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, 1998 0-12261 (1982-1)
0-12262 (1982-2)
DYCO 1982 OIL AND GAS PROGRAM
(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 Number)
organization)
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
------ ------
1
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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,
1998 1997
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $146,198 $120,049
Accrued oil and gas sales 22,273 49,405
-------- --------
Total current assets $168,471 $169,454
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 65,253 90,100
DEFERRED CHARGE 59,627 59,627
-------- --------
$293,351 $319,181
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 6,376 $ 12,181
-------- --------
Total current liabilities $ 6,376 $ 12,181
ACCRUED LIABILITY $ 53,234 $ 53,234
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 100 units $ 2,337 $ 2,537
Limited Partners, issued and
outstanding, 10,000 units 231,404 251,229
-------- --------
Total Partners' capital $233,741 $253,766
-------- --------
$293,351 $319,181
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
2
<PAGE>
DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- --------
REVENUES:
Oil and gas sales $66,187 $69,833
Interest 1,786 2,397
------- -------
$67,973 $72,230
COSTS AND EXPENSES:
Oil and gas production $30,420 $24,937
Depreciation, depletion, and
amortization of oil and gas
properties 12,542 5,190
General and administrative
(Note 2) 21,873 23,951
------- -------
$64,835 $54,078
------- -------
NET INCOME $ 3,138 $18,152
======= =======
GENERAL PARTNER (1%) - net
income $ 32 $ 182
======= =======
LIMITED PARTNERS (99%) - net
income $ 3,106 $17,970
======= =======
NET INCOME PER UNIT $ .31 $ 1.80
======= =======
UNITS OUTSTANDING 10,100 10,100
======= =======
The accompanying condensed notes are an integral part of
these financial statements.
3
<PAGE>
DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- --------
REVENUES:
Oil and gas sales $154,056 $246,913
Interest 4,778 5,919
-------- --------
$158,834 $252,832
COSTS AND EXPENSES:
Oil and gas production $ 74,157 $ 76,330
Depreciation, depletion, and
amortization of oil and gas
properties 24,588 24,573
General and administrative
(Note 2) 80,114 88,555
-------- --------
$178,859 $189,458
-------- --------
NET INCOME (LOSS) ($ 20,025) $ 63,374
======== ========
GENERAL PARTNER (1%) - net
income (loss) ($ 200) $ 634
======== ========
LIMITED PARTNERS (99%) - net
income (loss) ($ 19,825) $ 62,740
======== ========
NET INCOME (LOSS) PER UNIT ($ 1.98) $ 6.27
======== ========
UNITS OUTSTANDING 10,100 10,100
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
4
<PAGE>
DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 20,025) $ 63,374
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 24,588 24,573
Decrease in accrued oil and
gas sales 27,132 14,602
Decrease in accounts payable ( 5,805) ( 628)
-------- --------
Net cash provided by operating
activities $ 25,890 $101,921
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil
and gas properties $ 259 $ 554
-------- --------
Net cash provided by investing
activities $ 259 $ 554
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions $ - ($202,000)
-------- --------
Net cash used by financing
activities $ - ($202,000)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 26,149 ($ 99,525)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 120,049 135,676
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $146,198 $ 36,151
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
5
<PAGE>
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1998 1997
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 63,829 $234,351
Accrued oil and gas sales 45,054 110,673
-------- --------
Total current assets $108,883 $345,024
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 134,391 182,488
DEFERRED CHARGE 17,727 17,727
-------- --------
$261,001 $545,239
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 6,239 $ 8,568
Gas imbalance payable 5,322 5,322
-------- --------
Total current liabilities $ 11,561 $ 13,890
ACCRUED LIABILITY $ 82,919 $ 82,919
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 80 units $ 1,665 $ 4,484
Limited Partners, issued and
outstanding, 8,000 units 164,856 443,946
-------- --------
Total Partners' capital $166,521 $448,430
-------- --------
$261,001 $545,239
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
6
<PAGE>
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- --------
REVENUES:
Oil and gas sales $ 81,205 $153,808
Interest 2,371 2,994
-------- --------
$ 83,576 $156,802
COSTS AND EXPENSES:
Oil and gas production $ 22,814 $ 36,826
Depreciation, depletion, and
amortization of oil and gas
properties 16,520 15,212
General and administrative
(Note 2) 17,216 18,878
-------- --------
$ 56,550 $ 70,916
-------- --------
NET INCOME $ 27,026 $ 85,886
======== ========
GENERAL PARTNER (1%) - net income $ 270 $ 859
======== ========
LIMITED PARTNERS (99%) - net income $ 26,756 $ 85,027
======== ========
NET INCOME PER UNIT $ 3.34 $ 10.63
======== ========
UNITS OUTSTANDING 8,080 8,080
======= ========
The accompanying condensed notes are an integral part of
these financial statements.
7
<PAGE>
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- --------
REVENUES:
Oil and gas sales $276,145 $496,237
Interest 7,776 6,982
Gain on sale of oil and
gas properties 60,067 -
-------- --------
$343,988 $503,219
COSTS AND EXPENSES:
Oil and gas production $ 78,532 $ 97,247
Depreciation, depletion, and
amortization of oil and gas
properties 39,737 63,635
General and administrative
(Note 2) 63,228 70,067
-------- --------
$181,497 $230,949
-------- --------
NET INCOME $162,491 $272,270
======== ========
GENERAL PARTNER (1%) - net income $ 1,625 $ 2,723
======== ========
LIMITED PARTNERS (99%) - net income $160,866 $269,547
======== ========
NET INCOME PER UNIT $ 20.11 $ 33.70
======== ========
UNITS OUTSTANDING 8,080 8,080
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
8
<PAGE>
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $162,491 $272,270
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 39,737 63,635
Gain on sale of oil and gas
properties ( 60,067) -
Decrease in accrued oil and
gas sales 65,619 55,952
Decrease in accounts payable ( 2,329) ( 2,750)
-------- --------
Net cash provided by operating
activities $205,451 $389,107
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 68,427 $ 1,686
-------- --------
Net cash provided by investing
activities $ 68,427 $ 1,686
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($444,400) ($484,800)
-------- --------
Net cash used by financing
activities ($444,400) ($484,800)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($170,522) ($ 94,007)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 234,351 208,342
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 63,829 $114,335
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
9
<PAGE>
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, 1998
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheet as of September 30, 1998, statements of operations for
the three and nine months ended September 30, 1998 and 1997, and
statements of cash flows for the nine months ended September 30, 1998 and
1997 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, 1998, results of operations for the three and nine months
ended September 30, 1998 and 1997, and changes in cash flows for the nine
months ended September 30, 1998 and 1997 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, 1997. The results of operations for the period
ended September 30, 1998 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. The Programs' calculation of depreciation, depletion, and
amortization includes estimated future expenditures to be incurred in
developing proved reserves and estimated dismantlement and abandonment
costs, net of estimated salvage values. In the event the unamortized cost
of oil and gas properties being amortized exceeds the full cost
10
<PAGE>
ceiling (as defined by the Securities and Exchange Commission), the excess
is charged to expense in the period during which such excess occurs. 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. During the three months ended March 31, 1998,
the 1982-2 Program sold one property that significantly altered the
capitalized cost/proved reserves relationship. This well represented
approximately 1.2% of total reserves and was sold for $62,207.Accordingly,
capitalized costs were reduced by 1.2% with the remainder recorded as Gain
on Sale of Oil and Gas Properties.
