United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 0-14252
ENEX OIL & GAS INCOME PROGRAM II - 5, L.P.
(Exact name of small business issuer as specified in its charter)
Texas 76-0098592
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 200, Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices)
Registrant's telephone number:
(713) 358-8401
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM II - 5, L.P.
BALANCE SHEET
- --------------------------------------------------------------------------------
September 30,
ASSETS 1995
-------------
(Unaudited)
CURRENT ASSETS:
<S> <C>
Cash ....................................................... $ 3,035
Accounts receivable - oil & gas sales ...................... 23,846
Other current assets ....................................... 508
----------
Total current assets ......................................... 27,389
----------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities ...... 4,209,654
Less accumulated depreciation and depletion ............... 4,125,777
----------
Property, net ................................................ 83,877
----------
TOTAL ........................................................ $ 111,266
==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable .......................................... $ 10,619
----------
PARTNERS' CAPITAL:
Limited partners .......................................... 97,829
General partner ........................................... 2,818
----------
Total partners' capital ...................................... 100,647
----------
TOTAL ........................................................ $ 111,266
==========
<FN>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
</FN>
</TABLE>
I-1
<PAGE>
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM II - 5, L.P.
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------------
(UNAUDITED) QUARTER ENDED NINE MONTHS ENDED
---------------------------- -------------------------
September 30, September 30, September 30, September 30,
1995 1994 1995 1994
------------- ------------- ------------- -------------
REVENUES:
<S> <C> <C> <C> <C>
Oil and gas sales ........ $16,206 $18,657 $50,363 $47,751
------- ------- ------- -------
EXPENSES:
Depreciation and depletion 4,629 4,708 14,113 12,676
Lease operating expenses . 4,221 4,930 16,105 18,873
Production taxes ......... 984 1,000 2,820 2,866
General and administrative 4,707 4,611 12,821 13,752
------- ------- ------- -------
Total expenses ............. 14,541 15,249 45,859 48,167
------- ------- ------- -------
NET INCOME (LOSS) .......... $ 1,665 $ 3,408 $ 4,504 $ (416)
======= ======= ======= =======
<FN>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------------
</FN>
</TABLE>
I-2
<PAGE>
<TABLE>
<CAPTION>
ENEX OIL AND GAS INCOME PROGRAM II - 5, L.P.
STATEMENTS OF CASH FLOWS
- -----------------------------------------------------------------------------------
(UNAUDITED)
NINE MONTHS ENDED
-----------------------------
September 30, September 30,
1995 1994
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income (loss) .................................. $ 4,504 $ (416)
-------- --------
Adjustments to reconcile net income (loss) to net
cash
provided by operating activities:
Depreciation and depletion ....................... 14,113 12,676
(Increase) decrease in:
Accounts receivable - oil & gas sales ............ (10,771) 5,853
Other current assets ............................. -- (125)
(Decrease) in:
Accounts payable ................................ (2,759) (10,865)
Payable to general partner ...................... (2,537) (4,483)
------- --------
Total adjustments .................................. (1,954) 3,056
-------- --------
Net cash provided by operating activities .......... 2,550 2,640
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property (additions) credits - development costs (203) 2,171
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions .............................. -- (33,060)
-------- --------
NET INCREASE (DECREASE) IN CASH .................... 2,347 (28,249)
CASH AT BEGINNING OF YEAR .......................... 687 28,249
-------- --------
CASH AT END OF PERIOD .............................. $ 3,034 $ --
========= ========
<FN>
See accompanying notes to financial statements.
- ------------------------------------------------------------------------------------
</FN>
</TABLE>
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<PAGE>
ENEX OIL & GAS INCOME PROGRAM II - 5, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
1. The interim financial information included herein is unaudited;
however, such information reflects all adjustments (consisting solely
of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of results for the
interim periods.
I-4
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation.
Third Quarter 1995 Compared to Third Quarter 1994
Oil and gas sales for the third quarter decreased from $18,657 in 1994 to
$16,206 in 1995. This represents a decrease of $2,451 (13%). Oil sales decreased
by $5,681 or 41%. A 68% decrease in oil production reduced sales by $9,411,
while an 8% increase in average oil prices increased sales by an additional
$1,366. Gas sales increased by $3,230 or 66%. A 21% increase in average gas
prices increased sales by $1,436, while a 36% increase in gas production
increased sales by an additional $1,794. The changes in average prices
correspond with changes in the overall market for the sale of oil and gas. The
decrease in oil production was primarily due to natural production declines
which were especially pronounced on the Hanson acquisition. The increase in gas
production was primarily the result of the shut-in of production in the third
quarter of 1994 to perform a workover on the Arco-Hampton wells in the Hanson
acquisition.
