<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
September 30, 1995 2-92702-03 (1982-1)
2-92702-04 (1982-2)
DYCO 1982 OIL AND GAS PROGRAMS
(TWO LIMITED PARTNERSHIPS)
(Exact Name of Registrant as specified in its charter)
41-1438430 (1982-1)
Minnesota 41-1438437 (1982-2)
(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
---- ----
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1995 1994
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 13,891 $ 16,790
Accrued oil and gas sales, including
$33,842 due from related parties
(Note 2) 36,647 14,871
-------- --------
Total current assets . . . . . . . $ 50,538 $ 31,661
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 213,428 256,428
DEFERRED CHARGE . . . . . . . . . . . . . 102,269 102,269
-------- --------
$366,235 $390,358
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 7,245 $ 7,137
-------- --------
Total current liabilities . . . . . $ 7,245 $ 7,137
ACCRUED LIABILITY . . . . . . . . . . . . 78,902 78,902
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
100 units . . . . . . . . . . . . . 2,801 3,043
Limited Partners, issued and outstanding,
10,000 units . . . . . . . . . . . . 277,287 301,276
-------- --------
Total Partners' capital . . . . . . $280,088 $304,319
-------- --------
$366,235 $390,358
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
-------- ---------
REVENUES:
Oil and gas sales, including
$54,290 and $80,621 of sales
to related parties (Note 2) . . . . $61,570 $145,294
Interest . . . . . . . . . . . . . . . 3 648
------- --------
$61,573 $145,942
------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $32,903 $ 25,454
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 13,911 27,020
General and administrative (Note 2) . 21,625 18,770
------- --------
$68,439 $ 71,244
------- --------
NET (LOSS) INCOME . . . . . . . . . . . . ($ 6,866) $ 74,698
======= ========
GENERAL PARTNER (1%) - net (loss) income ($ 68) $ 747
======= ========
LIMITED PARTNERS (99%) - net (loss) income ($ 6,798) $ 73,951
======= ========
NET (LOSS) INCOME PER UNIT . . . . . . . ($ 1) $ 8
======= ========
UNITS OUTSTANDING . . . . . . . . . . . . 10,100 10,100
======= ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ----------
REVENUES:
Oil and gas sales, including
$166,898 and $317,426 of sales
to related parties (Note 2) . . . . $195,676 $396,227
Interest . . . . . . . . . . . . . . . 83 3,178
-------- --------
$195,759 $399,405
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 94,062 $ 93,670
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 43,062 88,636
General and administrative (Note 2) . 82,866 69,312
-------- --------
$219,990 $251,618
-------- --------
NET (LOSS) INCOME . . . . . . . . . . . . ($ 24,231) $147,787
======== ========
GENERAL PARTNER (1%) - net (loss) income ($ 242) $ 1,478
======== ========
LIMITED PARTNERS (99%) - net (loss) income ($ 23,989) $146,309
======== ========
NET (LOSS) INCOME PER UNIT . . . . . . . ($ 2) $ 15
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 10,100 10,100
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income . . . . . . . . . . ($24,231) $147,787
Adjustments to reconcile net (loss)
income to net cash (used) provided by
operating activities:
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 43,062 88,636
Increase in accrued oil and gas sales ( 21,776) ( 18,741)
Increase in accounts payable . . . . 108 34
Decrease in related party payable . - ( 58,249)
Decrease in gas imbalance payable . - ( 74,559)
------- --------
Net cash (used) provided by operating
activities . . . . . . . . . . . ($ 2,837) $ 84,908
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . ($ 62) ($ 766)
Retirements of oil and gas properties - 10,289
------- --------
Net cash (used) provided by investing
activities . . . . . . . . . . . ($ 62) $ 9,523
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . $ - ($202,000)
------- --------
Net cash used by financing activities $ - ($202,000)
------- --------
NET DECREASE IN CASH AND CASH EQUIVALENTS ($ 2,899) ($107,569)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD . . . . . . . . . . . . . . . . 16,790 173,091
------- --------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD . . . . . . . . . . . . . . . . . $13,891 $ 65,522
======= ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1995 1994
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 67,391 $ 59,881
Accrued oil and gas sales, including
$54,484 and $93,816 due from
related parties (Note 2) . . . . . . 92,023 109,603
-------- --------
Total current assets . . . . . . . $159,414 $169,484
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 347,829 461,002
DEFERRED CHARGE . . . . . . . . . . . . . 35,910 35,910
-------- --------
$543,153 $666,396
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 28,015 $ 27,296
Gas imbalance payable . . . . . . . . 40,855 40,855
-------- --------
Total current liabilities . . . . . $ 68,870 $ 68,151
ACCRUED LIABILITY . . . . . . . . . . . . 60,316 60,316
CONTINGENCY (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
80 units . . . . . . . . . . . . . . 4,139 5,379
Limited Partners, issued and outstanding,
8,000 units . . . . . . . . . . . . 409,828 532,550
-------- --------
Total Partners' capital . . . . . . $413,967 $537,929
-------- --------
$543,153 $666,396
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
REVENUES:
Oil and gas sales, including
$68,403 and $128,807 of sales
to related parties (Note 2) . . . . $101,390 $145,039
Interest . . . . . . . . . . . . . . . 2,683 1,160
-------- --------
$104,073 $146,199
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 36,186 $ 55,386
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 30,632 22,355
General and administrative (Note 2) . 17,050 15,870
-------- --------
$ 83,868 $ 93,611
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 20,205 $ 52,588
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 202 $ 526
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 20,003 $ 52,062
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 3 $ 7
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 8,080 8,080
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
REVENUES:
Oil and gas sales, including
$331,304 and $470,328 of sales
to related parties (Note 2) . . . . $414,605 $561,876
Interest . . . . . . . . . . . . . . . 6,494 3,468
-------- --------
$421,099 $565,344
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $119,822 $153,400
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 116,420 150,365
General and administrative (Note 2) . 66,419 56,161
-------- --------
$302,661 $359,926
-------- --------
NET INCOME . . . . . . . . . . . . . . . $118,438 $205,418
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 1,184 $ 2,054
======== ========
LIMITED PARTNERS (99%) - net income . . . $117,254 $203,364
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 15 $ 25
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 8,080 8,080
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . $118,438 $205,418
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 116,420 150,365
Decrease in accrued oil and gas sales 17,580 13,832
Increase in accounts payable . . . . 719 21,475
Decrease in gas imbalance payable . - ( 2,203)
-------- --------
Net cash provided by operating
activities . . . . . . . . . . . $253,157 $388,887
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . ($ 3,247) $ -
Retirements of oil and gas properties - 11,968
-------- --------
Net cash (used) provided by investing
activities . . . . . . . . . . . ($ 3,247) $ 11,968
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . ($242,400) ($363,600)
-------- --------
Net cash used by financing
activities . . . . . . . . . . . ($242,400) ($363,600)
-------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS $ 7,510 $ 37,255
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD . . . . . . . . . . . . . . . . 59,881 135,828
-------- --------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD . . . . . . . . . . . . . . . . . $ 67,391 $173,083
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
CONDENSED NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 1995, statements of
operations for the three and nine months ended September 30, 1995
and 1994, and statements of cash flows for the nine months ended
September 30, 1995 and 1994 have been prepared by Dyco Petroleum
Corporation ("Dyco"), the General Partner of the Dyco Oil and Gas
Program 1982-1 and 1982-2 Limited Partnerships (individually, the
"1982-1 Program" or the "1982-2 Program", as the case may be, or,
collectively, the "Programs"), without audit. In the opinion of
management all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position at
September 30, 1995, results of operations for the three and nine
months ended September 30, 1995 and 1994 and changes in cash flows
for the nine months ended September 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
Programs' Annual Report on Form 10-K for the year ended December
31, 1994. The results of operations for the period ended September
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
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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.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of each 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 three months ended
September 30, 1995 and 1994, the 1982-1 Program incurred such
expenses totaling $21,625 and $18,770, respectively, of which
$18,615 and $18,615 were paid to Dyco. During the nine months
ended September 30, 1995 and 1994 the 1982-1 Program incurred such
expenses totaling $82,866 and $69,312, respectively, of which
$55,845 and $55,845 were paid to Dyco. During the three months
ended September 30, 1995 and 1994, the 1982-2 Program incurred such
expenses totaling $17,050 and $15,870, respectively, of which
$14,610 and $14,610 were paid to Dyco. During the nine months
ended September 30, 1995 and 1994 the 1982-2 Program incurred such
expenses totaling $66,419 and $56,161, respectively, of which
$43,830 and $43,830 were paid to Dyco.
