U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
[ ] TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number 333-62167
Atlas-Energy for the Nineties-Public #7 Ltd.
(Name of small business issuer in its charter)
Pennsylvania 25-1814688
(State or other jurisdiction of ( I.R.S. Employer identification No.)
incorporated or organization)
311 Rouser Road, Moon Township, Pennsylvania 15108
(Address of principal executive offices) (Zip Code)
Issuer's telephone (412) 262-2830
(Former name, former address and former fiscal year, if changed since last
report)
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
Transitional Small Business Disclosure Format (check one):
Yes X No
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PART I
Item 1. Financial Statements
The unaudited Financial Statements of Atlas-Energy for the Nineties-Public
#7 Ltd. (the "Partnership") for the period January 1, 1999 to March 31, 1999
Item 2. Description of Business
The Partnership has spudded approximately 53 net wells to
the Clinton/Medina formation in Mercer and Lawrence Counties, Pennsylvania
and Stark and Trumbull Counties, Ohio. As of March 31, 1999, 29.5 net
wells are in production. The first quarterly distribution will be on
July 10, 1999 for natural gas production during January, February, March
and April, 1999.
Net Production revenue for the three months was $103,363 which includes
landowners royalties Expenses for this period include $75.00 per month
per well for administrative costs and $275.00 per month per well for
pumpers fees.
For the next twelve months management believes that the Partnership has
adequate capital. No other wells will be drilled and, therefore, no
additional funds will be required.
Although management does not anticipate that the Partnership will have to
do so, any additional funds which may be required will be obtained from
production revenues from Partnership wells or from borrowings by the
Partnership from Atlas or its affiliates, although Atlas is not
contractually committed to make such a loan. No borrowings will be
obtained from third parties.
PART II
Item 1. Legal Proceeding
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Securities Holders
None
Item 5. Other Matters
None
Item 6. Reports on Form 8-K
The registrant filed no reports on Form 8-K during the last
quarter of the period covered by this report.
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UNAUDITED FINANCIAL STATEMENTS
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
CONSOLIDATED BALANCE SHEET (UNAUDITED)
As of March 31, 1999 and December 31, 1998
BALANCE SHEET - (UNAUDITED)
ASSETS 3/31/99 12/31/98 Increase
(Decrease)
Cash $ 84 $ -0- $ 84
Accounts receivable 88,989 29,592 59,397
------- ------- ---------
TOTAL CURRENT ASSETS 89,073 29,592 59,481
Oil and gas wells and leases 13,961,066 14,042,536 (81,470)
Organizational and syndication costs -0- 1,798,253 (1,798,253)
---------- ---------- ----------
TOTAL ASSETS $14,050,139 $15,870,381$(1,820,242)
========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 8,782 -0- 8,782
Partners' capital 14,041,357 15,870,381 (1,829,024)
---------- ---------- ---------
TOTAL LIABILITIES AND PARTNERS CAPITAL $14,050,139 $15,870,381 $(1,820,242)
========== ========== =========
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ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
STATEMENT OF INCOME
For the three months ended March 31, 1999 and 1998
Three Months Ended First Quarter Ended
March 31, March 31,
1999 1998 1999 1998
------------------ -------------------
REVENUE
Natural gas sales $103,363 $ -0- $103,363 $ -0-
Interest Income 92 -0- 92 -0-
---------- -------- --------- --------
Total Revenue 103,455 -0- 103,455 -0-
EXPENSES
Well operating expense 14,373 -0- 14,373 -0-
Depletion and depreciation
of oil and gas wells and
leases 81,470 -0- 81,470 -0-
General and administrat. fees 2,944 -0- 2,944 -0-
Professional fees 5,259 -0- 5,259 -0-
Other 589 -0- 589 -0-
---------- ------- ------- -------
Total Expenses 104,635 -0- 104,635 -0-
---------- ------- ------- -------
NET (LOSS) $ (1,180) $ -0- $ (1,180) $ -0-
========== ======== ========= ========
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ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
STATEMENT OF CASH FLOWS (UNAUDITED)
For the three months ended March 31, 1999 and 1998
Three Months Ended
March 31,
1999 1998
--------------------
Increase (Decrease) in Cash
Cash flows from operating activities
Net (Loss) $ (1,180) $ -0-
Adjustments to reconcile net income to net cash
provided by operating activities:
Depletion and depreciation 81,470 -0-
(Increase) accounts receivable (59,397) -0-
Increase in accounts payable 8,783 -0-
----------- ----------
