SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 1998
Commission File Number:
I-B: 0-14657 I-C: 0-14658 I-D: 0-15831
I-E: 0-15832 I-F: 0-15833
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
--------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
I-B 73-1231998
I-C 73-1252536
I-D 73-1265223
I-E 73-1270110
Oklahoma I-F 73-1292669
- ---------------------------- -------------------------------
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(918) 583-1791
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 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
------ ------
1
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-B
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-B
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1998 1997
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 52,296 $ 77,028
Accounts receivable:
Oil and gas sales 28,494 53,389
-------- --------
Total current assets $ 80,790 $130,417
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 288,084 327,137
DEFERRED CHARGE 99,262 99,262
-------- --------
$468,136 $556,816
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 5,296 $ 9,366
Gas imbalance payable 3,116 3,116
-------- --------
Total current liabilities $ 8,412 $ 12,482
ACCRUED LIABILITY $ 22,520 $ 22,520
PARTNERS' CAPITAL (DEFICIT):
General Partner ($105,475) ($103,542)
Limited Partners, issued and
outstanding, 11,958 units 542,679 625,356
-------- --------
Total Partners' capital $437,204 $521,814
-------- --------
$468,136 $556,816
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
2
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-B
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
REVENUES:
Oil and gas sales $79,710 $45,296
Interest income 402 265
Gain on sale of oil and gas
properties - 770
------- -------
$80,112 $46,331
COSTS AND EXPENSES:
Lease operating $17,317 $25,878
Production tax 5,012 3,053
Depreciation, depletion, and
amortization of oil and gas
properties 17,089 7,466
General and administrative
(Note 2) 14,042 13,457
------- -------
$53,460 $49,854
------- -------
NET INCOME (LOSS) $26,652 ($ 3,523)
======= =======
GENERAL PARTNER - NET INCOME $ 1,996 $ 109
======= =======
LIMITED PARTNERS - NET INCOME (LOSS) $24,656 ($ 3,632)
======= =======
NET INCOME (LOSS) per unit $ 2.06 ($ .30)
======= =======
UNITS OUTSTANDING 11,958 11,958
======= =======
The accompanying condensed notes are an integral part of these
combined financial statements.
3
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-B
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
REVENUES:
Oil and gas sales $199,910 $236,834
Interest income 1,134 565
Gain (loss) on sale of oil and
gas properties ( 106) 770
-------- --------
$200,938 $238,169
COSTS AND EXPENSES:
Lease operating $ 46,326 $ 74,387
Production tax 11,942 15,933
Depreciation, depletion, and
amortization of oil and gas
properties 39,052 35,728
Impairment provision - 19,726
General and administrative
(Note 2) 48,009 49,834
-------- --------
$145,329 $195,608
-------- --------
NET INCOME $ 55,609 $ 42,561
======== ========
GENERAL PARTNER - NET INCOME $ 4,286 $ 4,318
======== ========
LIMITED PARTNERS - NET INCOME $ 51,323 $ 38,243
======== ========
NET INCOME per unit $ 4.29 $ 3.20
======== ========
UNITS OUTSTANDING 11,958 11,958
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
4
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-B
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-B
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 55,609 $ 42,561
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 39,052 35,728
Impairment provision - 19,726
(Gain) loss on sale of oil and
gas properties 106 ( 770)
Increase in accounts receivable -
General Partner - ( 574)
Decrease in accounts receivable -
oil and gas sales 24,895 23,631
Decrease in accounts payable ( 4,070) ( 9,389)
-------- --------
Net cash provided by operating
activities $115,592 $110,913
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 105) ($ 1,149)
Proceeds from sale of oil and
gas properties - 770
-------- --------
Net cash used by investing activities ($ 105) ($ 379)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($140,219) ($ 96,932)
-------- --------
Net cash used by financing activities ($140,219) ($ 96,932)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 24,732) $ 13,602
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 77,028 13,805
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 52,296 $ 27,407
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
5
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-C
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1998 1997
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 38,214 $141,699
Accounts receivable:
Oil and gas sales 61,015 130,355
-------- --------
Total current assets $ 99,229 $272,054
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 314,595 334,734
DEFERRED CHARGE 110,943 110,943
-------- --------
$524,767 $717,731
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 15,613 $ 22,321
-------- --------
Total current liabilities $ 15,613 $ 22,321
ACCRUED LIABILITY $ 18,103 $ 18,103
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 93,724) ($ 89,189)
Limited Partners, issued and
outstanding, 8,885 units 584,775 766,496
-------- --------
Total Partners' capital $491,051 $677,307
-------- --------
$524,767 $717,731
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
6
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- ----------
REVENUES:
Oil and gas sales $95,155 $203,427
Interest income 358 673
Gain on sale of oil and
gas properties - 719
------- --------
$95,513 $204,819
COSTS AND EXPENSES:
Lease operating $46,679 $ 83,405
Production tax 6,261 14,347
Depreciation, depletion, and
amortization of oil and gas
properties 5,342 9,384
General and administrative
(Note 2) 25,400 24,967
------- --------
$83,682 $132,103
------- --------
NET INCOME $11,831 $ 72,716
======= ========
GENERAL PARTNER - NET INCOME $ 788 $ 3,978
======= ========
LIMITED PARTNERS - NET INCOME $11,043 $ 68,738
======= ========
NET INCOME per unit $ 1.24 $ 7.74
======= ========
UNITS OUTSTANDING 8,885 8,885
======= ========
The accompanying condensed notes are an integral part of these
combined financial statements.
7
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
REVENUES:
Oil and gas sales $377,250 $675,402
Interest income 2,348 3,461
Loss on sale of oil and gas
properties ( 20) ( 3,643)
-------- --------
$379,578 $675,220
COSTS AND EXPENSES:
Lease operating $140,610 $207,922
Production tax 23,337 40,946
Depreciation, depletion, and
amortization of oil and gas
properties 18,338 32,670
Impairment provision - 4,679
General and administrative
(Note 2) 80,561 82,034
-------- --------
$262,846 $368,251
-------- --------
NET INCOME $116,732 $306,969
======== ========
GENERAL PARTNER - NET INCOME $ 6,453 $ 16,669
======== ========
LIMITED PARTNERS - NET INCOME $110,279 $290,300
======== ========
NET INCOME per unit $ 12.41 $ 32.67
======== ========
UNITS OUTSTANDING 8,885 8,885
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
8
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-C
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $116,732 $306,969
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 18,338 32,670
Impairment provision - 4,679
Loss on sale of oil and gas
properties 20 3,643
Decrease in accounts receivable -
oil and gas sales 69,340 14,172
Decrease in accounts receivable -
General Partner - 14,812
Increase (decrease) in accounts
payable ( 6,708) 4,213
Increase in accounts payable -
General Partner - 65,000
-------- --------
Net cash provided by operating
activities $197,722 $446,158
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ - ($102,319)
Proceeds from sale of oil and
gas properties 1,781 6,718
-------- --------
Net cash provided (used) by
investing activities $ 1,781 ($ 95,601)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($302,988) ($562,558)
-------- --------
Net cash used by financing activities ($302,988) ($562,558)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($103,485) ($212,001)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 141,699 218,437
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 38,214 $ 6,436
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
9
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1998 1997
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 289,099 $ 274,109
Accounts receivable:
Oil and gas sales 113,690 256,001
---------- ----------
Total current assets $ 402,789 $ 530,110
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 655,384 714,156
DEFERRED CHARGE 104,793 104,793
---------- ----------
$1,162,966 $1,349,059
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 8,364 $ 31,310
Gas imbalance payable 39,971 39,971
---------- ----------
Total current liabilities $ 48,335 $ 71,281
ACCRUED LIABILITY $ 14,345 $ 14,345
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 49,379) ($ 27,560)
