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, 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 0-14233
ENEX PROGRAM I PARTNERS, L.P.
(Exact name of small business issuer specified in its charter)
New Jersey 76-0175128
(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
Item I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX PROGRAM I PARTNERS, L.P.
BALANCE SHEET
MARCH 31,
ASSETS 1995
(Unaudited)
CURRENT ASSETS:
Cash $ 21,582
Accounts receivable - oil & gas sales 358,944
Receivable from litigation settlement 260,953
Other current assets 84,897
Total current assets 726,376
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 91,744,868
Less accumulated depreciation and depletion 87,280,368
Property, net 4,464,500
TOTAL $ 5,190,876
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 281,913
PARTNERS' CAPITAL:
Limited partners 3,911,421
General partner 997,542
Total partners' capital 4,908,963
TOTAL $ 5,190,876
See accompanying notes to financial statements.
I-1
ENEX PROGRAM I PARTNERS, L.P.
STATEMENTS OF OPERATIONS
(UNAUDITED) THREE MONTHS ENDED
MARCH 31, MARCH 31,
1995 1994
REVENUES:
Oil, gas and gas plant sales $ 712,806 $ 824,761
EXPENSES:
Depreciation and depletion 163,999 209,076
Lease operating expenses 337,718 384,946
Production taxes 38,275 37,772
General and administrative 277,473 290,274
Total expenses 817,465 922,068
INCOME (LOSS) FROM OPERATIONS (104,659) (97,307)
OTHER INCOME (EXPENSE):
Interest income (expense) 6,524 (6,502)
NET (LOSS) $ (98,135) $ (103,809)
See accompanying notes to financial statements.
I-2
ENEX PROGRAM I PARTNERS, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31, MARCH 31,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (98,135) $ (103,809)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and depletion 163,999 209,076
(Increase) decrease in:
Accounts receivable - oil & gas sales 1,138 (106,957)
Receivable from litigation settlement (6,365) -
Other current assets 10,668 (5,848)
Increase (decrease) in:
Accounts payable 47,687 32,933
Payable to general partner (85,327) 63,155
Total adjustments 131,800 192,359
Net cash provided by operating activities 33,665 88,550
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs (24,352) (9,233)
CASH FLOWS FROM FINANCING ACTIVITIES:
Reduction in note payable to bank - (60,000)
NET INCREASE IN CASH 9,313 19,317
CASH AT BEGINNING OF YEAR 12,269 2,176
CASH AT END OF PERIOD $ 21,582 $ 21,493
Cash paid during the period for interest $ - $ 6,502
See accompanying notes to financial statements.
I-3
ENEX PROGRAM I PARTNERS, 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. The Company has a $613,215 line-of-credit with a bank. The note
payable to a bank had a stated interest rate of prime plus three
fourths of one percent. Principal payments of $60,000 were made on
the note during the first quarter of 1994. The note was completely
repaid in the fourth quarter of 1994. The weighted average
principal outstanding was $390,000 during the first quarter of 1994
and bore interest at a weighted average rate of 6.76% during the
first quarter of 1994.
Item 2. Management's Discussion and Analysis or Plan of Operation.
First Quarter 1994 Compared to First Quarter 1993
Oil and gas sales for the first quarter decreased from $824,761 in 1994
to $712,806 in 1995. This represents a decrease of $111,955 (14%). Oil
sales increased by $24,830 or 8%. A 27% increase in average oil prices
increased sales by $72,994. This increase was partially offset by a 15%
decrease in oil production. Gas sales decreased by $136,785 or 27%.
A 14% decrease in gas production reduced sales by $72,371, while a 27%
decrease in average gas prices reduced sales by an additional $64,414.
The decreases in production were primarily the result of natural
production declines and the shut-in of production for two weeks in
February 1995 from the HNG acquisition due to an explosion in the field.
The changes in average prices correspond with changes in the overall
market for the sale of oil and gas.
Lease operating expenses decreased from $384,946 in 1994 to $337,718 in
1995. The decrease of $47,228 (12%) is primarily due to the declines in
production, noted above.
Depreciation and depletion expense decreased from $209,076 in the first
quarter of 1994 to $163,999 in the first quarter of 1995. This
represents a decrease of $45,077 (22%). The declines in production,
noted above, caused depreciation and depletion expense to decrease by
$30,593. An 8% decrease in the depletion rate reduced depreciation and
depletion expense by an additional $14,484. The decrease in the
depletion rate was primarily due to 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 decreased from $290,274 in 1994 to
$277,473 in 1995. This decrease of $12,801 (4%) is primarily due to
less staff time being required to manage the Company's operations.
CAPITAL RESOURCES AND LIQUIDITY
The Company's cash flow is a direct result of the amount of net proceeds
realized from the sale of oil and gas production and the repayment of
its debt obligations. Accordingly, the changes in cash flow from 1994
to 1995 are primarily due to the changes in oil and gas sales described
above and the repayment of the Company's debt obligations. It is the
general partner's intention to distribute substantially all of the
Company's available cash flow, after debt repayment, to the Company's
partners.
The Company discontinued the payment of distributions during 1990.
Future distributions are dependent upon, among other things, future
prices received for oil and gas. The Company will continue to recover
its reserves and reduce its debt obligations. It is anticipated that
the Company's distributions will be reinstated.
As of March 31, 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 March 31, 1995.
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 PROGRAM I PARTNERS, 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, 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 PROGRAM I PARTNERS, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By:
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
May 11, 1995 By:
James A. Klein
Controller and Chief
Accounting Officer
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