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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 September 30, 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 (IRS 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 10
<PAGE>
<TABLE>
<CAPTION>
MAY DRILLING PARTNERSHIP 1983-1
BALANCE SHEETS
(Unaudited)
(In thousands)
September 30, December 31,
1997 1996
ASSETS
Investment in
<S> <C> <C>
May Limited Partnership 1983-1 $166 $179
==== ===
PARTNERS' CAPITAL
Partners' Capital $166 $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>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-1
BALANCE SHEETS
(Unaudited)
(In thousands)
September 30, December 31,
1997 1996
----- ----
ASSETS
CURRENT ASSETS
<S> <C> <C>
Cash and cash equivalents $ 116 $ 115
Accrued oil and gas sales 48 59
Due from affiliate 12
--- ---
Total 176 174
--- ---
OIL AND GAS PROPERTIES, using the full
cost method of accounting 7,317 7,302
Less accumulated depletion (7,091) (7,063)
------ ------
Net oil and gas properties 226 239
------ ------
TOTAL ASSETS $ 402 $ 413
========= =======
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 17 $ 17
Due to affiliate 5
--------- ------
Total 17 22
-------- ------
PARTNERS' CAPITAL
General partner 219 212
Limited partner 166 179
--- ---
Total 385 391
--- ---
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 402 $ 413
======== =======
<FN>
The accompanying note is an integral part
of the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-1
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Three Months Ended September 30,
1997 1996
----- ----
REVENUES
<S> <C> <C>
Oil revenue $ 9 $ 9
Gas revenue 64 66
Interest 75 1
---- ---
Total 76 76
---- ---
COSTS AND EXPENSES
Lease operating 7 11
General and administrative 16 10
Depletion 11 10
Professional services and other 4 2
Litigation settlement 3
---- ----
Total 41 33
----- ----
NET INCOME $ 34 $ 43
======== =====
ALLOCATION OF NET INCOME:
General Partner $ 17 $ 20
======== ========
Limited Partner $ 17 $ 23
======== ========
Per initial $1,000 limited
partner investment unit $ 3.61 $ 4.88
======== =======
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>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-1
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Nine Months Ended September 30,
1997 1996
----- ----
REVENUES
<S> <C> <C>
Oil revenue $ 23 $ 29
Gas revenue 174 233
Interest 5 3
------- --------
Total 202 265
---- ---
COSTS AND EXPENSES
Lease operating 21 31
General and administrative 46 48
Depletion 28 33
Professional services and other 10 6
Litigation settlement 3 1
------ --------
Total 108 119
---- ---
NET INCOME $ 94 $ 146
======== =======
ALLOCATION OF NET INCOME:
General Partner $ 49 $ 71
======== ========
Limited Partner $ 45 $ 75
======== ========
Per initial $1,000 limited
partner investment unit $ 9.55 $ 15.91
====== ======
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>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-1
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
For the Nine Months Ended September 30,
1997 1996
----- ----
OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 94 $ 146
Adjustment to reconcile net income to net cash provided by operating
activities:
Depletion 28 33
--- --
Cash from operations before working
capital changes 122 179
Changes in assets and liabilities provided (used) cash:
Accrued oil and gas sales 11 14
Due from affiliate (12) (19)
Accounts payable and accrued liabilities (1)
Payable to affiliate (5)
------- ----
Net cash provided by operating activities 116 173
------ ------
INVESTING ACTIVITIES:
Additions to oil and gas properties (15) (8)
----- -----
FINANCING ACTIVITIES:
Distributions to partners (100) (101)
---- ----
NET INCREASE IN CASH AND CASH
EQUIVALENTS 1 64
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 115 115
--- ---
Balance, end of period $ 116 $ 179
====== ======
<FN>
The accompanying note is an integral part
of the financial statements.
</FN>
</TABLE>
<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 $116,000 of cash flow from operating activities during
the nine months ended September 30, 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
Third Quarter 1997 Compared to Third Quarter 1996
Oil Revenue
Oil revenue remained constant during the third quarter of 1997 as compared with
the same period during 1996. Oil production increased 11%, and the average oil
price decreased from $23.78 per barrel in 1996 to $19.29 per barrel in 1997. The
increase in production is due to workover procedures performed during the second
quarter of 1997.
Gas Revenue
Gas revenue decreased $2,000 during the third quarter of 1997 as compared to the
corresponding period in 1996, as the result of a decrease in price, partially
offset by an increase in production. Gas production increased 7% due to workover
procedures performed during the second quarter of 1997. The average gas price
decreased from $2.64 per mcf in 1996 to $2.44 per mcf in 1997.
Interest
Interest income increased $1,000 during the third quarter of 1997 as compared
with the third quarter of 1996 due to a higher average cash balance during 1997.
Lease Operating
Lease operating expense decreased $4,000 during the third quarter of 1997 as
compared with the third quarter of 1996 primarily due to a reduction in
maintenance activity.
<PAGE>
General and Administrative
General and administrative expenses increased $6,000 during the third quarter of
1997 as compared with the same period in 1996 due to the timing of these
expenses.
Depletion
Depletion expense increased $1,000 during the third quarter of 1997 as compared
to the corresponding period in 1996 as a result of a higher depletion rate
during 1997 resulting from the increase in oil and gas production discussed
above.
Professional Services and Other
Professional services and other expense increased $2,000 during the third
quarter of 1997 as compared with the third quarter of 1996. The increase is
comprised of an increase in legal fees relating to settlement of property
related claims and an increase in miscellaneous other expenses, none of which
are individually significant.
Litigation Settlement
Litigation settlement expense during the third quarter of 1997 represents the
expense associated with the settlement of property related claims.
Nine Months Ended September 30, 1997 Compared to the Nine Months Ended
September 30, 1996
The comparisons for the nine months ended September 30, 1997 and the nine months
ended September 30, 1996 are consistent with those discussed in the third
quarter 1997 compared to the third quarter of 1996 except for the following:
Oil Revenue
Oil revenue decreased $6,000 during the first nine months of 1997 as compared to
the corresponding period in 1996 due to a decrease in production and a decrease
in the average oil price. The average oil price decreased from $21.07 per barrel
in 1996 to $20.51 per barrel in 1997. Oil production decreased 19% primarily due
to the temporary shut-in of two wells during May and June of 1997 while workover
procedures were performed.
Gas Revenue
Gas revenue decreased $59,000 during the first nine months of 1997 as compared
to the corresponding period in 1996 as the result of a decrease in production
and a decrease in price. Gas production decreased 18% primarily due to the
temporary shut-in of two wells during May and June of 1997 while workover
procedures were performed. The average gas price decreased from $2.86 per mcf in
1996 to $2.63 per mcf in 1997.
General and Administrative
General and administrative expenses decreased $2,000 during the first mine
months of 1997 as compared with the same period during 1996 due to a decrease in
the allocation of overhead from the general partner.
Depletion
Depletion expense decreased $5,000 during the first nine months of 1997 as
compared to the corresponding period in 1996 due to a lower depletion rate
resulting from the decrease in oil and gas production previously discussed.
<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.
<PAGE>
-10-
Document: P:\DOC\83-1MQ.DOC
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: November 4, 1997 By: Robert S. Pfeiffer
Robert S. Pfeiffer, Vice President
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Form 10-Q
for the quarter ended September 30, 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> 9-mos
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-END> Sep-30-1997
<CASH> 116
<SECURITIES> 0
<RECEIVABLES> 60
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 176
<PP&E> 7,317
<DEPRECIATION> 7,091
<TOTAL-ASSETS> 402
<CURRENT-LIABILITIES> 17
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 402
<SALES> 197
<TOTAL-REVENUES> 202
<CGS> 0
<TOTAL-COSTS> 108
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 94
<INCOME-TAX> 0
<INCOME-CONTINUING> 94
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 94
<EPS-PRIMARY> 9.55
<EPS-DILUTED> 9.55
</TABLE>
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