<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
June 30, 1995 0-13578
DYCO OIL AND GAS PROGRAM 1984-2
(A LIMITED PARTNERSHIP)
(Exact Name of Registrant as specified in its charter)
Minnesota 41-1479080
(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 1984-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1995 1994
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 96,751 $ 32,766
Accrued oil and gas sales, including
$53,276 and $75,009 due from
related parties (Note 2) . . . . . . 54,352 76,540
-------- --------
Total current assets . . . . . . . $151,103 $109,306
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 729,299 775,763
DEFERRED CHARGE . . . . . . . . . . . . . 43,352 43,352
-------- --------
$923,754 $928,421
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 5,495 $ 5,357
Gas imbalance payable . . . . . . . . 8,943 8,943
-------- --------
Total current liabilities . . . . . $ 14,438 $ 14,300
ACCRUED LIABILITY . . . . . . . . . . . . 17,793 17,793
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
52 units . . . . . . . . . . . . . . 8,915 8,963
Limited Partners, issued and outstanding,
5,200 units . . . . . . . . . . . . 882,608 887,365
-------- --------
Total Partners' capital . . . . . . $891,523 $896,328
-------- --------
$923,754 $928,421
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1984-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
---------- ----------
REVENUES:
Oil and gas sales, including
$82,443 and $123,736 of sales
to related parties (Note 2) . . . . $85,969 $128,686
Interest . . . . . . . . . . . . . . . 977 474
------- --------
$86,946 $129,160
------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $21,884 $ 26,214
Depreciation, depletion, and amortization of
oil and gas properties . . . . . . . 42,333 57,981
General and administrative (Note 2) . 18,949 15,572
------- --------
$83,166 $ 99,767
------- --------
NET INCOME . . . . . . . . . . . . . . . $ 3,780 $ 29,393
======= ========
GENERAL PARTNER (1%) - net income . . . . $ 38 $ 294
======= ========
LIMITED PARTNERS (99%) - net income . . . $ 3,742 $ 29,099
======= ========
NET INCOME PER UNIT . . . . . . . . . . . $ 1 $ 6
======= ========
UNITS OUTSTANDING . . . . . . . . . . . . 5,252 5,252
======= ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1984-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
---------- ----------
REVENUES:
Oil and gas sales, including
$153,083 and $264,871 of sales
to related parties (Note 2) . . . . $158,447 $275,702
Interest . . . . . . . . . . . . . . . 1,645 976
-------- --------
$160,092 $276,678
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 49,601 $ 64,304
Depreciation, depletion, and amortization of
oil and gas properties . . . . . . . 75,454 109,687
General and administrative (Note 2) . 39,842 35,179
-------- --------
$164,897 $209,170
-------- --------
NET (LOSS) INCOME . . . . . . . . . . . . ($ 4,805) $ 67,508
======== ========
GENERAL PARTNER (1%) - net (loss) income ($ 48) $ 675
======== ========
LIMITED PARTNERS (99%) - net (loss) income ($ 4,757) $ 66,833
======== ========
NET (LOSS) INCOME PER UNIT . . . . . . . ($ 1) $ 13
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 5,252 5,252
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1984-2 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income . . . . . . . . . . ($ 4,805) $ 67,508
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation, depletion, and amortization of
oil and gas properties . . . . . . 75,454 109,687
Decrease in accrued oil and gas sales 22,188 19,528
Increase in accounts payable . . . . 138 958
------- --------
Net cash provided by operating
activities $92,975 $197,681
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . ($28,990) $ -
------- --------
Net cash used by investing activities ($28,990) $ -
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . $ - ($210,080)
------- --------
Net cash used by financing activities $ - ($210,080)
------- --------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . . $63,985 ($ 12,399)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 32,766 54,103
------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $96,751 $ 41,704
======= ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1984-2 LIMITED PARTNERSHIP
CONDENSED NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheet as of June 30, 1995, statements of operations
for the three and six months ended June 30, 1995 and 1994, and
statements of cash flows for the six months ended June 30, 1995
and 1994 have been prepared by Dyco Petroleum Corporation ("Dyco"),
the General Partner of the Dyco Oil and Gas Program 1984-2
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 June 30, 1995, results of operations for the three
and six months ended June 30, 1995 and 1994 and changes in
cash flows for the six months ended June 30, 1995 and 1994 have
been made.
Information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto
included in the Program's Annual Report on Form 10-K for the
year ended December 31, 1994. The results of operations for the
period ended June 30, 1995 are not necessarily indicative of the
results to be expected for the full year.
The limited partners' net income or loss per unit is based upon
each $5,000 initial capital contribution.
Oil and Gas Properties
----------------------
Oil and gas operations are accounted for using the full cost
method of accounting. All productive and non-productive costs
associated with the acquisition, exploration, and development of
oil and gas reserves are capitalized. Sales and abandonments of
properties are accounted for as adjustments of capitalized costs
with no gain or loss recognized, unless such adjustments would
significantly alter the relationship between capitalized costs
and proved oil and gas reserves.
The provision for depreciation, depletion, and amortization of
oil and gas properties is calculated by dividing the oil and gas
sales dollars during the year by the estimated future gross
income from 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 six months ended
June 30, 1995 and 1994 such expenses totaled $39,842 and
$35,179, respectively, of which $28,236 and $28,236 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 sells gas at market prices to Premier Gas Company
("Premier"), an affiliated company, and Premier may then resell
such gas to third parties at market prices. During the six
months ended June 30, 1995 and 1994 these sales totaled $153,083
and $264,871, respectively. At June 30, 1995 accrued oil and
gas sales included $53,276 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.
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 JUNE 30, 1995 AS COMPARED TO THE THREE
MONTHS ENDED JUNE 30, 1994.
Three months ended June 30,
---------------------------
1995 1994
---- ----
Oil and gas sales $85,969 $128,686
Oil and gas production expenses $21,884 $ 26,214
Barrels produced 104 285
Mcf produced 61,710 72,991
Average price/Bbl $ 17.73 $ 17.37
Average price/Mcf $ 1.36 $ 1.70
As shown in the table, oil and natural gas sales decreased
33.2% for the three months ended June 30, 1995 as compared
to the three months ended June 30, 1994. This decrease
resulted primarily from the decrease in the volumes of
natural gas sold and the decrease in the average price of
natural gas sold during the three months ended June 30, 1995
as compared to the three months ended June 30, 1994.
Volumes of oil and natural gas sold decreased 181 barrels
and 11,281 Mcf, respectively, for the three months ended
June 30, 1995 as compared to the three months ended June 30,
1994. The decrease in the volumes of oil and natural gas
sold was primarily a result of the normal decline in
production from diminished oil and natural gas reserves.
Average natural gas prices decreased to $1.36 per Mcf for
the three months ended June 30, 1995 from an average of
$1.70 per Mcf for the three months ended June 30, 1994,
while the average oil prices increased to $17.73 per barrel
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for the three months ended June 30, 1995 from an average of
$17.37 per barrel for the three months ended June 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $4,330 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. This decrease was primarily due
to the decrease in volumes of oil and natural gas sold
during the three months ended June 30, 1995 as compared to
the three months ended June 30, 1994. As a percentage of
oil and gas sales, these expenses increased to 25.5% for the
three months ended June 30, 1995 from 20.4% for the three
months ended June 30, 1994. This percentage increase was
primarily a result of the decrease in the average price of
natural gas sold during the three months ended June 30, 1995
as compared to the three months ended June 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased $15,648 for the three months ended June
30, 1995 as compared to the three months ended June 30,
1994. This decrease was primarily a result of the decrease
in volumes of oil and natural gas sold during the three
months ended June 30, 1995 as compared to the three months
ended June 30, 1994. As a percentage of oil and gas sales,
this expense increased to 49.2% for the three months ended
June 30, 1995 from 45.1% for the three months ended June 30,
1994. This percentage increase was primarily a result of
the decrease in the average price of natural gas sold during
the three months ended June 30, 1995 as compared to the
three months ended June 30, 1994.
General and administrative expenses increased $3,377 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. This increase resulted from the
increase in the Program's professional fees during the three
months ended June 30, 1995 as compared to the three months
ended June 30, 1994. As a percentage of oil and gas sales,
these expenses increased to 22.0% for the three months ended
June 30, 1995 from 12.1% for the three months ended June 30,
1994. This percentage increase was primarily a result of
the dollar increase in general and administrative expenses
as discussed above and the decrease in the average price of
natural gas sold during the three months ended June 30, 1995
as compared to the three months ended June 30, 1994.
SIX MONTHS ENDED JUNE 30, 1995 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1994.
