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 June 30, 1996, 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. 2-81398B
PARKER & PARSLEY 83-B, LTD.
(Exact name of Registrant as specified in its charter)
Texas 75-1907245
(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 15 pages.
There are no exhibits.
<PAGE>
PARKER & PARSLEY 83-B, LTD.
(A Texas Limited Partnership)
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
BALANCE SHEETS
June 30, December 31,
1996 1995
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including
interest bearing deposits of $273,604
at June 30 and $243,858 at December 31 $ 274,104 $ 244,107
Accounts receivable - oil and gas sales 235,492 196,954
----------- -----------
Total current assets 509,596 441,061
Oil and gas properties - at cost, based
on the successful efforts accounting
method 19,514,033 20,977,361
Accumulated depletion (14,401,877) (15,667,506)
----------- -----------
Net oil and gas properties 5,112,156 5,309,855
----------- -----------
$ 5,621,752 $ 5,750,916
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 91,575 $ 113,554
Partners' capital:
Limited partners (23,370 interests) 4,907,882 5,009,377
General partners 622,295 627,985
----------- -----------
5,530,177 5,637,362
----------- -----------
$ 5,621,752 $ 5,750,916
=========== ===========
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.
2
<PAGE>
PARKER & PARSLEY 83-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1996 1995 1996 1995
---------- ---------- ---------- ----------
Revenues:
Oil and gas sales $ 564,254 $ 489,533 $1,085,131 $ 958,488
Interest income 3,577 3,416 6,467 6,010
Litigation settlement 1,392,304 - 1,392,304 -
Salvage income from
equipment disposals - - 16,461 -
Gain on abandoned
properties 32,121 13,176 32,121 34,297
--------- --------- --------- ---------
Total revenues 1,992,256 506,125 2,532,484 998,795
Costs and expenses:
Production costs 228,545 194,328 491,843 471,905
General and adminis-
trative expenses 19,220 16,530 35,096 30,593
Depletion 99,278 162,929 202,584 328,295
Abandoned property
costs 23,533 6,769 23,533 19,380
--------- --------- --------- ---------
Total costs and
expenses 370,576 380,556 753,056 850,173
--------- --------- --------- ---------
Net income $1,621,680 $ 125,569 $1,779,428 $ 148,622
========= ========= ========= =========
Allocation of net income:
General partners $ 369,465 $ 54,933 $ 421,991 $ 84,622
========= ========= ========= =========
Limited partners $1,252,215 $ 70,636 $1,357,437 $ 64,000
========= ========= ========= =========
Net income per limited
partnership interest $ 53.58 $ 3.02 $ 58.08 $ 2.74
========= ========= ========= =========
Distributions per limited
partnership interest $ 55.43 $ 7.50 $ 62.43 $ 13.86
========= ========= ========= =========
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.
3
<PAGE>
PARKER & PARSLEY 83-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
(Unaudited)
General Limited
partners partners Total
----------- ----------- -----------
Balance at January 1, 1995 $ 818,887 $ 6,829,253 $ 7,648,140
Distributions (107,219) (324,006) (431,225)
Net income 84,622 64,000 148,622
---------- ---------- ----------
Balance at June 30, 1995 $ 796,290 $ 6,569,247 $ 7,365,537
========== ========== ==========
Balance at January 1, 1996 $ 627,985 $ 5,009,377 $ 5,637,362
Distributions (427,681) (1,458,932) (1,886,613)
Net income 421,991 1,357,437 1,779,428
---------- ---------- ----------
Balance at June 30, 1996 $ 622,295 $ 4,907,882 $ 5,530,177
========== ========== ==========
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.
4
<PAGE>
PARKER & PARSLEY 83-B, LTD.
(A Texas Limited Partnership
STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
June 30,
1996 1995
---------- ----------
Cash flows from operating activities:
Net income $1,779,428 $ 148,622
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depletion 202,584 328,295
Gain on abandoned properties (32,121) (34,297)
Salvage income from equipment disposals (16,461) -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (38,538) 9,187
Increase (decrease) in accounts payable (34,455) 15,293
--------- ---------
Net cash provided by operating
activities 1,860,437 467,100
Cash flows from investing activities:
(Additions) deletions to oil and gas
properties 7,591 (3,456)
Proceeds from equipment salvage on
abandoned properties 32,121 34,297
Proceeds from salvage income from
equipment disposals 16,461 -
--------- ---------
Net cash provided by investing
activities 56,173 30,841
Cash flows from financing activities:
Cash distributions to partners (1,886,613) (431,225)
--------- ---------
Net increase in cash and cash
equivalents 29,997 66,716
Cash and cash equivalents at beginning
of period 244,107 160,065
--------- ---------
Cash and cash equivalents at end
of period $ 274,104 $ 226,781
========= =========
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
<PAGE>
PARKER & PARSLEY 83-B, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
(Unaudited)
NOTE 1.
