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 33-34348-04
ENEX OIL & GAS INCOME PROGRAM V - SERIES 4, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0303885
(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 I. Financial Statements
ENEX OIL & GAS INCOME PROGRAM V - SERIES 4, L.P.
BALANCE SHEET
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MARCH 31,
ASSETS 1996
-------------------
(Unaudited)
CURRENT ASSETS:
Cash $ 39,354
Accounts receivable - oil & gas sales 121,956
Other current assets 10,201
-------------------
Total current assets 171,511
-------------------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 1,451,194
Less accumulated depreciation and depletion 570,262
-------------------
Property, net 880,932
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ORGANIZATIONAL COSTS
(Net of accumulated amortization of $54,161) 4,924
-------------------
TOTAL $ 1,057,367
===================
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 85,176
Payable to general partner 675
-------------------
Total current liabilities 85,851
-------------------
PARTNERS' CAPITAL:
Limited partners 944,089
General partner 27,427
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Total partners' capital 971,516
-------------------
TOTAL $ 1,057,367
===================
See accompanying notes to financial statements.
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I-1
ENEX OIL & GAS INCOME PROGRAM V - SERIES 4, L.P.
STATEMENTS OF OPERATIONS
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(UNAUDITED) THREE MONTHS ENDED
----------------------------
MARCH 31, MARCH 31,
1996 1995
----------- ----------
REVENUES:
Oil and gas sales $ 234,956 $ 227,814
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EXPENSES:
Depreciation, depletion and amortization 32,307 34,511
Lease operating expenses 128,207 143,898
Production taxes 15,129 13,173
General and administrative 11,652 14,451
----------- ----------
Total expenses 187,295 206,033
----------- ----------
INCOME FROM OPERATIONS 47,661 21,781
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OTHER EXPENSE:
Interest expense - 132
----------- ----------
NET INCOME $ 47,661 $ 21,913
=========== ==========
See accompanying notes to financial statements.
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I-2
ENEX OIL AND GAS INCOME PROGRAM V - SERIES 4, L.P.
STATEMENTS OF CASH FLOWS
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(UNAUDITED)
THREE MONTHS ENDED
----------------------------
MARCH 31, MARCH 31,
1996 1995
------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 47,661 21,913
------------ -----------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization 32,307 34,511
Decrease in:
Accounts receivable - oil & gas sales (15,206) (5,977)
Increase (decrease) in:
Accounts payable 1,679 (16,506)
Payable to general partner (5,169) (12,234)
------------ -----------
Total adjustments 13,611 (206)
------------ -----------
Net cash provided by operating activities 61,272 21,707
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CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs - (10,593)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (55,498) (52,319)
------------ -----------
NET INCREASE (DECREASE) IN CASH 5,774 (41,205)
CASH AT BEGINNING OF YEAR 33,580 86,044
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CASH AT END OF PERIOD $ 39,354 44,839
============ ===========
See accompanying notes to financial statements.
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I-3
ENEX OIL & GAS INCOME PROGRAM V - SERIES 4, 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 $49,949, 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 of 1996 Compared to First Quarter 1995
Oil and gas sales for the first quarter increased from $227,814 in 1995 to
$234,956 in 1996. This represents an increase of $7,142 or 3%. Oil sales
decreased by $1,618 or 1%. A 4% increase in oil production increased sales by
$7,199. This increase was partially offset by a 2% decrease in average oil
prices. Gas sales increased by $8,760 or 27%. A 39% increase in average gas
prices increased sales by $11,564. This increase was partially offset by a 9%
decrease in gas production. The increase in oil production is due to higher
production from the Charlotte acquisition. The decrease in average oil sales
price was primarily the result of a higher net profits payout on the Charlotte
acquisition due to lower lease operating expenses incurred in 1996. The decrease
in gas production was primarily due to natural production declines. The increase
in average gas prices correspond with increases in the overall market for the
sale of gas.
Lease operating expenses decreased from $143,898 in the first quarter of 1995 to
$128,207 in the first quarter of 1996. The decrease of $15,691, or 11%, was
primarily the result of lower operating expenses incurred at the Charlotte
acquisition.
Depreciation and depletion expense was $31,557 in the first quarter of 1994 as
compared with $29,353 in the first quarter of 1995. This represents a decrease
of $2,204 or 7%. The changes in production, noted above, reduced depreciation
and depletion expense by $114. A 7% decrease in the depletion rate reduced
depreciation and depletion expense by an additional $2,090. The decrease in the
depletion rate was primarily a result of an upward revision of the oil and gas
reserves during December 1995.
General and administrative expenses decreased from $14,451 in the first quarter
of 1995 to $11,652 in the first quarter of 1995. This decrease of $2,799 or 19%
was primarily a result of less staff time being required to manage the Company's
operations, partially offset by $1,720 higher 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. 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.
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
II-1
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 V - SERIES 4, 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
May 11, 1996 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer