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 September 30, 2001
Commission File Number:
I-D: 0-15831 I-E: 0-15832 I-F: 0-15833
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
--------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
I-D 73-1265223
I-E 73-1270110
Oklahoma I-F 73-1292669
- ---------------------------- -------------------------------
(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 I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2001 2000
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $223,574 $ 238,748
Accounts receivable:
Oil and gas sales 106,752 238,567
-------- ----------
Total current assets $330,326 $ 477,315
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 477,270 465,035
DEFERRED CHARGE 121,991 121,991
-------- ----------
$929,587 $1,064,341
======== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 9,473 $ 8,646
Gas imbalance payable 33,399 37,628
-------- ----------
Total current liabilities $ 42,872 $ 46,274
ACCRUED LIABILITY $ 39,300 $ 41,157
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 30,229) ($ 11,358)
Limited Partners, issued and
outstanding, 7,195 units 877,644 988,268
-------- ----------
Total Partners' capital $847,415 $ 976,910
-------- ----------
$929,587 $1,064,341
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
--------- ---------
REVENUES:
Oil and gas sales $217,296 $370,080
Interest income 1,701 2,885
-------- --------
$218,997 $372,965
COSTS AND EXPENSES:
Lease operating $ 31,636 $ 27,725
Production tax 13,807 25,077
Depreciation, depletion, and
amortization of oil and gas
properties 14,957 17,576
General and administrative
(Note 2) 22,037 22,257
-------- --------
$ 82,437 $ 92,635
-------- --------
NET INCOME $136,560 $280,330
======== ========
GENERAL PARTNER - NET INCOME $ 22,323 $ 44,078
======== ========
LIMITED PARTNERS - NET INCOME $114,237 $236,252
======== ========
NET INCOME per unit $ 15.88 $ 32.84
======== ========
UNITS OUTSTANDING 7,195 7,195
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ---------
REVENUES:
Oil and gas sales $872,478 $958,710
Interest income 6,487 6,807
Gain on sale of oil and gas
properties 2,933 -
-------- --------
$881,898 $965,517
COSTS AND EXPENSES:
Lease operating $119,199 $118,878
Production tax 60,980 63,059
Depreciation, depletion, and
amortization of oil and gas
properties 36,200 54,264
General and administrative
(Note 2) 80,742 71,163
-------- --------
$297,121 $307,364
-------- --------
NET INCOME $584,777 $658,153
======== ========
GENERAL PARTNER - NET INCOME $ 91,401 $105,299
======== ========
LIMITED PARTNERS - NET INCOME $493,376 $552,854
======== ========
NET INCOME per unit $ 68.57 $ 76.84
======== ========
UNITS OUTSTANDING 7,195 7,195
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $584,777 $658,153
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 36,200 54,264
Gain on sale of oil and gas
properties ( 2,933) -
(Increase) decrease in accounts
receivable - oil and gas sales 131,815 ( 110,102)
Increase (decrease) in accounts
payable 827 ( 7,843)
Decrease in gas imbalance payable ( 4,229) -
Decrease in accrued liability ( 1,857) -
-------- --------
Net cash provided by operating
activities $744,600 $594,472
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 48,528) ($ 2,714)
Proceeds from sale of oil and
gas properties 3,026 686
-------- --------
Net cash used by investing activities ($ 45,502) ($ 2,028)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($714,272) ($518,134)
-------- --------
Net cash used by financing activities ($714,272) ($518,134)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 15,174) $ 74,310
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 238,748 183,942
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $223,574 $258,252
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2001 2000
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,170,449 $1,309,542
Accounts receivable:
Oil and gas sales 737,125 1,320,349
---------- ----------
Total current assets $1,907,574 $2,629,891
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,075,248 3,140,757
DEFERRED CHARGE 675,247 675,247
---------- ----------
$5,658,069 $6,445,895
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 74,200 $ 71,113
Gas imbalance payable 116,370 159,002
---------- ----------
Total current liabilities $ 190,570 $ 230,115
ACCRUED LIABILITY $ 234,448 $ 243,815
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 103,311) ($ 25,660)
Limited Partners, issued and
outstanding, 41,839 units 5,336,362 5,997,625
---------- ----------
Total Partners' capital $5,233,051 $5,971,965
---------- ----------
