<PAGE>
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 quarter ended Commission File Number
June 30, 1995 0-12093
DYCO OIL AND GAS PROGRAM 1983-2
(A LIMITED PARTNERSHIP)
(Exact Name of Registrant as specified in its charter)
Minnesota 41-1454574
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or organization) Number)
Samson Plaza, Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(918) 583-1791
----------------------------------------------------
(Registrant's telephone number, including area code)
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>
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DYCO OIL AND GAS PROGRAM 1983-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1995 1994
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $178,352 $108,099
Accrued oil and gas sales, including
$22,559 and $19,089 due from
related parties (Note 2) . . . . . . 26,707 33,608
-------- --------
Total current assets . . . . . . . $205,059 $141,707
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 137,116 168,602
DEFERRED CHARGE . . . . . . . . . . . . . 89,884 89,884
-------- --------
$432,059 $400,193
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 8,799 $ 9,027
Gas imbalance payable . . . . . . . . 7,775 7,775
-------- --------
Total current liabilities . . . . . $ 16,574 $ 16,802
ACCRUED LIABILITY . . . . . . . . . . . . 37,419 37,419
PARTNERS' CAPITAL:
General Partner, issued and outstanding
64 units . . . . . . . . . . . . . . 3,781 3,460
Limited Partners, issued and outstanding,
6,400 units . . . . . . . . . . . . 374,285 342,512
-------- --------
Total Partners' capital . . . . . . $378,066 $345,972
-------- --------
$432,059 $400,193
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-2-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1983-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- --------
REVENUES:
Oil and gas sales, including
$33,536 and $55,204 of sales
to related parties (Note 2) . . . . $119,860 $81,181
Interest . . . . . . . . . . . . . . . 1,994 276
-------- -------
$121,854 $81,457
-------- -------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 33,379 $35,119
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 23,690 17,820
General and administrative (Note 2) . 16,658 12,060
-------- -------
$ 73,727 $64,999
-------- -------
NET INCOME . . . . . . . . . . . . . . . $ 48,127 $16,458
======== =======
GENERAL PARTNER (1%) - net income . . . . $ 481 $ 164
======== =======
LIMITED PARTNERS (99%) - net income . . . $ 47,646 $16,294
======== =======
NET INCOME PER UNIT . . . . . . . . . . . $ 7 $ 2
======== =======
UNITS OUTSTANDING . . . . . . . . . . . . 6,464 6,464
======== =======
The accompanying condensed notes are an
integral part of these financial statements.
-3-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1983-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
REVENUES:
Oil and gas sales, including
$53,172 and $96,745 of sales
to related parties (Note 2) . . . . $160,002 $166,667
Interest . . . . . . . . . . . . . . . 3,286 1,192
-------- --------
$163,288 $167,859
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 64,593 $ 71,125
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 31,486 32,882
General and administrative (Note 2) . 35,115 29,523
-------- --------
$131,194 $133,530
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 32,094 $ 34,329
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 321 $ 343
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 31,773 $ 33,986
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 5 $ 5
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 6,464 6,464
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-4-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1983-2 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . $ 32,094 $ 34,329
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . 31,486 32,882
Decrease (increase) in accrued oil and
gas sales . . . . . . . . . . . . . 6,901 ( 20,915)
(Decrease) increase in accounts payable ( 228) 1,630
-------- --------
Net cash provided by operating
activities . . . . . . . . . . . . $ 70,253 $ 47,926
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash used by investing activities $ - $ -
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . $ - ($129,280)
-------- --------
Net cash used by financing activities $ - ($129,280)
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . . $ 70,253 ($ 81,354)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD . . . . . . . . . . . . . . . . . 108,099 143,781
-------- --------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD . . . . . . . . . . . . . . . . . $178,352 $ 62,427
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-5-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1983-2 LIMITED PARTNERSHIP
CONDENSED NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 1995, statements of operations
for the three and six months ended June 30, 1995 and 1994, and
statements of cash flows for the six months ended June 30, 1995
and 1994 have been prepared by Dyco Petroleum Corporation
("Dyco"), the General Partner of the Dyco Oil and Gas Program
1983-2 Limited Partnership (the "Program") without audit. In
the opinion of management all adjustments (which include only
normal recurring adjustments) necessary to present fairly the
financial position at June 30, 1995, results of operations for
the three and six months ended June 30, 1995 and 1994 and
changes in cash flows for the six months ended June 30, 1995 and
1994 have been made.
Information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto
included in the Program's Annual Report on Form 10-K for the
year ended December 31, 1994. The results of operations for the
period ended June 30, 1995 are not necessarily indicative of the
results to be expected for the full year.
The limited partners' net income or loss per unit is based upon
each $5,000 initial capital contribution.
OIL AND GAS PROPERTIES
----------------------
Oil and gas operations are accounted for using the full cost
method of accounting. All productive and non-productive costs
associated with the acquisition, exploration and development of
oil and gas reserves are capitalized. Sales and abandonments of
properties are accounted for as adjustments of capitalized costs
with no gain or loss recognized, unless such adjustments would
significantly alter the relationship between capitalized costs
and proved oil and gas reserves.
