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Previous: DIGITAL COMMUNICATIONS TECHNOLOGY CORP, 4, 1998-05-08 |
Next: JNS MARKETING INC, 10QSB, 1998-05-08 |
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 March 31, 1998
[ ] 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)
75-1915681
Texas 75-1915685
(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 9
<PAGE>
<TABLE>
<CAPTION>
MAY DRILLING PARTNERSHIP 1983-3
BALANCE SHEETS
(Unaudited)
(In thousands)
March 31, December 31,
1998 1997
ASSETS
<S> <C> <C>
Investment in May Limited Partnership 1983-3 $ 488 $ 532
==== ====
PARTNERS' CAPITAL
Partners' Capital $ 488 $ 532
==== ====
<FN>
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.
</FN>
<FN>
The accompanying note is an integral part of the financial
statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-3
BALANCE SHEETS
(Unaudited)
(In thousands)
March 31, December 31,
1998 1997
ASSETS
CURRENT ASSETS
<S> <C> <C>
Cash and cash equivalents $ 213 $ 219
Accrued oil and gas sales 121 146
Due from affiliate 54 68
-------- --------
Total 388 433
------- -------
OIL AND GAS PROPERTIES, using the
full cost method of accounting 16,589 16,582
Less accumulated depletion (15,995) (15,963)
------ ------
Net oil and gas properties 594 619
------- -------
TOTAL ASSETS $ 982 $ 1,052
======= ======
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 13 $ 20
-------- --------
PARTNERS' CAPITAL
General partner 481 500
Limited partner 488 532
------- -------
Total 969 1,032
------- ------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 982 $ 1,052
======= ======
<FN>
The accompanying note is an integral part of the financial
statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-3
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Three Months Ended March 31,
1998 1997
REVENUES
<S> <C> <C>
Oil revenue $ 20 $ 26
Gas revenue 178 197
Interest 2 2
--------- ---------
Total 200 225
------- -------
COSTS AND EXPENSES
Lease operating 21 20
General and administrative 19 19
Depletion 32 24
Professional services and other 4 5
--------- ---------
Total 76 68
-------- --------
NET INCOME $ 124 $ 157
======= =======
ALLOCATION OF NET INCOME:
General Partner $ 60 $ 75
======== ========
Limited Partner $ 64 $ 82
======== ========
Per initial $1,000 limited partner
investment $ 5.50 $ 7.05
======= =======
Weighted average initial $1,000 limited
partner investment units outstanding 11,629 11,629
====== ======
<FN>
The accompanying note is an integral part of the financial
statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1983-3
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
For the Three Months Ended March 31,
1998 1997
OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 124 $ 157
Adjustment to reconcile net income to
net cash provided by operating activities:
Depletion 32 24
Changes in assets and liabilities provided (used) cash:
Accrued oil and gas sales 25 61
Due from affiliate 14 (90)
Accounts payable and accrued liabilities (7) (8)
Due to affiliate (4)
---------- ---------
Net cash provided by operating activities 188 140
------- -------
INVESTING ACTIVITIES -
Additions to oil and gas properties (7) (21)
--------- -------
FINANCING ACTIVITIES -
Distributions to partners (187)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (6) 119
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 219 157
------- -------
Balance, end of period $ 213 $ 276
======= =======
<FN>
The accompanying note is an integral part of the financial
statements.
</FN>
</TABLE>
<PAGE>
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, 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 $188,000 of cash flow from operating activities during
the three months ended March 31, 1998 and distributed $187,000 to partners. A
distribution payable to partners of record as of March 31, 1998 was declared in
April 1998. The distribution amount is $166,000 payable $95,450 to May Drilling
Partnership 1983-3 partners and $70,550 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
First Quarter 1998 Compared to First Quarter 1997
Oil Revenue
Oil revenues decreased $6,000 in the first quarter of 1998 as compared with the
first quarter of 1997 as a result of a decrease in the average oil price
partially offset by a 6% increase in production. The average oil price decreased
from $22.65 per barrel in 1997 to $16.10 per barrel in 1998. The increase in
production is due to workover procedures performed during the second quarter of
1997.
Gas Revenue
Gas revenue decreased $19,000 during the first quarter of 1998 as compared to
the first quarter of 1997, as the result of a decrease in price partially offset
by an increase in production. The average gas price decreased from $3.23 per mcf
in 1997 to $2.42 per mcf in 1998. Gas production increased 21% due to workover
procedures performed during the second quarter of 1997.
Lease Operating
Lease operating expense increased $1,000 during the first quarter of 1998 as
compared to the first quarter of 1997 due to increased production taxes
resulting from increased production discussed above.
Depletion
Depletion expense increased $8,000 during the first quarter of 1998 as compared
to the first quarter of 1997 as a result of a higher depletion rate resulting
from the increased production discussed above.
<PAGE>
Professional Services and Other
Professional services and other expense decreased $1,000 during the first
quarter of 1998 as compared with the first quarter of 1997 primarily due to a
net decrease in numerous miscellaneous items none of which are individually
significant.
<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 1983-3
MAY LIMITED PARTNERSHIP 1983-3
By: EDP OPERATING, LTD.,
General Partner
By: HEPGP Ltd.,
General Partner
By: HALLWOOD G. P., INC.,
General Partner
Date: May 1, 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 March 31, 1998 for May Limited Partnership 1983-3 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 213
<SECURITIES> 0
<RECEIVABLES> 175
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 388
<PP&E> 16,589
<DEPRECIATION> 15,995
<TOTAL-ASSETS> 982
<CURRENT-LIABILITIES> 13
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 969
<TOTAL-LIABILITY-AND-EQUITY> 969
<SALES> 198
<TOTAL-REVENUES> 200
<CGS> 0
<TOTAL-COSTS> 76
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 124
<INCOME-TAX> 0
<INCOME-CONTINUING> 124
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 124
<EPS-PRIMARY> 5.50
<EPS-DILUTED> 5.50
</TABLE>
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