UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
/ x / Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 1997
or
/ / Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from _______ to _______
Commission File No. 2-81398B
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 10 pages.
-There are no exhibits-
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PARKER & PARSLEY 83-B, LTD.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of March 31, 1997 and
December 31, 1996........................................... 3
Statements of Operations for the three months
ended March 31, 1997 and 1996............................... 4
Statement of Partners' Capital for the three months
ended March 31, 1997........................................ 5
Statements of Cash Flows for the three months
ended March 31, 1997 and 1996............................... 6
Notes to Financial Statements................................. 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations......................... 7
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K.............................. 9
27. Financial Data Schedule
Signatures.................................................... 10
2
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PARKER & PARSLEY 83-B, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
March 31, December 31,
1997 1996
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $298,806 at March 31
and $228,437 at December 31 $ 299,306 $ 228,937
Accounts receivable - oil and gas sales 240,313 349,015
----------- -----------
Total current assets 539,619 577,952
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 19,520,111 19,519,571
Accumulated depletion (14,655,064) (14,559,884)
----------- -----------
Net oil and gas properties 4,865,047 4,959,687
----------- -----------
$ 5,404,666 $ 5,537,639
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 55,292 $ 48,087
Partners' capital:
General partners 607,635 629,059
Limited partners (23,370 interests) 4,741,739 4,860,493
----------- -----------
5,349,374 5,489,552
----------- -----------
$ 5,404,666 $ 5,537,639
=========== ===========
The financial information included as of March 31, 1997 has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
3
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PARKER & PARSLEY 83-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
---------------------------
1997 1996
---------- ----------
Revenues:
Oil and gas $ 570,063 $ 520,877
Interest 3,895 2,890
Salvage income from equipment disposals - 16,461
--------- ---------
573,958 540,228
--------- ---------
Costs and expenses:
Oil and gas production 275,580 263,298
General and administrative 18,886 15,876
Depletion 95,180 103,306
--------- ---------
389,646 382,480
--------- ---------
Net income $ 184,312 $ 157,748
========= =========
Allocation of net income:
General partners $ 60,801 $ 52,526
========= =========
Limited partners $ 123,511 $ 105,222
========= =========
Net income per limited partnership interest $ 5.29 $ 4.50
========= =========
Distributions per limited partnership interest $ 10.37 $ 7.00
========= =========
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
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PARKER & PARSLEY 83-B, LTD.
(A Texas Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
General Limited
partners partners Total
---------- ---------- ----------
Balance at January 1, 1997 $ 629,059 $4,860,493 $5,489,552
Distributions (82,225) (242,265) (324,490)
Net income 60,801 123,511 184,312
--------- --------- ---------
Balance at March 31, 1997 $ 607,635 $4,741,739 $5,349,374
========= ========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
5
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PARKER & PARSLEY 83-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
March 31,
-------------------------
1997 1996
---------- ----------
Cash flows from operating activities:
Net income $ 184,312 $ 157,748
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 95,180 103,306
Salvage income from equipment disposals - (16,461)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 108,702 (29,196)
Increase (decrease) in accounts payable 7,205 (54,300)
--------- ---------
Net cash provided by operating activities 395,399 161,097
--------- ---------
Cash flows from investing activities:
(Additions to) disposals of oil and gas
properties (540) 2,327
Proceeds from salvage income on equipment
disposals - 30,488
--------- ---------
Net cash provided by (used in) investing
activities (540) 32,815
--------- ---------
Cash flows from financing activities:
Cash distributions to partners (324,490) (219,393)
--------- ---------
Net increase (decrease) in cash and cash
equivalents 70,369 (25,481)
Cash and cash equivalents at beginning of period 228,937 244,107
--------- ---------
Cash and cash equivalents at end of period $ 299,306 $ 218,626
========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
6
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PARKER & PARSLEY 83-B, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
(Unaudited)
Note 1. Organization and nature of organization
Parker & Parsley 83-B, Ltd. (the "Partnership") is a limited partnership
organized in 1983 under the laws of the State of Texas.
The Partnership engages primarily in oil and gas development and production in
Texas and is not involved in any industry segment other than oil and gas.
Note 2. Basis of presentation
In the opinion of management, the unaudited financial statements as of March 31,
1997 of the Partnership include all adjustments and accruals consisting only of
normal recurring accrual adjustments which are necessary for a fair presentation
of the results for the interim period. However, these interim results are not
necessarily indicative of results for a full year.
