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 June 30, 2001
Commission File Number:
II-A: 0-16388 II-D: 0-16980 II-G: 0-17802
II-B: 0-16405 II-E: 0-17320 II-H: 0-18305
II-C: 0-16981 II-F: 0-17799
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
---------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
II-A 73-1295505 II-B 73-1303341
II-C 73-1308986 II-D 73-1329761
II-E 73-1324751 II-F 73-1330632
Oklahoma II-G 73-1336572 II-H 73-1342476
- ---------------------------- -------------------------------
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(918) 583-1791
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
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2001 2000
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,050,533 $1,070,734
Accounts receivable:
Oil and gas sales 790,663 1,042,022
---------- ----------
Total current assets $1,841,196 $2,112,756
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,786,420 2,827,525
DEFERRED CHARGE 813,560 813,560
---------- ----------
$5,441,176 $5,753,841
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 87,575 $ 169,414
Gas imbalance payable 92,583 103,856
---------- ----------
Total current liabilities $ 180,158 $ 273,270
ACCRUED LIABILITY $ 242,152 $ 252,704
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 349,072) ($ 333,839)
Limited Partners, issued and
outstanding, 484,283 units 5,367,938 5,561,706
---------- ----------
Total Partners' capital $5,018,866 $5,227,867
---------- ----------
$5,441,176 $5,753,841
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $1,452,896 $1,405,952
Interest income 9,603 8,567
Gain on sale of oil and gas
properties 43 309
---------- ----------
$1,462,542 $1,414,828
COSTS AND EXPENSES:
Lease operating $ 303,840 $ 237,657
Production tax 85,290 80,209
Depreciation, depletion, and
amortization of oil and gas
properties 83,678 124,158
General and administrative
(Note 2) 132,498 132,202
---------- ----------
$ 605,306 $ 574,226
---------- ----------
NET INCOME $ 857,236 $ 840,602
========== ==========
GENERAL PARTNER - NET INCOME $ 92,294 $ 94,378
========== ==========
LIMITED PARTNERS - NET INCOME $ 764,942 $ 746,224
========== ==========
NET INCOME per unit $ 1.58 $ 1.54
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $3,139,007 $2,645,688
Interest income 21,627 16,502
Gain on sale of oil and gas
properties 3,277 309
---------- ----------
$3,163,911 $2,662,499
COSTS AND EXPENSES:
Lease operating $ 548,075 $ 555,635
Production tax 195,681 140,093
Depreciation, depletion, and
amortization of oil and gas
properties 163,777 259,078
General and administrative
(Note 2) 283,580 305,290
---------- ----------
$1,191,113 $1,260,096
---------- ----------
NET INCOME $1,972,798 $1,402,403
========== ==========
GENERAL PARTNER - NET INCOME $ 209,566 $ 161,907
========== ==========
LIMITED PARTNERS - NET INCOME $1,763,232 $1,240,496
========== ==========
NET INCOME per unit $ 3.64 $ 2.56
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,972,798 $1,402,403
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 163,777 259,078
Gain on sale of oil and gas
properties ( 3,277) ( 309)
(Increase) decrease in accounts
receivable - oil and gas sales 251,359 ( 270,864)
Decrease in accounts payable ( 81,839) ( 24,458)
Decrease in gas imbalance payable ( 11,273) -
Decrease in accrued liability ( 10,552) -
---------- ----------
Net cash provided by operating
activities $2,280,993 $1,365,850
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 129,049) ($ 50,815)
Proceeds from sale of oil and
gas properties 9,654 309
---------- ----------
Net cash used by investing activities ($ 119,395) ($ 50,506)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,181,799) ($1,251,413)
---------- ----------
Net cash used by financing activities ($2,181,799) ($1,251,413)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 20,201) $ 63,931
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,070,734 723,978
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,050,533 $ 787,909
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2001 2000
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 722,598 $ 714,162
Accounts receivable:
Oil and gas sales 544,191 728,372
---------- ----------
Total current assets $1,266,789 $1,442,534
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,776,558 1,530,002
DEFERRED CHARGE 204,209 204,209
---------- ----------
$3,247,556 $3,176,745
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 59,678 $ 128,102
Gas imbalance payable 17,720 17,720
---------- ----------
Total current liabilities $ 77,398 $ 145,822
ACCRUED LIABILITY $ 87,878 $ 87,878
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 278,949) ($ 269,807)
Limited Partners, issued and
outstanding, 361,719 units 3,361,229 3,212,852
---------- ----------
Total Partners' capital $3,082,280 $2,943,045
---------- ----------
$3,247,556 $3,176,745
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $1,103,829 $1,016,153
Interest income 5,814 5,053
Gain on sale of oil and gas
properties - 1,226
---------- ----------
$1,109,643 $1,022,432
COSTS AND EXPENSES:
Lease operating $ 190,302 $ 175,230
Production tax 59,608 61,204
Depreciation, depletion, and
amortization of oil and gas
properties 53,926 66,471
General and administrative
(Note 2) 99,312 99,286
---------- ----------
$ 403,148 $ 402,191
---------- ----------
NET INCOME $ 706,495 $ 620,241
========== ==========
GENERAL PARTNER - NET INCOME $ 74,921 $ 33,418
========== ==========
LIMITED PARTNERS - NET INCOME $ 631,574 $ 586,823
========== ==========
NET INCOME per unit $ 1.75 $ 1.62
========== ==========
UNITS OUTSTANDING 361,719 361,719
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $2,433,197 $1,865,671
Interest income 12,960 9,374
Gain on sale of oil and gas
properties - 1,226
---------- ----------
$2,446,157 $1,876,271
COSTS AND EXPENSES:
Lease operating $ 340,582 $ 375,149
Production tax 136,606 100,995
Depreciation, depletion, and
amortization of oil and gas
properties 101,579 136,623
General and administrative
(Note 2) 216,031 228,560
---------- ----------
$ 794,798 $ 841,327
---------- ----------
NET INCOME $1,651,359 $1,034,944
========== ==========
GENERAL PARTNER - NET INCOME $ 172,982 $ 56,743
========== ==========
LIMITED PARTNERS - NET INCOME $1,478,377 $ 978,201
========== ==========
NET INCOME per unit $ 4.09 $ 2.70
========== ==========
UNITS OUTSTANDING 361,719 361,719
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,651,359 $1,034,944
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 101,579 136,623
Gain on sale of oil and gas
properties - ( 1,226)
(Increase) decrease in accounts
receivable - oil and gas sales 184,181 ( 187,767)
Decrease in accounts payable ( 68,424) ( 23,810)
---------- ----------
Net cash provided by operating
activities $1,868,695 $ 958,764
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 348,135) ($ 52,046)
Proceeds from sale of oil and
gas properties - 1,373
---------- ----------
Net cash used by investing activities ($ 348,135) ($ 50,673)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,512,124) ($ 766,848)
---------- ----------
Net cash used by financing activities ($1,512,124) ($ 766,848)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 8,436 $ 141,243
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 714,162 372,838
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 722,598 $ 514,081
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2001 2000
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 390,216 $ 412,356
Accounts receivable:
Oil and gas sales 264,576 350,577
---------- ----------
Total current assets $ 654,792 $ 762,933
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 879,845 878,906
DEFERRED CHARGE 130,095 130,095
---------- ----------
$1,664,732 $1,771,934
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 23,504 $ 21,688
Gas imbalance payable 15,380 15,380
---------- ----------
Total current liabilities $ 38,884 $ 37,068
ACCRUED LIABILITY $ 43,301 $ 54,138
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 117,388) ($ 105,478)
Limited Partners, issued and
outstanding, 154,621 units 1,699,935 1,786,206
---------- ----------
Total Partners' capital $1,582,547 $1,680,728
---------- ----------
$1,664,732 $1,771,934
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
-------- --------
REVENUES:
Oil and gas sales $519,745 $457,198
Interest income 3,478 2,488
Gain on sale of oil and
gas properties 739 5,060
-------- --------
$523,962 $464,746
COSTS AND EXPENSES:
Lease operating $ 65,747 $ 74,378
Production tax 32,767 28,901
Depreciation, depletion, and
amortization of oil and gas
properties 26,975 35,116
General and administrative
(Note 2) 43,363 43,393
-------- --------
$168,852 $181,788
-------- --------
NET INCOME $355,110 $282,958
======== ========
GENERAL PARTNER - NET INCOME $ 37,591 $ 31,208
======== ========
LIMITED PARTNERS - NET INCOME $317,519 $251,750
======== ========
NET INCOME per unit $ 2.05 $ 1.63
======== ========
UNITS OUTSTANDING 154,621 154,621
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- --------
REVENUES:
Oil and gas sales $1,117,021 $861,415
Interest income 7,753 4,870
Gain on sale of oil and
gas properties 739 5,060
---------- --------
$1,125,513 $871,345
COSTS AND EXPENSES:
Lease operating $ 140,489 $159,409
Production tax 74,244 50,828
Depreciation, depletion, and
amortization of oil and gas
properties 51,337 73,184
General and administrative
(Note 2) 102,139 98,674
---------- --------
$ 368,209 $382,095
---------- --------
NET INCOME $ 757,304 $489,250
========== ========
GENERAL PARTNER - NET INCOME $ 79,575 $ 55,025
========== ========
LIMITED PARTNERS - NET INCOME $ 677,729 $434,225
========== ========
NET INCOME per unit $ 4.38 $ 2.81
========== ========
UNITS OUTSTANDING 154,621 154,621
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $757,304 $489,250
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 51,337 73,184
Gain on sale of oil and gas
properties ( 739) ( 5,060)
(Increase) decrease in accounts
receivable - oil and gas sales 86,001 ( 71,173)
