UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
MARK ONE
x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1996
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 0-89194
MAY DRILLING PARTNERSHIP 1984-2
MAY LIMITED PARTNERSHIP 1984-2
(Exact name of registrant as specified in its charter)
75-1985009
TEXAS 75-1985008
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
4582 SOUTH ULSTER STREET PARKWAY
SUITE 1700
DENVER, COLORADO 80237
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code:
(303) 850-7373
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
<TABLE>
<CAPTION>
MAY DRILLING PARTNERSHIP 1984-2
BALANCE SHEETS
(In thousands)
March 31, December 31,
1996 1995
(Unaudited)
<S> <C> <C>
ASSETS
Investment in
May Limited Partnership 1984-2 $534 $296
=== ===
PARTNERS' CAPITAL
Partners' Capital $534 $296
=== ===
<F1>
NOTE: The statements of operations and cash flows for May Drilling
Partnership 1984-2 are not presented because such information is
equal to the limited partner's share of such activity as presented
in the May Limited Partnership 1984-2 financial statements. The May
Drilling Partnership carries its investment in May Limited
Partnership 1984-2 on the equity method. The May Limited
Partnership 1984-2 financial statements should be read in
conjunction with these balance sheets.
</TABLE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-2
BALANCE SHEETS
(In thousands)
March 31, December 31,
1996 1995
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 343 $ 250
Accrued oil and gas sales 344 245
Due from affiliate 230 75
Contributions receivable from
general partner 27
------- ------
Total 917 597
------ ------
OIL AND GAS PROPERTIES, using the
full cost method of accounting 10,359 10,359
Less - Accumulated depletion (10,359) (10,359)
------ ------
Net oil and gas properties - -
------ ------
TOTAL ASSETS $ 917 $ 597
====== ======
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable and accrued
liabilities $ 16 $ 17
------ ------
Total 16 17
------ ------
PARTNERS' CAPITAL
General partner 367 284
Limited partner 534 296
------ ------
Total 901 580
------ ------
TOTAL LIABILITIES AND PARTNERS'
CAPITAL $ 917 $ 597
====== ======
</TABLE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-2
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Three Months
Ended March 31,
1996 1995
<S> <C> <C>
REVENUES
Oil revenue $ 196 $ 111
Gas revenue 432 119
Interest income 3 3
------ ------
Total 631 233
------ ------
COSTS AND EXPENSES
Lease operating 8 7
Production taxes 35 18
General and administrative 10 11
Depletion 2
Professional services and other
4 4
------ ------
Total 57 42
------ ------
NET INCOME $ 574 $ 191
====== ======
ALLOCATION OF NET INCOME:
General Partner $ 181 $ 63
====== ======
Limited Partner $ 393 $ 128
====== ======
Per initial $1,000 limited
partner investment $ 45.52 $ 14.83
====== ======
Weighted average initial $1,000
limited partner investment units
outstanding 8,633 8,633
====== ======
</TABLE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-2
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
For the Three Months
Ended March 31,
1996 1995
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 574 $ 191
Adjustment to reconcile net
income to net cash provided by
operating activities:
Depletion 2
------ -------
Cash from operations before
working capital changes 574 193
Changes in assets and liabilities
provided (used) cash:
Accrued oil and gas sales (99) 70
Due from affiliate (155) 24
Accounts payable and accrued
liabilities (1) (5)
------ ------
Net cash provided by operating
activities 319 282
------ ------
INVESTING ACTIVITIES:
Additions to oil and gas
properties (2)
------ -------
Net cash used in investing
activities (2)
------ ------
FINANCING ACTIVITIES:
Distributions to partners (253) (289)
Contributions from general
partner 27 26
------ ------
Net cash used in financing
activities (226) (263)
------ ------
NET INCREASE IN CASH AND CASH
EQUIVALENTS 93 17
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 250 276
------ ------
Balance, end of period $ 343 $ 293
====== ======
<F1>
The accompanying note is an integral part
of the financial statements.
