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 June 30, 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-I, 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 12 pages.
Exhibit index on page 11.
<PAGE>
PARKER & PARSLEY 82-I, LTD.
TABLE OF CONTENTS
Page
----
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of June 30, 1997 and
December 31, 1996 ..................................... 3
Statements of Operations for the three and six
months ended June 30, 1997 and 1996....................... 4
Statement of Partners' Capital for the six months
ended June 30, 1997....................................... 5
Statements of Cash Flows for the six months
months ended June 30, 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............................ 11
27. Financial Data Schedule
Signatures.................................................. 12
2
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PARKER & PARSLEY 82-I, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
June 30, December 31,
1997 1996
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $109,081 at June 30
and $94,031 at December 31 $ 109,581 $ 94,531
Accounts receivable - oil and gas sales 63,529 106,548
----------- -----------
Total current assets 173,110 201,079
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 10,327,280 10,327,153
Accumulated depletion (9,081,700) (9,001,467)
----------- -----------
Net oil and gas properties 1,245,580 1,325,686
----------- -----------
$ 1,418,690 $ 1,526,765
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 21,051 $ 16,749
Partners' capital:
General partners 248,455 264,514
Limited partners (4,891 interests) 1,149,184 1,245,502
----------- -----------
1,397,639 1,510,016
----------- -----------
$ 1,418,690 $ 1,526,765
=========== ===========
The financial information included as of June 30, 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 Six months ended
June 30, June 30,
--------------------- ---------------------
1997 1996 1997 1996
--------- --------- --------- ---------
Revenues:
Oil and gas $ 138,574 $ 182,540 $ 316,572 $ 351,858
Interest 1,593 1,327 3,005 2,322
Salvage income from equipment
disposals 1,278 - 3,870 -
Litigation settlement - 43,618 - 43,618
-------- -------- -------- --------
141,445 227,485 323,447 397,798
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 84,880 77,487 161,334 161,472
General and administrative 5,324 5,924 11,119 11,254
Depletion 37,752 25,417 80,233 54,785
Abandoned property - 2,236 - 2,236
-------- -------- -------- --------
127,956 111,064 252,686 229,747
-------- -------- -------- --------
Net income $ 13,489 $ 116,421 $ 70,761 $ 168,051
======== ======== ======== ========
Allocation of net income:
General partners $ 8,811 $ 31,933 $ 29,145 $ 49,246
======== ======== ======== ========
Limited partners $ 4,678 $ 84,488 $ 41,616 $ 118,805
======== ======== ======== ========
Net income per limited
partnership interest $ .96 $ 17.27 $ 8.51 $ 24.29
======== ======== ======== ========
Distributions per limited
partnership interest $ 11.64 $ 19.02 $ 28.20 $ 25.78
======== ======== ======== ========
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 (45,204) (137,934) (183,138)
Net income 29,145 41,616 70,761
-------- --------- ---------
Balance at June 30, 1997 $ 248,455 $1,149,184 $1,397,639
======== ========= =========
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
<PAGE>
PARKER & PARSLEY 82-I, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
June 30,
------------------------
1997 1996
---------- ----------
Cash flows from operating activities:
Net income $ 70,761 $ 168,051
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 80,233 54,785
Salvage income from equipment disposals (3,870) -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 43,019 (5,278)
Increase (decrease) in accounts payable 4,302 (22,009)
--------- ---------
Net cash provided by operating activities 194,445 195,549
--------- ---------
Cash flows from investing activities:
(Additions to) disposals of oil and gas properties (127) 753
Proceeds from salvage income on equipment disposals 3,870 -
--------- ---------
Net cash provided by investing activities 3,743 753
--------- ---------
Cash flows from financing activities:
Cash distributions to partners (183,138) (170,490)
--------- ---------
Net increase in cash and cash equivalents 15,050 25,812
Cash and cash equivalents at beginning of period 94,531 83,890
--------- ---------
Cash and cash equivalents at end of period $ 109,581 $ 109,702
========= =========
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
<PAGE>
PARKER & PARSLEY 82-I, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 1997
(Unaudited)
Note 1. Basis of presentation
In the opinion of management, the unaudited financial statements of Parker &
Parsley 82-I, Ltd. (the "Partnership") as of June 30, 1997 and for the three and
six months ended June 30, 1997 and 1996 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. These interim results
are not necessarily indicative of results for a full year.
