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, 1996
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 2-89194
MAY DRILLING PARTNERSHIP 1984-3
MAY LIMITED PARTNERSHIP 1984-3
(Exact name of registrant as specified in its charter)
75-1994687
TEXAS 75-1994682
(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
<TABLE>
<CAPTION>
MAY DRILLING PARTNERSHIP 1984-3
BALANCE SHEETS
(Unaudited)
(In thousands)
June 30, December 31,
1996 1995
<S> <C> <C>
ASSETS
Investment in
May Limited Partnership 1984-3 $364 $317
=== ===
PARTNERS' CAPITAL
Partners' Capital $364 $317
=== ===
<F1>
NOTE: The statements of operations and cash flows for May Drilling Partnership
1984-3 are not presented because such information is equal to the
limited partner s share of such activity as presented in the May Limited
Partnership 1984-3 financial statements. The May drilling Partnership
carries its investment in May Limited Partnership 1984-3 on the equity
method. The May Limited Partnership 1984-3 financial statements should
be read in conjunction with these balance sheets.
</TABLE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-3
BALANCE SHEETS
(Unaudited)
(In thousands)
June 30, December 31,
1996 1995
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 283 $ 273
Accrued oil and gas sales 274 281
Due from affiliate 148 86
Contributions receivable from
general partner 30
------- -------
Total 705 670
------- -------
OIL AND GAS PROPERTIES, using the full
cost method of accounting 7,629 7,629
Less - Accumulated depletion (7,629) (7,629)
------- -------
Net oil and gas properties - -
------- -------
TOTAL ASSETS $ 705 $ 670
======= =======
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable and accrued
liabilities $ 9 $ 16
------- -------
Total 9 16
------- -------
PARTNERS' CAPITAL
General partner 332 337
Limited partner 364 317
------- -------
Total 696 654
------- -------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 705 $ 670
======= =======
</TABLE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-3
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Three Months Ended
June 30,
1996 1995
<S> <C> <C>
REVENUES
Oil revenue $ 194 $ 157
Gas revenue 298 174
Interest income 4 4
------- -------
Total 496 335
------- -------
COSTS AND EXPENSES
Lease operating 9 9
Production taxes 31 27
General and administrative 13 11
Professional services and other 2 2
------- --------
Total 55 49
------- -------
NET INCOME $ 441 $ 286
======= =======
ALLOCATION OF NET INCOME:
General Partner $ 149 $ 95
======= =======
Limited Partner $ 292 $ 191
======= =======
Per initial $1,000 limited partner
investment $ 44.25 $ 28.94
======= =======
Weighted average initial $1,000 limited
partner investment units outstanding 6,599 6,599
======= =======
</TABLE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-3
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Six Months Ended
June 30,
1996 1995
<S> <C> <C>
REVENUES
Oil revenue $ 418 $ 283
Gas revenue 792 310
Interest income 8 8
------- -------
Total 1,218 601
------- -------
COSTS AND EXPENSES
Lease operating 19 16
Production taxes 72 48
General and administrative 22 23
Depletion 3
Professional services and other 5 5
------- -------
Total 118 95
------- -------
NET INCOME $ 1,100 $ 506
======= =======
ALLOCATION OF NET INCOME:
General Partner $ 370 $ 171
======= =======
Limited Partner $ 730 $ 335
======= =======
Per initial $1,000 limited
partner investment $ 110.62 $ 50.77
======= =======
Weighted average initial $1,000 limited
partner investment units outstanding 6,599 6,599
======= =======
</TABLE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-3
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
For the Six Months Ended
June 30,
1996 1995
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 1,100 $ 506
Adjustment to reconcile net income to
net cash provided by operating
activities:
Depletion 3
------- -------
Cash from operations before working
capital changes 1,100 509
Changes in assets and liabilities
provided (used) cash:
Accrued oil and gas sales 7 8
Due from affiliate (62) 30
Contributions receivable from general 30 29
partner
Accounts payable and accrued liabilities (7) (4)
------- -------
Net cash provided by operating
activities 1,068 572
------- -------
INVESTING ACTIVITIES:
Additions to oil and gas properties (3)
------- -------
Net cash used in investing activities (3)
------- -------
FINANCING ACTIVITIES:
Distributions to partners (1,058) (629)
------- -------
Net cash used in financing activities (1,058) (629)
------- -------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 10 (60)
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 273 304
------- -------
Balance, end of period $ 283 $ 244
======= =======
<F1>
The accompanying note is an integral part
of the financial statements.
</TABLE>
MAY LIMITED PARTNERSHIP 1984-3
NOTE TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - GENERAL
The financial statements presented are those of May Limited Partnership 1984-3
(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, 1995 Annual Report on Form 10-K.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operating activities totaled $1,068,000 for the second quarter
of 1996, and $1,058,000 was distributed to partners. A distribution was
declared in July 1996. The distribution amount is $332,000, payable $220,000 to
May Drilling Partnership 1984-3 partners and $112,000 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
SECOND QUARTER 1996 COMPARED TO SECOND QUARTER 1995
OIL REVENUES
Oil revenue increased $37,000 during the second quarter 1996 as compared to the
corresponding period in 1995 as the result of an increase in production combined
with an increase in the average oil price. Oil production increased 10% on the
Freddie Aker #1 due to an increase in the state allowable production limits.
The average oil price increased from $18.48 per barrel in 1995 to $20.81 per
barrel in 1996.
GAS REVENUE
Gas revenue increased $124,000 for the second quarter of 1996 as compared to the
corresponding period in 1995 due to an increase in the average gas price,
combined with an increase in production. The average gas price increased from
$1.99 per mcf in 1995 to $2.74 per mcf in 1996. Gas production increased 24% on
the Freddie Aker #1 due to an increase in the state allowable production limits.
PRODUCTION TAXES
Production taxes increased $4,000 during the second quarter of 1996 as compared
to the corresponding period in 1995 due an increase in oil and gas revenue
previously discussed.
GENERAL AND ADMINISTRATIVE
General and administrative expense increased $2,000 during the second quarter of
1996 as compared with the second quarter of 1995 due to an increase in allocated
overhead from the general partner.
SIX MONTHS ENDED JUNE 30, 1996 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 1995
The comparisons for the six months ended June 30, 1996 and the six months ended
June 30, 1995 are consistent with those discussed in the second quarter 1996
compared to the second quarter 1995 except for the following:
OIL REVENUE
Oil revenue increased $135,000 during the first six months of 1996 as compared
with the same period in 1995 due to a 34% increase in production due to higher
state allowable production limits, combined with an increase in average oil
prices. Average oil prices increased from $18.10 per barrel during 1995 to
$19.89 per barrel during 1996.
GAS REVENUE
Gas revenue increased $482,000 during the first six months of 1996 as compared
with the same period during 1995 due to a 49% increase in production resulting
from higher state allowable production limits, combined with an increase in
average gas prices. The average gas price increased from $1.91 per mcf in 1995
to $3.27 per mcf in 1996.
LEASE OPERATING
Lease operating expense increased $3,000 during the second quarter of 1996 as
compared to the corresponding period in 1995 due to an increase in maintenance
costs on the Freddie Aker #1.
GENERAL AND ADMINISTRATIVE
General and administrative expense decreased $1,000 for the first six months of
1996 as compared to the corresponding period in 1995 as a result of a decrease
in the allocation of overhead from the general partner.
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
Reference is made to Item 8 - Note 3 of Form 10-K for the year ended
December 31, 1995.
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 1984-3
MAY LIMITED PARTNERSHIP 1984-3
BY: EDP OPERATING, LTD.,
GENERAL PARTNER
BY: HALLWOOD G. P., INC.,
GENERAL PARTNER
Date: August 1, 1996 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 Form 10-Q
for the quarter ended June 30, 1996 for May Drilling Partnership 1984-3 and is
qualified in its entirety by reference to such Form 10-Q.
</LEGEND>
<CIK> 0000739647
<NAME> MAY DRILLING PARTNERSHIP 1984-3
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 283
<SECURITIES> 0
<RECEIVABLES> 422
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 705
<PP&E> 7,629
<DEPRECIATION> 7,629
<TOTAL-ASSETS> 705
<CURRENT-LIABILITIES> 9
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 696
<TOTAL-LIABILITY-AND-EQUITY> 705
<SALES> 1,210
<TOTAL-REVENUES> 1,218
<CGS> 0
<TOTAL-COSTS> 118
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,100
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,100
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,100
<EPS-PRIMARY> 110.62
<EPS-DILUTED> 110.62
</TABLE>