Net cash provided by operating activities 29,676 -0-
Cash flows used in financing activities:
Distributions to Partners (29,592) -0-
---------- ---------
Net Increase in Cash 84 -0-
Cash at beginning of period -0- -0-
---------- ---------
Cash at end of period $ 84 $ -0-
========== =========
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ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
STATEMENT OF CHANGES IN PARTNERS' CAPITAL ACCOUNTS
For the three months ended March 31, 1999
MANAGING
GENERAL OTHER
PARTNER PARTNERS TOTAL
BALANCE AT JANUARY 1, 1999 $3,852,439 $12,017,942 $15,870,381
Participation in revenue and expenses:
Net production revenues 27,587 61,403 88,990
Interest 29 63 92
Depletion and depreciation ( 11,929) ( 69,541) ( 81,470)
Organization & syndication write-off (1,798,253) -0- (1,798,253)
Other costs ( 2,725) ( 6,066) ( 8,791)
----------- ---------- --------
Net (loss) (1,785,291) ( 14,141) (1,799,432)
Distributions -0- ( 29,592) ( 29,592)
----------- ----------- ----------
BALANCE AT MARCH 31, 1999 $2,067,148 $11,974,209 $14,041,357
=========== ========== ==========
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
March 31, 1999
1. INTERIM FINANCIAL STATEMENTS
The financial statements as of March 31, 1999 and for the three months then
ended have been prepared by the management of the Partnership without
audit, pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been omitted pursuant to such rules and
regulations, although the Partnership believes that the disclosures are
adequate to make the information presented not misleading. These financial
statements should be read in conjunction with the audited December 31, 1998
financial statements. In the opinion of management, all adjustments
(consisting of only normal recurring accruals) considered necessary for
presentation have been included.
2. SIGNIFICANT ACCOUNTING POLICIES
The Partnership uses the successful efforts method of accounting for oil
and gas activities. Costs to acquire mineral interests in oil and gas
properties and drill and equip wells are capitalized. Oil and gas
properties are periodically assessed and when unamortized costs exceed
expected future net cash flows, a loss is recognized by a charge to income.
Capitalized costs of oil and gas wells and leases are depreciated,
depleted and amortized by the unit of production method.
In 1998, the AICPA issued Statement of Position 98-5 ("SOP 98-5"), Reporting
on the Costs of Start-Up Activities. This statement requires costs of
start-up activities and organization costs, as defined, to be expensed
as incurred. The partnership is required to adopt the provisions of SOP
98-5 effective January 1, 1999 and as a result has written-off the
unamortized organization and syndication costs as a charge against
Partners' Capital.
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MANAGEMENT'S DISCUSSION AND ANALYSIS
Management's discussion and analysis should be read in conjunction with the
financial statements and notes thereto.
Results of Operations
- ---------------------
Three Months (Quarter) Ended March 31, 1999
- -------------------------------------------
The Partnership commenced production in January, 1999. Net production
revenue for the three months ended March 31, 1999 amounted to
$103,363. The Partnership's net production revenue of $103,363 resulted
from the production of 58,193 Mcf's at an average rate of $2.03/Mcf, net
of operating costs.
Financial Position
- ------------------
Liquidity
- ---------
The partnership's working capital increased 171% from $29,592 at
December 31, 1998 to $80,290 at March 31, 1999. The increase is
attributable to the commencement of natural gas production for new wells
turned on-line during the quarter, which resulted in higher receivables
for gas produced but not yet sold at the end of the reporting period.
Capital Resources
- -----------------
There were no new material commitments for capital expenditures during the
period and the Partnership does not expect any in the foreseeable future.
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Atlas-Energy for the Nineties--Public #7 Ltd.
By (Signature and Title): Atlas Resources, Inc.,
Managing General Partner
By (Signature and Title): /s/ James R. O'Mara
James R. O'Mara
President, Chief Executive Officer and a Director
Date: March 31, 1999
In Accordance with the Exchange Act, this report has been signed by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By (Signature and Title): /s/ James R. O'Mara
James R. O'Mara
President, Chief Executive Officer and a Director
Date: March 31, 1999
By (Signature and Title): /S/ Tony C. Banks
Tony C. Banks
Vice President and Chief Financial Officer
Date: March 31, 1999
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