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 0-11313
-----------------------
MAY DRILLING PARTNERSHIP 1983-3
MAY LIMITED PARTNERSHIP 1983-3
(Exact name of registrant as specified in its charter)
------------------------
TEXAS 75-1915681
(State or other jurisdiction of 75-1915685
incorporation or organization) (I.R.S. Employer
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 ___
MAY DRILLING PARTNERSHIP 1983-3
BALANCE SHEETS
(In thousands)
September 30, December 31,
1995 1994
------------ ------------
(Unaudited)
ASSETS
Investment in
May Limited Partnership 1983-3 $627 $637
=== ===
PARTNERS' CAPITAL
Partners' Capital $627 $637
=== ===
NOTE: The statements of operations and cash flows for May Drilling
Partnership 1983-3 are not presented because such information is
equal to the limited partner's share of such activity as presented
in the May Limited Partnership 1983-3 financial statements. The
May Drilling Partnership carries its investment in May Limited
Partnership 1983-3 on the equity method. The May Limited
Partnership 1983-3 financial statements should be read in
conjunction with these balance sheets.
MAY LIMITED PARTNERSHIP 1983-3
BALANCE SHEETS
(In thousands)
September 30, December 31,
1995 1994
---------- ----------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 201 $ 187
Accrued oil and gas sales 88 93
Due from affiliate 24 11
------- -------
Total 313 291
------- -------
OIL AND GAS PROPERTIES, using the
full cost method of accounting 16,506 16,470
Less - Accumulated depletion (15,704) (15,611)
------- -------
Net oil and gas properties 802 859
------- -------
TOTAL ASSETS $ 1,115 $ 1,150
======= =======
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable and accrued
liabilities $ 22 $ 33
------- -------
Total 22 33
------- -------
PARTNERS' CAPITAL
General Partner 466 480
Limited Partner 627 637
------- -------
Total 1,093 1,117
------- -------
TOTAL LIABILITIES AND PARTNERS'
CAPITAL $ 1,115 $ 1,150
======= =======
MAY LIMITED PARTNERSHIP 1983-3
STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Three Months Ended
--------------------------
September 30, September 30,
1995 1994
------ ------
REVENUES
Oil revenue $ 23 $ 20
Gas revenue 111 97
Interest income 2 3
-------- --------
Total 136 120
-------- --------
COSTS AND EXPENSES
Lease operating 39 29
General and administrative 24 24
Depletion 33 23
Professional services and other 1 6
-------- --------
Total 97 82
-------- --------
NET INCOME $ 39 $ 38
======== ========
ALLOCATION OF NET INCOME:
General Partner $ 23 $ 20
======== ========
Limited Partner $ 16 $ 18
======== ========
Per initial $1,000 limited
partner investment $ 1.38 $ 1.55
======== ========
Weighted average initial $1,000
limited partner investment
units outstanding 11,629 11,629
======== ========
MAY LIMITED PARTNERSHIP 1983-3
STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Nine Months Ended
--------------------------
September 30, September 30,
1995 1994
------------- -------------
REVENUES
Oil revenue $ 67 $ 65
Gas revenue 330 463
Interest income 7 12
--------- --------
Total 404 540
-------- --------
COSTS AND EXPENSES
Lease operating 97 87
General and administrative 69 75
Depletion 93 92
Professional services and other 6 24
--------- --------
Total 265 278
-------- --------
NET INCOME $ 139 $ 262
======== ========
ALLOCATION OF NET INCOME:
General Partner $ 77 $ 130
======== ========
Limited Partner $ 62 $ 132
======== ========
Per initial $1,000 limited
partner investment $ 5.33 $ 11.35
======== ========
Weighted average initial $1,000
limited partner investment
units outstanding 11,629 11,629
======== ========
MAY LIMITED PARTNERSHIP 1983-3
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 $ 139 $ 262
Adjustment to reconcile net income
to net cash provided by
operating activities:
Depletion 93 92
------- -------
Cash from operations before working
capital changes 232 354
Changes in assets and liabilities
provided (used) cash:
Accrued oil and gas sales 5 107
Due from affiliate (13) 344
Accounts payable and accrued
liabilities (11) (327)
------- -------
Net cash provided by operating
activities 213 478
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties (36) (4)
Proceeds from property sales 16
------- -------
Net cash provided by (used in) (36) 12
investing activities ------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (163) (928)
------- -------
Net cash used in financing activities (163) (928)
------- -------
Net increase (decrease) in cash and
cash equivalents 14 (438)
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 187 556
------- -------
Balance, end of period $ 201 $ 118
======= =======
The accompanying notes are an integral part
of the financial statements.