Increase (decrease) in accounts
payable 1,816 ( 10,596)
Decrease in accrued liability ( 10,837) -
-------- --------
Net cash provided by operating
activities $884,882 $475,605
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 52,276) ($ 22,335)
Proceeds from sale of oil and
gas properties 739 5,268
-------- --------
Net cash used by investing activities ($ 51,537) ($ 17,067)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($855,485) ($422,418)
-------- --------
Net cash used by financing activities ($855,485) ($422,418)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 22,140) $ 36,120
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 412,356 204,820
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $390,216 $240,940
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2001 2000
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 924,018 $1,432,990
Accounts receivable:
Oil and gas sales 510,077 703,180
---------- ----------
Total current assets $1,434,095 $2,136,170
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,675,555 1,737,343
DEFERRED CHARGE 397,689 397,689
---------- ----------
$3,507,339 $4,271,202
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 61,444 $ 54,672
Gas imbalance payable 74,121 74,121
---------- ----------
Total current liabilities $ 135,565 $ 128,793
ACCRUED LIABILITY $ 141,521 $ 154,927
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 243,866) ($ 180,437)
Limited Partners, issued and
outstanding, 314,878 units 3,474,119 4,167,919
---------- ----------
Total Partners' capital $3,230,253 $3,987,482
---------- ----------
$3,507,339 $4,271,202
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- --------
REVENUES:
Oil and gas sales $1,115,535 $866,468
Interest income 8,709 5,978
Gain on sale of oil and gas
properties 8,162 9,450
---------- --------
$1,132,406 $881,896
COSTS AND EXPENSES:
Lease operating $ 219,148 $189,316
Production tax 72,072 64,382
Depreciation, depletion, and
amortization of oil and gas
properties 44,982 63,920
General and administrative
(Note 2) 86,744 86,658
---------- --------
$ 422,946 $404,276
---------- --------
NET INCOME $ 709,460 $477,620
========== ========
GENERAL PARTNER - NET INCOME $ 74,123 $ 52,917
========== ========
LIMITED PARTNERS - NET INCOME $ 635,337 $424,703
========== ========
NET INCOME per unit $ 2.02 $ 1.35
========== ========
UNITS OUTSTANDING 314,878 314,878
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $2,441,111 $1,698,551
Interest income 22,836 12,058
Gain on sale of oil and gas
properties 8,162 6,976
---------- ----------
$2,472,109 $1,717,585
COSTS AND EXPENSES:
Lease operating $ 381,100 $ 367,219
Production tax 166,149 114,708
Depreciation, depletion, and
amortization of oil and gas
properties 93,888 136,668
General and administrative
(Note 2) 190,565 199,207
---------- ----------
$ 831,702 $ 817,802
---------- ----------
NET INCOME $1,640,407 $ 899,783
========== ==========
GENERAL PARTNER - NET INCOME $ 170,207 $ 101,073
========== ==========
LIMITED PARTNERS - NET INCOME $1,470,200 $ 798,710
========== ==========
NET INCOME per unit $ 4.67 $ 2.54
========== ==========
UNITS OUTSTANDING 314,878 314,878
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,640,407 $899,783
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 93,888 136,668
Gain on sale of oil and gas
properties ( 8,162) ( 6,976)
(Increase) decrease in accounts
receivable - oil and gas sales 193,103 ( 173,801)
Increase (decrease) in accounts
payable 6,772 ( 15,188)
Decrease in accrued liability ( 13,406) -
---------- --------
Net cash provided by operating
activities $1,912,602 $840,486
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 32,100) ($ 34)
Proceeds from sale of oil and
gas properties 8,162 11,598
---------- --------
Net cash provided (used) by investing
activities ($ 23,938) $ 11,564
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,397,636) ($906,033)
---------- --------
Net cash used by financing activities ($2,397,636) ($906,033)
---------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 508,972) ($ 53,983)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,432,990 547,528
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 924,018 $493,545
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2001 2000
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 586,114 $ 511,025
Accounts receivable:
Oil and gas sales 393,475 541,215
---------- ----------
Total current assets $ 979,589 $1,052,240
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,566,770 1,652,204
DEFERRED CHARGE 204,138 204,138
---------- ----------
$2,750,497 $2,908,582
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 35,387 $ 29,489
Gas imbalance payable 22,545 22,545
---------- ----------
Total current liabilities $ 57,932 $ 52,034
ACCRUED LIABILITY $ 31,949 $ 35,904
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 148,916) ($ 133,047)
Limited Partners, issued and
outstanding, 228,821 units 2,809,532 2,953,691
---------- ----------
Total Partners' capital $2,660,616 $2,820,644
---------- ----------
$2,750,497 $2,908,582
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- --------
REVENUES:
Oil and gas sales $757,605 $661,135
Interest income 5,792 4,675
Gain (loss) on sale of oil and
gas properties ( 924) 3,499
-------- --------
$762,473 $669,309
COSTS AND EXPENSES:
Lease operating $112,848 $115,888
Production tax 54,018 48,014
Depreciation, depletion, and
amortization of oil and gas
properties 50,944 72,511
General and administrative
(Note 2) 63,452 63,419
-------- --------
$281,262 $299,832
-------- --------
NET INCOME $481,211 $369,477
======== ========
GENERAL PARTNER - NET INCOME $ 52,127 $ 43,006
======== ========
LIMITED PARTNERS - NET INCOME $429,084 $326,471
======== ========
NET INCOME per unit $ 1.88 $ 1.43
======== ========
UNITS OUTSTANDING 228,821 228,821
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ----------
REVENUES:
Oil and gas sales $1,690,610 $1,170,440
Interest income 11,830 9,573
Gain (loss) on sale of oil and
gas properties ( 999) 5,476
---------- ----------
$1,701,441 $1,185,489
COSTS AND EXPENSES:
Lease operating $ 216,890 $ 212,096
Production tax 125,566 71,099
Depreciation, depletion, and
amortization of oil and gas
properties 96,703 153,773
General and administrative
(Note 2) 142,992 145,219
---------- ----------
$ 582,151 $ 582,187
---------- ----------
NET INCOME $1,119,290 $ 603,302
========== ==========
GENERAL PARTNER - NET INCOME $ 119,449 $ 73,212
========== ==========
LIMITED PARTNERS - NET INCOME $ 999,841 $ 530,090
========== ==========
NET INCOME per unit $ 4.37 $ 2.32
========== ==========
UNITS OUTSTANDING 228,821 228,821
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,119,290 $603,302
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 96,703 153,773
(Gain) loss on sale of oil and gas
properties 999 ( 5,476)
(Increase) decrease in accounts
receivable - oil and gas sales 147,740 ( 131,895)
Increase (decrease) in accounts
payable 5,898 ( 14,736)
Decrease in gas imbalance payable - ( 113,594)
Decrease in accrued liability ( 3,955) -
---------- --------
Net cash provided by operating
activities $1,366,675 $491,374
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 12,268) ($ 5,661)
Proceeds from sale of oil and
gas properties - 9,727
---------- --------
Net cash provided (used) by investing
activities ($ 12,268) $ 4,066
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,279,318) ($509,715)
---------- --------
Net cash used by financing activities ($1,279,318) ($509,715)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 75,089 ($ 14,275)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 511,025 450,833
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 586,114 $436,558
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2001 2000
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 588,164 $ 441,154
Accounts receivable:
Oil and gas sales 358,820 440,181
---------- ----------
Total current assets $ 946,984 $ 881,335
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,543,481 1,597,803
DEFERRED CHARGE 32,237 34,659
---------- ----------
$2,522,702 $2,513,797
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 25,695 $ 21,902
Gas imbalance payable 7,439 7,439
---------- ----------
Total current liabilities $ 33,134 $ 29,341
ACCRUED LIABILITY $ 12,341 $ 12,341
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 110,954) ($ 101,577)
Limited Partners, issued and
outstanding, 171,400 units 2,588,181 2,573,692
---------- ----------
Total Partners' capital $2,477,227 $2,472,115
---------- ----------
$2,522,702 $2,513,797
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-22-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
-------- --------
REVENUES:
Oil and gas sales $778,828 $568,065
Interest income 4,874 3,528
Gain (loss) on sale of oil and
gas properties ( 978) 9,157
-------- --------
$782,724 $580,750
COSTS AND EXPENSES:
Lease operating $ 72,829 $ 55,493
Production tax 51,894 42,658
Depreciation, depletion, and
amortization of oil and gas
properties 61,846 55,070
General and administrative
(Note 2) 47,100 47,110
-------- --------
$233,669 $200,331
-------- --------
NET INCOME $549,055 $380,419
======== ========
GENERAL PARTNER - NET INCOME $ 59,984 $ 42,646
======== ========
LIMITED PARTNERS - NET INCOME $489,071 $337,773
======== ========
NET INCOME per unit $ 2.86 $ 1.97
======== ========
UNITS OUTSTANDING 171,400 171,400
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $1,599,714 $1,075,723
Interest income 9,949 6,682
Gain (loss) on sale of oil and
gas properties ( 1,162) 17,712
---------- ----------
$1,608,501 $1,100,117
COSTS AND EXPENSES:
Lease operating $ 155,604 $ 142,897
Production tax 106,455 69,860
Depreciation, depletion, and
amortization of oil and gas
properties 113,913 123,820
General and administrative
(Note 2) 110,589 108,391
---------- ----------
$ 486,561 $ 444,968
---------- ----------
NET INCOME $1,121,940 $ 655,149
========== ==========
GENERAL PARTNER - NET INCOME $ 121,451 $ 75,991
========== ==========
LIMITED PARTNERS - NET INCOME $1,000,489 $ 579,158
========== ==========
NET INCOME per unit $ 5.84 $ 3.38
========== ==========
UNITS OUTSTANDING 171,400 171,400
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-24-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,121,940 $655,149
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 113,913 123,820
(Gain) loss on sale of oil and gas
properties 1,162 ( 17,712)
(Increase) decrease in accounts
receivable - oil and gas sales 81,361 ( 116,530)
Decrease in deferred charge 2,422 -
Increase (decrease) in accounts
payable 3,793 ( 4,065)
---------- --------
Net cash provided by operating
activities $1,324,591 $640,662
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 60,753) ($ 13,840)
Proceeds from sale of oil and
gas properties - 21,098
---------- --------
Net cash provided (used) by
investing activities ($ 60,753) $ 7,258
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,116,828) ($621,145)
---------- --------
Net cash used by financing activities ($1,116,828) ($621,145)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 147,010 $ 26,775
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 441,154 280,098
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 588,164 $306,873
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2001 2000
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,246,704 $ 934,304
Accounts receivable:
Oil and gas sales 763,797 935,211
---------- ----------
Total current assets $2,010,501 $1,869,515
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,327,682 3,439,338
DEFERRED CHARGE 71,612 76,673
---------- ----------
$5,409,795 $5,385,526
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 55,147 $ 47,021
Gas imbalance payable 16,142 16,142
---------- ----------
Total current liabilities $ 71,289 $ 63,163
ACCRUED LIABILITY $ 31,272 $ 31,272
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 232,652) ($ 212,913)
Limited Partners, issued and
outstanding, 372,189 units 5,539,886 5,504,004
---------- ----------
Total Partners' capital $5,307,234 $5,291,091
---------- ----------
$5,409,795 $5,385,526
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-26-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
----------- ----------
REVENUES:
Oil and gas sales $1,659,073 $1,242,924
Interest income 10,539 7,808
Gain (loss) on sale of oil and
gas properties ( 2,350) 19,197
---------- ----------
$1,667,262 $1,269,929
COSTS AND EXPENSES:
Lease operating $ 156,314 $ 119,373
Production tax 111,179 92,730
Depreciation, depletion, and
amortization of oil and gas
properties 131,785 118,013
General and administrative
(Note 2) 101,425 101,300
---------- ----------
$ 500,703 $ 431,416
---------- ----------
NET INCOME $1,166,559 $ 838,513
========== ==========
GENERAL PARTNER - NET INCOME $ 127,463 $ 93,691
========== ==========
LIMITED PARTNERS - NET INCOME $1,039,096 $ 744,822
========== ==========
NET INCOME per unit $ 2.79 $ 2.00
========== ==========
UNITS OUTSTANDING 372,189 372,189
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-27-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ----------
REVENUES:
Oil and gas sales $3,403,123 $2,283,363
Interest income 21,417 15,135
Gain (loss) on sale of oil and
gas properties ( 2,735) 37,086
---------- ----------
$3,421,805 $2,335,584
COSTS AND EXPENSES:
Lease operating $ 333,117 $ 306,543
Production tax 227,356 150,447
Depreciation, depletion, and
amortization of oil and gas
properties 242,833 267,303
General and administrative
(Note 2) 221,171 234,335
---------- ----------
$1,024,477 $ 958,628
---------- ----------
NET INCOME $2,397,328 $1,376,956
========== ==========
GENERAL PARTNER - NET INCOME $ 259,446 $ 160,239
========== ==========
LIMITED PARTNERS - NET INCOME $2,137,882 $1,216,717
========== ==========
NET INCOME per unit $ 5.74 $ 3.27
========== ==========
UNITS OUTSTANDING 372,189 372,189
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-28-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,397,328 $1,376,956
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 242,833 267,303
(Gain) loss on sale of oil and gas
properties 2,735 ( 37,086)
(Increase) decrease in accounts
receivable - oil and gas sales 171,414 ( 250,301)
Decrease in deferred charge 5,061 -
Increase (decrease) in accounts
payable 8,126 ( 8,755)
---------- ----------
Net cash provided by operating
activities $2,827,497 $1,348,117
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 133,912) ($ 28,943)
Proceeds from sale of oil and
gas properties - 44,364
---------- ----------
Net cash provided (used) by
investing activities ($ 133,912) $ 15,421
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,381,185) ($1,342,460)
---------- ----------
Net cash used by financing
activities ($2,381,185) ($1,342,460)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 312,400 $ 21,078
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 934,304 633,816
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,246,704 $ 654,894
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-29-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2001 2000
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 295,434 $ 229,651
Accounts receivable:
Oil and gas sales 181,711 223,004
---------- ----------
Total current assets $ 477,145 $ 452,655
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 784,166 807,844
DEFERRED CHARGE 16,599 17,788
---------- ----------
$1,277,910 $1,278,287
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 13,379 $ 11,405
Gas imbalance payable 3,993 3,993
---------- ----------
Total current liabilities $ 17,372 $ 15,398
ACCRUED LIABILITY $ 6,007 $ 6,007
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 59,352) ($ 54,632)
Limited Partners, issued and
outstanding, 91,711 units 1,313,883 1,311,514
---------- ----------
Total Partners' capital $1,254,531 $1,256,882
---------- ----------
$1,277,910 $1,278,287
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-30-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- --------
REVENUES:
Oil and gas sales $395,727 $311,239
Interest income 2,365 1,805
Gain (loss) on sale of oil and
gas properties ( 677) 4,460
-------- --------
$397,415 $317,504
COSTS AND EXPENSES:
Lease operating $ 37,945 $ 29,099
Production tax 26,737 23,036
Depreciation, depletion, and
amortization of oil and gas
properties 30,812 27,818
General and administrative
(Note 2) 25,531 25,601
-------- --------
$121,025 $105,554
-------- --------
NET INCOME $276,390 $211,950
======== ========
GENERAL PARTNER - NET INCOME $ 30,175 $ 11,620
======== ========
LIMITED PARTNERS - NET INCOME $246,215 $200,330
======== ========
NET INCOME per unit $ 2.68 $ 2.18
======== ========
UNITS OUTSTANDING 91,711 91,711
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-31-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- --------
REVENUES:
Oil and gas sales $811,088 $533,848
Interest income 4,905 3,481
Gain (loss) on sale of oil and
gas properties ( 766) 8,598
-------- --------
$815,227 $545,927
COSTS AND EXPENSES:
Lease operating $ 80,470 $ 74,406
Production tax 54,571 36,050
Depreciation, depletion, and
amortization of oil and gas
properties 56,842 62,414
General and administrative
(Note 2) 66,684 58,360
-------- --------
$258,567 $231,230
-------- --------
NET INCOME $556,660 $314,697
======== ========
GENERAL PARTNER - NET INCOME $ 60,291 $ 18,057
======== ========
LIMITED PARTNERS - NET INCOME $496,369 $296,640
======== ========
NET INCOME per unit $ 5.41 $ 3.23
======== ========
UNITS OUTSTANDING 91,711 91,711
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-32-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(Unaudited)
2001 2000
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $556,660 $314,697
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 56,842 62,414
(Gain) loss on sale of oil and gas
properties 766 ( 8,598)
(Increase) decrease in accounts
receivable - oil and gas sales 41,293 ( 59,510)
Decrease in deferred charge 1,189 -
Increase (decrease) in accounts
payable 1,974 ( 2,174)
-------- --------
Net cash provided by operating
activities $658,724 $306,829
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 33,930) ($ 6,695)
Proceeds from sale of oil and
gas properties - 10,368
-------- --------
Net cash provided (used) by investing
activities ($ 33,930) $ 3,673
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($559,011) ($294,598)
-------- --------
Net cash used by financing activities ($559,011) ($294,598)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 65,783 $ 15,904
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 229,651 147,018
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $295,434 $162,922
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-33-
GEODYNE ENERGY INCOME PROGRAM II LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
JUNE 30, 2001
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of June 30, 2001, combined statements of
operations for the three and six months ended June 30, 2001 and 2000, and
combined statements of cash flows for the six months ended June 30, 2001
and 2000 have been prepared by Geodyne Resources, Inc., the General
Partner of the limited partnerships, without audit. Each limited
partnership is a general partner in the related Geodyne Production
Partnership in which Geodyne Resources, Inc. serves as the managing
partner. Unless the context indicates otherwise, all references to a
"Partnership" or the "Partnerships" are references to the limited
partnership and its related production partnership, collectively, and all
references to the "General Partner" are references to the general partner
of the limited partnerships and the managing partner of the production
partnerships, collectively. In the opinion of management the financial
statements referred to above include all necessary adjustments, consisting
of normal recurring adjustments, to present fairly the combined financial
position at June 30, 2001, the combined results of operations for the
three and six months ended June 30, 2001 and 2000, and the combined cash
flows for the six months ended June 30, 2001 and 2000.
Information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The accompanying interim
financial statements should be read in conjunction with the Partnerships'
Annual Report on Form 10-K filed 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.
The Limited Partners' net income or loss per unit is based upon each $100
initial capital contribution.
-34-
OIL AND GAS PROPERTIES
----------------------
The Partnerships follow the successful efforts method of accounting for
their oil and gas properties. Under the successful efforts method, the
Partnerships capitalize all property acquisition costs and development
costs incurred in connection with the further development of oil and gas
reserves. Property acquisition costs include costs incurred by the
Partnerships or the General Partner to acquire producing properties,
including related title insurance or examination costs, commissions,
engineering, legal and accounting fees, and similar costs directly related
to the acquisitions, plus an allocated portion, of the General Partner's
property screening costs. The acquisition cost to the Partnerships of
properties acquired by the General Partner is adjusted to reflect the net
cash results of operations, including interest incurred to finance the
acquisition, for the period of time the properties are held by the General
Partner prior to their transfer to the Partnerships. Leasehold impairment
is recognized based upon an individual property assessment and exploratory
experience. Upon discovery of commercial reserves, leasehold costs are
transferred to producing properties.
Depletion of the costs of producing oil and gas properties, amortization
of related intangible drilling and development costs, and depreciation of
tangible lease and well equipment are computed on the unit-of-production
method. The Partnerships' depletion, depreciation, and amortization
includes estimated dismantlement and abandonment costs, net of estimated
salvage value.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss reflected in income. When less than complete units of depreciable
property are retired or sold, the proceeds are credited to oil and gas
properties.
-35-
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' Partnership Agreements provide for reimbursement to the
General Partner for all direct general and administrative expenses and for
the general and administrative overhead applicable to the Partnerships
based on an allocation of actual costs incurred. During the three months
ended June 30, 2001, the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
II-A $5,055 $127,443
II-B 4,122 95,190
II-C 2,674 40,689
II-D 3,881 82,863
II-E 3,236 60,216
II-F 1,995 45,105
II-G 3,481 97,944
II-H 1,396 24,135
During the six months ended June 30, 2001, the following payments were
made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
II-A $28,694 $254,886
II-B 25,651 190,380
II-C 20,761 81,378
II-D 24,839 165,726
II-E 22,560 120,432
II-F 20,379 90,210
II-G 25,283 195,888
II-H 18,414 48,270
Affiliates of the Partnerships operate certain of the Partnerships'
properties and their policy is to bill the Partnerships for all customary
charges and cost reimbursements associated with their activities.
-36-
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 Partnerships.
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.
GENERAL
- -------
The Partnerships are engaged in the business of acquiring and operating
producing oil and gas properties located in the continental United States.
In general, a Partnership acquired producing properties and did not engage
in development drilling or enhanced recovery projects, except as an
incidental part of the management of the producing properties acquired.
Therefore, the economic life of each Partnership, and its related
Production Partnership, is limited to the period of time required to fully
produce its acquired oil and gas reserves. The net proceeds from the oil
and gas operations are distributed to the Limited Partners and the General
Partner in accordance with the terms of the Partnerships' partnership
agreements.
-37-
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
II-A July 22, 1987 $48,428,300
II-B October 14, 1987 36,171,900
II-C January 14, 1988 15,462,100
II-D May 10, 1988 31,487,800
II-E September 27, 1988 22,882,100
II-F January 5, 1989 17,140,000
II-G April 10, 1989 37,218,900
II-H May 17, 1989 9,171,100
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
Net proceeds from the operations less necessary operating capital are
distributed to the Limited Partners on a quarterly basis. Revenues and net
proceeds of a Partnership are largely dependent upon the volumes of oil
and gas sold and the prices received for such oil and gas. While the
General Partner cannot predict future pricing trends, it believes the
working capital available as of June 30, 2001 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
Occasional expenditures for new wells or well recompletion or workovers,
however, may reduce or eliminate cash available for a particular quarterly
distribution. During the six months ended June 30, 2001, capital
expenditures for the II-A, II-B, and II-C Partnerships totaled $129,049,
$348,135, and $52,276, respectively. These expenditures were primarily due
to the drilling of three development wells located in Kern County,
California. The II-A, II-B, and II-C Partnerships own working interests of
3.9%, 16.2%, and 2.4%, respectively, in these wells.
-38-
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 Partnerships' revenues are the prices received for
the sale of oil and gas and the volumes of oil and gas produced. The
Partnerships' 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
Partnerships' 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.
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 Partnerships' 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.
II-A PARTNERSHIP
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 $1,452,896 $1,405,952
Oil and gas production expenses $ 389,130 $ 317,866
Barrels produced 18,573 19,674
Mcf produced 194,696 254,428
Average price/Bbl $ 24.64 $ 28.88
Average price/Mcf $ 5.11 $ 3.29
As shown in the table above, total oil and gas sales increased $46,944
(3.3%) for the three months ended June 30, 2001 as compared to the three
months ended June 30, 2000. Of this increase, approximately $354,000 was
related to an increase in the average price of gas sold. This increase
-39-
was partially offset by decreases of approximately $32,000 and $197,000,
respectively, related to decreases in volumes of oil and gas sold and
approximately $78,000 related to a decrease in the average price of oil
sold. Volumes of oil and gas sold decreased 1,101 barrels and 59,732 Mcf,
respectively, 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) a positive prior period gas balancing adjustment on
one significant well during the three months ended June 30, 2000 and (ii)
normal declines in production. Average oil prices decreased to $24.64 per
barrel for the three months ended June 30, 2001 from $28.88 per barrel for
the three months ended June 30, 2000. Average gas prices increased to
$5.11 per Mcf for the three months ended June 30, 2001 from $3.29 per Mcf
for the three months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $71,264 (22.4%) for the three months ended
June 30, 2001 as compared to the three months ended June 30, 2000. This
increase was primarily due to (i) workover expenses incurred on several
wells during the three months ended June 30, 2001 and (ii) a positive
prior period lease operating expense adjustment made by the operator on
one significant well during the three months ended June 30, 2001. These
increases were partially offset by a negative prior period lease operating
expense adjustment made by the operator on another significant well during
the three months ended June 30, 2001. As a percentage of oil and gas
sales, these expenses increased to 26.8% for the three months ended June
30, 2001 from 22.6% for the three months ended June 30, 2000. This
percentage increase was primarily due to the dollar increase in oil and
gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
decreased $40,480 (32.6%) for the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000. This decrease was
primarily due to the decreases in volumes of oil and gas sold and upward
revisions in the estimates of remaining gas reserves at December 31, 2000.
As a percentage of oil and gas sales, this expense decreased to 5.8% for
the three months ended June 30, 2001 from 8.8% for the three months ended
June 30, 2000. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization and the increase in
the average price of gas sold.
General and administrative expenses remained relatively constant 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 9.1% for the three months ended June 30, 2001 from 9.4% for
the three months ended June 30, 2000.
-40-
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 $3,139,007 $2,645,688
Oil and gas production expenses $ 743,756 $ 695,728
Barrels produced 37,300 41,426
Mcf produced 375,381 528,678
Average price/Bbl $ 25.71 $ 27.10
Average price/Mcf $ 5.81 $ 2.88
As shown in the table above, total oil and gas sales increased $493,319
(18.6%) for the six months ended June 30, 2001 as compared to the six
months ended June 30, 2000. Of this increase, approximately $1,099,000 was
related to an increase in the average price of gas sold. This increase was
partially offset by decreases of approximately $112,000 and $442,000,
respectively, related to decreases in volumes of oil and gas sold and
approximately $52,000 related to a decrease in the average price of oil
sold. Volumes of oil and gas sold decreased 4,126 barrels and 153,297 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 (i) a positive prior period volume adjustment made by the
purchaser on one significant well during the six months ended June 30,
2000 and (ii) normal declines in production. The decrease in volumes of
gas sold was primarily due to (i) a negative prior period gas balancing
adjustment on one significant well during the six months ended June 30,
2001, (ii) a positive prior period gas balancing adjustment on another
significant well during the six months ended June 30, 2000, and (iii)
normal declines in production. Average oil prices decreased to $25.71 per
barrel for the six months ended June 30, 2001 from $27.10 per barrel for
the six months ended June 30, 2000. Average gas prices increased to $5.81
per Mcf for the six months ended June 30, 2001 from $2.88 per Mcf for the
six months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $48,028 (6.9%) 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) workover expenses incurred on several wells
during the six months ended June 30, 2001, (ii) an increase in production
taxes associated with the increase in oil and gas sales, and (iii) a
positive prior period lease operating expense adjustment made by the
operator on one significant well during the six months ended June 30,
2001. These increases were partially offset by (i) surface repair and
-41-
maintenance expenses incurred on one significant well during the six
months ended June 30, 2000, (ii) a negative prior period lease operating
expense adjustment made by the operator on another significant well during
the six months ended June 30, 2001, and (iii) a decrease in lease
operating expenses associated with the decreases in volumes of oil and gas
sold. As a percentage of oil and gas sales, these expenses decreased to
23.7% for the six months ended June 30, 2001 from 26.3% for the six months
ended June 30, 2000.
