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, 1997
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 0-18326
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 6, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0251426
(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) 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 6, L.P.
BALANCE SHEET
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MARCH 31,
ASSETS 1997
----------------
(Unaudited)
CURRENT ASSETS:
Cash $ 29,691
Accounts receivable - oil & gas sales 24,382
Other current assets 1,195
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Total current assets 55,268
----------------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 2,016,391
Less accumulated depreciation and depletion 1,875,257
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Property, net 141,134
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TOTAL $ 196,402
================
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 3,431
Payable to general partner 7,580
----------------
Total current liabilities 11,011
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PARTNERS' CAPITAL
Limited partners 165,839
General partner 19,552
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Total partners' capital 185,391
----------------
TOTAL $ 196,402
================
Number of $500 Limited Partner units outstanding 4,326
See accompanying notes to financial statements.
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ENEX OIL & GAS INCOME PROGRAM IV - SERIES 6, L.P.
STATEMENTS OF OPERATIONS
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(UNAUDITED) THREE MONTHS ENDED
----------------------------------------
MARCH 31, MARCH 31,
1997 1996
------------------- -------------------
REVENUES:
Oil and gas sales $ 60,423 $ 42,381
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EXPENSES:
Depreciation and depletion 7,760 10,307
Lease operating expenses 19,463 15,696
Production taxes 3,794 2,551
General and administrative 4,276 5,531
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Total expenses 35,293 34,085
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NET INCOME $ 25,130 $ 8,296
=================== ===================
See accompanying notes to financial statements.
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ENEX OIL & GAS INCOME PROGRAM IV - SERIES 6, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 1996 AND
FOR THE THREE MONTHS ENDED MARCH 31, 1997
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PER $500
LIMITED
PARTNER
GENERAL LIMITED UNIT OUT-
TOTAL PARTNER PARTNERS STANDING
----------------- ----------------- ----------------- -----------------
BALANCE, JANUARY 1, 1996 $ 151,255 $ 13,579 $ 137,676 $ 32
CASH DISTRIBUTIONS (54,101) (6,866) (47,235) (11)
NET INCOME 86,439 11,880 74,559 17
----------------- ----------------- ----------------- -----------------
BALANCE, DECEMBER 31, 1996 183,593 18,593 165,000 38
CASH DISTRIBUTIONS (23,332) (2,332) (21,000) (5)
NET INCOME 25,130 3,291 21,839 5
----------------- ----------------- ----------------- -----------------
BALANCE, MARCH 31, 1997 $ 185,391 $ 19,552 $ 165,839 (1) $ 38
================= ================= ================= =================
(1) Includes 320 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 6, L.P.
STATEMENTS OF CASH FLOWS
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(UNAUDITED)
THREE MONTHS ENDED
------------------------------------------
MARCH 31, MARCH 31,
1997 1996
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 25,130 $ 8,296
------------------- -------------------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and depletion 7,760 10,307
Decrease in:
Accounts receivable - oil & gas sales 12,086 758
(Decrease) in:
Accounts payable (157) (2,115)
Payable to general partner (5,490) (18,947)
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Total adjustments 14,199 (9,997)
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Net cash provided (used) by operating activities 39,329 (1,701)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (23,332) (5,997)
------------------- -------------------
NET INCREASE (DECREASE) IN CASH 15,997 (7,698)
CASH AT BEGINNING OF YEAR 13,694 16,585
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CASH AT END OF PERIOD $ 29,691 $ 8,887
=================== ===================
See accompanying notes to financial statements.
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ENEX OIL & GAS INCOME PROGRAM IV - SERIES 6, 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 $21,000, representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on January 31, 1997.
3. On April 7, 1997, the Company's General Partner mailed proxy material
to the limited partners 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 proxy
material.
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Item 2. Management's Discussion and Analysis or Plan of Operation.
First Quarter 1997 Compared to First Quarter 1996
Oil and gas sales for the first quarter increased from $42,381 in 1996 to
$60,423 in 1997. This represents an increase of $18,042 (43%). Oil sales
increased by $8,004 or 36%. A 15% increase in oil production increased sales by
$3,421. An 18% increase in the average oil sales price increased sales by an
additional $4,583. Gas sales increased by $10,038 or 49%. A 30% increase in gas
production increased sales by $6,040. A 15% increase in the average gas sales
price increased sales by an additional $3,998. The increases in oil and gas
production are primarily due to higher production from the El Mac acquisition
which had an acidization treatment in the third quarter of 1996. The increases
in average prices correspond with higher prices in the overall market for the
sale of oil and gas.
Lease operating expenses increased from $15,696 in the first quarter of 1996 to
$19,463 in the first quarter of 1997. The increase of $3,767 (24%) is primarily
due to the changes in production, noted above.
Depreciation and depletion expense decreased from $10,307 in the first quarter
of 1996 to $7,760 in the first quarter of 1997. This represents a decrease of
$2,547 (25%). A 39% decrease in the depletion rate reduced depreciation and
depletion expense by $4,966. This decrease was partially offset by the changes
in production, noted above. The rate decrease is primarily due to an upward
revision of the oil and gas reserves during December 1996.
General and administrative expenses decreased from $5,531 in the first quarter
of 1996 to $4,276 in the first quarter of 1997. This decrease of $1,255 (23%) is
primarily due to 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 1996 to 1997 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.
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On April 7, 1997, the Company's General Partner mailed proxy material to the
limited partners 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 proxy material.
As of March 31, 1997, 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 March 31, 1997.
II-1
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 - 6, L.P.
---------------------
(Registrant)
By:ENEX RESOURCES CORPORATION
--------------------------
General Partner
By: /s/ R. E. Densford
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R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
May 11, 1997 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer