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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
MARK ONE
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 1997
|_| TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-11311
MAY DRILLING PARTNERSHIP 1983-1
MAY LIMITED PARTNERSHIP 1983-1
(Exact name of registrant as specified in its charter)
75-1896224
Texas 75-1896223
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
4582 South Ulster Street Parkway
Suite 1700
Denver, Colorado 80237
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 850-7373
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 |_|
Page 1 of 9
<PAGE>
<TABLE>
<CAPTION>
MAY DRILLING PARTNERSHIP 1983-1
BALANCE SHEETS
(Unaudited)
(In thousands)
March 31, December 31,
1997 1996
ASSETS
Investment in
<S> <C> <C>
May Limited Partnership 1983-1 $198 $179
=== ===
PARTNERS' CAPITAL
Partners' Capital $198 $179
=== ===
<FN>
NOTE: The statements of operations and cash flows for May Drilling
Partnership 1983-1 are not presented because such information is equal
to the limited partner's share of such activity as presented in the May
Limited Partnership 1983-1 financial statements. The May Drilling
Partnership carries its investment in May Limited Partnership 1983-1 on
the equity method. The May Limited Partnership 1983-1 financial
statements should be read in conjunction with these balance sheets.
</FN>
<FN>
The accompanying note is an integral part
of the financial statements.
</FN>
</TABLE>
-2-
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-1
BALANCE SHEETS
(Unaudited)
(In thousands)
March 31, December 31,
1997 1996
ASSETS
CURRENT ASSETS
<S> <C> <C>
Cash and cash equivalents $ 139 $ 115
Accrued oil and gas sales 39 59
Due from affiliate 27
--------
Total 205 174
------- -------
OIL AND GAS PROPERTIES, using the
full cost method of accounting 7,311 7,302
Less accumulated depletion (7,072) (7,063)
------ ------
Net oil and gas properties 239 239
------- -------
TOTAL ASSETS $ 444 $ 413
======= =======
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 11 $ 17
Due to affiliate 5
---------- ---------
Total 11 22
-------- --------
PARTNERS' CAPITAL
General partner 235 212
Limited partner 198 179
------- -------
Total 433 391
------- -------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 444 $ 413
======= =======
<FN>
The accompanying note is an integral part
of the financial statements.
</FN>
</TABLE>
-3-
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-1
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Three Months Ended March 31,
1997 1996
REVENUES
<S> <C> <C>
Oil revenue $ 8 $ 9
Gas revenue 69 91
Interest income 1 1
--------- ---------
Total 78 101
-------- -------
COSTS AND EXPENSES
Lease operating 8 10
General and administrative 15 19
Depletion 9 11
Professional services and other 4 2
--------- ---------
Total 36 42
-------- --------
NET INCOME $ 42 $ 59
======== ========
ALLOCATION OF NET INCOME:
General Partner $ 23 $ 27
======== ========
Limited Partner $ 19 $ 32
======== ========
Per initial $1,000 limited
partner investment $ 4.03 $ 6.79
======== =======
Weighted average initial $1,000 limited
partner investment units outstanding 4,713 4,713
====== ======
<FN>
The accompanying note is an integral part
of the financial statements.
</FN>
</TABLE>
-4-
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-1
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
For the Three Months Ended March 31,
1997 1996
OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 42 $ 59
Adjustment to reconcile net income to net
cash provided by operating activities:
Depletion 9 11
--------- --------
Cash from operations before working
capital changes 51 70
Changes in assets and liabilities provided (used) cash:
Accrued oil and gas sales 20 (10)
Due from affiliate (27) (16)
Accounts payable and accrued liabilities (6) (4)
Payable to affiliate (5)
---------
Net cash provided by operating activities 33 40
-------- --------
INVESTING ACTIVITIES:
Additions to oil and gas properties (9)
---------
NET INCREASE IN CASH AND CASH
EQUIVALENTS 24 40
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 115 115
------- -------
Balance, end of period $ 139 $ 155
======= =======
<FN>
The accompanying note is an integral part
of the financial statements.
