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 June 30, 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
Transitional Small Business Disclosure Format (Check one):
Yes No x
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
BALANCE SHEET
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JUNE 30,
ASSETS 1996
----------------
(Unaudited)
CURRENT ASSETS:
Cash $ 42,565
Accounts receivable - oil & gas sales 56,662
Other current assets 2,427
-----------------
Total current assets 101,654
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OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 2,213,200
Less accumulated depreciation and depletion 1,952,362
-----------------
Property, net 260,838
-----------------
TOTAL $ 362,492
=================
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 46,266
Payable to general partner 6,915
-----------------
Total current liabilities 53,181
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PARTNERS' CAPITAL:
Limited partners 280,197
General partner 29,114
-----------------
Total partners' capital 309,311
-----------------
TOTAL $ 362,492
=================
See accompanying notes to financial statements.
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ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
STATEMENTS OF OPERATIONS
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(UNAUDITED) QUARTER ENDED SIX MONTHS ENDED
----------------------------------- --------------------------------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1996 1995 1996 1995
-------------- ----------------- ----------------- -----------------
REVENUES:
Oil, gas and gas plant sales $ 87,403 $ 79,977 $ 162,025 $ 160,801
-------------- ----------------- ----------------- -----------------
EXPENSES:
Depreciation and depletion 22,264 33,274 38,338 59,756
Lease operating expenses 33,062 37,130 69,538 89,247
Production taxes 7,729 5,682 13,306 11,185
General and administrative 4,727 4,443 10,579 9,411
-------------- ----------------- ----------------- -----------------
Total expenses 67,782 80,529 131,761 169,599
-------------- ----------------- ----------------- -----------------
NET INCOME (LOSS) $ 19,621 $ (552) $ 30,264 $ (8,798)
============== ================= ================= =================
See accompanying notes to financial statements.
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ENEX OIL AND GAS INCOME PROGRAM IV SERIES 5, L.P.
STATEMENTS OF CASH FLOWS
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(UNAUDITED)
SIX MONTHS ENDED
--------------------------------------------
JUNE 30, JUNE 30,
1996 1995
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 30,264 $ (8,798)
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Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation and depletion 38,338 59,756
(Increase) decrease in:
Accounts receivable - oil & gas sales (5,104) 7,542
Receivable from affiliated partnership - (1,682)
Other current assets 365 (2,125)
(Decrease) in:
Accounts payable 1,120 (2,081)
Payable to affiliated partnership - (116)
Payable to general partner (14,418) (23,325)
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Total adjustments 20,301 37,969
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Net cash provided by operating activities 50,565 29,171
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CASH FLOWS FROM INVESTING ACTIVITIES:
Property (additions) credits - development costs (7,353) 4,736
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CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (22,332) (16,623)
------------------- -------------------
NET INCREASE IN CASH 20,880 17,284
CASH AT BEGINNING OF YEAR 21,685 3,812
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CASH AT END OF PERIOD $ 42,565 $ 21,096
=================== ===================
See accompanying notes to financial statements.
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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 $11,728, representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on April 30, 1996.
3.) On August 9, 1996, the Company's General Partner submitted preliminary
proxy material to the Securities Exchange Commission with respect to a
proposed consolidation of the Company with 33 other managed limited
partnerships. The terms and conditions of the proposed consolidation
are set forth in such preliminary proxy material.
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Item 2. Management's Discussion and Analysis or Plan of Operation.
Second Quarter 1995 Compared to Second Quarter 1996
Oil, gas and gas plant sales for the second quarter increased to $87,403 in 1996
from $79,977 in 1995. This represents an increase of $7,426 (9%). Oil sales
decreased by $8,014 or 21%. A 14% decrease in oil production reduced sales by
$5,421. An 8% decrease in the average oil sales price reduced sales by an
additional $2,593. Gas sales increased by $25,393 (82%). A 16% increase in gas
production increased sales by $5,036. A 57% increase in the average gas sales
price increased sales by an additional $20,357. Sales of plant products
decreased by $9,953 (98%). A 99% decrease in the production of plant products
reduced sales by $10,082. This decrease was partially offset by a 115% increase
in the average plant product sales price. The decrease in oil production was
primarily due to natural production declines. The increase in gas production was
due to increased production from the Speary acquisition on which a compressor
had been reworked. The lower production of plant products was due to the
recognition of back revenues from the Kalkaska gas plant in the second quarter
of 1995. The higher average plant product sales price was primarily due to
recognition of back revenues from the Kalkaska gas plant in the second quarter
of 1995, which had a relatively lower sales price. The decrease in the average
oil sales price was the result of relatively lower production from properties
with a relatively higher sales price, partially offset by higher prices in the
overall market for the sale of oil. The higher average gas sales price was
primarily the result of increased production from the Speary acquisition, which
has a relatively higher gas sales price, coupled with higher prices in the
overall market for the sale of gas.
