United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB/A
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 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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September 30,
ASSETS 1996
----------------
(Unaudited)
CURRENT ASSETS:
Cash $ 42,262
Accounts receivable - oil & gas sales 64,214
Other current assets 20,781
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Total current assets 127,257
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OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 2,225,839
Less accumulated depreciation and depletion 1,976,132
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Property, net 249,707
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TOTAL $ 376,964
=============
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 42,365
Payable to general partner 4,601
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Total current liabilities 46,966
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PARTNERS' CAPITAL:
Limited partners 296,436
General partner 33,562
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Total partners' capital 329,998
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TOTAL $ 376,964
=============
Number of $500 Limited Partner units outstanding 4,561
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 NINE MONTHS ENDED
-------------------------------------- ----------------------------------------
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
----------------- ----------------- ----------------- -------------------
REVENUES:
Oil and gas sales $ 116,452 $ 75,993 $ 278,477 $ 236,794
----------------- ----------------- ----------------- -------------------
EXPENSES:
Depreciation and depletion 23,770 26,492 62,108 86,248
Lease operating expenses 30,811 31,220 100,349 120,467
Production taxes 8,932 5,733 22,238 16,918
General and administrative 3,607 4,684 14,186 14,095
----------------- ----------------- ----------------- -------------------
Total expenses 67,120 68,129 198,881 237,728
----------------- ----------------- ----------------- -------------------
NET INCOME (LOSS) $ 49,332 $ 7,864 $ 79,596 $ (934)
================= ================= ================= ===================
See accompanying notes to financial statements.
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ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
FOR THE TWO YEARS ENDED DECEMBER 31, 1995
AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
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PER $500
LIMITED
PARTNER
GENERAL LIMITED UNIT OUT-
TOTAL PARTNER PARTNERS STANDING
-------------- ------------- -------------- --------
BALANCE, JANUARY 1, 1994 $ 368,428 $ 9,893 $ 358,535 $ 79
CASH DISTRIBUTIONS (79,971) (7,096) (63,875) (14)
NET INCOME (LOSS) 11,614 15,564 (3,950) (1)
-------------- ------------- -------------- --------
BALANCE, DECEMBER 31, 1994 309,071 18,361 290,710 64
CASH DISTRIBUTIONS (36,193) (3,621) (32,572) (7)
NET INCOME 28,501 11,047 17,454 (4)
-------------- ------------- -------------- --------
BALANCE, DECEMBER 31, 1995 $ 301,379 $ 25,787 $ 275,592 $ 61
CASH DISTRIBUTIONS (50,977) (6,396) (44,581) (10)
NET INCOME 79,596) 14,171 65,425 14
-------------- ------------- -------------- --------
BALANCE, SEPTEMBER 30, 1996 $ 329,998 $ 33,562 $ 296,436 (1) $ 65
============== ============= ============== ========
(1) Includes 420 units purchased by the general partner as a limited partner.
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)
NINE MONTHS ENDED
--------------------------------------------
September 30, September 30,
1996 1995
------------------- -------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 79,596 $ (934)
------------------- -------------------
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation and depletion 62,108 86,248
(Increase) decrease in:
Accounts receivable - oil & gas sales (12,656) 9,476
Other current assets (17,989) (1,655)
(Decrease) in:
Accounts payable (2,781) (10,810)
Payable to affiliated partnership - (116)
Payable to general partner (16,732) (43,572)
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Total adjustments 11,950 39,571
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Net cash provided by operating activities 91,546 38,637
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CASH FLOWS FROM INVESTING ACTIVITIES:
Property (additions) credits - development costs (19,992) 1,581
------------------- -------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (50,977) (28,338)
------------------- -------------------
NET INCREASE IN CASH 20,577 11,880
CASH AT BEGINNING OF YEAR 21,685 3,812
------------------- -------------------
CASH AT END OF PERIOD $ 42,262 $ 15,692
=================== ===================
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 $22,935, representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on July 31, 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. On November 13, 1996, the Company submitted amended
preliminary proxy material to the SEC with respect to this
consolidation. The terms and conditions of the proposed consolidation
are set forth in such preliminary proxy material.
