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, 1996
Commission File Number: P-7: 0-20265 P-8: 0-20264
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
-------------------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
P-7: 73-1367186
Oklahoma P-8: 73-1378683
- -------------------------------- --------------------------------
State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or 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 the filing requirements for the past 90
days.
Yes X No
---- ----
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1996 1995
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 713,461 $ 270,118
Accounts receivable:
Net profits and royalty interests
in oil and gas sales 431,622 309,444
---------- ----------
Total current assets $1,145,083 $ 579,562
NET PROFITS AND ROYALTY INTERESTS IN
OIL AND GAS PROPERTIES, net,
utilizing the successful efforts
method 7,333,816 8,395,716
---------- ----------
$8,478,899 $8,975,278
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 91,460) ($ 45,524)
Limited Partners, issued and
outstanding, 188,702 units 8,570,359 9,020,802
---------- ----------
Total Partners' capital $8,478,899 $8,975,278
---------- ----------
$8,478,899 $8,975,278
========== ==========
The accompanying notes are an integral part of
these financial statements.
-2-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
--------- ----------
REVENUES:
Net profits and royalty interests
in oil and gas sales $551,939 $433,605
Interest income 4,556 3,780
Gain on sale of net profits and
royalty interests in oil and
gas properties 1,432 11,595
-------- --------
$557,927 $448,980
COSTS AND EXPENSES:
Depletion of net profits and
royalty interests in oil and
gas properties $312,572 $516,092
General and administrative 53,738 54,513
-------- --------
$366,310 $570,605
-------- --------
NET INCOME (LOSS) $191,617 ($121,625)
======== ========
GENERAL PARTNER - NET INCOME $ 21,856 $ 14,562
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $169,761 ($136,187)
======== ========
NET INCOME (LOSS) per unit $ .90 ($ .72)
======== ========
UNITS OUTSTANDING 188,702 188,702
======== ========
The accompanying notes are an integral part of
these financial statements.
-3-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
----------- ------------
REVENUES:
Net profits and royalty interests
in oil and gas sales $1,571,191 $1,352,152
Interest income 9,296 8,611
Gain on sale of net profits and
royalty interests in oil and
gas properties 92,496 24,547
---------- ----------
$1,672,983 $1,385,310
COSTS AND EXPENSES:
Depletion of net profits and
royalty interests in oil and
gas properties $ 951,048 $1,592,026
General and administrative 171,267 183,549
---------- ----------
$1,122,315 $1,775,575
---------- ----------
NET INCOME (LOSS) $ 550,668 ($ 390,265)
========== ==========
GENERAL PARTNER - NET INCOME $ 65,111 $ 44,168
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 485,557 ($ 434,433)
========== ==========
NET INCOME (LOSS) per unit $ 2.57 ($ 2.30)
========== ==========
UNITS OUTSTANDING 188,702 188,702
========== ==========
The accompanying notes are an integral part of
these financial statements.
-4-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 550,668 ($ 390,265)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of net profits and
royalty interests in oil and
gas properties 951,048 1,592,026
Gain on sale of net profits and
royalty interests in oil and
gas properties ( 92,496) ( 24,547)
Increase in accounts receivable ( 122,178) ( 18,612)
---------- ----------
Net cash provided by operating
activities $1,287,042 $1,158,602
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 165,442) ($ 137,319)
Proceeds from sale of net profits
and royalty interests in oil and
gas properties 368,790 37,556
---------- ----------
Net cash provided (used) by
investing activities $ 203,348 ($ 99,763)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,047,047) ($ 999,000)
---------- ----------
Net cash used by financing
activities ($1,047,047) ($ 999,000)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 443,343 $ 59,839
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 270,118 282,045
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 713,461 $ 341,884
========== ==========
The accompanying notes are an integral part of
these financial statements.
-5-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1996 1995
------------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 420,451 $ 208,319
Accounts receivable:
Net profits and royalty interests
in oil and gas sales 184,445 136,877
---------- ----------
Total current assets $ 604,896 $ 345,196
NET PROFITS AND ROYALTY INTERESTS IN
OIL AND GAS PROPERTIES, net,
utilizing the successful efforts
method 4,274,814 4,927,730
---------- ----------
$4,879,710 $5,272,926
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 49,975) ($ 20,601)
Limited Partners, issued and
outstanding, 116,168 units 4,929,685 5,293,527
---------- ----------
Total Partners' capital $4,879,710 $5,272,926
---------- ----------
$4,879,710 $5,272,926
========== ==========
The accompanying notes are an integral part of
these financial statements.
