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 1999-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 1999-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
INDEX
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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 2
Statement of Partners' Equity -
Nine Months Ended September 30, 2000 (unaudited) 3
Statement of Cash Flows-
Nine Months Ended September 30, 2000 (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 7
Item 6. Exhibits and Reports on Form 8-K 7
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PDC 1999-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 $ 23,839 $ 20,000
Accounts receivable - oil and gas revenues 1,084,610 -
Total current assets 1,108,449 20,000
Oil and gas properties, successful
efforts method 18,207,926 20,326,409
Less accumulated depreciation, depletion,
and amortization 793,981 -
17,413,945 20,326,409
$18,522,394 $20,346,409
Current Liabilities and Partners' Equity
Current liabilities:
Due to Managing General Partner 18,307 -
Accrued expenses $ 821 $ 15,298
Total current liabilities 19,128 15,298
Partners' Equity 18,503,266 20,331,111
$18,522,394 $20,346,409
See accompanying notes to financial statements.
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PDC 1999-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statements of Operations
Three and Nine months ended September 30, 2000
(Unaudited)
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Three Months Nine Months
Ended Ended
September 30, September 30,
2000 2000
Revenues:
Sales of oil and gas $1,697,087 $2,660,644
Interest earned - 8
1,697,087 2,660,652
Expenses:
Loss on impairment of oil and gas properties 2,118,483 2,118,483
Lifting costs 240,300 337,040
Depreciation, depletion, and amortization 251,492 793,981
2,610,275 3,249,504
Net loss $ (913,188) $ (588,852)
Net loss per limited and
additional general partner unit $ (712) $ (459)
See accompanying notes to financial statements.
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PDC 1999-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 $16,264,889 $ 4,066,222 $20,331,111
Net loss (471,080) (117,772) (588,852)
Distributions to partners (991,195) (247,798) (1,238,993)
Balance, September 30, 2000 $14,802,614 $ 3,700,652 $18,503,266
See accompanying notes to financial statements.
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PDC 1999-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statement of Cash Flows
Nine months ended September 30, 2000
(Unaudited)
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Cash flows from operating activities:
Net loss $ (588,852)
Adjustments to reconcile net loss to net cash
Provided from operating activities:
Loss of impairment of oil and gas properties 2,118,483
Depreciation, depletion, and amortization 793,981
Changes in operating assets and liabilities:
Increase in accounts receivable - oil and gas revenues (1,084,610)
Decrease in accrued expenses (14,477)
Increase in due to PDC 18,307
Net cash provided from operating activities 1,242,832
Cash flows from financing activities:
Distributions to partners (1,238,993)
Net cash used by financing activities (1,238,993)
Net change in cash 3,839
Cash at beginning of period 20,000
Cash at end of period $ 23,839
See accompanying notes to financial statements.
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PDC 1999-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. Under this method, costs of development wells, including
equipment and intangible drilling costs related to both producing
wells and developmental dry holes, and successful exploratory wells
are capitalized and amortized on an annual basis to operations by the
units-of-production method using estimated proved developed reserves
which will be determined at year end by an independent petroleum
engineer. If a determination is made that an exploratory well has
not discovered economically producible reserves, then its costs are
expensed as dry hole costs.
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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 $18,709,342 and the
Managing General Partner contributed $4,069,282 in accordance with
the Agreement. Syndication and management fee costs of $2,432,215
were incurred leaving available capital of $20,346,409 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, 2000. Fifty-one well have been
drilled, all of which have been 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 $1,089,321.
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
The Partnership turned an additional 15 wells into line
during the third quarter of 2000 to add to the 36 wells turned into
line during the first two quarters of 2000. The first cash
distribution to the Partnership occurred on July 28, 2000. While the
Partnership experienced a net loss, the loss on impairment of oil and
gas properties and depreciation, depletion and amortization are a
non-cash expense and therefore the Partnership distributed $1,238,993
cash to the partners during the third quarter of 2000.
Nine Months Ended September 30, 2000
During the first quarter of 1999 the partnership drilled
51 wells all of which are productive. The partnership has all 51
wells in production. The first cash distribution to the Partnership
occurred on July 28, 2000. While the Partnership experienced a net
loss, the loss on impairment of oil and gas properties and
depreciation, depletion and amortization are a non-cash expense and
therefore the Partnership distributed $1,238,993 cash to the partners
during the third quarter 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 1999-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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