The provision for depreciation, depletion, and amortization of oil and gas
properties is calculated by dividing the oil and gas sales dollars during
the period 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.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of each 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 three months ended September 30, 1998
and 1997 the 1982-1 Program incurred such expenses totaling $21,873 and
$23,951, respectively, of which $18,615 was paid each period to Dyco and
its affiliates. During the nine months ended September 30, 1998 and 1997
the 1982-1 Program incurred such expenses totaling $80,114 and $88,555,
respectively, of which $55,845 was paid each period to Dyco and its
affiliates. During the three months ended September 30, 1998 and 1997 the
1982-2 Program incurred such expenses totaling $17,216 and $18,878,
respectively, of which $14,610 was paid each period to Dyco and its
affiliates. During the nine months ended September 30, 1998 and 1997 the
1982-2 Program incurred such expenses totaling $63,228 and $70,067,
respectively, of which $43,830 was paid each period to Dyco and its
affiliates.
Affiliates of the Program operate certain of the Programs' properties.
Their policy is to bill the Programs for all customary charges and cost
reimbursements associated with these activities.
11
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
- -----------------------------------------------
This Quarterly Report contains certain forward-looking statements. The
words "anticipate", "believe", "expect", "plan", "intend", "estimate",
"project", "could", "may" and similar expressions are intended to identify
forward-looking statements. Such statements reflect management's current
views with respect to future events and financial performance. This
Quarterly Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions are
management's efforts to accurately reflect the condition and operation of
the Programs.
Use of forward-looking statements and estimates and assumptions involve
risks and uncertainties which include, but are not limited to, the
volatility of oil and gas prices, the uncertainty of reserve information,
the operating risk associated with oil and gas properties (including the
risk of personal injury, death, property damage, damage to the well or
producing reservoir, environmental contamination, and other operating
risks), the prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the general
economic climate, the supply and price of foreign imports of oil and gas,
the level of consumer product demand, and the price and availability of
alternative fuels. Should one or more of these risks or uncertainties
occur or should estimates or underlying assumptions prove incorrect,
actual conditions or results may vary materially and adversely from those
stated, anticipated, believed, estimated, and otherwise indicated.
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.
The Programs' available capital from subscriptions has been spent on oil
and gas drilling activities. There should be no further material capital
resource commitments in the future. The Programs have no debt commitments.
Cash for operational purposes will be provided by current oil and gas
production.
12
<PAGE>
The 1982-2 Program's Statement of Cash Flows for the nine months ended
September 30, 1998 includes proceeds from the sale of oil and gas
properties during the first quarter of 1998. These proceeds were included
in the 1982-2 Program's cash distributions paid in June 1998. It is
possible that the 1982-2 Program's repurchase values and future cash
distributions could decline as a result of the disposition of these
properties. On the other hand, the General Partner believes there will be
beneficial operating efficiencies related to the 1982-2 Program's
remaining properties. This is primarily due to the fact that the
properties sold generally bore a higher ratio of operating expenses as
compared to reserves than the 1982-2 Program's remaining properties.
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction with the
analysis of results of operations provided below. The most important
variable affecting the Programs' revenues is the prices received for the
sale of oil and gas. Predicting future prices is very difficult.
Substantially all of the Programs' gas reserves are being sold on the
"spot market". Prices on the spot market are subject to wide seasonal and
regional pricing fluctuations due to the highly competitive nature of the
spot market. Such spot market sales are generally short-term in nature and
are dependent upon the obtaining of transportation services provided by
pipelines. In addition, crude oil prices are at or near their lowest level
in the past decade due primarily to the global surplus of crude oil.
Management is unable to predict whether future oil and gas prices will (i)
stabilize, (ii) increase, or (iii) decrease.
13
<PAGE>
1982-1 PROGRAM
THREE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997.
