United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB/A
Amendment I
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 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
- --------------------------------------------------------------------------------------
September 30,
ASSETS 1996
---------------------
(Unaudited)
CURRENT ASSETS:
Cash $ 17,307
Accounts receivable - oil sales 46,336
Other current assets 2,847
-------------
Total current assets 66,490
-------------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 1,301,480
Less accumulated depreciation and depletion 731,830
-------------
Property, net 569,650
-------------
ORGANIZATION COSTS
(Net of accumulated amortization of $33,667) 6,569
-------------
TOTAL $ 642,709
=============
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 31,553
PARTNERS' CAPITAL:
Limited partners 585,883
General partner 25,273
-------------
Total partners' capital 611,156
-------------
TOTAL $ 642,709
=============
Number of $500 Limited Partner units outstanding 2,463
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) QUARTER ENDED NINE MONTHS ENDED
------------------------------------ ----------------------------------------
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
--------------- ----------------- ----------------- -------------------
REVENUES:
Oil sales $ 131,751 $ 106,987 $ 394,573 $ 348,440
--------------- ----------------- ----------------- -------------------
EXPENSES:
Depreciation, depletion and amortization 50,485 45,935 122,254 133,769
Lease operating expenses 39,462 32,422 122,639 158,327
Production taxes 6,093 4,955 18,251 16,130
General and administrative 11,851 13,368 41,671 53,736
--------------- ----------------- ----------------- -------------------
Total expenses 107,891 96,680 304,815 361,962
--------------- ----------------- ----------------- -------------------
INCOME (LOSS) FROM OPERATIONS 23,860 10,307 89,758 (13,522)
--------------- --------------- --------------- -----------------
OTHER INCOME:
Interest income - - 1,850 -
--------------- --------------- --------------- -----------------
NET INCOME (LOSS) $ 23,860 $ 10,307 $ 91,608 $ (13,522)
=============== ================= ================= ===================
ENEX OIL & GAS INCOME PROGRAM V - SERIES 5, L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
FOR THE TWO YEARS ENDED DECEMBER 31, 1995
AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
- ------------------------------------------------------------------------------
PER $500
LIMITED
PARTNER
GENERAL LIMITED UNIT OUT-
TOTAL PARTNER PARTNERS STANDING
-------------- ------------- -------------- --------
BALANCE, JANUARY 1, 1994 $ 897,520 $ 10,292 $ 887,228 $ 360
CASH DISTRIBUTIONS (164,848) (16,484) (148,364) (60)
NET INCOME 32,738 22,990 9,748 4
-------------- ------------- -------------- --------
BALANCE, DECEMBER 31, 1994 765,410 16,798 748,612 304
CASH DISTRIBUTIONS (168,724) (16,874) (151,850) (62)
NET INCOME 37,598 18,231 19,367 8
-------------- ------------- -------------- --------
BALANCE, DECEMBER 31, 1995 $ 634,284 $ 18,155 $ 616,129 $ 250
CASH DISTRIBUTIONS (114,736) (14,267) (100,469) (41)
NET INCOME 91,608 21,385 70,223 29
-------------- ------------- -------------- --------
BALANCE, SEPTEMBER 30, 1996 $ 611,156 $ 25,273 $ 585,883 (1) $ 238
============== ============= ============== ========
(1) Includes 131 units purchased by the general partner as a limited partner.
See accompanying notes to financial statements.
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I-3
ENEX OIL AND GAS INCOME PROGRAM V - SERIES 5, L.P.
STATEMENT OF CASH FLOWS
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(UNAUDITED)
NINE MONTHS ENDED
--------------------------------------------
September 30, September 30,
1996 1995
------------------- -------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 91,608 $ (13,522)
------------------- -------------------
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation, depletion and amortization 122,254 133,769
(Increase) in:
Accounts receivable - oil sales (4,964) (2,141)
Other current assets - (2,847)
(Decrease) in:
Accounts payable (380) (8,143)
Payable to general partner (9,985) (16,096)
------------------- -------------------
Total adjustments 106,925 104,542
------------------- -------------------
Net cash provided by operating activities 198,533 91,020
------------------- -------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs (117,282) (38,812)
------------------- -------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (114,736) (141,168)
------------------- -------------------
NET (DECREASE) IN CASH (33,485) (88,960)
CASH AT BEGINNING OF YEAR 50,792 121,429
------------------- -------------------
CASH AT END OF PERIOD $ 17,307 $ 32,469
=================== ===================
See accompanying notes to financial statements.
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I-4
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 $30,276 representing net revenues from the sale of oil
produced from properties owned by the Company. This distribution was
made on July 31, 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. On November 13, 1996, the Company submitted amended
preliminary proxy material to the SEC with respect to this
consolidation. The terms and conditions of the proposed consolidation
are set forth in such preliminary proxy material.
4. The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standard ("SFAS") No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed Of," which
requires certain assets to be reviewed for impairment whenever events or
circumstances indicate the carrying amount may not be recoverable. Prior to
this pronouncement, the Company assessed properties on an aggregate basis.
Upon adoption of SFAS 121, the Company began assessing properties on an
individual basis, wherein total capitalized costs may not exceed the
property's fair market value. The fair market value of each property was
determined by H. J. Gruy and Associates, ("Gruy"). To determine the fair
market value, Gruy estimated each property's oil and gas reserves, applied
certain assumptions regarding price and cost escalations, applied a 10%
discount factor for time and certain discount factors for risk, location,
type of ownership interest, category of reserves, operational
characteristics, and other factors.
I-5
Item 2. Management's Discussion and Analysis or Plan of Operation.
Third Quarter 1995 Compared to the Third Quarter 1996
Oil sales for the third quarter increased to $131,751 in 1996 from $106,987 in
1995. This represents an increase of $24,764 (23%). A 28% increase in the
average oil sales price increased sales by $28,837. This increase was partially
offset by a 4% decrease in oil production. The decrease in oil production was
primarily due to natural production declines. The increase in the average oil
sales price corresponds with higher prices in the overall market for the sale of
oil.
Lease operating expenses increased to $39,462 in the third quarter of 1996 from
$32,422 in 1995. The increase of $3,040 (22%) 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 third quarter of
1995.
Depreciation and depletion expense increased to $48,022 in the third quarter of
1996 from $43,472 in the third quarter of 1995. This represents a increase of
$4,550 (10%). A 15% increase in the depletion rate increased depreciation and
depletion expense by $6,206. This increase was partially offset by the changes
in production noted above. The increase in the depletion rate was primarily the
result of relatively higher production from properties with a higher depletion
rate partially offset by an upward revision of the oil reserves during December
1995.
General and administrative expenses decreased to $11,851 in the third quarter of
1996 from $13,368 in 1995. This decrease of $1,517 (11%) is primarily due to
less staff time being required to manage the Company's operations.
First Nine Months in 1995 Compared to the First Nine Months in 1996
- --------------------------------------------------------------------
Oil sales for the first nine months increased to $394,573 in 1996 from $348,440
in 1995. This represents an increase of $46,133 (13%). A 17% increase in the
average oil sales price increased sales by $56,953. 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 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 $122,639 in the first nine months of 1996
from $158,327 in the first nine months of 1995. The decrease of $35,688 (23%)
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.
I-6
Depreciation and depletion expense decreased to $114,864 in the first nine
months of 1996 from $126,374 in the first nine month of 1995. This represents a
decrease of $11,515 (9%). The decrease in production, noted above, reduced
depreciation and depletion expense by $3,921. A 6% decrease in the depletion
rate reduced depreciation and depletion expense by an additional $7,594. The
decrease in the depletion rate was primarily the result of an upward revision of
the oil reserves at December 1995.
General and administrative expenses decreased to $41,671 in the first nine
months of 1996 from $53,736 in 1995. This decrease of $12,065 (22%) 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's "available cash flow" is essentially equal to
the net amount of cash provided by operating, financing and investing
activities.
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. On
November 13, 1996, the Company submitted amended preliminary proxy material to
the SEC with respect to this consolidation. The terms and conditions of the
proposed consolidation are set forth in such preliminary proxy material.
As of September 30, 1996, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
I-7
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 September 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
January 30, 1997 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer