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 0-18853
ENEX 90-91 INCOME AND RETIREMENT FUND - SERIES 1, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0299892
(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 90-91 INCOME AND RETIREMENT FUND - SERIES 1, L.P.
BALANCE SHEET
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MARCH 31,
ASSETS 1996
-------------------
(Unaudited)
CURRENT ASSETS:
Cash $ 11,964
Accounts receivable - oil & gas sales 11,467
-------------------
Total current assets 23,431
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OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests 1,324,866
Less accumulated depletion 786,644
-------------------
Property, net 538,222
-------------------
TOTAL $ 561,653
===================
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 343
Payable to general partner 14,477
---------------------
Total current liabilities 14,820
---------------------
NONCURRENT PAYABLE TO GENERAL PARTNER 28,955
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PARTNERS' CAPITAL:
Limited partners 509,729
General partner 8,149
-------------------
Total partners' capital 517,878
-------------------
TOTAL $ 561,653
===================
See accompanying notes to financial statements.
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I-1
ENEX 90-91 INCOME AND RETIREMENT FUND - SERIES 1, L.P.
STATEMENTS OF OPERATIONS
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(UNAUDITED) THREE MONTHS ENDED
------------------------------------------
MARCH 31, MARCH 31,
1996 1995
-------------------- -------------------
REVENUES:
Oil and gas sales $ 38,685 $ 31,028
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EXPENSES:
Depletion and amortization 22,630 29,169
Impairment of property 29,056 -
Production taxes 2,609 4,412
General and administrative 3,463 4,422
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Total expenses 57,758 38,003
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NET LOSS $ (19,073) $ (6,975)
==================== ===================
See accompanying notes to financial statements.
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I-2
ENEX INCOME AND RETIREMENT FUND - SERIES 1, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31, MARCH 31,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (19,073) $ (6,975)
Adjustments to reconcile net loss to net cash
provided by operating activities
Depletion and amortization 22,630 29,169
Impairment of property 29,056 -
Decrease in:
Accounts receivable - oil & gas sales 652 1,408
(Decrease) in:
Accounts payable (3,862) (3,313)
Payable to general partner (11,351) (669)
Total adjustments 37,125 26,595
Net cash provided by operating activities 18,052 19,620
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (15,574) (15,091)
NET INCREASE IN CASH 2,478 4,529
CASH AT BEGINNING OF YEAR 9,486 9,607
CASH AT END OF PERIOD $ 11,964 $ 14,136
See accompanying notes to financial statements.
I-3
ENEX 90-91 INCOME AND RETIREMENT FUND - SERIES 1,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 $14,017, representing net revenues from the sale of oil and gas
produced from properties owned by the Company. This distribution was made
on January 31, 1995.
3. 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. In the
first quarter of 1996, the Company recognized a non-cash impairment
provision of $29,056 for certain oil and gas properties due to market
indications that the carrying amounts were not fully recoverable.
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 increased from $31,028 in 1995 to
$38,685 in 1996. This represents an increase of $7,657 (25%). Oil sales
decreased by $333 or 3%. A 16% decrease in oil production reduced sales by
$1,843. This decrease was partially offset by a 16% increase in average net oil
sales prices. Gas sales increased by $7,990 or 41%. A 48% increase in average
net gas sales prices increased sales by $8,918. This increase was partially
offset by a 5% decrease in gas production. The decreases in oil and gas
production were primarily due to natural production declines. The changes in
average net prices correspond with changes in the overall market for the sale of
oil and gas.
Depletion expense decreased from $26,566 in the first quarter of 1995 to $22,630
in the first quarter of 1996. This represents a decrease of $3,936 (15%). The
changes in production, noted above, reduced depletion expense by $2,113. A 7%
decrease in the depletion rate reduced depletion expense by an additional
$1,823. The decrease in the depletion rate was primarily due to the lower
property basis resulting from the recognition of a $29,056 property impairment
recognized in the first quarter of 1996.
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. In the first quarter of
1996, the Company recognized a non-cash impairment provision of $29,056 for
certain oil and gas properties due to market indications that the carrying
amounts were not fully recoverable.
General and administrative expenses decreased from $4,422 in the first quarter
of 1995 to $3,463 in the first quarter of 1996. This decrease of $959 (22%) is
primarily due to less staff time being required to manage the Company's
operations in 1996, partially offset by a $1,199 increase in direct expenses
incurred by the Company in 1996.
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.
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
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 90-91 INCOME AND RETIREMENT
FUND - SERIES 1, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By:
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
May 11, 1996 By:
James A. Klein
Controller and Chief
Accounting Officer