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Previous: MAY DRILLING PARTNERSHIP 1983-1, 10-Q, 1997-11-13 |
Next: MAY DRILLING PARTNERSHIP 1983-3, 10-Q, 1997-11-13 |
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, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 0-11313
----------------
MAY DRILLING PARTNERSHIP 1983-2
MAY LIMITED PARTNERSHIP 1983-2
(Exact name of registrant as specified in its charter)
----------------
75-1915688
Texas 75-1915682
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
4582 South Ulster Street Parkway
Suite 1700
Denver, Colorado 80237
(Address of principal executive offices) (Zip Code)
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 [ ]
Page 1 of 10
<PAGE>
<TABLE>
<CAPTION>
MAY DRILLING PARTNERSHIP 1983-2
BALANCE SHEETS
(Unaudited)
(In thousands)
September 30, December 31,
1997 1996
--------- ----
ASSETS
Investment in
<S> <C> <C>
May Limited Partnership 1983-2 $376 $397
=== ===
PARTNERS' CAPITAL
Partners' Capital $ 376 $ 397
==== ===
<FN>
NOTE: The statements of operations and cash flows for May Drilling
Partnership 1983-2 are not presented because such information is
equal to the limited partner's share of such activity as presented
in the May Limited Partnership 1983-2 financial statements. The May
Drilling Partnership carries its investment in May Limited
Partnership 1983-2 on the equity method. The May Limited Partnership
1983-2 financial statements should be read in conjunction with these
balance sheets.
</FN>
<FN>
The accompanying note is an integral part
of the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-2
BALANCE SHEETS
(Unaudited)
(In thousands)
September 30, December 31,
1997 1996
ASSETS
CURRENT ASSETS
<S> <C> <C>
Cash and cash equivalents $ 163 $ 157
Accrued oil and gas sales 135 161
Due from affiliate 43
--- ---
Total 341 318
--- ---
OIL AND GAS PROPERTIES, using the
full cost method of accounting 16,655 16,618
Less accumulated depletion (16,143) (16,072)
------ ------
Net oil and gas properties 512 546
------ -----
TOTAL ASSETS $ 853 $ 864
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 24 $ 22
Due to affiliate 5
Total 24 27
-- --
PARTNERS' CAPITAL
General partner 453 440
Limited partner 376 397
--- ---
Total 829 837
--- ---
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 853 $ 864
========= ========
<FN>
The accompanying note is an integral part
of the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-2
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Three Months Ended September 30,
1997 1996
-------- ----
REVENUES
<S> <C> <C>
Oil revenue $ 25 $ 27
Gas revenue 191 187
Interest 2 2
--- ---
Total 218 216
--- ---
COSTS AND EXPENSES
Lease operating 24 29
General and administrative 22 17
Depletion 30 26
Professional services and other 2 2
Litigation settlement 8
---- ----
Total 86 74
---- ----
NET INCOME $ 132 $ 142
===== ========
ALLOCATION OF NET INCOME:
General Partner $ 61 $ 65
====== =========
Limited Partner $ 71 $ 77
======= =========
Per initial $1,000 limited
partner investment unit $ 6.73 $ 7.29
======== ========
Weighted average initial $1,000 limited
partner investment units outstanding 10,557 10,557
====== ========
<FN>
The accompanying note is an integral part
of the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-2
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Nine Months Ended September 30,
1997 1996
------ ------
REVENUES
<S> <C> <C>
Oil revenue $ 64 $ 82
Gas revenue 516 644
Interest 7 6
---- -----
Total 587 732
---- -----
COSTS AND EXPENSES
Lease operating 64 82
General and administrative 59 67
Depletion 71 81
Professional services and other 10 7
Litigation settlement 8 2
---- ----
Total 212 239
---- ----
NET INCOME $ 375 $ 493
=========== ========
ALLOCATION OF NET INCOME:
General Partner $ 174 $ 224
======== ========
Limited Partner $ 201 $ 269
======== ========
Per initial $1,000 limited
partner investment unit $ 19.04 $ 25.48
======= =======
Weighted average initial $1,000 limited
partner investment units outstanding 10,557 10,557
====== ======
<FN>
The accompanying note is an integral part
of the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-2
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
For the Nine Months Ended September 30,
1997 1996
----- ----
OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 375 $ 493
Adjustment to reconcile net income to net cash provided by operating
activities:
Depletion 71 81
------ -----
Cash from operations before
working capital changes 466 574
Changes in assets and liabilities provided (used) cash:
Accrued oil and gas sales 26 38
Due from affiliate (43) (48)
Accounts payable and accrued liabilities 2 5
Due to affiliate (5)
----- -----
Net cash provided by operating
activities 426 569
----- ------
INVESTING ACTIVITIES:
Additions to oil and gas properties (37) (21)
----- ---
FINANCING ACTIVITIES:
Distributions to partners (383) (473)
----- -----
NET INCREASE IN CASH AND CASH EQUIVALENTS 6 75
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 157 148
----- ----
Balance, end of period $ 163 $ 223
======= =======
<FN>
The accompanying note is an integral part
of the financial statements.
