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 Sept 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 333-62167
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
- -----------------------------------------------------------------------------
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 Sept 30, 1999
Item 2. Description of Business
The Partnership has placed into production 57.5 net wells to
the Clinton/Medina formation in Mercer and Lawrence counties, Pennsylvania
and Stark and Trumbull counties in Ohio. As of Sept. 30, 1999, all 57.5
net wells are in production. The first quarterly distribution was on
July 10, 1999 for natural gas production during January, February, March
and April, 1999.
Natural gas sales revenue for the three months was $514,349 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.
- -----------------------------------------------------------------------------
UNAUDITED FINANCIAL STATEMENTS
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
BALANCE SHEET
As of Sept 30, 1999 and December 31, 1998
BALANCE SHEET
ASSETS 09/30/99 12/31/98 Increase
(unaudited) (decrease)
Cash $ 321,590 $ - $321,590
Accounts receivable 429,680 29,592 400,088
------- ------- ---------
TOTAL CURRENT ASSETS 751,270 29,592 721,678
Oil and gas drilling contracts/leases
,net of accum. depl. & amort. 13,116,968 14,042,536 (925,568)
Organizational/syndication costs (note 3) -0- 1,798,253 (1,798,253)
---------- ---------- ----------
TOTAL ASSETS $13,868,238 $15,870,381$(2,002,143)
========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 22,706 $ - $ 22,706
Partners' capital 13,845,532 15,870,381 (2,024,849)
---------- ---------- ----------
TOTAL LIABILITIES AND PARTNERS CAPITAL $13,868,238 $15,870,381$(2,002,143)
========== ========== ==========
The notes to Financial Statements are an integral part of this statement.
- --------------------------------------------------------------------------
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
STATEMENT OF INCOME (Unaudited)
For the nine months ended Sept 30, 1999 and 1998
Nine Months Ended Third Quarter Ended
Sept 30, Sept 30,
1999 1998 1999 1998
------------------ -------------------
REVENUE
Natural gas sales $1,124,956 $- $514,349 $-
Interest Income 4,664 - 4,228 -
--------- ----- ------- ----
Total Revenue 1,129,620 - 518,577 -
EXPENSES
Well operating expense 181,258 - 84,671 -
Depletion and depreciation
of oil and gas wells and
leases 855,232 - 336,614 -
General and administ. fees 25,902 - 11,850 -
Professional fees 5,491 - (2,700) -
Amortiza. of organ/synd costs -0- - - -
Other 893 - (67) -
---------- ------- -------- -------
Total Expenses 1,068,776 - 430,368 -
---------- ------- --------- -------
Earnings before cumulative
effect of chg. in acctg.
principle 60,844 - 88,209 -
Cumulative effect of chg.
in acctg. principle(Note3) (1,798,253) -0- -0- -0-
----------- ------ -------- -------
Net Earnings (Loss) $(1,737,409) $ - $88,209 $ -
============ ========= ======== ======
The notes to Financial Statements are an integral part of this statement.
- -----------------------------------------------------------------------------
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 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 Earnings ($ 1,737,409) $-
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Cumulative effect of change in acctg. principle 1,798,253 -0-
Depletion and depreciation 855,232 0
(Increase) accounts receivable (400,088) 0
Increase in accounts payable 22,706 0
----------- ----------
Cash provided by operating activities 538,694 0
Cash flows used in financing activities:
Distributions to Partners (217,104) 0
---------- ---------
Net Increase in Cash 321,590 0
Cash at beginning of period 0 0
---------- ---------
Cash at end of period $ 321,590 $ 0
========== =========
Noncash Financing Activity:
- --------------------------
Adjustments to partners' capital
for final drilling costs (70,336) 0
========== ========
The notes to Financial Statements are an integral part of this statement.
- -----------------------------------------------------------------------------
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 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 $3,852,439 $12,017,942 $15,870,381
Adjustments to partners' capital
for final drilling costs:
Leaseholds (9,000) 0 (9,000)
Tangible costs (31,289) (30,047) (61,336)
Participation in revenue and expenses:
Net production revenues 292,546 651,152 943,698
Interest 1,446 3,218 4,664
Depletion and depreciation (115,884) (739,348) (855,232)
Other costs ( 10,009) ( 22,277) (32,286)
----------- ---------- --------
Earnings before cumulative
effect of change in acctg.
principle 168,099 (107,255) 60,844
Cumulative effect of chg.
in acctg. principle (1,798,253) -0- (1,798,253)
Distributions (34,877) (182,227) (217,104)
----------- ----------- ----------
BALANCE AT Sept 30, 1999 $ 2,147,119 $11,698,414 $13,845,532
=========== ========== =============
The notes to Financial Statements are an integral part of this statement.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
Sept 30, 1999
1. INTERIM FINANCIAL STATEMENTS
The financial statements as of Sept 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 #7 LTD.
Management's discussion and analysis should be read in conjunction with the
financial statements and notes thereto.
Results of Operations
- ---------------------
Nine Months Ended Sept 30, 1999
- -------------------------------------------
The Partnership commenced production in January, 1999. Natural gas sales
revenue for the nine months ended Sept 30,1999 amounted to $1,124,956 based
on gas production of 565,283 Mcf. The average sales price for gas
production during this period was $2.28/Mcf.
Quarter Ended Sept 30, 1999
Natural gas sales revenue for the three months ended Sept 30, 1999 amounted to
$514,349. Gas production was 240,439 Mcf; and the average sales price was
$2.45/Mcf.
Financial Condition
- -------------------
Liquidity
- ---------
Cash provided by operating activities during the nine months ended
Sept 30, 1999 results primarily from sales of natural gas. The
partnership's working capital increased from $29,592 at December 31, 1998
to $728,564 at Sept 30, 1999. The increase is attributable to the
commencement of natural gas production for new wells turned on-line
during the current quarter, which resulted in higher 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.
By (Signature and Title): /s/ James R. O'Mara
James R. O'Mara
President, Chief Executive Officer and a Director
Date: Sept 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: Sept 30, 1999
By (Signature and Title): /S/ Tony C. Banks
Tony C. Banks
Vice President and Chief Financial Officer
Date: Sept 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> 321,590
<SECURITIES> 0
<RECEIVABLES> 429,680
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 751,270
<PP&E> 13,704,818
<DEPRECIATION> (587,850)
<TOTAL-ASSETS> 13,868,238
<CURRENT-LIABILITIES> 22,706
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 13,868,238
<SALES> 1,286,511
<TOTAL-REVENUES> 1,291,175
<CGS> 161,554
<TOTAL-COSTS> 161,554
<OTHER-EXPENSES> 1,004,942
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 124,679
<INCOME-TAX> 0
<INCOME-CONTINUING> 124,679
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> (1,798,253)
<NET-INCOME> (1,673,574)
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
