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Previous: EVERGREEN INVESTMENT TRUST, 485B24E, 1997-08-14 |
Next: KRUPP INSTITUTIONAL MORTGAGE FUND LTD PARTNERSHIP, 10-Q, 1997-08-14 |
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 June 30, 1997
|_| TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 2-89194
MAY DRILLING PARTNERSHIP 1984-1
MAY LIMITED PARTNERSHIP 1984-1
(Exact name of registrant as specified in its charter)
75-1973664
Texas 75-1973661
(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 offices) (Zip Code)
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 |_|
Page 1 of 10
<PAGE>
<TABLE>
<CAPTION>
MAY DRILLING PARTNERSHIP 1984-1
BALANCE SHEETS
(Unaudited)
(In thousands)
June 30, December 31,
1997 1996
ASSETS
Investment in
<S> <C> <C>
May Limited Partnership 1984-1 $147 $267
==== ====
PARTNERS' CAPITAL
Partners' Capital $147 $267
==== ====
<FN>
NOTE: The statements of operations and cash flows for May Drilling
Partnership 1984-1 are not presented because such information is equal
to the limited partner's share of such activity as presented in the
May Limited Partnership 1984-1 financial statements. The May Drilling
Partnership carries its investment in May Limited Partnership 1984-1
on the equity method. The May Limited Partnership 1984-1 financial
statements should be read in conjunction with these balance sheets.
</FN>
<FN>
The accompanying note is an integral part of the financial
statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-1
BALANCE SHEETS
(Unaudited)
(In thousands)
June 30, December 31,
1997 1996
ASSETS
CURRENT ASSETS
<S> <C> <C>
Cash and cash equivalents $ 228 $ 265
Accrued oil and gas sales 118 212
Due from affiliate 75
--- ----
Total 346 552
--- ---
OIL AND GAS PROPERTIES, using the full cost method of
accounting 8,108 8,064
Less accumulated depletion (8,073) (8,064)
------ -----
Net oil and gas properties 35
------ -----
TOTAL ASSETS $ 381 $ 552
====== ======
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 6 $ 11
Due to affiliate 18
---- ---
Total 24 11
-- --
PARTNERS' CAPITAL
General partner 210 274
Limited partner 147 267
--- ---
Total 357 541
--- ---
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 381 $ 552
====== ======
<FN>
The accompanying note is an integral part of the financial
statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-1
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Three Months Ended June 30,
1997 1996
----- ----
REVENUES
<S> <C> <C>
Oil revenue $ 65 $ 12
Gas revenue 94 171
Interest 3 3
Other 6
----- ---
Total 168 286
--- ---
COSTS AND EXPENSES
Lease operating 8 4
Production taxes 12 19
General and administrative 7 11
Depletion 9
Professional services and other 2 2
--- --
Total 38 36
-- --
NET INCOME $ 130 $ 250
======= =======
ALLOCATION OF NET INCOME:
General Partner $ 50 $ 94
======== ========
Limited Partner $ 80 $ 156
======== =======
Per initial $1,000 limited partner investment $ 14.89 $ 29.04
====== ======
Weighted average initial $1,000 limited partner
investment units outstanding 5,371 5, 371
===== ======
<FN>
The accompanying note is an integral part of the financial
statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-1
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for unit information)
For the Six Months Ended June 30,
1997 1996
----- ----
REVENUES
<S> <C> <C>
Oil revenue $ 169 $ 241
Gas revenue 261 456
Interest 6 6
Other 6
---- ---
Total 442 703
--- ---
COSTS AND EXPENSES
Lease operating 16 10
Production taxes 29 42
General and administrative 14 21
Depletion 9
Professional services and other 7 5
--- ---
Total 75 78
-- --
NET INCOME $ 367 $ 625
======= =======
ALLOCATION OF NET INCOME:
General Partner $ 141 $ 233
======= =======
Limited Partner $ 226 $ 392
======= =======
Per initial $1,000 limited partner investment $ 42.08 $ 72.98
====== ======
Weighted average initial $1,000 limited partner
investment units outstanding 5,371 5,371
===== =====
<FN>
The accompanying note is an integral part of the financial
statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAY LIMITED PARTNERSHIP 1984-1
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
For the Six Months Ended June 30,
1997 1996
----- ----
OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 367 $ 625
Adjustment to reconcile net income to net cash
provided by operating activities:
Depletion 9
----- -----
Cash from operations before working
capital changes 376 625
Changes in assets and liabilities provided (used) cash:
Accrued oil and gas sales 94 4
Due from affiliate 75 (35)
Accounts payable and accrued liabilities (5) (7)
Due to affiliate 18
---- ----
Net cash provided by operating activities 558 587
--- ----
INVESTING ACTIVITIES:
Additions to oil and gas properties (44)
--- ---
FINANCING ACTIVITIES:
Distributions to partners (551) (581)
----- ----
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (37) 6
CASH AND CASH EQUIVALENTS:
Balance, beginning of period 265 197
--- ---
Balance, end of period $ 228 $ 203
======= =======
<FN>
The accompanying note is an integral part of the financial
statements.
