UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2000
Commission File No. 33-26097-08
PARKER & PARSLEY 90-B CONV., L.P.
(Exact name of Registrant as specified in its charter)
Delaware 75-2329284
------------------------------------- ---------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1400 Williams Square West, 5205 N. O'Connor Blvd., Irving, Texas 75039
- ---------------------------------------------------------------- ---------
(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code : (972) 444-9001
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 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 / /
PARKER & PARSLEY 90-B CONV., L.P.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of March 31, 2000 and
December 31, 1999...................................... 3
Statements of Operations for the three months
ended March 31, 2000 and 1999........................... 4
Statement of Partners' Capital for the three months
ended March 31, 2000.................................... 5
Statements of Cash Flows for the three months
ended March 31, 2000 and 1999........................... 6
Notes to Financial Statements............................. 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations..................... 7
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K.......................... 10
27.1 Financial Data Schedule
Signatures................................................ 11
2
PARKER & PARSLEY 90-B CONV., L.P.
(A Delaware Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
March 31, December 31,
2000 1999
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash $ 119,312 $ 132,031
Accounts receivable - oil and gas sales 163,541 143,411
---------- ----------
Total current assets 282,853 275,442
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,619,327 9,612,816
Accumulated depletion (7,965,809) (7,939,049)
---------- ----------
Net oil and gas properties 1,653,518 1,673,767
---------- ----------
$ 1,936,371 $ 1,949,209
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 27,405 $ 24,507
Partners' capital:
Managing general partner 19,088 19,246
Limited partners (11,897 interests) 1,889,878 1,905,456
---------- ----------
1,908,966 1,924,702
---------- ----------
$ 1,936,371 $ 1,949,209
========== ==========
The financial information included as of March 31, 2000 has been prepared by
the managing general partner without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
3
PARKER & PARSLEY 90-B CONV., L.P.
(A Delaware Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
-------------------------
2000 1999
---------- ----------
Revenues:
Oil and gas $ 330,703 $ 153,407
Interest 2,093 939
Gain on disposition of assets 2,023 -
--------- ---------
334,819 154,346
--------- ---------
Costs and expenses:
Oil and gas production 133,608 121,603
General and administrative 10,132 5,818
Depletion 26,760 61,543
--------- ---------
170,500 188,964
--------- ---------
Net income (loss) $ 164,319 $ (34,618)
========= =========
Allocation of net income (loss):
Managing general partner $ 1,643 $ (346)
========= =========
Limited partners $ 162,676 $ (34,272)
========= =========
Net income (loss) per limited partnership interest $ 13.67 $ (2.88)
========= =========
Distributions per limited partnership interest $ 14.98 $ 2.10
========= =========
The financial information included herein has been prepared by
the managing general partner without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
4
PARKER & PARSLEY 90-B CONV., L.P.
(A Delaware Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
---------- ---------- ----------
Balance at January 1, 2000 $ 19,246 $1,905,456 $1,924,702
Distributions (1,801) (178,254) (180,055)
Net income 1,643 162,676 164,319
--------- --------- ---------
Balance at March 31, 2000 $ 19,088 $1,889,878 $1,908,966
========= ========= =========
The financial information included herein has been prepared by
the managing general partner without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
5
PARKER & PARSLEY 90-B CONV., L.P.
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
March 31,
-------------------------
2000 1999
---------- ----------
Cash flows from operating activities:
Net income (loss) $ 164,319 $ (34,618)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depletion 26,760 61,543
Gain on disposition of assets (2,023) -
Changes in assets and liabilities:
Accounts receivable (20,130) (16,624)
Accounts payable 2,898 5,407
--------- ---------
Net cash provided by operating activities 171,824 15,708
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (6,511) (4,283)
Proceeds from asset dispositions 2,023 -
--------- ---------
Net cash used in investing activities (4,488) (4,283)
--------- ---------
Cash flows used in financing activities:
Cash distributions to partners (180,055) (25,254)
--------- ---------
Net decrease in cash (12,719) (13,829)
Cash at beginning of period 132,031 76,330
--------- ---------
Cash at end of period $ 119,312 $ 62,501
========= =========
The financial information included herein has been prepared by
the managing general partner without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
6
PARKER & PARSLEY 90-B CONV., L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(Unaudited)
Note 1. Organization and nature of operations
Parker & Parsley 90-B Conv., L.P. (the "Partnership") was organized as a general
partnership in 1990 under the laws of the State of Texas and was converted to a
Delaware limited partnership on August 1, 1991.
The Partnership engages in oil and gas development and production in Texas and
is not involved in any industry segment other than oil and gas.
Note 2. Basis of presentation
In the opinion of management, the unaudited financial statements of the
Partnership as of March 31, 2000 include all adjustments and accruals consisting
only of normal recurring accrual adjustments which are necessary for a fair
presentation of the results for the interim period. These interim results are
not necessarily indicative of results for a full year. Certain reclassifications
may have been made to the March 31, 1999 financial statements to conform to the
March 31, 2000 financial statement presentations.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted in this Form 10-Q pursuant to the rules and
regulations of the Securities and Exchange Commission. The financial statements
should be read in conjunction with the financial statements and the notes
thereto contained in the Partnership's Report on Form 10-K for the year ended
December 31, 1999, as filed with the Securities and Exchange Commission, a copy
of which is available upon request by writing to Rich Dealy, Vice President and
Chief Accounting Officer, 5205 North O'Connor Boulevard, 1400 Williams Square
West, Irving, Texas 75039-3746.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations(1)
Results of Operations
Revenues:
The Partnership's oil and gas revenues increased 116% to $330,703 for the three
months ended March 31, 2000 as compared to $153,407 for the same period in 1999.