$5,658,069 $6,445,895
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $1,349,455 $1,909,516
Interest income 9,934 14,160
Gain on sale of oil and gas
properties - 89,900
---------- ----------
$1,359,389 $2,013,576
COSTS AND EXPENSES:
Lease operating $ 253,910 $ 201,031
Production tax 84,503 129,012
Depreciation, depletion, and
amortization of oil and gas
properties 134,962 139,833
General and administrative
(Note 2) 123,372 124,868
---------- ----------
$ 596,747 $ 594,744
---------- ----------
NET INCOME $ 762,642 $1,418,832
========== ==========
GENERAL PARTNER - NET INCOME $ 131,801 $ 230,278
========== ==========
LIMITED PARTNERS - NET INCOME $ 630,841 $1,188,554
========== ==========
NET INCOME per unit $ 15.08 $ 28.41
========== ==========
UNITS OUTSTANDING 41,839 41,839
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $5,257,927 $4,891,139
Interest income 36,675 34,303
Gain on sale of oil and gas
properties 9,546 89,900
---------- ----------
$5,304,148 $5,015,342
COSTS AND EXPENSES:
Lease operating $ 754,056 $ 664,257
Production tax 346,753 319,748
Depreciation, depletion, and
amortization of oil and gas
properties 344,974 431,393
General and administrative
(Note 2) 382,817 401,077
---------- ----------
$1,828,600 $1,816,475
---------- ----------
NET INCOME $3,475,548 $3,198,867
========== ==========
GENERAL PARTNER - NET INCOME $ 562,811 $ 535,080
========== ==========
LIMITED PARTNERS - NET INCOME $2,912,737 $2,663,787
========== ==========
NET INCOME per unit $ 69.62 $ 63.67
========== ==========
UNITS OUTSTANDING 41,839 41,839
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $3,475,548 $3,198,867
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 344,974 431,393
Gain on sale of oil and gas
properties ( 9,546) ( 89,900)
(Increase) decrease in accounts
receivable - oil and gas sales 583,224 ( 442,065)
Increase in accounts receivable -
related party - ( 959)
Increase (decrease) in accounts
payable 3,087 ( 35,710)
Decrease in gas imbalance payable ( 42,632) -
Decrease in accrued liability ( 9,367) -
---------- ----------
Net cash provided by operating
activities $4,345,288 $3,061,626
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 286,642) ($ 89,038)
Proceeds from sale of oil and gas
properties 16,723 -
---------- ----------
Net cash used by investing activities ($ 269,919) ($ 89,038)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($4,214,462) ($2,607,369)
---------- ----------
Net cash used by financing activities ($4,214,462) ($2,607,369)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 139,093) $ 365,219
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,309,542 891,310
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,170,449 $1,256,529
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2001 2000
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 251,194 $ 437,623
Accounts receivable:
Oil and gas sales 194,457 359,478
---------- ----------
Total current assets $ 445,651 $ 797,101
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 917,634 1,000,652
DEFERRED CHARGE 464,191 464,191
---------- ----------
$1,827,476 $2,261,944
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 34,180 $ 32,992
Gas imbalance payable 43,416 67,508
---------- ----------
Total current liabilities $ 77,596 $ 100,500
ACCRUED LIABILITY $ 185,520 $ 185,520
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 12,355) $ 7,531
Limited Partners, issued and
outstanding, 14,321 units 1,576,715 1,968,393
---------- ----------
Total Partners' capital $1,564,360 $1,975,924
---------- ----------
$1,827,476 $2,261,944
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $365,798 $522,159
Interest income 2,092 4,087
Gain on sale of oil and gas
properties - 63,355
-------- --------
$367,890 $589,601
COSTS AND EXPENSES:
Lease operating $110,972 $ 96,657
Production tax 20,586 34,396
Depreciation, depletion, and
amortization of oil and gas
properties 39,730 33,976
General and administrative
(Note 2) 42,883 43,351
-------- --------
$214,171 $208,380
-------- --------
NET INCOME $153,719 $381,221
======== ========
GENERAL PARTNER - NET INCOME $ 28,307 $ 61,327
======== ========
LIMITED PARTNERS - NET INCOME $125,412 $319,894
======== ========
NET INCOME per unit $ 8.75 $ 22.34
======== ========
UNITS OUTSTANDING 14,321 14,321
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
----------- -----------
REVENUES:
Oil and gas sales $1,351,289 $1,464,412
Interest income 10,272 10,084
Gain on sale of oil and gas
properties 38,675 63,355
---------- ----------
$1,400,236 $1,537,851
COSTS AND EXPENSES:
Lease operating $ 327,916 $ 313,152
Production tax 82,244 91,347
Depreciation, depletion, and
amortization of oil and gas
properties 101,770 107,977
General and administrative
(Note 2) 142,860 139,042
---------- ----------
$ 654,790 $ 651,518
---------- ----------
NET INCOME $ 745,446 $ 886,333
========== ==========
GENERAL PARTNER - NET INCOME $ 119,124 $ 146,554
========== ==========
LIMITED PARTNERS - NET INCOME $ 626,322 $ 739,779
========== ==========
NET INCOME per unit $ 43.73 $ 51.66
========== ==========
UNITS OUTSTANDING 14,321 14,321
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 745,446 $886,333
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 101,770 107,977
Gain on sale of oil and gas
properties ( 38,675) ( 63,355)
(Increase) decrease in accounts
receivable - oil and gas sales 165,021 ( 100,746)
Increase in accounts receivable -
related party - ( 672)
Increase (decrease) in accounts
payable 1,188 ( 1,462)
Decrease in gas imbalance payable ( 24,092) -
---------- --------
Net cash provided by operating
activities $ 950,658 $828,075
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 20,825) ($ 58,974)
Proceeds from sale of oil and gas
properties 40,748 -
---------- --------
Net cash provided (used) by investing
activities $ 19,923 ($ 58,974)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,157,010) ($697,211)
---------- --------
Net cash used by financing activities ($1,157,010) ($697,211)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 186,429) $ 71,890
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 437,623 254,500
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 251,194 $326,390
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-13-
GEODYNE ENERGY INCOME PROGRAM I LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of September 30, 2001, combined statements
of operations for the three and nine months ended September 30, 2001 and
2000, and combined statements of cash flows for the nine months ended
September 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 Energy
Income 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 September 30, 2001, the combined results of
operations for the three and nine months ended September 30, 2001 and
2000, and the combined cash flows for the nine months ended September 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 September 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
$1,000 initial capital contribution.
-14-
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.
-15-
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 September 30, 2001, the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
I-D $2,051 $ 19,986
I-E 7,152 116,220
I-F 3,103 39,780
During the nine months ended September 30, 2001, the following payments
were made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
I-D $20,784 $ 59,958
I-E 34,157 348,660
I-F 23,520 119,340
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.
-16-
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.
-17-
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
----------- ------------------ ---------------
I-D March 4, 1986 $ 7,194,700
I-E September 10, 1986 41,839,400
I-F December 16, 1986 14,320,900
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 September 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
cash distribution. During the nine months ended September 30, 2001,
capital expenditures for the I-D and I-E Partnerships totaled $48,528 and
$286,642, respectively. These expenditures were primarily due to the
successful recompletion on the Haley 08-1 well located in Winkler County,
Texas, in which the I-D and I-E Partnerships own working interests of
approximately 12.3% and 7.3%, respectively.
-18-
Pursuant to the terms of the Partnerships' partnership agreements (the
"Partnership Agreements"), the Partnerships would have terminated on
December 31, 1999. However, the Partnership Agreements provide that the
General Partner may extend the term of each Partnership for up to five
periods of two years each. The General Partner has previously exercised
the first extension for each Partnership, thereby extending their terms to
December 31, 2001. The General Partner currently intends to extend the
terms of the Partnerships for their second two year extension period to
December 31, 2003.
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 in 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 was 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 several months, however,
spot gas prices have substantially declined. A weakening economy and
recent terrorist activities may result in additional downward pricing
pressure. It is not possible to accurately predict future pricing
direction.
-19-
I-D PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2000.
Three Months Ended September 30,
--------------------------------
2001 2000
-------- --------
Oil and gas sales $217,296 $370,080
Oil and gas production expenses $ 45,443 $ 52,802
Barrels produced 754 1,508
Mcf produced 76,327 79,570
Average price/Bbl $ 25.30 $ 33.18
Average price/Mcf $ 2.60 $ 4.02
As shown in the table above, total oil and gas sales decreased $152,784
(41.3%) for the three months ended September 30, 2001 as compared to the
three months ended September 30, 2000. Of this decrease, approximately
$109,000 was related to a decrease in the average price of gas sold and
approximately $25,000 was related to a decrease in volumes of oil sold.
Volumes of oil and gas sold decreased 754 barrels and 3,243 Mcf,
respectively, for the three months ended September 30, 2001 as compared to
the three months ended September 30, 2000. The decrease in volumes of oil
sold was primarily due to the shutting-in of one significant well in order
to perform a workover during the three months ended September 30, 2001.
Average oil and gas prices decreased to $25.30 per barrel and $2.60 per
Mcf, respectively, for the three months ended September 30, 2001 from
$33.18 per barrel and $4.02 per Mcf, respectively, for the three months
ended September 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $7,359 (13.9%) for the three months ended
September 30, 2001 as compared to the three months ended September 30,
2000. This decrease was primarily due to a decrease in production taxes
associated with the decrease in oil and gas sales. As a percentage of oil
and gas sales, these expenses increased to 20.9% for the three months
ended September 30, 2001 from 14.3% for the three months ended September
30, 2000. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $2,619 (14.9%) for the three months ended September 30, 2001 as
compared to the three months ended September 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 increased to 6.9% for the
three months ended September 30, 2001 from 4.7%
-20-
for the three months ended September 30, 2000. This percentage increase
was primarily due to the decreases in the average prices of oil and gas
sold.
General and administrative expenses decreased $220 (1.0%) for the three
months ended September 30, 2001 as compared to the three months ended
September 30, 2000. As a percentage of oil and gas sales, these expenses
increased to 10.1% for the three months ended September 30, 2001 from 6.0%
for the three months ended September 30, 2000. This percentage increase
was primarily due to the decrease in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2000.
Nine Months Ended September 30,
-------------------------------
2001 2000
-------- --------
Oil and gas sales $872,478 $958,710
Oil and gas production expenses $180,179 $181,937
Barrels produced 2,561 5,066
Mcf produced 180,313 243,202
Average price/Bbl $ 27.20 $ 31.10
Average price/Mcf $ 4.45 $ 3.29
As shown in the table above, total oil and gas sales decreased $86,232
(9.0%) for the nine months ended September 30, 2001 as compared to the
nine months ended September 30, 2000. Of this decrease, approximately (i)
$78,000 and $207,000, respectively, were related to decreases in volumes
of oil and gas sold and (ii) $10,000 was related to a decrease in the
average price of oil sold. These decreases were partially offset by an
increase of approximately $209,000 related to an increase in the average
price of gas sold. Volumes of oil and gas sold decreased 2,505 barrels and
62,889 Mcf, respectively, for the nine months ended September 30, 2001 as
compared to the nine months ended September 30, 2000. The decrease in
volumes of oil sold was primarily due to the shutting-in of one
significant well in order to perform a workover during the nine months
ended September 30, 2001. The decrease in volumes of gas sold was
primarily due to (i) the shutting-in of one significant well in order to
perform a workover during the nine months ended September 30, 2001, (ii) a
positive prior period volume adjustment made by the purchaser on one
significant well during the nine months ended September 30, 2000, and
(iii) a negative gas balancing adjustment on another significant well
during the nine months ended September 30, 2001. Average oil prices
decreased to $27.20 per barrel for the nine months ended September 30,
2001 from $31.10 per barrel for the nine months ended September 30, 2000.
Average gas prices increased to $4.45 per Mcf for the nine months ended
-21-
September 30, 2001 from $3.29 per Mcf for the nine months ended September
30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $1,758 (1.0%) for the nine months ended
September 30, 2001 as compared to the nine months ended September 30,
2000. As a percentage of oil and gas sales, these expenses increased to
20.7% for the nine months ended September 30, 2001 from 19.0% for the nine
months ended September 30, 2000.
Depreciation, depletion, and amortization of oil and gas properties
decreased $18,064 (33.3%) for the nine months ended September 30, 2001 as
compared to the nine months ended September 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 4.1% for the
nine months ended September 30, 2001 from 5.7% for the nine months ended
September 30, 2000. This percentage decrease was primarily due to the
dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses increased $9,579 (13.5%) for the nine
months ended September 30, 2001 as compared to the nine months ended
September 30, 2000. This increase was primarily due to a change in
allocation of audit fees among the I-D Partnership and other affiliated
partnerships. As a percentage of oil and gas sales, these expenses
increased to 9.3% for the nine months ended September 30, 2001 from 7.4%
for the nine months ended September 30, 2000. This percentage increase was
primarily due to the dollar increase in general and administrative
expenses and the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2001 totaling $15,719,175 or 218.48% of Limited Partners' capital
contributions.
-22-
I-E PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2000.
Three Months Ended September 30,
--------------------------------
2001 2000
---------- ----------
Oil and gas sales $1,349,455 $1,909,516
Oil and gas production expenses $ 338,413 $ 330,043
Barrels produced 10,889 12,874
Mcf produced 397,393 383,740
Average price/Bbl $ 23.43 $ 28.37
Average price/Mcf $ 2.75 $ 4.02
As shown in the table above, total oil and gas sales decreased $560,061
(29.3%) for the three months ended September 30, 2001 as compared to the
three months ended September 30, 2000. Of this decrease, approximately
$505,000 was related to a decrease in the average price of gas sold and
approximately $56,000 was related to a decrease in volumes of oil sold.
Volumes of oil sold decreased 1,985 barrels, while volumes of gas sold
increased 13,653 Mcf for the three months ended September 30, 2001 as
compared to the three months ended September 30, 2000. The decrease in
volumes of oil sold was primarily due to (i) normal declines in
production, (ii) the sale of several wells during mid 2000, and (iii) the
shutting-in of one significant well during the three months ended
September 30, 2001 in order to perform repairs and maintenance. Average
oil and gas prices decreased to $23.43 per barrel and $2.75 per Mcf,
respectively, for the three months ended September 30, 2001 from $28.37
per barrel and $4.02 per Mcf, respectively, for the three months ended
September 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $8,370 (2.5%) for the three months ended
September 30, 2001 as compared to the three months ended September 30,
2000. This increase was primarily due to workover expenses incurred on
several wells during the three months ended September 30, 2001. This
increase was substantially offset by a decrease in production taxes
associated with the decrease in oil and gas sales. As a percentage of oil
and gas sales, these expenses increased to 25.1% for the three months
ended September 30, 2001 from 17.3% for the three months ended September
30, 2000. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
-23-
Depreciation, depletion, and amortization of oil and gas properties
decreased $4,871 (3.5%) for the three months ended September 30, 2001 as
compared to the three months ended September 30, 2000. As a percentage of
oil and gas sales, this expense increased to 10.0% for the three months
ended September 30, 2001 from 7.3% for the three months ended September
30, 2000. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
General and administrative expenses decreased $1,496 (1.2%) for the three
months ended September 30, 2001 as compared to the three months ended
September 30, 2000. As a percentage of oil and gas sales, these expenses
increased to 9.1% for the three months ended September 30, 2001 from 6.5%
for the three months ended September 30, 2000. This percentage increase
was primarily due to the decrease in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2000.
Nine Months Ended September 30,
-------------------------------
2001 2000
---------- ----------
Oil and gas sales $5,257,927 $4,891,139
Oil and gas production expenses $1,100,809 $ 984,005
Barrels produced 32,848 40,716
Mcf produced 985,678 1,177,876
Average price/Bbl $ 25.25 $ 28.19
Average price/Mcf $ 4.49 $ 3.18
As shown in the table above, total oil and gas sales increased $366,788
(7.5%) for the nine months ended September 30, 2001 as compared to the
nine months ended September 30, 2000. Of this increase, approximately
$1,296,000 was related to an increase in the average price of gas sold.