MAY LIMITED PARTNERSHIP 1983-3
NOTE TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - GENERAL
The financial statements presented are those of May Limited Partnership 1983-3
(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, 1994 Annual Report on Form 10-K.
NOTE 2 - LEGAL
In June 1995, an additional lawsuit was filed against the Partnership in the
15th Judicial District Court, Lafayette Parish, Louisiana, Docket No. 952601-
3B, styled Lamson Petroleum Corporation v. Hallwood Petroleum, Inc. et al. The
plaintiffs in the lawsuit claim that they have an additional valid lease
covering streets and roads in the units of the A. L. Boudreaux #1 well, G. S.
Boudreaux #1 well, Mary Guilbeau #1 well and Duhon #1 well and are entitled to a
portion of the production from the wells. The Partnership has not yet
determined the amount of its interest in the properties which is at issue. At
this time, the Partnership believes that the difference between the amount
already in escrow as a result of the litigation and the amount of any liability
that may result upon resolution of this matter will not be material.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES<PAGE>
The Partnership generated $213,000 of cash flow
from operating activities during the nine months ended September 30, 1995 and
made distributions of $163,000. A distribution was declared in October 1995.
The distribution amount is $125,000, payable $72,000 to May Drilling Partnership
1983-3 partners and $53,000 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 increased $3,000 in the third quarter of 1995 as compared to the
corresponding period in 1994 as the result of an 11% increase in production
partially offset by a decrease in the average oil price from $17.36 per barrel
in 1994 to $17.12 per barrel in 1995. The increase in production is due to
higher state allowable production limits.
GAS REVENUES
Gas revenues increased $14,000 during the third quarter of 1995 as compared to
the corresponding period in 1994 as the result of an increase in production
partially offset by a decrease in price. Gas production increased 39% primarily
due to an increase in state allowable production limits. The average gas price
decreased from $1.95 per mcf in 1994 to $1.61 per mcf in 1995.
INTEREST INCOME
Interest income decreased $1,000 during the third quarter of 1995 as compared
with the third quarter of 1994 due to a lower average cash balance.
LEASE OPERATING EXPENSE
Lease operating expense increased $10,000 during the third quarter of 1995 as
compared to the corresponding period in 1994 due to an increase in production
tax expense resulting from the 15% increase in oil and gas revenue.
DEPLETION EXPENSE
Depletion expense increased $10,000 during the third quarter of 1995 as compared
to the corresponding period in 1994 as a result of a higher depletion rate
resulting from the increase in production as previously discussed.
PROFESSIONAL SERVICES AND OTHER
Professional services and other expense decreased $5,000 due to the timing of
payments made for professional services.
NINE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER
30, 1994
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 increased $2,000 during the first nine months of 1995 as compared to
the same period in 1994. The increase is comprised of an increase in the
average oil price from $15.81 per barrel in 1994 to $17.74 per barrel in 1995
partially offset by an 8% decline in oil production primarily due to normal
production declines.
GAS REVENUE
Gas revenue decreased $133,000 during the nine months ended September 30, 1995
as compared with the corresponding period in 1994. The decrease is comprised of
a decrease in the average price from $2.25 per mcf in 1994 to $1.70 per mcf in
1995 combined with a 6% decrease in gas production primarily due to normal
production declines.
GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses decreased $6,000 during the nine months
ended September 30, 1995 as compared to the corresponding period in 1994 due to
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, 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 1983-3
MAY LIMITED PARTNERSHIP 1983-3
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)<PAGE>
<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> 0000743453
<NAME> MAY LIMITED PARTNERSHIP 1983-3
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 201
<SECURITIES> 0
<RECEIVABLES> 112
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 313
<PP&E> 16,506
<DEPRECIATION> (15,704)
<TOTAL-ASSETS> 1,115
<CURRENT-LIABILITIES> 22
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 1,093
<TOTAL-LIABILITY-AND-EQUITY> 1,115
<SALES> 397
<TOTAL-REVENUES> 404
<CGS> 0
<TOTAL-COSTS> 265
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 139
<INCOME-TAX> 0
<INCOME-CONTINUING> 139
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 139
<EPS-PRIMARY> 5.33
<EPS-DILUTED> 0
</TABLE>
