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 March 31, 1996
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)
New Jersey 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)
Issuer'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
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ENEX OIL & GAS INCOME PROGRAM II - 5, L.P.
BALANCE SHEET
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MARCH 31,
ASSETS 1995
----------------
(Unaudited)
CURRENT ASSETS:
<S> <C>
Cash $ 5,037
Accounts receivable - oil & gas sales 25,094
Other current assets 508
--------------
Total current assets 30,639
--------------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 4,209,652
Less accumulated depreciation and depletion 4,137,193
--------------
Property, net 72,459
--------------
TOTAL $ 103,098
==============
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 13,378
Payable to general partner 4,629
--------------
Total current liabilities 18,007
--------------
PARTNERS' CAPITAL:
Limited partners 82,273
General partner 2,818
--------------
Total partners' capital 85,091
--------------
TOTAL $ 103,098
==============
</TABLE>
See accompanying notes to financial statements.
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<PAGE>
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM II - 5, L.P.
STATEMENTS OF OPERATIONS
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(UNAUDITED) THREE MONTHS ENDED
------------------------------
MARCH 31, MARCH 31,
1996 1995
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REVENUES:
<S> <C> <C>
Oil and gas sales $ 14,470 $ 10,561
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EXPENSES:
Depreciation and depletion 3,115 3,188
Lease operating expenses 3,769 4,871
Production taxes 903 622
General and administrative 7,914 4,236
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Total expenses 15,701 12,917
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NET LOSS $ (1,231) $ (2,356)
============= ============
</TABLE>
See accompanying notes to financial statements.
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<PAGE>
<TABLE>
<CAPTION>
ENEX OIL AND GAS INCOME PROGRAM II - 5, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31, MARCH 31,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net loss $ (1,231) $ (2,356)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and depletion 3,115 3,188
(Increase) decrease in:
Accounts receivable - oil & gas sales (6,595) (3,646)
Other current assets (18) -
Increase in:
Payable to general partner 3,680 2,975
Total adjustments 182 2,517
Net cash provided (used) by operating activities (1,049) 161
CASH FLOWS FROM INVESTING ACTIVITIES:
Property credits - development costs 35 -
NET INCREASE (DECREASE) IN CASH (1,014) 161
CASH AT BEGINNING OF PERIOD 6,051 687
CASH AT END OF PERIOD $ 5,037 $ 848
</TABLE>
See accompanying notes to financial statements.
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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.
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<PAGE>
Item 2Management's Discussion and Analysis or Plan of Operation.
First Quarter 1996 Compared to First Quarter 1995
Oil and gas sales for the first quarter increased from $10,561 in 1995 to
$14,470 in 1996. This represents an increase of $3,909 (37%). Oil sales
increased by $308 or 5%. A 12% increase in average oil prices increased sales by
$689. This increase was partially offset by a 6% decrease in oil production. Gas
sales increased by $3,601 or 80%. A 45% increase in average gas prices increased
sales by $2,509. A 24% increase in gas production increased sales by an
additional $1,092. The decrease in oil production was primarily due to natural
production declines. The increase in gas production was primarily due to the
shut-in of production from the Hanson acquisition to perform a workover in the
first quarter of 1995, partially offset by natural production declines. The
changes in average prices correspond with changes in the overall market for the
sale of oil and gas.
Lease operating expenses decreased from $4,871 in 1995 to $3,769 in 1996. The
decrease of $1,102 (23%) is primarily due to workover costs incurred in the
first quarter of 1995 on the Arco Hampton wells in the Hanson acquisition.
Depreciation and depletion expense decreased from $3,188 in the first quarter of
1995 to $3,115 in the first quarter of 1996. This represents a decrease of $73
(2%). A 12% decrease in the depletion rate reduced depreciation and depletion
expense by $441. This decrease was partially offset by the changes in
production, noted above. The rate decrease was primarily a result of upward
revisions of the oil and gas reserves at December 31, 1995.
General and administrative expenses increased from $4,236 in 1995 to $7,914 in
1996. This increase of $3,678 (46%) is primarily due a $2,117 increase in direct
expenses incurred by the Company coupled with more staff time being required to
manage the Company's operations in 1996.
CAPITAL RESOURCES AND LIQUIDITY
The Company discontinued the payment of distributions during 1990. Distributions
were reinstated in 1993 and were made to limited partners on July 31, 1993 and
January 31, 1994. Future distributions are dependent upon, among other things,
future prices received for oil and gas remaining at satisfactory levels. The
Company will continue to recover its reserves in 1996. 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 March 31, 1996, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
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<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 March 31, 1996.
<PAGE>
SIGNATURES
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 hereunto 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
May 11, 1996 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer
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<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000769501
<NAME> Enex Oil & Gas Income Program II - 5, L.P.
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> dec-31-1996
<PERIOD-START> jan-01-1996
<PERIOD-END> dec-31-1996
<CASH> 5037
<SECURITIES> 0
<RECEIVABLES> 25094
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 30639
<PP&E> 4209652
<DEPRECIATION> 4137193
<TOTAL-ASSETS> 103098
<CURRENT-LIABILITIES> 18007
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 85091
<TOTAL-LIABILITY-AND-EQUITY> 103098
<SALES> 14470
<TOTAL-REVENUES> 14470
<CGS> 4672
<TOTAL-COSTS> 7787
<OTHER-EXPENSES> 7914
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1231)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