The provision for depreciation, depletion, and amortization of
oil and gas properties is calculated by dividing the oil and gas
sales dollars during the year by the estimated future gross
income from the oil and gas properties and applying the
resulting rate to the net remaining costs of oil and gas
properties that have been capitalized, plus estimated future
development costs.
-6-
<PAGE>
<PAGE>
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of the Program's partnership agreement, Dyco is
entitled to receive a reimbursement for all direct expenses and
general and administrative, geological and engineering expenses
it incurs on behalf of the Program. During the six months ended
June 30, 1995 and 1994 such expenses totaled $35,115 and
$29,523, respectively, of which $21,582 and $21,582 were paid to
Dyco.
Affiliates of the Program are the operators of certain of the
Program's properties and their policy is to bill the Program for
all customary charges and cost reimbursements associated with
their activities, together with any compressor rentals,
consulting, or other services provided.
The Program sells gas at market prices to Premier Gas Company
("Premier"), an affiliated company, and Premier may then resell
such gas to third parties at market prices. During the six
months ended June 30, 1995 and 1994 these sales totaled $53,172
and $96,745, respectively. At June 30, 1995 accrued oil and gas
sales included $22,559 due from Premier.
-7-
<PAGE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
Net proceeds from the Program's operations less necessary
operating capital are distributed to investors on a
quarterly basis. The net proceeds from production are not
reinvested in productive assets, except to the extent that
producing wells are improved, or where methods are employed
to permit more efficient recovery of the Program's reserves
which would result in a positive economic impact.
The Program's available capital from subscriptions has been
spent on oil and gas drilling activities. There should not
be any further material capital resource commitments in the
future. The Program has no bank debt commitments. Cash for
operational purposes will be provided by current oil and gas
production.
RESULTS OF OPERATIONS
----------------------
THREE MONTHS ENDED JUNE 30, 1995 AS COMPARED TO THE THREE
MONTHS ENDED JUNE 30, 1994.
Three months ended June 30,
---------------------------
1995 1994
---- ----
Oil and gas sales $119,860 $81,181
Oil and gas production expenses $ 33,379 $35,119
Barrels produced 210 273
Mcf produced 86,931 46,070
Average price/Bbl $ 17.70 $ 12.08
Average price/Mcf $ 1.34 $ 1.69
As shown in the table, oil and natural gas sales increased
47.6% for the three months ended June 30, 1995 as compared
to the three months ended June 30, 1994. This increase
resulted primarily from an increase in the volumes of
natural gas sold and an increase in the average price of oil
sold, partially offset by a decrease in the average price of
natural gas sold during the three months ended June 30, 1995
as compared to the three months ended June 30, 1994.
Volumes of natural gas sold increased 40,861 Mcf while
volumes of oil sold decreased 63 barrels during the three
months ended June 30, 1995 as compared to the three months
ended June 30, 1994. The increase in the volumes of natural
gas sold was primarily the result of significant positive
prior period volume adjustments from a purchaser on a well
during the three months ended June 30, 1995 as compared to
the three months ended June 30, 1994. Average natural gas
-8-
<PAGE>
<PAGE>
prices decreased to $1.34 per Mcf for the three months ended
June 30, 1995 from $1.69 per Mcf for the three months ended
June 30, 1994, while average oil prices increased to $17.70
per barrel for the three months ended June 30, 1995 from
$12.08 per barrel for the three months ended June 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $1,740 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. This decrease was primarily the
result of a decrease in the general repair and maintenance
expenses incurred by the Program during the three months
ended June 30, 1995 as compared to the three months ended
June 30, 1994. As a percentage of oil and gas sales, these
expenses decreased to 27.8% for the three months ended June
30, 1995 from 43.3% for the three months ended June 30,
1994. This percentage decrease resulted primarily from the
increase in the volumes of natural gas sold associated with
the positive prior period volume adjustments during the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994 as discussed above.
Depreciation, depletion, and amortization of oil and gas
properties increased $5,870 for the three months ended June
30, 1995 as compared to the three months ended June 30,
1994. This increase was primarily due to the increase in
the volumes of natural gas sold during the three months
ended June 30, 1995 as compared to the three months ended
June 30, 1994, partially offset by a significant increase in
the estimate of the 1983-2 Program's remaining natural gas
reserves. As a percentage of oil and gas sales, this
expense remained relatively constant at 19.8% for the three
months ended June 30, 1995 from 22.0% for the three months
ended June 30, 1994.
General and administrative expenses increased $4,598 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. This dollar increase resulted
primarily from an increase in the Program's professional
fees during the three months ended June 30, 1995 as compared
to the three months ended June 30, 1994. As a percentage of
oil and gas sales, these expenses remained relatively
constant at 13.9% for the three months ended June 30, 1995
compared to 14.9% for the three months ended June 30, 1994.
-9-
<PAGE>
<PAGE>
SIX MONTHS ENDED JUNE 30, 1995 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1994.