Depreciation, depletion, and amortization of oil and gas properties
decreased $95,301 (36.8%) for the six months ended June 30, 2001 as
compared to the six months ended June 30, 2000. This decrease was
primarily due to the decreases in volumes of oil and gas sold and upward
revisions in the estimates of remaining gas reserves at December 31, 2000.
As a percentage of oil and gas sales, this expense decreased to 5.2% for
the six months ended June 30, 2001 from 9.8% for the six months ended June
30, 2000. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization and the increase in
the average price of gas sold.
General and administrative expenses decreased $21,710 (7.1%) 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
9.0% for the six months ended June 30, 2001 from 11.5% for the six months
ended June 30, 2000. This percentage decrease was primarily due to the
increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2001 totaling $52,720,357 or 108.86% of the Limited Partners' capital
contributions.
II-B PARTNERSHIP
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 $1,103,829 $1,016,153
Oil and gas production expenses $ 249,910 $ 236,434
Barrels produced 15,040 14,051
Mcf produced 168,603 185,172
Average price/Bbl $ 25.35 $ 29.02
Average price/Mcf $ 4.29 $ 3.29
As shown in the table above, total oil and gas sales increased $87,676
(8.6%) for the three months ended June 30, 2001 as compared to the three
months ended June 30, 2000.
-42-
Of this increase, approximately $168,000 was related to an increase in the
average price of gas sold and approximately $29,000 was related to an
increase in volumes of oil sold. These increases were partially offset by
decreases of approximately $55,000 related to a decrease in the average
price of oil sold and approximately $54,000 related to a decrease in
volumes of gas sold. Volumes of oil sold increased 989 barrels, while
volumes of gas sold decreased 16,569 Mcf for the three months ended June
30, 2001 as compared to the three months ended June 30, 2000. The increase
in volumes of oil sold was primarily due to (i) the successful completion
of three new wells during early 2001 and (ii) a positive prior period
volume adjustment made by the operator on another significant well during
the three months ended June 30, 2001. These increases were partially
offset by the sale of several wells during mid 2000. The decrease in
volumes of gas sold was primarily due to normal declines in production.
This decrease was partially offset by a positive prior period volume
adjustment made by the operator on one significant well during the three
months ended June 30, 2001. Average oil prices decreased to $25.35 per
barrel for the three months ended June 30, 2001 from $29.02 per barrel for
the three months ended June 30, 2000. Average gas prices increased to
$4.29 per Mcf for the three months ended June 30, 2001 from $3.29 per Mcf
for the three months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $13,476 (5.7%) for the three months ended June
30, 2001 as compared to the three months ended June 30, 2000. This
increase was primarily due to positive prior period lease operating
expense adjustments made by the operators on two significant wells during
the three months ended June 30, 2001. This increase was partially offset
by the sale of several wells during mid 2000. As a percentage of oil and
gas sales, these expenses decreased to 22.6% for the three months ended
June 30, 2001 from 23.3% for the three months ended June 30, 2000.
Depreciation, depletion, and amortization of oil and gas properties
decreased $12,545 (18.9%) for the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000. This decrease was
primarily due to upward revisions in the estimates of remaining gas
reserves at December 31, 2000. As a percentage of oil and gas sales, this
expense decreased to 4.9% for the three months ended June 30, 2001 from
6.5% for the three months ended June 30, 2000. This percentage decrease
was primarily due to the dollar decrease in depreciation, depletion, and
amortization and the increase in the average price of gas sold.
-43-
General and administrative expenses remained relatively constant 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 9.0% for the three months ended June 30, 2001 from 9.8% 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 $2,433,197 $1,865,671
Oil and gas production expenses $ 477,188 $ 476,144
Barrels produced 29,131 28,942
Mcf produced 312,790 380,227
Average price/Bbl $ 25.77 $ 27.17
Average price/Mcf $ 5.38 $ 2.84
As shown in the table above, total oil and gas sales increased $567,526
(30.4%) for the six months ended June 30, 2001 as compared to the six
months ended June 30, 2000. Of this increase, approximately $795,000 was
related to an increase in the average price of gas sold. This increase was
partially offset by a decrease of approximately $191,000 related to a
decrease in volumes of gas sold. Volumes of oil sold increased 189
barrels, while volumes of gas sold decreased 67,437 Mcf for the six months
ended June 30, 2001 as compared to the six months ended June 30, 2000. The
increase in volumes of oil sold was primarily due to (i) the successful
completion of three new wells during early 2001 and (ii) a positive prior
period volume adjustment made by the operator on another significant well
during the six months ended June 30, 2001. These increases were partially
offset by the sale of several wells during mid 2000. The decrease in
volumes of gas sold was primarily due to (i) the shutting-in of one
significant well during the six months ended June 30, 2001 due to low well
pressure, (ii) the shutting-in of two other significant wells during the
six months ended June 30, 2001 in order to perform repairs and
maintenance, and (iii) normal declines in production. These decreases were
partially offset by a positive prior period volume adjustment made by the
operator on one significant well during the six months ended June 30,
2001. Average oil prices decreased to $25.77 per barrel for the six months
ended June 30, 2001 from $27.17 per barrel for the six months ended June
30, 2000. Average gas prices increased to $5.38 per Mcf for the six months
ended June 30, 2001 from $2.84 per Mcf for the six months ended June 30,
2000.
-44-
Oil and gas production expenses (including lease operating expenses and
production taxes) remained relatively constant for the six months ended
June 30, 2001 as compared to the six months ended June 30, 2000. The
slight increase in expenses was primarily due to (i) an increase in
production taxes associated with the increase in oil and gas sales and
(ii) positive prior period lease operating expense adjustments made by the
operators on two significant wells during the six months ended June 30,
2001. These increases were substantially offset by (i) a decrease in lease
operating expenses associated with the decrease in volumes of gas sold,
(ii) a decrease in lease operating environmental expenses on a waterflood
unit during the six months ended June 30, 2001 as compared to the six
months ended June 30, 2000, and (iii) the sale of several wells during mid
2000. As a percentage of oil and gas sales, these expenses decreased to
19.6% for the six months ended June 30, 2001 from 25.5% 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
decreased $35,044 (25.7%) for the six months ended June 30, 2001 as
compared to the six months ended June 30, 2000. This decrease was
primarily due to upward revisions in the estimates of remaining gas
reserves at December 31, 2000 and the decrease in volumes of gas sold. As
a percentage of oil and gas sales, this expense decreased to 4.2% for the
six months ended June 30, 2001 from 7.3% for the six months ended June 30,
2000. This percentage decrease was primarily due to the increase in the
average price of gas sold and the dollar decrease in depreciation,
depletion, and amortization.
General and administrative expenses decreased $12,529 (5.5%) 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
8.9% for the six months ended June 30, 2001 from 12.3% for the six months
ended June 30, 2000. This percentage decrease was primarily due to the
increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2001 totaling $38,335,916 or 105.98% of the Limited Partners' capital
contributions.
-45-
II-C PARTNERSHIP
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 $519,745 $457,198
Oil and gas production expenses $ 98,514 $103,279
Barrels produced 3,474 4,394
Mcf produced 88,510 104,498
Average price/Bbl $ 25.63 $ 27.26
Average price/Mcf $ 4.87 $ 3.23
As shown in the table above, total oil and gas sales increased $62,547
(13.7%) for the three months ended June 30, 2001 as compared to the three
months ended June 30, 2000. Of this increase, approximately $145,000 was
related to an increase in the average price of gas sold. This increase was
partially offset by decreases of approximately $25,000 and $52,000,
respectively, related to decreases in volumes of oil and gas sold. Volumes
of oil and gas sold decreased 920 barrels and 15,988 Mcf, respectively,
for the three months ended June 30, 2001 as compared to the three months
ended June 30, 2000. The decrease in volumes of oil sold was primarily due
to (i) the sale of several wells during 2000 and (ii) normal declines in
production. The decrease in volumes of gas sold was primarily due to (i) a
positive prior period volume adjustment made by the operator on one
significant well during the three months ended June 30, 2000 and (ii)
normal declines in production. Average oil prices decreased to $25.63 per
barrel for the three months ended June 30, 2001 from $27.26 per barrel for
the three months ended June 30, 2000. Average gas prices increased to
$4.87 per Mcf for the three months ended June 30, 2001 from $3.23 per Mcf
for the three months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $4,765 (4.6%) for the three months ended June
30, 2001 as compared to the three months ended June 30, 2000. This
decrease was primarily due to (i) a decrease in repair and maintenance
expenses incurred on two significant wells during the three months ended
June 30, 2001 and (ii) a negative prior period lease operating expense
adjustment made by the operator on one significant well during the three
months ended June 30, 2001. These decreases were 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
19.0% for the three months ended June
-46-
30, 2001 from 22.6% 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
decreased $8,141 (23.2%) for the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000. This decrease was
primarily due to the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense decreased to 5.2% for the
three months ended June 30, 2001 from 7.7% for the three months ended June
30, 2000. This percentage decrease was primarily due to the increase in
the average price of gas sold.