</FN>
</TABLE>
<PAGE>
MAY LIMITED PARTNERSHIP 1983-2
NOTE TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - GENERAL
The financial statements presented are those of May Limited Partnership 1983-2
(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, 1996 Annual Report on Form 10-K.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION
Liquidity and Capital Resources
The Partnership generated $426,000 of cash flow from operating activities during
the nine months ended September 30, 1997 and distributed $383,000 to partners. A
distribution payable to partners of record as of September 30, 1997 was declared
in October 1997. The distribution amount is $108,000, payable $62,640 to May
Drilling Partnership 1983-2 partners and $45,360 to the general partner. 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 1997 Compared to Third Quarter 1996
Oil Revenue
Oil revenue decreased $2,000 in the third quarter of 1997 as compared to the
corresponding period in 1996 as a result of a decrease in the average oil price,
partially offset by an increase in oil production. The average oil price
decreased from $23.69 per barrel in 1996 to $19.25 per barrel in 1997. Oil
production increased 14% due to workover procedures performed during the second
quarter of 1997.
Gas Revenue
Gas revenue increased $4,000 during the third quarter of 1997 as compared to the
corresponding period in 1996 as the result of an increase in production,
partially offset by a decrease in price. Gas production increased 15% due to
workover procedures performed during the second quarter of 1997. The average gas
price decreased from $2.56 per mcf in 1996 to $2.28 per mcf in 1997.
Lease Operating
Lease operating expense decreased $5,000 for the third quarter of 1997 as
compared to the corresponding period in 1996 primarily due to a decrease in
maintenance activity.
General and Administrative
General and administrative expense increased $5,000 during the third quarter of
1997 as compared to the third quarter of 1996 due to the timing of these
expenses.
<PAGE>
Depletion
Depletion expense increased $4,000 during the third quarter of 1997 as compared
with the third quarter of 1996 as a result of an increase in capitalized costs
during 1997.
Litigation Settlement
Litigation settlement expense during the quarters ended September 30, 1997
represents the expense incurred to settle property related claims.
Nine Months Ended September 30, 1997 Compared to the Nine Months Ended
September 30, 1996
The comparisons for the nine months ended September 30, 1997 and the nine months
ended September 30, 1996 are consistent with those discussed in the third
quarter 1997 compared to the third quarter of 1996 except for the following:
Oil Revenue
Oil revenue decreased $18,000 during the first nine months of 1997 as compared
to the corresponding period in 1996, due to a decrease in production and a
decrease in the average oil price. The average oil price decreased from $21.20
per barrel in 1996 to $20.29 per barrel in 1997. Oil production decreased 18%
due to the temporary shut-in of two wells during May and June of 1997 while
workover procedures were performed.
Gas Revenue
Gas revenue decreased $128,000 during the first nine months of 1997 as compared
to the corresponding period in 1996 as the result of a decrease in production
and a decrease in price. Gas production decreased 11% due to the temporary
shut-in of two wells during May and June of 1997 while workover procedures were
performed. The average gas price decreased from $2.78 per mcf in 1996 to $2.51
per mcf in 1997.
Interest
Interest income increased $1,000 during the first nine months of 1997 as
compared with the first nine months of 1996 due to a higher average cash balance
during 1997.
General and Administrative
General and administrative expenses decreased $8,000 during the first nine
months of 1997 as compared with the same period during 1996 due to a decrease in
the allocation of overhead from the general partner.
Depletion
Depletion expense decreased $10,000 during the first nine months of 1997 as
compared with the first nine months of 1996 due to a decrease in the depletion
rate caused by the decrease in production discussed above.
Professional Services and Other
Professional services and other expense increased $3,000 during the first nine
months of 1997 as compared with the first nine months of 1996 primarily due to
the timing of these expenses.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
Reference is made to Item 8 - Note 4 of Form 10-K for the year
ended December 31, 1996.
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>
-10-
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 1983-2
MAY LIMITED PARTNERSHIP 1983-2
By: EDP OPERATING, LTD.,
General Partner
By: HEPGP LTD.,
General Partner
By: HALLWOOD G. P., INC.,
General Partner
Date: November 4, 1997 By: Robert S. Pfeiffer
Robert S. Pfeiffer, Vice President
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Form 10-Q
for the quarter ended September 30, 1997 for May Drilling Partnership 1983-2 and
is qualified in its entirety by reference to such Form 10-Q.
</LEGEND>
<CIK> 0000711309
<NAME> May Drilling Partnership 1983-2
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-mos
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-END> Sep-30-1997
<CASH> 163
<SECURITIES> 0
<RECEIVABLES> 178
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 341
<PP&E> 16,655
<DEPRECIATION> 16,143
<TOTAL-ASSETS> 853
<CURRENT-LIABILITIES> 24
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 853
<SALES> 580
<TOTAL-REVENUES> 587
<CGS> 0
<TOTAL-COSTS> 212
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 375
<INCOME-TAX> 0
<INCOME-CONTINUING> 375
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 375
<EPS-PRIMARY> 19.04
<EPS-DILUTED> 19.04
</TABLE>
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