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 March 31, 1998
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 - March 31, 1998 and December 31, 1997 1
Statements of Operations -
Three Months Ended March 31, 1998 and 1997 2
Statements of Partners' Equity -
Three Months Ended March 31, 1998 3
Statement of Cash Flows-
Three Months Ended March 31, 1998 and 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
March 31, 1998 and December 31, 1997
<TABLE>
<S> <S> <S>
Assets
1998 1997
(Unaudited)
Current assets:
Cash $ 4,704 2,756
Accounts receivable - oil and gas revenues 309,291 450,068
Total current assets 313,995 452,824
Oil and gas properties, successful
efforts method 16,620,628 16,620,628
Less accumulated depreciation,
depletion, and amortization 1,260,416 972,229
15,360,212 15,648,399
$15,674,207 16,101,223
Current Liabilities and Partners' Equity
Current liabilities:
Accrued expenses $ 41,951 41,951
Total current liabilities 41,951 41,951
Partners' equity 15,632,256 16,059,272
$15,674,207 16,101,223
</TABLE>
See accompanying notes to financial statements.
-1-
<PAGE>
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statements of Operations
Three months ended March 31, 1998 and 1997
(Unaudited)
<TABLE>
<S> <S> <S>
1998 1997
Revenues:
Sales of oil and gas $492,153 74,231
Interest income 2,004 -
494,157 74,231
Expenses:
Lifting cost 97,593 7,100
Direct administration cost 56 -
Depreciation, depletion, and amortization 288,187 35,917
385,836 43,017
Net income $108,321 31,214
Net income per limited and additional
general partner unit $ 113 33
</TABLE>
See accompanying notes to financial statements.
-2-
<PAGE>
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statement of Partners' Equity
Three months ended March 31, 1998
(Unaudited)
<TABLE>
<S> <S> <S> <S>
Limited and
additional Managing
general partners general partner Total
Balance, December 31, 1997 $12,847,417 3,211,855 16,059,272
Net income 86,657 21,664 108,321
Distributions to partners (428,270) (107,067) (535,337)
Balance, March 31, 1998 $12,505,804 3,126,452 15,632,256
</TABLE>
See accompanying notes to financial statements.
-3-
<PAGE>
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statements of Cash Flows
Three months ended March 31, 1998 and 1997
(Unaudited)
<TABLE>
<S> <S> <S>
1998 1997
Cash flows from operating activities:
Net income $ 108,321 31,214
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation, depletion, and
amortization 288,187 35,917
Changes in operating assets and
liabilities:
Decrease (increase) in accounts receivable -
oil and gas revenues 140,777 (67,131)
Net cash provided from
operating activities 537,285 -
Cash flow from financing activities:
Distributions to partners (535,337) -
Net cash used by financing activities (535,337) -
Net change in cash 1,948 -
Cash at beginning of period 2,756 20,000
Cash at end of period $ 4,704 20,000
</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 1997, which contains a summary of significant 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
three months ended March 31, 1998 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 March 31, 1998 of $272,044.
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
Revenue and expenses during the first quarter of 1998 include natural
gas sales and related expenses for all of the Partnership's wells. During
the same period in 1997 all of the wells were not yet turned into the line
and producing. The Partnership distributed $535,337 to the partners during
the first quarter of 1998.
Year 2000 Issue
PDC, who administers all aspects of the Partnership, has assessed the
extent of Year 2000 Issues affecting PDC and the Partnership. PDC believes
that the new computer system, including operating software currently being
installed along with modifications being made by PDC's computer technicians
will address the dating system flaw inherent in most operating systems.
PDC expects to be fully Year 2000 Compliant by the end of 1998. PDC does
not currently expect to charge the Partnership for any portion of PDC's
cost to become Year 2000 Compliant.
-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
March 31, 1998.
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: May 14, 1998 /s/ Steven R. Williams
Steven R. Williams
President
Date: May 14, 1998 /s/ Dale G. Rettinger
Dale G. Rettinger
Executive Vice President
and Treasurer
-7-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 4,704
<SECURITIES> 0
<RECEIVABLES> 309,291
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 313,995
<PP&E> 16,620,628
<DEPRECIATION> 1,260,416
<TOTAL-ASSETS> 15,674,207
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 15,674,207
<SALES> 492,153
<TOTAL-REVENUES> 494,157
<CGS> 97,593
<TOTAL-COSTS> 385,836
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 108,321
<INCOME-TAX> 0
<INCOME-CONTINUING> 108,321
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 108,321
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
