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 March 31, 2000
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)
1400 Williams Square West, 5205 N. O'Connor Blvd., Irving, Texas 75039
- ---------------------------------------------------------------- ---------
(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-B, LTD.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of March 31, 2000 and
December 31, 1999...................................... 3
Statements of Operations for the three months
ended March 31, 2000 and 1999........................... 4
Statement of Partners' Capital for the three months
ended March 31, 2000.................................... 5
Statements of Cash Flows for the three months
ended March 31, 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-B, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
March 31, December 31,
2000 1999
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash $ 254,027 $ 244,091
Accounts receivable - oil and gas sales 297,533 263,774
----------- -----------
Total current assets 551,560 507,865
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 19,500,879 19,500,569
Accumulated depletion (17,646,760) (17,616,893)
----------- -----------
Net oil and gas properties 1,854,119 1,883,676
----------- -----------
$ 2,405,679 $ 2,391,541
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 50,602 $ 42,935
Partners' capital:
General partners 314,175 309,240
Limited partners (23,370 interests) 2,040,902 2,039,366
----------- -----------
2,355,077 2,348,606
----------- -----------
$ 2,405,679 $ 2,391,541
=========== ===========
The financial information included as of March 31, 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-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
---------------------------
2000 1999
---------- ----------
Revenues:
Oil and gas $ 550,469 $ 241,121
Interest 3,909 1,953
Gain on disposition of assets 3,923 -
--------- -------
558,301 243,074
--------- ---------
Costs and expenses:
Oil and gas production 232,950 206,189
General and administrative 16,889 9,139
Depletion 29,860 81,614
--------- ---------
279,699 296,942
--------- ---------
Net income (loss) $ 278,602 $ (53,868)
========= =========
Allocation of net income (loss):
General partners $ 73,635 $ (749)
========= =========
Limited partners $ 204,967 $ (53,119)
========= =========
Net income (loss) per limited
partnership interest $ 8.77 $ (2.27)
========= =========
Distributions per limited
partnership interest $ 8.70 $ .96
========= =========
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-B, LTD.
(A Texas Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
General Limited
partners partners Total
---------- ---------- ----------
Balance at January 1, 2000 $ 309,240 $2,039,366 $2,348,606
Distributions (68,700) (203,431) (272,131)
Net income 73,635 204,967 278,602
--------- --------- ---------
Balance at March 31, 2000 $ 314,175 $2,040,902 $2,355,077
========= ========= =========
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-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
March 31,
-------------------------
2000 1999
---------- ----------
Cash flows from operating activities:
Net income (loss) $ 278,602 $ (53,868)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depletion 29,860 81,614
Gain on disposition of assets (3,923) -
Changes in assets and liabilities:
Accounts receivable (33,759) (11,617)
Accounts payable 7,667 15,438
--------- ---------
Net cash provided by operating
activities 278,447 31,567
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (303) (69)
Proceeds from asset disposition 3,923 -
--------- ---------
Net cash provided by (used in)
investing activities 3,620 (69)
--------- ---------
Cash flows used in financing activities:
Cash distributions to partners (272,131) (31,077)
--------- ---------
Net increase in cash 9,936 421
Cash at beginning of period 244,091 173,699
--------- ---------
Cash at end of period $ 254,027 $ 174,120
========= =========
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-B, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(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 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 March 31, 2000 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 March 31, 1999 financial statements to conform to the
March 31, 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
Revenues:
The Partnership's oil and gas revenues increased 128% to $550,469 for the three
months ended March 31, 2000 as compared to $241,121 for the same period in 1999.
The increase in revenues resulted from higher average prices received and an
increase in production. For the three months ended March 31, 2000, 13,733
barrels of oil, 8,049 barrels of natural gas liquids ("NGLs") and 35,379 mcf of
gas were sold, or 27,679 barrel of oil equivalents ("BOEs"). For the three
months ended March 31, 1999, 14,283 barrels of oil, 6,157 barrels of NGLs and
32,543 mcf of gas were sold, or 25,864 BOEs.
