United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 33-34348-05
ENEX OIL & GAS INCOME PROGRAM V - SERIES 5, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0303885
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 200, Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices)
Issuer's telephone number (713) 358-8401
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
PART I. FINANCIAL INFORMATION
Item I. Financial Statements
ENEX OIL & GAS INCOME PROGRAM V - SERIES 5, L.P.
BALANCE SHEET
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MARCH 31,
ASSETS 1996
-------------------
(Unaudited)
CURRENT ASSETS:
Cash $ 54,748
Accounts receivable - oil sales 39,175
Other current assets 2,847
------------------
Total current assets 96,770
------------------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 1,174,603
Less accumulated depreciation and depletion 643,677
------------------
Property, net 530,926
------------------
ORGANIZATION COSTS
(Net of accumulated amortization of $38,594) 10,675
------------------
TOTAL $ 638,371
==================
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 10,987
Payable to general partner 25,707
------------------
Total current liabilities 36,694
------------------
PARTNERS' CAPITAL:
Limited partners 583,785
General partner 17,892
------------------
Total partners' capital 601,677
------------------
TOTAL $ 638,371
==================
See accompanying notes to financial statements.
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I-1
ENEX OIL & GAS INCOME PROGRAM V - SERIES 5, L.P.
STATEMENT OF OPERATIONS
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(UNAUDITED) THREE MONTHS ENDED
--------------------------
MARCH 31, MARCH 31,
1996 1995
------------ -------------
REVENUES:
Oil sales $ 107,620 $ 115,590
------------ -------------
EXPENSES:
Depreciation, depletion and amortization 29,995 43,972
Lease operating expenses 47,018 58,420
Production taxes 4,983 5,350
General and administrative 15,010 18,935
------------ -------------
Total expenses 97,006 126,677
------------ -------------
INCOME (LOSS) FROM OPERATIONS 10,614 (11,087)
------------ -------------
OTHER INCOME:
Interest income 1,850 -
------------ -------------
NET INCOME (LOSS) $ 12,464 $ (11,087)
============ =============
See accompanying notes to financial statements.
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I-2
ENEX OIL AND GAS INCOME PROGRAM V - SERIES 5, L.P.
STATEMENT OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31, MARCH 31,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 12,464 $ (11,087)
Adjustments to reconcile net income (loss) to
net cash provided by operating
activities:
Depreciation, depletion and amortization 29,995 43,972
(Increase) decrease in:
Accounts receivable - oil sales 2,197 (3,801)
Other current assets - (2,847)
Increase (decrease) in:
Accounts payable (20,946) 34,629
Payable to general partner 15,722 (12,162)
Total adjustments 26,968 59,791
Net cash provided by operating activities 39,432 48,704
CASH FLOWS FROM INVESTING ACTIVITIES:
Property (additions) credits - development costs 9,595 (31,933)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (45,071) (47,228)
NET INCREASE (DECREASE) IN CASH 3,956 (30,457)
CASH AT BEGINNING OF YEAR 50,792 121,429
CASH AT END OF PERIOD $ 54,748 $ 90,972
See accompanying notes to financial statements.
I-3
ENEX OIL & GAS INCOME PROGRAM V - SERIES 5, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
1. The financial information included herein is unaudited; however, such
information reflects all adjustments (consisting solely of normal
recurring adjustments) which are, in the opinion of management, necessary
for a fair presentation of results for the interim period.
2. A cash distribution was made to the limited partners of the Company in the
amount of $40,564 representing net revenues from the temporary investment
of proceeds from subscriptions by the Company. This distribution was made
on January 31, 1996.
I-4
Item 2Management's Discussion and Analysis or Plan of Operation.
First Quarter of 1996 Compared to First Quarter 1995
Oil sales decreased from $115,590 in the first quarter of 1995 to $107,620 in
the first quarter of 1996. This represents a decrease of $7,970 or 7%. A 15%
decrease in oil production reduced sales by $16,936. This decrease was partially
offset by a 9% increase in average oil prices. The decrease in production
primarily resulted from natural production declines. The increase in average oil
prices corresponds with higher prices in the overall market.
Lease operating expenses decreased from $58,420 in the first quarter of 1995 to
$47,018 in the first quarter of 1996. This decrease of $11,402 or 20% was
primarily a result of workover costs incurred on the Muldoon acquisition in the
first quarter of 1995 to acidize the Standard Trust #12 and the Steinhauser #1.
A workover was also performed on the Steinhauser #6 which was unsuccessful and
the well was plugged and abandoned in the first quarter of 1995.
Depreciation and depletion expense decreased from $41,509 in the first quarter
of 1994 to $27,532 in the first quarter of 1996. This represents a decrease of
$13,977 or 34%. A 22% decrease in the depletion rate reduced depreciation and
depletion expense by $7,895, while the decrease in production, noted above,
decreased depreciation and depletion expense by an additional $6,082. The
decrease in the depletion rate was primarily the result of relatively higher
production from properties with a lower depletion rate partially offset by a
downward revision of the oil reserves during December 1995.
General and administrative expenses decreased from $18,935 in the first quarter
of 1995 to $15,010 in the first quarter of 1996. This decrease of $3,925 (21%)
was primarily a result of less staff time being required to manage the Company's
operations in 1996, partially offset by a $1,696 increase in direct expenses
incurred by the Company in 1996.
CAPITAL RESOURCES AND LIQUIDITY
The Company's cash flow from operations is a direct result of the amount of net
proceeds realized from the sale of oil and gas production. Accordingly, the
changes in cash flow from 1995 to 1996 are primarily due to the changes in oil
and gas sales described above. It is the general partner's intention to
distribute substantially all of the Company's available cash flow to the
Company's partners.
The Company will continue to recover its reserves and distribute to the limited
partners the net proceeds realized from the sale of oil and gas production after
payment of its debt obligations. Distribution amounts are subject to change if
net revenues are greater or less than expected. Nonetheless, the general partner
believes the Company will continue to have sufficient cash flow to fund
operations and to maintain a regular pattern of distributions.
As of March 31, 1996, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
II-1
PART II. OTHER INFORMATION
Item 1. Legal proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults upon Senior Securities.
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5. Other Information.
Not Applicable
Item 6. Exhibits and Reports on Form 8-K.
(a) There are no exhibits to this report.
(b) The Company filed no reports on Form 8-K
during the quarter ended March 31, 1996.
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 hereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM V - SERIES 5, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By: /s/ R. E. Densford
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
May 11, 1996 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer