<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended Commission File Number
March 31, 1996 0-12052
DYCO OIL AND GAS PROGRAM 1983-1
(A LIMITED PARTNERSHIP)
(Exact Name of Registrant as specified in its charter)
Minnesota 41-1451945
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or organization) Number)
Samson Plaza, Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(918) 583-1791
----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days.
Yes X No
---- ----
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DYCO OIL AND GAS PROGRAM 1983-1 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1996 1995
---------- -------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 119,214 $ 173,345
Accrued oil and gas sales, including
$101,934 due from related parties
in 1995 (Note 2) . . . . . . . . . . 130,218 119,412
---------- ----------
Total current assets . . . . . . . $ 249,432 $ 292,757
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 767,306 782,694
DEFERRED CHARGE . . . . . . . . . . . . . 65,964 65,964
---------- ----------
$1,082,702 $1,141,415
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 9,364 $ 8,531
Gas imbalance payable . . . . . . . . 90,223 90,223
---------- ----------
Total current liabilities . . . . . $ 99,587 $ 98,754
ACCRUED LIABILITY . . . . . . . . . . . . 181,682 181,682
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
76 units . . . . . . . . . . . . . . 8,015 8,610
Limited Partners, issued and outstanding,
7,600 units . . . . . . . . . . . . 793,418 852,369
---------- ----------
Total Partners' capital . . . . . . $ 801,433 $ 860,979
---------- ----------
$1,082,702 $1,141,415
========== ==========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1983-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
---------- ----------
REVENUES:
Oil and gas sales, including
$157,623 of sales to related
parties in 1995 (Note 2) . . . . . . $260,469 $212,446
Interest . . . . . . . . . . . . . . . 2,070 1,167
-------- --------
$262,539 $213,613
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 48,848 $100,513
Depreciation, depletion, and amortization
of oil and gas properties . . . . . . . 53,845 57,514
General and administrative (Note 2) . 27,492 27,795
-------- --------
$130,185 $185,822
-------- --------
NET INCOME . . . . . . . . . . . . . . . $132,354 $ 27,791
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 1,324 $ 278
======== ========
LIMITED PARTNERS (99%) - net income . . . $131,030 $ 27,513
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 17 $ 4
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 7,676 7,676
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1983-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . $132,354 $ 27,791
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 53,845 57,514
(Increase) decrease in accrued oil and
gas sales . . . . . . . . . . . . . ( 10,806) 32,461
Increase (decrease) in accounts
payable . . . . . . . . . . . . . . 833 ( 12,654)
-------- --------
Net cash provided by operating
activities . . . . . . . . . . . . $176,226 $105,112
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . ($ 38,457) $ -
-------- --------
Net cash used by investing
activities . . . . . . . . . . . . ($ 38,457) $ -
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . ($191,900) $ -
-------- --------
Net cash used by financing
activities . . . . . . . . . . . . ($191,900) $ -
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . . ($ 54,131) $105,112
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD . . . . . . . . . . . . . . . . . 173,345 59,992
-------- --------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD . . . . . . . . . . . . . . . . . $119,214 $165,104
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1983-1 LIMITED PARTNERSHIP
CONDENSED NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheet as of March 31, 1996, statements of operations
for the three months ended March 31, 1996 and 1995, and
statements of cash flows for the three months ended March 31,
1996 and 1995 have been prepared by Dyco Petroleum Corporation
("Dyco"), the General Partner of the Dyco Oil and Gas Program
1983-1 Limited Partnership (the "Program"), without audit. In
the opinion of management all adjustments (which include only
normal recurring adjustments) necessary to present fairly the
financial position at March 31, 1996, results of operations for
the three months ended March 31, 1996 and 1995 and changes in
cash flows for the three months ended March 31, 1996 and 1995
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 Program's Annual Report on Form 10-K for the year
ended December 31, 1995. The results of operations for the
period ended March 31, 1996 are not necessarily indicative of the
results to be expected for the full year.
The limited partners' net income or loss per unit is based upon
each $5,000 initial capital contribution.
OIL AND GAS PROPERTIES
----------------------
Oil and gas operations are accounted for using the full cost
method of accounting. All productive and non-productive costs
associated with the acquisition, exploration and development of
oil and gas reserves are capitalized. Sales and abandonments of
properties are accounted for as adjustments of capitalized costs
with no gain or loss recognized, unless such adjustments would
significantly alter the relationship between capitalized costs
and proved oil and gas reserves.
The provision for depreciation, depletion, and amortization of
oil and gas properties is calculated by dividing the oil and gas
sales dollars during the year by the estimated future gross
income from 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.
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2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms 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 March 31, 1996 and 1995 such expenses totaled $27,492 and
$27,795, respectively, of which $17,820 and $17,820 were paid to
Dyco.
Affiliates of the Program are the operators of certain of the
Program's properties and their policy is to bill the Program for
all customary charges and cost reimbursements associated with
their activities, together with any compressor rentals,
consulting, or other services provided.
The Program sold gas at market prices to Premier Gas Company
("Premier") and Premier then resold such gas to third parties at
market prices. Premier was an affiliate of the Program until
December 6, 1995. During the three months ended March 31, 1995
these sales totaled $157,623. At December 31, 1995, accrued oil
and gas sales included $101,934 due from Premier.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Net proceeds from the Program's 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 Program's reserves which would result in a
positive economic impact. Over the last several years, the
domestic energy industry and the Program have contended with
volatile, but generally low, oil and gas prices. Over the past
few years, the oil and gas market appears to have moved from
periods of relative stability in supply and demand to excess
supply or weakened demand. These trends have led to the
volatility in pricing and demand noted over the past years.
The Program's available capital from subscriptions has been spent
on oil and gas drilling activities. There should not be any
further material capital resource commitments in the future. The
Program has no bank debt commitments. Cash for operational
purposes will be provided by current oil and gas production.
RESULTS OF OPERATIONS
- ----------------------
THREE MONTHS ENDED MARCH 31, 1996 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1995.
Three months ended March 31,
----------------------------
1996 1995
---- ----
Oil and gas sales $260,469 $212,446
Oil and gas production
expenses $ 48,848 $100,513
Barrels produced 193 227
Mcf produced 159,420 169,198
Average price/Bbl $ 17.01 $ 18.07
Average price/Mcf $ 1.61 $ 1.23
As shown in the table, oil and natural gas sales increased 22.6%
for the three months ended March 31, 1996 as compared to the
three months ended March 31, 1995. This increase was primarily
due to an increase in the average price of natural gas sold,
partially offset by the decrease in the volumes of oil and
natural gas sold and the decrease in the average price of oil
sold during the three months ended March 31, 1996 as compared to
the three months ended March 31, 1995. Volumes of oil and
natural gas sold decreased by 34 barrels and 9,778 Mcf,
respectively, for the three months ended March 31, 1996 as
compared to the three months ended March 31, 1995. These volume
decreases were primarily due to the normal decline in production
from diminished oil and natural gas reserves. Average natural
gas prices increased to $1.61 per Mcf for the three months ended
March 31, 1996 from $1.23 per Mcf for the three months ended
March 31, 1995, while the average price of oil sold decreased to
$17.01 per barrel for the three months ended March 31, 1996 from
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$18.07 per barrel for the three months ended March 31, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $51,665 for the three
months ended March 31, 1996 as compared to the three months ended
March 31, 1995. This decrease resulted primarily from workovers
on several wells during the three months ended March 31, 1995 and
compression expenses on another well during the three months
ended March 31, 1995. As a percentage of oil and gas sales,
these expenses decreased to 18.8% for the three months ended
March 31, 1996 from 47.3% for the three months ended March 31,
1995. This percentage decrease was primarily a result of the
dollar decrease in production expenses as discussed above and the
increase in the average price of natural gas sold during the
three months ended March 31, 1996 as compared to the three months
ended March 31, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $3,669 for the three months ended March 31,
1996 as compared to the three months ended March 31, 1995. This
decrease was primarily the result of the decreases in the volumes
of oil and natural gas sold during the three months ended March
31, 1996 as compared to the three months ended March 31, 1995 and
an upward revision in the estimate of the 1983-1 Program's
remaining natural gas reserves at December 31, 1995. As a
percentage of oil and gas sales, this expense decreased to 20.7%
for the three months ended March 31, 1996 from 27.1% for the
three months ended March 31, 1995. This percentage decrease was
primarily due to the increase in the average price of natural gas
sold during the three months ended March 31, 1996 as compared to
the three months ended March 31, 1995.
General and administrative expenses decreased slightly during the
three months ended March 31, 1996 as compared to the three months
ended March 31, 1995. As a percentage of oil and gas sales,
these expenses decreased to 10.6% for the three months ended
March 31, 1996 from 13.1% for the three months ended March 31,
1995. This percentage decrease was primarily the result of the
increase in the average price of natural gas sold during the
three months ended March 31, 1996 as compared to the three months
ended March 31, 1995.
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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 Program's
financial statements as of March 31, 1996 and for
the three months ended March 31, 1996, filed
herewith.
(b) Reports on Form 8-K
None
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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 1983-1 LIMITED
PARTNERSHIP
(Registrant)
By: DYCO PETROLEUM CORPORATION
General Partner
Date: May 9, 1996 By: /s/Dennis R. Neill
--------------------------
(Signature)
Dennis R. Neill
Senior Vice President
Date: May 9, 1996 By: /s/Patrick M. Hall
-------------------------
(Signature)
Patrick M. Hall
Senior Vice President - Controller
Principal Accounting Officer
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INDEX TO EXHIBITS
-----------------
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Dyco Oil and Gas Program
1983-1 Limited Partnership's financial statements as of
March 31, 1996 and for the three months ended March 31,
1996, filed herewith.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000719958
<NAME> DYCO OIL AND GAS PROGRAM 1983-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 119,214
<SECURITIES> 0
<RECEIVABLES> 130,218
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 249,432
<PP&E> 35,449,642
<DEPRECIATION> 34,682,336
<TOTAL-ASSETS> 1,082,702
<CURRENT-LIABILITIES> 99,587
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 801,433
<TOTAL-LIABILITY-AND-EQUITY> 1,082,702
<SALES> 260,469
<TOTAL-REVENUES> 262,539
<CGS> 0
<TOTAL-COSTS> 130,185
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 132,354
<INCOME-TAX> 0
<INCOME-CONTINUING> 132,354
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 132,354
<EPS-PRIMARY> 17.00
<EPS-DILUTED> 0
</TABLE>
