Mcf for the three months ended June 30, 1997 from $1.88
per Mcf for the three months ended June 30, 1996.
Depletion of Net Profits Interests decreased $21,993 (25.4%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This decrease resulted primarily
from (i) decreases in volumes of oil and gas sold during the
three months ended June 30, 1997 as compared to the three months
ended June 30, 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 20.3% for
the three months ended June 30, 1997 from 27.9% for the three
months ended June 30, 1996. This percentage decrease was
primarily due to the increase in the average price of gas sold
during the three months ended June 30, 1997 as compared to the
three months ended June 30, 1996.
General and administrative expenses increased $2,407 (7.5%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from increases in both professional fees and miscellaneous
expenses during the three months ended June 30, 1997 as compared
to the three months ended June 30, 1996. As a percentage of Net
Profits, these expenses remained relatively constant at 10.9% for
the three months ended June 30, 1997 and 10.4% for the three
months ended June 30, 1996.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
-------- --------
Net Profits $597,105 $620,610
Barrels produced 17,127 18,695
-31-
Mcf produced 173,479 254,011
Average price/Bbl $ 19.58 $ 18.48
Average price/Mcf $ 2.42 $ 1.81
As shown in the table above, Net Profits decreased $23,505 (3.8%)
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. Of this decrease, approximately
$29,000 and $146,000, respectively, were related to decreases in
volumes of oil and gas sold, partially offset by increases of
approximately $19,000 and $106,000, respectively, related to
increases in the average prices of oil and gas sold and an
increase of approximately $28,000 related to a decrease in
production expenses incurred by the owners of the Working
Interests. Volumes of oil and gas sold decreased 1,568 barrels
and 80,532 Mcf, respectively, for the six months ended June 30,
1997 as compared to the six months ended June 30, 1996. The
decrease in volumes of gas sold resulted primarily from (i) a
negative prior period volume adjustment made by the purchaser on
one well during the six months ended June 30, 1997, (ii) a
positive prior period volume adjustment made by the purchaser on
another well during the six months ended June 30, 1996, and (iii)
a normal decline in production due to diminished gas reserves on
one well. The decrease in production expenses resulted primarily
from the decreases in volumes of oil and gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. Average oil and gas prices increased to $19.58
per barrel and $2.42 per Mcf, respectively, for the six months
ended June 30, 1997 from $18.48 per barrel and $1.81 per Mcf,
respectively, for the six months ended June 30, 1996.
Depletion of Net Profits Interests decreased $56,640 (31.1%) for
the six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from (i)
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
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 21.0% for the six months ended
June 30, 1997 from 29.3% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the increases in
the average prices of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996.
The P-1 Partnership recognized a non-cash charge against earnings
of $902,042 during the six months ended June 30, 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 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of Net Profits,
these expenses remained relatively constant at 11.6% for the six
months ended June 30, 1997 and 10.9% for the six months ended
June 30, 1996.
-32-
Cumulative cash distributions to the Limited Partners through
June 30, 1997 were $9,354,558 or 86.56% of Limited Partners'
capital contributions.
PARTNERSHIP P-2
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Net Profits $178,224 $238,369
Barrels produced 6,061 6,602
Mcf produced 78,104 100,789
Average price/Bbl $ 18.25 $ 19.56
Average price/Mcf $ 1.56 $ 1.87
As shown in the table above, Net Profits decreased $60,145
(25.2%) for the three months ended June 30, 1997 as compared to
the three months ended June 30, 1996. Of this decrease,
approximately $11,000 and $42,000, respectively, were related to
decreases in volumes of oil and gas sold and approximately $8,000
and $24,000, respectively, were related to decreases in the
average prices of oil and gas sold, partially offset by an
increase of approximately $25,000 related to a decrease in
production expenses incurred by the owners of the Working
Interests. Volumes of oil and gas sold decreased 541 barrels and
22,685 Mcf, respectively, for the three months ended June 30,
1997 as compared to the three months ended June 30, 1996. The
decrease in volumes of gas sold resulted primarily from (i)
normal declines in production due to diminished gas reserves on
three wells and (ii) a negative prior period volume adjustment
made by the purchaser on one well during the three months ended
June 30, 1997. The decrease in production expenses resulted
primarily from (i) the decreases in volumes of oil and gas sold
during the three months ended June 30, 1997 as compared to the
three months ended June 30, 1996 and (ii) a decrease in
production taxes associated with the decrease in Net Profits
discussed above. Average oil and gas prices decreased to $18.25
per barrel and $1.56 per Mcf, respectively, for the three months
ended June 30, 1997 from $19.56 per barrel and $1.87 per Mcf,
respectively, for the three months ended June 30, 1996.
Depletion of Net Profits Interests decreased $24,399 (31.1%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This decrease resulted primarily
from (i) decreases in volumes of oil and gas sold during the
three months ended June 30, 1997 as compared to the three months
ended June 30, 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 30.3% for
the three months ended June 30, 1997 from 32.9% for the three
months ended June 30, 1996. This percentage decrease was
primarily due to the dollar decrease in Depletion of Net Profits
Interests discussed above, partially offset by a decrease in the
average prices of oil and gas sold during the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996.
-33-
General and administrative expenses increased $1,888 (7.0%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from increases in both professional fees and miscellaneous
expenses during the three months ended June 30, 1997 as compared
to the three months ended June 30, 1996. As a percentage of Net
Profits, these expenses increased to 16.2% for the three months
ended June 30, 1997 from 11.3% for the three months ended June
30, 1996. This percentage increase was primarily due to the
decrease in Net Profits discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
-------- --------
Net Profits $469,338 $478,042
Barrels produced 12,143 13,431
Mcf produced 149,715 214,514
Average price/Bbl $ 19.59 $ 18.58
Average price/Mcf $ 2.47 $ 1.81
As shown in the table above, Net Profits remained relatively
constant for the six months ended June 30, 1997 as compared to
the six months ended June 30, 1996. While volumes of oil and gas
sold decreased for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996, any resulting decrease in
Net Profits was offset by increases in the average prices of oil
and gas sold and a decrease in production expenses. Volumes of
oil and gas sold decreased 1,288 barrels and 64,799 Mcf,
respectively, for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996. The decrease in volumes
of gas sold resulted primarily from (i) a negative prior period
volume adjustment made by the purchaser on one well during the
six months ended June 30, 1997, (ii) a positive prior period
volume adjustment made by the purchaser on another well during
the six months ended June 30, 1996, and (iii) normal declines in
production due to diminished gas reserves on three wells. The
decrease in production expenses resulted primarily from the
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996. Average oil and gas prices increased to $19.59 per barrel
and $2.47 per Mcf, respectively, for the six months ended June
30, 1997 from $18.58 per barrel and $1.81 per Mcf, respectively,
for the six months ended June 30, 1996.
Depletion of Net Profits Interests decreased $59,784 (36.3%) for
the six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from (i)
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
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 22.4% for the six months ended
June 30, 1997 from 34.5% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the dollar decrease
in Depletion of Net Profits Interests discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
-34-
The P-2 Partnership recognized a non-cash charge against earnings
of $727,893 during the six months ended June 30, 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 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of Net Profits,
these expenses remained relatively constant at 12.3% for the six
months ended June 30, 1997 and 11.8% for the six months ended
June 30, 1996.
Cumulative cash distributions to the Limited Partners through
June 30, 1997 were $7,136,561 or 79.21% of Limited Partners'
capital contributions.
