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 June 30, 2000
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)
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 June 30, 2000 and
December 31, 1999...................................... 3
Statements of Operations for the three and six
months ended June 30, 2000 and 1999..................... 4
Statement of Partners' Capital for the six months
ended June 30, 2000..................................... 5
Statements of Cash Flows for the six months
months ended June 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
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PARKER & PARSLEY 82-I, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
<TABLE>
BALANCE SHEETS
June 30, December 31,
2000 1999
----------- -----------
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash $ 60,450 $ 61,558
Accounts receivable - oil and gas sales 90,077 61,533
---------- ----------
Total current assets 150,527 123,091
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,891,013 9,889,520
Accumulated depletion (9,603,616) (9,587,504)
---------- ----------
Net oil and gas properties 287,397 302,016
---------- ----------
$ 437,924 $ 425,107
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 21,674 $ 13,314
Partners' capital:
General partners 155,364 151,802
Limited partners (4,891 interests) 260,886 259,991
---------- ----------
416,250 411,793
---------- ----------
$ 437,924 $ 425,107
========== ==========
</TABLE>
The financial information included as of June 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>
Three months ended Six months ended
June 30, June 30,
--------------------- ---------------------
2000 1999 2000 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues:
Oil and gas $ 177,445 $ 101,099 $ 349,532 $ 186,502
Interest 1,350 529 2,323 1,037
-------- -------- -------- --------
178,795 101,628 351,855 187,539
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 98,002 75,833 183,025 150,511
General and administrative 5,969 3,538 11,332 6,851
Depletion 7,055 7,995 16,112 81,449
-------- -------- -------- --------
111,026 87,366 210,469 238,811
-------- -------- -------- --------
Net income (loss) $ 67,769 $ 14,262 $ 141,386 $ (51,272)
======== ======== ======== ========
Allocation of net income (loss):
General partners $ 18,000 $ 4,765 $ 37,763 $ (601)
======== ======== ======== ========
Limited partners $ 49,769 $ 9,497 $ 103,623 $ (50,671)
======== ======== ======== ========
Net income (loss) per limited
partnership interest $ 10.18 $ 1.94 $ 21.19 $ (10.36)
======== ======== ======== ========
</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>
General Limited
partners partners Total
--------- --------- ---------
<S> <C> <C> <C>
Balance at January 1, 2000 $ 151,802 $ 259,991 $ 411,793
Distributions (34,201) (102,728) (136,929)
Net income 37,763 103,623 141,386
-------- -------- --------
Balance at June 30, 2000 $ 155,364 $ 260,886 $ 416,250
======== ======== ========
</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>
Six months ended
June 30,
----------------------
2000 1999
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 141,386 $ (51,272)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depletion 16,112 81,449
Changes in assets and liabilities:
Accounts receivable (28,544) (17,082)
Accounts payable 8,360 5,680
-------- --------
Net cash provided by operating
activities 137,314 18,775
-------- --------
Cash flows from investing activities:
Additions to oil and gas properties (1,493) -
Proceeds from asset dispositions - 695
-------- --------
Net cash provided by (used in)
investing activities (1,493) 695
-------- --------
Cash flows used in financing activities:
Cash distributions to partners (136,929) (17,974)
-------- --------
Net increase (decrease) in cash (1,108) 1,496
Cash at beginning of period 61,558 44,427
-------- --------
Cash at end of period $ 60,450 $ 45,923
======== ========
</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
June 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 June 30, 2000 and for the three and six months ended June 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 June 30, 1999 financial statements to conform to the June 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
Six months ended June 30, 2000 compared with six months ended
June 30, 1999
Revenues:
The Partnership's oil and gas revenues increased 87% to $349,532 for the six
months ended June 30, 2000 as compared to $186,502 for the same period in 1999.
The increase in revenues resulted from higher average prices received, offset by
a decrease in production. For the six months ended June 30, 2000, 8,863 barrels
of oil, 3,292 barrels of natural gas liquids ("NGLs") and 23,257 mcf of gas were
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sold, or 16,031 barrel of oil equivalents ("BOEs"). For the six months ended
June 30, 1999, 9,297 barrels of oil, 3,592 barrels of NGLs and 24,947 mcf of gas
were sold, or 17,047 BOEs.
The average price received per barrel of oil increased $14.54, or 113%, from
$12.91 for the six months ended June 30, 1999 to $27.45 for the same period in
2000. The average price received per barrel of NGLs increased $6.17, or 88%,
from $6.99 for the six months ended June 30, 1999 to $13.16 for the same period
in 2000. The average price received per mcf of gas increased 63% from $1.66
during the six months ended June 30, 1999 to $2.71 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 six
months ended June 30, 2000.
The volatility of commodity prices has had, and continues to have, a significant
impact on the Partnership's revenues and operating cash flow and could result in
additional decreases to the carrying value of the Partnership's oil and gas
properties.
Costs and Expenses:
Total costs and expenses decreased to $210,469 for the six months ended June 30,
2000 as compared to $238,811 for the same period in 1999, a decrease of $28,342,
or 12%. This decrease was attributable to a decline in depletion costs, offset
by increases in production costs and general and administrative expenses
("G&A").
Production costs were $183,025 for the six months ended June 30, 2000 and
$150,511 for the same period in 1999 resulting in a $32,514 increase, or 22%.
This increase was due to additional well maintenance costs incurred to stimulate
well production and higher production taxes due to 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, 65% from $6,851 for the six months ended June 30, 1999
to $11,332 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 $16,112 for the six months ended June 30, 2000 compared to $81,449
for the same period in 1999, a decrease of $65,337, or 80%. This decrease was
the result of an increase in proved reserves during the period ended June 30,
2000 due to higher commodity prices and a decline in oil production of 434
barrels for the six months ended June 30, 2000 compared to the same period in
1999.
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Three months ended June 30, 2000 compared with three months ended June 30, 1999
Revenues:
The Partnership's oil and gas revenues increased 76% to $177,445 for the three
months ended June 30, 2000 as compared to $101,099 for the same period in 1999.
The increase in revenues resulted from higher average prices received, offset by
a decrease in production. For the three months ended June 30, 2000, 4,430
barrels of oil, 1,482 barrels of NGLs and 11,022 mcf of gas were sold, or 7,749
BOEs. For the three months ended June 30, 1999, 4,285 barrels of oil, 1,840
barrels of NGLs and 12,774 mcf of gas were sold, or 8,254 BOEs.
The average price received per barrel of oil increased $13.46, or 95%, from
$14.21 for the three months ended June 30, 1999 to $27.67 for the same period in
2000. The average price received per barrel of NGLs increased $4.85, or 54%,
from $8.90 during the three months ended June 30, 1999 to $13.75 for the same
period in 2000. The average price received per mcf of gas increased 67% from
$1.87 during the three months ended June 30, 1999 to $3.13 for the same period
in 2000.
Costs and Expenses:
Total costs and expenses increased to $111,026 for the three months ended June
30, 2000 as compared to $87,366 for the same period in 1999, an increase of
$23,660, or 27%. This increase was due to increases in production costs and G&A,
offset by a decline in depletion.
Production costs were $98,002 for the three months ended June 30, 2000 and
$75,833 for the same period in 1999 resulting in a $22,169 increase, or 29%.
This increase was due to additional well maintenance costs incurred to stimulate
well production and higher production taxes due to higher oil and gas prices.
During this period, G&A increased, in aggregate, 69% from $3,538 for the three
months ended June 30, 1999 to $5,969 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 $7,055 for the three months ended June 30, 2000 compared to $7,995
for the same period in 1999, a decrease of $940, or 12%. This decrease was
attributable to an increase in proved reserves during the period ended June 30,
1999 as a result of higher commodity prices, offset by an increase in oil
production of 145 barrels for the three months ended June 30, 2000 compared to
the same period in 1999.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $118,539 during the six
months ended June 30, 2000 from the same period ended June 30, 1999. This
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increase was due to an increase in oil and gas sales receipts of $152,854,
offset by increases in operating costs paid of $28,481 and G&A expenses paid of
$5,834.
Net Cash Provided by (Used in) Investing Activities
The Partnership's principle investing activities during the six months ended
June 30, 2000 were related to upgrades of oil and gas equipment on active
properties.
Proceeds from asset dispositions of $695 were received during the six months
ended June 30, 1999 primarily from equipment credits received on active
properties.
Net Cash Used in Financing Activities
For the six months ended June 30, 2000, cash distributions to the partners were
$136,929, of which $34,201 was distributed to the general partners and $102,728
to the limited partners. For the same period ended June 30, 1999, cash
distributions to the partners were $17,974, of which $4,392 was distributed to
the general partners and $13,582 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-I, 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-I, LTD.
By: Pioneer Natural Resources USA, Inc.
Managing General Partner
Dated: August 11, 2000 By: /s/ Rich Dealy
--------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
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