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. 2-75530B
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)
1400 Williams Square West, 5205 N. O'Connor Blvd., Irving, Texas 75039
---------------------------------------------------------------- ---------
(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-II, LTD.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. nancial 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-II, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
<TABLE>
BALANCE SHEETS
<CAPTION>
September 30, December 31,
2000 1999
------------ -----------
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash $ 105,603 $ 91,672
Accounts receivable - oil and gas sales 81,271 68,374
---------- ----------
Total current assets 186,874 160,046
---------- ----------
Oil and gas properties - at cost, based on the
succcessful efforts accounting method 8,302,450 8,297,224
Accumulated depletion (7,519,003) (7,485,919)
---------- ----------
Net oil and gas properties 783,447 811,305
---------- ----------
$ 970,321 $ 971,351
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 21,016 $ 13,126
Partners' capital:
General partners 121,059 118,851
Limited partners (6,126 interests) 828,246 839,374
---------- ----------
949,305 958,225
---------- ----------
$ 970,321 $ 971,351
========== ==========
</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-II, 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 $ 186,321 $ 146,263 $ 520,927 $ 325,353
Interest 1.871 1,093 4,810 2,476
-------- -------- -------- --------
188,192 147,356 525,737 327,829
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 80,741 62,023 227,999 199,280
General and administrative 6,711 6,670 17,538 13,238
Depletion 11,881 12,643 33,084 48,589
-------- -------- -------- --------
99,333 81,336 278,621 261,107
-------- -------- -------- --------
Net income $ 88,859 $ 66,020 $ 247,116 $ 66,722
======== ======== ======== ========
Allocation of net income:
General partners $ 23,997 $ 17,456 $ 66,742 $ 23,322
======== ======== ======== ========
Limited partners $ 64,862 $ 48,564 $ 180,374 $ 43,400
======== ======== ======== ========
Net income per limited
partnership interest $ 10.58 $ 7.92 $ 29.44 $ 7.08
======== ======== ======== ========
</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-II, 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 $ 118,851 $ 839,374 $ 958,225
Distributions (64,534) (191,502) (256,036)
Net income 66,742 180,374 247,116
--------- --------- ---------
Balance at September 30, 2000 $ 121,059 $ 828,246 $ 949,305
========= ========= =========
</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-II, 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 $ 247,116 $ 66,722
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 33,084 48,589
Changes in assets and liabilities:
Accounts receivable (12,897) (39,706)
Accounts payable 7,890 9,881
--------- ---------
Net cash provided by operating activities 275,193 85,486
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (5,226) (243)
Proceeds from asset dispositions - 422
--------- ---------
Net cash provided (used in) by investing
activities (5,226) 179
--------- ---------
Cash flows used in financing activities:
Cash distributions to partners (256,036) (67,164)
--------- ---------
Net increase in cash 13,931 18,501
Cash at beginning of period 91,672 64,274
--------- ---------
Cash at end of period $ 105,603 $ 82,775
========= =========
</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-II, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(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 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 60% to $520,927 for the nine
months ended September 30, 2000 as compared to $325,353 for the same period in
1999. The increase in revenues resulted from higher average prices received,
7
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offset by a decrease in production. For the nine months ended September 30,
2000, 12,890 barrels of oil, 5,841 barrels of natural gas liquids ("NGLs") and
27,416 mcf of gas were sold, or 23,300 barrel of oil equivalents ("BOEs"). For
the nine months ended September 30, 1999, 13,331 barrels of oil, 7,556 barrels
of NGLs and 33,399 mcf of gas were sold, or 26,454 BOEs.
The average price received per barrel of oil increased $13.39, or 89%, from
$15.07 for the nine months ended September 30, 1999 to $28.46 for the same
period in 2000. The average price received per barrel of NGLs increased $5.48,
or 62%, from $8.80 during the nine months ended September 30, 1999 to $14.28 for
the same period in 2000. The average price received per mcf of gas increased 48%
from $1.74 for the nine months ended September 30, 1999 to $2.58 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 increased to $278,621 for the nine months ended
September 30, 2000 as compared to $261,107 for the same period in 1999, an
increase of $17,514, or 7%. This increase was due to increases in production
costs and general and administrative expenses ("G&A"), offset by a decline in
depletion.
Production costs were $227,999 for the nine months ended September 30, 2000 and
$199,280 for the same period in 1999 resulting in a $28,719 increase, or 14%.
This increase was primarily due to higher production taxes of $15,535 associated
with higher oil and gas prices and additional well maintenance costs of $11,386
incurred to stimulate well production.
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, 32% from $13,238 for the nine months ended September
30, 1999 to $17,538 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 $33,084 for the nine months ended September 30, 2000 compared to
$48,589 for the same period in 1999, a decrease of $15,505, or 32%. This
decrease was attributable to an increase in proved reserves as a result of
higher commodity prices and a decline in oil production of 441 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 27% to $186,321 for the three
months ended September 30, 2000 as compared to $146,263 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 September 30,
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2000, 4,262 barrels of oil, 1,865 barrels of NGLs and 8,918 mcf of gas were
sold, or 7,613 BOEs. For the three months ended September 30, 1999, 4,525
barrels of oil, 3,268 barrels of NGLs and 13,163 mcf of gas were sold, or 9,987
BOEs.
The average price received per barrel of oil increased $11.60, or 62%, from
$18.77 for the three months ended September 30, 1999 to $30.37 for the same
period in 2000. The average price received per barrel of NGLs increased $4.96,
or 46%, from $10.69 during the three months ended September 30, 1999 to $15.65
for the same period in 2000. The average price received per mcf of gas increased
55% to $3.10 during the three months ended September 30, 2000 from $2.00 for the
same period in 1999.
Costs and Expenses:
Total costs and expenses increased to $99,333 for the three months ended
September 30, 2000 as compared to $81,336 for the same period in 1999, an
increase of $17,997, or 22%. This increase was due to increases in production
costs and G&A, offset by a decline in depletion.
Production costs were $80,741 for the three months ended September 30, 2000 and
$62,023 for the same period in 1999 resulting in an $18,718 increase, or 30%.
The increase was primarily due to additional well maintenance costs of $11,269
incurred to stimulate well production and higher production taxes of $5,311
associated with higher oil and gas prices.
During this period, G&A increased, in aggregate, 1% from $6,670 for the three
months ended September 30, 1999 to $6,711 for the same period in 2000 primarily
due 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 $11,881 for the three months ended September 30, 2000 compared to
$12,643 for the same period in 1999, representing a decrease of $762, or 6%.
This decrease was attributable to an increase in proved reserves as a result of
higher commodity prices and a decline in oil production of 263 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 $189,707 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 $224,717,
offset by increases in production costs paid of $26,327 and G&A expenses paid of
$8,683.
Net Cash Provided by (Used in) Investing Activities
The Partnership's investing activities during the nine months ended September
30, 2000 and 1999 were related to upgrades of oil and gas equipment on various
oil and gas properties.
9
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Proceeds from asset dispositions of $422 were received during the nine months
ended September 30, 1999 primarily from equipment credits on one well.
Cash Used in Financing Activities
For the nine months ended September 30, 2000, cash distributions to the partners
were $256,036, of which $64,534 was distributed to the general partners and
$191,502 to the limited partners. For the same period ended September 30, 1999,
cash distributions to the partners were $67,164, of which $16,117 was
distributed to the general partners and $51,047 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-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: Pioneer Natural Resources USA, Inc.,
Managing General Partner
Dated: November 9, 2000 By: /s/ Rich Dealy
-----------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
11
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