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 0-14251
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
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM II - 6, L.P.
BALANCE SHEET
- --------------------------------------------------------------------------------
September 30,
ASSETS 1995
-------------
(Unaudited)
CURRENT ASSETS:
<S> <C>
Cash ...................................................... $ 6,649
Accounts receivable - oil & gas sales ..................... 20,576
Other current assets ...................................... 480
-----------
Total current assets ........................................ 27,705
-----------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities ..... 3,539,114
Less accumulated depreciation and depletion .............. 3,469,215
-----------
Property, net ............................................... 69,899
-----------
TOTAL ....................................................... $ 97,604
===========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable ......................................... $ 13,344
Payable to general partner ............................... 39,111
-----------
Total current liabilities ................................... 52,455
-----------
PARTNERS' CAPITAL (DEFICIT):
Limited partners ......................................... 46,859
General partner .......................................... (1,710)
-----------
Total partners' capital ..................................... 45,149
-----------
TOTAL ....................................................... $ 97,604
===========
<FN>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
</FN>
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM II - 6, 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 ................. $ 13,055 $ 15,351 $ 40,694 $ 39,058
-------- -------- -------- --------
EXPENSES:
Depreciation and depletion ........ 3,710 3,894 11,336 10,282
Lease operating expenses .......... 2,920 3,518 11,917 13,923
Production taxes .................. 793 826 2,275 2,336
General and administrative ........ 4,259 4,031 11,238 8,540
-------- -------- -------- --------
Total expenses ...................... 11,682 12,269 36,766 35,081
-------- -------- -------- --------
INCOME FROM OPERATIONS .............. 1,373 3,082 3,928 3,977
-------- -------- -------- --------
OTHER EXPENSE:
Interest expense to general partner (27) (447) (313) (1,699)
-------- -------- -------- --------
NET INCOME .......................... $ 1,346 $ 2,635 $ 3,615 $ 2,278
======== ======== ======== ========
<FN>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------------------------
</FN>
</TABLE>
I-2
<PAGE>
<TABLE>
<CAPTION>
ENEX OIL AND GAS INCOME PROGRAM II - 6, 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 ......................................... $ 3,615 $ 2,278
-------- --------
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and depletion ....................... 11,336 10,282
(Increase) in:
Accounts receivable - oil & gas sales ............ (6,399) (1,289)
Other current assets ............................. -- (119)
Increase (decrease) in:
Accounts payable ................................ -- (3,629)
Payable to general partner ...................... 8,607 19,329
-------- --------
Total adjustments .................................. 13,544 24,574
-------- --------
Net cash provided by operating activities .......... 17,159 26,852
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property (additions) credits - development costs (159) 1,608
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of note payable to general partner .... (8,069) (28,301)
-------- --------
NET INCREASE IN CASH ............................... 8,931 159
CASH AT BEGINNING OF YEAR .......................... 337 795
-------- --------
CASH AT END OF PERIOD .............................. $ 9,268 $ 954
======== ========
Cash paid during the period for interest ........... $ 313 $ 1,699
======== ========
<FN>
See accompanying notes to financial statements.
- ------------------------------------------------------------------------------------
</FN>
</TABLE>
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<PAGE>
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 $3,360 completely repaid the note payable to the
general partner in the third quarter of 1995. Principal payments of
$10,553 were made on the note payable to the general partner in the
third quarter of 1994. The weighted average principal outstanding was
$1,120 and $21,608 in the third quarter of 1995 and 1994, respectively.
Outstanding principal bore interest at a weighted average rate of 9.64%
during the third quarter of 1995 and 8.27% during the third quarter of
1994.
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<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 $15,351 in 1994 to
$13,055 in 1995. This represents a decrease of $2,296 (15%). Oil sales decreased
by $4,834 or 42%. A 38% decrease in oil production reduced sales by $4,292,
while an 8% decrease in average oil prices decreased sales by an additional
$542. Gas sales increased by $2,538 or 64%. A 21% increase in average gas prices
increased sales by $1,154, while a 35% increase in gas production increased
sales by an additional $1,384. 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 $3,518 in 1994 to
$2,920 in 1995. The decrease of $598 (17%) is primarily due to the decrease in
oil production, noted above, partially offset by the increase in gas production,
noted above.
Depreciation and depletion expense decreased from $3,894 in the third quarter of
1994 to $3,710 in the third quarter of 1995. This represents a decrease of $184
(5%). The changes in production, noted above, reduced depreciation and depletion
expense by $333. This decrease was partially offset by a 4% increase in the
depletion rate. The increase in the depletion rate is primarily 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 $4,031 in 1994 to $4,259 in
1995. This increase of $228 (6%) 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 $39,058 in 1994 to
$40,694 in 1995. This represents an increase of $1,636 (4%). Oil sales increased
by $5,372 or 25%. An 18% increase in oil production increased sales by $3,977,
while a 5% increase in average oil prices increased sales by an additional
$1,395. Gas sales decreased by $3,736 or 22%. A 23% decrease in average gas
prices reduced sales by $4,047. 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 $13,923 in 1994 to $11,917 in 1995. The
decrease of $2,006 (14%) is primarily due to costs incurred to workover a well
in the Hanson acquisition during 1994.
Depreciation and depletion expense increased from $10,282 in the first nine
months of 1994 to $11,336 in the first nine months of 1995. This represents an
increase of $1,054 (10%). The changes in production, noted above, increased
depreciation and depletion expense by $971. A 1% increase in the depletion rate
increased depreciation and depletion by an additional $83. 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 $8,540 in 1994 to $11,238 in
1995. This increase of $2,698 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 and 1996. 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 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 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
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> 0000769503
<NAME> Enex Oil & Gas Income Program II-6, 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> 6649
<SECURITIES> 0
<RECEIVABLES> 20576
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 27705
<PP&E> 3539114
<DEPRECIATION> 3469215
<TOTAL-ASSETS> 97604
<CURRENT-LIABILITIES> 52455
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 45149
<TOTAL-LIABILITY-AND-EQUITY> 97604
<SALES> 40694
<TOTAL-REVENUES> 40694
<CGS> 25528
<TOTAL-COSTS> 25528
<OTHER-EXPENSES> 11238
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (313)
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3615
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
