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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
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<S> <C> <C>
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1995
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
</TABLE>
FOR THE TRANSITION PERIOD FROM TO .
COMMISSION FILE NUMBER 0-8565
MARINE PETROLEUM TRUST
(Exact name of registrant as specified in its charter)
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<S> <C>
TEXAS 75-6008017
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
NATIONSBANK OF TEXAS, N.A. 75283-1402
P.O. BOX 831402, DALLAS, TEXAS (Zip Code)
(Address of principal executive offices)
</TABLE>
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (214) 508-1796
NONE
(Former name, former address and former fiscal year
if changed since last report)
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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 X No
Indicate number of units of beneficial interest outstanding as of the last
practicable date.
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<CAPTION>
TITLE OF EACH CLASS OF UNITS NUMBER OF UNITS OF BENEFICIAL INTEREST
OF BENEFICIAL INTEREST SEPTEMBER 30, 1995
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<S> <C>
Units of Beneficial Interest 2,000,000
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PART I. FINANCIAL INFORMATION
MARINE PETROLEUM TRUST AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1995 AND JUNE 30, 1995
(UNAUDITED)
ASSETS
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<CAPTION>
SEPTEMBER 30, JUNE 30,
1995 1995
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<S> <C> <C>
Current Assets:
Cash and cash equivalents........................................ $ 1,716,609 $ 1,661,312
Oil and gas royalties receivable................................. 402,622 387,460
Receivable from affiliate........................................ 77,978 88,771
------------ -----------
Total current assets..................................... 2,197,209 2,137,543
------------ -----------
Investment in affiliate............................................ 219,795 199,226
Office equipment, at cost less accumulated depreciation............ 1,497 1,672
Producing oil and gas properties................................... 7 7
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$ 2,418,508 $ 2,338,448
============ ===========
LIABILITIES AND TRUST EQUITY
Current Liabilities:
Accounts payable................................................. $ 895,724 $ 895,724
Employment tax payable........................................... 3,836 3,836
Income taxes payable............................................. 5,518 7,018
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Total current liabilities................................ 905,078 906,578
Trust Equity:
Corpus -- authorized 2,000,000 units of beneficial interest,
issued 2,000,000 units at nominal value....................... 8 8
Undistributed income............................................. 1,513,422 1,431,862
------------ -----------
Total trust equity....................................... 1,513,430 1,431,870
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$ 2,418,508 $ 2,338,448
============ ===========
</TABLE>
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MARINE PETROLEUM TRUST AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(UNAUDITED)
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<CAPTION>
THREE MONTHS
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1995 1994
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<S> <C> <C>
Income:
Oil and gas royalties................................................ $535,806 $454,565
Equity in earnings of affiliate...................................... 91,322 148,351
Interest income of subsidiary........................................ 23,421 18,090
-------- --------
$650,549 $621,006
-------- --------
Expenses:
Other taxes.......................................................... -- --
General and administrative........................................... 20,636 17,439
-------- --------
20,636 17,439
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Income before Federal income taxes................................... 629,913 603,567
Federal income taxes of subsidiary................................... -- 1,466
-------- --------
Net income........................................................... $629,913 $602,101
======== ========
Net income per unit.................................................... $ 0.31 $ 0.30
======== ========
Distributions per unit................................................. $ 0.27 $ 0.34
======== ========
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MARINE PETROLEUM TRUST AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(UNAUDITED)
<TABLE>
<CAPTION>
1995 1994
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<S> <C> <C>
Cash flows from operating activities:
Net income....................................................... $ 629,913 $ 602,101
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation.................................................. 175 246
Change in assets and liabilities:
Decrease (increase) in royalties receivable................. (15,162) 68,234
Decrease (increase) in receivable from affiliate............ 10,793 (16,828)
Increase (decrease) in Federal income taxes payable........... (1,500) 566
---------- ----------
Net cash provided by operating activities................ 624,219 654,319
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Cash flows provided by (used in) investing activities:
Decrease (increase) in undistributed earnings of
affiliate.................................................. (20,569) (17,806)
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Net cash provided by investing activities................ (20,569) (17,806)
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Cash flows from financing activities -- distributions
unitholders...................................................... (548,353) (674,803)
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Net increase (decrease) in cash and cash equivalents..... 55,297 (38,290)
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Cash and cash equivalents at beginning of period................... 1,661,312 1,825,507
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Cash and cash equivalents at end of period......................... $1,716,609 $1,787,217
========== ==========
</TABLE>
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MARINE PETROLEUM TRUST AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(UNAUDITED)
ACCOUNTING POLICIES
The financial statements include the financial statements of Marine
Petroleum Trust (the "Trust") and its wholly-owned subsidiary, are condensed,
and should be read in conjunction with the annual report for the fiscal year
ended June 30, 1995. The financial statements included herein are unaudited, but
in the opinion of management include all adjustments necessary for a fair
presentation of the results of operations for the periods indicated.
UNDISTRIBUTED INCOME
Undistributed income on September 30, 1995 includes $930,906 applicable to
the Trust and $582,516 applicable to Marine Petroleum Corporation, the Trust's
wholly-owned subsidiary. Distributions to unitholders are dependent on the
volume and price of oil and gas sold by others and will fluctuate from quarter
to quarter.
ACCOUNTS PAYABLE
Marine Petroleum Corporation has provided an account payable of $895,724 to
cover possible refunds that may be required upon redetermination of gas prices
for royalty payments in prior periods.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION -- LIQUIDITY AND CAPITAL RESOURCES
The Trust is a "royalty trust" with overriding royalty interests in oil and
gas leases in the Gulf of Mexico. The Trust's indenture (and the charter and
by-laws of its subsidiary) expressly prohibit the operation of any kind of trade
or business. All royalties received by the Trust, less administrative expenses,
are distributed quarterly to unitholders. Since the Trust's sole purpose is to
collect and distribute cash collected from royalties, there are no requirements
for capital.
GENERAL
The Trust's net income of $.31 per unit for the three months ended
September 30, 1995 was consistent with the $.30 earned in the comparable period
in 1994. The Trust's income from its equity in Tidelands Royalty Trust B
("Tidelands") amounted to $.05 per unit for the current period, down from $.07
for the comparable period a year ago.
Over the past four quarters the Trust's share of oil produced from wells
subject to its overriding royalty has increased from an average of 147 barrels
per day a year ago to an average of 202 barrels per day in the current quarter.
The Trust attributes this increase to higher prices and the drilling and
workover programs of the working interest owners. Approximately 47% of the
Trust's income is from royalties on the sale of oil.
The Trust's income from royalties on the sale of natural gas for the
current quarter is consistent with the amount of such royalties in the
comparable quarter a year ago. Although the average price received for natural
gas at the wellhead decreased, production increased enough to offset the price
decline. Approximately 53% of the Trust's income is from the sale of natural
gas. In the quarter ended June 30, 1994, the average daily production of natural
gas for the Trust amounted to 2,150 mcf, whereas in the current quarter the
average daily production of natural gas reached 2,340 mcf per day.
In the quarter ended September 30, 1994, the Trust's 32.6% equity interest
in Tidelands produced approximately 25% of the Trust's revenue from oil and gas
royalties. In the current quarter the Trust's equity interest in Tidelands
produced approximately 15% of the Trust's revenues from oil and gas royalties.
The Trust believes that Tidelands' income was lower in the current quarter as
compared to previous quarters due to lower natural gas prices and shut in
natural gas production.
RESULTS OF OPERATIONS -- THREE MONTHS ENDED SEPTEMBER 30, 1995
Net income for the quarter ended September 30, 1995 amounted to $629,913,
which was approximately 5% more than the $602,101 realized in the comparable
period of 1994.
The volume of oil sold increased approximately 38% over the comparable
period last year, and the average price per barrel of oil decreased $.38 to
$16.31 per bbl.
Natural gas volumes sold increased approximately 9% in the current period
over the comparable period last year. Natural gas volumes amounted to 210,632
mcf this period and were 193,467 mcf for the comparable period last year. The
average price decreased $.13 per mcf to $1.57, from $1.70 a year ago.
Marine's equity in the income of Tidelands decreased approximately 38% in
the current period over the comparable period last year. See "-- General."
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The quantities of oil and gas sold and the average prices for oil and gas
(including the equity in Tidelands) for the three month periods ended September
30, 1995 and 1994 are presented in the following table:
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<CAPTION>
1995 1994
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<S> <C> <C>
OIL
Barrels sold................................................... 18,193 13,187
Average price.................................................. $16.31 $16.69
NATURAL GAS
mcf sold....................................................... 210,632 193,467
Average price.................................................. $1.57 $1.70
</TABLE>
PART II. OTHER INFORMATION
There were no events reportable under Part II of the Quarterly Report on
Form 10-Q.
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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.
MARINE PETROLEUM TRUST
NationsBank of Texas, N.A., Trustee
November 13, 1995 By: /s/ KATHY MCQUISTON
Kathy McQuiston, Assistant Vice
President
November 13, 1995 /s/ R. RAY BELL
R. Ray Bell, Principal Accounting
Officer
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EXHIBIT INDEX
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<CAPTION>
SEQUENTIAL
EXHIBIT PAGE
NUMBER EXHIBIT DESCRIPTION NUMBER
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<S> <C> <C>
27 -- Financial Data Schedule
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9
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 1,716,609
<SECURITIES> 0
<RECEIVABLES> 402,622
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,197,209
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,418,508
<CURRENT-LIABILITIES> 905,078
<BONDS> 0
<COMMON> 8
0
0
<OTHER-SE> 1,513,422
<TOTAL-LIABILITY-AND-EQUITY> 2,418,508
<SALES> 535,806
<TOTAL-REVENUES> 650,549
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 20,636
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 629,913
<INCOME-TAX> 0
<INCOME-CONTINUING> 629,913
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 629,913
<EPS-PRIMARY> .31
<EPS-DILUTED> .31
</TABLE>
