UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2000
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)
1400 Williams Square West, 5205 N. O'Connor Blvd., Irving, Texas 75039
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(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code : (972) 444-9001
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 / /
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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 September 30, 2000 and
December 31, 1999..................................... 3
Statements of Operations for the three and nine
months ended September 30, 2000 and 1999............... 4
Statement of Partners' capital for the nine months
ended September 30, 2000............................... 5
Statements of Cash Flows for the nine months ended
September 30, 2000 and 1999............................ 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......................... 10
27.1 Financial Data Schedule
Signatures............................................... 11
2
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PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
<TABLE>
BALANCE SHEETS
<CAPTION>
September 30, December 31,
2000 1999
------------ ------------
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash $ 186,399 $ 143,823
Accounts receivable - oil and gas sales 225,607 189,995
----------- -----------
Total current assets 412,006 333,818
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 16,898,304 16,892,307
Accumulated depletion (15,601,576) (15,541,219)
----------- -----------
Net oil and gas properties 1,296,728 1,351,088
----------- -----------
$ 1,708,734 $ 1,684,906
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 58,857 $ 32,852
Partners' capital:
General partners 189,108 182,491
Limited partners (19,505 interests) 1,460,769 1,469,563
----------- -----------
1,649,877 1,652,054
----------- -----------
$ 1,708,734 $ 1,684,906
=========== ===========
</TABLE>
The financial information included as of September 30, 2000 has been prepared by
the managing general partner 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)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
------------------------ ------------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues:
Oil and gas $ 500,331 $ 374,150 $1,365,167 $ 814,126
Interest 3,991 2,031 9,415 4,262
--------- --------- --------- ---------
504,322 376,181 1,374,582 818,388
--------- --------- --------- ---------
Costs and expenses:
Oil and gas production 210,730 195,280 654,006 564,775
General and administrative 17,886 15,687 45,675 31,532
Depletion 20,114 36,066 60,352 130,090
--------- --------- --------- ---------
248,730 247,033 760,033 726,397
--------- --------- --------- ---------
Net income $ 255,592 $ 129,148 $ 614,549 $ 91,991
========= ========= ========= =========
Allocation of net income:
General partners $ 67,634 $ 38,132 $ 163,870 $ 43,608
========= ========= ========= =========
Limited partners $ 187,958 $ 91,016 $ 450,679 $ 48,383
========= ========= ========= =========
Net income per limited
partnership interest $ 9.64 $ 4.67 $ 23.11 $ 2.48
========= ========= ========= =========
</TABLE>
The financial information included herein has been prepared by
the managing general partner without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
4
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PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
<TABLE>
<CAPTION>
General Limited
partners partners Total
---------- ---------- ----------
<S> <C> <C> <C>
Balance at January 1, 2000 $ 182,491 $1,469,563 $1,652,054
Distributions (157,253) (459,473) (616,726)
Net income 163,870 450,679 614,549
--------- --------- ---------
Balance at September 30, 2000 $ 189,108 $1,460,769 $1,649,877
========= ========= =========
</TABLE>
The financial information included herein has been prepared by
the managing general partner without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine months ended
September 30,
------------------------
2000 1999
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 614,549 $ 91,991
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 60,352 130,090
Changes in assets and liabilities:
Accounts receivable (35,612) (83,504)
Accounts payable 26,005 26,412
--------- ---------
Net cash provided by operating activities 665,294 164,989
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (5,992) (6,859)
Proceeds from asset dispositions - 810
--------- ----------
Net cash used in investing activities (5,992) (6,049)
--------- ---------
Cash flows used in financing activities:
Cash distributions to partners (616,726) (110,584)
--------- ---------
Net increase in cash 42,576 48,356
Cash at beginning of period 143,823 94,700
--------- ---------
Cash at end of period $ 186,399 $ 143,056
========= =========
</TABLE>
The financial information included herein has been prepared by
the managing general partner 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
September 30, 2000
(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 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 of the
Partnership as of September 30, 2000 and for the three and nine months ended
September 30, 2000 and 1999 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. These interim results are
not necessarily indicative of results for a full year. Certain reclassifications
may have been made to the September 30, 1999 financial statements to conform to
the September 30, 2000 financial statement presentations.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted in this Form 10-Q pursuant to the rules and
regulations of the Securities and Exchange Commission. 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, 1999, as filed with the Securities and Exchange Commission, a copy
of which is available upon request by writing to Rich Dealy, Vice President and
Chief Accounting Officer, 5205 North O'Connor Boulevard, 1400 Williams Square
West, Irving, Texas 75039-3746.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (1)
Results of Operations
Nine months ended September 30, 2000 compared with nine months ended September
30, 1999
Revenues:
The Partnership's oil and gas revenues increased 68% to $1,365,167 for the nine
months ended September 30, 2000 as compared to $814,126 for the same period in
1999. The increase in revenues resulted from higher average prices received,
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offset by a decrease in production. For the nine months ended September 30,
2000, 31,864 barrels of oil, 17,938 barrels of natural gas liquids ("NGLs") and
73,083 mcf of gas were sold, or 61,983 barrel of oil equivalents ("BOEs"). For
the nine months ended September 30, 1999, 33,186 barrels of oil, 19,939 barrels
of NGLs and 85,102 mcf of gas were sold, or 67,309 BOEs.
