UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
/ x / Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 1997
or
/ / Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from _______ to _______
Commission File No. 2-81398A
PARKER & PARSLEY 83-A, LTD.
(Exact name of Registrant as specified in its charter)
Texas 75-1891384
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
303 West Wall, Suite 101, Midland, Texas 79701
(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code : (915) 683-4768
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
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 pages.
-There are no exhibits-
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PARKER & PARSLEY 83-A, LTD.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of March 31, 1997 and
December 31, 1996......................................... 3
Statements of Operations for the three months
ended March 31, 1997 and 1996............................. 4
Statement of Partners' Capital for the three months
ended March 31, 1997...................................... 5
Statements of Cash Flows for the three months
ended March 31, 1997 and 1996............................. 6
Notes to Financial Statements............................... 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations....................... 7
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K............................ 9
27. Financial Reporting Schedule
Signatures.................................................. 10
2
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PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
March 31, December 31,
1997 1996
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $195,489 at March 31
and $171,164 at December 31 $ 195,989 $ 171,664
Accounts receivable - oil and gas sales 190,971 271,000
----------- -----------
Total current assets 386,960 442,664
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 17,823,146 17,822,921
Accumulated depletion (13,884,977) (13,806,313)
----------- -----------
Net oil and gas properties 3,938,169 4,016,608
----------- -----------
$ 4,325,129 $ 4,459,272
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 40,443 $ 38,807
Partners' capital:
General partners 476,184 492,167
Limited partners (19,505 interests) 3,808,502 3,928,298
----------- -----------
4,284,686 4,420,465
----------- -----------
$ 4,325,129 $ 4,459,272
=========== ===========
The financial information included as of March 31, 1997 has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
3
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PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
-------------------------
1997 1996
---------- ----------
Revenues:
Oil and gas $ 388,462 $ 394,310
Interest 2,748 4,037
--------- ---------
391,210 398,347
--------- ---------
Costs and expenses:
Oil and gas production 229,254 181,395
General and administrative 13,438 12,079
Depletion 78,664 84,935
--------- ---------
321,356 278,409
--------- ---------
Net income $ 69,854 $ 119,938
========= =========
Allocation of net income:
General partners $ 29,709 $ 42,787
========= =========
Limited partners $ 40,145 $ 77,151
========= =========
Net income per limited partnership interest $ 2.06 $ 3.96
========= =========
Distributions per limited partnership interest $ 8.20 $ 6.20
========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these inancial statements.
4
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PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
General Limited
partners partners Total
---------- ----------- -----------
Balance at January 1, 1997 $ 492,167 $ 3,928,298 $ 4,420,465
Distributions (45,692) (159,941) (205,633)
Net income 29,709 40,145 69,854
--------- ---------- ----------
Balance at March 31, 1997 $ 476,184 $ 3,808,502 $ 4,284,686
========= ========== ==========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
5
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PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
March 31,
------------------------
1997 1996
---------- ----------
Cash flows from operating activities:
Net income $ 69,854 $ 119,938
Adjustments to reconcile net income to net cash
provided by operating activities:
Depletion 78,664 84,935
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 80,029 (16,683)
Increase (decrease) in accounts payable 1,636 (60,652)
--------- ---------
Net cash provided by operating activities 230,183 127,538
--------- ---------
Cash flows from investing activities:
(Additions to) deletions of oil and gas properties (225) 805
Cash flows from financing activities:
Cash distributions to partners (205,633) (162,171)
--------- ---------
Net increase (decrease) in cash and cash equivalents 24,325 (33,828)
Cash and cash equivalents at beginning of period 171,664 377,780
--------- ---------
Cash and cash equivalents at end of period $ 195,989 $ 343,952
========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
6
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PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
(Unaudited)
Note 1. Organization and nature of operations
Parker & Parsley 83-A, Ltd. (the "Partnership") is a limited partnership
organized in 1983 under the laws of the State of Texas.
The Partnership engages primarily in oil and gas development and production in
Texas and is not involved in any industry segment other than oil and gas.
Note 2. Basis of presentation
In the opinion of management, the unaudited financial statements as of March 31,
1997 of the Partnership include all adjustments and accruals consisting only of
normal recurring accrual adjustments which are necessary for a fair presentation
of the results for the interim period. However, these interim results are not
necessarily indicative of results for a full year.
The financial statements should be read in conjunction with the financial
statements and the notes thereto contained in the Partnership's Report on Form
10-K for the year ended December 31, 1996, as filed with the Securities and
Exchange Commission, a copy of which is available upon request by writing to
Steven L. Beal, Senior Vice President, 303 West Wall, Suite 101, Midland, Texas
79701.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (1)
Results of Operations
Revenues:
The Partnership's oil and gas revenues decreased to $388,462 for the three
months ended March 31, 1997 from $394,310 for the same period ended March 31,
1996. The decrease in revenues primarily resulted from a 13% decline in barrels
of oil produced and sold and a 28% decline in mcf of gas produced and sold,
offset by higher average prices received per barrel of oil and mcf of gas. For
the three months ended March 31, 1997, 12,987 barrels of oil were sold compared
to 14,942 for the same period in 1996, a decrease of 1,955 barrels. For the
three months ended March 31, 1997, 36,042 mcf of gas were sold compared to
49,958 for the same period in 1996, a decrease of 13,916 mcf. The decreases in
production volumes were primarily due to the decline characteristics of the
Partnership's oil and gas properties. Because of these characteristics,
management expects a certain amount of decline in production to continue in the
future until the Partnership's economically recoverable reserves are fully
depleted.
7
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The average price received per barrel of oil increased $2.97, or 16%, from
$18.86 for the three months ended March 31, 1996 to $21.83 for the same period
in 1997, while the average price received per mcf increased 29% from $2.25 for
the three months ended March 31, 1996 to $2.91 as compared to the three months
ended March 31, 1997. The market price for oil and gas has been extremely
volatile in the past decade, and management expects a certain amount of
volatility to continue in the foreseeable future. The Partnership may therefore
sell its future oil and gas production at average prices lower or higher than
that received during the three months ended March 31, 1997.
Costs and Expenses:
Total costs and expenses increased to $321,356 for the three months ended March
31, 1997 as compared to $278,409 for the same period in 1996, an increase of
$42,947, or 15%. This increase was attributable to increases in production costs
and general and administrative expenses ("G&A"), offset by a decrease in
depletion.
Production costs were $229,254 for the three months ended March 31, 1997 and
$181,395 for the same period in 1996 resulting in a $47,859 increase, or 26%.
The increase was due to increases in well repair and maintenance costs and
workover expenses incurred in an effort to stimulate well production.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A
increased, in aggregate, 11% from $12,079 for the three months ended March 31,
1996 to $13,438 for the same period in 1997.
Depletion was $78,664 for the three months ended March 31, 1997 compared to
$84,935 for the same period in 1996, a decrease of $6,271, or 7%.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $102,645 during the three
months ended March 31, 1997 from the same period in 1996. This increase was
attributable to an increase in oil and gas sales receipts and a decrease in
expenditures for production costs.
Net Cash Provided by (Used in) Investing Activities
The Partnership's investing activities during the three months ended March 31,
1997 and 1996 were related to the addition or disposal of oil and gas equipment
on active properties.
Net Cash Used in Financing Activities
Cash was sufficient for the three months ended March 31, 1997 to cover
distributions to the partners of $205,633 of which $159,941 was distributed to
the limited partners and $45,692 to the general partners. For the same period
8
<PAGE>
ended March 31, 1996, cash was sufficient for distributions to the partners of
$162,171 of which $120,932 was distributed to the limited partners and $41,239
to the general partners.
It is expected that future net cash provided by operating activities will be
sufficient for any capital expenditures and any distributions. As the production
from the properties declines, distributions are also expected to decrease.
- ------------
(1) "Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations" contains forward looking statements that involve
risks and uncertainties. Accordingly, no assurances can be given that
the actual events and results will not be materially different than the
anticipated results described in the forward looking statements.
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K - none
9
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PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
S I G N A T U R E S
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PARKER & PARSLEY 83-A, LTD.
By: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: May 9, 1997 By: /s/ Steven L. Beal
------------------------------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
10
<PAGE>
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 195,989
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<RECEIVABLES> 190,971
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0
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<COMMON> 0
<OTHER-SE> 4,284,686
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<SALES> 388,462
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<INCOME-CONTINUING> 69,854
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<EXTRAORDINARY> 0
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