Three Months Ended September 30,
--------------------------------
1998 1997
-------- -------
Oil and gas sales $ 66,187 $69,833
Oil and gas production expenses $ 30,420 $24,937
Barrels produced 154 494
Mcf produced 39,638 28,953
Average price/Bbl $ 12.34 $ 18.08
Average price/Mcf $ 1.62 $ 2.10
As shown in the table above, total oil and gas sales decreased $3,646
(5.2%) for the three months ended September 30, 1998 as compared to the
three months ended September 30, 1997. Of this decrease, approximately
$1,000 and $19,000, respectively, were related to decreases in the average
prices of oil and gas sold and approximately $6,000 was related to a
decrease in the volumes of oil sold, which decreases were partially offset
by an increase of approximately $22,000 related to an increase in the
volumes of gas sold. Volumes of oil sold decreased 340 barrels, while
volumes of gas sold increased 10,685 Mcf for the three months ended
September 30, 1998 as compared to the three months ended September 30,
1997. The decrease in volumes of oil sold resulted primarily from the sale
of one well during 1998. The increase in volumes of gas sold resulted
primarily from a purchaser's positive prior period volume adjustment on
one well during the three months ended September 30, 1998. Average oil and
gas prices decreased to $12.34 per barrel and $1.62 per Mcf, respectively,
for the three months ended September 30, 1998 from $18.08 per barrel and
$2.10 per Mcf, respectively, for the three months ended September 30,
1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $5,483 (22.0%) for the three months ended
September 30, 1998 as compared to the three months ended September 30,
1997. This increase was primarily due to workover expenses incurred on one
well during the three months ended September 30, 1998. As a percentage of
oil and gas sales, these expenses increased to 46.0% for the three months
ended September 30, 1998 from 35.7% for the three months ended September
30, 1997. This percentage increase was primarily due to the dollar
increase in oil and gas production expenses.
14
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
increased $7,352 (141.7%) for the three months ended September 30, 1998 as
compared to the three months ended September 30, 1997. This increase
resulted primarily from the decrease in oil and gas prices used in the
valuation of reserves at September 30, 1998 as compared to September 30,
1997. As a percentage of oil and gas sales, this expense increased to
18.9% for the three months ended September 30, 1998 from 7.4% for the
three months ended September 30, 1997. This percentage increase was
primarily due to the dollar increase in depreciation, depletion, and
amortization.
General and administrative expenses decreased $2,078 (8.7%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
decreased to 33.0% for the three months ended September 30, 1998 from
34.3% for the three months ended September 30, 1997.
NINE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
Nine Months Ended September 30,
-------------------------------
1998 1997
-------- --------
Oil and gas sales $154,056 $246,913
Oil and gas production expenses $ 74,157 $ 76,330
Barrels produced 497 1,482
Mcf produced 80,846 97,680
Average price/Bbl $ 13.31 $ 19.85
Average price/Mcf $ 1.82 $ 2.23
As shown in the table above, total oil and gas sales decreased $92,857
(37.6%) for the nine months ended September 30, 1998 as compared to the
nine months ended September 30, 1997. Of this decrease, approximately
$20,000 and $37,000, respectively, were related to decreases in the
volumes of oil and gas sold and approximately $33,000 was related to a
decrease in the average price of gas sold. Volumes of oil and gas sold
decreased 985 barrels and 16,834 Mcf, respectively, for the nine months
ended September 30, 1998 as compared to the nine months ended September
30, 1997. The decrease in volumes of oil sold resulted primarily from the
sale of one well in 1998. The decrease in volumes of gas sold resulted
primarily from a purchaser's negative prior period volume adjustment on
one well during the nine months ended September 30, 1998. Average oil and
gas prices decreased to $13.31 per barrel and $1.82 per Mcf, respectively,
for the nine months ended September 30, 1998 from $19.85 per barrel and
$2.23 per Mcf, respectively, for the nine months ended September 30, 1997.
15
<PAGE>
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $2,173 (2.8%) for the nine months ended
September 30, 1998 as compared to the nine months ended September 30,
1997. This decrease resulted primarily from (i) the decrease in volumes of
oil and gas sold and (ii) a decrease in production taxes associated with
the decrease in oil and gas sales, which decreases were partially offset
by workover expenses incurred on two wells during the nine months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
increased to 48.1% for the nine months ended September 30, 1998 from 30.9%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold
during the nine months ended September 30, 1998 as compared to the nine
months ended September 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
increased $15 (0.1%) for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997. As a percentage of
oil and gas sales, this expense increased to 16.0% for the nine months
ended September 30, 1998 from 10.0% for the nine months ended September
30, 1997. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold for the nine months ended September
30, 1998 as compared to the nine months ended September 30, 1997.