Parker & Parsley 83-B, Ltd. (the "Registrant") is a limited partnership
organized in 1983 under the laws of the State of Texas.
The Registrant 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.
In the opinion of management, the Registrant's unaudited financial statements as
of June 30, 1996 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 Registrant's Report on Form
10-K for the year ended December 31, 1995, 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.
NOTE 3.
On May 25, 1993, a final settlement agreement was negotiated, drafted and
finally executed, ending litigation which had begun on September 5, 1989, when
the Registrant filed suit along with other parties against Dresser Industries,
Inc.; Titan Services, Inc.; BJ-Titan Services Company; BJ- Hughes Holding
Company; Hughes Tool Company; Baker Hughes Production Tools, Inc.; and Baker
Hughes Incorporated alleging that the defendants had intentionally failed to
provide the materials and services ordered and paid for by the Registrant and
other parties in connection with the fracturing and acidizing of 523 wells, and
then fraudulently concealed the shorting practice from Parker & Parsley
Development L.P. ("PPDLP"). The May 25, 1993 settlement agreement called for a
payment of $115 million in cash by the defendants, and Southmark, the
6
<PAGE>
Registrant, and the other plaintiffs indemnified the defendants against the
claims of Jack N. Price. The managing general partner received the funds,
deducted incurred legal expenses, accrued interest, determined the general
partner's portion of the funds and calculated any inter-partnership allocations.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G. "Zeke"
Lancaster in the Federal Court lawsuit, filed suit in State Court in Beaumont
against all of the plaintiff partnerships, including the Registrant and others,
alleging his entitlement to 12% of the settlement proceeds. Price's lawsuit
claim for approximately $13.8 million is predicated on a purported contract
entered into with Southmark Corporation in August 1988 in which he allegedly
binds the Registrant and the other defendants, as well as Southmark. Although
PPDLP believes the lawsuit was without merit and has vigorously defended it,
PPDLP has held in reserve approximately 12.5% of the total settlement (the
"Reserve") pending final resolution of the litigation.
A distribution of $91,000,000 was made to the working interest owners, including
the Registrant, on July 30, 1993. The limited partners received their
distribution of $11,250,167, or $481.39 per limited partnership interest, in
September 1993. The allocation of the lawsuit settlement amount was based on the
original verdict entered on October 26, 1990. The allocation to the working
interest owners in each well (including the Registrant) was based on a ratio of
the relative amount of damages due to overcharges for services and materials
("Materials") and damages for loss of past and future production ("Production"),
each as determined in that initial judgment. Within the Registrant, damages for
Materials were allocated between the partners based on their original sharing
percentages for costs of acquiring and/or drilling of wells. Similarly, damages
related to Production were allocated to the partners in the Registrant based on
their respective share of revenues from the subject wells.
As a condition of the purchase by Parker & Parsley Petroleum Company of Parker &
Parsley Development Company ("PPDC"), which was merged into PPDLP on January 1,
1995, from its former parent in May 1989, PPDC's interest in the lawsuit and
subsequent settlement was retained by the former parent. Consequently, all of
PPDC's share of the settlement related to its separately held interests in the
wells and its partnership interests in the sponsored partnerships (except that
portion allocable to interests acquired by PPDC after May 1989) was paid to the
former parent.
On September 20, 1995, the Beaumont trial judge entered a summary judgment
against Southmark for the $13,790,000 contingent fee sought by Price, together
with prejudgment interest, and also awarded Price an additional $5,498,525 in
attorneys' fees. On January 22, 1996, the trial judge entered an interlocutory
7
<PAGE>
summary judgment against Dresser Industries and Baker Hughes for an amount to be
determined. Pursuant to their indemnity obligations, the Registrant, Southmark,
PPDLP and other original plaintiffs vigorously protected the rights of both
Dresser and Baker Hughes. Southmark vigorously pursued its appeal of the
judgment, and posted a supersedeas bond using the Reserve as collateral. On
April 29, 1996, all of the parties, including the Registrant and Southmark,
entered into a $7.4 million settlement with Price which fully and finally
resolves all of the litigation and disputes between the parties, including the
Registrant's indemnity obligations to Dresser and Baker Hughes.
Pursuant to the settlement agreement, all of the pending lawsuits and judgments
have been dismissed, the supersedeas bond released, and the Reserve released as
collateral. The managing general partner conducted an accounting of income and
expenses among the parties, and, on June 28, 1996, made a final $9.3 million
distribution to the working interest owners, including the Registrant and its
partners, resulting in a distribution of $1,094,360 to the limited partners, or
$46.83 per limited partnership interest. The distribution was allocated to the
limited partners using the same methodology as the original $91 million
distribution in 1993.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (1)
Results of Operations
Six months ended June 30, 1996 compared with six months ended June 30, 1995
Revenues:
The Registrant's oil and gas revenues increased to $1,085,131 from $958,488 for
the six months ended June 30, 1996 and 1995, respectively, an increase of 13%.
The increase in revenues resulted from higher average prices received for both
oil and gas, offset by a 5% decrease in barrels of oil produced and sold and a
7% decrease in mcf of gas produced and sold. For the six months ended June 30,
1996, 37,973 barrels of oil were sold compared to 39,778 for the same period in
1995, a decrease of 1,805 barrels. For the six months ended June 30, 1996,
136,101 mcf of gas were sold compared to 146,105 for the same period in 1995, a
decrease of 10,004 mcf. The production volume decreases were primarily due to
the decline characteristics of the Registrant's oil and gas properties.
Management expects a certain amount of production decline to continue in the
future until the Registrant's economically recoverable reserves are fully
depleted.
8
<PAGE>
The average price received per barrel of oil increased $2.98, or 17%, from
$17.65 for the six months ended June 30, 1995 to $20.63 for the same period in
1996 while the average price received per mcf of gas increased 26% from $1.76
during the six months ended June 30, 1995 to $2.22 in 1996. 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 Registrant 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,
1996.
Salvage income of $16,461 for the six months ended June 30, 1996 was derived
from the disposal of equipment on three wells plugged and abandoned in prior
years.
A gain on abandoned properties of $32,121 was realized during the six months
ended June 30, 1996, attributable to proceeds received from equipment credits on
two fully depleted wells. During the same period in 1995, a gain of $34,297 on
abandoned properties resulted from proceeds received from equipment credits
received on one fully depleted property. Expenses incurred during 1996 to plug
and abandon two uneconomical wells totaled $23,533, compared to $19,380 for the
same period in 1995.
Costs and Expenses:
Total costs and expenses decreased to $753,056 for the six months ended June 30,
1996 as compared to $850,173 for the same period in 1995, a decrease of $97,117,
or 11%. This decrease resulted from a decline in depletion, offset by increases
in production costs, general and administrative expenses ("G&A") and abandoned
property costs.
Production costs were $491,843 for the six months ended June 30, 1996 and
$471,905 for the same period in 1995 resulting in a $19,938 increase, or 4%. The
increase was due to increases in well repair and maintenance costs and
production taxes, offset by a decrease in ad valorem taxes.
G&A's components are independent accounting and engineering fees, computer
services, postage and managing general partner personnel costs. During this
period, G&A increased 15% from $30,593 for the six months ended June 30, 1995 to
$35,096 for the same period in 1996.
Depletion was $202,584 for the six months ended June 30, 1996 compared to
$328,295 for the same period in 1995. This represented a decrease in depletion
of $125,711, or 38%, primarily attributable to the adoption of the provisions of
Statement of Financial Accounting Standards No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of"
("FAS 121") effective the fourth quarter of 1995 and the reduction of net
9
<PAGE>
depletable basis resulting from the charge taken upon such adoption. Depletion
was computed property-by-property utilizing the unit-of-production method based
upon the dominant mineral produced, generally oil. Oil production decreased
1,805 barrels for the six months ended June 30, 1996 from the same period in
1995, while oil reserves of barrels were revised downward by 9,760 barrels.