The increase in revenues resulted from higher average prices received, offset by
a decline in production. For the three months ended March 31, 2000, 8,990
barrels of oil, 3,979 barrels of natural gas liquids ("NGLs") and 15,621 mcf of
gas were sold, or 15,573 barrel of oil equivalents ("BOEs"). For the three
7
months ended March 31, 1999, 9,432 barrels of oil, 3,774 barrels of NGLs and
17,569 mcf of gas were sold, or 16,134 BOEs.
The average price received per barrel of oil increased $15.94, or 136%, from
$11.76 for the three months ended March 31, 1999 to $27.70 for the same period
in 2000. The average price received per barrel of NGLs increased $8.49, or 157%,
from $5.40 for the three months ended March 31, 1999 to $13.89 for the same
period in 2000. The average price received per mcf of gas increased 33% from
$1.26 during the three months ended March 31, 1999 to $1.68 for the same period
in 2000. The market price for oil and gas has been extremely volatile in the
past decade, and management expects a certain amount of volatility to continue
in the foreseeable future. The Partnership may therefore sell its future oil and
gas production at average prices lower or higher than that received during the
three months ended March 31, 2000.
The volatility of commodity prices has had, and continues to have, a significant
impact on the Partnership's revenues and operating cash flow and could result in
additional decreases to the carrying value of the Partnership's oil and gas
properties.
A gain on disposition of assets of $2,023 was recognized during the three months
ended March 31, 2000 from the sale of equipment on one fully depleted well.
Costs and Expenses:
Total costs and expenses decreased to $170,500 for the three months ended March
31, 2000 as compared to $188,964 for the same period in 1999, a decrease of
$18,464, or 10%. The decrease was due to a decline in depletion, offset by
increases in production costs and general and administrative expenses ("G&A").
Production costs were $133,608 for the three months ended March 31, 2000 and
$121,603 for the same period in 1999, resulting in a $12,005 increase, or 10%.
The increase was the result of higher production taxes due to increased oil and
gas revenues and well maintenance costs incurred to stimulate well production.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A
increased, in aggregate, 74% from $5,818 for the three months ended March 31,
1999 to $10,132 for the same period in 2000 primarily due to increased oil and
gas revenues.
Depletion was $26,760 for the three months ended March 31, 2000 compared to
$61,543 for the same period in 1999, a decrease of $34,783, or 57%. The decrease
was primarily the result of a combination of factors that included an increase
in proved reserves during the three months ended March 31, 2000 due to higher
commodity prices, a reduction in the Partnership's net depletable basis from
charges taken in accordance with Statement of Financial Accounting Standards No.
121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed Of" ("SFAS 121") during the fourth quarter of 1999 and a
decline in oil production of 442 barrels for the period ended March 31, 2000
compared to the same period in 1999.
8
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $156,116 during the three
months ended March 31, 2000 from the same period in 1999. The increase was
primarily attributable to an increase of $174,944 in oil and gas sales receipts,
offset by increases in operating costs paid of $15,631 and in G&A expenses paid
of $3,197.
Net Cash Used in Investing Activities
The Partnership's principal investing activities for the three months ended
March 31, 2000 and 1999 were related to expenditures for oil and gas equipment
on active properties.
Proceeds from asset dispositions of $2,023 received during the three months
ended March 31, 2000 were derived from the sale of equipment on one fully
depleted well.
Net Cash Used in Financing Activities
For the three months ended March 31, 2000, cash distributions to the partners
were $180,055, of which $1,801 was distributed to the managing general partner
and $178,254 to the limited partners. For the same period ended March 31, 1999,
cash distributions to the partners were $25,254, of which $252 was distributed
to the managing general partner and $25,002 to the limited partners.
Other Items
Year 2000
During 1998, the managing general partner established a "Year 2000" project that
assessed the Partnership's and the managing general partner's internal Year 2000
problem; took remedial actions necessary to minimize the Year 2000 risk exposure
to the managing general partner and third parties; and, tested the managing
general partner's systems and processes once remedial actions were taken.
The managing general partner has closely monitored its information and
non-information technology systems since the beginning of 2000 and has
identified no significant Year 2000 failures or problems.
- ---------------
(1) "Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations" contains forward looking statements that involve
risks and uncertainties. Accordingly, no assurances can be given that the
actual events and results will not be materially different than the
anticipated results described in the forward looking statements.
9
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27.1 Financial Data Schedule
(b) Reports on Form 8-K - none.
10
PARKER & PARSLEY 90-B CONV., L.P.
(A Delaware Limited Partnership)
S I G N A T U R E S
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 thereunto duly authorized.
PARKER & PARSLEY 90-B CONV., L.P.
By: Pioneer Natural Resources USA, Inc.
Managing General Partner
Dated: May 9, 2000 By: /s/ Rich Dealy
-------------------------------
Rich Dealy, Vice President
and Chief Accounting Officer
11