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
June 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
June 30, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $123,371 $120,049
Accrued oil and gas sales 29,690 49,405
-------- --------
Total current assets $153,061 $169,454
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 77,734 90,100
DEFERRED CHARGE 59,627 59,627
-------- --------
$290,422 $319,181
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 6,585 $ 12,181
-------- --------
Total current liabilities $ 6,585 $ 12,181
ACCRUED LIABILITY $ 53,234 $ 53,234
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 100 units $ 2,305 $ 2,537
Limited Partners, issued and
outstanding, 10,000 units 228,298 251,229
-------- --------
Total Partners' capital $230,603 $253,766
-------- --------
$290,422 $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 JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- --------
REVENUES:
Oil and gas sales $35,794 $77,277
Interest 1,472 2,179
------- -------
$37,266 $79,456
COSTS AND EXPENSES:
Oil and gas production $22,284 $30,630
Depreciation, depletion, and
amortization of oil and gas
properties 5,605 6,237
General and administrative
(Note 2) 20,558 23,885
------- -------
$48,447 $60,752
------- -------
NET INCOME (LOSS) ($11,181) $18,704
======= =======
GENERAL PARTNER (1%) - net
income (loss) ($ 112) $ 187
======= =======
LIMITED PARTNERS (99%) - net
income (loss) ($11,069) $18,517
======= =======
NET INCOME (LOSS) PER UNIT ($ 1.10) $ 1.85
======= =======
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- --------
REVENUES:
Oil and gas sales $ 87,869 $177,080
Interest 2,992 3,522
-------- --------
$ 90,861 $180,602
COSTS AND EXPENSES:
Oil and gas production $ 43,737 $ 51,393
Depreciation, depletion, and
amortization of oil and gas
properties 12,046 19,383
General and administrative
(Note 2) 58,241 64,604
-------- --------
$114,024 $135,380
-------- --------
NET INCOME (LOSS) ($ 23,163) $ 45,222
======== ========
GENERAL PARTNER (1%) - net
income (loss) ($ 232) $ 452
======== ========
LIMITED PARTNERS (99%) - net
income (loss) ($ 22,931) $ 44,770
======== ========
NET INCOME (LOSS) PER UNIT ($ 2.29) $ 4.48
======== ========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 23,163) $ 45,222
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 12,046 19,383
Decrease in accrued oil and
gas sales 19,715 16,649
Decrease in accounts payable ( 5,596) ( 1,431)
-------- --------
Net cash provided by operating
activities $ 3,002 $ 79,823
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil
and gas properties $ 320 $ -
-------- --------
Net cash provided by investing
activities $ 320 $ -
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash used by financing
activities $ - $ -
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 3,322 $ 79,823
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 120,049 135,676
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $123,371 $215,499
======== ========
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
June 30, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $207,294 $234,351
Accrued oil and gas sales 59,984 110,673
-------- --------
Total current assets $267,278 $345,024
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 151,890 182,488
DEFERRED CHARGE 17,727 17,727
-------- --------
$436,895 $545,239
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 7,159 $ 8,568
Gas imbalance payable 5,322 5,322
-------- --------
Total current liabilities $ 12,481 $ 13,890
ACCRUED LIABILITY $ 82,919 $ 82,919
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 80 units $ 3,415 $ 4,484
Limited Partners, issued and
outstanding, 8,000 units 338,080 443,946
-------- --------
Total Partners' capital $341,495 $448,430
-------- --------
$436,895 $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 JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- --------
REVENUES:
Oil and gas sales $66,384 $113,745
Interest 1,974 1,629
------- --------
$68,358 $115,374
COSTS AND EXPENSES:
Oil and gas production $22,240 $ 22,443
Depreciation, depletion, and
amortization of oil and gas
properties 8,965 7,566
General and administrative
(Note 2) 16,165 18,898
------- --------
$47,370 $ 48,907
------- --------
NET INCOME $20,988 $ 66,467
======= ========
GENERAL PARTNER (1%) - net income $ 210 $ 665
======= ========
LIMITED PARTNERS (99%) - net income $20,778 $ 65,802
======= ========
NET INCOME PER UNIT $ 2.60 $ 8.23
======= ========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- --------
REVENUES:
Oil and gas sales $194,940 $342,429