4. The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standard ("SFAS") No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed Of," which
requires certain assets to be reviewed for impairment whenever events or
circumstances indicate the carrying amount may not be recoverable. Prior to
this pronouncement, the Company assessed properties on an aggregate basis.
Upon adoption of SFAS 121, the Company began assessing properties on an
individual basis, wherein total capitalized costs may not exceed the
property's fair market value. The fair market value of each property was
determined by H. J. Gruy and Associates, ("Gruy"). To determine the fair
market value, Gruy estimated each property's oil and gas reserves, applied
certain assumptions regarding price and cost escalations, applied a 10%
discount factor for time and certain discount factors for risk, location,
type of ownership interest, category of reserves, operational
characteristics, and other factors.
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Item 2. Management's Discussion and Analysis or Plan of Operation.
Third Quarter 1995 Compared to Third Quarter 1996
Oil, gas and gas plant sales for the third quarter increased to $116,452 in 1996
from $75,993 in 1995. This represents an increase of $40,459 (53%). Oil sales
increased by $20,809 or 54%. A 58% increase in the average oil sales price
increased sales by $21,781. This increase was partially offset by a 3% decrease
in oil production. Gas sales increased by $19,650 (52%). An 8% increase in gas
production increased sales by $3,250. A 40% increase in the average gas sales
price increased sales by an additional $16,400. 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 higher average oil and gas sales prices were
primarily the result of increased production from the Speary acquisition, which
has a relatively higher sales price, coupled with higher prices in the overall
market for the sale of oil and gas.
Lease operating expenses decreased to $30,811 in the third quarter of 1996 from
$31,220 in the third quarter of 1995. The decrease of $409 (1%) is primarily due
to the changes in production, noted above.
Depreciation and depletion expense decreased to $23,770 in the third quarter of
1996 from $26,492 in the third quarter of 1995. This represents a decrease of
$2,722 (10%). A 13% decrease in the depletion rate reduced depreciation and
depletion expense by $3,587. 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 decreased to $3,607 in the third quarter of
1996 from $4,684 in the third quarter of 1995. This decrease of $1,077 (23%) is
primarily due to less staff time being required to manage the Company's
operations.
First Nine Months in 1995 Compared to First Nine Months in 1996
Oil, gas and gas plant sales for the first nine months increased to $278,477 in
1996 from $236,794 in 1995. This represents a increase of $41,683 (18%). Oil
sales increased by $5,536 or 5%. An 18% increase in the average oil sales price
increased sales by $18,953. This increase was partially offset by an 11%
decrease in oil production. Gas sales increased by $48,390 (46%). A 3% increase
in gas production increased sales by $3,393. A 41% increase in the average gas
sales price increased sales by an additional $44,815. Sales of plant products
decreased by $12,243 or 95%. A 97% decrease in the production of plant products
reduced sales by $12,592. This decrease was partially offset by a 99% 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
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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 increase in the average oil sales price corresponds with 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 gas sales market.
Lease operating expenses decreased to $100,349 in the first nine months of 1996
from $120,467 in the first nine months of 1995. The decrease of $20,118 (17%) is
primarily due to the changes in production, coupled with workover costs incurred
on the Speary acquisition in 1995.
Depreciation and depletion expense decreased to $62,108 in the first nine months
of 1996 from $86,248 in the first nine months of 1995. This represents a
decrease of $24,140 (28%). The changes in production, noted above, reduced
depreciation and depletion expense by $14,455. A 13% decrease in the depletion
rate reduced depreciation and depletion by an additional $9,685. The rate
decrease is due to an upward revision of oil and gas reserves during December
1995.
General and administrative expenses increased to $14,186 in the first nine
months of 1996 from $14,095 in the first nine months of 1995. This increase of
$91 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's "available cash flow" is essentially equal to
the net amount of cash provided by operating, financing and investing
activities.
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. On
November 13, 1996, the Company submitted amended preliminary proxy material to
the SEC with respect to this consolidation. The terms and conditions of the
proposed consolidation are set forth in such preliminary proxy material.
As of September 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 September 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
December 23, 1996 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer