<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 SEPTEMBER 30, 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 September 30, 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 in Pennsylvania and Stark and Trumbull
counties in Ohio. As of September 30, 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 $387,191 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 drilling funds will be required.
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. Management does not anticipate that the Partnership will need to borrow.
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>
ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD.
A PENNSYLVANIA LIMITED PARTNERSHIP
BALANCE SHEET
AS OF SEPTEMBER 30, 2000 and DECEMBER 31, 1999
<TABLE>
<CAPTION>
September 30
2000 December 31 Increase
(unaudited) 1999 (Decrease)
-------------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 218,936 $ 305,963 $ (87,027)
Accounts receivable 318,731 360,833 (42,102)
-------------------------------------------------
TOTAL CURRENT ASSETS 537,667 666,796 (129,129)
Oil and Gas drilling contracts/leases,net of accum. depl. & amort. 4,766,096 5,384,146 (618,050)
-------------------------------------------------
TOTAL ASSETS $ 5,303,763 $ 6,050,942 $ (747,179)
=================================================
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 15,450 $ 27,081 $ (11,631)
Partners' Capital 5,288,313 6,023,861 (735,548)
-------------------------------------------------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 5,303,763 $ 6,050,942 $ (747,179)
=================================================
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 INCOME (Unaudited)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
Nine Months Ended Third Quarter Ended
September 30 September 30 September 30 September 30
REVENUE 2000 1999 2000 1999
------- ---------------------------------------------------------------
<S> <C> <C> <C> <C>
Natural gas sales $ 1,131,482 $ 1,124,956 $ 387,191 $ 514,349
Oil Sales 7,837 0 3,190 0
Interest income 7,603 4,664 1,085 4,228
----------------- ----------------- -------------- ------------
Total Revenue 1,146,922 1,129,620 391,466 518,577
EXPENSES
--------
Well Operating Expense 207,093 181,258 66,835 84,671
Depletion and depreciation of oil and gas wells and leases 618,051 855,232 186,688 336,614
General and administrative fees 34,546 25,902 11,250 11,850
Professional fees 9,270 5,491 9,270 (2,700)
Other 558 893 (33) (67)
----------------- ----------------- -------------- ------------
Total Expenses 869,518 1,068,776 274,010 430,368
----------------- ----------------- -------------- ------------
Net Earnings $ 277,404 $ 60,844 $ 117,456 $ 88,209
================= ================= ============== ============
</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 CASH FLOWS (Unaudited)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 and 1999
<TABLE>
<CAPTION>
Nine Months Ended
-----------------
September 30,
-------------
Increase (Decrease) in Cash
---------------------------
2000 1999
----------------- ----------------
<S> <C> <C>
Cash flows from operating activities
Net Earnings $ 277,404 $ 60,844
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depletion and depreciation 618,051 855,232
{Increase}/Decrease in accounts receivable 42,102 (400,088)
Increase/{Decrease} in accounts payable (11,631) 22,706
----------------- ----------------
Cash provided by operating activities 925,926 538,694
Cash flows used in financing activities:
Distributions to Partners (1,012,953) (217,104)
----------------- ----------------
Net Increase/{Decrease} in Cash (87,027) 321,590
Cash at beginning of period 305,963 0
----------------- ----------------
Cash at end of period $ 218,936 $ 321,590
================= ================
</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 NINE MONTHS ENDED SEPTEMBER 30, 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 288,990 643,236 932,226
Interest 2,357 5,246 7,603
Depletion and depreciation (144,868) (473,183) (618,051)
Other costs (13,756) (30,618) (44,374)
------------ ---------- -----------
Net Earnings 132,723 144,681 277,404
Distributions (190,879) (822,075) (1,012,954)
------------ ---------- -----------
BALANCE AT September 30, 2000 $(2,080,491) $7,368,802 $ 5,288,311
============ ========== ===========
</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 September 30, 2000 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 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
NINE MONTHS ENDED SEPTEMBER 30, 2000
The Partnership commenced production from initial wells in January, 1999.
Natural gas sales revenue for the nine months ended September 30, 2000 was up
$6,526 (1%) from the prior year due primarily to changes in natural gas
prices which increased by $.62/Mcf to $2.90/Mcf. Gas production for the nine
months ended September 30, 2000 was 441,465 Mcf, down from 565,283 Mcf in the
prior year. The decrease in gas production results primarily from normal well
declines.
QUARTER ENDED SEPTEMBER 30, 2000
Natural gas sales revenue for the quarter ended September 30, 2000 was down
$127,158 (25%) from the prior year's third quarter due to lower gas
production. Gas production for the quarter ended September 30, 2000 was
133,349 Mcf, down from 240,439 Mcf in the prior year's third quarter. The
decrease in gas production results primarily from normal well declines.
Natural gas prices for the quarter ended September 30, 2000 increased by
$.79/Mcf to $ 3.24/Mcf.
FINANCIAL CONDITION
LIQUIDITY
The increase in cash provided by operating activities and distributions to
partners during the nine months ended September 30, 2000 results primarily
from higher cash received from sales of natural gas. Higher prices for
natural gas production contributed to the increase. The Partnership's working
capital decreased from $639,715 at December 31, 1999 to $522,217 at September
30, 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: November 14, 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: November 14, 2000
By (Signature and Title): /s/ Tony C. Banks
Tony C. Banks
Vice President and Chief Financial Officer