Lease operating expenses for the third quarter decreased from $4,930 in 1994 to
$4,221 in 1995. The decrease of $709 (14%) is primarily due to the changes in
production, noted above.
Depreciation and depletion expense decreased from $4,708 in the third quarter of
1994 to $4,629 in the third quarter of 1995. This represents a decrease of $79
(2%). The changes in production, noted above, reduced depreciation and depletion
expense by $1,978. This decrease was partially offset by 70% increase in the
depletion rate. The increase in the depletion rate was primarily a result of a
downward revision of the gas reserves at December 31, 1994 coupled with
relatively higher production from properties with a higher depletion rate.
General and administrative expenses for the third quarter increased from $4,611
in 1994 to $4,707 in 1995. This increase of $96 (2%) is primarily due to more
staff time being required to manage the Company's operations.
First Nine Months in 1995 Compared to First Nine Months in 1994
Oil and gas sales for the first nine months increased from $47,751 in 1994 to
$50,363 in 1995. This represents an increase of $2,612 (5%). Oil sales increased
by $7,076 or 27%. A 27% increase in oil production increased sales by $5,354,
while a 5% increase in average oil prices increased sales by an additional
$1,722. Gas sales decreased by $4,464 or 21%. A 22% decrease in average gas
prices reduced sales by $4,932. This decrease was partially offset by a 2%
increase in gas production. The changes in average prices correspond with
changes in the overall market for the sale of oil and gas. The higher oil and
gas production was primarily due to the receipt of revenues from the Hanson
acquisition, which were produced in 1994 and due to the shut-in of production in
1994 from the Arco-Hampton wells in the Hanson acquisition for a recompletion
which was successfully completed in 1994.
I-5
<PAGE>
Lease operating expenses decreased from $18,873 in 1994 to $16,105 in 1995. The
decrease of $2,768 (15%) is primarily due to costs incurred to workover a well
in the Hanson acquisition during 1994.
Depreciation and depletion expense increased from $12,676 in the first nine
months of 1994 to $14,113 in the first nine months of 1995. This represents an
increase of $1,437 (11%). The changes in production, noted above, increased
depreciation and depletion expense by $1,760. This increase was partially offset
by a 3% decrease in the depletion rate. The decrease in the depletion rate was
primarily a result of an upward revision of the oil reserves at December 31,
1994, partially offset by a downward revision of the gas reserves at December
31, 1994.
General and administrative expenses in the first nine months decreased from
$13,752 in 1994 to $12,821 in 1995. This decrease of $931 (7%) is primarily due
to less staff time being required to manage the Company's operations.
CAPITAL RESOURCES AND LIQUIDITY
The Company's cash flow from operations is a direct result of the amount and net
proceeds realized from the sale of oil and gas production. Accordingly, the
changes in cash flow from 1994 to 1995 and primarily due to the changes in oil
and gas sales described above. It is the general partner's intention to
distribute substantially all of the Company's available cash flow to the
Company's partners.
The Company discontinued the payment of distributions during 1990. In July 1993,
the Company reinstated distributions to its limited partners. Future
distributions are dependent upon, among other things, an increase in prices
received for oil and gas. The Company will continue to recover its reserves and
distribute to the limited partners the net proceeds realized form the sale of
oil and gas production. Distribution amounts are subject to change if net
revenues are greater or less than expected. Future periodic distributions will
be made once sufficient net revenues are accumulated.
As of September 30, 1995, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
I-6
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5. Other Information.
Not Applicable
Item 6. Exhibits and Reports on Form 8-K.
(a) There are no exhibits to this report.
(b) The Company filed no reports on Form 8-K during the
quarter ended September 30, 1995.
II-1
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
ENEX OIL & GAS INCOME
PROGRAM II - 5, L.P.
--------------------
(Registrant)
By:ENEX RESOURCES CORPORATION
--------------------------
General Partner
By: /s/ R. E. Densford
-------------------
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
November 11, 1995 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
</LEGEND>
<CIK> 0000769501
<NAME> Enex Oil & Gas Income Program II-5, L.P.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> dec-31-1995
<PERIOD-START> jan-01-1995
<PERIOD-END> sep-30-1995
<CASH> 3035
<SECURITIES> 23846
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 27389
<PP&E> 4209654
<DEPRECIATION> 4125777
<TOTAL-ASSETS> 111266
<CURRENT-LIABILITIES> 10619
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 100647
<TOTAL-LIABILITY-AND-EQUITY> 111266
<SALES> 50363
<TOTAL-REVENUES> 50363
<CGS> 33038
<TOTAL-COSTS> 33038
<OTHER-EXPENSES> 12821
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4504
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
