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 2-89194
MAY DRILLING PARTNERSHIP 1984-1
MAY LIMITED PARTNERSHIP 1984-1
(Exact name of registrant as specified in its charter)
75-1973664
Texas 75-1973661
(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 1984-1
BALANCE SHEETS
(Unaudited)
(In thousands)
June 30, December 31,
1998 1997
ASSETS
<S> <C> <C>
Investment in May Limited Partnership 1984-1 $ 77 $ 188
PARTNERS' CAPITAL
Partners' Capital $ 77 $ 188
<FN>
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.
</FN>
<FN>
The accompanying note is an integral part of the financial
statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-1
BALANCE SHEETS
(Unaudited)
(In thousands)
June 30, December 31,
1998 1997
ASSETS
CURRENT ASSETS
<S> <C> <C>
Cash and cash equivalents $ 163 $ 221
Accrued oil and gas sales 52 127
Due from affiliate 31 70
Total 246 418
OIL AND GAS PROPERTIES, using the
full cost method of accounting 8,112 8,112
Less accumulated depletion ( 8,097) (8,091)
Net oil and gas properties 15 21
TOTAL ASSETS $ 261 $ 439
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 7 $ 12
PARTNERS' CAPITAL
General partner 177 239
Limited partner 77 188
Total 254 427
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 261 $ 439
<FN>
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-1
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 $ 63 $ 94
Oil revenue 31 65
Interest 3 3
Other 6
Total 97 168
COSTS AND EXPENSES
Lease operating 7 8
Production taxes 7 12
General and administrative 7 7
Depletion 2 9
Professional services and other 2 2
Total 25 38
NET INCOME $ 72 $ 130
ALLOCATION OF NET INCOME:
General Partner $ 29 $ 50
Limited Partner $ 43 $ 80
Per initial $1,000 limited partner
investment $ 8.01 $14.89
Weighted average initial $1,000 limited
partner investment units outstanding 5,371 5,371
<FN>
The accompanying note is an integral part of the financial
statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-1
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 $ 151 $ 261
Oil revenue 74 169
Interest 6 6
Other 6
Total 231 442
COSTS AND EXPENSES
Lease operating 12 16
Production taxes 16 29
General and administrative 14 14
Depletion 6 9
Professional services and other 7 7
Total 55 75
NET INCOME $ 176 $ 367
ALLOCATION OF NET INCOME:
General Partner $ 68 $ 141
Limited Partner $ 108 $ 226
Per initial $1,000 limited partner
investment $20.11 $42.08
Weighted average initial $1,000 limited
partner investment units outstanding 5,371 5,371
<FN>
The accompanying note is an integral part of the financial
statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-1
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
For the Six Months Ended June 30,
1998 1997
OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 176 $ 367
Adjustment to reconcile net income to net
cash provided by operating activities:
Depletion 6 9
Changes in assets and liabilities provided (used) cash:
Accrued oil and gas sales 75 94
Due from affiliate 39 75
Accounts payable and accrued liabilities (5) (5)
Due to affiliate 18
Net cash provided by operating activities 291 558
INVESTING ACTIVITIES -
Additions to oil and gas properties (44)
FINANCING ACTIVITIES -
Distributions to partners (349) (551)
NET DECREASE IN CASH AND
CASH EQUIVALENTS (58) (37)
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 221 265
Balance, end of period $ 163 $ 228
<FN>
</FN>
</TABLE>
<PAGE>
MAY LIMITED PARTNERSHIP 1984-1
NOTE 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, 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
Cash provided by operating activities totaled $291,000 for the six months ended
June 30, 1998, and $349,000 was distributed to partners. A distribution payable
to partners of record as of June 30, 1998 was declared in July 1998. The
distribution amount is $94,000 payable $58,938 to May Drilling Partnership
1984-1 partners and $35,062 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
Second Quarter 1998 Compared to Second Quarter 1997
Gas Revenue
Gas revenue decreased $31,000 during the second quarter of 1998 as compared to
the second quarter of 1997 due to a 36% decrease in production, partially offset
by an increase in the average gas price. The decrease in production is due to
increased rates of water production on the Freddie Aker #1 well in Louisiana.
The average gas price increased from $2.49 per mcf in 1997 to $2.66 in 1998.
Oil Revenue
Oil revenues decreased $34,000 in the second quarter of 1998 as compared to the
second quarter of 1997 as a result of a decrease in production and a decrease in
the average oil price. Oil production decreased 31% on the Freddie Aker #1 well
due to increased rates of water production on the well. The average oil price
decreased from $19.38 per barrel in 1997 to $13.19 per barrel in 1998.
Other
Other income during 1997 is comprised of insurance proceeds which reimbursed a
portion of expense incurred in a prior period to settle certain litigation.
Lease Operating
Lease operating expense decreased $1,000 during the second quarter of 1998 as
compared to the second quarter of 1997 due to decreased maintenance activity on
the Freddie Aker #1 well.
<PAGE>
Production Taxes
Production taxes decreased $5,000 during the second quarter of 1998 as compared
to the second quarter of 1997 due to decreased production previously discussed.
Depletion
Depletion expense decreased $7,000 during the second quarter of 1998 as compared
to the second quarter of 1997 due to a decrease in the depletion rate resulting
from lower production during 1998.
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 decreased $110,000 during the first six months of 1998 as compared
to the corresponding period in 1997 due to a decrease in production and a
decrease in price. Gas production decreased 33% due to increased rates of water
production on the Freddie Aker #1 well. The average gas price decreased from
$3.03 per mcf in 1997 to $2.62 per mcf in 1998.
Oil Revenue
Oil revenue decreased $95,000 during the first six months of 1998 as compared to
the corresponding period in 1997 due to a decrease in production and a decrease
in the average oil price. The average oil price decreased from $21.28 per barrel
in 1997 to $14.00 per barrel in 1998. Oil production decreased 33% due to
increased rates of water production on the Freddie Aker #1 well.
<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 1984-1
MAY LIMITED PARTNERSHIP 1984-1
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 Drilling Partnership 1984-1 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> Jun-30-1998
<CASH> 163
<SECURITIES> 0
<RECEIVABLES> 83
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 246
<PP&E> 8,112
<DEPRECIATION> 8,097
<TOTAL-ASSETS> 261
<CURRENT-LIABILITIES> 7
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 254
<TOTAL-LIABILITY-AND-EQUITY> 261
<SALES> 225
<TOTAL-REVENUES> 231
<CGS> 0
<TOTAL-COSTS> 55
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 176
<INCOME-TAX> 0
<INCOME-CONTINUING> 176
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 176
<EPS-PRIMARY> 20.11
<EPS-DILUTED> 20.11
</TABLE>
