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 June 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
PART I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheets - June 30, 2000 and December 31, 1999 1
Statement of Operations -
Three and Six Months Ended June 30, 2000 2
Statement of Partners' Equity -
Six Months Ended June 30, 2000 3
Statement of Cash Flows-
Six Months Ended June 30, 2000 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
PDC 1999-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Balance Sheets
June 30, 2000 and December 31, 1999
<TABLE>
<C> <C> <C>
Assets
2000 1999
(Unaudited)
Current assets:
Cash $ 5,531 20,000
Accounts receivable - oil and gas revenues 866,817 -
Total current assets 872,348 20,000
Oil and gas properties, successful
efforts method 20,326,409 20,326,409
Less accumulated depreciation, depletion,
and amortization 542,489 -
19,783,920 20,326,409
$20,656,268 20,346,409
Current Liabilities and Partners' Equity
Current liabilities:
Accrued expenses $ 821 15,298
Total current liabilities 821 15,298
Partners' Equity 20,655,447 20,331,111
$20,656,268 20,346,409
</TABLE>
See accompanying notes to financial statements.
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PDC 1999-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statements of Operations
Six months ended June 30, 2000
(Unaudited)
<TABLE>
<C> <C> <C>
Three Months Six Months
Ended Ended
June 30, 2000 June 30, 2000
Revenues:
Sales of oil and gas $ 844,519 $ 963,557
Interest earned 8 8
844,527 963,565
Expenses:
Lifting cost 80,718 96,740
Depreciation, depletion, and amortization 475,775 542,489
556,493 639,229
Net income $ 228,034 $ 324,336
Net income per limited and additional
general partner unit $ 225 $ 253
</TABLE>
See accompanying notes to financial statements.
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PDC 1999-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statement of Partners' Equity
Six months ended June 30, 2000
(Unaudited)
<TABLE>
<C> <C> <C> <C>
Limited and
additional Managing
general partners general partner Total
Balance, December 31, 1999 $16,264,889 4,066,222 20,331,111
Net income 259,471 64,865 324,336
Balance, June 30, 2000 $16,524,360 4,131,087 20,655,447
</TABLE>
See accompanying notes to financial statements.
-3-
PDC 1999-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statement of Cash Flows
Six months ended June 30, 2000
(Unaudited)
<TABLE>
<C> <C>
Cash flows from operating activities:
Net income $ 324,336
Adjustments to reconcile net income to net cash
used by operating activities:
Depreciation, depletion, and amortization 542,489
Changes in operating assets and liabilities:
Increase in accounts receivable - oil and gas revenues (866,817)
Decrease in accrued expenses (14,477)
Net cash used by operating activities (14,469)
Net change in cash (14,469)
Cash at beginning of period 20,000
Cash at end of period $ 5,531
</TABLE>
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
six months ended June 30, 2000 are not necessarily indicative of the
results to be expected for the full year.
3. Oil and Gas Properties
The Partnership follows the successful efforts method of accounting for the
cost of exploring for and developing oil and gas reserves. 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.
-5-
<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 $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 will be 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 June 30, 2000 of $871,527.
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 June 30, 2000
The Partnership turned an additional 18 wells into line during the
second quarter of 2000 to add to the 18 wells turned into line during the
first quarter of 2000. The remaining 15 wells in Michigan are scheduled to
go into line during the third quarter of 2000.
Six Months Ended June 30, 2000
During the first quarter of 2000 the partnership drilled 51 wells all
of which are productive. As of July 28, 2000, the partnership has 36
wells in production with the remaining 15 wells in Michigan are scheduled
to be put into production during the third quarter of 2000. The first cash
distribution to the Partnership occurred on July 26, 2000.
Year 2000 Issue
PDC, who administers all aspects of the Partnership, experienced no
known disruptions as a result of the year date change and intends to
continue monitoring its critical systems at various other date changes
during the Year 2000.
PDC's expenditures for addressing Year 2000 issues were not material,
nor does the Company expect to incur any significant costs addressing Year
2000 issues in the future.
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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
June 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: July 28, 2000 /s/ Steven R. Williams
Steven R. Williams
President
Date: July 28, 2000 /s/ Dale G. Rettinger
Dale G. Rettinger
Executive Vice President
and Treasurer
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