General and administrative expenses decreased $8,441 (9.5%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
increased to 52.0% for the nine months ended September 30, 1998 from 35.9%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decrease in oil and gas sales.
16
<PAGE>
1982-2 PROGRAM
THREE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997.
Three Months Ended September 30,
--------------------------------
1998 1997
------- --------
Oil and gas sales $81,205 $153,808
Oil and gas production expenses $22,814 $ 36,826
Barrels produced 8 6
Mcf produced 47,398 70,763
Average price/Bbl $ 12.13 $ 17.17
Average price/Mcf $ 1.71 $ 2.17
As shown in the table above, total oil and gas sales decreased $72,603
(47.2%) for the three months ended September 30, 1998 as compared to the
three months ended September 30, 1997. Of this decrease, approximately
$51,000 was related to a decrease in the volumes of gas sold and
approximately $22,000 was related to a decrease in the average price of
gas sold. Volumes of oil sold increased 2 barrels, while volumes of gas
sold decreased 23,365 Mcf for the three months ended September 30, 1998 as
compared to the three months ended September 30, 1997. The decrease in
volumes of gas sold resulted primarily from (i) the normal decline in
production due to diminishing reserves and (ii) the sale of one well
during 1998. Average oil and gas prices decreased to $12.13 per barrel and
$1.71 per Mcf, respectively, for the three months ended September 30, 1998
from $17.17 per barrel and $2.17 per Mcf, respectively, for the three
months ended September 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $14,012 (38.0%) for the three months ended
September 30, 1998 as compared to the three months ended September 30,
1997. This decrease resulted primarily from (i) the decrease in volumes of
gas sold and (ii) a decrease in production taxes associated with the
decrease in gas sales. As a percentage of oil and gas sales, these
expenses increased to 28.1% for the three months ended September 30, 1998
from 23.9% for the three months ended September 30, 1997. This percentage
increase was primarily due to the decrease in the average price of gas
sold during the three months ended September 30, 1998 as compared to the
three months ended September 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
increased $1,308 (8.6%) for the three months
17
<PAGE>
ended September 30, 1998 as compared to the three months ended September
30, 1997. As a percentage of oil and gas sales, this expense increased to
20.3% for the three months ended September 30, 1998 from 9.9% for the
three months ended September 30, 1997. This percentage increase was
primarily due to the decrease in the average price of gas sold for the
three months ended September 30, 1998 as compared to the three months
ended September 30, 1997.
General and administrative expenses decreased $1,662 (8.8%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
increased to 21.2% for the three months ended September 30, 1998 from
12.3% for the three months ended September 30, 1997. This percentage
increase was primarily due to the decrease in gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
Nine Months Ended September 30,
-------------------------------
1998 1997
-------- --------
Oil and gas sales $276,145 $496,237
Oil and gas production expenses $ 78,532 $ 97,247
Barrels produced 41 90
Mcf produced 144,968 225,390
Average price/Bbl $ 13.68 $ 21.96
Average price/Mcf $ 1.90 $ 2.19
As shown in the table above, total oil and gas sales decreased $220,092
(44.4%) for the nine months ended September 30, 1998 as compared to the
nine months ended September 30, 1997. Of this decrease, approximately
$176,000 was related to a decrease in volumes of gas sold and
approximately $42,000 was related to a decrease in the average price of
gas sold. Volumes of oil and gas sold decreased 49 barrels and 80,422 Mcf,
respectively, for the nine months ended September 30, 1998 as compared to
the nine months ended September 30, 1997. The decrease in volumes of gas
sold resulted primarily from (i) the normal decline in production due to
diminishing reserves and (ii) the sale of one well during 1998. Average
oil and gas prices decreased to $13.68 per barrel and $1.90 per Mcf,
respectively, for the nine months ended September 30, 1998 from $21.96 per
barrel and $2.19 per Mcf, respectively, for the nine months ended
September 30, 1997.
