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 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)
Registrant'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 I. Financial Statements
ENEX OIL & GAS INCOME PROGRAM V - SERIES 4, L.P.
BALANCE SHEET
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JUNE 30,
ASSETS 1996
-------------------
(Unaudited)
CURRENT ASSETS:
Cash ................................................ $ 68,119
Accounts receivable - oil & gas sales ............... 104,759
Receivable from affiliated limited partnership ...... 10,201
----------
Total current assets .................................. 183,079
----------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved mineral interests and related
equipment & facilities 1,451,194
Less accumulated depreciation and depletion ........ 592,132
----------
Property, net ......................................... 859,062
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ORGANIZATIONAL COSTS
(Net of accumulated amortization of $57,116) .......... 1,969
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TOTAL ................................................. $1,044,110
==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable ................................... $ 80,412
Payable to general partner ......................... 3,762
----------
Total current liabilities ............................. 84,174
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PARTNERS' CAPITAL:
Limited partners ................................... 935,373
General partner .................................... 24,563
----------
Total partners' capital ............................... 959,936
----------
TOTAL ................................................. $1,044,110
==========
See accompanying notes to financial statements.
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ENEX OIL & GAS INCOME PROGRAM V - SERIES 4, 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 and gas sales ...................... $207,215 $223,699 $442,171 $451,513
-------- -------- -------- --------
EXPENSES:
Depreciation, depletion and amortization 24,825 35,284 57,132 69,795
Lease operating expenses ............... 120,019 143,415 248,226 287,313
Production taxes ....................... 12,699 12,514 27,828 25,687
General and administrative ............. 10,080 15,310 21,732 29,761
-------- -------- -------- --------
Total expenses ........................... 167,623 206,523 354,918 412,556
-------- -------- -------- --------
INCOME FROM OPERATIONS ................... 39,592 17,176 87,253 38,957
-------- -------- -------- --------
OTHER INCOME:
Interest income ......................... -- 132 -- 132
-------- -------- -------- --------
NET INCOME ............................... $ 39,592 $ 17,308 $ 87,253 $ 39,089
======== ======== ======== ========
See accompanying notes to financial statements.
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ENEX OIL AND GAS INCOME PROGRAM V - SERIES 4, 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 .................................... $ 87,253 $ 39,089
--------- ---------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization .... 57,132 69,795
Decrease in:
Accounts receivable - oil & gas sales ....... 1,991 4,939
Increase (decrease) in:
Accounts payable ........................... (3,085) 42,962
Payable to general partner ................. (2,082) 3,786
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Total adjustments ............................. 53,956 121,482
--------- ---------
Net cash provided by operating activities ..... 141,209 160,571
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CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs .... -- (32,278)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ......................... (106,670) (94,666)
--------- ---------
NET INCREASE IN CASH .......................... 34,539 33,627
CASH AT BEGINNING OF YEAR ..................... 33,580 86,044
--------- ---------
CASH AT END OF PERIOD ......................... $ 68,119 $ 119,671
========= =========
See accompanying notes to financial statements.
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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 $38,171, 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 the Second Quarter 1996
Oil and gas sales for the second quarter decreased to $207,215 in 1996 from
$223,699 in 1995. This represents a decrease of $16,484 (7%). Oil sales
decreased by $4,251 (2%). A 2% decrease in the average oil sales price reduced
sales by $4,351. This decrease was partially offset by a slight increase in oil
production. Gas sales decreased by $12,233 (65%). An 82% decrease in gas
production reduced sales by $15,427. This decrease was partially offset by a 92%
increase in the average gas sales price. The increase in oil production is due
to higher production from the Charlotte acquisition which had the application of
an improved chemicals program in 1996. 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 a result of lower production from the S. Midway
acquisition due to the partial shut-in of production for a workover in 1996. The
increase in the average gas sales price was due to relatively higher production
from properties with a higher gas sales price coupled with higher prices in the
overall market for the sale of gas.
Lease operating expenses decreased to $120,019 in the second quarter of 1996
from $143,415 in 1995. The decrease of $23,396 (16%) was primarily due to the
changes in production, noted above, coupled with lower operating expenses
incurred at the Charlotte acquisition.
Depreciation and depletion expense decreased to $21,870 in the second quarter of
1996 from $32,329 in the second quarter of 1995. This represents a decrease of
$10,459 (32%). The changes in production, noted above, caused depreciation and
depletion expense to decrease by $9,244. A 5% decrease in the depletion rate
reduced depreciation and depletion expense by an additional $1,215. 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 to $10,080 in the second quarter
of 1996 from $15,310 in 1995. This decrease of $5,230 is due to less staff time
being required to manage the Company's operations.
First Six Months in 1995 Compared to the First Six Months in 1996
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Oil and gas sales for the first six months decreased to $442,171 in 1996 from
$451,513 in 1995. This represents a decrease of $9,342 (2%). Oil sales decreased
by $5,869 (1%). A 3% decrease in the average oil sales price reduced sales by
$13,442. This decrease was partially offset by a 2% increase in oil production.
Gas sales decreased by $3,473 (7%). A 46% decrease in gas production reduced
sales by $23,865. This decrease was partially offset by a 74% increase in the
average gas sales price. The increase in oil production is due to higher
production from the Charlotte acquisition which had the application of an
improved chemicals program in 1996. 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 a result of lower production from the S. Midway acquisition due
to the partial shut-in of production for a workover in 1996. The increase in the
average gas sales price was
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due to relatively higher production from properties with a higher gas sales
price coupled with higher prices in the overall market for the sale of gas.
Lease operating expenses decreased to $248,226 in the first six months of 1996
from $287,313 in 1995. The decrease of $39,087 or (14%) was primarily due to the
changes in production, noted above, coupled with lower operating expenses
incurred at the Charlotte acquisition.
Depreciation and depletion expense decreased to $51,223 in the first six months
of 1996 from $63,886 in the first six months of 1995. This represents a decrease
of $12,663 (20%). The changes in production, noted above, caused depreciation
and depletion expense to decrease by $9,270. A 6% decrease in the depletion rate
reduced depreciation and depletion expense by an additional $3,393. 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 to $21,732 in the first six months
of 1996 from $29,761 in 1995. This decrease of $8,189 is primarily a result of
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 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 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
August 13, 1996 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer