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. 2-81398B
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
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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-B, 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-B, 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 $ 260,435 $ 244,091
Accounts receivable - oil and gas sales 285,146 263,774
----------- -----------
Total current assets 545,581 507,865
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 19,505,691 19,500,569
Accumulated depletion (17,669,231) (17,616,893)
----------- -----------
Net oil and gas properties 1,836,460 1,883,676
----------- -----------
$ 2,382,041 $ 2,391,541
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 64,858 $ 42,935
Partners' capital:
General partners 307,796 309,240
Limited partners (23,370 interests) 2,009,387 2,039,366
----------- -----------
2,317,183 2,348,606
----------- -----------
$ 2,382,041 $ 2,391,541
=========== ===========
</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-B, 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 $ 545,418 $ 379,880 $1,095,887 $ 621,001
Interest 5,180 2,383 9,089 4,336
Gain on disposition of assets 1,428 - 5,351 -
-------- -------- --------- --------
552,026 382,263 1,110,327 625,337
-------- -------- --------- --------
Costs and expenses:
Oil and gas production 247,177 210,785 480,127 416,974
General and administrative 17,899 12,187 34,788 21,326
Depletion 22,471 38,612 52,331 120,226
-------- -------- --------- --------
287,547 261,584 567,246 558,526
-------- -------- --------- --------
Net income $ 264,479 $ 120,679 $ 543,081 $ 66,811
======== ======== ========= ========
Allocation of net income:
General partners $ 69,659 $ 36,160 $ 143,294 $ 35,411
======== ======== ========= ========
Limited partners $ 194,820 $ 84,519 $ 399,787 $ 31,400
======== ======== ========= ========
Net income per limited
partnership interest $ 8.34 $ 3.61 $ 17.11 $ 1.34
======== ======== ========= ========
</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-B, 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 $ 309,240 $2,039,366 $2,348,606
Distributions (144,738) (429,766) (574,504)
Net income 143,294 399,787 543,081
--------- --------- ---------
Balance at June 30, 2000 $ 307,796 $2,009,387 $2,317,183
========= ========= =========
</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-B, 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 $ 543,081 $ 66,811
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 52,331 120,226
Gain on disposition of assets (5,351) -
Changes in assets and liabilities:
Accounts receivable (21,372) (79,147)
Accounts payable 21,923 24,951
--------- ---------
Net cash provided by operating activities 590,612 132,841
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (5,122) (2,390)
Proceeds from asset disposition 5,358 470
--------- ---------
Net cash provided by (used in)
investing activities 236 (1,920)
--------- ---------
Cash flows used in financing activities:
Cash distributions to partners (574,504) (88,213)
--------- ---------
Net increase in cash 16,344 42,708
Cash at beginning of period 244,091 173,699
--------- ---------
Cash at end of period $ 260,435 $ 216,407
========= =========
</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-B, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 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 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. 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 76% to $1,095,887 for the six
months ended June 30, 2000 as compared to $621,001 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, 25,927 barrels
of oil, 16,013 barrels of natural gas liquids ("NGLs") and 70,252 mcf of gas
7
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were sold, or 53,649 barrel of oil equivalents ("BOEs"). For the six months
ended June 30, 1999, 27,730 barrels of oil, 17,155 barrels of NGLs and 79,292
mcf of gas were sold, or 58,100 BOEs.
The average price received per barrel of oil increased $14.45, or 108%, from
$13.33 for the six months ended June 30, 1999 to $27.78 for the same period in
2000. The average price received per barrel of NGLs increased $6.16, or 78%,
from $7.94 during the six months ended June 30, 1999 to $14.10 for the same
period in 2000. The average price received per mcf of gas increased 47% from
$1.45 during the six months ended June 30, 1999 to $2.13 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.
A gain on disposition of assets of $5,351 was recognized during the six months
ended June 30, 2000 from equipment credits received on a fully depleted well.
Costs and Expenses:
Total costs and expenses increased to $567,246 for the six months ended June 30,
2000 as compared to $558,526 for the same period in 1999, an increase of $8,720,
or 2%. This increase resulted from higher production costs and general and
administrative expenses ("G&A"), offset by a decline in depletion.
Production costs were $480,127 for the six months ended June 30, 2000 and
$416,974 for the same period in 1999 resulting in a $63,153 increase, or 15%.
The increase was the result of higher production taxes due to increased oil and
gas revenues and additional well maintenance costs incurred to stimulate
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, 63% from $21,326 for the six months ended June 30, 1999
to $34,788 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 $52,331 for the six months ended June 30, 2000 compared to
$120,226 for the same period in 1999, a decrease of $67,895, or 56%. This
decrease was primarily attributable to an increase in proved reserves for the
period ended June 30, 2000 due to higher commodity prices, a decline in oil
production of 1,803 barrels for the six months ended June 30, 2000 compared to
the same period in 1999 and 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.
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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 44% to $545,418 for the three
months ended June 30, 2000 as compared to $379,880 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, 12,194
barrels of oil, 7,964 barrels of NGLs and 34,873 mcf of gas were sold, or 25,970
BOEs. For the three months ended June 30, 1999, 13,447 barrels of oil, 10,998
barrels of NGLs and 46,749 mcf of gas were sold, or 32,237 BOEs.
The average price received per barrel of oil increased $12.86, or 85%, from
$15.05 for the three months ended June 30, 1999 to $27.91 for the three months
ended June 30, 2000. The average price received per barrel of NGLs increased
$5.38, or 58%, from $9.34 during the three months ended June 30, 1999 to $14.72
for the same period in 2000. The average price received per mcf of gas increased
58% from $1.60 during the three months ended June 30, 1999 to $2.52 for the same
period in 2000.
A gain on disposition of assets of $1,428 was recognized during the three months
ended June 30, 2000 from equipment credits received on a fully depleted well.
Costs and Expenses:
Total costs and expenses increased to $287,547 for the three months ended June
30, 2000 as compared to $261,584 for the same period in 1999, an increase of
$25,963, or 10%. This increase was due to higher production costs and G&A,
offset by a decline in depletion.
Production costs were $247,177 for the three months ended June 30, 2000 and
$210,785 for the same period in 1999 resulting in a $36,392 increase, or 17%.
This increase was the result of additional well maintenance costs incurred to
stimulate production and higher production taxes due to higher oil and gas
prices.
During this period, G&A increased, in aggregate, 47% from $12,187 for the three
months ended June 30, 1999 to $17,899 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 $22,471 for the three months ended June 30, 2000 compared to
$38,612 for the same period in 1999, a decrease of $16,141, or 42%. 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, a decline in
oil production of 1,253 barrels for the three months ended June 30, 2000
compared to the same period in 1999 and a reduction in the Partnership's net
depletable basis from charges taken in accordance with SFAS 121 during the
fourth quarter of 1999.
9
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Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $457,771 during the six
months ended June 30, 2000 from the same period in 1999. This increase was due
to an increase in oil and gas sales receipts of $537,414, offset by increases in
operating costs paid of $58,962 and G&A expenses paid of $20,681.
Net Cash Provided by (Used in) Investing Activities
The Partnership's investing activities during the six months ended June 30, 2000
and 1999 were related to oil and gas equipment upgrades on active properties.
Proceeds from asset disposition of $5,358 and $470 were received during the six
months ended June 30, 2000 and 1999, respectively, 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
$574,504, of which $144,738 was distributed to the general partners and $429,766
to the limited partners. For the same period ended June 30, 1999, cash
distributions to the partners were $88,213, of which $23,875 was distributed to
the general partners and $64,338 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-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: August 7, 2000 By: /s/ Rich Dealy
------------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
11
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