</TABLE>
MAY LIMITED PARTNERSHIP 1984-2
NOTE TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - GENERAL
The financial statements presented are those of May Limited Partnership 1984-2
(the "Partnership"). The interim financial data are unaudited; however, in the
opinion of the general partner, the interim data include all adjustments,
consisting only of normal recurring adjustments, necessary for a fair
presentation of the results for the interim periods. These financial statements
should be read in conjunction with the financial statements and notes thereto
included in the Partnership's December 31, 1995 Annual Report on Form 10-K.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operating activities totaled $319,000 for the three months
ended March 31, 1996, and $253,000 was distributed to partners. A distribution
was declared in April 1996. The distribution amount is $668,000, payable
$457,000 to May Drilling Partnership 1984-2 partners and $211,000 to the general
partner. Future distributions are dependent on future prices for the
Partnership's production and the production level of the Partnership's remaining
oil and gas reserves.
RESULTS OF OPERATIONS
FIRST QUARTER 1996 COMPARED TO THE FIRST QUARTER 1995
OIL REVENUE
Oil revenue increased $85,000 during the first quarter of 1996 as compared to
the corresponding period in 1995 as the result of an increase in production
combined with an increase in the average oil price. Oil production increased
63% on the Freddie Aker #1 due to an increase in the state allowable production
limits. The average oil price increased from $17.65 per barrel in 1995 to
$19.15 per barrel in 1996.
GAS REVENUE
Gas revenue increased $313,000 for the first quarter of 1996 as compared to the
corresponding period in 1995 due to an increase in the average gas price
combined with an increase in production. Gas production increased 78% on the
Freddie Aker #1 due to an increase in the state allowable production limits.
The average gas price increased from $1.81 per mcf in 1995 to $3.70 per mcf in
1996.
LEASE OPERATING
Lease operating expense increased $1,000 for the first quarter of 1996 as
compared to the corresponding period in 1995 due to increased maintenance
activity.
PRODUCTION TAXES
Production taxes increased $17,000 during the first quarter of 1996 as compared
to the corresponding period in 1995 due to increased oil and gas production
previously discussed.
GENERAL AND ADMINISTRATIVE
General and administrative expense decreased $1,000 during the first quarter of
1996 as compared with the first quarter of 1995 as a result of a decrease in the
allocation of overhead from the general partner.
DEPLETION
Depletion expense decreased $2,000 during the first quarter of 1996 as compared
with the first quarter of 1995 because the oil and gas properties are fully
depleted.
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
Reference is made to Item 8 - Note 3 of Form 10-K for the year
ended December 31, 1995.
ITEM 2 - CHANGES IN SECURITIES
None.
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5 - OTHER INFORMATION
None.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
None.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Partnerships have duly caused this report to be signed on their behalf by the
undersigned, thereunto duly authorized.
MAY DRILLING PARTNERSHIP 1984-2
MAY LIMITED PARTNERSHIP 1984-2
BY: EDP OPERATING, LTD.,
GENERAL PARTNER
BY: HALLWOOD G. P., INC.,
GENERAL PARTNER
Date: May 3, 1996 By: /s/Robert S. Pfeiffer
Robert S. Pfeiffer,
Vice President
(Principal Accounting Officer)<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Form 10-Q
for the quarter ended March 31, 1996 for May Limited Partnership 1984-2 and is
qualified in its entirety by reference to such Form 10-Q.
</LEGEND>
<CIK> 0000757385
<NAME> MAY LIMITED PARTNERSHIP 1984-2
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 343
<SECURITIES> 0
<RECEIVABLES> 574
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 917
<PP&E> 10,359
<DEPRECIATION> 10,359
<TOTAL-ASSETS> 917
<CURRENT-LIABILITIES> 16
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 901
<TOTAL-LIABILITY-AND-EQUITY> 917
<SALES> 628
<TOTAL-REVENUES> 631
<CGS> 0
<TOTAL-COSTS> 57
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 574
<INCOME-TAX> 0
<INCOME-CONTINUING> 574
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 574
<EPS-PRIMARY> 45.52
<EPS-DILUTED> 45.52
</TABLE>