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Six months ended June 30
------------------------
1995 1994
---- ----
Oil and gas sales $158,447 $275,702
Oil and gas production expenses $ 49,601 $ 64,304
Barrels produced 214 375
Mcf produced 119,302 150,596
Average price/Bbl $ 17.21 $ 16.55
Average price/Mcf $ 1.30 $ 1.79
As shown in the table, oil and natural gas sales decreased
42.5% for the six months ended June 30, 1995 as compared to
the six months ended June 30, 1994. This decrease resulted
primarily from the decrease in the volumes of natural gas
sold and the decrease in the average price of natural gas
sold during the six months ended June 30, 1995 as compared
to the six months ended June 30, 1994. Volumes of oil and
natural gas sold decreased 161 barrels and 31,294 Mcf,
respectively, for the six months ended June 30, 1995 as
compared to the six months ended June 30, 1994. The
decrease in volumes of natural gas sold was primarily a
result of (i) a change in the ownership interest for distribut-
ing revenues of one of the Program's wells after such well
reached payout subsequent to the six months ended June 30, 1994,
(ii) gas balancing adjustments on another well during the
six months ended June 30, 1995 in which the Program was
produced in excess of reserves and (iii) the normal decline
in production from diminished oil and natural gas reserves.
Average natural gas prices decreased to $1.30 per Mcf for
the six months ended June 30, 1995 from an average of $1.79
per Mcf for the six months ended June 30, 1994, while the
average price of oil increased to $17.21 per barrel for the
six months ended June 30, 1995 from an average of $16.55 per
barrel for the six months ended June 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $14,703 for the six
months ended June 30, 1995 as compared to the six months
ended June 30, 1994. This decrease was primarily due to the
decrease in the volumes of oil and natural gas sold during
the six months ended June 30, 1995 as compared to the six
months ended June 30, 1994. As a percentage of oil and gas
sales, these expenses increased to 31.3% for the six months
ended June 30, 1995 from 23.3% for the six months ended June
30, 1994. This percentage increase was primarily a result
of the decrease in the average price of natural gas sold
during the six months ended June 30, 1995 as compared to the
six months ended June 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased $34,233 for the six months ended June
30, 1995 as compared to the six months ended June 30, 1994.
This decrease was primarily a result of the decrease in
volumes of oil and natural gas sold during the six months
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ended June 30, 1995 as compared to the six months ended June
30, 1994. As a percentage of oil and gas sales, this expense
increased to 47.6% for the six months ended June 30,
1995 from 39.8% for the six months ended June 30, 1994.
This percentage increase was primarily a result of the
decrease in the average price of natural gas sold during the
six months ended June 30, 1995 as compared to the six months
ended June 30, 1994.
General and administrative expenses increased $4,663 for the
six months ended June 30, 1995 as compared to the six months
ended June 30, 1994. This increase resulted primarily from
an increase in the Program's professional fees during the
six months ended June 30, 1995 as compared to the six months
ended June 30, 1994. As a percentage of oil and gas sales,
these expenses increased to 25.1% for the six months ended
June 30, 1995 from 12.6% for the six months ended June 30,
1994. This percentage increase was primarily a result of
the dollar increase in general and administrative expenses
as discussed above and the decrease in the average price of
natural gas sold during the six months ended June 30, 1995
as compared to the six months ended June 30, 1994.
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PART II: OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None
(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 1984-2 LIMITED PARTNERSHIP
(Registrant)
By: DYCO PETROLEUM CORPORATION
General Partner
Date: August 10, 1995 By: /s/Dennis R. Neill
------------------------------
(Signature)
Dennis R. Neill
Senior Vice President
Date: August 10, 1995 By: /s/Patrick M. Hall
------------------------------
(Signature)
Patrick M. Hall
Senior Vice President - Controller
Principal Accounting Officer
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<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000725262
<NAME> DYCO OIL AND GAS PROGRAM 1984-2 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 96,751
<SECURITIES> 0
<RECEIVABLES> 54,352
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 151,103
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 923,754
<CURRENT-LIABILITIES> 14,438
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 891,523
<TOTAL-LIABILITY-AND-EQUITY> 923,754
<SALES> 158,447
<TOTAL-REVENUES> 160,092
<CGS> 0
<TOTAL-COSTS> 164,897
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (4,805)
<INCOME-TAX> 0
<INCOME-CONTINUING> (4,805)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,805)
<EPS-PRIMARY> (1.00)
<EPS-DILUTED> 0
</TABLE>
