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 0-14251
ENEX OIL & GAS INCOME PROGRAM II - 6, L.P.
(Exact name of small business issuer as specified in its charter)
Texas 76-0098582
(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 - 6, L.P.
BALANCE SHEET
JUNE 30,
ASSETS 1995
(Unaudited)
CURRENT ASSETS:
Cash $ 2,065
Accounts receivable - oil & gas sales 27,793
Other current assets 480
Total current assets 30,338
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 3,539,114
Less accumulated depreciation and depletion 3,465,505
Property, net 73,609
TOTAL $ 103,947
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 15,963
Note payable to general partner 3,355
Payable to general partner 40,826
Total current liabilities 60,144
PARTNERS' CAPITAL (DEFICIT):
Limited partners 45,513
General partner (1,710)
Total partners' capital 43,803
TOTAL $ 103,947
See accompanying notes to financial statements.
I-1
ENEX OIL & GAS INCOME PROGRAM II - 6, 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 $ 19,037 $ 18,256 $ 27,639 $ 23,707
EXPENSES:
Depreciation and depletion 5,062 4,713 7,626 6,388
Lease operating expenses 5,627 4,355 8,997 10,405
Production taxes 979 1,061 1,482 1,510
General and administrative 3,471 1,440 6,979 4,509
Total expenses 15,139 11,569 25,084 22,812
INCOME FROM OPERATIONS 3,898 6,687 2,555 895
OTHER EXPENSE:
Interest expense to gen ptr 372 (594) (286) (1,252)
NET INCOME (LOSS) $ 4,270 $ 6,093 $ 2,269 $ (357)
See accompanying notes to financial statements.
I-2
ENEX OIL AND GAS INCOME PROGRAM II - 6, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30, JUNE 30,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 2,269 $ (357)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and depletion 7,626 6,388
(Increase) in:
Accounts receivable - oil & gas sales (13,616) (2,275)
Increase (decrease) in:
Accounts payable - (2,122)
Payable to general partner 10,322 15,298
Total adjustments 4,332 17,289
Net cash provided by operating activities 6,601 16,932
CASH FLOWS FROM INVESTING ACTIVITIES:
Property (additions) credits - development costs (159) 400
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of note payable to general partner (4,714) (17,748)
NET INCREASE (DECREASE) IN CASH 1,728 (416)
CASH AT BEGINNING OF YEAR 337 795
CASH AT END OF PERIOD $ 2,065 $ 379
Cash paid during the period for interest $ 286 $ 1,252
See accompanying notes to financial statements.
I-3
ENEX OIL & GAS INCOME PROGRAM II - 6, 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.
2. Principal payments of $1,973 and $10,616 were made on the note payable
to the general partner in the second quarter of 1995 and 1994,
respectively. The weighted average principal outstanding was $3,987
and $33,098 for the second quarter of 1995 and 1994, respectively.
Outstanding principal bore interest at a weighted average rate of
9.75% during the second quarter of 1995 and 7.20% during the second
quarter of 1994.
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 $18,256 in 1994 to
$19,037 in 1995. This represents an increase of $781 (4%). Oil sales
increased by $4,809 or 45%. A 27% increase in oil production increased
sales by $2,915, while a 14% increase in average oil prices increased sales
by an additional $1,894. Gas sales decreased by $4,028 or 54%. A 39%
decrease in average gas prices reduced sales by $2,225, while a 24%
decrease in gas production reduced sales by an additional $1,803. 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 $4,355 in
1994 to $5,627 in 1995. The increase of $1,272 (29%) is primarily due to
the increase in oil production, noted above, partially offset by the
decrease in gas production, noted above.
Depreciation and depletion expense increased from $4,713 in the second
quarter of 1994 to $5,062 in the second quarter of 1995. This represents
an increase of $349 (7%). A 6% increase in the depletion rate increased
depreciation and depletion expense by $291. The changes in production,
noted above, increased depreciation and depletion expense by an additional
$58. The increase in the depletion rate is the 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 increased from $1,440 in 1994 to $3,471
in 1995. This increase of $2,031 is primarily due to more 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 $23,707 in 1994
to $27,639 in 1995. This represents an increase of $3,932 (17%). Oil
sales increased by $10,206 or 99%. A 74% increase in oil production
increased sales by $7,595, while a 15% increase in average oil prices
increased sales by an additional $2,611. Gas sales decreased by $6,274 or
47%. A 40% decrease in average gas prices reduced sales by $4,640, while
a 12% decrease in gas production reduced sales by an additional $1,634.
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.
Lease operating expenses for the first six months decreased from $10,405 in
1994 to $8,997 in 1995. The decrease of $1,408 (14%) is primarily due to
costs incurred on a workover of a well in the Hanson acquisition during the
first quarter of 1994.
Depreciation and depletion expense increased from $6,388 in the first six
months of 1994 to $7,626 in the first six months of 1995. This represents
an increase of $1,238 (19%). The changes in production, noted above,
increased depreciation and depletion expense by $1,335. This increase was
partially offset by a 1% decrease in the depletion rate. The decrease in
the depletion rate is the result of an upward revision of the oil reserves
at December 31, 1994, partially offset by a downward revision of the gas
reserves.
General and administrative expenses increased from $4,509 in 1994 to $6,979
in 1995. This increase of $2,470 is primarily due to more staff time
being required to manage the Company's operations.
CAPITAL RESOURCES AND LIQUIDITY
The Company discontinued the payment of distributions during 1990. 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 reduce its obligations in 1995. Based upon current projected
cash flows from the properties, it does not appear that the Company will
have sufficient cash to pay its operating expenses, repay its debt
obligations and pay distributions in 1995.
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
hereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM II - 6, 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 has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM II - 6, 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
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<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
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