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 Exchange Act of 1934
For the quarterly period ended March 31, 1997
or
/ / Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from _______ to _______
Commission File No. 2-75530A
PARKER & PARSLEY 82-1, LTD.
(Exact name of Registrant as specified in its charter)
Texas 75-1825545
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
303 West Wall, Suite 101, Midland, Texas 79701
(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code : (915) 683-4768
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
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 pages.
-There are no exhibits-
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PARKER & PARSLEY 82-I, LTD.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of March 31, 1997 and
December 31, 1996......................................... 3
Statements of Operations for the three months
ended March 31, 1997 and 1996............................. 4
Statement of Partners' Capital for the three months
ended March 31, 1997...................................... 5
Statements of Cash Flows for the three months
ended March 31, 1997 and 1996............................. 6
Notes to Financial Statements............................... 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations....................... 7
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K............................ 9
27. Financial Data Schedule
Signatures.................................................. 10
2
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PARKER & PARSLEY 82-I, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
March 31, December 31,
1997 1996
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $118,512 at March 31
and $94,031 at December 31 $ 119,012 $ 94,531
Accounts receivable - oil and gas sales 73,019 106,548
---------- ----------
Total current assets 192,031 201,079
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 10,327,280 10,327,153
Accumulated depletion (9,043,948) (9,001,467)
---------- ----------
Net oil and gas properties 1,283,332 1,325,686
---------- ----------
$ 1,475,363 $ 1,526,765
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 15,671 $ 16,749
Partners' capital:
General partners 258,230 264,514
Limited partners (4,891 interests) 1,201,462 1,245,502
---------- ----------
1,459,692 1,510,016
---------- ----------
$ 1,475,363 $ 1,526,765
========== ==========
The financial information included as of March 31, 1997 has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
3
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PARKER & PARSLEY 82-I, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
-------------------------
1997 1996
--------- ---------
Revenues:
Oil and gas $ 177,998 $ 169,318
Interest 1,412 995
Salvage income from equipment disposals 2,592 -
-------- --------
182,002 170,313
-------- --------
Costs and expenses:
Oil and gas production 76,454 83,985
General and administrative 5,795 5,330
Depletion 42,481 29,368
-------- --------
124,730 118,683
-------- --------
Net income $ 57,272 $ 51,630
======== ========
Allocation of net income:
General partners $ 20,334 $ 17,313
======== ========
Limited partners $ 36,938 $ 34,317
======== ========
Net income per limited partnership interest $ 7.55 $ 7.02
======== ========
Distributions per limited partnership interest $ 16.56 $ 6.76
======== ========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
4
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PARKER & PARSLEY 82-I, LTD.
(A Texas Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
General Limited
partners partners Total
--------- ---------- ----------
Balance at January 1, 1997 $ 264,514 $1,245,502 $1,510,016
Distributions (26,618) (80,978) (107,596)
Net income 20,334 36,938 57,272
-------- --------- ---------
Balance at March 31, 1997 $ 258,230 $1,201,462 $1,459,692
======== ========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
5
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PARKER & PARSLEY 82-I, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
March 31,
------------------------
1997 1996
---------- ----------
Cash flows from operating activities:
Net income $ 57,272 $ 51,630
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 42,481 29,368
Salvage income from equipment disposals (2,592) -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 33,529 (11,133)
Decrease in accounts payable (1,078) (29,812)
--------- ---------
Net cash provided by operating activities 129,612 40,053
--------- ---------
Cash flows from investing activities:
(Additions to) deletions of oil and gas properties (127) 752
Proceeds from salvage income on equipment disposals 2,592 -
--------- ---------
Net cash provided by investing activities 2,465 752
--------- ---------
Cash flows from financing activities:
Cash distributions to partners (107,596) (44,095)
--------- ---------
Net increase (decrease) in cash and cash equivalents 24,481 (3,290)
Cash and cash equivalents at beginning of period 94,531 83,890
--------- ---------
Cash and cash equivalents at end of period $ 119,012 $ 80,600
========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
6
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PARKER & PARSLEY 82-I, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
(Unaudited)
Note 1. Organization and nature of operations
Parker & Parsley 82-I, Ltd. (the "Partnership") is a limited partnership
organized in 1982 under the laws of the State of Texas.
The Partnership engages primarily in oil and gas exploration, development and
production in Texas and New Mexico and is not involved in any industry segment
other than oil and gas.
Note 2. Basis of presentation
In the opinion of management, the unaudited financial statements as of March 31,
1997 of the Partnership include all adjustments and accruals consisting only of
normal recurring accrual adjustments which are necessary for a fair presentation
of the results for the interim period. However, these interim results are not
necessarily indicative of results for a full year.
The financial statements should be read in conjunction with the financial
statements and the notes thereto contained in the Partnership's Report on Form
10-K for the year ended December 31, 1996, as filed with the Securities and
Exchange Commission, a copy of which is available upon request by writing to
Steven L. Beal, Senior Vice President, 303 West Wall, Suite 101, Midland, Texas
79701.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (1)
Results of Operations
Revenues:
The Partnership's oil and gas revenues increased to $177,998 from $169,318 for
the three months ended March 31, 1997 and 1996, respectively, an increase of
$8,680, or 5%. The increase in revenues resulted from higher average prices
received per barrel of oil and mcf of gas, offset by a 12% decrease in barrels
of oil produced and sold and a 17% decrease in mcf of gas produced and sold. For
the three months ended March 31, 1997, 5,486 barrels of oil were sold compared
to 6,206 for the same period in 1996, a decrease of 720 barrels. For the three
months ended March 31, 1997, 20,714 mcf of gas were sold compared to 24,816 for
the same period in 1996, a decrease of 4,102 mcf. The decreases in oil and gas
production volumes were primarily due to the decline characteristics of the
Partnership's oil and gas properties. Because of these characteristics,
management expects a certain amount of decline in production to continue in the
future until the Partnership's economically recoverable reserves are fully
depleted.
7
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The average price received per barrel of oil increased $2.95, or 15%, from
$19.21 for the three months ended March 31, 1996 to $22.16 for the same period
in 1997, while the average price received per mcf of gas increased 35% from
$2.02 during the three months ended March 31, 1996 to $2.72 for the same period
in 1997. The market price for oil and gas has been extremely volatile in the
past decade, and management expects a certain amount of volatility to continue
in the foreseeable future. The Partnership may therefore sell its future oil and
gas production at average prices lower or higher than that received during the
three months ended March 31, 1997.
Salvage income from equipment disposals of $2,592 was received during the three
months ended March 31, 1997 from equipment credits received on two fully
depleted wells.
Costs and Expenses:
Total costs and expenses increased to $124,730 for the three months ended March
31, 1997 as compared to $118,683 for the same period in 1996, an increase of
$6,047, or 5%. This increase was due to increases in depletion and general and
administrative expenses ("G&A"), offset by a decline in production costs.
Production costs were $76,454 for the three months ended March 31, 1997 and
$83,985 for the same period in 1996 resulting in a $7,531 decrease, or 9%. The
decrease was primarily due to less well repair and maintenance costs.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A
increased, in aggregate, 9% from $5,330 for the three months ended March 31,
1996 to $5,795 for the same period in 1997.
Depletion was $42,481 for the three months ended March 31, 1997 compared to
$29,368 for the same period in 1996, an increase of $13,113, or 45%. The
increase is the result of a downward revision in oil reserves of 107,471
barrels, offset by a decline in oil production of 720 barrels for the three
months ended March 31, 1997 compared to the same period in 1996.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $89,559 during the three
months ended March 31, 1997 from the same period in 1996. The increase was due
to an increase in oil and gas sales receipts and a decrease in expenditures for
production costs.
Net Cash Provided by Investing Activities
The Partnership's principle investing activities during the three months ended
March 31, 1997 and 1996 were related to the addition or disposal of oil and gas
equipment on active properties.
Proceeds of $2,592 were received during the three months ended March 31, 1997
from the disposal of oil and gas equipment on two fully depleted wells.
8
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Net Cash Used in Financing Activities
Cash was sufficient for the three months ended March 31, 1997 to cover
distributions to the partners of $107,596 of which $80,978 was distributed to
the limited partners and $26,618 to the general partners. For the same period
ended March 31, 1996, cash was sufficient for distributions to the partners of
$44,095 of which $33,051 was distributed to the limited partners and $11,044 to
the general partners.
It is expected that future net cash provided by operating activities will be
sufficient for any capital expenditures and any distributions. As the production
from the properties declines, distributions are also expected to decrease.
- ---------------
(1) "Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations" contains forward looking statements that involve
risks and uncertainties. Accordingly, no assurances can be given that the
actual events and results will not be materially different than the
anticipated results described in the forward looking statements.
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K - none
9
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PARKER & PARSLEY 82-1, LTD.
(A Texas Limited Partnership)
S I G N A T U R E S
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.
PARKER & PARSLEY 82-1, LTD.
By: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: May 7, 1997 By: /s/ Steven L. Beal
-------------------------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
10
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 119,012
<SECURITIES> 0
<RECEIVABLES> 73,019
<ALLOWANCES> 0
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<COMMON> 0
<OTHER-SE> 1,459,692
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<SALES> 177,998
<TOTAL-REVENUES> 182,002
<CGS> 0
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<INCOME-TAX> 0
<INCOME-CONTINUING> 57,272
<DISCONTINUED> 0
<EXTRAORDINARY> 0
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