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 June 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 June 30, 2000 and
December 31, 1999....................................... 3
Statements of Operations for the three and six
months ended June 30, 2000 and 1999...................... 4
Statement of Partners' Capital for the six months
ended June 30, 2000...................................... 5
Statements of Cash Flows for the six months
ended June 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
June 30, December 31,
2000 1999
------------ ------------
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash $ 144,516 $ 143,823
Accounts receivable - oil and gas sales 223,512 189,995
----------- -----------
Total current assets 368,028 333,818
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 16,900,232 16,892,307
Accumulated depletion (15,581,461) (15,541,219)
----------- -----------
Net oil and gas properties 1,318,771 1,351,088
----------- -----------
$ 1,686,799 $ 1,684,906
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 49,377 $ 32,852
Partners' capital:
General partners 188,350 182,491
Limited partners (19,505 interests) 1,449,072 1,469,563
----------- -----------
1,637,422 1,652,054
----------- -----------
$ 1,686,799 $ 1,684,906
=========== ===========
</TABLE>
The financial information included as of June 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>
Three months ended Six months ended
June 30, June 30,
--------------------- ---------------------
2000 1999 2000 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues:
Oil and gas $ 447,770 $ 265,731 $ 864,836 $ 439,976
Interest 2,956 1,145 5,424 2,231
-------- -------- -------- --------
450,726 266,876 870,260 442,207
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 226,945 187,295 443,276 369,495
General and administrative 14,886 8,752 27,789 15,845
Depletion 18,632 30,992 40,238 94,024
-------- -------- -------- --------
260,463 227,039 511,303 479,364
-------- -------- -------- --------
Net income (loss) $ 190,263 $ 39,837 $ 358,957 $ (37,157)
======== ======== ======== ========
Allocation of net income (loss):
General partners $ 50,724 $ 14,803 $ 96,236 $ 5,476
======== ======== ======== ========
Limited partners $ 139,539 $ 25,034 $ 262,721 $ (42,633)
======== ======== ======== ========
Net income (loss) per limited
partnership interest $ 7.15 $ 1.28 $ 13.47 $ (2.19)
======== ======== ======== ========
</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>
General Limited
partners partners Total
---------- ---------- ----------
<S> <C> <C> <C>
Balance at January 1, 2000 $ 182,491 $1,469,563 $1,652,054
Distributions (90,377) (283,212) (373,589)
Net income 96,236 262,721 358,957
--------- --------- ---------
Balance at June 30, 2000 $ 188,350 $1,449,072 $1,637,422
========= ========= =========
</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
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PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
Six months ended
June 30,
------------------------
2000 1999
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 358,957 $ (37,157)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depletion 40,238 94,024
Changes in assets and liabilities:
Accounts receivable (33,517) (44,816)
Accounts payable 16,525 18,783
--------- ---------
Net cash provided by operating activities 382,203 30,834
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (7,921) (1,192)
Proceeds from asset disposition - 810
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Net cash used in investing activities (7,921) (382)
--------- ---------
Cash flows used in financing activities:
Cash distributions to partners (373,589) (1,391)
--------- ---------
Net increase in cash 693 29,061
Cash at beginning of period 143,823 94,700
--------- ---------
Cash at end of period $ 144,516 $ 123,761
========= =========
</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
June 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 June 30, 2000 and for the three and six months ended June 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. However, these interim results are not
necessarily indicative of results for a full year. Certain reclassifications may
have been made to the June 30, 1999 financial statements to conform to the June
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
Six months ended June 30, 2000 compared with six months ended June 30, 1999
Revenues:
The Partnership's oil and gas revenues increased 97% to $864,836 for the six
months ended June 30, 2000 as compared to $439,976 for the same period in 1999.
The increase in revenues resulted from higher average prices received, offset by
a decrease in production. For the six months ended June 30, 2000, 21,455 barrels
of oil, 11,696 barrels of natural gas liquids ("NGLs") and 46,838 mcf of gas
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were sold, or 40,957 barrel of oil equivalents ("BOEs"). For the six months
ended June 30, 1999, 21,076 barrels of oil, 12,312 barrels of NGLs and 52,185
mcf of gas were sold, or 42,086 BOEs.
