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 June 30, 2000
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
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
INDEX
PART I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheets - June 30, 2000 and December 31, 1999 1
Statements of Operations -
Three and Six Months Ended June 30, 2000 and 1999 2
Statement of Partners' Equity -
Six Months Ended June 30, 2000 3
Statements of Cash Flows-
Six Months Ended June 30, 2000 and 1999 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 8
Item 6. Exhibits and Reports on Form 8-K 8
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Balance Sheets
June 30, 2000 and December 31, 1999
<TABLE>
<C> <C> <C>
Assets
2000 1999
(Unaudited)
Current assets:
Cash $ 2,552 2,017
Accounts receivable - oil and gas revenues 176,043 205,111
Total current assets 178,595 207,128
Oil and gas properties, successful
efforts method 7,451,534 7,451,534
Less accumulated depreciation,
depletion, and amortization 3,325,071 3,122,319
4,126,463 4,329,215
$4,305,058 4,536,343
Current Liabilities and Partners' Equity
Current liabilities:
Accrued expenses $ 12,912 31,376
Total current liabilities 12,912 31,376
Partners' Equity 4,292,146 4,504,967
$4,305,058 4,536,343
</TABLE>
See accompanying notes to financial statements.
-1-
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statements of Operations
Three Months and Six Months ended June 30, 2000 and 1999
(Unaudited)
<TABLE>
<C> <C> <C> <C> <C>
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues:
Sales of oil and gas $283,352 $246,307 $568,726 $479,406
Interest income 2,438 1,144 2,438 2,532
285,790 247,451 571,164 481,938
Expenses:
Lifting costs 124,711 102,236 235,969 226,943
Direct administrative cost 104 42 104 49
Depreciation, depletion and
amortization 103,215 106,632 202,752 211,638
228,030 208,910 438,825 438,630
Net income $ 57,760 $ 38,541 $132,339 $ 43,308
Net income per limited and
additional general partner unit $ 60 $ 40 $ 138 $ 45
</TABLE>
See accompanying notes to financial statements.
-2-
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statement of Partners' Equity
Six months ended June 30, 2000
(Unaudited)
<TABLE>
<C> <C> <C> <C>
Limited and
additional Managing
general partners general partner Total
Balance, December 31, 1999 $3,534,155 $ 970,812 $4,504,967
Net income 105,872 26,467 132,339
Distributions to partners (276,129) (69,031) (345,160)
Balance, June 30, 2000 $3,363,898 $ 928,248 $4,292,146
</TABLE>
See accompanying notes to financial statements.
-3-
PDC 1996-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statements of Cash Flows
Six months ended June 30, 2000 and 1999
(Unaudited)
<TABLE>
<C> <C> <C>
2000 1999
Cash flows from operating activities:
Net income $132,339 43,308
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion,
and amortization 202,752 211,638
Changes in operating assets
and liabilities:
Decrease in accounts
receivable - oil and gas revenues 29,068 57,990
Decrease in accrued expenses (18,464) (21,428)
Net cash provided from
operating activities 345,695 291,508
Cash flows from financing activities:
Distributions to partners (345,160) (298,101)
Net cash used by
financing activities (345,160) (298,101)
Net change in cash 535 (6,593)
Cash at beginning of period 2,017 6,712
Cash at end of period $ 2,552 119
</TABLE>
See accompanying notes to financial statements.
-4-
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 1999, 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 six months ended June 30, 2000 are not
necessarily indicative of the results to be expected for the full
year.
3. Oil and Gas Properties
The Partnership follows the successful efforts method of accounting
for the cost of exploring for and developing oil and gas reserves.
Under this method, costs of development wells, including equipment
and intangible drilling costs related to both producing wells and
developmental dry holes, and successful exploratory wells are
capitalized and amortized on an annual basis to operations by the
units-of-production method using estimated proved developed reserves
determined at year end by an independent petroleum engineer. If a
determination is made that an exploratory well has not discovered
economically producible reserves, then its costs are expensed as dry
hole costs.
-5-
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-five wells have been
drilled, of which eighty 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 June 30, 2000 of
$165,683.
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 June 30, 2000 Compared with 1999
Natural gas sales increased approximately 15.0% during the second
quarter of 2000 compared with the same period in 1999 due to higher
average sales prices offset in part by lower sales volumes of natural
gas. While the Partnership experienced a modest net income,
depreciation, depletion and amortization is a non-cash expense and
therefore the Partnership distributed $155,394 to the partners during
the second quarter of 2000.
Six Months Ended June 30, 2000 Compared with 1999
Natural gas sales increased approximately 18.6% during the first
six months of 2000 compared with the same period in 1999 primarily
due to higher average sales prices offset in part by lower sales
volumes of natural gas. While the Partnership experienced a modest
net income, depreciation, depletion and amortization is a non-cash
expense and therefore the Partnership distributed $345,160 to the
partners during the first six months of 2000.
-6-
Year 2000 Issue
PDC, who administers all aspects of the Partnership, experienced
no known disruptions as a result of the year date change and intends
to continue monitoring its critical systems at various other date
changes during the Year 2000.
PDC's expenditures for addressing Year 2000 issues were not
material, nor does the Company expect to incur any significant costs
addressing Year 2000 issues in the future.
-7-
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
June 30, 2000.
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: July 27, 2000 /s/ Steven R. Williams
Steven R. Williams
President
Date: July 27, 2000 /s/ Dale G. Rettinger
Dale G. Rettinger
Executive Vice President
and Treasurer
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