<PAGE>
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 March 31, 2000
/ / 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 / /
<PAGE>
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, 2000 to March 31, 2000.
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 March 31, 2000, 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 $383,690 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.
<PAGE>
12-May-00
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
BALANCE SHEET
AS OF MARCH 31, 2000 and DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARCH 31
2000 December 31 Increase
(unaudited) 1999 (Decrease)
---------------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 261,036 $ 305,963 $ (44,927)
Accounts receivable 305,599 360,833 (55,234)
---------------------------------------------------
TOTAL CURRENT ASSETS 566,635 666,796 (100,161)
Oil and Gas drilling contracts/leases, net of accum. depl. & amort. 5,158,575 5,384,146 (225,571)
---------------------------------------------------
TOTAL ASSETS $5,725,210 $6,050,942 $(325,732)
===================================================
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 26,333 $ 27,081 $ (748)
Partners' Capital 5,698,877 6,023,861 (324,984)
---------------------------------------------------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $5,725,210 $6,050,942 $(325,732)
===================================================
</TABLE>
The notes to Financial Statements are an integral part of this statement.
<PAGE>
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
STATEMENT OF INCOME (Unaudited)
For the three months ended March 31, 2000 and 1999
<TABLE>
<CAPTION>
Three Months Ended
March 31,
REVENUE 2000 1999
- ------- ------------------------------------
<S> <C> <C>
Natural gas sales $383,690 $103,363
Interest income 2,654 92
------------- -------------
Total Revenue 386,344 103,455
EXPENSES
- --------
Well Operating Expense 78,091 14,373
Depletion and depreciation of oil and gas wells and leases 225,573 81,470
General and administrative fees 11,615 2,944
Professional fees 0 5,259
Other 208 589
------------- -------------
Total Expenses 315,487 104,635
------------- -------------
Net Earnings (Loss) $ 70,857 $ (1,180)
============= =============
The notes to Financial Statements are an integral part of this statement.
</TABLE>
<PAGE>
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
STATEMENT OF CASH FLOWS (Unaudited)
For the three months ended March 31, 2000 and 1999
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
INCREASE (DECREASE) IN CASH 2000 1999
---------------------------
<S> <C> <C>
Cash flows from operating activities
Net Earnings (Loss) $70,857 ($1,180)
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depletion and depreciation 225,573 81,470
(Increase) Decrease in accounts receivable 55,234 (59,397)
Increase (Decrease) in accounts payable (749) 8,783
-------- -------
Cash provided by operating activities 350,915 29,676
Cash flows used in financing activities:
Distributions to Partners (395,842) (29,592)
-------- -------
Net Increase (Decrease) in Cash (44,927) 84
Cash at beginning of period 305,963 0
-------- -------
Cash at end of period $261,036 $84
======== =======
</TABLE>
The notes to Financial Statements are an integral part of this statement.
***************
<PAGE>
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
STATEMENT OF CHANGES IN PARTNERS' CAPITAL ACCOUNTS (Unaudited)
For the three months ended March 31, 2000
<TABLE>
<CAPTION>
MANAGING
GENERAL OTHER
PARTNER PARTNERS TOTAL
------------ ----------- ----------
<S> <C> <C> <C>
BALANCE AT JANUARY 1, 2000 ($2,022,335) $8,046,196 $6,023,861
Participation in revenue and expenses:
Net Production Revenues 94,736 210,863 305,599
Interest 823 1,832 2,655
Depletion and depreciation (52,874) (172,699) (225,573)
Other costs (3,665) (8,158) (11,823)
------------ ----------- ----------
Net Earnings 39,020 31,838 70,858
Distributions (73,627) (322,215) (395,842)
------------ ----------- ----------
BALANCE AT March 31, 2000 ($2,056,942) $7,755,819 $5,698,877
=========== =========== ==========
</TABLE>
The notes to Financial Statements are an integral part of this statement.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
1. INTERIM FINANCIAL STATEMENTS
The financial statements as of March 31, 2000 and for the three
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 the 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, 1999
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.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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
THREE MONTHS ENDED MARCH 31, 2000
Natural gas sales revenue for the three months ended March 31, 2000 was up
$280,327 (271%) due primarily to increases in natural gas production which
increased from 58,193 Mcf in the three months ended March 31, 1999 to 161,123
Mcf in the current three months. The increase in gas production results
primarily from new wells turned on-line in the current three months. Natural
gas prices increased by $.69 /Mcf to $2.72/Mcf during the current three
months.
FINANCIAL CONDITION
LIQUIDITY
The increase in cash provided by operating activities and distributions to
partners during the three months ended March 31, 2000 results primarily from
higher cash received from sales of natural gas. The Partnership's working
capital decreased from $639,715 at December 31, 1999 to $540,302 at March 31,
2000. The decrease is attributable to distributions to partners and normal
declines in natural gas production from the levels at the end of 1999 which
result 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.
<PAGE>
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 #7 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: May 15, 2000
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: May 15, 2000
By (Signature and Title): /S/ Tony C. Banks
Tony C. Banks
Vice President and Chief Financial Officer
Date: May 15, 2000
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 261,036
<SECURITIES> 0
<RECEIVABLES> 305,599
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 566,635
<PP&E> 13,704,820
<DEPRECIATION> (8,546,245)
<TOTAL-ASSETS> 5,725,210
<CURRENT-LIABILITIES> 26,333
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 5,725,210
<SALES> 438,023
<TOTAL-REVENUES> 440,677
<CGS> 54,333
<TOTAL-COSTS> 54,333
<OTHER-EXPENSES> 315,487
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 70,857
<INCOME-TAX> 0
<INCOME-CONTINUING> 70,857
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 70,857
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
