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:
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
September 30, December 31,
2001 2000
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 745,766 $1,070,734
Accounts receivable:
Oil and gas sales 591,190 1,042,022
---------- ----------
Total current assets $1,336,956 $2,112,756
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,745,658 2,827,525
DEFERRED CHARGE 813,560 813,560
---------- ----------
$4,896,174 $5,753,841
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 93,999 $ 169,414
Gas imbalance payable 92,583 103,856
---------- ----------
Total current liabilities $ 186,582 $ 273,270
ACCRUED LIABILITY $ 242,152 $ 252,704
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 300,190) ($ 333,839)
Limited Partners, issued and
outstanding, 484,283 units 4,767,630 5,561,706
---------- ----------
Total Partners' capital $4,467,440 $5,227,867
---------- ----------
$4,896,174 $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 SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $1,053,681 $1,458,416
Interest income 6,991 11,819
Gain on sale of oil and gas
properties - 95,992
---------- ----------
$1,060,672 $1,566,227
COSTS AND EXPENSES:
Lease operating $ 364,417 $ 223,242
Production tax 55,963 86,546
Depreciation, depletion, and
amortization of oil and gas
properties 89,150 118,226
General and administrative
(Note 2) 135,568 137,466
---------- ----------
$ 645,098 $ 565,480
---------- ----------
NET INCOME $ 415,574 $1,000,747
========== ==========
GENERAL PARTNER - NET INCOME $ 48,882 $ 109,533
========== ==========
LIMITED PARTNERS - NET INCOME $ 366,692 $ 891,214
========== ==========
NET INCOME per unit $ 0.76 $ 1.84
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $4,192,688 $4,104,104
Interest income 28,618 28,321
Gain on sale of oil and gas
properties 3,277 96,301
---------- ----------
$4,224,583 $4,228,726
COSTS AND EXPENSES:
Lease operating $ 912,492 $ 778,877
Production tax 251,644 226,639
Depreciation, depletion, and
amortization of oil and gas
properties 252,927 377,304
General and administrative
(Note 2) 419,148 442,756
---------- ----------
$1,836,211 $1,825,576
---------- ----------
NET INCOME $2,388,372 $2,403,150
========== ==========
GENERAL PARTNER - NET INCOME $ 258,448 $ 271,440
========== ==========
LIMITED PARTNERS - NET INCOME $2,129,924 $2,131,710
========== ==========
NET INCOME per unit $ 4.40 $ 4.40
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,388,372 $2,403,150
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 252,927 377,304
Gain on sale of oil and gas
properties ( 3,277) ( 96,301)
(Increase) decrease in accounts
receivable - oil and gas sales 450,832 ( 279,615)
Increase in accounts receivable -
related party - ( 288)
Decrease in accounts payable ( 75,415) ( 34,004)
Decrease in gas imbalance payable ( 11,273) -
Decrease in accrued liability ( 10,552) -
---------- ----------
Net cash provided by operating
activities $2,991,614 $2,370,246
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 171,060) ($ 63,108)
Proceeds from sale of oil and
gas properties 3,277 60,623
---------- ----------
Net cash used by investing activities ($ 167,783) ($ 2,485)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($3,148,799) ($2,032,618)
---------- ----------
Net cash used by financing activities ($3,148,799) ($2,032,618)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 324,968) $ 335,143
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,070,734 723,978
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 745,766 $1,059,121
========== ==========
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
September 30, December 31,
2001 2000
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 299,398 $ 714,162
Accounts receivable:
Oil and gas sales 473,298 728,372
---------- ----------
Total current assets $ 772,696 $1,442,534
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,879,689 1,530,002
DEFERRED CHARGE 204,209 204,209
---------- ----------
$2,856,594 $3,176,745
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 66,575 $ 128,102
Gas imbalance payable 17,720 17,720
---------- ----------
Total current liabilities $ 84,295 $ 145,822
ACCRUED LIABILITY $ 87,878 $ 87,878
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 282,629) ($ 269,807)
Limited Partners, issued and
outstanding, 361,719 units 2,967,050 3,212,852
---------- ----------
Total Partners' capital $2,684,421 $2,943,045
---------- ----------
$2,856,594 $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 SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
-------- ----------
REVENUES:
Oil and gas sales $768,036 $ 993,491
Interest income 3,791 9,327
Gain on sale of oil and gas
properties - 248,695
-------- ----------
$771,827 $1,251,513
COSTS AND EXPENSES:
Lease operating $240,385 $ 152,996
Production tax 38,168 60,369
Depreciation, depletion, and
amortization of oil and gas
properties 41,566 60,150
General and administrative
(Note 2) 101,505 102,926
-------- ----------
$421,624 $ 376,441
-------- ----------
NET INCOME $350,203 $ 875,072
======== ==========
GENERAL PARTNER - NET INCOME $ 38,382 $ 45,694
======== ==========
LIMITED PARTNERS - NET INCOME $311,821 $ 829,378
======== ==========
NET INCOME per unit $ 0.86 $ 2.30
======== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $3,201,233 $2,859,162
Interest income 16,751 18,701
Gain on sale of oil and gas
properties - 249,921
---------- ----------
$3,217,984 $3,127,784
COSTS AND EXPENSES:
Lease operating $ 580,967 $ 528,145
Production tax 174,774 161,364
Depreciation, depletion, and
amortization of oil and gas
properties 143,145 196,773
General and administrative
(Note 2) 317,536 331,486
---------- ----------
$1,216,422 $1,217,768
---------- ----------
NET INCOME $2,001,562 $1,910,016
========== ==========
GENERAL PARTNER - NET INCOME $ 211,364 $ 102,437
========== ==========
LIMITED PARTNERS - NET INCOME $1,790,198 $1,807,579
========== ==========
NET INCOME per unit $ 4.95 $ 5.00
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,001,562 $1,910,016
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 143,145 196,773
Gain on sale of oil and gas
properties - ( 249,921)
(Increase) decrease in accounts
receivable - oil and gas sales 255,074 ( 195,423)
Decrease in accounts payable ( 61,527) ( 33,791)
---------- ----------
Net cash provided by operating
activities $2,338,254 $1,627,654
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 492,832) ($ 54,407)
Proceeds from sale of oil and
gas properties - 250,747
---------- ----------
Net cash provided (used) by investing
activities ($ 492,832) $ 196,340
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,260,186) ($1,305,248)
---------- ----------
Net cash used by financing activities ($2,260,186) ($1,305,248)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 414,764) $ 518,746
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 714,162 372,838
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 299,398 $ 891,584
========== ==========
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
September 30, December 31,
2001 2000
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 244,616 $ 412,356
Accounts receivable:
Oil and gas sales 202,134 350,577
---------- ----------
Total current assets $ 446,750 $ 762,933
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 875,612 878,906
DEFERRED CHARGE 130,095 130,095
---------- ----------
$1,452,457 $1,771,934
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 23,773 $ 21,688
Gas imbalance payable 15,380 15,380
---------- ----------
Total current liabilities $ 39,153 $ 37,068
ACCRUED LIABILITY $ 43,301 $ 54,138
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 120,659) ($ 105,478)
Limited Partners, issued and
outstanding, 154,621 units 1,490,662 1,786,206
---------- ----------
Total Partners' capital $1,370,003 $1,680,728
---------- ----------
$1,452,457 $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 SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
-------- --------
REVENUES:
Oil and gas sales $329,733 $453,932
Interest income 2,521 3,539
Gain on sale of oil and
gas properties 21,257 63,119
-------- --------
$353,511 $520,590
COSTS AND EXPENSES:
Lease operating $ 80,280 $ 61,261
Production tax 18,702 31,711
Depreciation, depletion, and
amortization of oil and gas
properties 23,270 29,172
General and administrative
(Note 2) 43,959 44,530
-------- --------
$166,211 $166,674
-------- --------
NET INCOME $187,300 $353,916
======== ========
GENERAL PARTNER - NET INCOME $ 20,573 $ 37,663
======== ========
LIMITED PARTNERS - NET INCOME $166,727 $316,253
======== ========
NET INCOME per unit $ 1.08 $ 2.04
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $1,446,754 $1,315,347
Interest income 10,274 8,409
Gain on sale of oil and
gas properties 21,996 68,179
---------- ----------
$1,479,024 $1,391,935
COSTS AND EXPENSES:
Lease operating $ 220,769 $ 220,670
Production tax 92,946 82,539
Depreciation, depletion, and
amortization of oil and gas
properties 74,607 102,356
General and administrative
(Note 2) 146,098 143,204
---------- ----------
$ 534,420 $ 548,769
---------- ----------
NET INCOME $ 944,604 $ 843,166
========== ==========
GENERAL PARTNER - NET INCOME $ 100,148 $ 92,688
========== ==========
LIMITED PARTNERS - NET INCOME $ 844,456 $ 750,478
========== ==========
NET INCOME per unit $ 5.46 $ 4.85
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 944,604 $843,166
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 74,607 102,356
Gain on sale of oil and gas
properties ( 21,996) ( 68,179)
(Increase) decrease in accounts
receivable - oil and gas sales 148,443 ( 78,128)
Increase in accounts receivable -
related party - ( 187)
Increase (decrease) in accounts
payable 2,085 ( 15,100)
Decrease in accrued liability ( 10,837) -
---------- --------
Net cash provided by operating
activities $1,136,906 $783,928
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 71,313) ($ 23,347)
Proceeds from sale of oil and
gas properties 21,996 45,669
---------- --------
Net cash provided (used) by
investing activities ($ 49,317) $ 22,322
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,255,329) ($678,908)
---------- --------
Net cash used by financing
activities ($1,255,329) ($678,908)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 167,740) $127,342
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 412,356 204,820
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 244,616 $332,162
========== ========
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
September 30, December 31,
2001 2000
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 483,074 $1,432,990
Accounts receivable:
Oil and gas sales 378,757 703,180
---------- ----------
Total current assets $ 861,831 $2,136,170
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,649,794 1,737,343
DEFERRED CHARGE 387,772 397,689
---------- ----------
$2,899,397 $4,271,202
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 67,898 $ 54,672
Gas imbalance payable 74,121 74,121
---------- ----------
Total current liabilities $ 142,019 $ 128,793
ACCRUED LIABILITY $ 161,617 $ 154,927
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 236,338) ($ 180,437)
Limited Partners, issued and
outstanding, 314,878 units 2,832,099 4,167,919
---------- ----------
Total Partners' capital $2,595,761 $3,987,482
---------- ----------
$2,899,397 $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 SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
-------- ----------
REVENUES:
Oil and gas sales $658,006 $ 874,480
Interest income 5,682 8,628
Gain on sale of oil and gas
properties 24,457 273,833
-------- ----------
$688,145 $1,156,941
COSTS AND EXPENSES:
Lease operating $267,466 $ 155,260
Production tax 41,766 70,292
Depreciation, depletion, and
amortization of oil and gas
properties 47,561 51,622
General and administrative
(Note 2) 88,360 89,590
-------- ----------
$445,153 $ 366,764
-------- ----------
NET INCOME $242,992 $ 790,177
======== ==========
GENERAL PARTNER - NET INCOME $ 28,012 $ 82,801
======== ==========
LIMITED PARTNERS - NET INCOME $214,980 $ 707,376
======== ==========
NET INCOME per unit $ 0.68 $ 2.24
======== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $3,099,117 $2,573,031
Interest income 28,518 20,686
Gain on sale of oil and gas
properties 32,619 280,809
---------- ----------
$3,160,254 $2,874,526
COSTS AND EXPENSES:
Lease operating $ 648,566 $ 522,479
Production tax 207,915 185,000
Depreciation, depletion, and
amortization of oil and gas
properties 141,449 188,290
General and administrative
(Note 2) 278,925 288,797
---------- ----------
$1,276,855 $1,184,566
---------- ----------
NET INCOME $1,883,399 $1,689,960
========== ==========
GENERAL PARTNER - NET INCOME $ 198,219 $ 183,874
========== ==========
LIMITED PARTNERS - NET INCOME $1,685,180 $1,506,086
========== ==========
NET INCOME per unit $ 5.35 $ 4.78
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,883,399 $1,689,960
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 141,449 188,290
Gain on sale of oil and gas
properties ( 32,619) ( 280,809)
(Increase) decrease in accounts
receivable - oil and gas sales 324,423 ( 161,219)
Increase in accounts receivable -
related party - ( 1,961)
Decrease in deferred charge 9,917 -
Increase (decrease) in accounts
payable 13,226 ( 21,693)
Increase in accrued liability 6,690 -
---------- ----------
Net cash provided by operating
activities $2,346,485 $1,412,568
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 53,900) ($ 4,762)
Proceeds from sale of oil and
gas properties 32,619 42,573
---------- ----------
Net cash provided (used) by investing
activities ($ 21,281) $ 37,811
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($3,275,120) ($1,355,615)
---------- ----------
Net cash used by financing activities ($3,275,120) ($1,355,615)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 949,916) $ 94,764
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,432,990 547,528
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 483,074 $ 642,292
========== ==========
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
September 30, December 31,
2001 2000
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 336,197 $ 511,025
Accounts receivable:
Oil and gas sales 286,181 541,215
---------- ----------
Total current assets $ 622,378 $1,052,240
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,537,115 1,652,204
DEFERRED CHARGE 204,138 204,138
---------- ----------
$2,363,631 $2,908,582
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 36,613 $ 29,489
Gas imbalance payable 22,545 22,545
---------- ----------
Total current liabilities $ 59,158 $ 52,034
ACCRUED LIABILITY $ 25,987 $ 35,904
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 149,713) ($ 133,047)
Limited Partners, issued and
outstanding, 228,821 units 2,428,199 2,953,691
---------- ----------
Total Partners' capital $2,278,486 $2,820,644
---------- ----------
$2,363,631 $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 SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
-------- --------
REVENUES:
Oil and gas sales $484,770 $823,961
Interest income 3,607 5,971
Gain on sale of oil and gas
properties - 149,218
-------- --------
$488,377 $979,150
COSTS AND EXPENSES:
Lease operating $132,377 $ 85,972
Production tax 35,337 59,685
Depreciation, depletion, and
amortization of oil and gas
properties 47,645 82,277
General and administrative
(Note 2) 64,579 65,448
-------- --------
$279,938 $293,382
-------- --------
NET INCOME $208,439 $685,768
======== ========
GENERAL PARTNER - NET INCOME $ 24,772 $ 75,385
======== ========
LIMITED PARTNERS - NET INCOME $183,667 $610,383
======== ========
NET INCOME per unit $ 0.80 $ 2.66
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ----------
REVENUES:
Oil and gas sales $2,175,380 $1,994,401
Interest income 15,437 15,544
Gain (loss) on sale of oil and
gas properties ( 999) 154,694
---------- ----------
$2,189,818 $2,164,639
COSTS AND EXPENSES:
Lease operating $ 349,267 $ 298,068
Production tax 160,903 130,784
Depreciation, depletion, and
amortization of oil and gas
properties 144,348 236,050
General and administrative
(Note 2) 207,571 210,667
---------- ----------
$ 862,089 $ 875,569
---------- ----------
NET INCOME $1,327,729 $1,289,070
========== ==========
GENERAL PARTNER - NET INCOME $ 144,221 $ 148,597
========== ==========
LIMITED PARTNERS - NET INCOME $1,183,508 $1,140,473
========== ==========
NET INCOME per unit $ 5.17 $ 4.98
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,327,729 $1,289,070
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 144,348 236,050
(Gain) loss on sale of oil and gas
properties 999 ( 154,694)
(Increase) decrease in accounts
receivable - oil and gas sales 255,034 ( 189,329)
Increase (decrease) in accounts
payable 7,124 ( 18,304)
Decrease in gas imbalance payable - ( 113,594)
Decrease in accrued liability ( 9,917) -
---------- ----------
Net cash provided by operating
activities $1,725,317 $1,049,199
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 30,258) ($ 12,770)
Proceeds from sale of oil and
gas properties - 159,139
---------- ----------
Net cash provided (used) by investing
activities ($ 30,258) $ 146,369
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,869,887) ($ 981,757)
---------- ----------
Net cash used by financing activities ($1,869,887) ($ 981,757)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 174,828) $ 213,811
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 511,025 450,833
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 336,197 $ 664,644
========== ==========
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
September 30, December 31,
2001 2000
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 356,429 $ 441,154
Accounts receivable:
Oil and gas sales 285,856 440,181
---------- ----------