Limited Partners, issued and
outstanding, 7,195 units 1,149,665 1,290,993
---------- ----------
Total Partners' capital $1,100,286 $1,263,433
---------- ----------
$1,162,966 $1,349,059
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
10
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
REVENUES:
Oil and gas sales $331,185 $312,571
Interest income 3,210 2,537
Gain on sale of oil and
gas properties 4,186 137
-------- --------
$338,581 $315,245
COSTS AND EXPENSES:
Lease operating $ 24,216 $ 67,080
Production tax 22,718 22,341
Depreciation, depletion, and
amortization of oil and gas
properties 20,706 22,391
General and administrative
(Note 2) 21,655 21,276
-------- --------
$ 89,295 $133,088
-------- --------
NET INCOME $249,286 $182,157
======== ========
GENERAL PARTNER - NET INCOME $ 39,810 $ 30,078
======== ========
LIMITED PARTNERS - NET INCOME $209,476 $152,079
======== ========
NET INCOME per unit $ 29.12 $ 21.14
======== ========
UNITS OUTSTANDING 7,195 7,195
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
11
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
----------- ----------
REVENUES:
Oil and gas sales $ 811,567 $1,117,685
Interest income 9,298 7,924
Gain on sale of oil and
gas properties 259,982 15,961
---------- ----------
$1,080,847 $1,141,570
COSTS AND EXPENSES:
Lease operating $ 81,687 $ 144,414
Production tax 54,540 73,053
Depreciation, depletion, and
amortization of oil and gas
properties 48,294 82,678
Impairment provision - 61,790
General and administrative
(Note 2) 69,222 70,643
---------- ----------
$ 253,743 $ 432,578
---------- ----------
NET INCOME $ 827,104 $ 708,992
========== ==========
GENERAL PARTNER - NET INCOME $ 129,432 $ 125,386
========== ==========
LIMITED PARTNERS - NET INCOME $ 697,672 $ 583,606
========== ==========
NET INCOME per unit $ 96.97 $ 81.11
========== ==========
UNITS OUTSTANDING 7,195 7,195
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
12
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $827,104 $ 708,992
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 48,294 82,678
Impairment provision - 61,790
Gain on sale of oil and gas
properties ( 259,982) ( 15,961)
Decrease in accounts receivable -
oil and gas sales 142,311 78,986
Decrease in accounts payable ( 22,946) ( 516)
-------- ----------
Net cash provided by operating
activities $734,781 $ 915,969
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 2,364) ($ 1,129)
Proceeds from sale of oil and
gas properties 272,824 16,375
-------- ----------
Net cash provided by investing
activities $270,460 $ 15,246
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($990,251) ($1,088,390)
-------- ----------
Net cash used by financing activities ($990,251) ($1,088,390)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 14,990 ($ 157,175)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 274,109 344,951
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $289,099 $ 187,776
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
13
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1998 1997
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 976,699 $ 827,775
Accounts receivable:
Oil and gas sales 517,610 994,354
Other - 69,917
---------- ----------
Total current assets $1,494,309 $1,892,046
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 4,201,532 4,844,378
DEFERRED CHARGE 750,369 750,369
---------- ----------
$6,446,210 $7,486,793
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 68,412 $ 257,524
Gas imbalance payable 135,884 135,884
---------- ----------
Total current liabilities $ 204,296 $ 393,408
ACCRUED LIABILITY $ 138,356 $ 138,356
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 310,695) ($ 228,434)
Limited Partners, issued and
outstanding, 41,839 units 6,414,253 7,183,463
---------- ----------
Total Partners' capital $6,103,558 $6,955,029
---------- ----------
$6,446,210 $7,486,793
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
14
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $1,332,007 $1,293,478
Interest income 11,851 9,123
Gain on sale of oil and
gas properties 9,953 -
---------- ----------
$1,353,811 $1,302,601
COSTS AND EXPENSES:
Lease operating $ 209,281 $ 333,931
Production tax 96,904 86,655
Depreciation, depletion, and
amortization of oil and gas
properties 210,621 191,363
General and administrative
(Note 2) 125,620 123,707
---------- ----------
$ 642,426 $ 735,656
---------- ----------
NET INCOME $ 711,385 $ 566,945
========== ==========
GENERAL PARTNER - NET INCOME $ 134,417 $ 110,464
