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 quarter ended Commission File Number
June 30, 2001 0-12261 (1982-1)
0-12262 (1982-2)
DYCO 1982 OIL AND GAS PROGRAM
(TWO LIMITED PARTNERSHIPS)
(Exact Name of Registrant as specified in its charter)
41-1438430 (1982-1)
Minnesota 41-1438437 (1982-2)
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
Samson Plaza, Two West Second Street, Tulsa, Oklahoma 74103
- ------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(918) 583-1791
----------------------------------------------------
(Registrant's telephone number, including area code)
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
------ ------
-1-
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2001 2000
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 22,947 $ 68,441
Accrued oil and gas sales 47,643 61,238
-------- --------
Total current assets $ 70,590 $129,679
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 65,564 76,296
DEFERRED CHARGE 36,333 36,333
-------- --------
$172,487 $242,308
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 3,821 $ 3,357
-------- --------
Total current liabilities $ 3,821 $ 3,357
ACCRUED LIABILITY $ 11,231 $ 11,231
PARTNERS' CAPITAL:
General Partner, 100 general
partner units $ 1,574 $ 2,277
Limited Partners, issued and
outstanding, 10,000 Units 155,861 225,443
-------- --------
Total Partners' capital $157,435 $227,720
-------- --------
$172,487 $242,308
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-2-
DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
-------- --------
REVENUES:
Oil and gas sales $77,642 $68,837
Interest 1,688 855
Gain on sale of oil and gas
properties - 22,025
------- -------
$79,330 $91,717
COSTS AND EXPENSES:
Oil and gas production $17,523 $15,481
Depreciation, depletion, and
amortization of oil and gas
properties 7,071 1,750
General and administrative
(Note 2) 11,386 11,196
------- -------
$35,980 $28,427
------- -------
NET INCOME $43,350 $63,290
======= =======
GENERAL PARTNER (1%) - net income $ 433 $ 633
======= =======
LIMITED PARTNERS (99%) - net income $42,917 $62,657
======= =======
NET INCOME PER UNIT $ 4.29 $ 6.26
======= =======
UNITS OUTSTANDING 10,100 10,100
======= =======
The accompanying condensed notes are an integral part of
these financial statements.
-3-
DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
-------- --------
REVENUES:
Oil and gas sales $213,358 $120,496
Interest 2,892 1,145
Gain on sale of oil and gas
properties - 22,025
-------- --------
$216,250 $143,666
COSTS AND EXPENSES:
Oil and gas production $ 39,186 $ 30,662
Depreciation, depletion, and
amortization of oil and gas
properties 11,772 6,263
General and administrative
(Note 2) 33,577 30,436
-------- --------
$ 84,535 $ 67,361
-------- --------
NET INCOME $131,715 $ 76,305
======== ========
GENERAL PARTNER (1%) - net income $ 1,317 $ 763
======== ========
LIMITED PARTNERS (99%) - net income $130,398 $ 75,542
======== ========
NET INCOME PER UNIT $ 13.04 $ 7.55
======== ========
UNITS OUTSTANDING 10,100 10,100
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-4-
DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $131,715 $76,305
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 11,772 6,263
Gain on sale of oil and gas
properties - ( 22,025)
(Increase) decrease in accrued
oil and gas sales 13,595 ( 10,253)
Decrease in deferred charge - 2,247
Increase (decrease) in accounts
payable 464 ( 1,247)
-------- -------
Net cash provided by operating
activities $157,546 $51,290
-------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil
and gas properties $ 201 $23,553
Additions to oil and gas
properties ( 1,241) -
-------- -------
Net cash provided (used) by
investing activities ($ 1,040) $23,553
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($202,000) $ -
-------- -------
Net cash used by financing
activities ($202,000) $ -
-------- -------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 45,494) $74,843
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 68,441 23,930
-------- -------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 22,947 $98,773
======== =======
The accompanying condensed notes are an integral part of
these financial statements.