Total current assets $ 642,285 $ 881,335
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,497,328 1,597,803
DEFERRED CHARGE 32,237 34,659
---------- ----------
$2,171,850 $2,513,797
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 25,438 $ 21,902
Gas imbalance payable 7,439 7,439
---------- ----------
Total current liabilities $ 32,877 $ 29,341
ACCRUED LIABILITY $ 12,341 $ 12,341
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 113,888) ($ 101,577)
Limited Partners, issued and
outstanding, 171,400 units 2,240,520 2,573,692
---------- ----------
Total Partners' capital $2,126,632 $2,472,115
---------- ----------
$2,171,850 $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 SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
-------- --------
REVENUES:
Oil and gas sales $501,038 $582,555
Interest income 3,637 4,306
Gain on sale of oil and
gas properties - 33,624
-------- --------
$504,675 $620,485
COSTS AND EXPENSES:
Lease operating $101,737 $ 49,261
Production tax 35,720 41,490
Depreciation, depletion, and
amortization of oil and gas
properties 54,544 55,619
General and administrative
(Note 2) 48,358 49,023
-------- --------
$240,359 $195,393
-------- --------
NET INCOME $264,316 $425,092
======== ========
GENERAL PARTNER - NET INCOME $ 30,977 $ 47,084
======== ========
LIMITED PARTNERS - NET INCOME $233,339 $378,008
======== ========
NET INCOME per unit $ 1.36 $ 2.20
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ----------
REVENUES:
Oil and gas sales $2,100,752 $1,658,278
Interest income 13,586 10,988
Gain (loss) on sale of oil and
gas properties ( 1,162) 51,336
---------- ----------
$2,113,176 $1,720,602
COSTS AND EXPENSES:
Lease operating $ 257,341 $ 192,158
Production tax 142,175 111,350
Depreciation, depletion, and
amortization of oil and gas
properties 168,457 179,439
General and administrative
(Note 2) 158,947 157,414
---------- ----------
$ 726,920 $ 640,361
---------- ----------
NET INCOME $1,386,256 $1,080,241
========== ==========
GENERAL PARTNER - NET INCOME $ 152,428 $ 123,075
========== ==========
LIMITED PARTNERS - NET INCOME $1,233,828 $ 957,166
========== ==========
NET INCOME per unit $ 7.20 $ 5.58
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,386,256 $1,080,241
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 168,457 179,439
(Gain) loss on sale of oil and
gas properties 1,162 ( 51,336)
(Increase) decrease in accounts
receivable - oil and gas sales 154,325 ( 113,807)
Decrease in deferred charge 2,422 -
Increase (decrease) in accounts
payable 3,536 ( 3,353)
---------- ----------
Net cash provided by operating
activities $1,716,158 $1,091,184
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 69,144) ($ 24,102)
Proceeds from sale of oil and
gas properties - 57,452
---------- ----------
Net cash provided (used) by
investing activities ($ 69,144) $ 33,350
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,731,739) ($ 971,057)
---------- ----------
Net cash used by financing
activities ($1,731,739) ($ 971,057)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 84,725) $ 153,477
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 441,154 280,098
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 356,429 $ 433,575
========== ==========
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
September 30, December 31,
2001 2000
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 826,313 $ 934,304
Accounts receivable:
Oil and gas sales 606,412 935,211
---------- ----------
Total current assets $1,432,725 $1,869,515
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,228,957 3,439,338
DEFERRED CHARGE 71,612 76,673
---------- ----------
$4,733,294 $5,385,526
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 54,137 $ 47,021
Gas imbalance payable 16,142 16,142
---------- ----------
Total current liabilities $ 70,279 $ 63,163
ACCRUED LIABILITY $ 31,272 $ 31,272
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 167,338) ($ 212,913)
Limited Partners, issued and
outstanding, 372,189 units 4,799,081 5,504,004
---------- ----------
Total Partners' capital $4,631,743 $5,291,091
---------- ----------
$4,733,294 $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 SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
REVENUES:
Oil and gas sales $1,061,074 $1,237,877
Interest income 7,986 9,322
Gain on sale of oil and
gas properties - 70,733
---------- ----------
$1,069,060 $1,317,932
COSTS AND EXPENSES:
Lease operating $ 216,342 $ 105,927
Production tax 75,811 88,131
Depreciation, depletion, and
amortization of oil and gas
properties 116,244 119,300
General and administrative
(Note 2) 104,154 105,629
---------- ----------
$ 512,551 $ 418,987
---------- ----------
NET INCOME $ 556,509 $ 898,945
========== ==========
GENERAL PARTNER - NET INCOME $ 65,314 $ 99,700
========== ==========
LIMITED PARTNERS - NET INCOME $ 491,195 $ 799,245
========== ==========
NET INCOME per unit $ 1.32 $ 2.15
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ----------
REVENUES:
Oil and gas sales $4,464,197 $3,521,240
Interest income 29,403 24,457
Gain (loss) on sale of oil and
gas properties ( 2,735) 107,819
---------- ----------
$4,490,865 $3,653,516
COSTS AND EXPENSES:
Lease operating $ 549,459 $ 412,470
Production tax 303,167 238,578
Depreciation, depletion, and
amortization of oil and gas
properties 359,077 386,603
General and administrative
(Note 2) 325,325 339,964
---------- ----------
$1,537,028 $1,377,615
---------- ----------
NET INCOME $2,953,837 $2,275,901
========== ==========
GENERAL PARTNER - NET INCOME $ 324,760 $ 259,939
========== ==========
LIMITED PARTNERS - NET INCOME $2,629,077 $2,015,962
========== ==========
NET INCOME per unit $ 7.06 $ 5.42
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,953,837 $2,275,901
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 359,077 386,603
(Gain) loss on sale of oil and gas
properties 2,735 ( 107,819)
(Increase) decrease in accounts
receivable - oil and gas sales 328,799 ( 244,646)
Decrease in deferred charge 5,061 -
Increase (decrease) in accounts
payable 7,116 ( 7,434)
---------- ----------
Net cash provided by operating
activities $3,656,625 $2,302,605
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 151,431) ($ 50,404)
Proceeds from sale of oil and
gas properties - 121,216
---------- ----------
Net cash provided (used) by
investing activities ($ 151,431) $ 70,812
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($3,613,185) ($2,087,904)
---------- ----------
Net cash used by financing
activities ($3,613,185) ($2,087,904)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 107,991) $ 285,513
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 934,304 633,816
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 826,313 $ 919,329
========== ==========
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
September 30, December 31,
2001 2000
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 175,906 $ 229,651
Accounts receivable:
Oil and gas sales 143,745 223,004
---------- ----------
Total current assets $ 319,651 $ 452,655
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 761,008 807,844
DEFERRED CHARGE 16,599 17,788
---------- ----------
$1,097,258 $1,278,287
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 13,237 $ 11,405
Gas imbalance payable 3,993 3,993
---------- ----------
Total current liabilities $ 17,230 $ 15,398
ACCRUED LIABILITY $ 6,007 $ 6,007
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 62,605) ($ 54,632)
Limited Partners, issued and
outstanding, 91,711 units 1,136,626 1,311,514
---------- ----------
Total Partners' capital $1,074,021 $1,256,882
---------- ----------
$1,097,258 $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 SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
-------- --------
REVENUES:
Oil and gas sales $251,762 $295,563
Interest income 1,783 2,217
Gain on sale of oil and
gas properties - 16,544
-------- --------
$253,545 $314,324
COSTS AND EXPENSES:
Lease operating $ 53,145 $ 25,934
Production tax 18,093 21,051
Depreciation, depletion, and
amortization of oil and gas
properties 27,196 28,162
General and administrative
(Note 2) 26,208 26,549
-------- --------
$124,642 $101,696
-------- --------
NET INCOME $128,903 $212,628
======== ========
GENERAL PARTNER - NET INCOME $ 15,160 $ 11,647
======== ========
LIMITED PARTNERS - NET INCOME $113,743 $200,981
======== ========
NET INCOME per unit $ 1.24 $ 2.20
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
------------ --------
REVENUES:
Oil and gas sales $1,062,850 $829,411
Interest income 6,688 5,698
Gain (loss) on sale of oil and
gas properties ( 766) 25,142
---------- --------
$1,068,772 $860,251
COSTS AND EXPENSES:
Lease operating $ 133,615 $100,340
Production tax 72,664 57,101
Depreciation, depletion, and
amortization of oil and gas
properties 84,038 90,576
General and administrative
(Note 2) 92,892 84,909
---------- --------
$ 383,209 $332,926
---------- --------
NET INCOME $ 685,563 $527,325
========== ========
GENERAL PARTNER - NET INCOME $ 75,451 $ 29,704
========== ========
LIMITED PARTNERS - NET INCOME $ 610,112 $497,621
========== ========
NET INCOME per unit $ 6.65 $ 5.43
========== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(Unaudited)
2001 2000
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $685,563 $527,325
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 84,038 90,576
(Gain) loss on sale of oil and gas
properties 766 ( 25,142)
(Increase) decrease in accounts
receivable - oil and gas sales 79,259 ( 58,891)
Decrease in deferred charge 1,189 -
Increase (decrease) in accounts
payable 1,832 ( 1,964)
-------- --------
Net cash provided by operating
activities $852,647 $531,904
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 37,968) ($ 11,658)
Proceeds from sale of oil and
gas properties - 28,502
-------- --------
Net cash provided (used) by investing
activities ($ 37,968) $ 16,844
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($868,424) ($466,536)
-------- --------
Net cash used by financing activities ($868,424) ($466,536)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 53,745) $ 82,212
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 229,651 147,018
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $175,906 $229,230
======== ========
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
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 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 $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 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
----------- ------------------- ---------------
II-A $8,125 $127,443
II-B 6,315 95,190
II-C 3,270 40,689
II-D 5,497 82,863
II-E 4,363 60,216
II-F 3,253 45,105
II-G 6,210 97,944
II-H 2,073 24,135
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
----------- ------------------- ---------------
II-A $36,819 $382,329
II-B 31,966 285,570
II-C 24,031 122,067
II-D 30,336 248,589
II-E 26,923 180,648
II-F 23,632 135,315
II-G 31,493 293,832
II-H 20,487 72,405
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 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
distribution. During the nine months ended September 30, 2001, capital
expenditures for the II-A, II-B, and II-C Partnerships totaled $171,060,
$492,832, and $71,313, 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
approximately 3.9%, 16.2%, and 2.4%, respectively, in these wells.
-38-
The II-B and II-E Partnerships' Statements of Cash Flows for the nine
months ended September 30, 2000 include proceeds from the sale of certain
oil and gas properties during the third quarter of 2000. These proceeds
were included in these Partnerships' cash distributions paid in November
2000.
Pursuant to the terms of the Partnerships' partnership agreements (the
"Partnership Agreements"), the Partnerships are scheduled to terminate on
December 31, 2001. 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 currently intends to extend
the terms of the Partnerships for their first two year extension period.
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 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.
-39-
II-A 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 $1,053,681 $1,458,416
Oil and gas production expenses $ 420,380 $ 309,788
Barrels produced 16,056 18,650
Mcf produced 229,824 242,776
Average price/Bbl $ 24.82 $ 27.44
Average price/Mcf $ 2.85 $ 3.90
As shown in the table above, total oil and gas sales decreased $404,735
(27.8%) for the three months ended September 30, 2001 as compared to the
three months ended September 30, 2000. Of this decrease, approximately (i)
$42,000 and $241,000, respectively, were related to decreases in the
average prices of oil and gas sold and (ii) $71,000 and $51,000,
respectively, were related to decreases in volumes of oil and gas sold.
Volumes of oil and gas sold decreased 2,594 barrels and 12,952 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 normal declines in production. Average oil and
gas prices decreased to $24.82 per barrel and $2.85 per Mcf, respectively,
for the three months ended September 30, 2001 from $27.44 per barrel and
$3.90 per Mcf, respectively, for the three months ended September 30,
2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $110,592 (35.7%) for the three months ended
September 30, 2001 as compared to the three months ended September 30,
2000. This increase was primarily due to (i) workover expenses incurred on
several wells during the three months ended September 30, 2001 and (ii)
positive prior period lease operating expense adjustments made by the
operators on several other wells during the three months ended September
30, 2001. These increases were partially 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 39.9% for the
three months ended September 30, 2001 from 21.2% 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 and the dollar
increase in oil and gas production expenses.
-40-
Depreciation, depletion, and amortization of oil and gas properties
decreased $29,076 (24.6%) 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 and upward
revisions in the estimates of remaining gas reserves at December 31, 2000.
As a percentage of oil and gas sales, this expense increased to 8.5% for
the three months ended September 30, 2001 from 8.1% for the three months
ended September 30, 2000.
General and administrative expenses decreased $1,898 (1.4%) 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 12.9% for the three months ended September 30, 2001 from 9.4%
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 $4,192,688 $4,104,104
Oil and gas production expenses $1,164,136 $1,005,516
Barrels produced 53,356 60,076
Mcf produced 605,205 771,454
Average price/Bbl $ 25.44 $ 27.21
Average price/Mcf $ 4.68 $ 3.20
As shown in the table above, total oil and gas sales increased $88,584
(2.2%) for the nine months ended September 30, 2001 as compared to the
nine months ended September 30, 2000. Of this increase, approximately
$898,000 was related to an increase in the average price of gas sold. This
increase was partially offset by decreases of approximately $183,000 and
$532,000, respectively, related to decreases in volumes of oil and gas
sold and approximately $94,000 related to a decrease in the average price
of oil sold. Volumes of oil and gas sold decreased 6,720 barrels and
166,249 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 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
nine months ended September 30, 2001 and (ii) normal declines in
production. Average oil prices decreased to $25.44 per barrel for the nine
months
-41-
ended September 30, 2001 from $27.21 per barrel for the nine months ended
September 30, 2000. Average gas prices increased to $4.68 per Mcf for the
nine months ended September 30, 2001 from $3.20 per Mcf for the nine
months ended September 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $158,620 (15.8%) 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, (ii)
positive prior period lease operating expense adjustments made by the
operators on several other wells during the nine months ended September
30, 2001, and (iii) an increase in production taxes associated with the
increase in oil and gas sales. These increases were partially offset by 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 increased to 27.8% for the nine months ended September 30, 2001
from 24.5% for the nine months ended September 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 $124,377 (33.0%) 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 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 6.0% for
the nine months ended September 30, 2001 from 9.2% 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 decreased $23,608 (5.3%) 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 10.0% for the nine months ended September 30, 2001 from 10.8%
for the nine months ended September 30, 2000.
The Limited Partners have received cash distributions through September
30, 2001 totaling $53,687,357 or 110.86% of the Limited Partners' capital
contributions.
-42-
II-B 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 $768,036 $993,491
Oil and gas production expenses $278,553 $213,365
Barrels produced 10,958 12,436
Mcf produced 133,773 169,234
Average price/Bbl $ 25.59 $ 27.16
Average price/Mcf $ 3.65 $ 3.87
As shown in the table above, total oil and gas sales decreased $225,455
(22.7%) for the three months ended September 30, 2001 as compared to the
three months ended September 30, 2000. Of this decrease, approximately
$40,000 and $137,000, respectively, were related to decreases in volumes
of oil and gas sold and approximately $31,000 was related to a decrease in
the average price of gas sold. Volumes of oil and gas sold decreased 1,478
barrels and 35,461 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 (i) the sale of
several wells during mid 2000 and (ii) normal declines in production.
