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 September 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 14 pages.
-There are no exhibits-
<PAGE>
PARKER & PARSLEY 83-B, LTD.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of September 30, 1996 and
December 31, 1995 .................................... 3
Statements of Operations for the three and nine
months ended September 30, 1996 and 1995................. 4
Statement of Partners' Capital for the nine months
ended September 30, 1996................................. 5
Statements of Cash Flows for the nine months ended
September 30, 1996 and 1995.............................. 6
Notes to Financial Statements.............................. 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...................... 9
Part II. Other Information
Item 1. Legal Proceedings.......................................... 13
Signatures................................................. 14
2
<PAGE>
PARKER & PARSLEY 83-B, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
September 30, December 31,
1996 1995
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $299,589 at September 30
and $243,858 at December 31 $ 300,139 $ 244,107
Accounts receivable - oil and gas sales 219,161 196,954
----------- -----------
Total current assets 519,300 441,061
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 19,518,445 20,977,361
Accumulated depletion (14,475,644) (15,667,506)
----------- -----------
Net oil and gas properties 5,042,801 5,309,855
----------- -----------
$ 5,562,101 $ 5,750,916
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 103,019 $ 113,554
Partners' capital:
Limited partners (23,370 interests) 4,847,280 5,009,377
General partners 611,802 627,985
----------- -----------
5,459,082 5,637,362
----------- -----------
$ 5,562,101 $ 5,750,916
=========== ===========
The financial information included as of September 30, 1996 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 OPERATIONS
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
--------------------- ----------------------
1996 1995 1996 1995
--------- --------- ---------- ----------
Revenues:
Oil and gas $ 511,155 $ 431,336 $1,596,286 $1,389,824
Interest 4,314 4,162 10,781 10,172
Litigation settlement - - 1,392,304 -
Salvage income from equipment
disposals - - 16,461 -
Gain on abandoned properties 18,597 776 50,718 35,073
-------- -------- --------- ---------
534,066 436,274 3,066,550 1,435,069
-------- -------- --------- ---------
Costs and expenses:
Oil and gas production 239,457 240,174 731,300 712,079
General and administrative 16,613 14,985 51,709 45,578
Depletion 78,379 146,934 280,963 475,229
Abandoned property 10,417 17,725 33,950 37,105
-------- -------- --------- ---------
344,866 419,818 1,097,922 1,269,991
-------- -------- --------- ---------
Net income $ 189,200 $ 16,456 $1,968,628 $ 165,078
======== ======== ========= =========
Allocation of net income
(loss):
General partners $ 58,149 $ 29,394 $ 480,140 $ 114,016
======== ======== ========= =========
Limited partners $ 131,051 $ (12,938) $1,488,488 $ 51,062
======== ======== ========= =========
Net income (loss) per limited
partnership interest $ 5.61 $ (.56) $ 63.69 $ 2.18
======== ======== ========= =========
Distributions per limited
partnership interest $ 8.20 $ 7.00 $ 70.63 $ 20.86
======== ======== ========= =========
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.
4
<PAGE>
PARKER & PARSLEY 83-B, LTD.
(A Texas Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
General Limited
partners partners Total
---------- ----------- -----------
Balance at January 1, 1996 $ 627,985 $ 5,009,377 $ 5,637,362
Distributions (496,323) (1,650,585) (2,146,908)
Net income 480,140 1,488,488 1,968,628
--------- ---------- ----------
Balance at September 30, 1996 $ 611,802 $ 4,847,280 $ 5,459,082
========= ========== ==========
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)
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended
September 30,
--------------------------
1996 1995
----------- ----------
Cash flows from operating activities:
Net income $ 1,968,628 $ 165,078
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 280,963 475,229
Gain on abandoned properties (50,718) (35,073)
Salvage income from equipment disposals (16,461) -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (22,207) 17,453
Increase (decrease) in accounts payable (23,011) 27,577
---------- ---------
Net cash provided by operating activities 2,137,194 650,264
---------- ---------
Cash flows from investing activities:
(Additions) disposals of oil and gas properties (1,433) 26,981
Proceeds from equipment salvage on abandoned
properties 50,718 35,073
Proceeds from salvage income from equipment
disposals 16,461 -
---------- ---------
Net cash provided by investing activities 65,746 62,054
---------- ---------
Cash flows from financing activities:
Cash distributions to partners (2,146,908) (644,566)
---------- ---------
Net increase in cash and cash equivalents 56,032 67,752
Cash and cash equivalents at beginning of period 244,107 160,065
---------- ---------
Cash and cash equivalents at end of period $ 300,139 $ 227,817
========== =========
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
<PAGE>
PARKER & PARSLEY 83-B, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 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 September 30, 1996 and for the three and nine months ended September 30, 1996
and 1995 include all adjustments and accruals consisting only of normal
recurring accrual adjustment 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 information and footnote disclosure 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 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
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.
