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 June 30, 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) has 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
Transitional Small Business Disclosure Format (Check one):
Yes No x
PART I. FINANCIAL INFORMATION
Item I. Financial Statements
ENEX OIL & GAS INCOME PROGRAM V - SERIES 5, L.P.
BALANCE SHEET
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JUNE 30,
ASSETS 1996
---------------------
(Unaudited)
CURRENT ASSETS:
Cash ......................................................... $ 74,989
Accounts receivable - oil sales .............................. 43,672
Other current assets ......................................... 2,847
----------
Total current assets ........................................... 121,508
----------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities ........ 1,198,897
Less accumulated depreciation and depletion ................. 682,987
----------
Property, net .................................................. 515,910
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ORGANIZATION COSTS
(Net of accumulated amortization of $41,058) ................... 8,211
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TOTAL .......................................................... $ 645,629
==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable ............................................ $ 22,808
Payable to general partner .................................. 4
----------
Total current liabilities ...................................... 22,812
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PARTNERS' CAPITAL:
Limited partners ............................................ 601,428
General partner ............................................. 21,389
----------
Total partners' capital ........................................ 622,817
----------
TOTAL .......................................................... $ 645,629
==========
See accompanying notes to financial statements.
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ENEX OIL & GAS INCOME PROGRAM V - SERIES 5, L.P.
STATEMENT OF OPERATIONS
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(UNAUDITED) QUARTER ENDED SIX MONTHS ENDED
---------------------- ------------------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1996 1995 1996 1995
---------- ---------- ----------- ---------
REVENUES:
Oil sales ............................... $ 155,202 $ 125,863 $ 262,822 $ 241,453
--------- --------- --------- ---------
EXPENSES:
Depreciation, depletion and amortization 41,774 43,862 71,769 87,834
Lease operating expenses ................ 36,159 67,485 83,177 125,905
Production taxes ........................ 7,175 5,825 12,158 11,175
General and administrative .............. 14,810 21,433 29,820 40,368
--------- --------- --------- ---------
Total expenses ............................ 99,918 138,605 196,924 265,282
--------- --------- --------- ---------
INCOME (LOSS) FROM OPERATIONS ............. 55,284 (12,742) 65,898 (23,829)
--------- --------- --------- ---------
OTHER INCOME:
Interest income ......................... -- -- 1,850 --
--------- --------- --------- ---------
NET INCOME (LOSS) ......................... $ 55,284 $ (12,742) $ 67,748 $ (23,829)
========= ========= ========= =========
See accompanying notes to financial statements.
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ENEX OIL AND GAS INCOME PROGRAM V - SERIES 5, L.P.
STATEMENT OF CASH FLOWS
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(UNAUDITED)
SIX MONTHS ENDED
----------------------
JUNE 30, JUNE 30,
1996 1995
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) .................................... $ 67,748 $ (23,829)
--------- ---------
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation, depletion and amortization ........... 71,769 87,834
(Increase) in:
Accounts receivable - oil sales .................... (2,300) (5,024)
Other current assets ............................... -- (2,847)
Increase (decrease) in:
Accounts payable .................................. (9,125) 22,709
Payable to general partner ........................ (9,981) 5,957
--------- ---------
Total adjustments .................................... 50,363 108,629
--------- ---------
Net cash provided by operating activities ............ 118,111 84,800
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs ........... (14,699) (17,888)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ............................... (79,215) (81,827)
--------- ---------
NET INCREASE (DECREASE) IN CASH ...................... 24,197 (14,915)
CASH AT BEGINNING OF YEAR ............................ 50,792 121,429
--------- ---------
CASH AT END OF PERIOD ................................ $ 74,989 $ 106,514
========= =========
See accompanying notes to financial statements.
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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 $6,160 representing net revenues from the sale of oil
produced from properties owned by the Company. This distribution was
made on April 30, 1996.