This increase was partially offset by decreases of approximately (i)
$222,000 and $611,000, respectively, related to decreases in volumes of
oil and gas sold and (ii) $96,000 related to a decrease in the average
price of oil sold. Volumes of oil and gas sold decreased 7,868 barrels and
192,198 Mcf, respectively, for the nine months ended September 30, 2001 as
compared to the nine months ended September 30, 2000. The decrease in
volumes of oil sold was primarily due to (i) normal declines in
production, (ii) the sale of several wells during mid 2000, and (iii) the
shutting-in of one significant well during the nine months ended September
30, 2001 in order to perform repairs and maintenance. The decrease in
volumes of gas sold was primarily due to (i) normal declines in
production, (ii) negative gas balancing adjustments on two significant
-24-
wells during the nine months ended September 30, 2001, and (iii) the
shutting-in of another significant well during the nine months ended
September 30, 2001 in order to perform repairs and maintenance. Average
oil prices decreased to $25.25 per barrel for the nine months ended
September 30, 2001 from $28.19 per barrel for the nine months ended
September 30, 2000. Average gas prices increased to $4.49 per Mcf for the
nine months ended September 30, 2001 from $3.18 per Mcf for the nine
months ended September 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $116,804 (11.9%) for the nine months ended
September 30, 2001 as compared to the nine months ended September 30,
2000. This increase was primarily due to (i) workover expenses incurred on
several wells during the nine months ended September 30, 2001 and (ii) an
increase in production taxes associated with the increase in oil and gas
sales. As a percentage of oil and gas sales, these expenses increased to
20.9% for the nine months ended September 30, 2001 from 20.1% for the nine
months ended September 30, 2000.
Depreciation, depletion, and amortization of oil and gas properties
decreased $86,419 (20.0%) for the nine months ended September 30, 2001 as
compared to the nine months ended September 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 6.6% for the
nine months ended September 30, 2001 from 8.8% for the nine months ended
September 30, 2000. This percentage decrease was primarily due to the
increase in the average price of gas sold.
General and administrative expenses decreased $18,260 (4.6%) for the nine
months ended September 30, 2001 as compared to the nine months ended
September 30, 2000. As a percentage of oil and gas sales, these expenses
decreased to 7.3% for the nine months ended September 30, 2001 from 8.2%
for the nine months ended September 30, 2000. This percentage decrease was
primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2001 totaling $62,249,552 or 148.78% of Limited Partners' capital
contributions.
-25-
I-F PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2000.
Three Months Ended September 30,
--------------------------------
2001 2000
-------- --------
Oil and gas sales $365,798 $522,159
Oil and gas production expenses $131,558 $131,053
Barrels produced 5,875 6,032
Mcf produced 83,941 85,874
Average price/Bbl $ 24.63 $ 28.25
Average price/Mcf $ 2.63 $ 4.10
As shown in the table above, total oil and gas sales decreased $156,361
(29.9%) for the three months ended September 30, 2001 as compared to the
three months ended September 30, 2000. Of this decrease, approximately
$21,000 and $123,000, respectively, were related to decreases in the
average prices of oil and gas sold. Volumes of oil and gas sold decreased
157 barrels and 1,933 Mcf, respectively, for the three months ended
September 30, 2001 as compared to the three months ended September 30,
2000. Average oil and gas prices decreased to $24.63 per barrel and $2.63
per Mcf, respectively, for the three months ended September 30, 2001 from
$28.25 per barrel and $4.10 per Mcf, respectively, for the three months
ended September 30, 2000.