18
<PAGE>
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $18,715 (19.2%) for the nine months ended
September 30, 1998 as compared to the nine months ended September 30,
1997. This decrease resulted primarily from (i) the decrease in volumes of
oil and gas sold and (ii) a decrease in production taxes associated with
the decreases in oil and gas sales, which decreases were partially offset
by an increase in general repair and maintenance expenses on several wells
during the nine months ended September 30, 1998. As a percentage of oil
and gas sales, these expenses increased to 28.4% for the nine months ended
September 30, 1998 from 19.6% for the nine months ended September 30,
1997. This percentage increase was primarily due to the decreases in the
average prices of oil and gas sold during the nine months ended September
30, 1998 as compared to the nine months ended September 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $23,898 (37.6%) for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997. This decrease
resulted primarily from the decrease in volumes of oil and gas sold during
the nine months ended September 30, 1998 as compared to the nine months
ended September 30, 1997. As a percentage of oil and gas sales, this
expense increased to 14.4% for the nine months ended September 30, 1998
from 12.8% for the nine months ended September 30, 1997.
General and administrative expenses decreased $6,839 (9.8%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
increased to 22.9% for the nine months ended September 30, 1998 from 14.1%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decrease in oil and gas sales.
19
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule containing summary financial
information extracted from the 1982-1 Program's
financial statements as of September 30, 1998 and for
the nine months ended September 30, 1998, filed
herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the 1982-2 Program's
financial statements as of September 30, 1998 and for
the nine months ended September 30, 1998, filed
herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
None.
20
<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 6, 1998 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: November 6, 1888 By: /s/Patrick M. Hall
-------------------------------
(Signature)
Patrick M. Hall
Chief Financial Officer
21
<PAGE>
INDEX TO EXHIBITS
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial information
extracted from the Dyco Oil and Gas Program 1982-1 Limited
Partnership's financial statements as of September 30, 1998 and for
the nine
months ended September 30, 1998, filed herewith.
27.2 Financial Data Schedule containing summary financial information
extracted from the Dyco Oil and Gas Program 1982-2 Limited
Partnership's financial statements as of September 30, 1998 and for
the nine
months ended September 30, 1998, filed herewith.
All other exhibits are omitted as inapplicable.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000718943
<NAME> DYCO OIL & GAS PROGRAM 1982-1 LIMITED PSHIP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 146,198
<SECURITIES> 0
<RECEIVABLES> 22,273
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 168,471
<PP&E> 52,499,622
<DEPRECIATION> 52,434,369
<TOTAL-ASSETS> 293,351
<CURRENT-LIABILITIES> 6,376
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 233,741
<TOTAL-LIABILITY-AND-EQUITY> 293,351
<SALES> 154,056
<TOTAL-REVENUES> 158,834
<CGS> 0
<TOTAL-COSTS> 178,859
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (20,025)
<INCOME-TAX> 0
<INCOME-CONTINUING> (20,025)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (20,025)
<EPS-PRIMARY> (1.98)
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000718944
<NAME> DYCO OIL & GAS PROGRAM 1982-2 LIMITED PSHIP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 63,829
<SECURITIES> 0
<RECEIVABLES> 45,054
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 108,883
<PP&E> 38,298,714
<DEPRECIATION> 38,164,323
<TOTAL-ASSETS> 261,001
<CURRENT-LIABILITIES> 11,561
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 166,521
<TOTAL-LIABILITY-AND-EQUITY> 261,001
<SALES> 276,145
<TOTAL-REVENUES> 343,988
<CGS> 0
<TOTAL-COSTS> 181,497
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 162,491
<INCOME-TAX> 0
<INCOME-CONTINUING> 162,491
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 162,491
<EPS-PRIMARY> 20.11
<EPS-DILUTED> 0
</TABLE>
