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. 2-75530B
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
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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-II, 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
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
2
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PARKER & PARSLEY 82-II, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
<TABLE>
June 30, December 31,
2000 1999
----------- -----------
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash $ 85,656 $ 91,672
Accounts receivable - oil and gas sales 77,013 68,374
---------- ----------
Total current assets 162,669 160,046
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 8,298,762 8,297,224
Accumulated depletion (7,507,122) (7,485,919)
---------- ----------
Net oil and gas properties 791,640 811,305
---------- ----------
$ 954,309 $ 971,351
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 18,262 $ 13,126
Partners' capital:
General partners 116,516 118,851
Limited partners (6,126 interests) 819,531 839,374
---------- ----------
936,047 958,225
---------- ----------
$ 954,309 $ 971,351
========== ==========
</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-II, 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 $ 169,196 $ 108,222 $ 334,606 $ 179,090
Interest 1,676 711 2,939 1,383
-------- -------- -------- --------
170,872 108,933 337,545 180,473
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 72,440 75,482 147,258 137,257
General and administrative 5,668 3,741 10,827 6,568
Depletion 9,028 14,408 21,203 35,946
-------- -------- -------- --------
87,136 93,631 179,288 179,771
-------- -------- -------- --------
Net income $ 83,736 $ 15,302 $ 158,257 $ 702
======== ======== ======== ========
Allocation of net income (loss):
General partners $ 22,288 $ 6,110 $ 42,745 $ 5,866
======== ======== ======== ========
Limited partners $ 61,448 $ 9,192 $ 115,512 $ (5,164)
======== ======== ======== ========
Net income (loss) per limited
partnership interest $ 10.03 $ 1.50 $ 18.86 $ (.84)
======== ======== ======== ========
</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.
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PARKER & PARSLEY 82-II, 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 $ 118,851 $ 839,374 $ 958,225
Distributions (45,080) (135,355) (180,435)
Net income 42,745 115,512 158,257
--------- --------- ---------
Balance at June 30, 2000 $ 116,516 $ 819,531 $ 936,047
========= ========= =========
</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>
Six months ended
June 30,
------------------------
2000 1999
---------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 158,257 $ 702
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 21,203 35,946
Changes in assets and liabilities:
Accounts receivable (8,639) (21,631)
Accounts payable 5,136 6,877
--------- --------
Net cash provided by operating activities 175,957 21,894
--------- --------
Cash flows used in investing activities:
Additions to oil and gas properties (1,538) -
Proceeds from asset dispositions - 420
--------- --------
Net cash provided by (used in)
investing activities (1,538) 420
--------- --------
Cash flows used in financing activities:
Cash distributions to partners (180,435) (12,344)
--------- --------
Net increase (decrease) in cash (6,016) 9,970
Cash at beginning of period 91,672 64,274
--------- --------
Cash at end of period $ 85,656 $ 74,244
========= ========
</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
June 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 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. However, 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 $334,606 for the six
months ended June 30, 2000 as compared to $179,090 for the same period in 1999.
The increase in revenues resulted from higher average prices received, offset by
a decline in production. For the six months ended June 30, 2000, 8,628 barrels
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of oil, 3,976 barrels of natural gas liquids ("NGLs") and 18,498 mcf of gas were
sold, or 15,687 barrel of oil equivalents ("BOEs"). For the six months ended
June 30, 1999, 8,806 barrels of oil, 4,288 barrels of NGLs and 20,236 mcf of gas
were sold, or 16,467 BOEs.
The average price received per barrel of oil increased $14.35, or 109% from
$13.16 for the six months ended June 30, 1999 to $27.51 for the same period in
2000. The average price received per barrel of NGLs increased $6.27, or 85% from
$7.36 during the six months ended June 30, 1999 to $13.63 for the same period in
2000. The average price received per mcf of gas increased 49% from $1.56 during
the six months ended June 30, 1999 to $2.33 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 $179,288 for the six months ended June 30,
2000 as compared to $179,771 for the same period in 1999, a decrease of $483.
This decrease was due to a decline in depletion costs, offset by increases in
production costs and general and administrative expenses ("G&A").
Production costs were $147,258 for the six months ended June 30, 2000 and
$137,257 for the same period in 1999 resulting in a $10,001 increase, or 7%.
This increase was primarily the result of higher production taxes due to
increased oil and gas revenues.
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 $6,568 for the six months ended June 30, 1999
to $10,827 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 $21,203 for the six months ended June 30, 2000 compared to $35,946
for the same period in 1999, a decrease of $14,743, or 41%. This decrease was
attributable to an increase in proved reserves during the period ended June 30,
2000 due to higher commodity prices and a reduction in oil production of 178
barrels for the six months ended June 30, 2000 compared to the same period in
1999.
Three months ended June 30, 2000 compared with three months ended June 30, 1999
Revenues:
The Partnership's oil and gas revenues increased 56% to $169,196 for the three
months ended June 30, 2000, as compared to $108,222 for the same period in 1999.
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The increase in revenues resulted from higher average prices received, offset by
a decrease in production. For the three months ended June 30, 2000, 4,189
barrels of oil, 1,932 barrels of NGLs and 9,347 mcf of gas were sold, or 7,679
BOEs. For the three months ended June 30, 1999, 4,571 barrels of oil, 2,585
barrels of NGLs and 10,688 mcf of gas were sold, or 8,937 BOEs.
The average price received per barrel of oil increased $13.11, or 89%, from
$14.65 for the three months ended June 30, 1999 to $27.76 for the three months
ended June 30, 2000. The average price received per barrel of NGLs increased
$5.29, or 60%, from $8.83 during the three months ended June 30, 1999 to $14.12
for the three months ended June 30, 2000. The average price received per mcf of
gas increased 59% to $2.74 during the three months ended June 30, 2000 from
$1.72 during the same period in 1999.
Costs and Expenses:
Total costs and expenses decreased to $87,136 for the three months ended June
30, 2000 as compared to $93,631 for the same period in 1999, a decrease of
$6,495, or 7%. This decrease was due to declines in depletion and production
costs, offset by an increase in G&A.
Production costs were $72,440 for the three months ended June 30, 2000 and
$75,482 for the same period in 1999 resulting in a $3,042 decrease, or 4%. The
decrease was the result of less well maintenance costs, offset by higher
production taxes due to higher oil and gas prices.
During this period, G&A increased, in aggregate, 52% from $3,741 for the three
months ended June 30, 1999 to $5,668 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 $9,028 for the three months ended June 30, 2000 compared to
$14,408 for the same period in 1999, a decrease of $5,380, or 37%. This decrease
was attributable to an increase in proved reserves during the period ended June
30, 2000 as a result of higher commodity prices and a reduction in oil
production of 382 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 $154,063 during the six
months ended June 30, 2000 from the same period in 1999. This increase was due
to an increase in oil and gas sales receipts of $170,064, offset by increases in
operating costs paid of $9,069 and G&A expenses paid of $6,932.
Net Cash Provided by (Used in) Investing Activities
The Partnership's investing activities during the six months ended June 30, 2000
were related to upgrades of oil and gas equipment on active properties.
9
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Proceeds from asset dispositions of $420 were received during the six months
ended June 30, 1999 primarily from equipment credits on active properties.
Net Cash Used in Financing Activities
For the six months ended June 30, 2000, cash distributions to the partners were
$180,435, of which $45,080 was distributed to the general partners and $135,355
to the limited partners. For the same period ended June 30, 1999, cash
distributions to the partners were $12,344, of which $2,228 was distributed to
the general partners and $10,116 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: August 7, 2000 By: /s/ Rich Dealy
------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
11
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