On May 25, 1993, a final settlement agreement was negotiated, drafted and
finally executed, ending litigation which had begun on September 5, 1989, when
the Registrant filed suit along with other parties against Dresser Industries,
Inc.; Titan Services, Inc.; BJ-Titan Services Company; BJ- Hughes Holding
Company; Hughes Tool Company; Baker Hughes Production Tools, Inc.; and Baker
Hughes Incorporated alleging that the defendants had intentionally failed to
provide the materials and services ordered and paid for by the Registrant and
other parties in connection with the fracturing and acidizing of 523 wells, and
then fraudulently concealed the shorting practice from PPDLP. The May 25, 1993
settlement agreement called for a payment of $115 million in cash by the
defendants, and Southmark, the Registrant, and the other plaintiffs indemnified
the defendants against the claims of Jack N. Price. The managing general partner
received the funds, deducted incurred legal expenses, accrued interest,
determined the general partner's portion of the funds and calculated any
inter-partnership allocations.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G. "Zeke"
Lancaster in the Federal Court lawsuit, filed suit in State Court in Beaumont
against all of the plaintiff partnerships, including the Registrant and others,
alleging his entitlement to 12% of the settlement proceeds. Price's lawsuit
claim for approximately $13.8 million is predicated on a purported contract
entered into with Southmark Corporation in August 1988 in which he allegedly
binds the Registrant and the other defendants, as well as Southmark. Although
PPDLP believes the lawsuit was without merit and has vigorously defended it,
PPDLP has held in reserve approximately 12.5% of the total settlement (the
"Reserve") pending final resolution of the litigation.
A distribution of $91,000,000 was made to the working interest owners, including
the Registrant, on July 30, 1993. The limited partners received their
distribution of $11,250,167, or $481.39 per limited partnership interest, in
September 1993. The allocation of the lawsuit settlement amount was based on the
original verdict entered on October 26, 1990. The allocation to the working
interest owners in each well (including the Registrant) was based on a ratio of
the relative amount of damages due to overcharges for services and materials
("Materials") and damages for loss of past and future production ("Production"),
each as determined in that initial judgment. Within the Registrant, damages for
Materials were allocated between the partners based on their original sharing
10
<PAGE>
percentages for costs of acquiring and/or drilling of wells. Similarly, damages
related to Production were allocated to the partners in the Registrant based on
their respective share of revenues from the subject wells.
As a condition of the purchase by Parker & Parsley Petroleum Company of PPDC,
which was merged into PPDLP on January 1, 1995, from its former parent in May
1989, PPDC's interest in the lawsuit and subsequent settlement was retained by
the former parent. Consequently, all of PPDC's share of the settlement related
to its separately held interests in the wells and its partnership interests in
the sponsored partnerships (except that portion allocable to interests acquired
by PPDC after May 1989) was paid to the former parent.
On September 20, 1995, the Beaumont trial judge entered a summary judgment
against Southmark for the $13,790,000 contingent fee sought by Price, together
with prejudgment interest, and also awarded Price an additional $5,498,525 in
attorneys' fees. On January 22, 1996, the trial judge entered an interlocutory
summary judgment against Dresser Industries and Baker Hughes for an amount to be
determined. Pursuant to their indemnity obligations, the Registrant, Southmark,
PPDLP and other original plaintiffs vigorously protected the rights of both
Dresser and Baker Hughes. Southmark vigorously pursued its appeal of the
judgment, and posted a supersedeas bond using the Reserve as collateral. On
April 29, 1996, all of the parties, including the Registrant and Southmark,
entered into a $7.4 million settlement with Price which fully and finally
resolves all of the litigation and disputes between the parties, including the
Registrant's indemnity obligations to Dresser and Baker Hughes.
Pursuant to the settlement agreement, all of the pending lawsuits and judgments
have been dismissed, the supersedeas bond released, and the Reserve released as
collateral. The managing general partner conducted an accounting of income and
expenses among the parties, and, on June 28, 1996, made a final $9.3 million
distribution to the working interest owners, including the Registrant and its
partners, resulting in a distribution of $1,094,360 to the limited partners, or
$46.83 per limited partnership interest. The distribution was allocated to the
limited partners using the same methodology as the original $91 million
distribution in 1993.
11
<PAGE>
Three months ended June 30, 1996 compared with three months ended June 30, 1995
Revenues:
The Registrant's oil and gas revenues increased to $564,254 from $489,533 for
the three months ended June 30, 1996 and 1995, respectively, an increase of 15%.
The increase in revenues resulted from higher average prices received per barrel
of oil and mcf of gas, offset by a 5% decrease in barrels of oil produced and
sold and a 19% decrease in mcf of gas produced and sold. For the three months
ended June 30, 1996, 18,628 barrels of oil were sold compared to 19,526 for the
same period in 1995, a decrease of 898 barrels. For the three months ended June
30, 1996, 67,703 mcf of gas were sold compared to 83,903 for the same period in
1995, a decrease of 16,200 mcf. The production volume decreases were primarily
due to the decline characteristics of the Registrant's oil and gas properties.