Affiliates of the Programs are the operators of certain of the
Programs' properties and their policy is to bill the Programs for
all customary charges and cost reimbursements associated with their
activities, together with any compressor rentals, consulting, or
other services provided.
The Programs sell 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 three
months ended September 30, 1995 and 1994 these sales for the 1982-1
Program totaled $54,290 and $80,621, respectively. During the nine
months ended September 30, 1995 and 1994 these sales for the 1982-1
Program totaled $166,898 and $317,426, respectively. At September
30, 1995 accrued oil and gas sales for the 1982-1 Program included
$33,842 due from Premier. During the three months ended September
30, 1995 and 1994 these sales for the 1982-2 Program totaled
$68,403 and $128,807, respectively. During the nine months ended
September 30, 1995 and 1994 these sales for the 1982-2 Program
totaled $331,304 and $470,328, respectively. At September 30, 1995
accrued oil and gas sales for the 1982-2 Program included $54,484
due from Premier.
3. CONTINGENCY
-----------
On November 12, 1992, two individuals filed a lawsuit against Dyco
and others in which the plaintiffs alleged damages to their land as
a result of remediation operations conducted on one of the 1982-2
Program's wells on an adjoining property. The lawsuit alleged
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claims based on negligence, private nuisance, public nuisance,
trespass, unjust enrichment, constructive fraud, and permanent
injunctive relief, all in amounts to be determined at trial. Dyco
has filed an answer in the matter in which it asserted a defense of
failure to state a claim. A trial was conducted in the matter on
February 22, 1994 in which the jury entered a verdict in favor of
the plaintiffs in the amount of approximately $5.5 million,
consisting of approximately $2.7 million in actual damages and
approximately $2.7 million in punitive damages. The 1982-2
Program's share of such verdict is approximately $43,000 in actual
damages and approximately $8,800 in punitive damages. Dyco is
presently appealing the matter. Included in these financial
statements as of September 30, 1995 is an accrual by the General
Partner of $20,000 representing the 1982-2 Program's share of
estimated ultimate damages resulting from the above mentioned
contingency.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Net proceeds from the Programs' 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 Programs' reserves which would result in a
positive economic impact. Over the last several years, the
domestic energy industry and the Programs have contended with
volatile, but generally low, oil and gas prices. Over the past
few years, the oil and gas market appears to have moved from
periods of relative stability in supply and demand to excess
supply or weakened demand. These trends have led to the
volatility in pricing and demand noted over the past years.
The Programs' 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
Programs have no bank debt commitments. Cash for operational
purposes will be provided by current oil and gas production.
RESULTS OF OPERATIONS
- ----------------------
1982-1 PROGRAM
THREE MONTHS ENDED SEPTEMBER 30, 1995 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1994.
Three months ended September 30,
--------------------------------
1995 1994
---- ----
Oil and gas sales $61,570 $145,294
Oil and gas production
expenses $32,903 $ 25,454
Barrels produced 540 644
Mcf produced 44,009 71,513
Average price/Bbl $ 16.32 $ 15.15
Average price/Mcf $ 1.20 $ 1.90
As shown in the above table, oil and natural gas sales decreased
57.6% for the three months ended September 30, 1995 as compared
to the three months ended September 30, 1994. This decrease was
due to the decreases in the volumes of oil and natural gas sold
and a decrease in the average price of natural gas sold,
partially offset by the increase in the average price of oil sold
for the three months ended September 30, 1995 as compared to the
three months ended September 30, 1994. Volumes of oil and
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natural gas sold decreased 104 barrels and 27,504 Mcf,
respectively, for the three months ended September 30, 1995 as
compared to the three months ended September 30, 1994. The
decrease in the volumes of natural gas sold resulted primarily
from gas balancing adjustments on several wells during the three
months ended September 30, 1994. Average natural gas prices
decreased to $1.20 per Mcf for the three months ended September
30, 1995 from $1.90 per Mcf for the three months ended September
30, 1994, while average oil prices increased to $16.32 per barrel
for the three months ended September 30, 1995 from $15.15 per
barrel for the three months ended September 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $7,449 for the three
months ended September 30, 1995 as compared to the three months
ended September 30, 1994. The increase resulted primarily from
workover charges on one of the 1982-1 Program's wells during the
three months ended September 30, 1995. As a percentage of oil
and gas sales, these expenses increased to 53.4% for the three
months ended September 30, 1995 as compared to 17.5% for the
three months ended September 30, 1994. This increase was
primarily a result of the dollar increase in oil and gas
production expenses as discussed above and the decrease in the
average price of natural gas sold during the three months ended
September 30, 1995 as compared to the three months ended
September 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased $13,109 for the three months ended September
30, 1995 as compared to the three months ended September 30,
1994. This decrease was primarily the result of the decrease in
the volumes of oil and natural gas sold during the three months
ended September 30, 1995 as compared to the three months ended
September 30, 1994 and an increase in the estimate of the 1982-1
Program's remaining natural gas reserves. As a percentage of oil
and gas sales, this expense increased to 22.6% for the three
months ended September 30, 1995 from 18.6% for the three months
ended September 30, 1994. This increase resulted primarily from
the decrease in the average price of natural gas sold during the
three months ended September 30, 1995 as compared to the three
months ended September 30, 1994.