Lease operating expenses decreased to $33,062 in the second quarter of 1996 from
$37,130 in the second quarter of 1995. The decrease of $4,068 (11%) is primarily
due to the changes in production, noted above.
Depreciation and depletion expense decreased to $22,264 in the second quarter of
1996 from $33,274 in the second quarter of 1995. This represents a decrease of
$11,010 (33%). The changes in production, noted above, reduced depreciation and
depletion expense by $8,633. A 10% decrease in the depletion rate reduced
depreciation and depletion expense by an additional $2,377. This decrease was
partially offset by the changes in production, noted above. The rate decrease is
primarily due to an upward revision of oil and gas reserves during December
1995.
General and administrative expenses increased to $4,727 in the second quarter of
1996 from $4,443 in the second quarter of 1995. This increase of $284 (6%) is
primarily due to more staff time being required to manage the Company's
operations.
First Six Months in 1995 Compared to First Six Months in 1996
Oil, gas and gas plant sales for the first six months increased to $162,025 in
1996 from $160,801 in 1995. This represents a decrease of $1,224 (1%). Oil sales
decreased by $15,251 or 19%. A 16% decrease in oil production reduced sales by
$12,730. A 4% decrease in the average oil sales price decreased sales by an
additional $2,521. Gas sales increased by $28,740 (42%). A
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1% decrease in gas production increased sales by $483. A 41% increase in the
average gas sales price increased sales by an additional $28,257. Sales of plant
products decreased by $12,265 or 96%. A 98% decrease in the production of plant
products reduced sales by $12,493. This decrease was partially offset by a 16%
increase in the average plant product sales price. The decrease in oil
production was primarily due to natural production declines. The increase in gas
production was primarily due to increased production from the Speary acquisition
on which a compressor was reworked. The lower production of plant products was
due to the recognition of back revenues from the Kalkaska gas plant in the
second quarter of 1995. The higher average plant product sales price was
primarily due to recognition of back revenues from the Kalkaska gas plant in the
second quarter of 1995, which had a relatively lower sales price. The decrease
in the average oil sales price was primarily the result of relatively lower
production from the Speary acquisition which has a relatively higher oil sales
price. The higher average gas sales price was primarily the result of increased
production from the Speary acquisition, which has a relatively higher gas sales
price, coupled with higher prices in the overall gas sales market.
Lease operating expenses decreased to $69,538 in the first six months of 1996
from $89,247 in the first six months of 1995. The decrease of $19,709 is
primarily due to the changes in production, noted above, coupled with workover
costs incurred on the Speary acquisition in 1995.
Depreciation and depletion expense decreased to $38,338 in the first six months
of 1996 from $59,756 in the first six months of 1995. This represents a decrease
of $21,418 (36%). The changes in production, noted above, reduced depreciation
and depletion expense by $14,766. A 15% decrease in the depletion rate reduced
depreciation and depletion by an additional $6,652. The rate decrease is due to
an upward revision of oil and gas reserves during December 1995.
General and administrative expenses increased to $10,579 in the first six months
of 1996 from $9,411 in the first six months of 1995. This increase of $1,168
(12%) is primarily due to more 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.
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.
On August 9, 1996, the Company's General Partner submitted preliminary proxy
material to the Securities Exchange Commission with respect to a proposed
consolidation of the Company with 33 other managed limited partnerships. The
terms and conditions of the proposed consolidation are set forth in such
preliminary proxy material.
As of June 30, 1996, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
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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 June 30, 1996.
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
ENEX OIL & GAS INCOME
PROGRAM IV - SERIES 5, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By: /s/ R. E. Densford
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
August 13, 1996 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer