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Previous: MAY DRILLING PARTNERSHIP 1983-1, 10-Q, 1998-05-08 |
Next: MAY DRILLING PARTNERSHIP 1983-3, 10-Q, 1998-05-08 |
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 March 31, 1998
[ ] 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 9
<PAGE>
<TABLE>
<CAPTION>
MAY DRILLING PARTNERSHIP 1983-2
BALANCE SHEETS
(Unaudited)
(In thousands)
March 31, December 31,
1998 1997
ASSETS
<S> <C> <C>
Investment in May Limited Partnership 1983-2 $ 366 $ 407
==== ====
PARTNERS' CAPITAL
Partners' Capital $ 366 $ 407
==== ====
<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)
March 31, December 31,
1998 1997
ASSETS
CURRENT ASSETS
<S> <C> <C>
Cash and cash equivalents $ 206 $ 217
Accrued oil and gas sales 119 140
Due from affiliate 50 67
------- -------
Total 375 424
------ ------
OIL AND GAS PROPERTIES, using the
full cost method of accounting 16,658 16,652
Less accumulated depletion (16,187) (16,162)
------ ------
Net oil and gas properties 471 490
------ ------
TOTAL ASSETS $ 846 $ 914
====== ======
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 15 $ 24
------- -------
PARTNERS' CAPITAL
General partner 465 483
Limited partner 366 407
------ ------
Total 831 890
------ ------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 846 $ 914
====== ======
<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 March 31,
1998 1997
REVENUES
<S> <C> <C>
Oil revenue $ 18 $ 24
Gas revenue 179 200
Interest 3 2
--------- ---------
Total 200 226
------- -------
COSTS AND EXPENSES
Lease operating 25 21
General and administrative 20 21
Depletion 25 20
Professional services and other 5 5
--------- ----------
Total 75 67
-------- ---------
NET INCOME $ 125 $ 159
======= =======
ALLOCATION OF NET INCOME:
General Partner $ 59 $ 74
======== ========
Limited Partner $ 66 $ 85
======== ========
Per initial $1,000 limited partner
investment $ 6.25 $ 8.05
======= =======
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 Three Months Ended March 31,
1998 1997
OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 125 $ 159
Adjustment to reconcile net income to
net cash provided by operating activities:
Depletion 25 20
Changes in assets and liabilities provided (used) cash:
Accrued oil and gas sales 21 55
Due from affiliate 17 (89)
Accounts payable and accrued liabilities (9) (7)
Due to affiliate (5)
-------- -------
Net cash provided by operating activities 179 133
----- -----
INVESTING ACTIVITIES -
Additions to oil and gas properties (6) (20)
------- ------
FINANCING ACTIVITIES -
Distributions to partners (184)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (11) 113
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 217 157
----- -----
Balance, end of period $ 206 $ 270
===== =====
<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, 1997 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 $179,000 of cash flow from operating activities during
the three months ended March 31, 1998 and distributed $184,000 to partners. A
distribution payable to partners of record as of March 31, 1998 was declared in
April 1998. The distribution amount is $158,000 payable $91,640 to May Drilling
Partnership 1983-2 partners and $66,360 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
First Quarter 1998 Compared to First Quarter 1997
Oil Revenue
Oil revenue decreased $6,000 in the first quarter of 1998 as compared to the
first quarter of 1997 as a result of a decrease in price partially offset by an
increase in oil production. The average oil price decreased from $22.64 per
barrel in 1997 to $16.11 per barrel in 1998. Oil production increased 5% due to
workover procedures performed during the second quarter of 1997.
Gas Revenue
Gas revenue decreased $21,000 during the first quarter of 1998 as compared to
the first quarter of 1997 as the result of a decrease in gas price partially
offset by an increase in production. The average gas price decreased from $3.15
per mcf in 1997 to $2.35 per mcf in 1998. Gas production increased 20% due to
workover procedures performed during the second quarter of 1997.
Interest Income
Interest income increased $1,000 during the first quarter of 1998 as compared to
the first quarter of 1997 due to a higher average cash balance during 1998.
Lease Operating
Lease operating expense increased $4,000 for the first quarter of 1998 as
compared to the first quarter of 1997 primarily due to an increase in production
taxes caused by the increase in production discussed above.
<PAGE>
General and Administrative
General and administrative expense decreased $1,000 during the first quarter of
1998 as compared to the first quarter of 1997 due to a decrease in the
allocation of overhead from the general partner.
Depletion
Depletion expense increased $5,000 during the first quarter of 1998 as compared
with the first quarter of 1997 as a result of a higher depletion rate due to the
increase in production discussed above.
<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, 1997.
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 1983-2
MAY LIMITED PARTNERSHIP 1983-2
By: EDP OPERATING, LTD.,
General Partner
By: HEPGP Ltd.,
General Partner
By: HALLWOOD G.P., INC.,
General Partner
Date: May 1, 1998 By: /s/Thomas J. Jung
Thomas J. Jung, 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 March 31, 1998 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 206
<SECURITIES> 0
<RECEIVABLES> 169
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 375
<PP&E> 16,658
<DEPRECIATION> 16,187
<TOTAL-ASSETS> 846
<CURRENT-LIABILITIES> 15
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 831
<TOTAL-LIABILITY-AND-EQUITY> 831
<SALES> 197
<TOTAL-REVENUES> 200
<CGS> 0
<TOTAL-COSTS> 75
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 125
<INCOME-TAX> 0
<INCOME-CONTINUING> 125
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 125
<EPS-PRIMARY> 6.25
<EPS-DILUTED> 6.25
</TABLE>
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