UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2000
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)
1400 Williams Square West, 5205 N. O'Connor Blvd., Irving, Texas 75039
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(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code : (972) 444-9001
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 / /
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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 September 30, 2000 and
December 31, 1999................................... 3
Statements of Operations for the three and nine
months ended September 30, 2000 and 1999............. 4
Statement of Partners' Capital for the nine months
ended September 30, 2000............................. 5
Statements of Cash Flows for the nine months ended
September 30, 2000 and 1999.......................... 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....................... 10
27.1 Financial Data Schedule
Signatures............................................. 11
2
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PARKER & PARSLEY 82-I, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
------------ ------------
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash $ 40,512 $ 61,558
Accounts receivable - oil and gas sales 91,618 61,533
----------- -----------
Total current assets 132,130 123,091
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,895,266 9,889,520
Accumulated depletion (9,607,723) (9,587,504)
----------- -----------
Net oil and gas properties 287,543 302,016
----------- -----------
$ 419,673 $ 425,107
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 21,281 $ 13,314
Partners' capital:
General partners 151,078 151,802
Limited partners (4,891 interests) 247,314 259,991
----------- -----------
398,392 411,793
----------- -----------
$ 419,673 $ 425,107
=========== ===========
</TABLE>
The financial information included as of September 30, 2000 has been prepared by
the managing general partner 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)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
--------------------- ---------------------
2000 1999 2000 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues:
Oil and gas $ 191,130 $ 128,826 $ 540,662 $ 315,328
Interest 1,707 797 4,030 1,834
-------- -------- -------- --------
192,837 129,623 544,692 317,162
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 93,508 65,896 276,533 216,407
General and administrative 6,974 6,231 18,306 13,082
Depletion 4,107 6,768 20,219 88,217
-------- -------- -------- --------
104,589 78,895 315,058 317,706
-------- -------- -------- --------
Net income (loss) $ 88,248 $ 50,728 $ 229,634 $ (544)
======== ======== ======== ========
Allocation of net income (loss):
General partners $ 22,678 $ 13,044 $ 60,441 $ 12,443
======== ======== ======== ========
Limited partners $ 65,570 $ 37,684 $ 169,193 $ (12,987)
======== ======== ======== ========
Net income (loss) per limited
partnership interest $ 13.40 $ 7.70 $ 34.59 $ (2.66)
======== ======== ======== ========
</TABLE>
The financial information included herein has been prepared by
the managing general partner 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)
<TABLE>
<CAPTION>
General Limited
partners partners Total
---------- ---------- ----------
<S> <C> <C> <C>
Balance at January 1, 2000 $ 151,802 $ 259,991 $ 411,793
Distributions (61,165) (181,870) (243,035)
Net income 60,441 169,193 229,634
--------- --------- ---------
Balance at September 30, 2000 $ 151,078 $ 247,314 $ 398,392
========= ========= =========
</TABLE>
The financial information included herein has been prepared by
the managing general partner 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)
<TABLE>
<CAPTION>
Nine months ended
September 30,
------------------------
2000 1999
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 229,634 $ (544)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depletion 20,219 88,217
Changes in assets and liabilities:
Accounts receivable (30,085) (26,488)
Accounts payable 7,967 6,641
--------- ---------
Net cash provided by operating
activities 227,735 67,826
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (5,746) (223)
Proceeds from asset dispositions - 704
--------- ---------
Net cash provided by (used in)
investing activities (5,746) 481
--------- ---------
Cash flows used in financing activities:
Cash distributions to partners (243,035) (49,632)
--------- ---------
Net increase (decrease) in cash (21,046) 18,675
Cash at beginning of period 61,558 44,427
--------- ---------
Cash at end of period $ 40,512 $ 63,102
========= =========
</TABLE>
The financial information included herein has been prepared by
the managing general partner 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
September 30, 2000
(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 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 of the
Partnership as of September 30, 2000 and for the three and nine months ended
September 30, 2000 and 1999 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 reclassifications
may have been made to the September 30, 1999 financial statements to conform to
the September 30, 2000 financial statement presentations.
Certain information and footnote disclosures 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, 1999, as filed with the Securities and Exchange Commission, a copy
of which is available upon request by writing to Rich Dealy, Vice President and
Chief Accounting Officer, 5205 North O'Connor Boulevard, 1400 Williams Square
West, Irving, Texas 75039-3746.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (1)
Results of Operations
Nine months ended September 30, 2000 compared with nine months ended September
30, 1999
Revenues:
The Partnership's oil and gas revenues increased 71% to $540,662 for the nine
months ended September 30, 2000 as compared to $315,328 for the same period in
1999. The increase in revenues resulted from higher average prices received,
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offset by a decrease in production. For the nine months ended September 30,
2000, 12,935 barrels of oil, 5,029 barrels of natural gas liquids ("NGLs") and
35,584 mcf of gas were sold, or 23,895 barrel of oil equivalents ("BOEs"). For
the nine months ended September 30, 1999, 13,535 barrels of oil, 5,381 barrels
of NGLs and 37,870 mcf of gas were sold, or 25,228 BOEs.
