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 0-14251
ENEX OIL & GAS INCOME PROGRAM II - 6, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 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)
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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<CAPTION>
ENEX OIL & GAS INCOME PROGRAM II - 6, L.P.
BALANCE SHEET
- -------------------------------------------------------------------------------
MARCH 31,
ASSETS 1996
-----------------
(Unaudited)
CURRENT ASSETS:
<S> <C>
Cash $ 65
Accounts receivable - oil & gas sales 25,515
Other current assets 480
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Total current assets 26,060
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OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 3,539,111
Less accumulated depreciation and depletion 3,471,597
-------------
Property, net 67,514
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TOTAL $ 93,574
=============
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 15,963
Payable to general partner 40,335
-------------
Total current liabilities 56,298
-------------
PARTNERS' CAPITAL (DEFICIT):
Limited partners 38,986
General partner (1,710)
-------------
Total partners' capital 37,276
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TOTAL $ 93,574
=============
</TABLE>
See accompanying notes to financial statements.
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<PAGE>
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM II - 6, L.P.
STATEMENTS OF OPERATIONS
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(UNAUDITED) THREE MONTHS ENDED
---------------------------
MARCH 31, MARCH 31,
1996 1995
----------- ----------
REVENUES:
<S> <C> <C>
Oil and gas sales $ 11,875 8,602
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EXPENSES:
Depreciation and depletion 2,902 2,564
Lease operating expenses 2,492 3,370
Production taxes 731 503
General and administrative 7,425 3,508
----------- ----------
Total expenses 13,550 9,945
----------- ----------
LOSS FROM OPERATIONS (1,675) (1,343)
----------- ----------
OTHER EXPENSE:
Interest expense to general partner - (191)
----------- ----------
NET LOSS $ (1,675) (1,534)
=========== ==========
</TABLE>
See accompanying notes to financial statements.
- ------------------------------------------------------------------------------
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<PAGE>
<TABLE>
<CAPTION>
ENEX OIL AND GAS INCOME PROGRAM II - 6, 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 $ (1,675) $ (1,534)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and depletion 2,902 2,564
(Increase) decrease in:
Accounts receivable - oil & gas sales (5,850) (4,897)
Other current assets (14) -
Increase (decrease) in:
Payable to general partner 451 6,858
Total adjustments (2,511) 4,525
Net cash provided (used) by operating activities (4,186) 2,991
CASH FLOWS FROM INVESTING ACTIVITIES:
Property credits - development costs 27 -
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of note payable to general partner - (2,809)
NET INCREASE (DECREASE) IN CASH (4,159) 182
CASH AT BEGINNING OF YEAR 4,224 337
CASH AT END OF PERIOD $ 65 $ 519
Cash paid during the period for interest $ - $ 191
</TABLE>
See accompanying notes to financial statements.
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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 $3,000 were made on the note payable to the general
partner in the first quarter of 1995. The weighted average principal
outstanding on the note payable to the general partner was $8,065 during
the first quarter of 1995. Outstanding principal bore interest at a
weighted average rate of 9.60% during the first quarter of 1995. The note
was completely repaid in the third quarter of 1995.
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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 $8,602 in 1995 to $11,875
in 1996. This represents an increase of $3,273 (38%). Oil sales increased by
$455 or 9%. A 12% increase in average oil prices increased sales by $559. This
increase was partially offset by a 2% decrease in oil production. Gas sales
increased by $2,818 or 77%. A 46% increase in average gas prices increased sales
by $2,022. A 22% increase in gas production increased sales by an additional
$796. 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 $3,370 in the first quarter of 1995 to
$2,492 in the first quarter of 1996. The decrease of $878 (26%) 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 increased from $2,564 in the first quarter of
1995 to $2,902 in the first quarter of 1996. This represents an increase of $338
(13%). The changes in production, noted above, increased depreciation and
depletion expense by $303. A 1% increase in the depletion rate increased
depreciation and depletion expense by an additional $35. The rate increase was
primarily a result of relatively higher production from properties with a higher
depletion rate partially offset by upward revisions of the oil and gas reserves
at December 31, 1995.
General and administrative expenses increased from $3,508 in 1995 to $7,425 in
1996. This increase of $3,917 is primarily due to a $2,206 increase indirect
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. 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 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
1996.
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 - 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
May 11, 1996 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000769503
<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> mar-31-1996
<CASH> 65
<SECURITIES> 0
<RECEIVABLES> 25515
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<PP&E> 3539111
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0
0
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