-6-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- ----------
REVENUES:
Net profits and royalty interests
in oil and gas sales $339,114 $248,394
Interest and other income 2,389 4,831
Gain (loss) on sale of net profits
and royalty interests in oil and
gas properties ( 14,432) 5,929
-------- --------
$327,071 $259,154
COSTS AND EXPENSES:
Depletion of net profits and
royalty interests in oil and
gas properties $194,261 $403,598
General and administrative 33,097 33,255
-------- --------
$227,358 $436,853
-------- --------
NET INCOME (LOSS) $ 99,713 ($177,699)
======== ========
GENERAL PARTNER - NET INCOME $ 12,637 $ 7,259
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $ 87,076 ($184,958)
======== ========
NET INCOME (LOSS) per unit $ .75 ($ 1.59)
======== ========
UNITS OUTSTANDING 116,168 116,168
======== ========
The accompanying notes are an integral part of
these financial statements.
-7-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- -----------
REVENUES:
Net profits and royalty interests
in oil and gas sales $968,193 $ 925,221
Interest and other income 5,223 8,209
Gain on sale of net profits and
royalty interests in oil and
gas properties 15,707 10,441
-------- ----------
$989,123 $ 943,871
COSTS AND EXPENSES:
Depletion of net profits and
royalty interests in oil and
gas properties $567,173 $1,213,637
General and administrative 105,546 111,477
-------- ----------
$672,719 $1,325,114
-------- ----------
NET INCOME (LOSS) $316,404 ($ 381,243)
======== ==========
GENERAL PARTNER - NET INCOME $ 38,246 $ 29,483
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $278,158 ($ 410,726)
======== ==========
NET INCOME (LOSS) per unit $ 2.39 ($ 3.54)
======== ==========
UNITS OUTSTANDING 116,168 116,168
======== ==========
The accompanying notes are an integral part of
these financial statements.
-8-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $316,404 ($ 381,243)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of net profits and
royalty interests in oil and
gas properties 567,173 1,213,637
Gain on sale of net profits and
royalty interests in oil and
gas properties ( 15,707) ( 10,441)
Increase in accounts receivable ( 47,568) -
Decrease in accounts payable - ( 43,047)
-------- ----------
Net cash provided by operating
activities $820,302 $ 778,906
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 88,442) ($ 53,013)
Proceeds from sale of net profits
and royalty interests in oil and
gas properties 189,892 20,066
-------- ----------
Net cash provided (used) by
investing activities $101,450 ($ 32,947)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($709,620) ($ 688,500)
-------- ----------
Net cash used by financing
activities ($709,620) ($ 688,500)
-------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $212,132 $ 57,459
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 208,319 198,756
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $420,451 $ 256,215
======== ==========
The accompanying notes are an integral part of
these financial statements.
-9-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME PROGRAM II PARTNERSHIPS
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 1996, statements of
operations for the three and nine months ended September 30, 1996
and 1995 and the statements of cash flows for the nine months
ended September 30, 1996 and 1995 have been prepared by Geodyne
Resources, Inc., the general partner (the "General Partner") of
the Geodyne Institutional/Pension Energy Income Program II
Limited Partnerships (individually, the "P-7 Partnership" or the
"P-8 Partnership", as the case may be, or, collectively, the
"Partnerships"), without audit. In the opinion of management the
financial statements referred to above include all necessary
adjustments, consisting of normal recurring adjustments, to
present fairly the financial position at September 30, 1996, the
results of operations for the three and nine months ended
September 30, 1996 and 1995 and cash flows for the nine months
ended September 30, 1996 and 1995.
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, 1995. The results of
operations for the period ended September 30, 1996 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.