Interest 5,145 3,988
Gain on sale of oil and
gas properties 60,327 -
-------- --------
$260,412 $346,417
COSTS AND EXPENSES:
Oil and gas production $ 55,718 $ 60,421
Depreciation, depletion, and
amortization of oil and gas
properties 23,217 48,423
General and administrative
(Note 2) 46,012 51,189
-------- --------
$124,947 $160,033
-------- --------
NET INCOME $135,465 $186,384
======== ========
GENERAL PARTNER (1%) - net income $ 1,355 $ 1,864
======== ========
LIMITED PARTNERS (99%) - net income $134,110 $184,520
======== ========
NET INCOME PER UNIT $ 16.77 $ 23.07
======== ========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $135,465 $186,384
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 23,217 48,423
Gain on sale of oil and gas
properties ( 60,327) -
Decrease in accrued oil and
gas sales 59,689 63,472
Decrease in accounts payable ( 1,409) ( 2,076)
-------- --------
Net cash provided by operating
activities $147,635 $296,203
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 67,708 $ 1,686
-------- --------
Net cash provided by investing
activities $ 67,708 $ 1,686
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($242,400) ($282,800)
-------- --------
Net cash used by financing
activities ($242,400) ($282,800)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 27,057) $ 15,089
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 234,351 208,342
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $207,294 $223,431
======== ========
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
JUNE 30, 1998
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheet as of June 30, 1998, statements of operations for the
three and six months ended June 30, 1998 and 1997, and statements of cash
flows for the six months ended June 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 June 30, 1998,
results of operations for the three and six months ended June 30, 1998 and
1997, and changes in cash flows for the six months ended June 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 June 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 $62,467.
Accordingly, capitalized costs were reduced by 1.2% with the remainder
recorded as Gain of 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 June 30, 1998 and
1997 the 1982-1 Program incurred such expenses totaling $20,558 and
$23,885, respectively, of which $18,615 was paid each period to Dyco and
its affiliates. During the six months ended June 30, 1998 and 1997 the
1982-1 Program incurred such expenses totaling $58,241 and $64,604,
respectively, of which $37,230 was paid each period to Dyco and its
affiliates. During the three months ended June 30, 1998 and 1997 the
1982-2 Program incurred such expenses totaling $16,165 and $18,898,
respectively, of which $14,610 was paid each period to Dyco and its
affiliates. During the six months ended June 30, 1998 and 1997 the 1982-2
Program incurred such expenses totaling $46,012 and $51,189, respectively,
of which $29,220 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 six months ended June
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 JUNE 30, 1998 AS COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 1997.
Three Months Ended June 30,
---------------------------
1998 1997
------- -------
Oil and gas sales $35,794 $77,277
Oil and gas production expenses $22,284 $30,630
Barrels produced 154 461
Mcf produced 16,340 37,064
Average price/Bbl $ 12.51 $ 19.46
Average price/Mcf $ 2.07 $ 1.84
As shown in the table above, total oil and gas sales decreased $41,483
(53.7%) for the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. Of this decrease, approximately $6,000 and
$38,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $1,000 was related to a decrease in the average
price of oil sold, which decreases were partially offset by an increase of
approximately $4,000 related to an increase in the average price of gas
sold. Volumes of oil and gas sold decreased 307 barrels and 20,724 Mcf,
respectively, for the three months ended June 30, 1998 as compared to the
three months ended June 30, 1997. The decrease in volumes of oil sold
resulted primarily from the sale of one well in 1997. The decrease in
volumes of gas sold resulted primarily from (i) normal declines in
production due to diminishing reserves on two wells, (ii) the sale of one
well during 1997, and (iii) negative prior period volume adjustments on
three wells during the three months ended June 30, 1998. Average oil
prices decreased to $12.51 per barrel for the three months ended June 30,
1998 from $19.46 per barrel for the three months ended June 30, 1997.