PARTNERSHIP P-3
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE
MONTHS ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Net Profits $338,563 $442,574
Barrels produced 11,179 12,234
Mcf produced 147,613 190,142
Average price/Bbl $ 18.25 $ 19.57
Average price/Mcf $ 1.62 $ 1.86
As shown in the table above, Net Profits decreased $104,011
(23.5%) for the three months ended June 30, 1997 as compared to
the three months ended June 30, 1996. Of this decrease,
approximately $21,000 and $79,000, respectively, were related to
decreases in volumes of oil and gas sold and approximately
$15,000 and $35,000, respectively, were related to decreases in
the average prices of oil and gas sold, partially offset by an
increase of approximately $45,000 related to a decrease in
production expenses incurred by the owners of the Working
Interests. Volumes of oil and gas sold decreased 1,055 barrels
and 42,529 Mcf, respectively, for the three months ended June 30,
1997 as compared to the three months ended June 30, 1996. The
decrease in volumes of gas sold resulted primarily from (i)
normal declines in production due to diminished gas reserves on
three wells and (ii) negative prior period volume adjustments
made by the purchaser on two wells during the three months ended
June 30, 1997. The decrease in production expenses resulted
primarily from the decreases in volumes of oil and gas sold
during the three months ended June 30, 1997 as compared to the
three months ended June 30, 1996. Average oil and gas prices
decreased to $18.25 per barrel and $1.62 per Mcf, respectively,
for the three months ended June 30, 1997 from $19.57 per barrel
and $1.86 per Mcf, respectively, for the three months ended June
30, 1996.
-35-
Depletion of Net Profits Interests decreased $46,958 (31.9%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This decrease resulted primarily
from (i) decreases in volumes of oil and gas sold during the
three months ended June 30, 1997 as compared to the three months
ended June 30, 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 29.6% for
the three months ended June 30, 1997 from 33.2% for the three
months ended June 30, 1996. This percentage decrease was
primarily due to the dollar decrease in Depletion of Net Profits
Interests discussed above, partially offset by the decrease in
the average prices of oil and gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996.
General and administrative expenses increased $3,766 (7.5%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from increases in both professional fees and miscellaneous
expenses during the three months ended June 30, 1997 as compared
to the three months ended June 30, 1996. As a percentage of Net
Profits, these expenses increased to 16.0% for the three months
ended June 30, 1997 from 11.4% for the three months ended June
30, 1996. This percentage increase was primarily due to the
decrease in Net Profits discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
-------- --------
Net Profits $876,433 $890,130
Barrels produced 22,418 24,885
Mcf produced 282,427 404,994
Average price/Bbl $ 19.60 $ 18.58
Average price/Mcf $ 2.47 $ 1.80
As shown in the table above, Net Profits remained relatively
constant for the six months ended June 30, 1997 as compared to
the six months ended June 30, 1996. While volumes of oil and gas
sold decreased for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996, any resulting decrease in
Net Profits was offset by increases in the average prices of oil
and gas sold and a decrease in production expenses incurred by
the owner of the Working Interests. Volumes of oil and gas sold
decreased 2,467 barrels and 122,567 Mcf, respectively, for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. The decrease in volumes of gas sold
resulted primarily from (i) a negative prior period volume
adjustment made by the purchaser on one well during the six
months ended June 30, 1997, (ii) a positive prior period volume
adjustment made by the purchaser on another well during the six
months ended June 30, 1996, and (iii) normal declines in
production due to diminished gas reserves on three wells. The
decrease in production expenses resulted primarily from decreases
in volumes of oil and gas sold during the six months ended June
30, 1997 as compared to the six months ended June 30, 1996.
Average oil and gas prices increased to $19.60 per barrel and
$2.47 per Mcf, respectively, for the six months ended June 30,
-36-
1997 from $18.58 per barrel and $1.80 per Mcf, respectively, for
the six months ended June 30, 1996.
Depletion of Net Profits Interests decreased $114,917 (37.1%) for
the six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from (i)
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
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 22.2% for the six months ended
June 30, 1997 from 34.8% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the dollar decrease
in Depletion of Net Profits discussed above and the increases in
the average prices of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996.
The P-3 Partnership recognized a non-cash charge against earnings
of $1,413,917 during the six months ended June 30, 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-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 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of Net Profits,
these expenses remained relatively constant at 12.4% for the six
months ended June 30, 1997 and 11.9% for the six months ended
June 30, 1996.
Cumulative cash distributions to the Limited Partners through
June 30, 1997 were $12,802,401 or 75.47% of Limited Partners'
capital contributions.
PARTNERSHIP P-4
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Net Profits $317,362 $368,788
Barrels produced 5,097 6,243
Mcf produced 136,684 184,689
Average price/Bbl $ 18.90 $ 20.04
Average price/Mcf $ 2.36 $ 2.00
As shown in the table above, Net Profits decreased $51,426
(13.9%) for the three months ended June 30, 1997 as compared to
the three months ended June 30, 1996. Of this decrease,
approximately $23,000 and $96,000, respectively, were related to
decreases in volumes of oil and gas sold and approximately $6,000
was related to a decrease in the average price of oil sold,
-37-
partially offset by an increase of approximately $49,000 related
to an increase in the average price of gas sold and an increase
of approximately $25,000 related to a decrease in production
expenses incurred by the owners of the Working Interests.
Volumes of oil and gas sold decreased 1,146 barrels and 48,005
Mcf, respectively, for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. The decrease
in volumes of oil sold resulted primarily from (i) normal
declines in production due to diminished oil reserves on three
wells and (ii) the sale of one oil producing well during the last
half of 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 four
gas producing wells during the last half of 1996, and (iii) the
sale of two gas producing wells during the three months ended
June 30, 1997. The decrease in production expenses resulted
primarily from decreases in volumes of oil and gas sold during
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. Average oil prices decreased to
$18.90 per barrel for the three months ended June 30, 1997 from
$20.04 per barrel for the three months ended June 30, 1996, while
average gas prices increased to $2.36 per Mcf for the three
months ended June 30, 1997 from $2.00 per Mcf for the three
months ended June 30, 1996.
Depletion of Net Profits Interests decreased $63,712 (36.3%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This decrease resulted primarily
from (i) decreases in volumes of oil and gas sold during the
three months ended June 30, 1997 as compared to the three months
ended June 30, 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 35.2% for
the three months ended June 30, 1997 from 47.6% for the three
months ended June 30, 1996. This percentage decrease was
primarily due to the dollar decrease in Depletion of Net Profits
Interests discussed above and the increase in the average price
of gas sold during the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996.
General and administrative expenses increased $2,734 (7.3%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from increases in both professional fees and miscellaneous
expenses during the three months ended June 30, 1997 as compared
to the three months ended June 30, 1996. As a percentage of Net
Profits, these expenses increased to 12.7% for the three months
ended June 30, 1997 from 10.2% for the three months ended June
30, 1996. This percentage increase was primarily due to the
decrease in Net Profits for the three months ended June 30, 1997
as compared to the three months ended June 30, 1996.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
-------- --------
Net Profits $724,735 $714,486
Barrels produced 10,511 12,469
-38-
Mcf produced 279,299 364,510
Average price/Bbl $ 20.36 $ 19.65
Average price/Mcf $ 2.55 $ 1.92
As shown in the table above, Net Profits remained relatively
constant for the six months ended June 30, 1997 as compared to
the six months ended June 30, 1996. While volumes of oil and gas
sold decreased for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996, any resulting decrease in
Net Profits was offset by increases in the average prices of oil
and gas sold and a decrease in production expenses incurred by
the owners of the Working Interests. Volumes of oil and gas sold
decreased 1,958 barrels and 85,211 Mcf, respectively, for the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. The decrease in volumes of oil sold resulted
primarily from (i) normal declines in production due to
diminished oil reserves on three wells, (ii) the sale of one oil
producing well during the last half of 1996, and (iii) the
shutting-in of one well during the three months ended June 30,
1997 due to mechanical difficulties. 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 positive prior period volume adjustment made by the purchaser
on one well during the six months ended June 30, 1996, and (iii)
the sale of several gas producing wells during the last half of
1996. The decrease in production expenses resulted primarily
from decreases in volumes of oil and gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. Average oil and gas prices increased to $20.36
per barrel and $2.55 per Mcf, respectively, for the six months
ended June 30, 1997 from $19.65 per barrel and $1.92 per Mcf,
respectively, for the six months ended June 30, 1996.