General and administrative expenses remained relatively constant 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 8.3% for the three months ended June 30, 2001 from 9.5% for
the three months ended June 30, 2000. This percentage decrease was
primarily due to the increase in oil and gas sales.
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 $1,117,021 $861,415
Oil and gas production expenses $ 214,733 $210,237
Barrels produced 7,543 8,889
Mcf produced 162,864 219,400
Average price/Bbl $ 25.81 $ 26.72
Average price/Mcf $ 5.66 $ 2.84
As shown in the table above, total oil and gas sales increased $255,606
(29.7%) for the six months ended June 30, 2001 as compared to the six
months ended June 30, 2000. Of this increase, approximately $459,000 was
related to an increase in the average price of gas sold. This increase was
partially offset by decreases of approximately $36,000 and $161,000,
respectively, related to decreases in volumes of oil and gas sold. Volumes
of oil and gas sold decreased 1,346 barrels and 56,536 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
(i) the sale of several wells during 2000 and (ii) normal declines in
production. The decrease in volumes of gas sold was primarily due to (i) a
negative gas balancing adjustment on one significant well during the six
months ended June 30, 2001, (ii) a positive prior period
-47-
volume adjustment made by the operator on another significant well during
the six months ended June 30, 2000, and (iii) normal declines in
production. Average oil prices decreased to $25.81 per barrel for the six
months ended June 30, 2001 from $26.72 per barrel for the six months ended
June 30, 2000. Average gas prices increased to $5.66 per Mcf for the six
months ended June 30, 2001 from $2.84 per Mcf for the six months ended
June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $4,496 (2.1%) 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. This increase was partially offset by (i) a
decrease in repair and maintenance expenses incurred on two significant
wells during the six months ended June 30, 2001 as compared to the six
months ended June 30, 2000 and (ii) a decrease in lease operating expenses
associated with the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, these expenses decreased to 19.2% for the
six months ended June 30, 2001 from 24.4% 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
decreased $21,847 (29.9%) for the six months ended June 30, 2001 as
compared to the six months ended June 30, 2000. This decrease was
primarily due to the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense decreased to 4.6% for the
six months ended June 30, 2001 from 8.5% for the six months ended June 30,
2000. This percentage decrease was primarily due to the increase in the
average price of gas sold.
General and administrative expenses increased $3,465 (3.5%) 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
9.1% for the six months ended June 30, 2001 from 11.5% for the six months
ended June 30, 2000. This percentage decrease was primarily due to the
increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2001 totaling $17,567,686 or 113.62% of the Limited Partners' capital
contributions.
-48-
II-D PARTNERSHIP
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 $1,115,535 $866,468
Oil and gas production expenses $ 291,220 $253,698
Barrels produced 2,725 9,134
Mcf produced 179,225 204,327
Average price/Bbl $ 23.89 $ 25.71
Average price/Mcf $ 5.86 $ 3.09
As shown in the table above, total oil and gas sales increased $249,067
(28.7%) for the three months ended June 30, 2001 as compared to the three
months ended June 30, 2000. Of this increase, approximately $496,000 was
related to an increase in the average price of gas sold. This increase was
partially offset by decreases of approximately $165,000 and $78,000,
respectively, related to decreases in volumes of oil and gas sold. Volumes
of oil and gas sold decreased 6,409 barrels and 25,102 Mcf, respectively,
for the three months ended June 30, 2001 as compared to the three months
ended June 30, 2000. The decrease in volumes of oil sold was primarily due
to the sale of several wells during 2000. The decrease in volumes of gas
sold was primarily due to (i) the shutting-in of two significant wells
during the three months ended June 30, 2001 in order to perform repairs
and maintenance, (ii) a positive prior period volume adjustment made by
the operator on another significant well during the three months ended
June 30, 2000, and (iii) normal declines in production. These decreases
were partially offset by (i) the successful completion of a new well
during late 2000 and (ii) negative prior period volume adjustments made by
the purchasers on two significant wells during the three months ended June
30, 2000. Average oil prices decreased to $23.89 per barrel for the three
months ended June 30, 2001 from $25.71 per barrel for the three months
ended June 30, 2000. Average gas prices increased to $5.86 per Mcf for the
three months ended June 30, 2001 from $3.09 per Mcf for the three months
ended June 30, 2000.
-49-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $37,522 (14.8%) for the three months ended
June 30, 2001 as compared to the three months ended June 30, 2000. This
increase was primarily due to (i) workover expenses incurred on several
wells during the three months ended June 30, 2001 and (ii) an increase in
production taxes associated with the increase in oil and gas sales. These
increases were partially offset by (i) a positive prior period lease
operating expense adjustment made by the operator on one significant well
during the three months ended June 30, 2000 and (ii) a negative prior
period lease operating expense adjustment made by the operator on another
significant well during the three months ended June 30, 2001. As a
percentage of oil and gas sales, these expenses decreased to 26.1% for the
three months ended June 30, 2001 from 29.3% 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
decreased $18,938 (29.6%) for the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000. This decrease was
primarily due to the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense decreased to 4.0% for the
three months ended June 30, 2001 from 7.4% for the three months ended June
30, 2000. This percentage decrease was primarily due to the increase in
the average price of gas sold.
General and administrative expenses remained relatively constant 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 7.8% for the three months ended June 30, 2001 from 10.0% for
the three months ended June 30, 2000. This percentage decrease was
primarily due to the increase in oil and gas sales.
-50-
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 $2,441,111 $1,698,551
Oil and gas production expenses $ 547,249 $ 481,927
Barrels produced 7,787 16,559
Mcf produced 361,489 454,701
Average price/Bbl $ 25.35 $ 26.45
Average price/Mcf $ 6.21 $ 2.77
As shown in the table above, total oil and gas sales increased $742,560
(43.7%) for the six months ended June 30, 2001 as compared to the six
months ended June 30, 2000. Of this increase, approximately $1,242,000 was
related to an increase in the average price of gas sold. This increase was
partially offset by decreases of approximately $232,000 and $258,000,
respectively, related to decreases in volumes of oil and gas sold. Volumes
of oil and gas sold decreased 8,772 barrels and 93,212 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 several wells during 2000. The decrease in volumes of gas sold
was primarily due to (i) a negative gas balancing adjustment on one
significant well during the six months ended June 30, 2001, (ii) the
shutting-in of two other significant wells during the six months ended
June 30, 2001 in order to perform repairs and maintenance, and (iii)
normal declines in production. These decreases were partially offset by
(i) the successful completion of a new well during late 2000 and (ii)
negative prior period volume adjustments made by the purchasers on two
significant wells during the six months ended June 30, 2000. Average oil
prices decreased to $25.35 per barrel for the six months ended June 30,
2001 from $26.45 per barrel for the six months ended June 30, 2000.
Average gas prices increased to $6.21 per Mcf for the six months ended
June 30, 2001 from $2.77 per Mcf for the six months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $65,322 (13.6%) 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) an increase in production taxes associated with
the increase in oil and gas sales and (ii) workover expenses incurred on
several wells during the six months ended June 30, 2001. These increases
were partially offset by (i) a positive prior period lease operating
expense adjustment made by the operator on one significant well during the
six months
-51-
ended June 30, 2000 and (ii) a negative prior period lease operating
expense adjustment made by the operator on another significant well during
the six months ended June 30, 2001. As a percentage of oil and gas sales,
these expenses decreased to 22.4% for the six months ended June 30, 2001
from 28.4% 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
decreased $42,780 (31.3%) for the six months ended June 30, 2001 as
compared to the six months ended June 30, 2000. This decrease was
primarily due to the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense decreased to 3.8% for the
six months ended June 30, 2001 from 8.0% for the six months ended June 30,
2000. This percentage decrease was primarily due to the increase in the
average price of gas sold.
General and administrative expenses decreased $8,642 (4.3%) 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
7.8% for the six months ended June 30, 2001 from 11.7% for the six months
ended June 30, 2000. This percentage decrease was primarily due to the
increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2001 totaling $36,028,903 or 114.42% of Limited Partners' capital
contributions.