Certain information and footnote disclosure normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted in this Form 10-Q pursuant to the rules and
regulations of the Securities and Exchange Commission. 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 Rich Dealy, Controller, 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
Six months ended June 30, 1997 compared with six months ended
June 30, 1996
Revenues:
The Partnership's oil and gas revenues decreased 10% to $316,572 from $351,858
for the six months ended June 30, 1997 as compared to the six months ended June
30, 1996. The decrease in revenues resulted from a 16% decrease in mcf of gas
produced and sold and an 11% decrease in barrels of oil produced and sold,
offset by higher average prices received per barrel of oil and mcf of gas. For
the six months ended June 30, 1997, 10,361 barrels of oil were sold compared to
11,623 for the same period in 1996, a decrease of 1,262 barrels. For the six
months ended June 30, 1997, 40,428 mcf of gas were sold compared to 48,201 mcf
for the same period in 1996, a decrease of 7,773 mcf. The decreases in
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
<PAGE>
The average price received per barrel of oil increased slightly from $20.66 for
the six months ended June 30, 1996 to $20.70 for the same period in 1997, while
the average price received per mcf of gas increased 9% from $2.32 during the six
months ended June 30, 1996 to $2.53 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 six months ended June 30, 1997.
Salvage income from equipment disposals of $3,870 was received during the six
months ended June 30, 1997 from equipment credits received on two fully depleted
wells.
On April 29, 1996, Southmark Corporation, the managing general partner and the
Partnership entered into a final $7.4 million settlement agreement with Jack N.
Price resolving all outstanding litigation between the parties. As a result, all
of the pending lawsuits and judgments have been dismissed, the supersedeas bond
released, and the Reserve released as collateral. On June 28, 1996, a final
distribution was made to the working interest owners of $43,618, which included
$34,033, or $6.96 per limited partnership interest, to the Partnership and its
partners.
Costs and Expenses:
Total costs and expenses increased to $252,686 for the six months ended June 30,
1997 as compared to $229,747 for the same period in 1996, an increase of
$22,939, or 10%. This increase was due to an increase in depletion, offset by
decreases in abandoned property costs, production costs and general and
administrative expenses ("G&A").
Production costs were $161,334 for the six months ended June 30, 1997 and
$161,472 for the same period in 1996 resulting in a $138 decrease. The decrease
was primarily due to a decline in production taxes and ad valorem taxes, offset
by an increase in 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 decreased
slightly from $11,254 for the six months ended June 30, 1996 to $11,119 for the
same period in 1997.
Depletion was $80,233 for the six months ended June 30, 1997 compared to $54,785
for the same period in 1996. This represented an increase in depletion of
$25,448, or 46%. This increase was the result of a decline in oil reserves
during 1997 as a result of lower commodity prices.
Abandoned property costs for the six months ended June 30, 1996 were $2,236 to
plug and abandon one oil and gas well.
8
<PAGE>
Three months ended June 30, 1997 compared with three months ended
June 30, 1996
Revenues:
The Partnership's oil and gas revenues decreased 24% to $138,574 from $182,540
for the three months ended June 30, 1997 as compared to the three months ended
June 30, 1996. The decrease resulted from lower average prices received per
barrel of oil and mcf of gas and by a decrease in barrels of oil and mcf of gas
produced and sold. For the three months ended June 30, 1997, 4,875 barrels of
oil were sold compared to 5,417 for the same period in 1996, a decrease of 542
barrels, or 10%. For the three months ended June 30, 1997, 19,714 mcf of gas
were sold compared to 23,385 for the same period in 1996, a decrease of 3,671
mcf, or 16%. The decreases in production volumes were primarily due to the
decline characteristics of the Partnership's oil and gas properties.
The average price received per barrel of oil decreased $3.29, or 15%, from
$22.33 for the three months ended June 30, 1996 to $19.04 for the three months
ended June 30, 1997, while the average price received per mcf of gas decreased
12% from $2.63 for the three months ended June 30, 1996 to $2.32 for the same
period in 1997.
Salvage income from equipment disposals of $1,278 was received during the three
months ended June 30, 1997 from equipment credits received on two fully depleted
wells.
On April 29, 1996, Southmark Corporation, the managing general partner and the
Partnership entered into a final $7.4 million settlement agreement with Jack N.
Price resolving all outstanding litigation between the parties. As a result, all
of the pending lawsuits and judgments have been dismissed, the supersedeas bond
released, and the Reserve released as collateral. On June 28, 1996, a final
distribution was made to the working interest owners of $43,618, which included
$34,033, or $6.96 per limited partnership interest, to the Partnership and its
partners.
Costs and Expenses:
Total costs and expenses increased to $127,956 for the three months ended June
30, 1997 as compared to $111,064 for the three months ended June 30, 1996, an
increase of $16,892, or 15%. This increase was due to increases in depletion and
production costs, offset by a decrease in abandoned property costs and G&A.
Production costs were $84,880 for the three months ended June 30, 1997 and
$77,487 for the same period in 1996 resulting in a $7,393 increase, or 10%. This
increase was primarily due to additional well repair and maintenance costs,
offset by a decrease in production taxes.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A
decreased, in aggregate, 10% from $5,924 for the three months ended June 30,
1996 to $5,324 for the same period in 1997.
9
<PAGE>
Depletion was $37,752 for the three months ended June 30, 1997 compared to
$25,417 for the same period in 1996. This represented an increase in depletion
of $12,335, or 49%, primarily attributable to a decline in oil reserves during
1997 as a result of lower commodity prices.
Abandoned property costs were $2,236 for the three months ended June 30, 1996 to
plug and abandon one well.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities decreased $1,104 during the six months
ended June 30, 1997 from the same period ended June 30, 1996. This decrease was
due to the receipt of proceeds from the litigation settlement in 1996 as
discussed in Item 2 and a decline in production costs paid, offset by an
increase in oil and gas sales receipts.
Net Cash Provided by Investing Activities
The Partnership's principle investing activities during the six months ended
June 30, 1997 and 1996 were related to the additions or disposals of oil and gas
equipment on active properties.
Proceeds of $3,870 were received during the six months ended June 30, 1997 from
the disposal of oil and gas equipment on two fully depleted wells.
Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1997 to cover
distributions to the partners of $183,138 of which $45,204 was distributed to
the general partners and $137,934 to the limited partners. For the same period
ended June 30, 1996, cash was sufficient for distributions to the partners of
$170,490 of which $44,383 was distributed to the general partners and $126,107
to the limited partners. Cash distributions to the partners of $170,490 for the
six months ended June 30, 1996 included $9,585 to the general partners and
$34,033 to the limited partners, resulting from proceeds received in the
litigation settlement discussed in Item 2.
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.
10
<PAGE>
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
11
<PAGE>
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: August 11, 1997 By: /s/ Rich Dealy
--------------------------------
Rich Dealy, Controller of PPUSA
12
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000714909
<NAME> 82I.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 109,581
<SECURITIES> 0
<RECEIVABLES> 63,529
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 173,110
<PP&E> 10,327,280
<DEPRECIATION> 9,081,700
<TOTAL-ASSETS> 1,418,690
<CURRENT-LIABILITIES> 21,051
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,397,639
<TOTAL-LIABILITY-AND-EQUITY> 1,418,690
<SALES> 316,572
<TOTAL-REVENUES> 323,447
<CGS> 0
<TOTAL-COSTS> 252,686
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 70,761
<INCOME-TAX> 0
<INCOME-CONTINUING> 70,761
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 70,761
<EPS-PRIMARY> 8.51
<EPS-DILUTED> 0
</TABLE>