NET PROFITS AND ROYALTY INTERESTS IN OIL AND GAS PROPERTIES
-----------------------------------------------------------
The Partnerships follow the successful efforts method of
accounting for their net profits and royalty interests in oil and
gas properties ("oil and gas properties"). Under the successful
efforts method, the Partnerships capitalize all acquisition
costs. Property acquisition costs include costs incurred by the
Partnerships or the General Partner to acquire a net profits
interest or other non-operating interest in producing properties,
including related title insurance or examination costs,
commissions, engineering, legal and accounting fees, and similar
costs directly related to the acquisitions. The acquisition cost
to the Partnerships of net profits and royalty interests in
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. Impairment of net profits and royalty interests in
oil and gas properties is recognized based upon an individual
property assessment.
-10-
Depletion of the costs of net profits and royalty interests in
producing oil and gas properties is computed on the unit-of-
production method.
Effective October 1, 1995, the Partnerships adopted the
requirements of Statement of Financial Accounting Standards
("SFAS") No. 121, "Accounting for the Impairment of Long Lived
Assets and Assets Held for Disposal. SFAS No. 121 provides that
if the unamortized costs of net profits and royalty interests in
oil and gas properties for each field exceed the expected
undiscounted future cash flows from such properties, the cost of
the properties is written down to fair value, which is determined
by using the discounted future cash flows from the properties.
Under the Partnerships' prior impairment policy if the
unamortized costs of net profits and royalty interests in oil and
gas properties as a whole exceeded the estimated undiscounted
future net revenues of the properties, a valuation allowance
would be recorded for the excess amount. The risk that the
Partnerships will be required to record such impairment
provisions in the future increases when oil and gas prices are
depressed.
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 by the General Partner. During the three
months ended September 30, 1996 the following payments were made
to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------ --------------
P-7 $4,079 $49,659
P-8 2,527 30,570
During the nine months ended September 30, 1996 the following
payments were made to the General Partner or its affiliates by
the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------ --------------
P-7 $22,290 $148,977
P-8 13,836 91,710
Affiliated companies are the operator of certain of the
Partnerships' properties and their policy is to bill the
Partnerships for all customary charges and cost reimbursements
associated with their activities, together with any compressor
rental, consulting, or other services provided.
The Partnerships receive Net Profits and Royalty Interests
distributions on a monthly basis from affiliated partnerships
-11-
managed by the General Partner. These distributions are
reflected as Revenue, "Net Profits and Royalty Interests in Oil
and Gas Sales", in the accompanying statements of operations.
The Net Profits and Royalty Interests Receivable represents
amounts due from these affiliated partnerships.
-12-
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
GENERAL
- -------
The Partnerships were formed for the purpose of acquiring net
profits interests and royalty interests in producing oil and gas
properties located in the continental United States. In general,
each Partnership acquired passive interests in producing
properties and does not directly engage in development drilling
or enhanced recovery projects. Therefore, the economic life of
each Partnership is limited to the period of time required to
fully produce its acquired oil and gas reserves. A net profits
interest in oil and gas properties entitles the Partnerships to a
portion of the oil and gas sales less operating and production
expenses and development costs generated by the owner of the
underlying working interest in the oil and gas properties. The
net proceeds from the oil and gas operations are distributed to
the Limited Partners and General Partner in accordance with the
terms of the Partnerships' Partnership Agreements.
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
----------- ------------------ ---------------
P-7 February 28, 1992 $18,870,200
P-8 February 28, 1992 11,616,800
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. The Partnerships have fully
invested their capital contributions.
Net proceeds from operations less necessary operating capital are
distributed to 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. Over the last several years, the domestic energy
industry and the Partnerships have contended with volatile, but
generally low, oil and gas prices. Over the last few years, the
oil and gas market appears to have moved from periods of relative
stability in supply and demand to excess supply or weakened
demand. These trends have led to the volatility in pricing and
demand noted over the past years. While the General Partner
cannot predict future pricing trends, it believes the working
capital available as of September 30, 1996 and the net revenue
generated from future operations will provide sufficient working
capital to meet current and future obligations of the
Partnerships.
-13-
During the nine months ended September 30, 1996 the Partnerships
sold their interests in several oil and gas properties located in
Oklahoma, Texas, and New Mexico. Proceeds from such sales
totalled $368,790 for the P-7 Partnership and $189,892 for the P-
8 Partnership. Such proceeds will be included in the
determination of the amount of the cash distributions to be paid
to the Limited Partners of the Partnerships during November 1996.