7
<PAGE>
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
summary judgment against Dresser Industries and Baker Hughes for an amount yet
to be determined. Pursuant to their indemnity obligations, the Registrant,
Southmark, PPDLP and other original plaintiffs have vigorously protected the
rights of both Dresser and Baker Hughes. Southmark has vigorously pursued its
appeal of the judgment, and has 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. On June 28, 1996, a final distribution was made to the working
interest owners, including $1,094,360, or $46.83 per limited partnership
interest to the Registrant and its partners.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (1)
Results of Operations
Nine months ended September 30, 1996 compared with nine months ended September
30, 1995
Revenues:
The Registrant's oil and gas revenues increased to $1,596,286 from $1,389,824
for the nine months ended September 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 4% decrease in barrels of oil
produced and sold and a 13% decrease in mcf of gas produced and sold. For the
nine months ended September 30, 1996, 55,394 barrels of oil were sold compared
to 57,970 for the same period in 1995, a decrease of 2,576 barrels. For the nine
months ended September 30, 1996, 201,191 mcf of gas were sold compared to
230,256 for the same period in 1995, a decrease of 29,065 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
decline in production to continue in the future until the Registrant's
economically recoverable reserves are fully depleted.
The average price received per barrel of oil increased $3.65, or 21%, from
$17.33 for the nine months ended September 30, 1995 to $20.98 for the same
period in 1996 while the average price received per mcf of gas increased 29%
from $1.67 for the nine months ended September 30, 1995 to $2.16 for the same
period 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 nine months ended September 30, 1996.
Salvage income of $16,461 for the nine months ended September 30, 1996 was
derived from the disposal of equipment on three wells plugged and abandoned in
prior years.
A gain on abandoned properties of $50,718 was attributable to proceeds received
from equipment credits on two fully depleted wells, abandoned during the nine
months ended September 30, 1996. During the same period in 1995, a gain of
$35,073 on abandoned properties resulted from proceeds received from equipment
credits on one fully depleted property. Expenses incurred during 1996 to plug
and abandon two uneconomical wells totaled $33,950 compared to $37,105 for the
same period in 1995.
Costs and Expenses:
Total costs and expenses decreased to $1,097,922 for the nine months ended
September 30, 1996 as compared to $1,269,991 for the same period in 1995, a
decrease of $172,069, or 14%. This decrease was due to declines in depletion and
abandoned property costs, offset by an increase in production costs and general
and administrative expenses ("G&A").
9
<PAGE>
Production costs were $731,300 for the nine months ended September 30, 1996 and
$712,079 for the same period in 1995 resulting in a $19,221 increase, or 3%. The
increase was due to increases in well repair and maintenance costs and
production taxes, offset by lower 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, in aggregate, 13% from $45,578 for the nine months ended
September 30, 1995 to $51,709 for the same period in 1996.
Depletion was $280,963 for the nine months ended September 30, 1996 compared to
$475,229 for the same period in 1995, representing a decrease of $194,266, or
41%. This decrease was primarily attributable to the following factors: (i) a
reduction in the Registrant's net depletable basis from charges taken in
accordance with 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"), (ii) a reduction in oil production of 2,576 barrels for the
nine months ended September 30, 1996 as compared to the same period in 1995, and
(iii) an increase in oil and gas reserves during the third quarter of 1996 as a
result of higher commodity prices.
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
10
<PAGE>
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 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 yet
to be determined. Pursuant to their indemnity obligations, the Registrant,
Southmark, PPDLP and other original plaintiffs have vigorously protected the
rights of both Dresser and Baker Hughes. Southmark has vigorously pursued its
appeal of the judgment, and has 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. On June 28, 1996, a final distribution was made to the working
interest owners, including $1,094,360, or $46.83 per limited partnership
interest to the Registrant and its partners.
Three months ended September 30, 1996 compared with three months ended September
30, 1995
Revenues:
The Registrant's oil and gas revenues increased to $511,155 from $431,336 for
the three months ended September 30, 1996 and 1995, respectively, an increase of
19%. The increase in revenues resulted from higher average prices received per
barrel of oil and mcf of gas, offset by a 4% decrease in barrels of oil produced
and sold and a 23% decrease in mcf of gas produced and sold. For the three
months ended September 30, 1996, 17,421 barrels of oil were sold compared to
18,192 for the same period in 1995, a decrease of 771 barrels. For the three
months ended September 30, 1996, 65,090 mcf of gas were sold compared to 84,151
for the same period in 1995, a decrease of 19,061 mcf. The production volume
decreases were primarily due to the decline characteristics of the Registrant's
oil and gas properties.