Average gas prices increased to $2.07 per Mcf for the three months ended
June 30, 1998 from $1.84 per Mcf for the three months ended June 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $8,346 (27.2%) for the three months ended June
30, 1998 as compared to the three months ended June 30, 1997. This
decrease resulted primarily from decreased production taxes associated
with the decrease in oil and gas sales and decreased lease operating
expenses due to the decrease in volumes of oil and gas sold during the
three months ended June 30, 1998 as compared to the three months ended
June 30, 1997, which decreases were partially offset by an increase in
lease operating expenses related to (i) an increase in compression
expenses on one well and (ii) an increase in general repair
14
<PAGE>
and maintenance expenses on a different well during the three months ended
June 30, 1998. As a percentage of oil and gas sales, these expenses
increased to 62.3% for the three months ended June 30, 1998 from 39.6% for
the three months ended June 30, 1997. This percentage increase was
primarily due to the increase in lease operating expenses discussed above.
Depreciation, depletion and amortization of oil and gas properties
decreased $632 (10.1%) for the three months ended June 30, 1998 as
compared to the three months ended June 30, 1997. This decrease resulted
primarily from decreases in volumes of oil and gas sold during the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. These decreases were partially offset by an increase related to a
decrease in the gas prices used in the valuation of reserves at
June 30, 1998 as compared to March 31, 1998 and an increase in the gas
prices used in the valuation of reserves at June 30, 1997 as compared to
March 31, 1997. As a percentage of oil and gas sales, this expense
increased to 15.7% for the three months ended June 30, 1998 from 8.1% for
the three months ended June 30, 1997. This percentage increase was
primarily due to the decrease in the gas prices used in the valuation
of reserves at June 30, 1998 as compared to March 31, 1998 and an increase
in the gas prices used in the valuation of reserves at June 30, 1997 as
compared to March 31, 1997.
General and administrative expenses decreased $3,327 (13.9%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from decreases in professional fees
during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. As a percentage of oil and gas sales, these
expenses increased to 57.4% for the three months ended June 30, 1998 from
30.9% for the three months ended June 30, 1997. This percentage increase
was primarily due to the decrease in oil and gas sales discussed above.
15
<PAGE>
SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1997.
Six Months Ended June 30,
-------------------------
1998 1997
------- --------
Oil and gas sales $87,869 $177,080
Oil and gas production expenses $43,737 $ 51,393
Barrels produced 343 988
Mcf produced 41,208 68,727
Average price/Bbl $ 13.75 $ 20.74
Average price/Mcf $ 2.02 $ 2.28
As shown in the table above, total oil and gas sales decreased $89,211
(50.4%) for the six months ended June 30, 1998 as compared to the six
months ended June 30, 1997. Of this decrease, approximately $13,000 and
$63,000, respectively, were due to decreases in the volumes of oil and gas
sold and $2,000 and $11,000, respectively, were due to decreases in the
average prices of oil and gas sold. Volumes of oil and gas sold decreased
645 barrels and 27,519 Mcf, respectively, for the six months ended June
30, 1998 as compared to the six months ended June 30, 1997. The decrease
in volumes of oil sold resulted primarily from the sale of one well in
1997. The decrease in volumes of gas sold resulted primarily from (i)
normal declines in production due to diminishing reserves on several
wells, (ii) the sale of one well during 1997, and (iii) negative prior
period volume adjustments on four wells during the six months ended June
30, 1998. Average oil and gas prices decreased to $13.75 per barrel and
$2.02 per Mcf, respectively, for the six months ended June 30, 1998 from
$20.74 per barrel and $2.28 per Mcf, respectively, for the six months
ended June 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $7,656 (14.9%) for the six months ended June
30, 1998 as compared to the six months ended June 30, 1997. This decrease
resulted primarily from decreased production taxes associated with the
decrease in oil and gas sales and decreased lease operating expenses due
to the decrease in volumes of oil and gas sold during the six months ended
June 30, 1998 as compared to the six months ended June 30, 1997, which
decreases were partially offset by workover expenses incurred on one well
during the six months ended June 30, 1998 in order to improve the recovery
of reserves. As a percentage of oil and gas sales these expenses increased
to 49.8% for the six months ended June 30, 1998 from 29.0% for the six
months ended June 30, 1997. This percentage increase was primarily due to
the workover expenses discussed above.
16
<PAGE>
Depreciation, depletion and amortization of oil and gas properties
decreased $7,337 (37.9%) for the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997. This decrease resulted
primarily from the decreases in volumes of oil and gas sold during the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of oil and gas sales, this expense increased to
13.7% for the six months ended June 30, 1998 from 10.9% for the six months
ended June 30, 1997. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold for the six months
ended June 30, 1998 as compared to the six months ended June 30, 1997.
General and administrative expenses decreased $6,363 (9.8%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of oil and gas sales, these expenses increased to
66.3% for the six months ended June 30, 1998 from 36.5% for the six months
ended June 30, 1997. This percentage increase was primarily due to the
decrease in oil and gas sales discussed above.
1982-2 PROGRAM
THREE MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 1997.
Three Months Ended June 30,
---------------------------
1998 1997
------- --------
Oil and gas sales $66,384 $113,745
Oil and gas production expenses $22,240 $ 22,443
Barrels produced 10 -
Mcf produced 32,887 68,038
Average price/Bbl $ 12.40 $ -
Average price/Mcf $ 2.01 $ 1.67
As shown in the table above, total oil and gas sales decreased $47,361
(41.6%) during the three months ended June 30, 1998 as compared to the
three months ended June 30, 1997. Of this decrease, approximately $58,000
was related to a decrease in volumes of gas sold, which decrease was
partially offset by an increase of approximately $11,000 related to an
increase in the average price of gas sold. Volumes of oil sold increased
10 barrels and volumes of gas sold decreased 35,151 Mcf for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. The decrease in volumes of gas sold resulted primarily from (i)
normal declines in production due to diminishing reserves on two wells,
(ii) the sale of one well in 1997, and (iii) a negative prior period
volume adjustment on another well during the three months ended June 30,
1998.
17
<PAGE>
Average gas prices increased to $2.01 per Mcf for the three months ended
June 30, 1998 from $1.67 per Mcf for the three months ended June 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $203 (0.9%) for the three months ended June
30, 1998 as compared to the three months ended June 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 discussed above, which decreases were partially offset by an
increase in general repair and maintenance expenses on several wells
during the three months ended June 30, 1998. As a percentage of oil and
gas sales, these expenses increased to 33.5% for the three months ended
June 30, 1998 from 19.7% for the three months ended June 30, 1997. This
percentage increase was primarily due to the increase in general repair
and maintenance expenses discussed above.
Depreciation, depletion and amortization of oil and gas properties
increased $1,399 (18.5%) for the three months ended June 30, 1998 as
compared to the three months ended June 30, 1997. This increase resulted
primarily from a decrease in the gas prices used in the valuation of
reserves at June 30, 1998 as compared to March 31, 1998 and an increase in
the gas prices used in the valuation of reserves at June 30, 1997 as
compared to March 31, 1997. As a percentage of oil and gas sales, this
expense increased to 13.5% for the three months ended June 30, 1998 from
6.7% for the three months ended June 30, 1997. This percentage increase
was primarily due to the dollar increase in depreciation, depletion and
amortization discussed above.
General and administrative expenses decreased $2,733 (14.5%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from a decrease in professional
fees during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. As a percentage of oil and gas sales, these
expenses increased to 24.4% for the three months ended June 30, 1998 from
16.6% for the three months ended June 30, 1997. This percentage increase
was primarily due to the decrease in oil and gas sales discussed above.
18
<PAGE>
SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1997.
Six Months Ended June 30,
-------------------------
1998 1997
-------- --------
Oil and gas sales $194,940 $342,429
Oil and gas production expenses $ 55,718 $ 60,421
Barrels produced 33 84
Mcf produced 97,570 154,627
Average price/Bbl $ 14.06 $ 22.30
Average price/Mcf $ 1.99 $ 2.20
As shown in the table above, total oil and gas sales decreased $147,489
(43.1%) for the six months ended June 30, 1998 as compared to the six
months ended June 30, 1997. Of this decrease, approximately $1,000 and
$126,000, respectively, were due to decreases in volumes of oil and gas
sold and approximately $20,000 was due to a decrease in the average price
of gas sold. Volumes of oil and gas sold decreased 51 barrels and 57,057
Mcf, respectively, for the six months ended June 30, 1998 as compared to
the six months ended June 30, 1997. The decrease in volumes of gas sold
resulted primarily from (i) normal declines in production due to
diminishing reserves on two wells, (ii) the sale of one well in 1997, and
(iii) a negative prior period volume adjustment on another well during the
six months ended June 30, 1998. Average oil and gas prices decreased to
$14.06 per barrel and $1.99 per Mcf, respectively, for the six months
ended June 30, 1998 from $22.30 per barrel and $2.20 per Mcf,
respectively, for the six months ended June 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $4,703 (7.8%) for the six months ended June
30, 1998 as compared to the six months ended June 30, 1997. This decrease
resulted primarily from (i) the decreases in volumes of oil and gas sold
and (ii) a decrease in production taxes associated with the decrease in
oil and gas sales discussed above; which decreases were partially offset
by an increase in general repair and maintenance expenses on several wells
during the six months ended June 30, 1998. As a percentage of oil and gas
sales, these production expenses increased to 28.6% for the six months
ended June 30, 1998 from 17.6% for the six months ended June 30, 1997.
