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 September 30, 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 333-31681
Atlas-Energy for the Nineties-Public #6 Ltd.
(Name of small business issuer in its charter)
Pennsylvania 23-2888337
(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
#6 Ltd. (the "Partnership") for the period January 1, 1999 to September 30,
1999
Item 2. Description of Business
The Partnership has placed into production 44.45 net wells to
the Clinton/Medina formation in Mercer and Lawrence Counties, Pennsylvania.
As of September 30, 1999, all 44.45 net wells are in production. The first
quarterly distribution was on June 8, 1998 for natural gas production
during January, February and March, 1998.
Natural gas sales revenue for the three months was $367,384 which includes
landowner 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 #6 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
BALANCE SHEET
As of September 30, 1999 and December 31, 1998
BALANCE SHEET
ASSETS 09/30/99 12/31/98 Increase
(unaudited) (decrease)
Cash $ 7,784 $ 7,960 $ (176)
Accounts receivable 322,803 444,226 (121,423)
------- ------- ---------
TOTAL CURRENT ASSETS 330,587 452,186 (121,599)
Oil and gas drilling contracts/leases
,net of accum. depl. & amort. 8,420,840 9,242,427 (821,587)
Organizational/syndication costs (note 3) -0- 1,325,501 (1,325,501)
---------- ---------- ----------
TOTAL ASSETS $ 8,751,427 $11,020,114 $(2,268,687)
========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 10,001 $ 17,725 $ (7,724)
Partners' capital 8,741,426 11,002,389 (2,260,963)
---------- ---------- ----------
TOTAL LIABILITIES AND PARTNERS CAPITAL $ 8,751,427 $11,020,114 $(2,268,687)
========== ========== ==========
The notes to Financial Statements are an integral part of this statement.
- --------------------------------------------------------------------------
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #6 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
STATEMENT OF INCOME (Unaudited)
For the nine months ended September 30, 1999 and 1998
Nine Months Ended Third Quarter Ended
Sept 30, Sept 30,
1999 1998 1999 1998
------------------ -------------------
REVENUE
Natural gas sales $1,121,756 $1,214,504 $367,384 $563,000
Interest Income 7,200 2,680 1,888 2,243
---------- ---------- --------- --------
Total Revenue 1,128,956 1,217,184 369,272 565,243
EXPENSES
Well operating expense 140,900 154,050 44,580 74,180
Depletion and depreciation
of oil and gas wells and
leases 821,588 956,381 240,382 462,913
General and administ. fees 29,291 21,615 10,001 10,197
Professional fees 7,663 10,233 (232) 80
Amortiza. of organ/synd costs -0- 137,120 -0- 66,389
Other 1,198 794 400 183
---------- ------- ------- -------
Total Expenses 1,000,640 1,280,193 295,131 613,942
---------- ------- ------- -------
Earnings before cumulative
effect of chg. in acctg.
principle 128,316 (63,009) 74,141 (48,699)
Cumulative effect of chg.
in acctg. principle(Note3) (1,325,501) -0- -0- -0-
----------- ------ -------- -------
Net Earnings (Loss) $(1,197,185) $(63,009) $74,141 $(48,699)
============ ========= ======== =========
The notes to Financial Statements are an integral part of this statement.
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #6 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
STATEMENT OF CASH FLOWS (UNAUDITED)
For the nine months ended Sept 30, 1999 and 1998
Nine Months Ended
Sept 30,
1999 1998
--------------------
Increase (Decrease) in Cash
Cash flows from operating activities
Net (Loss) ($ 1,197,185) ($63,009)
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Cumulative effect of change in acctg. principle 1,325,501 -0-
Depletion and depreciation 821,588 956,381
Amortization of organizational/synd.costs -0- 137,120
Decrease (Increase) accounts receivable 121,423 (470,744)
Increase (Decrease) in accounts payable (7,724) 3,915
----------- -----------
Cash provided by operating activities 1,063,603 563,663
Cash flows used in financing activities:
Distributions to Partners (1,063,779) (582,470)
---------- ----------
Net Decrease in Cash (176) (18,807)
Cash at beginning of period 7,960 19,459
---------- ---------
Cash at end of period $ 7,784 $ 652
========== =========
The notes to Financial Statements are an integral part of this statement.
- -----------------------------------------------------------------------------
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #6 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
STATEMENT OF CHANGES IN PARTNERS' CAPITAL ACCOUNTS (Unaudited)
For the nine months ended Sept 30, 1999
MANAGING
GENERAL OTHER
PARTNER PARTNERS TOTAL
BALANCE AT JANUARY 1, 1999 $1,867,146 $9,135,243 $11,002,389
Participation in revenue and expenses:
Net production revenues 245,214 735,642 980,856
Interest 1,800 5,400 7,200
Depletion and depreciation ( 195,477) ( 626,110) (821,587)
Amortization 0 0 0
Other costs ( 9,538) ( 28,614) (38,152)
----------- ---------- --------
Earnings before cumulative
effect of change in acctg.
principle 41,999 86,318 128,317
Cumulative effect of chg.
in acctg. principle (1,325,501) -0- (1,325,501)
Distributions (265,945) ( 797,834) (1,063,779)
----------- ----------- ----------
BALANCE AT Sept 30, 1999 $ 317,699 $8,423,727 $ 8,741,426
=========== ========== =============
The notes to Financial Statements are an integral part of this statement.
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #6 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
Sept 30, 1999
1. INTERIM FINANCIAL STATEMENTS
The financial statements as of September 30, 1999 and for the nine 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.
3. REPORTING ON THE COSTS OF START-UP ACTIVITIES
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 was required to adopt the provisions of SOP 98-5
effective January 1, 1999 and as a result has written-off the unamortized
balance of Organizational/Syndication costs as of that date.
- -----------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
ATLAS-ENERGY FOR THE NINETIES-PUBLIC #6 LTD.
Management's discussion and analysis should be read in conjunction with the
financial statements and notes thereto.
Results of Operations
- ---------------------
Nine Months Ended September 30, 1999
- -------------------------------------------
Natural gas sales revenue for the nine months ended September 30, 1999 was
down $92,748 (8%) due primarily to declines in natural gas production which
decreased from 657,745 Mcf in the nine months ended Sept 30, 1998 to 586,848
Mcf in the current nine months. The decrease in gas production results
primarily from normal declines in well production in the current nine months.
Natural gas prices increased by $.07/Mcf to $2.18/Mcf during the current
nine months.
Quarter Ended Sept 30, 1999
- ---------------------------
Natural gas sales revenue for the three months ended Sept 30, 1999 was down
due primarily to normal declines in natural gas production from 318,377 Mcf
in the three months ended Sept 30, 1998 to 171,701 Mcf in the current three
months. Natural gas prices increased $.43/Mcf to $2.45/Mcf in the current
three months.
Financial Condition
- -------------------
Liquidity
- ---------
The increase in cash provided by operating activities and distributions to
partners during the nine months ended Sept 30, 1999 results primarily from
higher cash received from sales of natural gas. The partnership's
working capital decreased 26% from $434,461 at December 31, 1998 to
$320,586 at Sept 30, 1999. The decrease is attributable to normal declines
in natural gas production from the levels at the end of 1998 which resulted
in lower receivables in connection with sales of gas produced.
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 #6 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: September 30, 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: September 30, 1999
By (Signature and Title): /S/ Tony C. Banks
Tony C. Banks
Vice President and Chief Financial Officer
Date: September 30, 1999
- ------------------------------------------------------------------------
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> Sep-30-1999
<CASH> 7,784
<SECURITIES> 0
<RECEIVABLES> 322,803
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 330,587
<PP&E> 10,355,660
<DEPRECIATION> (1,934,820)
<TOTAL-ASSETS> 8,751,427
<CURRENT-LIABILITIES> 10,001
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 8,751,427
<SALES> 1,281,638
<TOTAL-REVENUES> 1,288,838
<CGS> 159,882
<TOTAL-COSTS> 159,882
<OTHER-EXPENSES> 1,000,640
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 128,316
<INCOME-TAX> 0
<INCOME-CONTINUING> 128,316
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> (1,325,501)
<NET-INCOME> (1,197,185)
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