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 September 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 333-41977-04
I.R.S. Employer Identification Number 55-0757539
PDC 1998-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 1998-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
INDEX
<TABLE>
<C> <C>
PART I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheets - September 30, 2000 (unaudited)
and December 31, 1999 1
Statements of Operations -
Three and Nine Months Ended September 30, 2000
and 1999 (unaudited) 2
Statement of Partners' Equity -
Nine Months Ended September 30, 2000 (unaudited) 3
Statements of Cash Flows-
Nine Months Ended September 30, 2000
and 1999 (unaudited) 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
</TABLE>
PDC 1998-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Balance Sheets
September 30, 2000 and December 31, 1999
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Assets
2000 1999
(Unaudited)
Current assets:
Cash $ 7,678 $ 8,038
Accounts receivable - oil and gas revenues 313,403 366,296
Total current assets 321,081 374,334
Oil and gas properties, successful
efforts method 10,123,711 10,123,711
Less accumulated depreciation, depletion,
and amortization 1,799,925 1,134,611
8,323,786 8,989,100
$ 8,644,867 $ 9,363,434
Current Liabilities and Partners' Equity
Current liabilities:
Accrued expenses $ 12,438 $ 34,302
Total current liabilities 12,438 34,302
Partners' Equity 8,632,429 9,329,132
$ 8,644,867 $ 9,363,434
See accompanying notes to financial statements.
</TABLE>
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PDC 1998-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statements of Operations
Three months and Nine months ended September 30, 2000 and 1999
(Unaudited)
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Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Revenues:
Sales of oil and gas $ 463,858 $ 377,280 $1,694,224 $580,986
Transportation fee 2,187 - 6,574 -
466,045 377,280 1,700,798 580,986
Expenses:
Exploratory dry hole costs - - - 1,357,054
Lifting cost 196,010 104,246 712,073 164,413
Direct administrative cost 11 - 11 25
Depreciation, depletion,
and amortization 206,194 293,009 665,314 488,284
402,215 397,255 1,377,398 2,009,776
Net income (loss) $ 63,830 $ (19,975)$ 323,400$(1,428,790)
Net income (loss) per limited
and additional general
partner unit $ 50 $ (16)$ 252 $ (1,114)
See accompanying notes to financial statements.
</TABLE>
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PDC 1998-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statement of Partners' Equity
Nine months ended September 30, 2000
(Unaudited)
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Limited and
additional Managing
general partners general partner Total
Balance, December 31, 1999 $ 7,463,305 $1,865,827 $ 9,329,132
Distributions to partners (816,084) (204,019) (1,020,103)
Net income 258,722 64,678 323,400
Balance, September 30, 2000 $ 6,905,943 $1,726,486 $ 8,632,429
See accompanying notes to financial statements.
</TABLE>
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PDC 1998-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statements of Cash Flows
Nine months ended September 30, 2000 and 1999
(Unaudited)
<TABLE>
<C> <C> <C>
2000 1999
Cash flows from operating activities:
Net income (loss) $ 323,400 $(1,428,790)
Adjustments to reconcile net income
(loss) to net cash provided
from operating activities:
Exploratory dry hole costs - 1,357,054
Depreciation, depletion,
and amortization 665,314 488,284
Changes in operating assets
and liabilities:
Decrease (increase) in accounts
receivable - oil and gas revenues 52,893 (250,614)
Decrease in accrued expenses (21,864) (12,860)
Net cash provided
from operating activities 1,019,743 153,074
Cash flows from financing activities:
Distributions to Partners (1,020,103) (165,969)
Net cash used by
financing acitivities (1,020,103) (165,969)
Net change in cash (360) (12,895)
Cash at beginning of period 8,038 20,000
Cash at end of period $ 7,678 $ 7,105
See accompanying notes to financial statements.
</TABLE>
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PDC 1998-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 nine months ended September 30, 2000
are not necessarily indicative of the results to be expected for
the full year.
3.Oil and Gas Properties
Oil and Gas Properties are reported on the successful efforts method.
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<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Liquidity and Capital Resources
The Partnership was funded with initial Limited and
Additional General Partner contributions of $20,525,261 and
the Managing General Partner contributed $4,464,244 in
accordance with the Agreement. Syndication and management
fee costs of $2,668,284 were incurred leaving available
capital of $22,321,221 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, 1999.
Nintey-seven wells were drilled, of which eighty-nine were
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 September 30,
2000 of $308,643.
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 September 30, 2000
Revenue and expenses during the third quarter of 2000
include natural gas sales and related expenses for all of the
Partnership's wells. During the same period in 1999 all of
the wells were not yet turned into line and producing for the
entire quarter. While the Partnership experienced net income
of $63,830, depreciation, depletion and amortization is a
non-cash expense and therefore the Partnership distributed
$289,348 to the partners during the third quarter of 2000.
Nine Months Ended September 30, 2000 Compared with 1999
Revenue and expenses during the first nine months of
2000 include natural gas sales and related expenses for all
of the Partnership's wells. During the same period in 1999
all of the wells were not turned into line and producing for
the entire period. While the Partnership experienced net
income of $323,400, depreciation, depletion, and amortization
is a non-cash expense and therefore the Partnership
distributed $1,020,103 to the partners during the first nine
months of 2000.
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New Accounting Standard
Statement of Accounting Standards No. 133, Accounting
for Derivative Instruments and Hedging Activities (SFAS No.
133), was issued by the Financial Accounting Standards Board
in June, 1998. Statement 133 standardized the accounting for
derivative instruments, including certain derivative
instruments embedded in other contracts. SFAS No. 133 which
was amended by SFAS 138 is effective for years beginning
after June 15, 2000; however, early adoption is permitted.
On adoption, the provisions of SFAS No. 133 must be applied
prospectively. At the present time, the Partnership cannot
determine the impact that SFAS No. 133 will have on its
financial statements upon adoption, as such impact will be
based on the extent of derivative instruments, such as
natural gas futures and option contracts, outstanding at the
date of adoption.
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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
September 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 1998-D Limited Partnership
(Registrant)
By its Managing General
Partner Petroleum
Development Corporation
Date: November 1, 2000 /s/ Steven R. Williams
Steven R. Williams
President
Date: November 1, 2000 /s/ Dale G. Rettinger
Dale G. Rettinger
Executive Vice President
and Treasurer
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