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, 1995
--- TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 2-89194
-----------------------
MAY DRILLING PARTNERSHIP 1984-1
MAY LIMITED PARTNERSHIP 1984-1
(Exact name of registrant as specified in its charter)
------------------------
TEXAS 75-1973664
(State or other jurisdiction of 75-1973661
incorporation or organization) (I.R.S. Employer
Identification Number)
4582 SOUTH ULSTER STREET PARKWAY
SUITE 1700
DENVER, COLORADO 80237
(Address of principal executive (Zip Code)
offices)
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 ___
MAY DRILLING PARTNERSHIP 1984-1
BALANCE SHEETS
(In thousands)
September 30, December 31,
1995 1994
--------- ---------
(Unaudited)
ASSETS
Investment in
May Limited Partnership 1984-1 $170 $180
=== ===
PARTNERS' CAPITAL
Partners' Capital $170 $180
=== ===
NOTE: The statements of operations and cash flows for May Drilling
Partnership 1984-1 are not presented because such information is
equal to the limited partner's share of such activity as presented
in the May Limited Partnership 1984-1 financial statements. The
May Drilling Partnership carries its investment in May Limited
Partnership 1984-1 on the equity method. The May Limited
Partnership 1984-1 financial statements should be read in
conjunction with these balance sheets.
MAY LIMITED PARTNERSHIP 1984-1
BALANCE SHEETS
(In thousands)
September 30, December 31,
1995 1994
--------- ---------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 230 $ 217
Accrued oil and gas sales 112 134
Due from affiliate 50 55
------- -------
Total 392 406
------- -------
OIL AND GAS PROPERTIES, using the
full cost method of accounting 8,057 8,056
Less - Accumulated depletion (8,057) (8,056)
------- -------
Net oil and gas properties - -
-------- --------
TOTAL ASSETS $ 392 $ 406
======= =======
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable and accrued
liabilities $ 10 $ 12
------- -------
Total 10 12
------- -------
PARTNERS' CAPITAL
General Partner 212 214
Limited Partner 170 180
------- -------
Total 382 394
------- -------
TOTAL LIABILITIES AND PARTNERS'
CAPITAL $ 392 $ 406
======= =======
MAY LIMITED PARTNERSHIP 1984-1
STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Three Months Ended
--------------------------
September 30, September 30,
1995 1994
--------- ---------
REVENUES
Oil revenue $ 89 $ 95
Gas revenue 103 117
Interest income 2 2
--------
Total 194 214
------- -------
COSTS AND EXPENSES
Lease operating 4 5
Production taxes 16 17
General and administrative 10 10
Professional services and other 2 2
-------- --------
Total 32 34
------- -------
NET INCOME $ 162 $ 180
======= =======
ALLOCATION OF NET INCOME:
General Partner $ 60 $ 66
======= =======
Limited Partner $ 102 $ 114
======= =======
Per initial $1,000 limited partner
investment $ 18.99 $ 21.22
======= =======
Weighted average initial $1,000
limited partner investment units
outstanding 5,371 5,371
======= =======
MAY LIMITED PARTNERSHIP 1984-1
STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Nine Months Ended
-------------------------
September 30, September 30,
1995 1994
--------- ---------
REVENUES
Oil revenue $ 253 $ 277
Gas revenue 281 454
Interest income 8 5
-------- --------
Total 542 736
------- -------
COSTS AND EXPENSES
Lease operating 14 12
Production taxes 43 47
General and administrative 32 31
Depletion 1
Professional services and other 7 9
-------- --------
Total 97 99
------- -------
NET INCOME $ 445 $ 637
======= =======
ALLOCATION OF NET INCOME:
General Partner $ 167 $ 236
======= =======
Limited Partner $ 278 $ 401
======= =======
Per initial $1,000 limited partner
investment $ 51.76 $ 74.66
======= =======
Weighted average initial $1,000
limited partner investment units
outstanding 5,371 5,371
======= =======
MAY LIMITED PARTNERSHIP 1984-1
STATEMENTS OF CASH FLOW
(Unaudited)
(In thousands)
For the Nine Months Ended
-------------------------
September 30, September 30,
1995 1994
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 445 $ 637
Adjustment to reconcile net income
to net cash provided by operating
activities:
Depletion 1 -
-------- --------
Cash from operations before working
capital changes 446 637
Changes in assets and
liabilities provided (used) cash:
Accrued oil and gas sales 22 83
Due from affiliate 5 (34)
Accounts payable and accrued
liabilities (2) (2)
------- -------
Net cash provided by operating 471 684
activities ------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties (1) -
------- -------
Net cash used in investing activities (1) -
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (457) (684)
------- -------
Net cash used in financing activities (457) (684)
------- -------
Net increase in cash and cash
equivalents 13 -
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 217 186
------- -------
Balance, end of period $ 230 $ 186
======= =======
The accompanying notes are an integral part
of the financial statements.
MAY LIMITED PARTNERSHIP 1984-1
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - GENERAL
The financial statements presented are those of May Limited Partnership 1984-1
(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, 1994 Annual Report on Form 10-K.
NOTE 2 - LEGAL PROCEEDING
In October 1995, the parties agreed in principle to settle the lawsuit styled
Stutes v. Hallwood Petroleum, Inc. et al. The plaintiff in the lawsuit alleged
that as a result of exposure to benzene in the petroleum he was hauling from
various wells owned and operated by the Partnership and approximately 80 other
named defendants, he contracted myelogenous leukemia. The majority of the
Partnership's share of the settlement liability is covered by the Partnership's
liability insurance carriers. The Partnership's share of the amounts not
covered by insurance has not yet been determined because of the complexity of
the allocation.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operating activities totaled $471,000 for the nine months ended
September 30, 1995 and $457,000 was distributed to partners. A distribution was
declared in October 1995. The distribution amount is $181,000, payable $114,000
to May Drilling Partnership 1984-1 partners and $67,000 to the general partner.
Future distributions are 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 1995 COMPARED TO THE THIRD QUARTER 1994
OIL REVENUES
Oil revenues decreased $6,000 during the third quarter of 1995 as compared to
the corresponding period in 1994 as the result of a decrease in production
combined with a decrease in the average oil price. Oil production decreased 3%
on the Freddie Aker #1 due to a decrease in the state allowable production
limits. The average oil price decreased from $17.56 per barrel in 1994 to
$17.01 per barrel in 1995.
GAS REVENUES
Gas revenues decreased $14,000 during the third quarter of 1995 as compared to
the corresponding period in 1994 due to a decrease in the average gas price
combined with a 2% decrease in production due to a decrease in the state
allowable production limits. The average gas price decreased from $1.97 per mcf
in 1994 to $1.77 per mcf in 1995.
LEASE OPERATING EXPENSE
Lease operating expense decreased $1,000 during the third quarter of 1995 as
compared to the corresponding period in 1994 due to increased maintenance costs
on the Freddie Aker #1.
PRODUCTION TAXES
Production taxes decreased $1,000 during the third quarter of 1995 as compared
to the corresponding period in 1994 due to decreased production.
NINE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER
30, 1995
The comparisons for the nine months ended September 30, 1995 and the nine months
ended September 30, 1994 are consistent with those discussed in the third
quarter 1995 compared to the third quarter 1994 except for the following:
OIL REVENUE
Oil revenue decreased $24,000 during the first nine months of 1995 as compared
with the same period in 1994 due to an 18% decrease in production due to lower
state allowable production limits and normal production declines, partially
offset by an increase in average oil prices. Average oil prices increased from
$15.99 per barrel during 1994 to $17.70 per barrel during 1995.
GAS REVENUE
Gas revenue decreased $173,000 during the first nine months of 1995 as compared
with the same period during 1994 due to a 20% decrease in production resulting
from lower state allowable production limits and normal production declines,
combined with a decrease in average gas prices. The average gas price decreased
from $2.38 per mcf in 1994 to $1.85 per mcf in 1995.
INTEREST INCOME
Interest income increased $3,000 during the first nine months of 1995 as
compared with the same period during 1994 as a result of higher interest rates.
GENERAL AND ADMINISTRATIVE
General and administrative expense increased $1,000 for the first nine months of
1995 as compared to the corresponding period in 1994 as a result of an increase
in the allocation of overhead from the general partner.
PROFESSIONAL SERVICES AND OTHER
Professional services and other expense decreased $2,000 during the first nine
months of 1995 as compared with the same period in 1994 due to the timing of
payments for professional services.
ITEM 1 - LEGAL PROCEEDINGS
Reference is made to Item 8 - Note 3 of Form 10-K for the year ended
December 31, 1994 and Item 1 - Note 2 of this Form 10-Q.
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.
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 1984-1
MAY LIMITED PARTNERSHIP 1984-1
BY: EDP OPERATING, LTD.,
GENERAL PARTNER
BY: HALLWOOD G. P., INC.,
GENERAL PARTNER
Date: November 2, 1995 By: /s/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 the
financial statements and is qualified in its entirety by reference to such Form
10-Q.
</LEGEND>
<CIK> 0000739645
<NAME> MAY DRILLING PARTNERSHIP 1984-1
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 230
<SECURITIES> 0
<RECEIVABLES> 162
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 392
<PP&E> 8,057
<DEPRECIATION> (8,057)
<TOTAL-ASSETS> 392
<CURRENT-LIABILITIES> 10
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 382
<TOTAL-LIABILITY-AND-EQUITY> 392
<SALES> 534
<TOTAL-REVENUES> 542
<CGS> 0
<TOTAL-COSTS> 97
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 445
<INCOME-TAX> 0
<INCOME-CONTINUING> 445
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 445
<EPS-PRIMARY> 51.76
<EPS-DILUTED> 0
</TABLE>