</FN>
</TABLE>
-5-
<PAGE>
MAY LIMITED PARTNERSHIP 1983-1
NOTE TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - GENERAL
The financial statements presented are those of May Limited Partnership 1983-1
(the "Partnership"). The interim financial data are unaudited; however, in the
opinion of the general partner, the interim data include all adjustments,
consisting only of normal recurring adjustments, necessary for a fair
presentation of the results for the interim periods. These financial statements
should be read in conjunction with the financial statements and notes thereto
included in the Partnership's December 31, 1996 Annual Report on Form 10-K.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
Liquidity and Capital Resources
The Partnership generated $33,000 of cash flow from operating activities during
the three months ended March 31, 1997. The ability of the Partnership to make
future distributions is dependent on future prices for the Partnership's
production and the production level of the Partnership's remaining oil and gas
reserves.
Results of Operations
First Quarter 1997 Compared to First Quarter 1996
Oil Revenue
Oil revenue decreased $1,000 during the first quarter of 1997 as compared with
the same period during 1996 primarily due to a decrease in production, partially
offset by an increase in the average oil price. The average oil price increased
from $19.03 per barrel in 1996 to $22.56 per barrel in 1997. Oil production
decreased 23% primarily due to lower state allowable production limits as well
as normal production declines.
Gas Revenue
Gas revenue decreased $22,000 during the first quarter of 1997 as compared to
the corresponding period in 1996 primarily as the result of a decrease in
production combined with a decrease in price. Gas production decreased 22%
primarily due to lower state allowable production limits as well as normal
production declines. The average gas price decreased from $3.28 per mcf in 1996
to $3.19 per mcf in 1997.
Lease Operating
Lease operating expense decreased $2,000 during the first quarter of 1997 as
compared with the first quarter of 1996 primarily due to lower production taxes
resulting from the decrease in oil and gas revenue discussed above.
General and Administrative
General and administrative expenses decreased $4,000 during the first quarter of
1997 as compared with the same period in 1996 due to a decrease in the
allocation of overhead from the general partner.
-6-
<PAGE>
Depletion
Depletion expense decreased $2,000 during the first quarter of 1997 as compared
to the corresponding period in 1996 as a result of a lower depletion rate during
1997 resulting from the decrease in oil and gas production discussed above.
Professional Services and Other
Professional services and other expense increased $2,000 during the first
quarter of 1997 as compared with the first quarter of 1996. The increase is
primarily due to the timing of these expenses.
-7-
<PAGE>
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
Reference is made to Item 8 - Note 4 of Form 10-K for the year
ended December 31, 1996.
ITEM 2 - CHANGES IN SECURITIES
None.
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
---------------------------------------------------
None.
ITEM 5 - OTHER INFORMATION
None.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
None.
-8-
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Partnerships have duly caused this report to be signed on their behalf by the
undersigned, thereunto duly authorized.
MAY DRILLING PARTNERSHIP 1983-1
MAY LIMITED PARTNERSHIP 1983-1
By: EDP OPERATING, LTD.,
General Partner
By: HEPGP Ltd.,
General Partner
By: HALLWOOD G. P., INC.,
General Partner
Date: April 30, 1997 By: /s/Robert S. Pfeiffer
------------------------- --------------------------
Robert S. Pfeiffer, Vice President
(Principal Accounting Officer)
Document: P:\DOC\83-1MQ.DOC
-9-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Form 10-Q
for the quarter ended March 31, 1997 for May Limited Partnership 1983-1 and is
qualified in its entirety by reference to such Form 10-Q.
</LEGEND>
<CIK> 0000725650
<NAME> May Limited Partnership 1983-1
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-END> Mar-31-1997
<CASH> 139
<SECURITIES> 0
<RECEIVABLES> 66
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 205
<PP&E> 7,311
<DEPRECIATION> 7,072
<TOTAL-ASSETS> 444
<CURRENT-LIABILITIES> 11
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 433
<TOTAL-LIABILITY-AND-EQUITY> 444
<SALES> 77
<TOTAL-REVENUES> 78
<CGS> 0
<TOTAL-COSTS> 36
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 42
<INCOME-TAX> 0
<INCOME-CONTINUING> 42
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 42
<EPS-PRIMARY> 4.03
<EPS-DILUTED> 4.03
</TABLE>
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