The average price received per barrel of oil increased $13.43, or 89%, from
$15.11 for the nine months ended September 30, 1999 to $28.54 for the same
period in 2000. The average price received per barrel of NGLs increased $6.33,
or 76%, from $8.34 during the nine months ended September 30, 1999 to $14.67 for
the same period in 2000. The average price received per mcf of gas increased 53%
from $1.72 for the nine months ended September 30, 1999 to $2.64 for the same
period in 2000. 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 nine months ended September 30, 2000.
Costs and Expenses:
Total costs and expenses increased to $760,033 for the nine months ended
September 30, 2000 as compared to $726,397 for the same period in 1999, an
increase of $33,636, or 5%. This increase was due to increases in production
costs and general and administrative expenses ("G&A"), offset by a decline in
depletion.
Production costs were $654,006 for the nine months ended September 30, 2000 and
$564,775 for the same period in 1999 resulting in an $89,231 increase, or 16%.
The increase was primarily due to higher production taxes of $43,236 associated
with higher oil and gas prices and additional well maintenance costs of $24,517
and workover expenses of $17,698 incurred 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, 45% from $31,532 for the nine months ended September
30, 1999 to $45,675 for the same period in 2000 primarily due to a higher
allocation of the managing general partner's G&A being allocated (limited to 3%
of oil and gas revenues) as a result of increased oil and gas revenues.
Depletion was $60,352 for the nine months ended September 30, 2000 compared to
$130,090 for the same period in 1999, a decrease of $69,738, or 54%. This
decrease was attributable to an increase in proved reserves due to higher
commodity prices and a decline in oil production of 1,322 barrels when compared
to the respective information for the same period in 1999.
Three months ended September 30, 2000 compared with three months ended September
30, 1999
Revenues:
The Partnership's oil and gas revenues increased 34% to $500,331 for the three
months ended September 30, 2000 as compared to $374,150 for the same period in
1999. The increase in revenues resulted from higher average prices received,
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offset by a decline in production. For the three months ended September 30,
2000, 10,409 barrels of oil, 6,242 barrels of NGLs and 26,245 mcf of gas were
sold, or 21,025 BOEs. For the three months ended September 30, 1999, 12,110
barrels of oil, 7,627 barrels of NGLs and 32,917 mcf of gas were sold, or 25,223
BOEs.
The average price received per barrel of oil increased $11.64, or 61%, from
$18.93 for the three months ended September 30, 1999 to $30.57 for the same
period in 2000. The average price received per barrel of NGLs increased $5.22,
or 51%, from $10.16 during the three months ended September 30, 1999 to $15.38
for the same period in 2000. The average price received per mcf of gas increased
60% from $2.05 for the three months ended September 30, 1999 to $3.28 for the
same period in 2000.
Costs and Expenses:
Total costs and expenses increased to $248,730 for the three months ended
September 30, 2000 as compared to $247,033 for the same period in 1999, an
increase of $1,697. This increase was due to increases in production costs and
G&A, offset by a decrease in depletion.
Production costs were $210,730 for the three months ended September 30, 2000 and
$195,280 for the same period in 1999 resulting in a $15,450 increase, or 8%.
This increase was primarily due to higher production taxes of $14,554 associated
with higher oil and gas prices and additional workover costs of $2,815 incurred
to stimulate well production, offset by a decline in well maintenance costs of
$4,866.
During this period, G&A increased, in aggregate, 14% from $15,687 for the three
months ended September 30, 1999 to $17,886 for the same period in 2000 primarily
due to a higher allocation of the managing general partner's G&A being allocated
(limited to 3% of oil and gas revenues) as a result of increased oil and gas
revenues.
Depletion was $20,114 for the three months ended September 30, 2000 compared to
$36,066 for the same period in 1999, representing a decrease of $15,952, or 44%.
This decrease was attributable to an increase in proved reserves as a result of
higher commodity prices and a decrease in oil production of 1,701 barrels when
compared to the respective information for the same period in 1999.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $500,305 during the nine
months ended September 30, 2000 compared to the same period in 1999. This
increase was due to an increase in oil and gas sales receipts of $604,086,
offset by increases in production costs paid of $81,901 and G&A expenses paid of
$21,880.
9
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Net Cash Used in Investing Activities
The Partnership's investment activities during the nine months ended September
30, 2000 and 1999 included expenditures related to equipment upgrades on various
oil and gas properties.
Proceeds from asset dispositions of $810 were received during the nine months
ended September 30, 1999 from equipment credits on one well.
Net Cash Used in Financing Activities
For the nine months ended September 30, 2000, cash distributions to the partners
were $616,726, of which $157,253 was distributed to the general partners and
$459,473 to the limited partners. For the same period ended September 30, 1999,
cash distributions to the partners were $110,584, of which $30,354 was
distributed to the general partners and $80,230 to the limited partners.
---------------
(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
27.1 Financial Data Schedule
(b) Reports on Form 8-K - none
10
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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: Pioneer Natural Resources USA, Inc.,
Managing General Partner
Dated: November 8, 2000 By: /s/ Rich Dealy
---------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
11
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