This percentage increase was primarily due to the increase in general
repair and maintenance expenses and the decreases in the average prices of
oil and gas sold during the six months ended June 30, 1998 as compared to
the six months ended June 30, 1997.
19
<PAGE>
Depreciation, depletion and amortization of oil and gas properties
decreased $25,206 (52.1%) for the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997. This decrease resulted
primarily from (i) the decrease in volumes of oil and gas sold during the
six months ended June 30, 1998 as compared to the six months ended June
30, 1997 and (ii) an upward revision in the estimate of remaining gas
reserves at December 31, 1997. As a percentage of oil and gas sales, this
expense decreased to 11.9% for the six months ending June 30, 1998 from
14.1% for the six months ended June 30, 1997. This percentage decrease was
primarily due to the upward revision in the estimate of remaining gas
reserves at December 31, 1997 and the decreases in the average prices of
oil and gas sold during the six months ended June 30, 1998 as compared to
the six months ended June 30, 1997.
General and administrative expenses decreased $5,177 (10.1%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. This decrease resulted primarily from a decrease in professional
fees during the six months ended June 30, 1998 as compared to the six
months ended June 30, 1997. As a percentage of oil and gas sales, these
expenses increased to 23.6% for the six months ended June 30, 1998 from
14.9% for the six months ended June 30, 1997. This percentage increase was
primarily due to the decrease in oil and gas sales discussed above.
20
<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 June 30, 1998 and for the six
months ended June 30, 1998, filed herewith.
27.1 Financial Data Schedule containing summary financial
information extracted from the 1982-2 Program's
financial statements as of June 30, 1998 and for the six
months ended June 30, 1998, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
None.
21
<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: August 7, 1998 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: August 7, 1998 By: /s/Patrick M. Hall
-------------------------------
(Signature)
Patrick M. Hall
Chief Financial Officer
22
<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 June 30, 1998 and for the
six months ended June 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 June 30, 1998 and for the
six months ended June 30, 1998, filed herewith.
All other exhibits are omitted as inapplicable.
23
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000718943
<NAME> DYCO OIL & GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 123,371
<SECURITIES> 0
<RECEIVABLES> 29,690
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 153,061
<PP&E> 52,499,561
<DEPRECIATION> 52,421,827
<TOTAL-ASSETS> 290,422
<CURRENT-LIABILITIES> 6,585
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 230,603
<TOTAL-LIABILITY-AND-EQUITY> 290,422
<SALES> 87,869
<TOTAL-REVENUES> 90,861
<CGS> 0
<TOTAL-COSTS> 114,024
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (23,163)
<INCOME-TAX> 0
<INCOME-CONTINUING> (23,163)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (23,163)
<EPS-PRIMARY> (2.29)
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000718944
<NAME> DYCO OIL & GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 207,294
<SECURITIES> 0
<RECEIVABLES> 59,984
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 267,278
<PP&E> 38,299,693
<DEPRECIATION> 38,147,803
<TOTAL-ASSETS> 436,895
<CURRENT-LIABILITIES> 12,481
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 341,495
<TOTAL-LIABILITY-AND-EQUITY> 436,895
<SALES> 194,940
<TOTAL-REVENUES> 260,412
<CGS> 0
<TOTAL-COSTS> 124,947
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 135,465
<INCOME-TAX> 0
<INCOME-CONTINUING> 135,465
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 135,465
<EPS-PRIMARY> 16.77
<EPS-DILUTED> 0
</TABLE>