-5-
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2001 2000
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 91,829 $ 75,640
Accrued oil and gas sales 90,142 93,620
-------- --------
Total current assets $181,971 $169,260
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 107,346 124,629
DEFERRED CHARGE 17,988 17,988
-------- --------
$307,305 $311,877
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 4,247 $ 5,281
-------- --------
Total current liabilities $ 4,247 $ 5,281
ACCRUED LIABILITY $ 97,327 $ 97,327
PARTNERS' CAPITAL:
General Partner, 80 general
partner units $ 2,057 $ 2,092
Limited Partners, issued and
outstanding, 8,000 Units 203,674 207,177
-------- --------
Total Partners' capital $205,731 $209,269
-------- --------
$307,305 $311,877
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-6-
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
-------- --------
REVENUES:
Oil and gas sales $162,614 $140,376
Interest 2,628 2,303
-------- --------
$165,242 $142,679
COSTS AND EXPENSES:
Oil and gas production $ 24,069 $ 30,125
Depreciation, depletion, and
amortization of oil and gas
properties 10,541 2,631
General and administrative
(Note 2) 14,039 13,862
-------- --------
$ 48,649 $ 46,618
-------- --------
NET INCOME $116,593 $ 96,061
======== ========
GENERAL PARTNER (1%) - net income $ 1,166 $ 961
======== ========
LIMITED PARTNERS (99%) - net income $115,427 $ 95,100
======== ========
NET INCOME PER UNIT $ 14.43 $ 11.89
======== ========
UNITS OUTSTANDING 8,080 8,080
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-7-
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
-------- --------
REVENUES:
Oil and gas sales $383,235 $249,597
Interest 4,210 3,903
-------- --------
$387,445 $253,500
COSTS AND EXPENSES:
Oil and gas production $ 53,526 $ 54,754
Depreciation, depletion, and
amortization of oil and gas
properties 16,606 9,984
General and administrative
(Note 2) 38,051 35,470
-------- --------
$108,183 $100,208
-------- --------
NET INCOME $279,262 $153,292
======== ========
GENERAL PARTNER (1%) - net income $ 2,793 $ 1,533
======== ========
LIMITED PARTNERS (99%) - net income $276,469 $151,759
======== ========
NET INCOME PER UNIT $ 34.56 $ 18.97
======== ========
UNITS OUTSTANDING 8,080 8,080
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-8-
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
--------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $279,262 $153,292
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 16,606 9,984
(Increase) decrease in accrued oil
and gas sales 3,478 ( 31,344)
Decrease in accounts payable ( 1,034) ( 5,570)
-------- --------
Net cash provided by operating
activities $298,312 $126,362
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 677 $ 516
-------- --------
Net cash provided by investing
activities $ 677 $ 516
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($282,800) ($161,600)
-------- --------
Net cash used by financing
activities ($282,800) ($161,600)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 16,189 ($ 34,722)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 75,640 102,242
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 91,829 $ 67,520
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-9-
DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
CONDENSED NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2001
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 2001, statements of operations for the
three and six months ended June 30, 2001 and 2000, and statements of cash
flows for the six months ended June 30, 2001 and 2000 have been prepared
by Dyco Petroleum Corporation ("Dyco"), the General Partner of the Dyco
Oil and Gas Program 1982-1 and 1982-2 Limited Partnerships (individually,
the "1982-1 Program" or the "1982-2 Program", as the case may be, or,
collectively, the "Programs"), without audit. In the opinion of management
all adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position at June 30, 2001,
results of operations for the three and six months ended June 30, 2001 and
2000, and changes in cash flows for the six months ended June 30, 2001 and
2000 have been made.
Information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that these
financial statements be read in conjunction with the financial statements
and notes thereto included in the Programs' Annual Report on Form 10-K for
the year ended December 31, 2000. The results of operations for the period
ended June 30, 2001 are not necessarily indicative of the results to be
expected for the full year.
OIL AND GAS PROPERTIES
----------------------
Oil and gas operations are accounted for using the full cost method of
accounting. All productive and non-productive costs associated with the
acquisition, exploration and development of oil and gas reserves are
capitalized. The Programs' calculation of depreciation, depletion, and
amortization includes estimated future expenditures to be incurred in
developing proved reserves and estimated dismantlement and abandonment
costs, net of estimated salvage values. In the event the unamortized cost
of oil and gas properties being amortized exceeds the full cost ceiling
(as defined by the Securities and Exchange Commission), the excess is
charged to expense in the period during which such excess occurs. Sales
and abandonments of
-10-
properties are accounted for as adjustments of capitalized costs with no
gain or loss recognized, unless such adjustments would significantly alter
the relationship between capitalized costs and proved oil and gas
reserves.