RESULTS OF OPERATIONS
- ---------------------
P-7 PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1995.
Three Months Ended September 30,
--------------------------------
1996 1995
-------- --------
Net profits and royalty
interests in oil and
gas sales $551,939 $433,605
Barrels produced 29,406 33,608
Mcf produced 202,442 227,833
Average price/Bbl $ 21.38 $ 16.73
Average price/Mcf $ 1.68 $ 1.31
As shown in the table above, total net profits and royalty
interests in oil and gas sales increased $118,334 (27.3%) for the
three months ended September 30, 1996 as compared to the three
months ended September 30, 1995. Of this increase, $240,575 was
related to the increases in the average prices of oil and natural
gas sold, partially offset by a $132,496 decrease related to the
decreases in the volumes of oil and natural gas sold. Volumes of
oil and natural gas sold decreased by 4,202 barrels and 25,391
Mcf, respectively, for the three months ended September 30, 1996
as compared to the three months ended September 30, 1995.
Average oil and natural gas prices increased to $21.38 per barrel
and $1.68 per Mcf, respectively, for the three months ended
September 30, 1996 from $16.73 per barrel and $1.31 per Mcf,
respectively, for the three months ended September 30, 1995.
Depletion of net profits and royalty interests in oil and gas
properties decreased $203,520 for the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. This decrease was primarily due to (i) a
decrease in capitalized costs due to an impairment provision
recognized in the fourth quarter of 1995, (ii) upward revisions
of previous reserve estimates at December 31, 1995, and (iii) the
decrease in the equivalent units of production sold during the
three months ended September 30, 1996 as compared to the three
months ended September 30, 1995. As a percentage of net profits
and royalty interests in oil and gas sales, this expense
decreased to 56.6% for the three months ended September 30, 1996
from 119.0% for the three months ended September 30, 1995. This
percentage decrease was primarily due to the impairment provision
and reserve revisions discussed above and the increases in the
average prices of oil and natural gas sold during the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995.
-14-
General and administrative expenses remained relatively constant
for the three months ended September 30, 1996 as compared to the
three months ended September 30, 1995. As a percentage of net
profits and royalty interests in oil and gas sales, these
expenses decreased to 9.7% for the three months ended September
30, 1996 from 12.6% for the three months ended September 30,
1995. This percentage decrease was primarily due to the
increases in the average prices of oil and natural gas sold
during the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995.
NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1995.
Nine Months Ended September 30,
-------------------------------
1996 1995
-------- ----------
Net profits and royalty
interests in oil and
gas sales $1,571,191 $1,352,152
Barrels produced 99,986 101,850
Mcf produced 552,872 713,747
Average price/Bbl $ 19.65 $ 16.80
Average price/Mcf $ 1.82 $ 1.36
As shown in the table above, total net profits and royalty
interests in oil and gas sales increased $219,039 (16.2%) for the
nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995. Of the increase, $618,597 was
related to the increases in the average prices of oil and natural
gas sold, partially offset by a $329,421 decrease related to the
decreases in the volumes of oil and natural gas sold. Volumes of
oil and natural gas sold decreased by 1,864 barrels and 160,875
Mcf, respectively, for the nine months ended September 30, 1996
as compared to the nine months ended September 30, 1995. The
decrease in the volumes of natural gas sold resulted primarily
from (i) the normal declines in production due to diminished
natural gas reserves on several wells during the nine months
ended September 30, 1996 as compared to the nine months ended
September 30, 1995, (ii) negative gas balancing adjustments made
by the operator on two wells during the nine months ended
September 30, 1996, and (iii) the shutting-in of another well due
to a recompletion performed during the nine months ended
September 30, 1996. Average oil and natural gas prices increased
to $19.65 per barrel and $1.82 per Mcf, respectively, for the
nine months ended September 30, 1996 from $16.80 per barrel and
$1.36 per Mcf, respectively, for the nine months ended September
30, 1995.