General and administrative expenses increased $2,855 for the
three months ended September 30, 1995 as compared to the three
months ended September 30, 1994. This increase resulted
primarily from an increase in the 1982-1 Program's professional
fees during the three months ended September 30, 1995 as compared
to the three months ended September 30, 1994. As a percentage of
oil and gas sales, these expenses increased to 35.1% for the
three months ended September 30, 1995 from 12.9% for the three
months ended September 30, 1994. This percentage increase was
primarily a result of the dollar increase in general and
administrative expenses as discussed above and the decreases in
the volumes and average price of natural gas sold during the
three months ended September 30, 1995 as compared to the three
months ended September 30, 1994.
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NINE MONTHS ENDED SEPTEMBER 30, 1995 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1994.
Nine months ended September 30,
-------------------------------
1995 1994
---- ----
Oil and gas sales $195,676 $396,227
Oil and gas production
expenses $ 94,062 $ 93,670
Barrels produced 1,728 1,999
Mcf produced 131,416 200,945
Average price/Bbl $ 16.99 $ 14.62
Average price/Mcf $ 1.27 $ 1.83
As shown in the table, oil and natural gas sales decreased 50.6%
for the nine months ended September 30, 1995 as compared to the
nine months ended September 30, 1994. This decrease was
primarily due to a decrease in the average price of natural gas
sold and decreases in the volumes of oil and natural gas sold for
the nine months ended September 30, 1995 as compared to the nine
months ended September 30, 1994. Volumes of oil and natural gas
sold decreased 271 barrels and 69,529 Mcf, respectively, for the
nine months ended September 30, 1995 as compared to the nine
months ended September 30, 1994. The decrease in the volumes of
natural gas sold was primarily due to gas balancing adjustments
on several wells during the nine months ended September 30, 1994
and volume adjustments during the nine months ended September 30,
1994 made by a third party operator on one well who used an
incorrect ownership interest in distributing revenues to the
1982-1 Program after such well had reached payout. Average
natural gas prices decreased to $1.27 per Mcf for the nine months
ended September 30, 1995 from $1.83 per Mcf for the nine months
ended September 30, 1994, while average oil prices increased to
$16.99 per barrel for the nine months ended September 30, 1995
from an average of $14.62 per barrel for the nine months ended
September 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) remained relatively constant for
the nine months ended September 30, 1995 as compared to the nine
months ended September 30, 1994. As a percentage of oil and gas
sales, these expenses increased to 48.1% for the nine months
ended September 30, 1995 compared to 23.6% for the nine months
ended September 30, 1994. This increase was primarily a result
of the decrease in the average price of natural gas sold during
the nine months ended September 30, 1995 as compared to the nine
months ended September 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased $45,574 for the nine months ended September
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30, 1995 as compared to the nine months ended September 30, 1994.
This decrease was primarily a result of the decrease in the
volumes of oil and natural gas sold during the nine months ended
September 30, 1995 as compared to the nine months ended September
30, 1994 and an increase in the estimate of the 1982-1 Program's
remaining natural gas reserves. As a percentage of oil and gas
sales, this expense remained relatively constant at 22.0% for the
nine months ended September 30, 1995 compared to 22.4% for the
nine months ended September 30, 1994.