The provision for depreciation, depletion, and amortization of oil and gas
properties is calculated by dividing the oil and gas sales dollars during
the period by the estimated future gross income from the oil and gas
properties and applying the resulting rate to the net remaining costs of
oil and gas properties that have been capitalized, plus estimated future
development costs.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of each of the Program's partnership agreement, Dyco is
entitled to receive a reimbursement for all direct expenses and general
and administrative, geological and engineering expenses it incurs on
behalf of the Program. During the three months ended June 30, 2001 and
2000, the 1982-1 Program incurred such expenses totaling $11,386 and
$11,196, respectively, of which $9,240 was paid each period to Dyco and
its affiliates. During the six months ended June 30, 2001 and 2000, the
1982-1 Program incurred such expenses totaling $33,577 and $30,436,
respectively, of which $18,480 was paid each period to Dyco and its
affiliates. During the three months ended June 30, 2001 and 2000, the
1982-2 Program incurred such expenses totaling $14,039 and $13,862,
respectively, of which $12,156 was paid each period to Dyco and its
affiliates. During the six months ended June 30, 2001 and 2000, the 1982-2
Program incurred such expenses totaling $38,051 and $35,470, respectively,
of which $24,312 was paid each period to Dyco and its affiliates.
Affiliates of the Program operate certain of the Programs' properties.
Their policy is to bill the Programs for all customary charges and cost
reimbursements associated with these activities.
-11-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
- -----------------------------------------------
This Quarterly Report contains certain forward-looking statements. The
words "anticipate", "believe", "expect", "plan", "intend", "estimate",
"project", "could", "may" and similar expressions are intended to identify
forward-looking statements. Such statements reflect management's current
views with respect to future events and financial performance. This
Quarterly Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions are
management's efforts to accurately reflect the condition and operation of
the Programs.
Use of forward-looking statements and estimates and assumptions involve
risks and uncertainties which include, but are not limited to, the
volatility of oil and gas prices, the uncertainty of reserve information,
the operating risk associated with oil and gas properties (including the
risk of personal injury, death, property damage, damage to the well or
producing reservoir, environmental contamination, and other operating
risks), the prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the general
economic climate, the supply and price of foreign imports of oil and gas,
the level of consumer product demand, and the price and availability of
alternative fuels. Should one or more of these risks or uncertainties
occur or should estimates or underlying assumptions prove incorrect,
actual conditions or results may vary materially and adversely from those
stated, anticipated, believed, estimated, and otherwise indicated.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Net proceeds from the Programs' operations less necessary operating
capital are distributed to investors on a quarterly basis. The net
proceeds from production are not reinvested in productive assets, except
to the extent that producing wells are improved or where methods are
employed to permit more efficient recovery of the Programs' reserves which
would result in a positive economic impact.
The Programs' available capital from subscriptions has been spent on oil
and gas drilling activities. There should be no further material capital
resource commitments in the future. The Programs have no debt commitments.
Management believes that cash for ordinary operational purposes will be
provided by current oil and gas production.
-12-
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction with the
analysis of results of operations provided below. The most important
variables affecting the Programs' revenues are the prices received for the
sale of oil and gas and the volumes of oil and gas produced. The Program's
production is mainly natural gas, so such pricing and volumes are the most
significant factors.
Due to the volatility of oil and gas prices, forecasting future prices is
subject to great uncertainty and inaccuracy. Substantially all of the
Programs' gas reserves are being sold on the "spot market". Prices on the
spot market are subject to wide seasonal and regional pricing fluctuations
due to the highly competitive nature of the spot market. Such spot market
sales are generally short-term in nature and are dependent upon the
obtaining of transportation services provided by pipelines. It is likewise
difficult to predict production volumes. However, oil and gas are
depleting assets, so it can be expected that production levels will
decline over time. Gas prices in late 2000 and early 2001 were
significantly higher than the Program's historical average. This is
attributable to the higher prices for crude oil, a substitute fuel in some
markets, and reduced production due to lower capital investments in 1998
and 1999. In the last few months spot gas prices have generally declined
month to month. It is not possible to accurately predict future pricing
direction.
