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 June 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
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX OIL & GAS INCOME PROGRAM II - 5, L.P.
BALANCE SHEET
JUNE 30,
ASSETS 1995
(Unaudited)
CURRENT ASSETS:
Cash $ 571
Accounts receivable - oil & gas sales 28,156
Other current assets 508
Total current assets 29,235
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & fac 4,209,655
Less accumulated depreciation and depletion 4,121,148
Property, net 88,507
TOTAL $ 117,742
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 13,378
Payable to general partner 5,383
Total current liabilities 18,761
PARTNERS' CAPITAL:
Limited partners 96,163
General partner 2,818
Total partners' capital 98,981
TOTAL $ 117,742
See accompanying notes to financial statements.
I-1
ENEX OIL & GAS INCOME PROGRAM II - 5, L.P.
STATEMENTS OF OPERATIONS
(UNAUDITED) QUARTER ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1995 1994 1995 1994
REVENUES:
Oil and gas sales $ 23,596 $ 22,737 $ 34,157 $ 29,094
EXPENSES:
Depreciation and depletion 6,296 5,907 9,484 7,968
Lease operating expenses 7,013 5,818 11,884 13,943
Production taxes 1,214 1,326 1,836 1,866
General and administrative 3,878 5,234 8,114 9,141
Total expenses 18,401 18,285 31,318 32,918
NET INCOME (LOSS) $ 5,195 $ 4,452 $ 2,839 $ (3,824)
See accompanying notes to financial statements.
I-2
CASH AT END OF PERIOD
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.
Item 2. Management's Discussion and Analysis or Plan of Operation.
Second Quarter 1995 Compared to Second Quarter 1994
Oil and gas sales for the second quarter increased from $22,737 in 1994 to
$23,596 in 1995. This represents an increase of $859 (4%). Oil sales
increased by $5,828 or 44%. A 33% increase in oil production increased
sales by $4,462, while an 8% increase in average oil prices increased sales
by an additional $1,366. Gas sales decreased by $4,969 or 53%. A 38%
decrease in average gas prices reduced sales by $2,769, while a 24%
decrease in gas production reduced sales by an additional $2,200. The
changes in average prices correspond with changes in the overall market for
the sale of oil and gas. The higher oil production was primarily due to
the receipt of revenues from the Hanson acquisition, which were produced in
1994. The decrease in gas production was primarily the result of natural
production declines, which were especially pronounced on the Hanson
acquisition.
Lease operating expenses for the second quarter increased from $5,818 in
1994 to $7,013 in 1995. The increase of $1,195 (21%) is primarily due to
the increase in oil production, noted above.
Depreciation and depletion expense increased from $5,907 in the second
quarter of 1994 to $6,296 in the second quarter of 1995. This represents
an increase of $389 (7%). A 3% increase in the depletion rate increased
depreciation and depletion expense by $163. The changes in production,
noted above, increased depreciation and depletion expense by an additional
$226. The increase in the depletion rate was primarily a result of a
downward revision of the gas reserves at December 31, 1994, partially
offset by an upward revision of the oil reserves.
General and administrative expenses for the second quarter decreased from
$5,234 in 1994 to $3,878 in 1995. This decrease of $1,356 (26%) is
primarily due to less staff time being required to manage the Company's
operations.
First Six Months in 1995 Compared to First Six Months in 1994
Oil and gas sales for the first six months increased from $29,094 in 1994
to $34,157 in 1995. This represents an increase of $5,063 (17%). Oil
sales increased by $12,757 or 102%. A 76% increase in oil production
increased sales by $9,522, while a 15% increase in average oil prices
increased sales by an additional $3,235. Gas sales decreased by $7,694 or
46%. A 39% decrease in average gas prices reduced sales by $5,728, while
a 12% decrease in gas production reduced sales by an additional $1,966.
The changes in average prices correspond with changes in the overall market
for the sale of oil and gas. The higher oil 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 the first quarter of 1994. The decrease in gas production was
primarily the result of natural production declines, which were especially
pronounced on the Hanson acquisition.
Lease operating expenses decreased from $13,943 in 1994 to $11,884 in 1995.
The decrease of $2,059 (15%) is primarily due to costs incurred to workover
a well in the Hanson acquisition during the first quarter of 1994.
Depreciation and depletion expense increased from $7,968 in the first six
months of 1994 to $9,484 in the first six months of 1995. This represents
an increase of $1,516 (19%). 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 six months decreased from
$9,141 in 1994 to $8,114 in 1995. This decrease of $1,027 (11%) 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 June 30, 1995, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
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 June 30, 1995.
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
August 11, 1995 By: /s/ James A. Klein
James A. Klein
Controller and Chief
Accounting Officer
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:
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
August 11, 1995 By:
James A. Klein
Controller and Chief
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 571
<SECURITIES> 0
<RECEIVABLES> 28,156
<ALLOWANCES> 0
<INVENTORY> 508
<CURRENT-ASSETS> 29,235
<PP&E> 4,209,655
<DEPRECIATION> (4,121,148)
<TOTAL-ASSETS> 117,742
<CURRENT-LIABILITIES> 18,761
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 98,981
<TOTAL-LIABILITY-AND-EQUITY> 117,742
<SALES> 34,157
<TOTAL-REVENUES> 34,157
<CGS> 23,204
<TOTAL-COSTS> 23,204
<OTHER-EXPENSES> 8,114
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,839
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,839
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