The financial statements should be read in conjunction with the financial
statements and the notes thereto contained in the Partnership's Report on Form
10-K for the year ended December 31, 1996, as filed with the Securities and
Exchange Commission, a copy of which is available upon request by writing to
Steven L. Beal, Senior Vice President, 303 West Wall, Suite 101, Midland, Texas
79701.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (1)
Results of Operations
Revenues:
The Partnership's oil and gas revenues increased to $570,063 from $520,877 for
the three months ended March 31, 1997 and 1996, respectively, an increase of 9%.
The increase in revenues resulted from increases in the average prices received
per barrel of oil and mcf of gas, offset by an 8% decrease in barrels of oil
produced and sold and an 11% decrease in mcf of gas produced and sold. For the
three months ended March 31, 1997, 17,792 barrels of oil were sold compared to
19,345 for the same period in 1996, a decrease of 1,553 barrels. For the three
months ended March 31, 1997, 60,584 mcf of gas were sold compared to 68,398 for
the same period in 1996, a decrease of 7,814 mcf. The decreases in production
volumes were primarily due to the decline characteristics of the Partnership's
oil and gas properties. Because of these characteristics, management expects a
certain amount of decline in production to continue in the future until the
Partnership's economically recoverable reserves are fully depleted.
7
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The average price received per barrel of oil increased $2.82, or 15%, from
$19.14 for the three months ended March 31, 1996 to $21.96 for the same period
in 1997 while the average price received per mcf of gas increased 35% from $2.20
for the three months ended March 31, 1996 to $2.96 for the same period in 1997.
The market price for oil and gas has been extremely volatile in the past decade,
and management expects a certain amount of volatility to continue in the
foreseeable future. The Partnership may therefore sell its future oil and gas
production at average prices lower or higher than that received during the three
months ended March 31, 1997.
Salvage income of $16,461 for the three months ended March 31, 1996 was derived
from equipment credits received on three wells plugged and abandoned in prior
years.
Costs and Expenses:
Total costs and expenses increased to $389,646 for the three months ended March
31, 1997 as compared to $382,480 for the same period in 1996, an increase of
$7,166. This increase was due to increases in production costs and general and
administrative expenses ("G&A"), offset by a decrease in depletion.
Production costs were $275,580 for the three months ended March 31, 1997 and
$263,298 for the same period in 1996 resulting in a $12,282 increase, or 5%. The
increase was due to an increase in workover expenses incurred in an effort to
stimulate well production.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A
increased, in aggregate, 19% from $15,876 for the three months ended March 31,
1996 to $18,886 for the same period in 1997.
Depletion was $95,180 for the three months ended March 31, 1997 compared to
$103,306 for the same period in 1996. This represented a decrease in depletion
of $8,126, or 8%.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities:
Net cash provided by operating activities increased $234,302 during the three
months ended March 31, 1997 from the same period in 1996. This increase was due
to an increase in oil and gas sales receipts and a decrease in expenditures for
production costs.
Net Cash Provided by (Used in) Investing Activities:
The Partnership's investing activities for the three months ended March 31, 1997
and 1996 were related to the addition or disposal of oil and gas equipment on
active properties.
Proceeds of $30,488 were received during the three months ended March 31, 1996
from the disposal of oil and gas equipment on three wells plugged and abandoned
in prior years.
8
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Net Cash Used in Financing Activities:
For the three months ended March 31, 1997, cash was sufficient for distributions
to the partners of $324,490 of which $242,265 was distributed to the limited
partners and $82,225 to the general partners. For the same period ended March
31, 1996, cash was sufficient for distributions to the partners of $219,393 of
which $163,590 was distributed to the limited partners and $55,803 to the
general partners.
It is expected that future net cash provided by operating activities will be
sufficient for any capital expenditures and any distributions. As the production
from the properties declines, distributions are also expected to decrease.
- ---------------
(1) "Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations" contains forward looking statements that involve
risks and uncertainties. Accordingly, no assurances can be given that
the actual events and results will not be materially different than the
anticipated results described in the forward looking statements.
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K - none
9
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PARKER & PARSLEY 83-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: May 7, 1997 By: /s/ Steven L. Beal
-------------------------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
10
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 299,306
<SECURITIES> 0
<RECEIVABLES> 240,313
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 539,619
<PP&E> 19,520,111
<DEPRECIATION> 14,655,064
<TOTAL-ASSETS> 5,404,666
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0
0
<COMMON> 0
<OTHER-SE> 5,349,374
<TOTAL-LIABILITY-AND-EQUITY> 5,404,666
<SALES> 570,063
<TOTAL-REVENUES> 573,958
<CGS> 0
<TOTAL-COSTS> 389,646
<OTHER-EXPENSES> 0
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<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 184,312
<INCOME-TAX> 0
<INCOME-CONTINUING> 184,312
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 184,312
<EPS-PRIMARY> 5.29
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