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, 2000 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
------ ------
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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,
2000 1999
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $150,947 $ 23,930
Accrued oil and gas sales 52,580 33,560
-------- --------
Total current assets $203,527 $ 57,490
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 73,210 85,114
DEFERRED CHARGE 62,491 65,687
-------- --------
$339,228 $208,291
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 3,266 $ 4,562
-------- --------
Total current liabilities $ 3,266 $ 4,562
ACCRUED LIABILITY $ 12,770 $ 12,770
PARTNERS' CAPITAL:
General Partner, 100 general
partner units $ 3,231 $ 1,909
Limited Partners, issued and
outstanding, 10,000 Units 319,961 189,050
-------- --------
Total Partners' capital $323,192 $190,959
-------- --------
$339,228 $208,291
======== ========
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, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
REVENUES:
Oil and gas sales $90,259 $48,862
Interest 1,629 966
------- -------
$91,888 $49,828
COSTS AND EXPENSES:
Oil and gas production $17,224 $22,394
Depreciation, depletion, and
amortization of oil and gas
properties 4,113 2,766
General and administrative
(Note 2) 14,623 21,706
------- -------
$35,960 $46,866
------- -------
NET INCOME $55,928 $ 2,962
======= =======
GENERAL PARTNER (1%) - net income $ 559 $ 30
======= =======
LIMITED PARTNERS (99%) - net income $55,369 $ 2,932
======= =======
NET INCOME PER UNIT $ 5.54 $ .30
======= =======
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, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
REVENUES:
Oil and gas sales $210,755 $110,522
Interest 2,774 3,075
Gain on sale of oil and gas
properties 22,025 -
-------- --------
$235,554 $113,597
COSTS AND EXPENSES:
Oil and gas production $ 47,886 $ 53,224
Depreciation, depletion, and
amortization of oil and gas
properties 10,376 9,666
General and administrative
(Note 2) 45,059 78,904
-------- --------
$103,321 $141,794
-------- --------
NET INCOME (LOSS) $132,233 ($ 28,197)
======== ========
GENERAL PARTNER (1%) - net income
(loss) $ 1,322 ($ 282)
======== ========
LIMITED PARTNERS (99%) - net income
(loss) $130,911 ($ 27,915)
======== ========
NET INCOME (LOSS) PER UNIT $ 13.09 ($ 2.79)
======== ========
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, 2000 AND 1999
(Unaudited)
2000 1999
--------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $132,233 ($ 28,197)
Adjustments to reconcile net income
(loss) to net cash provided (used)
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 10,376 9,666
Gain on sale of oil and gas
properties ( 22,025) -
Increase in accrued oil and gas
sales ( 19,020) ( 8,078)
Decrease in deferred charge 3,196 -
Decrease in accounts payable ( 1,296) ( 325)
-------- --------
Net cash provided (used) by
operating activities $103,464 ($ 26,934)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil
and gas properties $ 23,553 $ -
Additions to oil and gas properties - ( 844)
-------- --------
Net cash provided (used) by investing
activities $ 23,553 ($ 844)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash used by financing
activities $ - $ -
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $127,017 ($ 27,778)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 23,930 108,147
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $150,947 $ 80,369
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
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<PAGE>
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $190,481 $102,242
Accrued oil and gas sales 116,567 65,530
-------- --------
Total current assets $307,048 $167,772
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 117,184 121,881
DEFERRED CHARGE 33,073 33,073
-------- --------
$457,305 $322,726
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 4,239 $ 10,210
Gas imbalance payable 242 242
-------- --------
Total current liabilities $ 4,481 $ 10,452
ACCRUED LIABILITY $130,611 $130,611
PARTNERS' CAPITAL:
General Partner, 80 general
partner units $ 3,221 $ 1,816
Limited Partners, issued and
outstanding, 8,000 Units 318,992 179,847
-------- --------
Total Partners' capital $322,213 $181,663
-------- --------
$457,305 $322,726
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
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<PAGE>
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
REVENUES:
Oil and gas sales $198,146 $107,287
Interest 1,530 1,816
-------- --------
$199,676 $109,103
COSTS AND EXPENSES:
Oil and gas production $ 26,315 $ 34,714
Depreciation, depletion, and
amortization of oil and gas
properties 8,541 6,328
General and administrative
(Note 2) 15,962 17,083
-------- --------
$ 50,818 $ 58,125
-------- --------
NET INCOME $148,858 $ 50,978
======== ========
GENERAL PARTNER (1%) - net income $ 1,488 $ 510
======== ========
LIMITED PARTNERS (99%) - net income $147,370 $ 50,468
======== ========
NET INCOME PER UNIT $ 18.42 $ 6.31
======== ========
UNITS OUTSTANDING 8,080 8,080
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
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<PAGE>
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- ---------
REVENUES:
Oil and gas sales $447,743 $230,900
Interest 5,433 4,854
-------- --------
$453,176 $235,754
COSTS AND EXPENSES:
Oil and gas production $ 81,069 $ 72,534
Depreciation, depletion, and
amortization of oil and gas
properties 18,525 17,556
General and administrative
(Note 2) 51,432 62,539
-------- --------
$151,026 $152,629
-------- --------
NET INCOME $302,150 $ 83,125
======== ========
GENERAL PARTNER (1%) - net income $ 3,021 $ 831
======== ========
LIMITED PARTNERS (99%) - net income $299,129 $ 82,294
======== ========
NET INCOME PER UNIT $ 37.39 $ 10.29
======== ========
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, 2000 AND 1999
(Unaudited)
2000 1999
--------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $302,150 $ 83,125
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 18,525 17,556
Increase in accrued oil and
gas sales ( 51,037) ( 7,468)
(Decrease) increase in accounts
payable ( 5,971) 434
-------- --------
Net cash provided by operating
activities $263,667 $ 93,647
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 516 $ 3,289
Additions to oil and gas properties ( 14,344) ( 12,232)
-------- --------
Net cash used by investing
activities ($ 13,828) ($ 8,943)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($161,600) ($161,600)
-------- --------
Net cash used by financing
activities ($161,600) ($161,600)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 88,239 ($ 76,896)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 102,242 110,694
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $190,481 $ 33,798
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
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<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, 2000
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 2000, statements of operations for
the three and nine months ended September 30, 2000 and 1999, and
statements of cash flows for the nine months ended September 30, 2000 and
1999 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, 2000, results of operations for the three and nine months
ended September 30, 2000 and 1999, and changes in cash flows for the nine
months ended September 30, 2000 and 1999 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, 1999. The results of operations for the period
ended September 30, 2000 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
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<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. The 1982-1 Program sold one well during the
nine months ended September 30, 2000 for $23,334 representing
approximately 2% of its total reserves. The proceeds from this sale would
have reduced the net book value of the 1982-1 Program's oil and gas
properties by 29%, significantly altering its capitalized cost/proved
reserves relationship. Accordingly, capitalized costs were reduced by
approximately 2% and a gain on sale of oil and gas properties of $22,025
was recognized.
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, 2000
and 1999 the 1982-1 Program incurred such expenses totaling $14,623 and
$21,706, respectively, of which $9,240 and $18,615, respectively, were
paid each period to Dyco and its affiliates. During the nine months ended
September 30, 2000 and 1999 the 1982-1 Program incurred such expenses
totaling $45,059 and $78,904, respectively, of which $27,720 and $55,845,
respectively, were paid each period to Dyco and its affiliates. During the
three months ended September 30, 2000 and 1999 the 1982-2 Program incurred
such expenses totaling $15,962 and $17,083, respectively, of which $12,156
and $14,610, respectively, were paid each period to Dyco and its
affiliates. During the nine months ended September 30, 2000 and 1999 the
1982-2 Program incurred such expenses totaling $51,432 and $62,539,
respectively, of which $36,468 and $43,830, respectively, were paid each
period to Dyco and its affiliates.
-11-
<PAGE>
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.
-12-
<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.
Management believes that cash for ordinary operational purposes will be
provided by current oil and gas production.
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<PAGE>
The 1982-1 Program's Statement of Cash Flows for the nine months ended
September 30, 2000 includes proceeds from the sale of oil and gas
properties during the second quarter of 2000. These proceeds will be
included in future cash distributions.
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
variables affecting the Programs' revenues are the prices received for the
sale of oil and gas and the volumes of oil and gas produced. The Program's
production is mainly natural gas, so such pricing and volumes are the most
significant factors.
Due to the volatility of oil and gas prices, forecasting future prices is
subject to great uncertainty and inaccuracy. 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. It is likewise
difficult to predict production volumes. However, oil and gas are
depleting assets, so it can be expected that production levels will
decline over time. Recent gas prices have been significantly higher than
the Program's historical average. This is attributable to the higher
prices for crude oil, a substitute fuel in some markets, and reduced
production due to lower capital investments in 1998 and 1999.