The I-F Partnership sold certain oil and gas properties during the three
months ended September 30, 2000 and recognized a $63,355 gain on such
sales. No such sales occurred during the three months ended September 30,
2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) remained relatively constant for the three months ended
September 30, 2001 as compared to the three months ended September 30,
2000. As a percentage of oil and gas sales, these expenses increased to
36.0% for the three months ended September 30, 2001 from 25.1% for the
three months ended September 30, 2000. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $5,754 (16.9%) for the three months ended September 30, 2001 as
compared to the three months ended September 30, 2000. This increase was
primarily due to downward revisions in the estimates of remaining oil
reserves at December 31, 2000. As a percentage of oil and gas sales, this
expense increased to 10.9% for the three months ended September 30, 2001
from 6.5% for the three
-26-
months ended September 30, 2000. This percentage increase was
primarily due to the decreases in the average prices of oil and gas
sold.
General and administrative expenses decreased $468 (1.1%) for the three
months ended September 30, 2001 as compared to the three months ended
September 30, 2000. As a percentage of oil and gas sales, these expenses
increased to 11.7% for the three months ended September 30, 2001 from 8.3%
for the three months ended September 30, 2000. This percentage increase
was primarily due to the decrease in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2000.
Nine Months Ended September 30,
-------------------------------
2001 2000
---------- ----------
Oil and gas sales $1,351,289 $1,464,412
Oil and gas production expenses $ 410,160 $ 404,499
Barrels produced 15,946 19,605
Mcf produced 209,635 270,310
Average price/Bbl $ 25.19 $ 28.61
Average price/Mcf $ 4.53 $ 3.34
As shown in the table above, total oil and gas sales decreased $113,123
(7.7%) for the nine months ended September 30, 2001 as compared to the
nine months ended September 30, 2000. Of this decrease, approximately (i)
$105,000 and $203,000, respectively, were related to decreases in volumes
of oil and gas sold and (ii) $54,000 was related to a decrease in the
average price of oil sold. These decreases were partially offset by an
increase of approximately $249,000 related to an increase in the average
price of gas sold. Volumes of oil and gas sold decreased 3,659 barrels and
60,675 Mcf, respectively, for the nine months ended September 30, 2001 as
compared to the nine months ended September 30, 2000. The decrease in
volumes of oil sold was primarily due to (i) normal declines in
production, (ii) the sale of several wells during mid 2000, and (iii) the
shutting-in of one significant well during the nine months ended September
30, 2001 in order to perform repairs and maintenance. The decrease in
volumes of gas sold was primarily due to (i) a negative gas balancing
adjustment on one significant well during the nine months ended September
30, 2001, (ii) the shutting-in of two significant wells during the nine
months ended September 30, 2001 in order to perform repairs and
maintenance, and (iii) normal declines in production. Average oil prices
decreased to $25.19 per barrel for the nine months ended September 30,
2001 from $28.61 per barrel for the nine months ended September 30, 2000.
Average gas prices increased to $4.53
-27-
per Mcf for the nine months ended September 30, 2001 from $3.34 per Mcf
for the nine months ended September 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $5,661 (1.4%) for the nine months ended
September 30, 2001 as compared to the nine months ended September 30,
2000. As a percentage of oil and gas sales, these expenses increased to
30.4% for the nine months ended September 30, 2001 from 27.6% for the nine
months ended September 30, 2000. This percentage increase was primarily
due to the decrease in the average price of oil sold and the dollar
increase in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
decreased $6,207 (5.7%) for the nine months ended September 30, 2001 as
compared to the nine months ended September 30, 2000. As a percentage of
oil and gas sales, this expense increased to 7.5% for the nine months
ended September 30, 2001 from 7.4% for the nine months ended September 30,
2000.
General and administrative expenses increased $3,818 (2.7%) for the nine
months ended September 30, 2001 as compared to the nine months ended
September 30, 2000. As a percentage of oil and gas sales, these expenses
increased to 10.6% for the nine months ended September 30, 2001 from 9.5%
for the nine months ended September 30, 2000. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2001 totaling $20,241,664 or 141.34% of Limited Partners' capital
contributions.
-28-
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
-29-
PART II. OTHER INFORMATION
ITEM 5. OTHER INFORMATION
On November 1, 2001 Craig D. Loseke was named Chief Accounting Officer
of Geodyne.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K.
None.
-30-
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 I-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: November 14, 2001 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: November 14, 2001 By: /s/Craig D. Loseke
--------------------------------
(Signature)
Craig D. Loseke
Chief Accounting Officer
-31-