General and administrative expenses increased by $13,554 for the
nine months ended September 30, 1995 as compared to the nine
months ended September 30, 1994. This increase resulted
primarily from an increase in the 1982-1 Program's professional
fees during the nine months ended September 30, 1995 as compared
to the nine months ended September 30, 1994. As a percentage of
oil and gas sales, these expenses increased to 42.3% for the nine
months ended September 30, 1995 from 17.5% for the nine months
ended September 30, 1994. This percentage increase was primarily
a result of the dollar increase in general and administrative
expenses as discussed above, and the decreases in the volumes and
average price of natural gas sold during the nine months ended
September 30, 1995 as compared to the nine months ended September
30, 1994.
1982-2 PROGRAM
THREE MONTHS ENDED SEPTEMBER 30, 1995 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1994.
Three months ended September 30,
--------------------------------------
1995 1994
---- ----
Oil and gas sales $101,390 $145,039
Oil and gas production
expenses $ 36,186 $ 55,386
Barrels produced 77 307
Mcf produced 93,164 98,561
Average price/Bbl $ 16.40 $ 14.39
Average price/Mcf $ 1.07 $ 1.43
As shown in the table above, oil and natural gas sales decreased
30.1% for the three months ended September 30, 1995 as compared
to the three months ended September 30, 1994. This decrease was
primarily due to decreases in the volumes of oil and natural gas
sold and a decrease in the average price of natural gas sold
during the three months ended September 30, 1995 as compared to
the three months ended September 30, 1994. Volumes of oil and
natural gas sold decreased by 230 barrels and 5,397 Mcf,
respectively, for the three months ended September 30, 1995 as
compared to the three months ended September 30, 1994. Average
natural gas prices decreased to $1.07 per Mcf for the three
months ended September 30, 1995 from $1.43 per Mcf for the three
months ended September 30, 1994, while the average price of oil
-16-
<PAGE>
<PAGE>
sold increased to $16.40 per barrel for the three months ended
September 30, 1995 from $14.39 per barrel for the three months
ended September 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $19,200 for the three
months ended September 30, 1995 as compared to the three months
ended September 30, 1994. The decrease resulted primarily from
workovers on several wells to improve the recovery of reserves
and costs associated with plugging an abandoned well during the
three months ended September 30, 1994. As a percentage of oil
and gas sales, these expenses decreased to 35.7% for the three
months ended September 30, 1995 from 38.2% for the three months
ended September 30, 1994. The percentage decrease was primarily
a result of the dollar decrease in oil and gas production
expenses as discussed above, partially offset by the decrease in
the average price of natural gas sold during the three months
ended September 30, 1995 as compared to the three months ended
September 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties increased $8,277 for the three months ended September
30, 1995 as compared to the three months ended September 30,
1994. This increase was primarily due to a decrease in the
valuation of the 1982-2 Program's remaining natural gas reserves
used in the calculation of depreciation, depletion, and
amortization for the three months ended September 30, 1995 as
compared to the three months ended September 30, 1994. As a
percentage of oil and gas sales, this expense increased to 30.2%
for the three months ended September 30, 1995 from 15.4% for the
three months ended September 30, 1994. This percentage increase
resulted primarily from the dollar increase in depreciation,
depletion, and amortization expense as discussed above and the
decrease in the average price of natural gas sold during the
three months ended September 30, 1995 as compared to the three
months ended September 30, 1994.
General and administrative expenses increased $1,180 for the
three months ended September 30, 1995 as compared to the three
months ended September 30, 1994. This increase resulted
primarily from an increase in the 1982-2 Program's professional
fees during the three months ended September 30, 1995 as compared
to the three months ended September 30, 1994. As a percentage of
oil and gas sales, these expenses increased to 16.8% for the
three months ended September 30, 1995 from 10.9% for the three
months ended September 30, 1994. This increase was primarily the
result of the decrease in the volumes and average price of
natural gas sold during the three months ended September 30, 1995
as compared to the three months ended September 30, 1994.
-17-
<PAGE>
<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 1995 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1994.
