FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[ X ]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to _____________
Commission File number 0-17023
SWIFT ENERGY INCOME PARTNERS 1986-D, LTD.
(Exact name of registrant as specified in its charter)
Texas 76-0208087
(State or other jurisdiction (I.R.S. Employer
of organization) Identification No.)
16825 Northchase Drive, Suite 400
Houston, Texas 77060
(Address of principal executive offices)
(Zip Code)
(713)874-2700
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed
since last report)
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_____
SWIFT ENERGY INCOME PARTNERS 1986-D, LTD.
INDEX
PART I. FINANCIAL INFORMATION PAGE
ITEM 1. Financial Statements
Balance Sheets
- March 31, 1995 and December 31, 1994 3
Statements of Operations
- Three month periods ended March 31,
1995 and 1994 4
Statements of Cash Flows
- Three month periods ended March 31,
1995 and 1994 5
Notes to Financial Statements 6
ITEM 2. Management's Discussion and Analysis
of Financial Condition and
Results of Operations 7
PART II. OTHER INFORMATION 8
SIGNATURES 9
SWIFT ENERGY INCOME PARTNERS 1986-D, LTD.
BALANCE SHEETS
March 31, December 31,
1995 1994
__________ __________
(Unaudited)
ASSETS:
Current Assets:
Cash and cash equivalents $ 1,521 $ 1,468
Oil and gas sales receivable 187,573 223,434
___________ ___________
Total Current Assets 189,094 224,902
___________ ___________
Oil and Gas Properties, using full cost
accounting 13,074,809 13,030,737
Less-Accumulated depreciation, depletion
and amortization (9,767,653) (9,511,869)
___________ ___________
3,307,156 3,518,868
___________ ___________
$ 3,496,250 $ 3,743,770
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL:
Current Liabilities:
Accounts payable and accrued liabilities $ 435,418 $ 414,932
Current portion of note payable 100,000 100,000
___________ ___________
Total Current Liabilities 535,418 514,932
Note payable to a Bank, net
of current portion -- 25,000
Deferred Revenues 142,253 142,996
Partners' Capital 2,818,579 3,060,842
___________ ___________
$ 3,496,250 $ 3,743,770
=========== ===========
See accompanying notes to financial statements.
SWIFT ENERGY INCOME PARTNERS 1986-D, LTD.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
_________________________________
1995 1994
___________ ____________
REVENUES:
Oil and gas sales $ 198,528 $ 229,607
Interest income 7 3
Other 2,672 2,028
___________ ___________
201,207 231,638
___________ ___________
COSTS AND EXPENSES:
Lease operating 86,560 97,143
Production taxes 10,955 15,679
Depreciation, depletion
and amortization -
Normal provision 78,558 82,264
Additional provision 177,226 --
General and administrative 20,241 23,048
Interest expense 6,040 7,130
___________ ___________
379,580 225,264
___________ ___________
NET INCOME (LOSS) $ (178,373) $ 6,374
=========== ===========
Limited Partners' net income (loss)
per unit
March 31, 1995 $(12.63)
=======
March 31, 1994 $ .45
=======
See accompanying note to financial statements.
SWIFT ENERGY INCOME PARTNERS 1986-D, LTD.
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31,
________________________________
1995 1994
_____________ ______________
CASH FLOWS FROM OPERATING ACTIVITIES:
Income (loss) $ (178,373) $ 6,374
Adjustments to reconcile income (loss) to
net cash provided by operations:
Depreciation, depletion and amortization 255,784 82,264
Deferred revenues (743) 27,708
Change in assets and liabilities:
(Increase) decrease in oil and gas sales receivable 35,861 26,874
Increase (decrease) in accounts payable
and accrued liabilities 20,486 (49,849)
___________ __________
Net cash provided by (used in) operating activities 133,015 93,371
___________ __________
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties (44,072) (45,754)
Proceeds from sales of oil and gas properties -- 43,717
___________ __________
Net cash provided by (used in) investing activities (44,072) (2,037)
___________ __________
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions to partners (63,890) (66,243)
Payment on notes payable (25,000) (25,000)
___________ __________
Net cash provided by (used in) financing activities (88,890) (91,243)
___________ __________
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 53 91
___________ __________
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,468 1,180
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,521 $ 1,271
=========== ==========
Supplemental disclosure of cash flow information:
Cash paid during the period for interest $ 2,954 $ 4,112
=========== ==========
See accompanying notes to financial statements.
SWIFT ENERGY INCOME PARTNERS 1986-D, LTD.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(1) General Information -
The financial statements included herein have been
prepared by the Partnership and are unaudited except for the
balance sheet at December 31, 1994 which has been taken from the
audited financial statements at that date. The financial
statements reflect adjustments, all of which were of a normal
recurring nature, which are, in the opinion of the Managing
General Partner necessary for a fair presentation. Certain
information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been omitted pursuant to the
rules and regulations of the Securities and Exchange Commission
("SEC"). The Partnership believes adequate disclosure is
provided by the information presented. The financial statements
should be read in conjunction with the audited financial
statements and the notes included in the latest Form 10-K.
(2) Deferred Revenues -
Deferred Revenues represent a gas imbalance liability
assumed as part of property acquisitions. The imbalance is
accounted for on the entitlements method, whereby the Partnership
records its share of revenue, based on its entitled amount. Any
amounts over or under the entitled amount are recorded as an
increase or decrease to deferred revenues.
(3) Concentrations of Credit Risk -
The Partnership extends credit to various companies in
the oil and gas industry which results in a concentration of
credit risk. This concentration of credit risk may be affected
by changes in economic or other conditions and may accordingly
impact the Partnership's overall credit risk. However, the
Managing General Partner believes that the risk is mitigated by
the size, reputation, and nature of the companies to which the
Partnership extends credit. In addition, the Partnership
generally does not require collateral or other security to
support customer receivables.
SWIFT ENERGY INCOME PARTNERS 1986-D, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
General
The Partnership was formed for the purpose of investing in
producing oil and gas properties located within the continental
United States. In order to accomplish this, the Partnership goes
through two distinct yet overlapping phases with respect to its
liquidity and results of operations. When the Partnership is
formed, it commences its "acquisition" phase, with all funds
placed in short-term investments until required for such property
acquisitions. The interest earned on these pre-acquisition
investments becomes the primary cash flow source for initial
partner distributions. As the Partnership acquires producing
properties, net cash from operations becomes available for
distribution, along with the investment income. After
Partnership funds have been expended on producing oil and gas
properties, the Partnership enters its "operations" phase.
During this phase, oil and gas sales generate substantially all
revenues, and distributions to partners reflect those revenues
less all associated Partnership expenses. The Partnership may
also derive proceeds from the sale of acquired oil and gas
properties, when the sale of such properties is economically
appropriate or preferable to continued operation.
Liquidity and Capital Resources
The Partnership has completed acquisition of producing oil
and gas properties, expending all of limited partners'
commitments available for property acquisitions.
The Partnership does not allow for additional assessments
from the partners to fund capital requirements. However, funds
are available from partnership revenues, borrowings or proceeds
from the sale of partnership property. The Managing General
Partner believes that the funds currently available to the
Partnership will be adequate to meet any anticipated capital
requirements.
Results of Operations
Oil and gas sales declined $31,079 or 14 percent in the
first quarter of 1995 when compared to the corresponding quarter
in 1994, primarily due to decreased gas prices. A decline in gas
prices of 36 percent or $.74/MCF had a significant impact on
Partnership performance. Also, current quarter oil production
declined 14 percent when compared to first quarter 1994
production volumes, further contributing to decreased revenues.
Increased oil prices of 61 percent or $6.18/BBL partially offset
the revenue declines.
Associated depreciation expense decreased 5 percent or
$3,706.
The Partnership recorded an additional provision in
depreciation, depletion and amortization in the first quarter of
1995 for $177,226 when the present value, discounted at ten
percent, of estimated future net revenues from oil and gas
properties, using the guidelines of the Securities and Exchange
Commission, was below the fair market value originally paid for
oil and gas properties. The additional provision results from
the Managing General Partner's determination that the fair market
value paid for properties may or may not coincide with reserve
valuations determined according to guidelines of the Securities
and Exchange Commission.
During 1995, Partnership revenues and costs will be shared
between the limited partners and general partners in a 90:10
ratio.
SWIFT ENERGY INCOME PARTNERS 1986-D, LTD.
PART II - OTHER INFORMATION
ITEM 5. OTHER INFORMATION
-NONE-
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
SWIFT ENERGY INCOME
PARTNERS 1986-D, LTD.
(Registrant)
By: SWIFT ENERGY COMPANY
Managing General Partner
Date: May 12, 1995 By: /s/ John R. Alden
_____________________ ______________________
John R. Alden
Senior Vice President,
Secretary
and Principal Financial
Officer
Date: May 12, 1995 By: /s/ Alton D. Heckaman, Jr.
_____________________ ______________________
Alton D. Heckaman, Jr.
Vice President, Controller
and Principal Accounting
Officer