United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 0-18329
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0251424
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 200, Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices)
Issuer's telephone number (713) 358-8401
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes x No
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
BALANCE SHEET
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MARCH 31,
ASSETS 1996
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(Unaudited)
CURRENT ASSETS:
Cash $ 18,103
Accounts receivable - oil & gas sales 50,318
Other current assets 2,431
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Total current assets 70,852
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OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 2,206,638
Less accumulated depreciation and depletion 1,930,098
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Property, net 276,540
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TOTAL $ 347,392
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LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 39,453
Payable to general partner 2,378
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Total current liabilities 41,831
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PARTNERS' CAPITAL:
Limited partners 277,751
General partner 27,810
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Total partners' capital 305,561
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TOTAL $ 347,392
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See accompanying notes to financial statements.
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I-1
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
STATEMENTS OF OPERATIONS
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(UNAUDITED) THREE MONTHS ENDED
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MARCH 31, MARCH 31,
1996 1995
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REVENUES:
Oil and gas sales $ 74,622 80,824
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EXPENSES:
Depreciation and depletion 16,074 26,482
Lease operating expenses 36,476 52,117
Production taxes 5,577 5,503
General and administrative 5,852 4,968
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Total expenses 63,979 89,070
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NET INCOME (LOSS) $ 10,643 (8,246)
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See accompanying notes to financial statements.
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I-2
ENEX OIL AND GAS INCOME PROGRAM IV SERIES 5, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31, MARCH 31,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 10,643 $ (8,246)
Adjustments to reconcile net income (loss) to net
cash provided by operating
activities:
Depreciation, depletion and amortization 16,074 26,482
(Increase) decrease in:
Accounts receivable - oil & gas sales 1,240 6,174
Other current assets 361 (494)
(Decrease) in:
Accounts payable (5,693) (5,656)
Payable to general partner (18,955) (1,278)
Total adjustments (6,973) 25,228
Net cash provided by operating activities 3,670 16,982
CASH FLOWS FROM INVESTING ACTIVITIES:
Property (additions) credits - development costs (791) 2,092
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (6,461) (6,461)
NET INCREASE (DECREASE) IN CASH (3,582) 12,613
CASH AT BEGINNING OF YEAR 21,685 3,812
CASH AT END OF PERIOD $ 18,103 $ 16,425
See accompanying notes to financial statements.
I-3
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
1. The interim financial information included herein is unaudited; however,
such information reflects all adjustments (consisting solely of normal
recurring adjustments) which are, in the opinion of management, necessary
for a fair presentation of results for the interim periods.
2. A cash distribution was made to the limited partners of the Company in the
amount of $5,813, representing net revenues from the sale of oil and gas
produced from properties owned by the Company. This distribution was made
on January 31, 1996.
I-4
Item 2Management's Discussion and Analysis or Plan of Operation.
First Quarter 1996 Compared to First Quarter 1995
Oil and gas sales for the first quarter decreased from $80,824 in 1995 to
$74,622 in 1996. This represents a decrease of $6,202 (8%). Oil sales decreased
by $9,549 or 22%. A 29% decrease in oil production reduced sales by $12,972.
This decrease was partially offset by an 11% increase in average oil sales
prices. Gas sales increased by $3,347 or 9%. A 31% increase in average gas sales
prices increased sales by $9,418. This increase was partially offset by a 17%
decrease in gas production. The decreases in oil and gas production are
primarily a result of natural production declines, which were especially
pronounced on the Speary acquisition. The increases in average sales prices
correspond with increases in the overall market for the sale of oil and gas.
Lease operating expenses decreased from $52,117 in the first quarter of 1995 to
$36,476 in the first quarter of 1996. The decrease of $15,641 or 30% is
primarily due to the declines in production, noted above.
Depreciation and depletion expense decreased from $26,482 in the first quarter
of 1995 to $16,074 in the first quarter of 1995. This represents a decrease of
$10,408 (39%). The changes in production, noted above, caused depreciation and
depletion expense to decrease of $6,091. A 21% decrease in the depletion rate
caused an additional reduction of $4,317. The rate decrease is primarily due to
an upward revision of oil and gas reserves during December 1995.
General and administrative expenses increased from $4,968 in 1995 to $5,852 in
1996. This increase of $884 (18%) is primarily due to $2,585 higher direct
expenses incurred byt he Company in 1996, partially offset by less staff time
being required to manage the Company's operations.
CAPITAL RESOURCES AND LIQUIDITY
The Company's cash flow from operations is a direct result of the amount of net
proceeds realized from the sale of oil and gas production. Accordingly, the
changes in cash flow from 1995 to 1996 are primarily due to the changes in oil
and gas sales described above. It is the general partner's intention to
distribute substantially all of the Company's available cash flow to the
Company's partners.
The Company will continue to recover its reserves and distribute to the limited
partners the net proceeds realized from the sale of oil and gas production after
payment of its debt obligations. Distribution amounts are subject to change if
net revenues are greater or less than expected. Nonetheless, the general partner
believes the Company will continue to have sufficient cash flow to fund
operations and to maintain a regular pattern of distributions.
As of March 31, 1996, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
PART II. OTHER INFORMATION
Item 1. Legal proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults upon Senior Securities.
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5. Other Information.
Not Applicable
Item 6. Exhibits and Reports on Form 8-K.
(a) There are no exhibits to this report.
(b) The Company filed no reports on Form 8-K
during the quarter ended March 31, 1996.
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 hereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM IV - 5, L.P.
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(Registrant)
By:ENEX RESOURCES CORPORATION
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General Partner
By: /s/ R. E. Densford
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R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
May 11, 1996 By: /s/ James A. Klein
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James A. Klein
Controller and Chief
Accounting Officer