The average price received per barrel of oil increased $14.64, or 113%, from
$12.91 for the six months ended June 30, 1999 to $27.55 for the same period in
2000. The average price received per barrel of NGLs increased $7.09, or 98%,
from $7.21 during the six months ended June 30, 1999 to $14.30 for the same
period in 2000. The average price received per mcf of gas increased 49% from
$1.52 during the six months ended June 30, 1999 to $2.27 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 six
months ended June 30, 2000.
The volatility of commodity prices has had, and continues to have, a significant
impact on the Partnership's revenues and operating cash flow and could result in
additional decreases to the carrying value of the Partnership's oil and gas
properties.
Costs and Expenses:
Total costs and expenses increased to $511,303 for the six months ended June 30,
2000 as compared to $479,364 for the same period in 1999, an increase of
$31,939, or 7%. This increase was due to higher production costs and general and
administrative expenses ("G&A"), offset by a decline in depletion.
Production costs were $443,276 for the six months ended June 30, 2000 and
$369,495 for the same period in 1999 resulting in a $73,781 increase, or 20%.
The increase was the result of additional well maintenance and workover costs
incurred to stimulate well production and higher production taxes due to
higher oil and gas prices.
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, 75% from $15,845 for the six months ended June 30, 1999
to $27,789 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 $40,238 for the six months ended June 30, 2000 compared to $94,024
for the same period in 1999, a decrease of $53,786, or 57%. This decrease was
primarily attributable to an increase in proved reserves during the period ended
June 30, 2000 due to higher commodity prices, offset by an increase in oil
production of 379 barrels for the six months ended June 30, 2000 compared to the
same period in 1999.
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Three months ended June 30, 2000 compared with three months ended June 30, 1999
Revenues:
The Partnership's oil and gas revenues increased 69% to $447,770 for the three
months ended June 30, 2000 as compared to $265,731 for the same period in 1999.
The increase in revenues resulted from higher average prices received, offset by
a decrease in production. For the three months ended June 30, 2000, 10,617
barrels of oil, 6,110 barrels of NGLs and 23,850 mcf of gas were sold, or 20,702
BOEs. For the three months ended June 30, 1999, 10,609 barrels of oil, 7,264
barrels of NGLs and 28,207 mcf of gas were sold, or 22,574 BOEs.
The average price received per barrel of oil increased $12.81, or 86%, from
$14.85 for the three months ended June 30, 1999 to $27.66 for the same period in
2000. The average price received per barrel of NGLs increased $5.83, or 68%,
from $8.57 during the three months ended June 30, 1999 to $14.40 for the same
period in 2000. The average price received per mcf of gas increased 70% to $2.77
for the three months ended June 30, 2000 from $1.63 for the same period in 1999.
Costs and Expenses:
Total costs and expenses increased to $260,463 for the three months ended June
30, 2000 as compared to $227,039 for the same period in 1999, an increase of
$33,424, or 15%. This increase was due to higher production costs and G&A,
offset by a decline in depletion.
Production costs were $226,945 for the three months ended June 30, 2000 and
$187,295 for the same period in 1999 resulting in a $39,650 increase, or 21%.
This increase was the result of additional workover costs and well maintenance
expense incurred to stimulate well production and higher production taxes due to
higher oil and gas prices.
During this period, G&A increased, in aggregate, 70% from $8,752 for the three
months ended June 30, 1999 to $14,886 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 $18,632 for the three months ended June 30, 2000 compared to
$30,992 for the same period in 1999, a decrease of $12,360, or 40%. This
decrease was primarily attributable to an increase in proved reserves during the
period ended June 30, 2000 as a result of higher commodity prices.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $351,369 during the six
months ended June 30, 2000 from the same period in 1999. This increase was
attributable to an increase in oil and gas sales receipts of $439,352, offset by
increases in operating costs paid of $70,995 and G&A expenses paid of $16,988.
9
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Net Cash Used in Investing Activities
The Partnership's investment activities during the six months ended June 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 six months
ended June 30, 1999 from equipment credits on active properties.
Net Cash Used in Financing Activities
For the six months ended June 30, 2000, cash distributions to the partners were
$373,589, of which $90,377 was distributed to the general partners and $283,212
to the limited partners. For the six months ended June 30, 1999, $1,391 was
distributed to the general partners with no distribution 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: August 7, 2000 By: /s/ Rich Dealy
------------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
11
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