1982-1 PROGRAM
THREE MONTHS ENDED JUNE 30, 2001 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2000.
Three Months Ended June 30,
---------------------------
2001 2000
------- -------
Oil and gas sales $77,642 $68,837
Oil and gas production expenses $17,523 $15,481
Barrels produced 25 7
Mcf produced 18,170 24,634
Average price/Bbl $ 26.36 $ 34.57
Average price/Mcf $ 4.24 $ 2.78
As shown in the table above, total oil and gas sales increased $8,805
(12.8%) for the three months ended June 30, 2001 as compared to the three
months ended June 30, 2000. Of this increase, approximately $26,000 was
related to an
-13-
increase in the average price of gas sold. This increase was partially
offset by a decrease of approximately $18,000 related to a decrease in
volumes of gas sold. Volumes of oil sold increased 18 barrels, while
volumes of gas sold decreased 6,464 Mcf for the three months ended June
30, 2001 as compared to the three months ended June 30, 2000. The decrease
in volumes of gas sold was primarily due to a positive prior period volume
adjustment made by the purchaser on one well during the three months ended
June 30, 2000 and normal declines in production. Average oil prices
decreased to $26.36 per barrel for the three months ended June 30, 2001
from $34.57 per barrel for the three months ended June 30, 2000. Average
gas prices increased to $4.24 per Mcf for the three months ended June 30,
2001 from $2.78 per Mcf for the three months ended June 30, 2000.
The 1982-1 Program sold one well during the three months ended June 30,
2000 for $23,334 representing approximately 2% of its total reserves. The
proceeds from this sale would have reduced the net book value of the
1982-1 Program's oil and gas properties by 29%, significantly altering its
capitalized cost/proved reserves relationship. Accordingly, capitalized
costs were reduced by approximately 2% and a gain on sale of oil and gas
properties of $22,025 was recognized. There were no similar sales during
the three months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $2,042 (13.2%) for the three months ended June
30, 2001 as compared to the three months ended June 30, 2000. This
increase was primarily due to a negative prior period lease operating
expense adjustment made by the operator on one well during the three
months ended June 30, 2000 and an increase in production taxes associated
with the increase in oil and gas sales. As a percentage of oil and gas
sales, these expenses remained relatively constant at 22.6% for the three
months ended June 30, 2001 and 22.5% for the three months ended June 30,
2000.
Depreciation, depletion, and amortization of oil and gas properties
increased $5,321 (304.1%) for the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000. This increase was
primarily due to a decrease in the gas price used in the valuation of
reserves at June 30, 2001 as compared to June 30, 2000. As a percentage of
oil and gas sales, this expense increased to 9.1% for the three months
ended June 30, 2001 from 2.5% for the three months ended June 30, 2000.
This percentage increase was primarily due to the dollar increase in
depreciation, depletion, and amortization.
-14-
General and administrative expenses increased $190 (1.7%) for the three
months ended June 30, 2001 as compared to the three months ended June 30,
2000. As a percentage of oil and gas sales, these expenses decreased to
14.7% for the three months ended June 30, 2001 from 16.3% for the three
months ended June 30, 2000.
SIX MONTHS ENDED JUNE 30, 2001 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2000.
Six Months Ended June 30,
-------------------------
2001 2000
-------- --------
Oil and gas sales $213,358 $120,496
Oil and gas production expenses $ 39,186 $ 30,662
Barrels produced 41 148
Mcf produced 38,317 46,302
Average price/Bbl $ 27.37 $ 27.78
Average price/Mcf $ 5.54 $ 2.51
As shown in the table above, total oil and gas sales increased $92,862
(77.1%) for the six months ended June 30, 2001 as compared to the six
months ended June 30, 2000. Of this increase, approximately $116,000 was
related to an increase in the average price of gas sold. This increase was
partially offset by a decrease of approximately $20,000 related to a
decrease in volumes of gas sold. Volumes of oil and gas sold decreased 107
barrels and 7,985 Mcf, respectively, for the six months ended June 30,
2001 as compared to the six months ended June 30, 2000. The decrease in
volumes of oil sold was primarily due to the sale of one well during early
2000. The decrease in volumes of gas sold was primarily due to (i) a
positive prior period volume adjustment made by the purchaser on one well
during the six months ended June 30, 2000 and (ii) normal declines in
production. Average oil prices decreased to $27.37 per barrel for the six
months ended June 30, 2001 from $27.78 per barrel for the six months ended
June 30, 2000. Average gas prices increased to $5.54 per Mcf for the six
months ended June 30, 2001 from $2.51 per Mcf for the six months ended
June 30, 2000.