Depletion of net profits and royalty interests in oil and gas
properties decreased $640,978 for the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
This decrease was primarily due to (i) a decrease in capitalized
costs due to an impairment provision recognized in the fourth
quarter of 1995, (ii) upward revisions of previous reserve
estimates at December 31, 1995, and (iii) the decrease in the
equivalent units of production sold during the nine months ended
September 30, 1996 as compared to the nine months ended September
30, 1995. As a percentage of net profits and royalty interests
in oil and gas sales, this expense decreased to 60.5% for the
-15-
nine months ended September 30, 1996 from 117.7% for the nine
months ended September 30, 1995. This percentage decrease was
primarily due to the impairment provision and reserve revisions
discussed above and the increases in the average prices of oil
and natural gas sold during the nine months ended September 30,
1996 as compared to the nine months ended September 30, 1995.
General and administrative expenses decreased $12,282 for the
nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995. This decrease was primarily due
to a decrease in professional fees, printing and postage
expenses, and filing fees during the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
As a percentage of net profits and royalty interests in oil and
gas sales, these expenses decreased to 10.9% for the nine months
ended September 30, 1996 from 13.6% for the nine months ended
September 30, 1995. This percentage decrease was primarily due
to the increases in the average prices of oil and natural gas
sold during the nine months ended September 30, 1996 as compared
to the nine months ended September 30, 1995.
Cumulative cash distributions to the Limited Partners through
September 30, 1996 were $6,686,916 or 35.44% of Limited Partners'
capital contributions.
P-8 PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1995.
Three Months Ended September 30,
--------------------------------
1996 1995
-------- --------
Net profits and royalty
interests in oil and
gas sales $339,114 $248,394
Barrels produced 16,657 19,397
Mcf produced 142,883 180,017
Average price/Bbl $ 21.35 $ 16.69
Average price/Mcf $ 1.67 $ 1.34
As shown in the table above, total net profits and royalty
interests in oil and gas sales increased $90,720 (36.5%) for the
three months ended September 30, 1996 as compared to the three
months ended September 30, 1995. Of this increase, $149,796 was
related to the increases in the average prices of oil and natural
gas sold, partially offset by a $120,513 decrease related to the
decreases in the volumes of oil and natural gas sold. Volumes of
oil and natural gas sold decreased by 2,740 barrels and 37,137
Mcf, respectively, for the three months ended September 30, 1996
as compared to the three months ended September 30, 1995. The
decrease in the volumes of natural gas sold resulted primarily
from (i) the normal declines in production due to diminished
natural gas reserves on several wells during the three months
ended September 30, 1996 as compared to the three months ended
September 30, 1995 and (ii) a negative prior period adjustment
made by the purchaser on one well during 1996. Average oil and
natural gas prices increased to $21.35 per barrel and $1.67 per
Mcf, respectively, for the three months ended September 30, 1996
from $16.69 per barrel and $1.34 per Mcf, respectively, for the
three months ended September 30, 1995.
-16-
Depletion of net profits and royalty interests in oil and gas
properties decreased $209,337 for the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. This decrease was primarily due to (i) a
decrease in capitalized costs due to an impairment provision
recognized in the fourth quarter of 1995, (ii) upward revisions
of previous reserve estimates at December 31, 1995, and (iii) the
decrease in the equivalent units of production sold during the
three months ended September 30, 1996 as compared to the three
months ended September 30, 1995. As a percentage of net profits
and royalty interests in oil and gas sales, this expense
decreased to 57.3% for the three months ended September 30, 1996
from 162.5% for the three months ended September 30, 1995. This
percentage decrease was primarily due to the impairment provision
and reserve revisions discussed above and the increases in the
average prices of oil and natural gas sold during the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1996 as compared to the
three months ended September 30, 1995. As a percentage of net
profits and royalty interests in oil and gas sales, these
expenses decreased to 9.8% for the three months ended September
30, 1996 from 13.4% for the three months ended September 30,
1995. This percentage decrease was primarily due to the
increases in the average prices of oil and natural gas sold
during the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995.
NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1995.