7
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The average price received per barrel of oil increased $15.94, or 136%, from
$11.72 for the three months ended March 31, 1999 to $27.66 for the same period
in 2000. The average price received per barrel of NGLs increased $8.05, or 148%,
from $5.43 for the three months ended March 31, 1999 to $13.48 for the same
period in 2000. The average price received per mcf of gas increased 42% from
$1.24 during the three months ended March 31, 1999 to $1.76 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
three months ended March 31, 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.
A gain on disposition of assets of $3,923 during 2000 was recognized from
equipment credits received on one fully depleted well.
Costs and Expenses:
Total costs and expenses decreased to $279,699 for the three months ended March
31, 2000 as compared to $296,942 for the same period in 1999, a decrease of
$17,243, or 6%. This decrease was due to a decrease in depletion, offset by
increases in production costs and general and administrative expenses ("G&A").
Production costs were $232,950 for the three months ended March 31, 2000 and
$206,189 for the same period in 1999 resulting in a $26,761 increase, or 13%.
The increase was due to higher production taxes due to increased oil and gas
revenues and well maintenance costs 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, 85% from $9,139 for the three months ended March 31,
1999 to $16,889 for the same period in 2000 primarily due to increased oil and
gas revenues.
Depletion was $29,860 for the three months ended March 31, 2000 compared to
$81,614 for the same period in 1999, a decrease of $51,754, or 63%. This
decrease was the result of a combination of factors that included an increase in
proved reserves during the three months ended March 31, 2000 due to higher
commodity prices, a reduction in the Partnership'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" ("SFAS 121") during the fourth quarter of 1999 and a
decline in oil production of 550 barrels for the three months ended March 31,
2000 compared to the same period in 1999.
8
<PAGE>
Liquidity and Capital Resources
Net Cash Provided by Operating Activities:
Net cash provided by operating activities increased $246,880 during the three
months ended March 31, 2000 from the same period in 1999. The increase was
primarily attributable to an increase of $289,162 in oil and gas sales receipts,
offset by increases in operating costs paid of $30,146 and G&A expenses paid of
$12,136.
Cash Provided by (Used in) Investing Activities:
The Partnership's investing activities for the three months ended March 31, 2000
and 1999 were for expenditures related to oil and gas equipment upgrades on
active properties.
Proceeds from asset dispositions of $3,923 recognized during the three months
ended March 31, 2000 were from equipment credits received on one fully depleted
well.
Net Cash Used in Financing Activities:
For the three months ended March 31, 2000, cash distributions to the partners
were $272,131, of which $68,700 was distributed to the general partners and
$203,431 to the limited partners. For the same period ended March 31, 1999, cash
distributions to the partners were $31,077, of which $8,640 was distributed to
the general partners and $22,437 to the limited partners.
Other Items
Year 2000
During 1998, the managing general partner established a "Year 2000" project that
assessed the Partnership's and the managing general partner's internal Year 2000
problem; took remedial actions necessary to minimize the Year 2000 risk exposure
to the managing general partner and third parties; and, tested the managing
general partner's systems and processes once remedial actions were taken.
The managing general partner has closely monitored its information and
non-information technology systems since the beginning of 2000 and has
identified no significant Year 2000 failures or problems.
- ---------------
(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.
9
<PAGE>
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-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: Pioneer Natural Resources USA, Inc.
Managing General Partner
Dated: May 8, 2000 By: /s/ Rich Dealy
------------------------------
Rich Dealy, Vice President
and Chief Accounting Officer
11
<PAGE>
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<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 254,027
<SECURITIES> 0
<RECEIVABLES> 297,533
<ALLOWANCES> 0
<INVENTORY> 0
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<PP&E> 19,500,879
<DEPRECIATION> 17,646,760
<TOTAL-ASSETS> 2,405,679
<CURRENT-LIABILITIES> 50,602
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0
0
<COMMON> 0
<OTHER-SE> 2,355,077
<TOTAL-LIABILITY-AND-EQUITY> 2,405,679
<SALES> 550,469
<TOTAL-REVENUES> 558,301
<CGS> 0
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<INCOME-PRETAX> 278,602
<INCOME-TAX> 0
<INCOME-CONTINUING> 278,602
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 278,602
<EPS-BASIC> 8.77
<EPS-DILUTED> 0
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