3. On August 9, 1996, the Company's General Partner submitted preliminary
proxy material to the Securities Exchange Commission with respect to a
proposed consolidation of the Company with 33 other managed limited
partnerships. The terms and conditions of the proposed consolidation
are set forth in such preliminary proxy material.
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Item 2. Management's Discussion and Analysis or Plan of Operation.
Second Quarter 1995 Compared to the Second Quarter 1996
Oil sales for the second quarter increased to $155,202 in 1996 to $125,863 in
1995. This represents an increase of $29,339 (23%). A 9% increase in oil
production increased sales by $10,889. A 13% increase in the average oil sales
price increased sales by an additional $18,450. The increase in oil production
was primarily the result of the shut-in of production to perform workovers on
the Muldoon acquisition in the second quarter of 1995. The increase in the
average oil sales price corresponds with higher prices in the overall market for
the sale of oil.
Lease operating expenses decreased to $36,159 in the second quarter of 1996 from
$67,485 in 1995. The decrease of $31,326 (46%) was primarily due to workover
costs incurred in 1995 to acidize the Standard Trust #12 and the Steinhauser #1
wells. A workover was also attempted on the Steinhauser #6 which was
unsuccessful and the well was plugged and abandoned in the second quarter of
1995.
Depreciation and depletion expense decreased to $39,310 in the second quarter of
1996 from $41,398 in the second quarter of 1995. This represents a decrease of
$2,088 (5%). A 13% decrease in he depletion rate reduced depreciation and
depletion expense by $5,669. This decrease was partially offset by the changes
in production, noted above. The decrease in the depletion rate was primarily the
result of an upward revision of the oil reserves at December 31, 1995.
General and administrative expenses decreased to $14,810 in the second quarter
of 1996 from $21,433 in 1995. This decrease of $6,623 (31%) is primarily due to
less staff time being required to manage the Company's operations.
First Six Months in 1995 Compared to the First Six Months in 1996
- ------------------------------------------------------------------
Oil sales for the first six months increased to $262,822 in 1996 from $241,453
in 1995. This represents an increase of $21,369 (9%). A 12% increase in the
average oil sales price increased sales by $28,046. This increase was partially
offset by a 3% decrease in oil production. The decrease in oil production was
primarily the result of natural production declines, partially offset by shut-in
of production to perform workovers on the Muldoon acquisition in the second
quarter of 1995. The increase in the average oil sales price corresponds with
higher prices in the overall market for the sale of oil.
Lease operating expenses decreased to $83,177 in the first six months of 1996
from $125,905 in the first six months of 1995. The decrease of $42,728 (34%) was
primarily due to workover costs incurred in 1995 to acidize the Standard Trust
#12 and the Steinhauser #1 wells. A workover was also attempted on the
Steinhauser #6 which was unsuccessful and the well was plugged and abandoned in
the second quarter of 1995.
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Depreciation and depletion expense decreased to $66,842 in the first six months
of 1996 from $82,907 in the first six months of 1995. This represents a decrease
of $16,065 (19%). The decrease in production, noted above, reduced depreciation
and depletion expense by $2,293. A 17% decrease in the depletion rate reduced
depreciation and depletion expense by an additional $13,772. The decrease in
thedepletion rate was primarily the result of an upward revision of the oil
reserves at December 1995.
General and administrative expenses decreased to $29,820 in the first six months
of 1996 from $40,368 in 1995. This decrease of $10,548 is primarily a result of
less staff time being required to manage the Company's operations.
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.
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.
On August 9, 1996, the Company's General Partner submitted preliminary proxy
material to the Securities Exchange Commission with respect to a proposed
consolidation of the Company with 33 other managed limited partnerships. The
terms and conditions of the proposed consolidation are set forth in such
preliminary proxy material.
As of June 30, 1996, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
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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 June 30, 1996.
II-1
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
has this report to be signed on its behalf by the undersigned thereunto 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
August 13, 1996 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer