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. 2-75530B
PARKER & PARSLEY 82-II, LTD.
(Exact name of Registrant as specified in its charter)
Texas 75-1867115
(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-II, 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-II, 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 $174,478 at March 31
and $178,658 at December 31 $ 174,978 $ 179,158
Accounts receivable - oil and gas sales 82,817 114,039
---------- ----------
Total current assets 257,795 293,197
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,058,529 9,058,497
Accumulated depletion (7,491,529) (7,457,953)
---------- ----------
Net oil and gas properties 1,567,000 1,600,544
---------- ----------
$ 1,824,795 $ 1,893,741
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 15,478 $ 17,546
Partners' capital:
General partners 207,248 217,566
Limited partners (6,126 interests) 1,602,069 1,658,629
---------- ----------
1,809,317 1,876,195
---------- ----------
$ 1,824,795 $ 1,893,741
========== ==========
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-II, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
-------------------------
1997 1996
--------- ---------
Revenues:
Oil and gas $ 176,592 $ 168,190
Interest 2,230 2,058
-------- --------
178,822 170,248
-------- --------
Costs and expenses:
Oil and gas production 77,155 81,385
General and administrative 6,067 5,271
Depletion 33,576 29,053
-------- --------
116,798 115,709
-------- --------
Net income $ 62,024 $ 54,539
======== ========
Allocation of net income:
General partners $ 20,568 $ 17,993
======== ========
Limited partners $ 41,456 $ 36,546
======== ========
Net income per limited partnership
interest $ 6.77 $ 5.97
======== ========
Distributions per limited partnership
interest $ 16.00 $ 7.00
======== ========
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-II, LTD.
(A Texas Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
General Limited
partners partners Total
---------- ----------- -----------
Balance at January 1, 1997 $ 217,566 $ 1,658,629 $ 1,876,195
Distributions (30,886) (98,016) (128,902)
Net income 20,568 41,456 62,024
--------- ---------- ----------
Balance at March 31, 1997 $ 207,248 $ 1,602,069 $ 1,809,317
========= ========== ==========
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-II, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
March 31,
------------------------
1997 1996
--------- ---------
Cash flows from operating activities:
Net income $ 62,024 $ 54,539
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 33,576 29,053
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 31,222 (21,858)
Decrease in accounts payable (2,068) (25,364)
-------- --------
Net cash provided by operating activities 124,754 36,370
-------- --------
Cash flows from investing activities:
Additions to oil and gas properties (32) (62)
Cash flows from financing activities:
Cash distributions to partners 128,902) (57,257)
-------- --------
Net decrease in cash and cash equivalents (4,180) (20,949)
Cash and cash equivalents at beginning of period 179,158 199,420
-------- --------
Cash and cash equivalents at end of period $ 174,978 $ 178,471
======== ========
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-II, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
(Unaudited)
Note 1. Organization and nature of operations
Parker & Parsley 82-II, 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 $176,592 from $168,190 for
the three months ended March 31, 1997 and 1996, respectively, an increase of 5%.
The increase in revenues resulted from higher average prices received per barrel
of oil and mcf of gas, offset by a 4% decline in barrels of oil produced and
sold and a 27% decline in mcf of gas produced and sold. For the three months
ended March 31, 1997, 5,847 barrels of oil were sold compared to 6,067 for the
same period in 1996, a decrease of 220 barrels. For the three months ended March
31, 1997, 16,970 mcf of gas were sold compared to 23,309 for the same period in
1996, a decrease of 6,339 mcf. The declines in production volumes were primarily
attributable 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 $2.89, or 15%, from
$19.07 for the three months ended March 31, 1996 to $21.96 for the same period
in 1997, while the average price received per mcf of gas increased 26% from
$2.25 during the three months ended March 31, 1996 to $2.84 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.
Costs and Expenses:
Total costs and expenses increased to $116,798 for the three months ended March
31, 1997 as compared to $115,709 for the same period in 1996, an increase of
$1,089. This increase was due to increases in general and administrative
expenses ("G&A") and depletion, offset by a decrease in production costs.
Production costs were $77,155 for the three months ended March 31, 1997 and
$81,385 for the same period in 1996 resulting in a $4,230 decrease, or 5%. The
decrease was due to declines in ad valorem taxes and 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, 15% from $5,271 for the three months ended March 31,
1996 to $6,067 for the same period in 1997.
Depletion was $33,576 for the three months ended March 31, 1997 compared to
$29,053 for the same period in 1996, an increase of $4,523, or 16%. This
increase is primarily attributable to a downward revision in oil reserves,
offset by a decline in oil production of 220 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 $88,384 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 declines in expenditures for
production costs.
Net Cash Used in Financing Activities
Cash was sufficient for the three months ended March 31, 1997 to cover
distributions to the partners of $128,902 of which $98,016 was distributed to
the limited partners and $30,886 to the general partners. For the same period
ended March 31, 1996, cash was sufficient for distributions to the partners of
$57,257 of which $42,882 was distributed to the limited partners and $14,375 to
the general partners.
8
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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-II, 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-II, 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
<PAGE>
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