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 September 30, 2000
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)
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 84-A, LTD.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of September 30, 2000 and
December 31, 1999...................................... 3
Statements of Operations for the three and nine
months ended September 30, 2000 and 1999................ 4
Statement of Partners' Capital for the nine months
ended September 30, 2000................................ 5
Statements of Cash Flows for the nine months ended
September 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 84-A, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
<TABLE>
BALANCE SHEETS
<CAPTION>
September 30, December 31,
2000 1999
------------ ------------
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash $ 194,171 $ 117,140
Accounts receivable - oil and gas sales 338,232 261,763
----------- -----------
Total current assets 532,403 378,903
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 18,258,923 18,246,242
Accumulated depletion (16,364,956) (16,282,110)
----------- -----------
Net oil and gas properties 1,893,967 1,964,132
----------- -----------
$ 2,426,370 $ 2,343,035
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 69,940 $ 37,409
Partners' capital:
General partners 289,885 266,887
Limited partners (19,435 interests) 2,066,545 2,038,739
----------- -----------
2,356,430 2,305,626
----------- -----------
$ 2,426,370 $ 2,343,035
=========== ===========
</TABLE>
The financial information included as of September 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 84-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
------------------------ ------------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues:
Oil and gas $ 615,825 $ 441,421 $1,698,194 $1,014,766
Interest 5,118 2,464 12,110 5,819
--------- --------- --------- ---------
620,943 443,885 1,710,304 1,020,585
--------- --------- --------- ---------
Costs and expenses:
Oil and gas production 226,699 204,910 691,478 606,234
General and administrative 21,036 17,369 55,175 37,013
Depletion 24,033 32,976 82,846 143,929
--------- --------- --------- ---------
271,768 255,255 829,499 787,176
--------- --------- --------- ---------
Net income $ 349,175 $ 188,630 $ 880,805 $ 233,409
========= ========= ========= =========
Allocation of net income:
General partners $ 91,539 $ 52,456 $ 233,685 $ 80,904
========= ========= ========= =========
Limited partners $ 257,636 $ 136,174 $ 647,120 $ 152,505
========= ========= ========= =========
Net income per limited
partnership interest $ 13.26 $ 7.01 $ 33.30 $ 7.85
========= ========= ========= =========
</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 84-A, LTD.
(A Texas Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
<TABLE>
<CAPTION>
General Limited
partners partners Total
----------- ---------- ----------
<S> <C> <C> <C>
Balance at January 1, 2000 $ 266,887 $2,038,739 $2,305,626
Distributions (210,687) (619,314) (830,001)
Net income 233,685 647,120 880,805
---------- --------- ---------
Balance at September 30, 2000 $ 289,885 $2,066,545 $2,356,430
========== ========= =========
</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 84-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine months ended
September 30,
----------------------
2000 1999
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 880,805 $ 233,409
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 82,846 143,929
Changes in assets and liabilities:
Accounts receivable (76,469) (128,409)
Accounts payable 32,531 28,080
-------- --------
Net cash provided by operating activities 919,713 277,009
-------- --------
Cash flows from investing activities:
Additions to oil and gas properties (12,681) (7,997)
Proceeds from asset dispositions - 211
-------- --------
Net cash used in investing activities (12,681) (7,786)
-------- --------
Cash flows used in financing activities:
Cash distributions to partners (830,001) (214,788)
-------- --------
Net increase in cash 77,031 54,435
Cash at beginning of period 117,140 124,005
-------- --------
Cash at end of period $ 194,171 $ 178,440
======== ========
</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 84-A, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(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 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 September 30, 2000 and for the three and nine months ended
September 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 September 30, 1999 financial statements to conform to
the September 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
Nine months ended September 30, 2000 compared with nine months ended September
30, 1999
Revenues:
The Partnership's oil and gas revenues increased 67% to $1,698,194 for the nine
months ended September 30, 2000 as compared to $1,014,766 for the same period in
1999. The increase in revenues resulted from higher average prices received,
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offset by a decrease in production. For the nine months ended September 30,
2000, 39,130 barrels of oil, 25,473 barrels of natural gas liquids ("NGLs") and
104,455 mcf of gas were sold, or 82,012 barrel of oil equivalents ("BOEs"). For
the nine months ended September 30, 1999, 37,683 barrels of oil, 29,702 barrels
of NGLs and 127,652 mcf of gas were sold, or 88,660 BOEs.
The average price received per barrel of oil increased $13.17, or 85%, from
$15.44 for the nine months ended September 30, 1999 to $28.61 for the same
period in 2000. The average price received per barrel of NGLs increased $5.36,
or 65%, from $8.31 during the nine months ended September 30, 1999 to $13.67 for
the same period in 2000. The average price received per mcf of gas increased 51%
from $1.46 during the nine months ended September 30, 1999 to $2.21 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 nine months ended September 30, 2000.
Costs and Expenses:
Total costs and expenses increased to $829,499 for the nine months ended
September 30, 2000 as compared to $787,176 for the same period in 1999, an
increase of $42,323, or 5%. This increase was due to increases in production
costs and general and administrative expenses ("G&A"), offset by a decline in
depletion.
Production costs were $691,478 for the nine months ended September 30, 2000 and
$606,234 for the same period in 1999 resulting in an $85,244 increase, or 14%.
This increase was primarily due to higher production taxes of $55,539 associated
with higher oil and gas prices and additional well maintenance costs of $21,346
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, 49% from $37,013 for the nine months ended September
30, 1999 to $55,175 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 $82,846 for the nine months ended September 30, 2000 compared to
$143,929 for the same period in 1999, representing a decrease of $61,083, or
42%. This decrease was attributable to an increase in proved reserves due to
higher commodity prices as compared to the same period in 1999, offset by an
increase in oil production of 1,447 barrels for the nine months ended September
30, 2000 compared to the same period in 1999.
Three months ended September 30, 2000 compared with three months ended September
30, 1999
Revenues:
The Partnership's oil and gas revenues increased 40% to $615,825 for the three
months ended September 30, 2000 as compared to $441,421 for the same period in
1999. The increase in revenues resulted from higher average prices received,
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offset by a decrease in production. For the three months ended September 30,
2000, 12,371 barrels of oil, 9,166 barrels of NGLs and 36,292 mcf of gas were
sold, or 27,586 BOEs. For the three months ended September 30, 1999, 12,626
barrels of oil, 11,309 barrels of NGLs and 46,764 mcf of gas were sold, or
31,729 BOEs.
The average price received per barrel of oil increased $11.33, or 58%, from
$19.41 for the three months ended September 30, 1999 compared to $30.74 for the
same period in 2000. The average price received per barrel of NGLs increased
$4.07, or 39%, from $10.32 during the three months ended September 30, 1999 to
$14.39 for the same period in 2000. The average price received per mcf of gas
increased 68% from $1.70 during the three months ended September 30, 1999 to
$2.86 for the same period in 2000.
Costs and Expenses:
Total costs and expenses increased to $271,768 for the three months ended
September 30, 2000 as compared to $255,255 for the same period in 1999, an
increase of $16,513, or 6%. This increase was due to increases in production
costs and G&A, offset by a decline in depletion.
Production costs were $226,699 for the three months ended September 30, 2000 and
$204,910 for the same period in 1999, resulting in a $21,789 increase, or 11%.
The increase was primarily due to higher production taxes of $20,195 associated
with higher oil and gas prices, offset by a decrease in well maintenance costs
of $7,774.
During this period, G&A increased, in aggregate, 21% from $17,369 for the three
months ended September 30, 1999 to $21,036 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 $24,033 for the three months ended September 30, 2000 compared to
$32,976 for the same period in 1999, a decrease of $8,943, or 27%. This decrease
was attributable to an increase in proved reserves as a result of higher
commodity prices and a decline in oil production of 255 barrels when compared to
the respective information for the same period in 1999.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $642,704 during the nine
months ended September 30, 2000 from the same period ended in 1999. This
increase was due to an increase in oil and gas sales receipts of $741,659,
offset by increases in production costs paid of $76,873 and G&A expenses paid of
$22,082.
Net Cash Used in Investing Activities
The Partnership's principal investing activities during the nine months ended
September 30, 2000 and 1999 included equipment upgrades on various oil and gas
properties.
9
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Proceeds from asset dispositions of $211 were received during the nine months
ended September 30, 1999 from equipment credits received on one well.
Net Cash Used in Financing Activities
For the nine months ended September 30, 2000, cash distributions to the partners
were $830,001, of which $210,687 was distributed to the general partners and
$619,314 to the limited partners. For the same period ended September 30, 1999,
cash distributions to the partners were $214,788, of which $54,007 was
distributed to the general partners and $160,781 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 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: Pioneer Natural Resources USA, Inc.,
Managing General Partner
Dated: November 8, 2000 By: /s/ Rich Dealy
------------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
11
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