The average price received per barrel of oil increased $13.59, or 92%, from
$14.75 for the nine months ended September 30, 1999 to $28.34 for the same
period in 2000. The average price received per barrel of NGLs increased $5.52,
or 67%, from $8.20 during the nine months ended September 30, 1999 to $13.72 for
the same period in 2000. The average price received per mcf of gas increased 56%
from $1.89 during the nine months ended September 30, 1999 to $2.95 for the same
period in 2000. 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 nine months ended September 30, 2000.
Costs and Expenses:
Total costs and expenses decreased to $315,058 for the nine months ended
September 30, 2000 as compared to $317,706 for the same period in 1999, a
decrease of $2,648, or 1%. This decrease was due to a decline in depletion,
offset by increases in production costs and general and administrative expenses
("G&A").
Production costs were $276,533 for the nine months ended September 30, 2000 and
$216,407 for the same period in 1999 resulting in a $60,126 increase, or 28%.
This increase was primarily due to additional well maintenance costs incurred to
stimulate well production of $41,944 and higher production taxes of $17,430
associated with higher oil and gas prices.
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, 40% from $13,082 for the nine months ended September
30, 1999 to $18,306 for the same period in 2000 primarily due to a higher
allocation of the managing general partner's G&A being allocated (limited to 3%
of oil and gas revenues) as a result of increased oil and gas revenues.
Depletion was $20,219 for the nine months ended September 30, 2000 compared to
$88,217 for the same period in 1999, a decrease of $67,998, or 77%. This
decrease was attributable to an increase in proved reserves due to higher
commodity prices and a decline in oil production of 600 barrels when compared to
the respective information for the same period in 1999.
Three months ended September 30, 2000 compared with three months ended September
30, 1999
Revenues:
The Partnership's oil and gas revenues increased 48% to $191,130 for the three
months ended September 30, 2000 as compared to $128,826 for the same period in
1999. The increase in revenues resulted from higher average prices received,
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offset by a decrease in production. For the three months ended September 30,
2000, 4,072 barrels of oil, 1,737 barrels of NGLs and 12,327 mcf of gas were
sold, or 7,864 BOEs. For the three months ended September 30, 1999, 4,238
barrels of oil, 1,789 barrels of NGLs and 12,923 mcf of gas were sold, or 8,181
BOEs.
The average price received per barrel of oil increased $11.47, or 61%, from
$18.79 for the three months ended September 30, 1999 to $30.26 for the same
period in 2000. The average price received per barrel of NGLs increased $4.18,
or 39%, from $10.62 during the three months ended September 30, 1999 to $14.80
for the same period in 2000. The average price received per mcf of gas increased
46% from $2.34 during the three months ended September 30, 1999 to $3.42 for the
same period in 2000.
Costs and Expenses:
Total costs and expenses increased to $104,589 for the three months ended
September 30, 2000 as compared to $78,895 for the same period in 1999, an
increase of $25,694, or 33%. This increase was due to increases in production
costs and G&A, offset by a decrease in depletion.
Production costs were $93,508 for the three months ended September 30, 2000 and
$65,896 for the same period in 1999 resulting in a $27,612 increase, or 42%. The
increase was primarily due to additional well maintenance costs incurred to
stimulate well production of $21,359 and higher production taxes of $6,201
associated with higher oil and gas prices.
During this period, G&A increased, in aggregate, 12% from $6,231 for the three
months ended September 30, 1999 to $6,974 for the same period in 2000 primarily
due to a higher allocation of the managing general partner's G&A being allocated
(limited to 3% of oil and gas revenues) as a result of increased oil and gas
revenues.
Depletion was $4,107 for the three months ended September 30, 2000 compared to
$6,768 for the same period in 1999, representing a decrease of $2,661, or 39%.
This decrease was attributable to an increase in proved reserves as a result of
higher commodity prices and a decline in oil production of 166 barrels when
compared to the respective information for the same period in 1999.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $159,909 during the nine
months ended September 30, 2000 from the same period ended September 30, 1999.
This increase was due to an increase in oil and gas sales receipts of $223,933,
offset by increases in production costs paid of $56,044 and G&A expenses paid of
$7,980.
Net Cash Provided by (Used in) Investing Activities
The Partnership's principal investing activities during the nine months ended
September 30, 2000 and 1999 were related to upgrades of oil and gas equipment on
active properties.
9
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Proceeds from asset dispositions of $704 were received during the nine months
ended September 30, 1999 from equipment credits received on one well.
Net Cash Used in Financing Activities
For the nine months ended September 30, 2000, cash distributions to the partners
were $243,035, of which $61,165 was distributed to the general partners and
$181,870 to the limited partners. For the same period ended September 30, 1999,
cash distributions to the partners were $49,632, of which $12,052 was
distributed to the general partners and $37,580 to the limited partners.
---------------
(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
27.1 Financial Data Schedule
(b) Reports on Form 8-K - none
10
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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: Pioneer Natural Resources USA, Inc.,
Managing General Partner
Dated: November 7, 2000 By: /s/ Rich Dealy
-----------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
11
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