</FN>
</TABLE>
<PAGE>
MAY LIMITED PARTNERSHIP 1984-1
NOTE TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - GENERAL
The financial statements presented are those of May Limited Partnership 1984-1
(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, 1996 Annual Report on Form 10-K.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Liquidity and Capital Resources
Cash provided by operating activities totaled $558,000 for the six months ended
June 30, 1997 and $551,000 was distributed to partners. A distribution payable
to partners of record as of June 30, 1997 was declared in July 1997. The
distribution amount is $111,000, payable $70,000 to May Drilling Partnership
1984-1 partners and $41,000 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
Second Quarter 1997 Compared to the Second Quarter 1996
Oil Revenue
Oil revenue decreased $47,000 during the second quarter of 1997 as compared to
the corresponding period in 1996 as the result of a decrease in production
combined with a decrease in the average oil price. Oil production decreased 38%
on the Freddie Aker #1 due to a decrease in the state allowable production
limits as well as normal production declines. The average oil price decreased
from $20.81 per barrel in 1996 to $19.38 per barrel in 1997.
Gas Revenue
Gas revenue decreased $77,000 during the second quarter of 1997 as compared to
the corresponding period in 1996 due to a decrease in the average gas price
combined with a 40% decrease in production. The decrease in production is due to
a decrease in the state allowable production limits as well as normal production
declines. The average gas price decreased from $2.74 per mcf in 1996 to $2.49
per mcf in 1997.
Other
Other income is comprised of insurance proceeds which reimbursed a portion of
expense incurred in a prior period to settle certain litigation.
<PAGE>
Lease Operating
Lease operating expense increased $4,000 during the second quarter of 1997 as
compared with the second quarter of 1996 due to increased maintenance activity
on the Freddie Aker #1 well.
Production Taxes
Production taxes decreased $7,000 during the second quarter of 1997 as compared
to the corresponding period in 1996 due to decreased production as previously
discussed.
General and Administrative
General and administrative expense decreased $4,000 during the second quarter of
1997 as compared with the second quarter of 1996 as a result of a decrease in
the allocation of overhead from the general partner.
Depletion
Depletion expense increased $9,000 during the second quarter of 1997 as compared
with the second quarter of 1996 due to increased capital costs during 1997.
Six Months Ended June 30, 1997 Compared to the Six Months Ended June 30, 1996
The comparisons for the six months ended June 30, 1997 and the six months ended
June 30, 1996 are consistent with those discussed in the second quarter 1997
compared to the second quarter of 1996 except for the following:
Oil Revenue
Oil revenue decreased $72,000 during the first six months of 1997 as compared to
the corresponding period in 1996 primarily due to a decrease in production,
partially offset by an increase in the average oil price. The average oil price
increased from $19.89 per barrel in 1996 to $21.28 per barrel in 1997. Oil
production decreased 35% primarily due to lower state allowable production
limits as well as normal production declines.
Gas Revenue
Gas revenue decreased $195,000 during the first six months of 1997 as compared
to the corresponding period in 1996 primarily as the result of a decrease in
production combined with a decrease in price. Gas production decreased 38%
primarily due to lower state allowable production limits as well as normal
production declines. The average gas price decreased from $3.27 per mcf in 1996
to $3.03 per mcf in 1997.
Professional Services and Other
Professional services and other expense increased $2,000 during the first six
months of 1997 as compared with the first six months of 1996 primarily due to
the timing of these expenses.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
Reference is made to Item 8 - Note 4 of Form 10-K for the year
ended December 31, 1996.
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.
<PAGE>
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 1984-1
MAY LIMITED PARTNERSHIP 1984-1
By: EDP OPERATING, LTD.,
General Partner
By: HEPGP LTD.,
General Partner
By: HALLWOOD G. P., INC.,
General Partner
Date: August 11, 1997 By: Robert S. Pfeiffer
--------------------- ---------------------------
Robert S. Pfeiffer, Vice President
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Form 10-Q
for the quarter ended June 30, 1997 for May Limited Partnership 1984-1 and is
qualified in its entirety by reference to such Form 10-Q.
</LEGEND>
<CIK> 0000757525
<NAME> May Limited Partnership 1984-1
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-mos
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-END> Jun-30-1997
<CASH> 228
<SECURITIES> 0
<RECEIVABLES> 118
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 346
<PP&E> 8,108
<DEPRECIATION> 8,073
<TOTAL-ASSETS> 381
<CURRENT-LIABILITIES> 24
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 357
<TOTAL-LIABILITY-AND-EQUITY> 381
<SALES> 430
<TOTAL-REVENUES> 442
<CGS> 0
<TOTAL-COSTS> 75
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 367
<INCOME-TAX> 0
<INCOME-CONTINUING> 367
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 367
<EPS-PRIMARY> 42.08
<EPS-DILUTED> 42.08
</TABLE>
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