The 1982-1 Program sold one well during the six months ended June 30, 2000
for $23,334 representing approximately 2% of its total reserves. The
proceeds from this sale would have reduced the net book value of the
1982-1 Program's oil and gas properties by 29%, significantly altering its
capitalized cost/proved reserves relationship. Accordingly, capitalized
costs were reduced by approximately 2% and a gain on sale of oil and gas
properties of $22,025 was recognized. There were no similar sales during
the six months ended June 30, 2001.
-15-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $8,524 (27.8%) for the six months ended June
30, 2001 as compared to the six months ended June 30, 2000. This increase
was primarily due to an increase in production taxes associated with the
increase in oil and gas sales. As a percentage of oil and gas sales, these
expenses decreased to 18.4% for the six months ended June 30, 2001 from
25.4% for the six months ended June 30, 2000. This percentage decrease was
primarily due to the increase in the average price of gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $5,509 (88.0%) for the six months ended June 30, 2001 as
compared to the six months ended June 30, 2000. This increase was
primarily due to (i) the increase in the average price of gas sold and
(ii) a decrease in the gas price used in the valuation of reserves at June
30, 2001 as compared to June 30, 2000. As a percentage of oil and gas
sales, this expense increased to 5.5% for the six months ended June 30,
2001 from 5.2% for the six months ended June 30, 2000.
General and administrative expenses increased $3,141 (10.3%) for the six
months ended June 30, 2001 as compared to the six months ended June 30,
2000. This increase was primarily due to increases in printing and postage
expenses and reserve study fees. As a percentage of oil and gas sales,
these expenses decreased to 15.7% for the six months ended June 30, 2001
from 25.3% for the six months ended June 30, 2000. This percentage
decrease was primarily due to the increase in oil and gas sales.
1982-2 PROGRAM
THREE MONTHS ENDED JUNE 30, 2001 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2000.
Three Months Ended June 30,
---------------------------
2001 2000
-------- --------
Oil and gas sales $162,614 $140,376
Oil and gas production expenses $ 24,069 $ 30,125
Barrels produced 24 20
Mcf produced 38,941 45,667
Average price/Bbl $ 30.08 $ 33.95
Average price/Mcf $ 4.16 $ 3.06
As shown in the table above, total oil and gas sales increased $22,238
(15.8%) for the three months ended June 30, 2001 as compared to the
three months ended June 30, 2000. Of this increase, approximately
$43,000 was related to an increase in the average price of gas sold.
This
-16-
increase was partially offset by a decrease of approximately $21,000
related to a decrease in volumes of gas sold. Volumes of oil sold
increased 4 barrels, while volumes of gas sold decreased 6,726 Mcf for the
three months ended June 30, 2001 as compared to the three months ended
June 30, 2000. The decrease in volumes of gas sold was primarily due to
(i) the shutting-in of one well in order to perform repairs during the
three months ended June 30, 2001 and (ii) the receipt of an increased
percentage of sales on two wells during the three months ended June 30,
2000 due to gas balancing. Average oil prices decreased to $30.08 per
barrel for the three months ended June 30, 2001 from $33.95 per barrel for
the three months ended June 30, 2000. Average gas prices increased to
$4.16 per Mcf for the three months ended June 30, 2001 from $3.06 per Mcf
for the three months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $6,056 (20.1%) for the three months ended June
30, 2001 as compared to the three months ended June 30, 2000. This
decrease was primarily due to workover expenses incurred on one well
during the three months ended June 30, 2000 in order to improve the
recovery of reserves. As a percentage of oil and gas sales, these expenses
decreased to 14.8% for the three months ended June 30, 2001 from 21.5% for
the three months ended June 30, 2000. This percentage decrease was
primarily due to the increase in the average price of gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $7,910 (300.6%) for the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000. This increase was
primarily due to a decrease in the gas price used in the valuation of
reserves at June 30, 2001 as compared to June 30, 2000. As a percentage of
oil and gas sales, this expense increased to 6.5% for the three months
ended June 30, 2001 from 1.9% for the three months ended June 30, 2000.
