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Previous: EXECUTONE INFORMATION SYSTEMS INC, 10-Q, 1998-08-14 |
Next: HUTTON GSH COMMERCIAL PROPERTIES 3, 10-Q, 1998-08-14 |
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 June 30, 1998
[ ] 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 10
<PAGE>
<TABLE>
<CAPTION>
MAY DRILLING PARTNERSHIP 1983-1
BALANCE SHEETS
(Unaudited)
(In thousands)
June 30, December 31,
1998 1997
ASSETS
<S> <C> <C>
Investment in May Limited Partnership 1983-1 $ 175 $ 189
==== ====
PARTNERS' CAPITAL
Partners' Capital $ 175 $ 189
==== ====
<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>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-1
BALANCE SHEETS
(Unaudited)
(In thousands)
June 30, December 31,
1998 1997
ASSETS
CURRENT ASSETS
<S> <C> <C>
Cash and cash equivalents $ 165 $ 163
Accrued oil and gas sales 48 51
Due from affiliate 19 20
------- ------
Total 232 234
------ ------
OIL AND GAS PROPERTIES, using the
full cost method of accounting 7,323 7,315
Less accumulated depletion (7,125) (7,100)
----- -----
Net oil and gas properties 198 215
------ ------
TOTAL ASSETS $ 430 $ 449
====== ======
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 12 $ 20
------ ------
PARTNERS' CAPITAL
General partner 243 240
Limited partner 175 189
------ ------
Total 418 429
------ ------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 430 $ 449
====== ======
<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 June 30,
1998 1997
REVENUES
<S> <C> <C>
Gas revenue $ 72 $ 41
Oil revenue 6 6
Interest 2 2
-------- --------
Total 80 49
------- -------
COSTS AND EXPENSES
Lease operating 11 6
General and administrative 15 15
Depletion 14 8
Professional services and other 1 2
-------- --------
Total 41 31
------- -------
NET INCOME $ 39 $ 18
======= =======
ALLOCATION OF NET INCOME:
General Partner $ 20 $ 9
====== =======
Limited Partner $ 19 $ 9
====== =======
Per initial $1,000 limited partner
investment $ 4.03 $ 1.91
====== ======
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 OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Six Months Ended June 30,
1998 1997
REVENUES
<S> <C> <C>
Gas revenue $ 135 $ 110
Oil revenue 12 14
Interest 4 3
-------- ---------
Total 151 127
------ -------
COSTS AND EXPENSES
Lease operating 20 14
General and administrative 30 30
Depletion 25 17
Professional services and other 4 6
-------- --------
Total 79 67
------- -------
NET INCOME $ 72 $ 60
======= =======
ALLOCATION OF NET INCOME:
General Partner $ 38 $ 32
======= =======
Limited Partner $ 34 $ 28
======= =======
Per initial $1,000 limited partner
investment $ 7.21 $ 5.94
====== ======
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 Six Months Ended June 30,
1998 1997
OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 72 $ 60
Adjustment to reconcile net income to
net cash provided by operating activities:
Depletion 25 17
Changes in assets and liabilities provided (used) cash:
Accrued oil and gas sales 3 28
Due from affiliate 1 (6)
Accounts payable and accrued liabilities (8) (7)
Due to affiliate (5)
--------- --------
Net cash provided by operating activities 93 87
------- -------
INVESTING ACTIVITIES -
Additions to oil and gas properties (8) (11)
------- -------
FINANCING ACTIVITIES -
Distributions to partners (83)
NET INCREASE IN CASH AND CASH
EQUIVALENTS 2 76
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 163 115
------ ------
Balance, end of period $ 165 $ 191
====== ======
</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, 1997 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 $93,000 of cash flow from operating activities during
the six months ended June 30, 1998 and distributed $83,000 to partners. A
distribution payable to partners of record as of June 30, 1998 was declared in
July 1998. The distribution amount is $85,000 payable $48,960 to May Drilling
Partnership 1983-1 partners and $36,040 to the general partner. 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
Second Quarter 1998 Compared to Second Quarter 1997
Gas Revenue
Gas revenue increased $31,000 during the second quarter of 1998 as compared to
the second quarter of 1997 as a result of an increase in price and an increase
in production. The average gas price increased from $2.26 per mcf in 1997 to
$2.47 per mcf in 1998. Gas production increased 62% because two temporarily
shut-in wells were back on line. The two wells were temporarily shut-in while
workover procedures were performed during the second quarter of 1997.
Oil Revenue
Oil revenue remained constant during the second quarter of 1998 as compared to
the second quarter of 1997. The average oil price decreased from $19.78 per
barrel in 1997 to $13.14 per barrel in 1998. The price decline was offset by a
56% increase in production because two temporarily shut-in wells were back on
line. The two wells were temporarily shut-in while workover procedures were
performed during the second quarter of 1997.
Lease Operating
Lease operating expense increased $5,000 during the second quarter of 1998 as
compared to the second quarter of 1997 primarily due to increased production
taxes related to the increased oil and gas production discussed above.
Depletion
Depletion expense increased $6,000 during the second quarter of 1998 as compared
to the second quarter of 1997 as a result of a higher depletion rate during 1998
resulting from the increase in oil and gas production discussed above.
<PAGE>
Professional Services and Other
Professional services and other expense decreased $1,000 during the second
quarter of 1998 as compared to the second quarter of 1997. The decrease is
comprised of a net decrease in miscellaneous other expenses, none of which are
individually significant.
Six Months Ended June 30, 1998 Compared to the Six Months Ended June 30, 1997
The comparisons for the six months ended June 30, 1998 and the six months ended
June 30, 1997 are consistent with those discussed in the second quarter 1998
compared to the second quarter of 1997 except for the following:
Gas Revenue
Gas revenue increased $25,000 during the first six months of 1998 as compared to
the corresponding period in 1997 primarily as the result of an increase in
production which was partially offset by a decrease in price. Gas production
increased 39% because two temporarily shut-in wells were back on line. The two
wells were temporarily shut-in while workover procedures were performed during
the second quarter of 1997. The average gas price decreased from $2.76 per mcf
in 1997 to $2.45 per mcf in 1998.
Oil Revenue
Oil revenue decreased $2,000 during the first six months of 1998 as compared to
the corresponding period in 1997 primarily due to a decrease in the average oil
price, partially offset by an increase in production. The average oil price
decreased from $21.34 per barrel in 1997 to $14.54 per barrel in 1998. Oil
production increased 29% because two temporarily shut-in wells were back on
line. The two wells were temporarily shut-in while workover procedures were
performed during the second quarter of 1997.
Interest
Interest income increased $1,000 during the first six months of 1998 compared to
the first six months of 1997 due to a higher average cash balance during 1998.
<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, 1997.
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>
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: August 10, 1998 By: /s/Thomas J. Jung
Thomas J. Jung, 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 June 30, 1998 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> Jun-30-1998
<CASH> 165
<SECURITIES> 0
<RECEIVABLES> 67
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 232
<PP&E> 7,323
<DEPRECIATION> 7,125
<TOTAL-ASSETS> 430
<CURRENT-LIABILITIES> 12
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 418
<TOTAL-LIABILITY-AND-EQUITY> 430
<SALES> 147
<TOTAL-REVENUES> 151
<CGS> 0
<TOTAL-COSTS> 79
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 72
<INCOME-TAX> 0
<INCOME-CONTINUING> 72
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 72
<EPS-PRIMARY> 7.21
<EPS-DILUTED> 7.21
</TABLE>
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