CONFORMED COPY
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities and Exchange Act of 1934
For the period ended September 30, 1997
or
[ ] Transition Report Pursuant to Section 13 of 15(d) of
the Securities and Exchange Act of 1934
For the transition period from to
Commission file number 033-63635-04
I.R.S. Employer Identification Number 55-0751154
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
103 East Main Street
Bridgeport, WV 26330
Telephone: (304) 842-6256
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 XX No
<PAGE>
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
INDEX
PART I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheets September 30, 1997 and December 31, 1996 1
Statement of Operations -
Three Months and Nine Months Ended September 30, 1997 2
Statement of Partners' Equity -
Nine Months Ended September 30, 1997 3
Statement of Cash Flows -
Nine Months Ended September 30, 1997 4
Notes to Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
PART II OTHER INFORMATION
Item 1. Legal Proceedings 7
Item 6. Exhibits and Reports on Form 8-K 7
<PAGE>
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Balance Sheets
September 30, 1997 and December 31, 1996
<TABLE>
<S> <S> <S>
Assets
1997 1996
(Unaudited)
Current assets:
Cash $ 1,424 $ 20,000
Accounts receivable - oil and gas revenues 325,489 -
Total current assets 326,913 20,000
Oil and gas properties, successful
efforts method
Oil and gas properties 16,620,628 -
Unevaluated properties - 16,620,628
Less accumulated depreciation, depletion,
and amortization 494,343 -
16,126,285 16,620,628
$16,453,198 $16,640,628
Current Liabilities and Partners' Equity
Current liabilities:
Accrued expenses - $ 17,166
Total current liabilities - 17,166
Partners' Equity 16,453,198 16,623,462
$16,453,198 $16,640,628
</TABLE>
See accompanying notes to financial statements.
-1-
<PAGE>
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statement of Operations
Three months and Nine Months ended September 30, 1997
(Unaudited)
<TABLE>
<S> <S> <S>
Three Months Ended Nine Months Ended
September 30, 1997 September 30, 1997
Revenues:
Sales of oil and gas $460,218 $818,714
Interest income 104 104
460,322 818,818
Expenses:
Lifting cost 91,660 143,613
Direct administrative cost 14 1,515
Depreciation, depletion, and
amortization 263,753 494,343
355,427 639,471
Net income $104,895 $179,347
Net income per limited
and additional
general partner unit $ 110 $ 188
</TABLE>
See accompanying notes to financial statements.
-2-
<PAGE>
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statement of Partners' Equity
Nine months ended September 30, 1997
(Unaudited)
<TABLE>
<S> <S> <S> <S>
Limited and
additional Managing
general partners general partner Total
Balance, December 31, 1996 $13,298,769 $3,324,693 $16,623,462
Net income 143,479 35,868 179,347
Distributions to partners (279,690) (69,921) (349,611)
Balance, September 30, 1997 $13,162,558 $3,290,640 $16,453,198
</TABLE>
See accompanying notes to financial statements.
-3-
<PAGE>
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statement of Cash Flows
Nine months ended September 30, 1997
(Unaudited)
<TABLE>
<S> <S>
Cash flows from operating activities:
Net income $179,347
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion,
and amortization 494,343
Changes in operating assets
and liabilities:
Increase in accounts receivable - (325,489)
oil and gas revenues
Decrease in accrued expenses (17,166)
Net cash provided from
operating activities 331,035
Cash flows from financing activities:
Distributions to partners (349,611)
Net cash used by
financing activities (349,611)
Net change in cash (18,576)
Cash at beginning of period 20,000
Cash at end of period $ 1,424
</TABLE>
See accompanying notes to financial statements.
-4-<PAGE>
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Notes to Financial Statements
(Unaudited)
1. Accounting Policies
Reference is hereby made to the Partnership's Annual Report on Form 10-K
for 1996, which contains a summary of major accounting policies followed by
the Partnership in the preparation of its financial statements. These
policies were also followed in preparing the quarterly report included
herein.
2. Basis of Presentation
The Management of the Partnership believes that all adjustments (consisting
of only normal recurring accruals) necessary to a fair statement of the
results of such periods have been made. The results of operations for the
nine months ended September 30, 1997 are not necessarily indicative of the
results to be expected for the full year.
3. Oil and Gas Properties
Oil and Gas Properties are reported on the successful efforts method.
-5-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
The Partnership was funded on December 31, 1996 with initial Limited
and Additional General Partner contributions of $15,301,726 and the
Managing General Partner contributed $3,328,126 in accordance with the
Agreement. Syndication and management fee costs of $1,989,224 were
incurred leaving available capital of $16,640,628 for Partnership
activities.
The Partnership began exploration and development activities
subsequent to the funding of the Partnership and completed well drilling
activities by March 31, 1997. Eighty-four wells have been drilled, of
which seventy-nine have been completed as producing wells.
Operations will be conducted with available funds and revenues
generated from oil and gas activities. No bank borrowings are anticipated.
The Partnership had net working capital at September 30, 1997 of
$326,913.
The Partnership's revenues from oil and gas will be affected by
changes in prices. As a result of changes in federal regulations, gas
prices are highly dependent on the balance between supply and demand. The
Partnership's gas sales prices are subject to increase and decrease based
on various market sensitive indices.
Results of Operations
Three Months Ended September 30, 1997
A total of fifty-nine of the Partnership's seventy-nine prodcutive
wells were producing natural gas for the entire three months ended
September 30, 1997. The remaining twenty wells are scheduled to be put
into service during the fourth quarter of 1997. While the Partnership
experienced a modest net income of $104,895, depreciation, depletion, and
amorization is a non-cash expense and therefore the Partnership distributed
$293,032 to the partners during the third quarter of 1997.
Nine Months Ended September 30, 1997
The Partnership began and completed exploration and development
activities during the first nine months of 1997. Oil and gas sales
commenced during the first quarter and cash distributions to the partners
commenced during the second quarter. A total of fifty-nine of the
Partnership's seventy-nine productive wells are producing natural gas as of
September 30, 1997. While the Partnership experienced a net income of
$179,347, depreciation, depletion and amortization is a non-cash expense
and therefore the Partnership distributed $349,611 to the partners during
the first nine months of 1997.
-6-
<PAGE>
CONFORMED COPY
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 6. Exhibits and Reports on Form 8-K
(a) None.
(b) No reports on Form 8-K have been filed during the quarter ended
September 30, 1997.
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 thereunto duly authorized.
PDC 1996-D Limited Partnership
(Registrant)
By its Managing General Partner
Petroleum Development Corporation
Date: November 10, 1997 /s/ Steven R. Williams
Steven R. Williams
President
Date: November 10, 1997 /s/ Dale G. Rettinger
Dale G. Rettinger
Executive Vice President
and Treasurer
-7-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 1,424
<SECURITIES> 0
<RECEIVABLES> 325,489
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 326,913
<PP&E> 16,620,628
<DEPRECIATION> 494,343
<TOTAL-ASSETS> 16,453,198
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 16,453,198
<SALES> 818,714
<TOTAL-REVENUES> 818,818
<CGS> 143,613
<TOTAL-COSTS> 639,471
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 179,347
<INCOME-TAX> 0
<INCOME-CONTINUING> 179,347
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 179,347
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