-14-
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1982-1 PROGRAM
THREE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1999.
Three Months Ended September 30,
--------------------------------
2000 1999
------- -------
Oil and gas sales $90,259 $48,862
Oil and gas production expenses $17,224 $22,394
Barrels produced 86 69
Mcf produced 23,339 20,478
Average price/Bbl $ 24.80 $ 23.00
Average price/Mcf $ 3.78 $ 2.31
As shown in the table above, total oil and gas sales increased $41,397
(84.7%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$34,000 was related to an increase in the average price of gas sold and
approximately $7,000 was related to an increase in volumes of gas sold.
Volumes of oil and gas sold increased 17 barrels and 2,861 Mcf,
respectively, for the three months ended September 30, 2000 as compared to
the three months ended September 30, 1999. The increase in volumes of gas
sold was primarily due to positive prior period volume adjustments made by
the purchasers on two wells during the three months ended September 30,
2000. Average oil and gas prices increased to $24.80 per barrel and $3.78
per Mcf, respectively, for the three months ended September 30, 2000 from
$23.00 per barrel and $2.31 per Mcf, respectively, for the three months
ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $5,170 (23.1%) for the three months ended
September 30, 2000 as compared to the three months ended September 30,
1999. This decrease was primarily due to (i) a positive prior period lease
operating expense adjustment made by the operator on one well during the
three months ended September 30, 1999, (ii) the sale of one well during
the second quarter of 2000, and (iii) an increase in repair and
maintenance expenses on another well during the three months ended
September 30, 2000. These decreases were partially offset by an increase
in production taxes associated with the increase in oil and gas sales. As
a percentage of oil and gas sales, these expenses decreased to 19.1% for
the three months ended September 30, 2000 from 45.8% for the three months
ended September 30, 1999. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold and the dollar
decrease in oil and gas production expenses.
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<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
increased $1,347 (48.7%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This increase was
primarily due to the decreased dollar amount of depreciation, depletion,
and amortization charged during the third quarter of 1999 which resulted
from a significant increase in the gas price used in the valuation of
remaining reserves at September 30, 1999 as compared to June 30, 1999. As
a percentage of oil and gas sales, this expense decreased to 4.6% for the
three months ended September 30, 2000 from 5.7% for the three months ended
September 30, 1999. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
General and administrative expenses decreased $7,083 (32.6%) for the three
months ended September 30, 2000 as compared to the three months ended
September 30, 1999. This decrease was primarily due to a change in
allocation among the Program and other affiliated programs of indirect
general and administrative expenses reimbursed to the General Partner. As
a percentage of oil and gas sales, these expenses decreased to 16.2% for
the three months ended September 30, 2000 from 44.4% for the three months
ended September 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales and the dollar decrease in general and
administrative expenses.
NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1999.
Nine Months Ended September 30,
-------------------------------
2000 1999
-------- --------
Oil and gas sales $210,755 $110,522
Oil and gas production expenses $ 47,886 $ 53,224
Barrels produced 234 310
Mcf produced 69,641 56,271
Average price/Bbl $ 26.68 $ 16.59
Average price/Mcf $ 2.94 $ 1.87
As shown in the table above, total oil and gas sales increased $100,233
(90.7%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$74,000 was related to an increase in the average price of gas sold and
approximately $25,000 was related to an increase in volumes of gas sold.
Volumes of oil sold decreased 76 barrels, while volumes of gas sold
increased 13,370 Mcf for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. The decrease in
volumes of oil sold was primarily due to the sale of one
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<PAGE>
well during the nine months ended September 30, 2000. The increase in
volumes of gas sold was primarily due to (i) a negative prior period
volume adjustment made by the purchaser on one well during the nine months
ended September 30, 1999 and (ii) a positive prior period volume
adjustment made by the purchaser on another well during the nine months
ended September 30, 2000. Average oil and gas prices increased to $26.68
per barrel and $2.94 per Mcf, respectively, for the nine months ended
September 30, 2000 from $16.59 per barrel and $1.87 per Mcf, respectively,
for the nine months ended September 30, 1999.
The 1982-1 Program sold one well during the nine months ended September
30, 2000 for $23,334 representing approximately 2% of its total reserves.
The proceeds from this sale would have reduced the net book value of the
1982-1 Program's oil and gas properties by 29%, significantly altering its
capitalized cost/proved reserves relationship. Accordingly, capitalized
costs were reduced by approximately 2% and a gain on sale of oil and gas
properties of $22,025 was recognized. There were no similar sales during
the nine months ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $5,338 (10.0%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This decrease was primarily due to (i) the sale of one well during
the nine months ended September 30, 2000 and (ii) a positive prior period
lease operating expense adjustment made by the operator on one well during
the nine months ended September 30, 1999. These decreases were partially
offset by an increase in production taxes associated with the increase in
oil and gas sales. As a percentage of oil and gas sales, these expenses
decreased to 22.7% for the nine months ended September 30, 2000 from 48.2%
for the nine months ended September 30, 1999. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $710 (7.3%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This increase was
primarily due to the increase in volumes of gas sold. This increase was
partially offset by a decrease in depreciation, depletion, and
amortization primarily due to an increase in the gas price used in the
valuation of remaining reserves at September 30, 2000 as compared to
September 30, 1999. As a percentage of oil and gas sales, this expense
decreased to 4.9% for the nine months ended September 30, 2000 from 8.7%
for the nine months ended September 30, 1999. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
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<PAGE>
General and administrative expenses decreased $33,845 (42.9%) for the nine
months ended September 30, 2000 as compared to the nine months ended
September 30, 1999. This decrease was primarily due to a change in
allocation among the Program and other affiliated programs of audit fees
and indirect general and administrative expenses reimbursed to the General
Partner. As a percentage of oil and gas sales, these expenses decreased to
21.4% for the nine months ended September 30, 2000 from 71.4% for the nine
months ended September 30, 1999. This percentage decrease was primarily
due to the increase in oil and gas sales and the dollar decrease in
general and administrative expenses.
1982-2 PROGRAM
THREE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1999.
Three Months Ended September 30,
--------------------------------
2000 1999
-------- --------
Oil and gas sales $198,146 $107,287
Oil and gas production expenses $ 26,315 $ 34,714
Barrels produced 24 11
Mcf produced 51,016 45,766
Average price/Bbl $ 29.96 $ 22.18
Average price/Mcf $ 3.87 $ 2.34
As shown in the table above, total oil and gas sales increased $90,859
(84.7%) for the three months ended September 30, 2000 as compared to the
three months ended September 30, 1999. Of this increase, approximately
$78,000 was related to an increase in the average price of gas sold and
approximately $12,000 was related to an increase in volumes of gas sold.
Volumes of oil and gas sold increased 13 barrels and 5,250 Mcf,
respectively, for the three months ended September 30, 2000 as compared to
the three months ended September 30, 1999. The increase in volumes of gas
sold was primarily due to (i) the successful recompletion of one well
during the second quarter of 2000, (ii) the shutting-in of one well in
order to perform a workover during the three months ended September 30,
1999, and (iii) the receipt of a reduced percentage of sales during the
three months ended September 30, 1999 on one well due to the 1982-2
Program's overproduced gas balancing position in that well. Average oil
and gas prices increased to $29.96 per barrel and $3.87 per Mcf,
respectively, for the three months ended September 30, 2000 from $22.18
per barrel and $2.34 per Mcf, respectively, for the three months ended
September 30, 1999.
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<PAGE>
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $8,399 (24.2%) for the three months ended
September 30, 2000 as compared to the three months ended September 30,
1999. This decrease was primarily due to workover expenses incurred on two
wells during the three months ended September 30, 1999 in order to improve
the recovery of reserves. These decreases were partially offset by an
increase in production taxes associated with the increase in oil and gas
sales. As a percentage of oil and gas sales, these expenses decreased to
13.3% for the three months ended September 30, 2000 from 32.4% for the
three months ended September 30, 1999. This percentage decrease was
primarily due to the increase in the average price of gas sold and the
dollar decrease in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
increased $2,213 (35.0%) for the three months ended September 30, 2000 as
compared to the three months ended September 30, 1999. This increase was
primarily due to (i) the decreased dollar amount of depreciation,
depletion, and amortization charged during the third quarter of 1999 which
resulted from a significant increase in the gas price used in the
valuation of remaining reserves at September 30, 1999 as compared to June
30, 1999 and (ii) the increase in volumes of gas sold. As a percentage of
oil and gas sales, this expense decreased to 4.3% for the three months
ended September 30, 2000 from 5.9% for the three months ended September
30, 1999. This percentage decrease was primarily due to the increase in
the average price of gas sold.