II-E PARTNERSHIP
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 $757,605 $661,135
Oil and gas production expenses $166,866 $163,902
Barrels produced 6,504 5,301
Mcf produced 127,098 149,471
Average price/Bbl $ 26.55 $ 29.16
Average price/Mcf $ 4.60 $ 3.39
As shown in the table above, total oil and gas sales increased $96,470
(14.6%) for the three months ended June 30, 2001 as compared to the three
months ended June 30, 2000. Of this increase, approximately (i) $154,000
was related to an increase in the average price of gas sold and (ii)
$35,000 was related to an increase in volumes of oil sold. These increases
were partially offset by decreases of approximately
-52-
(i) $76,000 related to a decrease in volumes of gas sold and (ii) $17,000
related to a decrease in the average price of oil sold. Volumes of oil
sold increased 1,203 barrels, while volumes of gas sold decreased 22,373
Mcf for the three months ended June 30, 2001 as compared to the three
months ended June 30, 2000. The increase in volumes of oil sold was
primarily due to (i) a positive prior period volume adjustment made by the
purchaser on one significant well during the three months ended June 30,
2001 and (ii) a negative prior period volume adjustment made by the
purchaser on another significant well during the three months ended June
30, 2000. The decrease in volumes of gas sold was primarily due to (i)
normal declines in production and (ii) the II-E Partnership receiving a
reduced percentage of sales on one significant well during the three
months ended June 30, 2001 due to gas balancing. As of the date of this
Quarterly Report, Management expects the gas balancing adjustment to
continue for the foreseeable future, thereby continuing to contribute to a
decrease in volumes of gas produced. Average oil prices decreased to
$26.55 per barrel for the three months ended June 30, 2001 from $29.16 per
barrel for the three months ended June 30, 2000. Average gas prices
increased to $4.60 per Mcf for the three months ended June 30, 2001 from
$3.39 per Mcf for the three months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $2,964 (1.8%) for the three months ended June
30, 2001 as compared to the three months ended June 30, 2000. This
increase was primarily due to (i) an increase in production taxes
associated with the increase in oil and gas sales, (ii) an increase in
repair and maintenance expenses incurred on one significant well during
the three months ended June 30, 2001 as compared to the three months ended
June 30, 2000, and (iii) workover expenses incurred on another significant
well during the three months ended June 30, 2001. These increases were
substantially offset by a positive prior period lease operating expense
adjustment made by the operator on another significant well during the
three months ended June 30, 2000. As a percentage of oil and gas sales,
these expenses decreased to 22.0% for the three months ended June 30, 2001
from 24.8% 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
decreased $21,567 (29.7%) for the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000. This decrease was
primarily due to the decrease in volumes of gas sold and upward revisions
in the estimates of remaining oil and gas reserves at December 31, 2000.
As a percentage of oil and gas sales, this expense decreased to 6.7% for
the three months ended June 30, 2001
-53-
from 11.0% for the three months ended June 30, 2000. This percentage
decrease was primarily due to the dollar decrease in depreciation,
depletion, and amortization expenses and the increase in the average price
of gas sold.
General and administrative expenses remained relatively constant 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 8.4% for the three months ended June 30, 2001 from 9.6% for
the three months ended June 30, 2000. This percentage decrease was
primarily due to the increase in oil and gas sales.
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 $1,690,610 $1,170,440
Oil and gas production expenses $ 342,456 $ 283,195
Barrels produced 12,165 12,523
Mcf produced 242,344 309,293
Average price/Bbl $ 27.28 $ 29.02
Average price/Mcf $ 5.61 $ 2.61
As shown in the table above, total oil and gas sales increased $520,170
(44.4%) for the six months ended June 30, 2001 as compared to the six
months ended June 30, 2000. Of this increase, approximately $726,000 was
related to an increase in the average price of gas sold. This increase was
partially offset by a decrease of approximately $175,000 related to a
decrease in volumes of gas sold. Volumes of oil and gas sold decreased 358
barrels and 66,949 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) normal declines in
production, (ii) a positive prior period volume adjustment made by the
purchaser on one significant well during the six months ended June 30,
2000, and (iii) the II-E Partnership receiving a reduced percentage of
sales on another significant well during the six months ended June 30,
2001 due to gas balancing. As of the date of this Quarterly Report,
Management expects the gas balancing adjustment to continue for the
foreseeable future, thereby continuing to contribute to a decrease in
volumes of gas produced. Average oil prices decreased to $27.28 per barrel
for the six months ended June 30, 2001 from $29.02 per barrel for the six
months ended June 30, 2000. Average gas prices increased to $5.61 per Mcf
for the six months ended June 30, 2001 from $2.61 per Mcf for the six
months ended June 30, 2000.
-54-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $59,261 (20.9%) 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) an increase in production taxes associated with
the increase in oil and gas sales and (ii) an increase in repair and
maintenance expenses incurred on one significant well during the six
months ended June 30, 2001 as compared to the six months ended June 30,
2000. These increases were partially offset by a positive prior period
lease operating expense adjustment made by the operator on another
significant well during the six months ended June 30, 2000. As a
percentage of oil and gas sales, these expenses decreased to 20.3% for the
six months ended June 30, 2001 from 24.2% 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
decreased $57,070 (37.1%) for the six months ended June 30, 2001 as
compared to the six months ended June 30, 2000. This decrease was
primarily due to the decreases in volumes of oil and gas sold and upward
revisions in the estimates of remaining oil and gas reserves at December
31, 2000. As a percentage of oil and gas sales, this expense decreased to
5.7% for the six months ended June 30, 2001 from 13.1% for the six months
ended June 30, 2000. This percentage decrease was primarily due to the
increase in the average price of gas sold and the dollar decrease in
depreciation, depletion, and amortization.
General and administrative expenses decreased $2,227 (1.5%) 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
8.5% for the six months ended June 30, 2001 from 12.4% for the six months
ended June 30, 2000. This percentage decrease was primarily due to the
increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2001 totaling $25,920,574 or 113.28% of Limited Partners' capital
contributions.
-55-
II-F PARTNERSHIP
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 $778,828 $568,065
Oil and gas production expenses $124,723 $ 98,151
Barrels produced 8,389 6,593
Mcf produced 128,069 112,710
Average price/Bbl $ 26.29 $ 28.05
Average price/Mcf $ 4.36 $ 3.40
As shown in the table above, total oil and gas sales increased $210,763
(37.1%) for the three months ended June 30, 2001 as compared to the three
months ended June 30, 2000. Of this increase, approximately $123,000 was
related to an increase in the average price of gas sold and approximately
$50,000 and $52,000, respectively, were related to increases in volumes of
oil and gas sold. Volumes of oil and gas sold increased 1,796 barrels and
15,359 Mcf, respectively, for the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000. The increase in volumes
of oil sold was primarily due to a positive prior period volume adjustment
made by the purchaser on one significant well during the three months
ended June 30, 2001. The increase in volumes of gas sold was primarily due
to (i) positive prior period volume adjustments made by the purchasers on
two significant wells during the three months ended June 30, 2001 and (ii)
a positive prior period gas balancing adjustment on another significant
well during the three months ended June 30, 2001. Average oil prices
decreased to $26.29 per barrel for the three months ended June 30, 2001
from $28.05 per barrel for the three months ended June 30, 2000. Average
gas prices increased to $4.36 per Mcf for the three months ended June 30,
2001 from $3.40 per Mcf for the three months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $26,572 (27.1%) for the three months ended
June 30, 2001 as compared to the three months ended June 30, 2000. This
increase was primarily due to (i) an increase in production taxes
associated with the increase in oil and gas sales and (ii) workover
expenses incurred on several wells during the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses decreased to
16.0% for the three months ended June 30, 2001 from 17.3% for the three
months ended June 30, 2000.
-56-
Depreciation, depletion, and amortization of oil and gas properties
increased $6,776 (12.3%) for the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000. This increase was
primarily due to the increases in volumes of oil and gas sold. This
increase was partially offset by upward revisions in the estimates of
remaining oil and gas reserves at December 31, 2000. As a percentage of
oil and gas sales, this expense decreased to 7.9% for the three months
ended June 30, 2001 from 9.7% for the three months ended June 30, 2000.
This percentage decrease was primarily due to the increase in the average
price of gas sold.
General and administrative expenses remained relatively constant 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 6.0% for the three months ended June 30, 2001 from 8.3% for
the three months ended June 30, 2000. This percentage decrease was
primarily due to the increase in oil and gas sales.
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 $1,599,714 $1,075,723
Oil and gas production expenses $ 262,059 $ 212,757
Barrels produced 15,079 14,434
Mcf produced 238,121 255,755
Average price/Bbl $ 27.07 $ 27.66
Average price/Mcf $ 5.00 $ 2.65
As shown in the table above, total oil and gas sales increased $523,991
(48.7%) for the six months ended June 30, 2001 as compared to the six
months ended June 30, 2000. Of this increase, approximately $562,000 was
related to an increase in the average price of gas sold. Volumes of oil
sold increased 645 barrels, while volumes of gas sold decreased 17,634 Mcf
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
positive prior period volume adjustments made by the purchasers on two
significant wells during the six months ended June 30, 2000. This decrease
was partially offset by (i) positive prior period volume adjustments made
by the purchasers on two other significant wells during the six months
ended June 30, 2001 and (ii) a positive prior period gas balancing
adjustment on another significant well during the six months ended June
30, 2001. Average oil prices decreased to $27.07 per barrel for the six
months ended June
-57-
30, 2001 from $27.66 per barrel for the six months ended June 30, 2000.
Average gas prices increased to $5.00 per Mcf for the six months ended
June 30, 2001 from $2.65 per Mcf for the six months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $49,302 (23.2%) 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 16.4% for the six months ended June 30, 2001 from
19.8% 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
decreased $9,907 (8.0%) 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, this expense decreased to 7.1% for the six months ended June 30,
2001 from 11.5% for the six months ended June 30, 2000. This percentage
decrease was primarily due to the increase in the average price of gas
sold.
General and administrative expenses increased $2,198 (2.0%) 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
6.9% for the six months ended June 30, 2001 from 10.1% for the six months
ended June 30, 2000. This percentage decrease was primarily due to the
increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2001 totaling $20,026,051 or 116.84% of Limited Partners' capital
contributions.