Nine Months Ended September 30,
-------------------------------
1996 1995
-------- --------
Net profits and royalty
interests in oil and
gas sales $968,193 $925,221
Barrels produced 58,515 60,560
Mcf produced 357,877 527,928
Average price/Bbl $ 19.62 $ 16.77
Average price/Mcf $ 1.90 $ 1.37
As shown in the table above, total net profits and royalty
interests in oil and gas sales increased $42,972 (4.6%) for the
nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995. Of this increase, $452,398 was
related to the increases in the average prices of oil and natural
gas sold, partially offset by a $363,220 decrease related to the
decreases in the volumes of oil and natural gas sold. Volumes of
oil and natural gas sold decreased by 2,045 barrels and 170,051
Mcf, respectively, for the nine months ended September 30, 1996
as compared to the nine months ended September 30, 1995. The
decrease in the volumes of natural gas sold resulted primarily
from (i) the normal declines in production due to diminished
natural gas reserves on several wells during the nine months
ended September 30, 1996 as compared to the nine months ended
-17-
September 30, 1995, (ii) negative gas balancing adjustments made
by the operator on two wells during the nine months ended
September 30, 1996, and (iii) a negative prior period volume
adjustment made by the purchaser on one well during the nine
months ended September 30, 1996. Average oil and natural gas
prices increased to $19.62 per barrel and $1.90 per Mcf,
respectively, for the nine months ended September 30, 1996 from
$16.77 per barrel and $1.37 per Mcf, respectively, for the nine
months ended September 30, 1995.
Depletion of net profits and royalty interests in oil and gas
properties decreased $646,464 for the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
This decrease was primarily due to (i) a decrease in capitalized
costs due to an impairment provision recognized in the fourth
quarter of 1995, (ii) upward revisions of previous reserve
estimates at December 31, 1995, and (iii) the decrease in the
equivalent units of production sold during the nine months ended
September 30, 1996 as compared to the nine months ended September
30, 1995. As a percentage of net profits and royalty interests
in oil and gas sales, this expense decreased to 58.6% for the
nine months ended September 30, 1996 from 131.2% for the nine
months ended September 30, 1995. This decrease was primarily due
to the impairment provision and reserve revisions discussed above
and the increases in the average prices of oil and natural gas
sold during the nine months ended September 30, 1996 as compared
to the nine months ended September 30, 1995.
General and administrative expenses decreased $5,931 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This decrease was primarily due to a
decrease in professional fees, printing and postage expenses, and
filing fees during the nine months ended September 30, 1996 as
compared to the nine months ended September 30, 1995. As a
percentage of net profits and royalty interests in oil and gas
sales, these expenses remained relatively constant at 10.9% for
the nine months ended September 30, 1996 as compared to 12.0% for
the nine months ended September 30, 1995.
Cumulative cash distributions to the Limited Partners through
September 30, 1996 were $4,071,583 or 35.05% of Limited Partners'
capital contributions.
-18-
PART II: OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27.1 Financial Data Schedule containing summary
financial information extracted from the P-7
Partnership's financial statements as of September
30, 1996 and for the nine months ended September
30, 1996, filed herewith.
27.2 Financial Data Schedule containing summary
financial information extracted from the P-8
Partnership's financial statements as of September
30, 1996 and for the nine months ended September
30, 1996, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K:
Current Reports on Form 8-K filed during third quarter of
1996:
Date of event: July 1, 1996
Date filed with SEC: July 8, 1996
Item Included:
Item 5 - Other Events
Date of event: July 17, 1996
Date filed with SEC: July 31, 1996
Item Included:
Item 5 - Other Events
-19-
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 INSTITUTIONAL/PENSION ENERGY INCOME
LIMITED PARTNERSHIP P-7
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME
LIMITED PARTNERSHIP P-8
(Registrant)
By: GEODYNE RESOURCES, INC.
General Partner
Date: November 12, 1996 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: November 12, 1996 By: /s/Patrick M. Hall
-------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
-20-
INDEX TO EXHIBITS
-----------------
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Geodyne Institutional/Pension
Energy Income Limited Partnership P-7's financial statements
as of September 30, 1996 and for the nine months ended
September 30, 1996, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the Geodyne Institutional/Pension
Energy Income Limited Partnership P-8's financial statements
as of September 30, 1996 and for the nine months ended
September 30, 1996, filed herewith.
All other exhibits are omitted as inapplicable.