Six months ended June 30,
-------------------------
1995 1994
---- ----
Oil and gas sales $160,002 $166,667
Oil and gas production expenses $ 64,593 $ 71,125
Barrels produced 465 765
Mcf produced 115,939 85,928
Average price/Bbl $ 15.00 $ 10.17
Average price/Mcf $ 1.32 $ 1.85
As shown in the table, oil and natural gas sales decreased
4.0% for the six months ended June 30, 1995 as compared to
the six months ended June 30, 1994. The decrease resulted
from a decrease in the average price of natural gas sold and
a decrease in the volumes of oil sold, partially offset by
an increase in the volumes of natural gas sold and an
increase in the average price of oil sold. Volumes of
natural gas sold increased 30,011 Mcf for the six months
ended June 30, 1995 as compared to the six months ended June
30, 1994, while volumes of oil sold decreased by 300 barrels
for the six months ended June 30, 1995 as compared to the
six months ended June 30, 1994. The increase in the volumes
of natural gas sold was primarily the result of significant
positive prior period volume adjustments from a purchaser on
one of the Program's wells during the six months ended June
30, 1995, while the decrease in the volumes of oil sold was
primarily the result of a positive prior period volume
adjustment from a purchaser on another of the Program's
wells during the six months ended June 30, 1994. Average
natural gas prices decreased to $1.32 per Mcf for the six
months ended June 30, 1995 from $1.85 per Mcf for the six
months ended June 30, 1994, while average oil prices
increased to $15.00 per barrel for the six months ended June
30, 1995 from $10.17 per barrel for the six months ended
June 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $6,532 for the six
months ended June 30, 1995 as compared to the six months
ended June 30, 1994. This decrease was primarily the result
of a decrease in the general repair and maintenance expenses
incurred by the Program during the six months ended June 30,
1995 as compared to the six months ended June 30, 1994. As
a percentage of oil and gas sales, these expenses decreased
to 40.4% for the six months ended June 30, 1995 from 42.7%
for the six months ended June 30, 1994. This percentage
decrease resulted primarily from the dollar decrease in
production expenses as discussed above and the increase in
the average price of oil sold, partially offset by a
decrease in the average price of natural gas sold during the
-10-
<PAGE>
<PAGE>
six months ended June 30, 1995 as compared to the six months
ended June 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased $1,396 for the six months ended June
30, 1995 as compared to the six months ended June 30, 1994.
This decrease was primarily due to a significant increase in
the estimate of the 1983-2 Program's remaining natural gas
reserves, partially offset by an increase in the volumes of
natural gas sold during the six months ended June 30, 1995
as compared to the six months ended June 30, 1994. As a
percentage of oil and gas sales, this expense remained
relatively constant at 19.6% for the six months ended June
30, 1995 compared to 19.7% for the six months ended June 30,
1994. This expense stated as a percentage of oil and gas
sales remained relatively constant due to the offsetting
effects of the increase in the estimate of the Program's
remaining natural reserves and the increases in the average
prices of oil and natural gas sold for the six months ended
June 30, 1995 as compared to the similar period in 1994.
General and administrative expenses increased $5,592 for the
six months ended June 30, 1995 as compared to the six months
ended June 30, 1994. This dollar increase resulted
primarily from an increase in the Program's professional
fees during the six months ended June 30, 1995 as compared
to the six months ended June 30, 1994. As a percentage of
oil and gas sales, these expenses increased to 21.9% for the
six months ended June 30, 1995 from 17.7% for the six months
ended June 30, 1994. This percentage increase was primarily
due to a decrease in the average price of natural gas sold
and a decrease in the volume of oil sold, partially offset
by an increase in the volumes of natural gas sold and an
increase in the average price of oil sold for the six months
ended June 30, 1995 as compared to the similar period in
1994.
-11-
<PAGE>
<PAGE>
PART II: OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
-12-
<PAGE>
<PAGE>
SIGNATURES
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.
DYCO OIL AND GAS PROGRAM 1983-2 LIMITED PARTNERSHIP
(Registrant)
By: DYCO PETROLEUM CORPORATION
General Partner
Date: August 10, 1995 By: /s/Dennis R. Neill
---------------------------
(Signature)
Dennis R. Neill
Senior Vice President
Date: August 10, 1995 By: /s/Patrick M. Hall
----------------------------
(Signature)
Patrick M. Hall
Senior Vice President -
Controller
Principal Accounting Officer
-13-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000715369
<NAME> DYCO OIL AND GAS PROGRAM 1983-2 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 178,352
<SECURITIES> 0
<RECEIVABLES> 26,707
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 205,059
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 432,059
<CURRENT-LIABILITIES> 16,574
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 378,066
<TOTAL-LIABILITY-AND-EQUITY> 432,059
<SALES> 160,002
<TOTAL-REVENUES> 163,288
<CGS> 0
<TOTAL-COSTS> 131,194
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 32,094
<INCOME-TAX> 0
<INCOME-CONTINUING> 32,094
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 32,094
<EPS-PRIMARY> 5.00
<EPS-DILUTED> 0
</TABLE>
