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. 2-90417
PARKER & PARSLEY 84-A, LTD.
(Exact name of Registrant as specified in its charter)
Texas 75-1974814
(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 84-A, 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 84-A, 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 $210,041 at March 31,
and $161,973 at December 31 $ 210,541 $ 162,473
Accounts receivable - oil and gas sales 232,806 330,344
----------- ------------
Total current assets 443,347 492,817
----------- ------------
Oil and gas properties - at cost, based on the
successful efforts accounting method 18,208,392 18,207,994
Accumulated depletion (14,343,438) (14,264,426)
----------- -----------
Net oil and gas properties 3,864,954 3,943,568
------------ -----------
$ 4,308,301 $ 4,436,385
=========== ============
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 45,811 $ 44,799
Partners' capital:
General partners 466,485 490,387
Limited partners (19,435 interests) 3,796,005 3,901,199
----------- ------------
4,262,490 4,391,586
----------- ------------
$ 4,308,301 $ 4,436,385
=========== ============
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 84-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
1997 1996
-------- --------
Revenues:
Oil and gas $ 459,453 $ 422,643
Interest 2,928 1,923
-------- --------
462,381 424,566
-------- --------
Costs and expenses:
Oil and gas production 227,675 241,442
General and administrative 15,298 12,929
Depletion 79,012 89,127
-------- --------
321,985 343,498
-------- --------
Net income $ 140,396 $ 81,068
======== ========
Allocation of net income:
General partners $ 47,353 $ 33,699
======== ========
Limited partners $ 93,043 $ 47,369
======== ========
Net income per limited partnership interest $ 4.79 $ 2.44
======== ========
Distributions per limited partnership interest $ 10.20 $ 6.00
======== ========
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 84-A, LTD.
(A Texas Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
General Limited
partners partners Total
-------- ---------- -----------
Balance at January 1, 1997 $ 490,387 $ 3,901,199 $ 4,391,586
Distributions (71,255) (198,237) (269,492)
Net income 47,353 93,043 140,396
-------- ---------- -----------
Balance at March 31, 1997 $ 466,485 $ 3,796,005 $ 4,262,490
======== ========== ===========
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 84-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
March 31
----------------------
1997 1996
--------- --------
Cash flows from operating activities:
Net income $ 140,396 $ 81,068
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 79,012 89,127
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 97,538 (10,711)
Increase (decrease) in accounts payable 1,012 (42,988)
--------- --------
Net cash provided by operating activities 317,958 116,496
--------- --------
Cash flows from investing activities:
Additions to oil and gas properties (398) (864)
Cash flows from financing activities:
Cash distributions to partners (269,492) (153,716)
---------- --------
Net increase (decrease) in cash and cash equivalents 48,068 (38,084)
Cash and cash equivalents at beginning of period 162,473 157,388
--------- --------
Cash and cash equivalents at end of period $ 210,541 $ 119,304
========= =========
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 84-A, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
(Unaudited)
Note 1. Organization and nature of operations
Parker & Parsley 84-A, Ltd. (the "Partnership") is a limited partnership
organized in 1984 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 $459,453 from $422,643 for
the three months ended March 31, 1997 and 1996, respectively, an increase of
$36,810, or 9%. The increase in revenues resulted from increases in the average
prices received per barrel of oil and mcf of gas and a slight increase in mcf of
gas produced and sold, offset by a 4% decline in barrels of oil produced and
sold. For the three months ended March 31, 1997, 15,143 barrels of oil were sold
compared to 15,792 for the same period in 1996, a decrease of 649 barrels. For
the three months ended March 31, 1997, 55,747 mcf of gas were sold compared to
54,576 for the same period in 1996, an increase of 1,171 mcf. The decrease in
oil production volumes was primarily due to the decline characteristics of the
Partnership's oil properties. The increase in gas production volumes was due to
operational changes on several of the Partnership's gas properties. Management
expects a certain amount of decline in production 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 $2.45, or 13%, from
$19.23 for the three months ended March 31, 1996 to $21.68 for the same period
in 1997. The average price received per mcf of gas increased 8% from $2.18
during the three months ended March 31, 1996 to $2.35 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.
Costs and Expenses:
Total costs and expenses decreased to $321,985 for the three months ended March
31, 1997 as compared to $343,498 for the same period in 1996, a decline of
$21,513, or 6%. This decline was due to decreases in production costs and
depletion, offset by an increase in general and administrative expenses ("G&A").
Production costs were $227,675 for the three months ended March 31, 1997 and
$241,442 for the same period in 1996 resulting in a $13,767 decrease, or 6%. The
decrease primarily consisted of less well repair and maintenance costs.
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, 18% from $12,929 for the three months ended March 31,
1996 to $15,298 for the same period in 1997.
Depletion was $79,012 for the three months ended March 31, 1997 compared to
$89,127 for the same period in 1996, a decrease of $10,115, or 11%. The decrease
is primarily attributable to an upward revision in oil and gas reserves and a
decline in oil production of 649 barrels for the three months ended March 31,
1997 compared to the same period in 1996.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $201,462 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 decline in production cost
expenditures.
8
<PAGE>
Net Cash Used in Investing Activities
The Partnership's principal investing activity during the three months ended
March 31, 1997 and 1996 was for equipment replacement on various oil and gas
properties.
Net Cash Used in Financing Activities
Cash was sufficient for the three months ended March 31, 1997 to cover
distributions to the partners of $269,492 of which $198,237 was distributed to
the limited partners and $71,255 to the general partners. For the same period
ended March 31, 1996, cash was sufficient for distributions to the partners of
$153,716 of which $116,609 was distributed to the limited partners and $37,107
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 84-A, 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 84-A, LTD.
By: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: May 9, 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> 210,541
<SECURITIES> 0
<RECEIVABLES> 232,806
<ALLOWANCES> 0
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0
0
<COMMON> 0
<OTHER-SE> 4,262,490
<TOTAL-LIABILITY-AND-EQUITY> 4,308,301
<SALES> 459,453
<TOTAL-REVENUES> 462,381
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<INCOME-TAX> 0
<INCOME-CONTINUING> 140,396
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
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<EPS-PRIMARY> 4.79
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