Depletion of Net Profits Interests decreased $118,253 (34.1%) for
the six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from (i)
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
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 31.6% for the six months ended
June 30, 1997 from 48.6% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the dollar decrease
in Depletion of Net Profits Interests discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The P-4 Partnership recognized a non-cash charge against earnings
of $752,388 during the six months ended June 30, 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 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
-39-
months ended June 30, 1996. As a percentage of Net Profits,
these expenses remained relatively constant at 10.9% for the six
months ended June 30, 1997 and 11.0% for the six months ended
June 30, 1996.
Cumulative cash distributions to the Limited Partners through
June 30, 1997 were $10,663,945 or 84.43% of Limited Partners'
capital contributions.
PARTNERSHIP P-5
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Net Profits $161,365 $266,293
Barrels produced 1,918 2,537
Mcf produced 113,044 160,698
Average price/Bbl $ 21.83 $ 19.36
Average price/Mcf $ 1.55 $ 1.82
As shown in the table above, Net Profits decreased $104,928
(39.4%) for the three months ended June 30, 1997 as compared to
the three months ended June 30, 1996. Of this decrease,
approximately $12,000 and $87,000, respectively, were related to
decreases in volumes of oil and gas sold and approximately
$31,000 was related to a decrease in the average price of gas
sold, partially offset by an increase of approximately $21,000
related to a decrease in production expenses incurred by the
owners of the Working Interests. Volumes of oil and gas sold
decreased 619 barrels and 47,654 Mcf, respectively, for the three
months ended June 30, 1997 as compared to the three months ended
June 30, 1996. The decrease in volumes of oil sold resulted
primarily from a positive prior period volume adjustment made by
the purchaser on one well during the three months ended June 30,
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 one gas producing
well during the three months ended June 30, 1997, (iii) a
negative prior period volume adjustment made by the purchaser on
one well during the three months ended June 30, 1997, and (iv) a
positive prior period volume adjustment made by the purchaser on
another well during the three months ended June 30, 1996. The
decrease in production expenses resulted primarily from decreases
in volumes of oil and gas sold during the three months ended June
30, 1997 as compared to the three months ended June 30, 1996.
Average oil prices increased to $21.83 per barrel for the three
months ended June 30, 1997 from $19.36 per barrel for the three
months ended June 30, 1996, while average gas prices decreased to
$1.55 per Mcf for the three months ended June 30, 1997 from $1.82
per Mcf for the three months ended June 30, 1996.
Depletion of Net Profits Interests decreased $60,234 (47.6%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This decrease resulted primarily
from (i) decreases in volumes of oil and gas sold during the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996 and (ii) upward revisions in the estimates of
-40-
remaining oil and gas reserves at December 31, 1996. As a
percentage of Net Profits, this expense decreased to 41.2% for
the three months ended June 30, 1997 from 47.6% for the three
months ended June 30, 1996. This percentage decrease was
primarily due to the dollar decrease in Depletion of Net Profits
Interests discussed above.