11
<PAGE>
The average price received per barrel of oil increased $5.14, or 31%, from
$16.62 for the three months ended September 30, 1995 to $21.76 for the same
period in 1996, while the average price received per mcf of gas increased 33%
from $1.53 for the three months ended September 30, 1995 to $2.03 for the same
period in 1996.
A gain on abandoned properties of $18,597 was attributable to proceeds received
from equipment credits on two fully depleted wells, abandoned during the three
months ended September 30, 1996. During the same period in 1995, a gain of $776
on abandoned properties resulted from proceeds received from equipment credits
on one fully depleted property. Expenses incurred during 1996 to plug and
abandon two uneconomical wells totaled $10,417, compared to $17,725 for the same
period in 1995.
Costs and Expenses:
Total costs and expenses decreased to $344,866 for the three months ended
September 30, 1996 as compared to $419,818 for the same period in 1995, a
decrease of $74,952, or 18%. This decrease was due to declines in production
costs, depletion and abandoned property costs, offset by an increase in G&A.
Production costs were $239,457 for the three months ended September 30, 1996 and
$240,174 for the same period in 1995 resulting in a $717 decrease. The decrease
was due to a decline in well repair and maintenance costs.
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, 11% from $14,985 for the three months ended
September 30, 1995 to $16,613 for the same period in 1996.
Depletion was $78,379 for the three months ended September 30, 1996 compared to
$146,934 for the same period in 1995, representing a decrease of $68,555, or
47%, partially attributable to the following factors: (i) a reduction in the
Registrant's net depletable basis from charges taken in accordance with FAS 121,
(ii) a reduction in oil production of 771 barrels for the three months ended
September 30, 1996 as compared to the same period in 1995, and (iii) an increase
in oil and gas reserves during the third quarter of 1996 as a result of higher
commodity prices.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $1,486,930 during the nine
months ended September 30, 1996 from the same period ended September 30, 1995.
This increase was primarily due to proceeds received from the litigation
settlement as discussed in Note 3, in addition to an increase in oil and gas
sales, offset by an increase in production costs paid.
12
<PAGE>
Net Cash Provided by Investing Activities
The Registrant's investing activities during for the nine months ended September
30, 1996 included expenditures related to equipment replacement on various oil
and gas properties. The nine months ended September 30, 1995 included proceeds
received from the disposal of oil and gas equipment on active properties.
Proceeds of $50,718 and $35,073 were received from the salvage of equipment on
wells abandoned during the nine months ended September 30, 1996 and 1995,
respectively. Proceeds from salvage income on the sale of equipment from
properties abandoned in prior years totaled $16,461 during the nine months ended
September 30, 1996.
Net Cash Used in Financing Activities
Cash was sufficient for the nine months ended September 30, 1996 to cover
distributions to the partners of $2,146,908 of which $1,650,585 was distributed
to the limited partners and $496,323 to the general partners. For the same
period ended September 30, 1995, cash was sufficient for distributions to the
partners of $644,566 of which $487,582 was distributed to the limited partners
and $156,984 to the general partners.
Cash distributions to the partners of $2,146,908 for the nine months ended
September 30, 1996 include $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
During April 1996, the Registrant completed the settlement of a material
litigation to which it was a party. This litigation and settlement thereof is
described in Note 3 of Notes to Financial Statements above.
13
<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: November 11, 1996 By: /s/ Steven L. Beal
---------------------------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
14
<PAGE>
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<ARTICLE> 5
<CIK> 0000743457
<NAME> 83B.TXT
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 300,139
<SECURITIES> 0
<RECEIVABLES> 219,161
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 519,300
<PP&E> 19,518,445
<DEPRECIATION> 14,475,644
<TOTAL-ASSETS> 5,562,101
<CURRENT-LIABILITIES> 103,019
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 5,459,082
<TOTAL-LIABILITY-AND-EQUITY> 5,562,101
<SALES> 1,596,286
<TOTAL-REVENUES> 3,066,550
<CGS> 0
<TOTAL-COSTS> 1,097,922
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,968,628
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,968,628
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,968,628
<EPS-PRIMARY> 63.69
<EPS-DILUTED> 0
</TABLE>