General and administrative expenses decreased $1,121 (6.6%) for the three
months ended September 30, 2000 as compared to the three months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 8.1% for the three months ended September 30, 2000 from 15.9%
for the three months ended September 30, 1999. This percentage decrease
was primarily due to the increase in oil and gas sales.
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<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1999.
Nine Months Ended September 30,
-------------------------------
2000 1999
-------- --------
Oil and gas sales $447,743 $230,900
Oil and gas production expenses $ 81,069 $ 72,534
Barrels produced 82 27
Mcf produced 144,731 121,523
Average price/Bbl $ 29.72 $ 17.33
Average price/Mcf $ 3.08 $ 1.90
As shown in the table above, total oil and gas sales increased $216,843
(93.9%) for the nine months ended September 30, 2000 as compared to the
nine months ended September 30, 1999. Of this increase, approximately
$171,000 was related to an increase in the average price of gas sold and
approximately $44,000 was related to an increase in volumes of gas sold.
Volumes of oil and gas sold increased 55 barrels and 23,208 Mcf,
respectively, for the nine months ended September 30, 2000 as compared to
the nine months ended September 30, 1999. The increase in volumes of gas
sold was primarily due to (i) a negative prior period volume adjustment
made by the purchaser on one well during the nine months ended September
30, 1999, (ii) the receipt of a reduced percentage of sales during the
nine months ended September 30, 1999 on one well due to the 1982-2
Program's overproduced gas balancing position in that well, and (iii) the
successful recompletion of one well during the second quarter of 2000.
Average oil and gas prices increased to $29.72 per barrel and $3.08 per
Mcf, respectively, for the nine months ended September 30, 2000 from
$17.33 per barrel and $1.90 per Mcf, respectively, for the nine months
ended September 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $8,535 (11.8%) for the nine months ended
September 30, 2000 as compared to the nine months ended September 30,
1999. This increase was primarily due to (i) an increase in production
taxes associated with the increase in oil and gas sales and (ii) workover
expenses incurred on one well during the nine months ended September 30,
2000 in order to improve the recovery of reserves. These increases were
partially offset by workover expenses incurred on two wells during the
nine months ended September 30, 1999 in order to improve the recovery of
reserves. As a percentage of oil and gas sales, these expenses decreased
to 18.1% for the nine months ended September 30, 2000 from 31.4% for the
nine months ended September 30, 1999. This percentage decrease was
primarily due to the increase in the average price of gas sold.
-20-
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
increased $969 (5.5%) for the nine months ended September 30, 2000 as
compared to the nine months ended September 30, 1999. This increase was
primarily due to the increase in volumes of gas sold, which increase was
partially offset by an increase in the gas price used in the valuation of
remaining reserves at September 30, 2000 as compared to September 30,
1999. As a percentage of oil and gas sales, this expense decreased to 4.1%
for the nine months ended September 30, 2000 from 7.6% for the nine months
ended September 30, 1999. This percentage decrease was primarily due to
the increase in the average price of gas sold.
General and administrative expenses decreased $11,107 (17.8%) for the nine
months ended September 30, 2000 as compared to the nine months ended
September 30, 1999. This decrease was primarily due to a change in
allocation among the 1982-2 Program and other affiliated programs of audit
fees and indirect general and administrative expenses reimbursed to the
General Partner. As a percentage of oil and gas sales, these expenses
decreased to 11.5% for the nine months ended September 30, 2000 from 27.1%
for the nine months ended September 30, 1999. This percentage decrease was
primarily due to the increase in oil and gas sales.
-21-
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Programs do not hold any market risk sensitive instruments.
-22-
<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, 2000 and for
the nine months ended September 30, 2000, filed
herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the 1982-2 Program's
financial statements as of September 30, 2000 and for
the nine months ended September 30, 2000, filed
herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
None.
-23-
<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 8, 2000 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: November 8, 2000 By: /s/Patrick M. Hall
-------------------------------
(Signature)
Patrick M. Hall
Chief Financial Officer
-24-
<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, 2000 and for
the nine months ended September 30, 2000, 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, 2000 and for
the nine months ended September 30, 2000, filed herewith.
All other exhibits are omitted as inapplicable.
-25-