The average price received per barrel of oil increased $4.09, or 23%, from
$18.08 for the three months ended June 30, 1995 to $22.17 for the three months
ended June 30, 1996 while the average price received per mcf of gas increased
37% from $1.63 during the three months ended June 30, 1995 to $2.23 for the same
period in 1996.
A gain on abandoned properties of $32,121 was realized during the three months
ended June 30, 1996, attributable to proceeds received from equipment credits on
two fully depleted wells. During the same period in 1995, a gain of $13,176 on
abandoned properties resulted from proceeds received from equipment credits
received on one fully depleted well. Expenses incurred during 1996 to plug and
abandon two uneconomical wells totaled $23,533 compared to $6,769 for the same
period in 1995.
Costs and Expenses:
Total costs and expenses decreased to $370,576 for the three months ended June
30, 1996 as compared to $380,556 for the same period in 1995, a decrease of
$9,980, or 3%. This decrease resulted from a decline in depletion, offset by
increases in production costs, G&A and abandoned property costs.
Production costs were $228,545 for the three months ended June 30, 1996 and
$194,328 for the same period in 1995 resulting in a $34,217 increase, or 18%.
The increase was due to additional well repair and maintenance costs and
production taxes, offset by a decrease in ad valorem taxes.
12
<PAGE>
G&A's components are independent accounting and engineering fees, computer
services, postage and managing general partner personnel costs. During this
period, G&A increased, in aggregate, 16% from $16,530 for the three months ended
June 30, 1995 to $19,220 for the same period in 1996.
Depletion was $99,278 for the three months ended June 30, 1996 compared to
$162,929 for the same period in 1995. This represented a decrease in depletion
of $63,651, or 39%, primarily attributable to the adoption of FAS 121 effective
the fourth quarter of 1995, as discussed previously. Oil production decreased
898 barrels for the three months ended June 30, 1996 from the same period in
1995.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased during the six months ended
June 30, 1996 $1,393,337 from the same period ended June 30, 1995. This increase
was primarily due to proceeds received from the litigation settlement as
discussed in Note 3.
Net Cash Provided by Investing Activities
The Registrant's investing activities during the six months ended June 30, 1996
included proceeds from the disposal of oil and gas equipment on active
properties. The six months ended June 30, 1995 included expenditures related to
equipment replacement on various oil and gas properties.
Proceeds were also received from the salvage of equipment on wells abandoned
during the six months ended June 30, 1996 and 1995, and from the sale of
equipment from properties abandoned in prior years.
Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1996 to cover
distributions to the partners of $1,886,613 of which $1,458,932 was distributed
to the limited partners and $427,681 to the general partners. For the same
period ended June 30, 1995, cash was sufficient for distributions to the
partners of $431,225 of which $324,006 was distributed to the limited partners
and $107,219 to the general partners.
13
<PAGE>
Cash distributions to the partners of $1,886,613 for the six months ended June
30, 1996 included $1,094,360 to the limited partners and $297,944 to the general
partners, resulting from proceeds received in the litigation settlement as
discussed in Note 3.
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 1. LEGAL PROCEEDINGS
The Registrant is party to material litigation which is described in Note 3 of
Notes to Financial Statements above.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - none
(b) Reports on Form 8-K - none
14
<PAGE>
PARKER & PARSLEY 83-B, 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-B, LTD.
By: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: August 9, 1996 By: /s/ Steven L. Beal
---------------------------------------
Steven L. Beal, Senior Vice
President and Chief Financial
Officer of PPUSA
15
<PAGE>
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<ARTICLE> 5
<CIK> 0000743457
<NAME> 83B.TXT
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 274,104
<SECURITIES> 0
<RECEIVABLES> 235,492
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 509,596
<PP&E> 19,514,033
<DEPRECIATION> 14,401,877
<TOTAL-ASSETS> 5,621,752
<CURRENT-LIABILITIES> 91,575
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 5,530,177
<TOTAL-LIABILITY-AND-EQUITY> 5,621,752
<SALES> 1,085,131
<TOTAL-REVENUES> 2,532,484
<CGS> 0
<TOTAL-COSTS> 753,056
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,779,428
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,779,428
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,779,428
<EPS-PRIMARY> 58.08
<EPS-DILUTED> 0
</TABLE>