General and administrative expenses increased $2,561 (7.2%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from increases in both professional fees and miscellaneous
expenses during the three months ended June 30, 1997 as compared
to the three months ended June 30, 1996. As a percentage of Net
Profits, these expenses increased to 23.5% for the three months
ended June 30, 1997 from 13.3% for the three months ended June
30, 1996. This percentage increase was primarily due to the
decrease in Net Profits discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
-------- --------
Net Profits $502,680 $546,443
Barrels produced 4,185 6,015
Mcf produced 259,781 334,938
Average price/Bbl $ 21.27 $ 18.57
Average price/Mcf $ 2.14 $ 1.78
As shown in the table above, Net Profits decreased $43,763 (8.0%)
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. Of this decrease, approximately
$34,000 and $134,000, respectively, were related to decreases in
volumes of oil and gas sold, partially offset by increases of
approximately $11,000 and $94,000, respectively, related to
increases in the average prices of oil and gas sold and an
increase of approximately $21,000 related to a decrease in
production expenses incurred by the owners of the Working
Interests. Volumes of oil and gas sold decreased 1,830 barrels
and 75,157 Mcf, respectively, for the six months ended June 30,
1997 as compared to the six months ended June 30, 1996. The
decrease in volumes of oil sold resulted primarily from (i)
normal declines in production due to diminished oil reserves on
three wells and (ii) a positive prior period volume adjustment
made by the purchaser on one well during the six months ended
June 30, 1996. The decrease in volumes of gas sold resulted
primarily from (i) normal declines in production due to
diminished gas reserves on several wells and (ii) a positive
prior period volume adjustment made by the purchaser on one well
during the six months ended June 30, 1996. The decrease in
production expenses resulted primarily from decreases in volumes
of oil and gas sold during the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. Average oil and
gas prices increased to $21.27 per barrel and $2.14 per Mcf,
respectively, for the six months ended June 30, 1997 from $18.57
per barrel and $1.78 per Mcf, respectively, for the six months
ended June 30, 1996.
Depletion of Net Profits Interests decreased $115,198 (43.1%) for
-41-
the six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from (i)
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
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 30.2% for the six months ended
June 30, 1997 from 48.9% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the dollar decrease
in Depletion of Net Profits Interests discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The P-5 Partnership recognized a non-cash charge against earnings
of $1,018,067 during the six months ended June 30, 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 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of Net Profits,
these expenses increased to 15.2% for the six months ended June
30, 1997 from 13.5% for the six months ended June 30, 1996. This
percentage increase was primarily due to the decrease in Net
Profits discussed above.
Cumulative cash distributions to the Limited Partners through
June 30, 1997 were $5,934,759 or 50.10% of Limited Partners'
capital contributions.
PARTNERSHIP P-6
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Net Profits $407,320 $346,050
Barrels produced 4,516 5,799
Mcf produced 270,185 254,756
Average price/Bbl $ 20.56 $ 20.22
Average price/Mcf $ 1.80 $ 1.61
As shown in the table above, Net Profits increased $61,270
(17.7%) for the three months ended June 30, 1997 as compared to
the three months ended June 30, 1996. Of this increase,
approximately $25,000 and $51,000, respectively, were related to
increases in the volumes and average price of gas sold, partially
offset by a decrease of approximately $26,000 related to a
decrease in volumes of oil sold. Volumes of oil sold decreased
1,283 barrels, while volumes of gas sold increased 15,429 Mcf,
for the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. The decrease in volumes of oil sold
-42-
resulted primarily from (i) normal declines in production due to
diminished oil reserves on several wells, (ii) a positive prior
period volume adjustment made by the purchaser on one well during
the three months ended June 30, 1996, and (iii) the shutting-in
of two wells during the three months ended June 30, 1997 due to
mechanical difficulties. Average oil and gas prices increased to
$20.56 per barrel and $1.80 per Mcf, respectively, for the three
months ended June 30, 1997 from $20.22 per barrel and $1.61 per
Mcf, respectively, for the three months ended June 30, 1996.
Depletion of Net Profits Interests decreased $25,882 (13.0%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This decrease resulted primarily
from 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 42.7% for the three months ended June
30, 1997 from 57.7% for the three months ended June 30, 1996.