These decreases were partially offset by the successful completion of
three new wells during early 2001. The decrease in volumes of gas sold was
primarily due to (i) negative prior period volume adjustments made on
several wells during the three months ended September 30, 2001 and (ii)
normal declines in production. Average oil and gas prices decreased to
$25.59 per barrel and $3.65 per Mcf, respectively, for the three months
ended September 30, 2001 from $27.16 per barrel and $3.87 per Mcf,
respectively, for the three months ended September 30, 2000.
As discussed in Liquidity and Capital Resources above, the II-B
Partnership sold certain oil and gas properties during the three months
ended September 30, 2000 and recognized a $248,695 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) increased $65,188 (30.6%) for the three months ended
September 30, 2001 as compared to the three months ended September 30,
2000. This increase was primarily due to (i) positive prior period lease
operating expense adjustments made by the operators on several wells
during the three months ended September 30, 2001 and (ii)
-43-
workover expenses incurred on several wells during the three months ended
September 30, 2001. These increases were partially offset by (i) a
decrease in lease operating expenses associated with the decreases in
volumes of oil and gas sold and (ii) 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 36.3% for the three months
ended September 30, 2001 from 21.5% for the three months ended September
30, 2000. This percentage increase was primarily due to the dollar
increase in oil and gas production expenses and the decreases in the
average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $18,584 (30.9%) 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 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 5.4% for
the three months ended September 30, 2001 from 6.1% for the three months
ended September 30, 2000. This percentage decrease was primarily due to
the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses decreased $1,421 (1.4%) 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 13.2% for the three months ended September 30, 2001 from
10.4% 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 $3,201,233 $2,859,162
Oil and gas production expenses $ 755,741 $ 689,509
Barrels produced 40,089 41,378
Mcf produced 446,563 549,461
Average price/Bbl $ 25.72 $ 27.17
Average price/Mcf $ 4.86 $ 3.16
As shown in the table above, total oil and gas sales increased $342,071
(12.0%) for the nine months ended September 30, 2001 as compared to the
nine months ended September 30, 2000. Of this increase, approximately
$760,000 was related to an increase in the average price of
-44-
gas sold. This increase was partially offset by decreases of approximately
$35,000 and $325,000, respectively, related to decreases in volumes of oil
and gas sold and approximately $58,000 related to a decrease in the
average price of oil sold. Volumes of oil and gas sold decreased 1,289
barrels and 102,898 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) the sale of
several wells during mid 2000 and (ii) normal declines in production.
These decreases were partially offset by (i) the successful completion of
three new wells during early 2001 and (ii) a positive prior period volume
adjustment made by the operator on one significant well during the nine
months ended September 30, 2001. The decrease in volumes of gas sold was
primarily due to (i) normal declines in production, (ii) negative prior
period volume adjustments made on several wells during the nine months
ended September 30, 2001, and (iii) the shutting-in of two significant
wells in order to perform repairs and maintenance during the nine months
ended September 30, 2001. Average oil prices decreased to $25.72 per
barrel for the nine months ended September 30, 2001 from $27.17 per barrel
for the nine months ended September 30, 2000. Average gas prices increased
to $4.86 per Mcf for the nine months ended September 30, 2001 from $3.16
per Mcf for the nine months ended September 30, 2000.
As discussed in Liquidity and Capital Resources above, the II-B
Partnership sold certain oil and gas properties during the nine months
ended September 30, 2000 and recognized a $249,921 gain on such sales. No
such sales occurred during the nine months ended September 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $66,232 (9.6%) 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) positive prior period lease
operating expense adjustments made by the operators on several wells
during the nine months ended September 30, 2001, (ii) workover expenses
incurred on several wells during the nine months ended September 30, 2001,
and (iii) an increase in production taxes associated with the increase in
oil and gas sales. These increases were partially offset by (i) a decrease
in lease operating expenses associated with the decrease in volumes of oil
and gas sold, (ii) the sale of several wells during mid 2000, and (iii) a
decrease in lease operating environmental expenses on a waterflood unit
during 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 23.6% for the nine months ended September 30,
2001 from 24.1% for the nine months ended September 30, 2000.
-45-
Depreciation, depletion, and amortization of oil and gas properties
decreased $53,628 (27.3%) 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 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 4.5% for
the nine months ended September 30, 2001 from 6.9% for the nine months
ended September 30, 2000. This percentage decrease was primarily due the
dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses decreased $13,950 (4.2%) 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 9.9% for the nine months ended September 30, 2001 from 11.6%
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 $39,041,916 or 107.93% of the Limited Partners' capital
contributions.
II-C 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 $329,733 $453,932
Oil and gas production expenses $ 98,982 $ 92,972
Barrels produced 3,401 3,919
Mcf produced 73,930 85,201
Average price/Bbl $ 25.73 $ 28.81
Average price/Mcf $ 3.28 $ 4.00
As shown in the table above, total oil and gas sales decreased $124,199
(27.4%) for the three months ended September 30, 2001 as compared to the
three months ended September 30, 2000. Of this decrease, approximately
$54,000 was related to a decrease in the average price of gas sold and
approximately $15,000 and $45,000, respectively, were related to decreases
in volumes of oil and gas sold. Volumes of oil and gas sold decreased 518
barrels and 11,271 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
-46-
to (i) the sale of several wells during mid 2000 and (ii) normal declines
in production. The decrease in volumes of gas sold was primarily due to
(i) negative prior period volume adjustments made on two significant wells
during the three months ended September 30, 2001 and (ii) normal declines
in production. These decreases were partially offset by a negative prior
period volume adjustment made by the operator on another significant well
during the three months ended September 30, 2000. Average oil and gas
prices decreased to $25.73 per barrel and $3.28 per Mcf, respectively, for
the three months ended September 30, 2001 from $28.81 per barrel and $4.00
per Mcf, respectively, for the three months ended September 30, 2000.
The II-C Partnership sold certain oil and gas properties during the three
months ended September 30, 2001 and recognized a $21,257 gain on such
sales. Sales of oil and gas properties during the three months ended
September 30, 2000 resulted in the II-C Partnership recognizing similar
gains totaling $63,119.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $6,010 (6.5%) 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, these expenses increased to
30.0% for the three months ended September 30, 2001 from 20.5% 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 $5,902 (20.2%) 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 7.1% for the
three months ended September 30, 2001 from 6.4% 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 $571 (1.3%) 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 13.3% for the three months ended September 30, 2001 from 9.8%
for the three months ended September 30, 2000. This percentage increase
was primarily due to the decrease in oil and gas sales.
-47-
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 $1,446,754 $1,315,347
Oil and gas production expenses $ 313,715 $ 303,209
Barrels produced 10,944 12,808
Mcf produced 236,794 304,601
Average price/Bbl $ 25.78 $ 27.36
Average price/Mcf $ 4.92 $ 3.17
As shown in the table above, total oil and gas sales increased $131,407
(10.0%) for the nine months ended September 30, 2001 as compared to the
nine months ended September 30, 2000. Of this increase, approximately
$414,000 was related to an increase in the average price of gas sold. This
increase was partially offset by decreases of approximately $51,000 and
$215,000, respectively, related to decreases in volumes of oil and gas
sold and approximately $17,000 related to a decrease in the average price
of oil sold. Volumes of oil and gas sold decreased 1,864 barrels and
67,807 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) the sale of several wells
during mid 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 nine months ended September
30, 2001, (ii) a positive prior period volume adjustment made by the
operator on another significant well during the nine months ended
September 30, 2000, and (iii) normal declines in production. Average oil
prices decreased to $25.78 per barrel for the nine months ended September
30, 2001 from $27.36 per barrel for the nine months ended September 30,
2000. Average gas prices increased to $4.92 per Mcf for the nine months
ended September 30, 2001 from $3.17 per Mcf for the nine months ended
September 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $10,506 (3.5%) 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
21.7% for the nine months ended September 30, 2001 from 23.1% for the nine
months ended September 30, 2000.
-48-
Depreciation, depletion, and amortization of oil and gas properties
decreased $27,749 (27.1%) 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 5.2% for the
nine months ended September 30, 2001 from 7.8% 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 $2,894 (2.0%) 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
decreased to 10.1% for the nine months ended September 30, 2001 from 10.9%
for the nine months ended September 30, 2000.
The Limited Partners have received cash distributions through September
30, 2001 totaling $17,943,686 or 116.05% of the Limited Partners' capital
contributions.
II-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 $658,006 $874,480
Oil and gas production expenses $309,232 $225,552
Barrels produced 3,920 9,279
Mcf produced 183,262 153,609
Average price/Bbl $ 25.25 $ 28.89
Average price/Mcf $ 3.05 $ 3.95
As shown in the table above, total oil and gas sales decreased $216,474
(24.8%) for the three months ended September 30, 2001 as compared to the
three months ended September 30, 2000. Of this decrease, approximately
$164,000 was related to a decrease in the average price of gas sold and
approximately $155,000 was related to a decrease in volumes of oil sold.
These decreases were partially offset by an increase of approximately
$117,000 related to an increase in volumes of gas sold. Volumes of oil
sold decreased 5,359 barrels, while volumes of gas sold increased 29,653
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) the sale of several wells during 2000, (ii) a
positive prior period volume adjustment made by the
-49-
purchaser on one significant well during the three months ended September
30, 2000, and (iii) the shutting-in of another significant well in order
to perform repairs during the three months ended September 30, 2001. The
increase in volumes of gas sold was primarily due to (i) negative prior
period volume adjustments on two significant wells during the three months
ended September 30, 2000, (ii) the II-D Partnership receiving an increased
percentage of sales on another significant well during the three months
ended September 30, 2001 due to gas balancing, and (iii) the successful
completion of a new well during late 2000. These increases were partially
offset by (i) the shutting-in of one significant well in order to perform
repairs during the three months ended September 30, 2001 and (ii) normal
declines in production. 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 an increase in
volumes of gas produced for the II-D Partnership. Average oil and gas
prices decreased to $25.25 per barrel and $3.05 per Mcf, respectively, for
the three months ended September 30, 2001 from $28.89 per barrel and $3.95
per Mcf, respectively, for the three months ended September 30, 2000.
The II-D Partnership sold certain oil and gas properties during the three
months ended September 30, 2000 and recognized a $273,833 gain on such
sales. Sales of oil and gas properties during the three months ended
September 30, 2001 resulted in the II-D Partnership recognizing similar
gains totaling $24,457.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $83,680 (37.1%) for the three months ended
September 30, 2001 as compared to the three months ended September 30,
2000. This increase was primarily due to (i) workover expenses incurred on
several wells during the three months ended September 30, 2001 and (ii) an
increase in repair and maintenance expenses incurred on one significant
well during the three months ended September 30, 2001 as compared to the
three months ended September 30, 2000. These increases were partially
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 47.0% for the three months ended September 30, 2001 from
25.8% for the three months ended September 30, 2000. This percentage
increase was primarily due to the dollar increase in oil and gas
production expenses and the decreases in the average prices of oil and gas
sold.
-50-
Depreciation, depletion, and amortization of oil and gas properties
decreased $4,061 (7.9%) 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 7.2% for the three months
ended September 30, 2001 from 5.9% 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 $1,230 (1.4%) 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 13.4% for the three months ended September 30, 2001 from
10.2% 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 $3,099,117 $2,573,031
Oil and gas production expenses $ 856,481 $ 707,479
Barrels produced 11,707 25,838
Mcf produced 544,751 608,310
Average price/Bbl $ 25.32 $ 27.33
Average price/Mcf $ 5.14 $ 3.07
As shown in the table above, total oil and gas sales increased $526,086
(20.4%) for the nine months ended September 30, 2001 as compared to the
nine months ended September 30, 2000. Of this increase, approximately
$1,131,000 was related to an increase in the average price of gas sold.
This increase was partially offset by decreases of approximately $386,000
and $195,000, respectively, related to decreases in volumes of oil and gas
sold. Volumes of oil and gas sold decreased 14,131 barrels and 63,559 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) the sale of several wells during 2000 and
(ii) the shutting-in of one significant well in order to perform repairs
during the nine months ended September 30, 2001. The decrease in volumes
of gas sold was primarily due to (i) the shutting-in of two significant
wells in order to perform repairs during the nine months ended September
30, 2001, (ii) a negative gas balancing adjustment on another significant
well during the nine months ended September 30,
-51-
2001, and (iii) normal declines in production. These decreases were
partially offset by (i) negative prior period volume adjustments on two
significant wells during the nine months ended September 30, 2000, (ii)
the successful completion of a new well during late 2000, and (iii) the
II-D Partnership receiving an increased percentage of sales on another
significant well during the nine months ended September 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 an increase in volumes of gas produced
for the II-D Partnership. Average oil prices decreased to $25.32 per
barrel for the nine months ended September 30, 2001 from $27.33 per barrel
for the nine months ended September 30, 2000. Average gas prices increased
to $5.14 per Mcf for the nine months ended September 30, 2001 from $3.07
per Mcf for the nine months ended September 30, 2000.
The II-D Partnership sold certain oil and gas properties during the nine
months ended September 30, 2000 and recognized a $280,809 gain on such
sales. Sales of oil and gas properties during the nine months ended
September 30, 2001 resulted in the II-D Partnership recognizing similar
gains totaling $32,619.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $149,002 (21.1%) 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. 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 nine months ended September 30, 2000 and (ii)
a negative prior period lease operating expense adjustment made by the
operator on another significant well during the nine months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 27.6% for the nine months ended September 30, 2001 from 27.5%
for the nine months ended September 30, 2000.
Depreciation, depletion, and amortization of oil and gas properties
decreased $46,841 (24.9%) 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 4.6% for the
nine months ended September 30, 2001 from 7.3% for the nine months ended
September 30, 2000. This percentage decrease was primarily due to the
increase in the average price of gas sold.
-52-
General and administrative expenses decreased $9,872 (3.4%) 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
decreased to 9.0% for the nine months ended September 30, 2001 from 11.2%
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 $36,885,903 or 117.14% of Limited Partners' capital
contributions.
II-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 $484,770 $823,961
Oil and gas production expenses $167,714 $145,657
Barrels produced 5,508 7,102
Mcf produced 122,319 163,083
Average price/Bbl $ 24.39 $ 29.17
Average price/Mcf $ 2.86 $ 3.78
As shown in the table above, total oil and gas sales decreased $339,191
(41.2%) for the three months ended September 30, 2001 as compared to the
three months ended September 30, 2000. Of this decrease, approximately
$46,000 and $154,000, respectively, were related to decreases in volumes
of oil and gas sold and approximately $112,000 was related to a decrease
in the average price of gas sold. Volumes of oil and gas sold decreased
1,594 barrels and 40,764 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 (i) the
sale of one significant well during mid 2000 and (ii) normal declines in
production. These decreases were partially offset by a positive prior
period volume adjustment made by the purchaser on one significant well
during the three months ended September 30, 2001. 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 two
significant wells during the three months ended September 30, 2001 due to
gas balancing. As of the date of this Quarterly Report, management expects
the gas balancing adjustments to continue for the foreseeable future,
thereby continuing to contribute to a decrease in volumes of gas produced
for the II-E Partnership. Average oil and gas prices decreased to $24.39
per barrel and $2.86 per Mcf, respectively, for the three
-53-
months ended September 30, 2001 from $29.17 per barrel and $3.78 per Mcf,
respectively, for the three months ended September 30, 2000.
As discussed in Liquidity and Capital Resources above, the II-E
Partnership sold certain oil and gas properties during the three months
ended September 30, 2000 and recognized a $149,218 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) increased $22,057 (15.1%) 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 partially offset by (i) a decrease in production taxes
associated with the decrease in oil and gas sales and (ii) a negative
prior period lease operating expense adjustment made by the operator on
one significant well during the three months ended September 30, 2001. As
a percentage of oil and gas sales, these expenses increased to 34.6% for
the three months ended September 30, 2001 from 17.7% 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 and the dollar
increase in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
decreased $34,632 (42.1%) 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 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
9.8% for the three months ended September 30, 2001 from 10.0% for the
three months ended September 30, 2000.
General and administrative expenses decreased $869 (1.3%) 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 13.3% for the three months ended September 30, 2001 from 7.9%
for the three months ended September 30, 2000. This percentage increase
was primarily due to the decrease in oil and gas sales.
-54-
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 $2,175,380 $1,994,401
Oil and gas production expenses $ 510,170 $ 428,852
Barrels produced 17,673 19,625
Mcf produced 364,663 472,376
Average price/Bbl $ 26.38 $ 29.07
Average price/Mcf $ 4.69 $ 3.01
As shown in the table above, total oil and gas sales increased $180,979
(9.1%) for the nine months ended September 30, 2001 as compared to the
nine months ended September 30, 2000. Of this increase, approximately
$610,000 was related to an increase in the average price of gas sold. This
increase was partially offset by decreases of approximately $57,000 and
$325,000, respectively, related to decreases in volumes of oil and gas
sold and approximately $47,000 related to a decrease in the average price
of oil sold. Volumes of oil and gas sold decreased 1,952 barrels and
107,713 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) the sale of one significant
well during mid 2000 and (ii) normal declines in production. These
decreases were partially offset by (i) a positive prior period volume
adjustment made by the purchaser on one significant well during the nine
months ended September 30, 2001 and (ii) a negative prior period volume
adjustment made by the operator on another significant well during the
nine months ended September 30, 2000. The decrease in volumes of gas sold
was primarily due to (i) normal declines in production, (ii) the II-E
Partnership receiving a reduced percentage of sales on two significant
wells during the nine months ended September 30, 2001 due to gas
balancing, and (iii) a positive prior period volume adjustment made by the
purchaser on another significant well during the nine months ended
September 30, 2000. As of the date of this Quarterly Report, management
expects the gas balancing adjustments to continue for the foreseeable
future, thereby continuing to contribute to a decrease in volumes of gas
produced for the II-E Partnership. Average oil prices decreased to $26.38
per barrel for the nine months ended September 30, 2001 from $29.07 per
barrel for the nine months ended September 30, 2000. Average gas prices
increased to $4.69 per Mcf for the nine months ended September 30, 2001
from $3.01 per Mcf for the nine months ended September 30, 2000.
-55-
As discussed in Liquidity and Capital Resources above, the II-E
Partnership sold certain oil and gas properties during the nine months
ended September 30, 2000 and recognized a $154,694 gain on such sales. No
such sales occurred during the nine months ended September 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $81,318 (19.0%) 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) an increase in production
taxes associated with the increase in oil and gas sales and (ii) workover
expenses incurred on several wells during the nine months ended September
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 nine months ended September 30, 2000 and (ii)
a negative prior period lease operating expense adjustment made by the
operator on another significant well during the nine months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 23.5% for the nine months ended September 30, 2001 from 21.5%
for the nine months ended September 30, 2000.
Depreciation, depletion, and amortization of oil and gas properties
decreased $91,702 (38.8%) 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 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
6.6% for the nine months ended September 30, 2001 from 11.8% 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 decreased $3,096 (1.5%) 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 9.5% for the nine months ended September 30, 2001 from 10.6%
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 $26,485,574 or 115.75% of Limited Partners' capital
contributions.
-56-
II-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 $501,038 $582,555
Oil and gas production expenses $137,457 $ 90,751
Barrels produced 8,282 5,898
Mcf produced 107,646 118,397
Average price/Bbl $ 23.54 $ 28.47
Average price/Mcf $ 2.84 $ 3.50
As shown in the table above, total oil and gas sales decreased $81,517
(14.0%) for the three months ended September 30, 2001 as compared to the
three months ended September 30, 2000. Of this decrease, approximately
$41,000 and $71,000, respectively, were related to decreases in the
average prices of oil and gas sold and approximately $38,000 was related
to a decrease in volumes of gas sold. These decreases were partially
offset by an increase of approximately $68,000 related to an increase in
volumes of oil sold. Volumes of oil sold increased 2,384 barrels, while
volumes of gas sold decreased 10,751 Mcf for the three months ended
September 30, 2001 as compared to the three months ended September 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 September 30, 2001. Average oil and gas
prices decreased to $23.54 per barrel and $2.84 per Mcf, respectively, for
the three months ended September 30, 2001 from $28.47 per barrel and $3.50
per Mcf, respectively, for the three months ended September 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $46,706 (51.5%) for the three months ended
September 30, 2001 as compared to the three months ended September 30,
2000. This increase was primarily due to (i) workover expenses incurred on
several wells during the three months ended September 30, 2001 and (ii) an
ad valorem tax refund received on one significant well during the three
months ended September 30, 2000. As a percentage of oil and gas sales,
these expenses increased to 27.4% for the three months ended September 30,
2001 from 15.6% for the three months ended September 30, 2000. This
percentage increase was primarily due to the dollar increase in oil and
gas production expenses.
-57-
Depreciation, depletion, and amortization of oil and gas properties
decreased $1,075 (1.9%) for the three months ended September 30, 2001 as
compared to the three months ended September 30, 2000. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 2000. This decrease was partially offset by
the increase in volumes of oil sold. As a percentage of oil and gas sales,
this expense increased to 10.9% for the three months ended September 30,
2001 from 9.5% 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 $665 (1.4%) 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 9.7% for the three months ended September 30, 2001 from 8.4%
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 $2,100,752 $1,658,278
Oil and gas production expenses $ 399,516 $ 303,508
Barrels produced 23,361 20,332
Mcf produced 345,767 374,152
Average price/Bbl $ 25.82 $ 27.89
Average price/Mcf $ 4.33 $ 2.92
As shown in the table above, total oil and gas sales increased $442,474
(26.7%) for the nine months ended September 30, 2001 as compared to the
nine months ended September 30, 2000. Of this increase, approximately (i)
$489,000 was related to an increase in the average price of gas sold and
(ii) $84,000 was related to an increase in volumes of oil sold. These
increases were partially offset by decreases of approximately (i) $83,000
related to a decrease in volumes of gas sold and (ii) $48,000 related to a
decrease in the average price of oil sold. Volumes of oil sold increased
3,029 barrels, while volumes of gas sold decreased 28,385 Mcf for the nine
months ended September 30, 2001 as compared to the nine months ended
September 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 nine months ended September 30, 2001. Average
oil prices decreased to $25.82 per barrel for the nine months ended
September 30,
-58-
2001 from $27.89 per barrel for the nine months ended September 30, 2000.
Average gas prices increased to $4.33 per Mcf for the nine months ended
September 30, 2001 from $2.92 per Mcf for the nine months ended September
30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $96,008 (31.6%) 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) an increase in production
taxes associated with the increase in oil and gas sales and (ii) workover
expenses incurred on several wells during the nine months ended September
30, 2001. As a percentage of oil and gas sales, these expenses increased
to 19.0% for the nine months ended September 30, 2001 from 18.3% for the
nine months ended September 30, 2000.
Depreciation, depletion, and amortization of oil and gas properties
decreased $10,982 (6.1%) 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 decreased to 8.0% for the nine months
ended September 30, 2001 from 10.8% 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 increased $1,533 (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
decreased to 7.6% for the nine months ended September 30, 2001 from 9.5%
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 $20,607,051 or 120.23% of Limited Partners' capital
contributions.
-59-
II-G 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 $1,061,074 $1,237,877
Oil and gas production expenses $ 292,153 $ 194,058
Barrels produced 17,351 12,368
Mcf produced 229,608 252,641
Average price/Bbl $ 23.53 $ 28.46
Average price/Mcf $ 2.84 $ 3.51
As shown in the table above, total oil and gas sales decreased $176,803
(14.3%) for the three months ended September 30, 2001 as compared to the
three months ended September 30, 2000. Of this decrease, approximately
$86,000 and $152,000, respectively, were related to decreases in the
average prices of oil and gas sold and approximately $81,000 was related
to a decrease in volumes of gas sold. These decreases were partially
offset by an increase of approximately $142,000 related to an increase in
volumes of oil sold. Volumes of oil sold increased 4,983 barrels, while
volumes of gas sold decreased 23,033 Mcf for the three months ended
September 30, 2001 as compared to the three months ended September 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 September 30, 2001. Average oil and gas
prices decreased to $23.53 per barrel and $2.84 per Mcf, respectively, for
the three months ended September 30, 2001 from $28.46 per barrel and $3.51
per Mcf, respectively, for the three months ended September 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $98,095 (50.5%) for the three months ended
September 30, 2001 as compared to the three months ended September 30,
2000. This increase was primarily due to (i) workover expenses incurred on
several wells during the three months ended September 30, 2001 and (ii) an
ad valorem tax refund received on one significant well during the three
months ended September 30, 2000. As a percentage of oil and gas sales,
these expenses increased to 27.5% for the three months ended September 30,
2001 from 15.7% for the three months ended September 30, 2000. This
percentage increase was primarily due to the dollar increase in oil and
gas production expenses.
-60-
Depreciation, depletion, and amortization of oil and gas properties
decreased $3,056 (2.6%) for the three months ended September 30, 2001 as
compared to the three months ended September 30, 2000. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 2000, which was partially offset by the
increase in volumes of oil sold. As a percentage of oil and gas sales,
this expense increased to 11.0% for the three months ended September 30,
2001 from 9.6% 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 $1,475 (1.4%) 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 9.8% for the three months ended September 30, 2001 from 8.5%
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 $4,464,197 $3,521,240
Oil and gas production expenses $ 852,626 $ 651,048
Barrels produced 48,974 42,640
Mcf produced 736,998 803,343
Average price/Bbl $ 25.82 $ 27.89
Average price/Mcf $ 4.34 $ 2.90
As shown in the table above, total oil and gas sales increased $942,957
(26.8%) for the nine months ended September 30, 2001 as compared to the
nine months ended September 30, 2000. Of this increase, approximately (i)
$1,061,000 was related to an increase in the average price of gas sold and
(ii) $177,000 was related to an increase in volumes of oil sold. These
increases were partially offset by decreases of approximately (i) $193,000
related to a decrease in volumes of gas sold and (ii) $102,000 related to
a decrease in the average price of oil sold. Volumes of oil sold increased
6,334 barrels, while volumes of gas sold decreased 66,345 Mcf for the nine
months ended September 30, 2001 as compared to the nine months ended
September 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 nine months ended September 30, 2001. Average
oil prices decreased to
-61-
$25.82 per barrel for the nine months ended September 30, 2001 from $27.89
per barrel for the nine months ended September 30, 2000. Average gas
prices increased to $4.34 per Mcf for the nine months ended September 30,
2001 from $2.90 per Mcf for the nine months ended September 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $201,578 (31.0%) 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) an increase in production
taxes associated with the increase in oil and gas sales and (ii) workover
expenses incurred on several wells during the nine months ended September
30, 2001. As a percentage of oil and gas sales, these expenses increased
to 19.1% for the nine months ended September 30, 2001 from 18.5% for the
nine months ended September 30, 2000.
Depreciation, depletion, and amortization of oil and gas properties
decreased $27,526 (7.1%) 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 decreased to 8.0% for the nine months
ended September 30, 2001 from 11.0% 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 $14,639 (4.3%) 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 9.7%
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 $42,797,371 or 114.99% of Limited Partners' capital
contributions.
-62-
II-H 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 $251,762 $295,563
Oil and gas production expenses $ 71,238 $ 46,985
Barrels produced 4,026 2,873
Mcf produced 55,054 60,631
Average price/Bbl $ 23.55 $ 28.45
Average price/Mcf $ 2.85 $ 3.53
As shown in the table above, total oil and gas sales decreased $43,801
(14.8%) for the three months ended September 30, 2001 as compared to the
three months ended September 30, 2000. Of this decrease, approximately
$20,000 and $37,000, respectively, were related to decreases in the
average prices of oil and gas sold and approximately $20,000 was related
to a decrease in volumes of gas sold. These decreases were partially
offset by an increase of approximately $33,000 related to an increase in
volumes of oil sold. Volumes of oil sold increased 1,153 barrels, while
volumes of gas sold decreased 5,577 Mcf for the three months ended
September 30, 2001 as compared to the three months ended September 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 September 30, 2001. Average oil and gas
prices decreased to $23.55 per barrel and $2.85 per Mcf, respectively, for
the three months ended September 30, 2001 from $28.45 per barrel and $3.53
per Mcf, respectively, for the three months ended September 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $24,253 (51.6%) for the three months ended
September 30, 2001 as compared to the three months ended September 30,
2000. This increase was primarily due to (i) workover expenses incurred on
several wells during the three months ended September 30, 2001 and (ii) an
ad valorem tax refund received on one significant well during the three
months ended September 30, 2000. As a percentage of oil and gas sales,
these expenses increased to 28.3% for the three months ended September 30,
2001 from 15.9% for the three months ended September 30, 2000. This
percentage increase was primarily due to the dollar increase in oil and
gas production expenses.
-63-
Depreciation, depletion, and amortization of oil and gas properties
decreased $966 (3.4%) for the three months ended September 30, 2001 as
compared to the three months ended September 30, 2000. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 2000, which was partially offset by the
increase in volumes of oil sold. As a percentage of oil and gas sales,
this expense increased to 10.8% for the three months ended September 30,
2001 from 9.5% 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 $341 (1.3%) 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 10.4% for the three months ended September 30, 2001 from 9.0%
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 $1,062,850 $829,411
Oil and gas production expenses $ 206,279 $157,441
Barrels produced 11,378 9,929
Mcf produced 176,501 190,864
Average price/Bbl $ 25.82 $ 27.88
Average price/Mcf $ 4.36 $ 2.90
As shown in the table above, total oil and gas sales increased $233,439
(28.1%) for the nine months ended September 30, 2001 as compared to the
nine months ended September 30, 2000. Of this increase, approximately (i)
$258,000 was related to an increase in the average price of gas sold and
(ii) $40,000 was related to an increase in volumes of oil sold. These
increases were partially offset by decreases of approximately (i) $42,000
related to a decrease in volumes of gas sold and (ii) $23,000 related to a
decrease in the average price of oil sold. Volumes of oil sold increased
1,449 barrels, while volumes of gas sold decreased 14,363 Mcf for the nine
months ended September 30, 2001 as compared to the nine months ended
September 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 nine months ended September 30, 2001. Average
oil prices decreased to $25.82 per barrel for the nine months ended
September 30,
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2001 from $27.88 per barrel for the nine months ended September 30, 2000.
Average gas prices increased to $4.36 per Mcf for the nine months ended
September 30, 2001 from $2.90 per Mcf for the nine months ended September
30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $48,838 (31.0%) 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) an increase in production
taxes associated with the increase in oil and gas sales and (ii) workover
expenses incurred on several wells during the nine months ended September
30, 2001. As a percentage of oil and gas sales, these expenses increased
to 19.4% 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 $6,538 (7.2%) 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 decreased to 7.9% for the nine months
ended September 30, 2001 from 10.9% 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 increased $7,983 (9.4%) 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
decreased to 8.7% for the nine months ended September 30, 2001 from 10.2%
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 $9,994,364 or 108.98% of Limited Partners' capital
contributions.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
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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.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
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: 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
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