-58-
II-G PARTNERSHIP
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 $1,659,073 $1,242,924
Oil and gas production expenses $ 267,493 $ 212,103
Barrels produced 17,607 13,841
Mcf produced 272,690 240,274
Average price/Bbl $ 26.29 $ 28.05
Average price/Mcf $ 4.39 $ 3.56
As shown in the table above, total oil and gas sales increased $416,149
(33.5%) for the three months ended June 30, 2001 as compared to the three
months ended June 30, 2000. Of this increase, approximately $226,000 was
related to an increase in the average price of gas sold and approximately
$106,000 and $115,000, respectively, were related to increases in volumes
of oil and gas sold. Volumes of oil and gas sold increased 3,766 barrels
and 32,416 Mcf, respectively, for the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000. The increase in volumes
of oil sold was primarily due to a positive prior period volume adjustment
made by the purchaser on one significant well during the three months
ended June 30, 2001. The increase in volumes of gas sold was primarily due
to (i) positive prior period volume adjustments made by the purchasers on
two significant wells during the three months ended June 30, 2001 and (ii)
a positive prior period gas balancing adjustment on another significant
well during the three months ended June 30, 2001. Average oil prices
decreased to $26.29 per barrel for the three months ended June 30, 2001
from $28.05 per barrel for the three months ended June 30, 2000. Average
gas prices increased to $4.39 per Mcf for the three months ended June 30,
2001 from $3.56 per Mcf for the three months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $55,390 (26.1%) for the three months ended
June 30, 2001 as compared to the three months ended June 30, 2000. This
increase was primarily due to (i) an increase in production taxes
associated with the increase in oil and gas sales and (ii) workover
expenses incurred on several wells during the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses decreased to
16.1% for the three months ended June 30, 2001 from 17.1% for the three
months ended June 30, 2000.
-59-
Depreciation, depletion, and amortization of oil and gas properties
increased $13,772 (11.7%) for the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000. This increase was
primarily due to the increases in volumes of oil and gas sold. This
increase was partially offset by upward revisions in the estimates of
remaining oil and gas reserves at December 31, 2000. As a percentage of
oil and gas sales, this expense decreased to 7.9% for the three months
ended June 30, 2001 from 9.5% for the three months ended June 30, 2000.
This percentage decrease was primarily due to the increase in the average
price of gas sold.
General and administrative expenses remained relatively constant 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 6.1% for the three months ended June 30, 2001 from 8.2% for
the three months ended June 30, 2000. This percentage decrease was
primarily due to the increase in oil and gas sales.
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 $3,403,123 $2,283,363
Oil and gas production expenses $ 560,473 $ 456,990
Barrels produced 31,623 30,272
Mcf produced 507,390 550,702
Average price/Bbl $ 27.07 $ 27.66
Average price/Mcf $ 5.02 $ 2.63
As shown in the table above, total oil and gas sales increased $1,119,760
(49.0%) for the six months ended June 30, 2001 as compared to the six
months ended June 30, 2000. Of this increase, approximately $1,215,000 was
related to an increase in the average price of gas sold. This increase was
partially offset by a decrease of approximately $114,000 related to a
decrease in volumes of gas sold. Volumes of oil sold increased 1,351
barrels, while volumes of gas sold decreased 43,312 Mcf 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 positive prior period
volume adjustments made by the purchasers on two significant wells during
the six months ended June 30, 2000. This decrease was partially offset by
(i) positive prior period volume adjustments made by the purchasers on two
other significant wells during the six months ended June 30, 2001 and (ii)
a positive prior period gas balancing adjustment on another significant
well during
-60-
the six months ended June 30, 2001. Average oil prices decreased to $27.07
per barrel for the six months ended June 30, 2001 from $27.66 per barrel
for the six months ended June 30, 2000. Average gas prices increased to
$5.02 per Mcf for the six months ended June 30, 2001 from $2.63 per Mcf
for the six months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $103,483 (22.6%) 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 16.5% for the six months ended June 30, 2001 from
20.0% 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
decreased $24,470 (9.2%) 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, this expense decreased to 7.1% for the six months ended June
30, 2001 from 11.7% for the six months ended June 30, 2000. This
percentage decrease was primarily due to the increase in the average price
of gas sold.
General and administrative expenses decreased $13,164 (5.6%) 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
6.5% for the six months ended June 30, 2001 from 10.3% for the six months
ended June 30, 2000. This percentage decrease was primarily due to the
increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2001 totaling $41,565,371 or 111.68% of Limited Partners' capital
contributions.
-61-
II-H PARTNERSHIP
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 $395,727 $311,239
Oil and gas production expenses $ 64,682 $ 52,135
Barrels produced 4,094 3,225
Mcf produced 65,181 57,560
Average price/Bbl $ 26.28 $ 28.05
Average price/Mcf $ 4.42 $ 3.84
As shown in the table above, total oil and gas sales increased $84,488
(27.1%) for the three months ended June 30, 2001 as compared to the three
months ended June 30, 2000. Of this increase, approximately $38,000 was
related to an increase in the average price of gas sold and approximately
$24,000 and $29,000, respectively, were related to increases in volumes of
oil and gas sold. Volumes of oil and gas sold increased 869 barrels and
7,621 Mcf, respectively, for the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000. The increase in volumes
of oil sold was primarily due to a positive prior period volume adjustment
made by the purchaser on one significant well during the three months
ended June 30, 2001. The increase in volumes of gas sold was primarily due
to (i) positive prior period volume adjustments made by the purchasers on
two significant wells during the three months ended June 30, 2001 and (ii)
a positive prior period gas balancing adjustment on another significant
well during the three months ended June 30, 2001. Average oil prices
decreased to $26.28 per barrel for the three months ended June 30, 2001
from $28.05 per barrel for the three months ended June 30, 2000. Average
gas prices increased to $4.42 per Mcf for the three months ended June 30,
2001 from $3.84 per Mcf for the three months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $12,547 (24.1%) for the three months ended
June 30, 2001 as compared to the three months ended June 30, 2000. This
increase was primarily due to (i) an increase in production taxes
associated with the increase in oil and gas sales and (ii) workover
expenses incurred on several wells during the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses decreased to
16.3% for the three months ended June 30, 2001 from 16.8% for the three
months ended June 30, 2000.
-62-
Depreciation, depletion, and amortization of oil and gas properties
increased $2,994 (10.8%) for the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000. This increase was
primarily due to the increases in volumes of oil and gas sold. This
increase was partially offset by upward revisions in the estimates of
remaining oil and gas reserves at December 31, 2000. As a percentage of
oil and gas sales, this expense decreased to 7.8% for the three months
ended June 30, 2001 from 8.9% for the three months ended June 30, 2000.
This percentage decrease was primarily due to the increase in the average
price of gas sold.
General and administrative expenses remained relatively constant 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 6.5% for the three months ended June 30, 2001 from 8.2% for
the three months ended June 30, 2000. This percentage decrease was
primarily due to the increase in oil and gas sales.
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 $811,088 $533,848
Oil and gas production expenses $135,041 $110,456
Barrels produced 7,352 7,056
Mcf produced 121,447 130,233
Average price/Bbl $ 27.07 $ 27.65
Average price/Mcf $ 5.04 $ 2.60
As shown in the table above, total oil and gas sales increased $277,240
(51.9%) for the six months ended June 30, 2001 as compared to the six
months ended June 30, 2000. Of this increase, approximately $296,000 was
related to an increase in the average price of gas sold. Volumes of oil
sold increased 296 barrels, while volumes of gas sold decreased 8,786 Mcf
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
positive prior period volume adjustments made by the purchasers on two
significant wells during the six months ended June 30, 2000. This decrease
was partially offset by (i) positive prior period volume adjustments made
by the purchasers on two other significant wells during the six months
ended June 30, 2001 and (ii) a positive prior period gas balancing
adjustment on another significant well during the six months ended June
30, 2001. Average oil prices
-63-
decreased to $27.07 per barrel for the six months ended June 30, 2001 from
$27.65 per barrel for the six months ended June 30, 2000. Average gas
prices increased to $5.04 per Mcf for the six months ended June 30, 2001
from $2.60 per Mcf for the six months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $24,585 (22.3%) for the six months ended June
30, 2001 as compared to the six months ended June 30, 2000. This increase
was primarily due to 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 16.6% for the six months ended June 30, 2001 from
20.7% 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
decreased $5,572 (8.9%) 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, this expense decreased to 7.0% for the six months ended June 30,
2001 from 11.7% for the six months ended June 30, 2000. This percentage
decrease was primarily due to the increase in the average price of gas
sold.
General and administrative expenses increased $8,324 (14.3%) for the six
months ended June 30, 2001 as compared to the six months ended June 30,
2000. This increase was primarily due to a change in allocation of audit
fees among the II-H Partnership and other affiliated partnerships. As a
percentage of oil and gas sales, these expenses decreased to 8.2% for the
six months ended June 30, 2001 from 10.9% for the six months ended June
30, 2000. This percentage decrease was primarily due to the increase in
oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2001 totaling $9,703,364 or 105.80% of Limited Partners' capital
contributions.
-64-
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
-65-
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K.
None.
-66-
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.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: August 14, 2001 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: August 14, 2001 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
-67-