This percentage decrease was primarily due to increases in the
average prices of oil and gas sold during the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996.
General and administrative expenses increased $2,453 (5.8%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from an increase in professional fees during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996. As a percentage of Net Profits, these expenses
decreased to 11.1% for the three months ended June 30, 1997 from
12.3% for the three months ended June 30, 1996. This percentage
decrease was primarily due to the increase in oil and gas sales
discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
-------- --------
Net Profits $951,960 $848,146
Barrels produced 8,819 11,505
Mcf produced 505,235 539,769
Average price/Bbl $ 20.89 $ 19.10
Average price/Mcf $ 2.30 $ 1.83
As shown in the table above, Net Profits increased $103,814
(12.2%) for the six months ended June 30, 1997 as compared to the
six months ended June 30, 1996. Of this increase, approximately
$16,000 and $237,000, respectively, were related to increases in
the average prices of oil and gas sold, partially offset by
decreases of approximately $51,000 and $63,000, respectively,
related to decreases in volumes of oil and gas sold and a
decrease of approximately $33,000 related to an increase in
production expenses incurred by the owners of the Working
Interests. Volumes of oil and gas sold decreased 2,686 barrels
and 34,534 Mcf, respectively, for the six months ended June 30,
1997 as compared to the six months ended June 30, 1996. The
decrease in volumes of oil sold resulted primarily from normal
declines in production due to diminished oil reserves on several
wells. The increase in production expenses resulted primarily
from (i) an increase in ad valorem taxes incurred on several
-43-
wells during the six months ended June 30, 1997 as compared to
the six months ended June 30, 1996 and (ii) workover expenses
incurred during the six months ended June 30, 1997 in order to
improve production capabilities on several wells, partially
offset by decreases in volumes of oil and gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. Average oil and gas prices increased to $20.89
per barrel and $2.30 per Mcf, respectively, for the six months
ended June 30, 1997 from $19.10 per barrel and $1.83 per Mcf,
respectively, for the six months ended June 30, 1996.
Depletion of Net Profits Interests decreased $93,555 (22.3%) for
the six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from (i)
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
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 34.3% for the six months ended
June 30, 1997 from 49.5% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the dollar decrease
in Depletion of Net Profits Interests discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The P-6 Partnership recognized a non-cash charge against earnings
of $898,584 during the six months ended June 30, 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 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of Net Profits,
these expenses decreased to 9.7% for the six months ended June
30, 1997 from 10.5% for the six months ended June 30, 1996. This
percentage decrease was primarily due to the increase in oil and
gas sales discussed above.
Cumulative cash distributions to the Limited Partners through
June 30, 1997 were $7,746,248 or 54.15% of Limited Partners
capital contributions.
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PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As further described in the Partnerships' Annual Report on Form
10-K for the year ended December 31, 1996 (the "Form 10-K") the
Partnerships are included in the subject matter of a class action
lawsuit entitled "In Re: PaineWebber Limited Partnerships'
Litigation", Case No. 94-CIV-8558, U.S. District Court, Southern
District of New York. On July 30, 1997 the United States Court
of Appeals for the Second Circuit issued an opinion affirming the
terms of the federal district court's order confirming the
settlement of this lawsuit. The terms of said settlement are
described in the Form 10-K.
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 June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the P-2 Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the P-3 Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the P-4 Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the P-5 Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the P-6 Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K:
None.
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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: August 12, 1997 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: August 12, 1997 By: /s/Patrick M. Hall
-------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
-46-
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 June 30, 1997 and for the six months ended June 30,
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 June 30, 1997 and for the six months ended June 30,
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 June 30, 1997 and for the six months ended June 30,
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 June 30, 1997 and for the six months ended June 30,
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 June 30, 1997 and for the six months ended June 30,
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 June 30, 1997 and for the six months ended June 30,
1997, filed herewith.
All other exhibits are omitted as inapplicable.