Nine months ended September 30,
-------------------------------
1995 1994
---- ----
Oil and gas sales $414,605 $561,876
Oil and gas production
expenses $119,822 $153,400
Barrels produced 509 1,665
Mcf produced 331,368 333,262
Average price/Bbl $ 12.42 $ 10.92
Average price/Mcf $ 1.23 $ 1.63
As shown in the table, oil and natural gas sales decreased 26.2%
for the nine months ended September 30, 1995 as compared to the
nine months ended September 30, 1994. This decrease was
primarily due to a decrease in the average price of natural gas
sold and decreases in the volumes of oil and natural gas sold
during the nine months ended September 30, 1995 as compared to
the nine months ended September 30, 1994. Volumes of oil and
natural gas sold decreased 1,156 barrels and 1,894 Mcf,
respectively, for the nine months ended September 30, 1995 as
compared to the nine months ended September 30, 1994. The
decrease in the volumes of oil sold resulted from positive prior
period volume adjustments from a purchaser on one of the 1982-2
Program's wells during the nine months ended September 30, 1994.
Average natural gas prices decreased to $1.23 per Mcf for the
nine months ended September 30, 1995 from an average of $1.63 per
Mcf for the nine months ended September 30, 1994, while the
average price of oil sold increased to $12.42 per barrel for the
nine months ended September 30, 1995 from $10.92 per barrel for
the nine months ended September 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $33,578 for the nine
months ended September 30, 1995 as compared to the nine months
ended September 30, 1994. This decrease resulted primarily from
(i) the accrual for certain litigation costs in 1994, (ii)
workovers on several wells to improve the recovery of reserves
during the nine months ended September 30, 1994 and (iii) costs
associated with plugging an abandoned well during the nine months
ended September 30, 1994. As a percentage of oil and gas sales,
these expenses remained relatively constant at 28.9% for the nine
months ended September 30, 1995 compared to 27.3% for the nine
months ended September 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased $33,945 for the nine months ended September
30, 1995 as compared to the nine months ended September 30, 1994.
This decrease was primarily the result of an upward revision in
the estimate of remaining oil and natural gas reserves for the
nine months ended September 30, 1995 as compared to the nine
months ended September 30, 1994. As a percentage of oil and gas
sales, this expense remained relatively constant at 28.1% for the
nine months ended September 30, 1995 compared to 26.8% for the
nine months ended September 30, 1994.
-18-
<PAGE>
<PAGE>
General and administrative expenses increased $10,258 for the
nine months ended September 30, 1995 as compared to the nine
months ended September 30, 1994. This increase resulted from an
increase in the 1982-2 Program's professional fees during the
nine months ended September 30, 1995 as compared to the nine
months ended September 30, 1994. As a percentage of oil and gas
sales, these expenses increased to 16.0% for the nine months
ended September 30, 1995 from 10.0% for the nine months ended
September 30, 1994. This increase was primarily the result of
the decrease in the average price of natural gas sold during the
nine months ended September 30, 1995 as compared to the nine
months ended September 30, 1994.
-19-
<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
-20-
<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 1982-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
(Registrant)
By: DYCO PETROLEUM CORPORATION
General Partner
Date: November 13, 1995 By: /s/Dennis R. Neill
--------------------------
(Signature)
Dennis R. Neill
Senior Vice President
Date: November 13, 1995 By: /s/Patrick M. Hall
------------------------------
(Signature)
Patrick M. Hall
Senior Vice President - Controller
Principal Accounting Officer
-21-
<PAGE>
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<NAME> DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 13,891
<SECURITIES> 0
<RECEIVABLES> 36,647
<ALLOWANCES> 0
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<CURRENT-ASSETS> 50,538
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 366,235
<CURRENT-LIABILITIES> 7,245
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 280,088
<TOTAL-LIABILITY-AND-EQUITY> 366,235
<SALES> 195,676
<TOTAL-REVENUES> 195,759
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<TOTAL-COSTS> 219,990
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<TABLE> <S> <C>
<ARTICLE> 5
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<NAME> DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 67,391
<SECURITIES> 0
<RECEIVABLES> 92,023
<ALLOWANCES> 0
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<CURRENT-ASSETS> 159,414
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<OTHER-SE> 413,967
<TOTAL-LIABILITY-AND-EQUITY> 543,153
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<TOTAL-REVENUES> 421,099
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