UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
MARK ONE
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
--- TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-11311
-----------------------
MAY DRILLING PARTNERSHIP 1983-1
MAY LIMITED PARTNERSHIP 1983-1
(Exact name of registrant as specified in its charter)
------------------------
TEXAS 75-1896224
(State or other jurisdiction of 75-1896223
incorporation or organization) (I.R.S. Employer
Identification Number)
4582 SOUTH ULSTER STREET PARKWAY
SUITE 1700
DENVER, COLORADO 80237
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code: (303) 850-7373
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 ___
MAY DRILLING PARTNERSHIP 1983-1
BALANCE SHEETS
(In thousands)
September 30, December 31,
1995 1994
------------ ------------
(Unaudited)
ASSETS
Investment in
May Limited Partnership 1983-1 $196 $198
=== ===
PARTNERS' CAPITAL<PAGE>
Partners' Capital $196 $198
=== ===
NOTE: The statements of operations and cash flows for May Drilling
Partnership 1983-1 are not presented because such
information is equal to the limited partner's share of such
activity as presented in the May Limited Partnership 1983-1
financial statements. The May Drilling Partnership carries
its investment in May Limited Partnership 1983-1 on the
equity method. The May Limited Partnership 1983-1 financial
statements should be read in conjunction with these balance
sheets.
MAY LIMITED PARTNERSHIP 1983-1
BALANCE SHEETS
(In thousands)
September 30, December 31,
1995 1994
------------ ------------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 100 $ 96
Accrued oil and gas sales 30 31
Due from affiliate 4
------ ------
Total 134 127
------ ------
OIL AND GAS PROPERTIES, using the
full cost method of accounting 7,286 7,271
Less - Accumulated depletion (7,008) (6,973)
------ ------
Net oil and gas properties 278 298
------ ------
TOTAL ASSETS $ 412 $ 425
====== ======
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable and accrued
liabilities $ 16 $ 22
Payable to affiliate 2
------ ------
Total 16 24
------ ------
PARTNERS' CAPITAL
General Partner 200 203
Limited Partner 196 198
------- ------
Total 396 401
------- ------<PAGE>
TOTAL LIABILITIES AND PARTNERS'
CAPITAL $ 412 $ 425
====== ======
MAY LIMITED PARTNERSHIP 1983-1
STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Three Months Ended
--------------------------
September 30, September 30,
1995 1994
------------- -------------
REVENUES
Oil revenue $ 7 $ 7
Gas revenue 39 33
Interest income 1 2
------- -------
Total 47 42
------ ------
COSTS AND EXPENSES
Lease operating 15 12
General and administrative 18 21
Depletion 11 9
Professional services and other 2 4
------- -------
Total 46 46
------ ------
NET INCOME (LOSS) $ 1 $ (4)
======= ======
ALLOCATION OF NET INCOME (LOSS):
General Partner $ 3 $ -
======= =======
Limited Partner $ (2) $ (4)
====== ======
Per initial $1,000 limited
partner investment $ (.42) $ (.85)
====== ======
Weighted average initial
$1,000 limited partner
investment units outstanding 4,713 4,713
====== ======
MAY LIMITED PARTNERSHIP 1983-1
STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Nine Months Ended
-------------------------
September 30, September 30,
1995 1994
------ ------
REVENUES
Oil revenue $ 21 $ 22
Gas revenue 124 164
Interest income 3 5
------ -------
Total 148 191
------ ------
COSTS AND EXPENSES
Lease operating 38 35
General and administrative 56 70
Depletion 35 33
Professional services and other 6 13
------ ------
Total 135 151
------ ------
NET INCOME $ 13 $ 40
====== ======
ALLOCATION OF NET INCOME (LOSS):
General Partner $ 15 $ 26
====== ======
Limited Partner $ (2) $ 14
====== ======
Per initial $1,000 limited partner
investment $ (.42) $ 2.97
====== ======
Weighted average initial $1,000
limited partner investment units
outstanding 4,713 4,713
====== ======
MAY LIMITED PARTNERSHIP 1983-1
STATEMENTS OF CASH FLOW
(Unaudited)
(In thousands)
For the Nine Months Ended
-------------------------
September 30, September 30,
1995 1994
------------- -------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 13 $ 40
Adjustment to reconcile net
incometo net cash provided by
operating activities:
Depletion 35 33
------ ------
Cash from operations before
working capital changes 48 73
Changes in assets and
liabilities provided (used)
cash:
Accrued oil and gas sales 1 39
Due from affiliate (4) 116
Accounts payable and
accrued liabilities (6) (110)
Payable to affiliate (2)
------ -------
Net cash provided by operating
activities 37 118
------ ------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Additions to oil and gas
properties (15) (5)
Proceeds from property sales 7
Net cash provided by (used in)
investing activities (15) 2
CASH FLOWS FROM FINANCING
ACTIVITIES:
Distributions to partners (18) (173)
Net cash used in financing
activities (18) (173)
Net increase (decrease) in cash
and cash equivalents 4 (53)
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 96 142
Balance, end of period $ 100 $ 89
====== ======
The accompanying notes are an integral part
of the financial statements.
MAY LIMITED PARTNERSHIP 1983-1
NOTE TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - GENERAL
The financial statements presented are those of May Limited Partnership
1983-1 (the "Partnership"). The interim financial data are unaudited;
however, in the opinion of the general partner, the interim data include
all adjustments, consisting only of normal recurring adjustments,
necessary for a fair presentation of the results for the interim
periods. These financial statements should be read in conjunction with
the financial statements and notes thereto included in the Partnership's
December 31, 1994 Annual Report on Form 10-K.
NOTE 2 - LEGAL
In June 1995, an additional lawsuit was filed against the Partnership in
the 15th Judicial District Court, Lafayette Parish, Louisiana, Docket
No. 952601-3B, styled Lamson Petroleum Corporation v. Hallwood
Petroleum, Inc. et al. The plaintiffs in the lawsuit claim that they
have an additional valid lease covering streets and roads in the units
of the A. L. Boudreaux #1 well, G. S. Boudreaux #1 well, Mary Guilbeau
#1 well and Duhon #1 well and are entitled to a portion of the
production from the wells. The Partnership has not yet determined the
amount of its interest in the properties which is at issue. At this
time, the Partnership believes that the difference between the amount
already in escrow as a result of the litigation and the amount of any
liability that may result upon resolution of this matter will not be
material.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Partnership generated $37,000 of cash flow from operating activities
during the nine months ended September 30, 1995 and made distributions
of $18,000. Future distributions are dependent on future prices for the
Partnership's production and the production level of the Partnership's
remaining oil and gas reserves.
RESULTS OF OPERATIONS
THIRD QUARTER 1995 COMPARED TO THE THIRD QUARTER 1994
OIL REVENUE
Oil revenue remained consistent during the third quarter of 1995 as
compared with the same period during 1994. However, oil production
increased 10% primarily due to increased state allowable production
limits, which were partially offset by a decrease in the average oil
price from $17.32 per barrel in 1994 to $17.12 per barrel in 1995.
GAS REVENUE
Gas revenue increased $6,000 during the third quarter of 1995 as
compared to the corresponding period in 1994 as the result of an
increase in production partially offset by a decrease in price. Gas
production increased 36% due to increased state allowable production
limits, and the average gas price decreased from $1.93 per mcf in 1994
to $1.60 per mcf in 1995.
LEASE OPERATING EXPENSE
Lease operating expense increased $3,000 during the third quarter of
1995 as compared to the corresponding period in 1994 primarily due to an
increase in production tax expense resulting from the 15% increase in
oil and gas revenue.
GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses decreased $3,000 during the third
quarter of 1995 as compared to the corresponding period in 1994 due to a
decrease in the allocation of overhead from the general partner.
DEPLETION
Depletion expense increased $2,000 during the third quarter of 1995 as
compared to the corresponding period in 1994 as a result of a higher
depletion rate caused by the increase in production previously
discussed.
NINE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1994
The comparisons for the nine months ended September 30, 1995 and the
nine months ended September 30, 1994 are consistent with those discussed
in the third quarter 1995 compared to the third quarter 1994 except for
the following:
OIL REVENUE
Oil revenue decreased $1,000 during the first nine months of 1995 as
compared to the corresponding period in 1994. The decrease is comprised
of a 8% decrease in production partially offset by an increase in oil
prices from $15.82 per barrel in 1994 to $17.74 per barrel in 1995. The
decrease in production is primarily due to normal production declines.
GAS REVENUE
Gas revenue decreased $40,000 during the first nine months of 1995 as
compared with the same period during 1994. The decrease is comprised of
a 1% decrease in gas production combined with a decrease in gas prices
from $2.24 per mcf in 1994 to $1.69 per mcf in 1995. The decrease in
production is due to normal production declines partially offset by
increased state allowable production limits.
PROFESSIONAL SERVICES AND OTHER
Professional services and other expenses decreased $7,000 during the
first nine months of 1995 as compared with the same period in 1994 due
to the timing of payments for professional services.
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
Reference is made to Item 8 - Note 3 of Form 10-K for the year
ended December 31, 1994 and Item 1 - Note 2 of this Form 10-Q.
ITEM 2 - CHANGES IN SECURITIES
None.
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5 - OTHER INFORMATION
None.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
None.<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Partnerships have duly caused this report to be signed on their behalf
by the undersigned, thereunto duly authorized.
MAY DRILLING PARTNERSHIP 1983-1
MAY LIMITED PARTNERSHIP 1983-1
BY: EDP OPERATING, LTD.,
GENERAL PARTNER
BY: HALLWOOD G. P., INC.,
GENERAL PARTNER
Date: November 2, 1995 By: /s/Robert S. Pfeiffer
Robert S. Pfeiffer, Vice President
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information from the financial
statements and is qualified in its entirety by reference to such Form 10-Q.
</LEGEND>
<CIK> 0000711308
<NAME> MAY DRILLING PARTNERSHIP 1983-1
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 100
<SECURITIES> 0
<RECEIVABLES> 34
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 134
<PP&E> 7,286
<DEPRECIATION> (7,008)
<TOTAL-ASSETS> 412
<CURRENT-LIABILITIES> 16
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 396
<TOTAL-LIABILITY-AND-EQUITY> 412
<SALES> 145
<TOTAL-REVENUES> 148
<CGS> 0
<TOTAL-COSTS> 135
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 13
<INCOME-TAX> 0
<INCOME-CONTINUING> 13
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13
<EPS-PRIMARY> (.42)
<EPS-DILUTED> 0
</TABLE>