This percentage increase was primarily due to the dollar increase in
depreciation, depletion, and amortization.
General and administrative expenses increased $177 (1.3%) for the three
months ended June 30, 2001 as compared to the three months ended June 30,
2000. As a percentage of oil and gas sales, these expenses decreased to
8.6% for the three months ended June 30, 2001 from 9.9% for the three
months ended June 30, 2000. This percentage decrease was primarily due to
the increase in oil and gas sales.
-17-
SIX MONTHS ENDED JUNE 30, 2001 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2000.
Six Months Ended June 30,
-------------------------
2001 2000
-------- --------
Oil and gas sales $383,235 $249,597
Oil and gas production expenses $ 53,526 $ 54,754
Barrels produced 24 58
Mcf produced 71,826 93,715
Average price/Bbl $ 30.08 $ 29.62
Average price/Mcf $ 5.33 $ 2.65
As shown in the table above, total oil and gas sales increased $133,638
(53.5%) for the six months ended June 30, 2001 as compared to the six
months ended June 30, 2000. Of this increase, approximately $193,000 was
related to an increase in the average price of gas sold. This increase was
partially offset by a decrease of approximately $58,000 related to a
decrease in volumes of gas sold. Volumes of oil and gas sold decreased 34
barrels and 21,889 Mcf, respectively, for the six months ended June 30,
2001 as compared to the six months ended June 30, 2000. The decrease in
volumes of gas sold was primarily due to (i) the shutting-in of one well
in order to perform repairs during the six months ended June 30, 2001,
(ii) the receipt of a reduced percentage of sales on one well during the
six months ended June 30, 2001 due to gas balancing, and (iii) the receipt
of an increased percentage of sales on two other wells during the six
months ended June 30, 2000 due to gas balancing. As of the date of this
Quarterly Report, Management does not know whether the gas balancing
adjustments will continue in the future, thereby continuing to affect
volumes of gas produced for the 1982-2 Program. Average oil and gas prices
increased to $30.08 per barrel and $5.33 per Mcf, respectively, for the
six months ended June 30, 2001 from $29.62 per barrel and $2.65 per Mcf,
respectively, for the six months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $1,228 (2.2%) for the six months ended June
30, 2001 as compared to the six months ended June 30, 2000. This decrease
was primarily due to workover expenses incurred on one well during the six
months ended June 30, 2000 in order to improve the recovery of reserves.
This decrease was partially offset by an increase in production taxes
associated with the increase in oil and gas sales. As a percentage of oil
and gas sales, these expenses decreased to 14.0% for the six months ended
June 30, 2001 from 21.9% for the six months ended June 30, 2000. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
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Depreciation, depletion, and amortization of oil and gas properties
increased $6,622 (66.3%) for the six months ended June 30, 2001 as
compared to the six months ended June 30, 2000. This increase was
primarily due to (i) the increase in the average price of gas sold and
(ii) a decrease in the gas price used in the valuation of reserves at June
30, 2001 as compared to June 30, 2000. As a percentage of oil and gas
sales, this expense increased to 4.3% for the six months ended June 30,
2001 from 4.0% for the six months ended June 30, 2000.
General and administrative expenses increased $2,581 (7.3%) for the six
months ended June 30, 2001 as compared to the six months ended June 30,
2000. As a percentage of oil and gas sales, these expenses decreased to
9.9% for the six months ended June 30, 2001 from 14.2% for the six months
ended June 30, 2000. This percentage decrease was primarily due to the
increase in oil and gas sales.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Programs do not hold any market risk sensitive instruments.
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PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K.
None.
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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, thereunto duly authorized.
DYCO OIL AND GAS PROGRAM 1982-1 LIMITED
PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED
PARTNERSHIP
(Registrant)
BY: DYCO PETROLEUM CORPORATION
General Partner
Date: August 8, 2001 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: August 8, 2001 By: /s/Patrick M. Hall
-------------------------------
(Signature)
Patrick M. Hall
Chief Financial Officer
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