========== ==========
LIMITED PARTNERS - NET INCOME $ 576,968 $ 456,481
========== ==========
NET INCOME per unit $ 13.79 $ 10.91
========== ==========
UNITS OUTSTANDING 41,839 41,839
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
15
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $3,424,077 $4,504,924
Interest income 34,150 26,047
Gain on sale of oil and
gas properties 1,159,004 62,609
---------- ----------
$4,617,231 $4,593,580
COSTS AND EXPENSES:
Lease operating $ 665,420 $ 928,397
Production tax 241,843 303,820
Depreciation, depletion, and
amortization of oil and gas
properties 523,339 590,946
Impairment provision - 291,690
General and administrative
(Note 2) 398,470 406,281
---------- ----------
$1,829,072 $2,521,134
---------- ----------
NET INCOME $2,788,159 $2,072,446
========== ==========
GENERAL PARTNER - NET INCOME $ 486,369 $ 430,529
========== ==========
LIMITED PARTNERS - NET INCOME $2,301,790 $1,641,917
========== ==========
NET INCOME per unit $ 55.02 $ 39.24
========== ==========
UNITS OUTSTANDING 41,839 41,839
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
16
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,788,159 $2,072,446
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 523,339 590,946
Impairment provision - 291,690
Gain on sale of oil and gas
properties ( 1,159,004) ( 62,609)
Decrease in accounts receivable -
oil and gas sales 476,744 367,602
Decrease in accounts receivable -
other 69,917 -
Decrease in accounts payable ( 189,112) ( 10,252)
---------- ----------
Net cash provided by operating
activities $2,510,043 $3,249,823
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ - ($ 118,823)
Proceeds from sale of oil and
gas properties 1,278,511 80,537
---------- ----------
Net cash provided (used) by
investing activities $1,278,511 ($ 38,286)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($3,639,630) ($3,356,847)
---------- ----------
Net cash used by financing activities ($3,639,630) ($3,356,847)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 148,924 ($ 145,310)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 827,775 894,887
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 976,699 $ 749,577
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
17
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1998 1997
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 279,708 $ 251,220
Accounts receivable:
Oil and gas sales 161,277 307,734
Other - 48,942
---------- ----------
Total current assets $ 440,985 $ 607,896
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,198,342 1,457,908
DEFERRED CHARGE 501,016 501,016
---------- ----------
$2,140,343 $2,566,820
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 32,344 $ 53,205
Gas imbalance payable 47,046 47,046
---------- ----------
Total current liabilities $ 79,390 $ 100,251
ACCRUED LIABILITY $ 116,401 $ 116,401
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 106,130) ($ 59,811)
Limited Partners, issued and
outstanding, 14,321 units 2,050,682 2,409,979
---------- ----------
Total Partners' capital $1,944,552 $2,350,168
---------- ----------
$2,140,343 $2,566,820
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
18
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $409,569 $451,008
Interest income 3,065 3,067
Gain on sale of oil and
gas properties 2,403 -
-------- --------
$415,037 $454,075
COSTS AND EXPENSES:
Lease operating $ 93,294 $173,542
Production tax 30,034 28,227
Depreciation, depletion, and
amortization of oil and gas
properties 65,631 61,024
General and administrative
(Note 2) 42,912 42,342
-------- --------
$231,871 $305,135
-------- --------
NET INCOME $183,166 $148,940
======== ========
GENERAL PARTNER - NET INCOME $ 36,204 $ 30,425
======== ========
LIMITED PARTNERS - NET INCOME $146,962 $118,515
======== ========
NET INCOME per unit $ 10.26 $ 8.28
======== ========
UNITS OUTSTANDING 14,321 14,321
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
19
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $1,096,504 $1,579,881
Interest income 10,784 8,781
Gain on sale of oil and
gas properties 335,669 46,356
---------- ----------
$1,442,957 $1,635,018
COSTS AND EXPENSES:
Lease operating $ 309,400 $ 472,591
Production tax 74,424 101,421
Depreciation, depletion, and
amortization of oil and gas
properties 161,523 187,670
Impairment provision - 114,631
General and administrative
(Note 2) 136,788 139,601
---------- ----------
$ 682,135 $1,015,914
---------- ----------
NET INCOME $ 760,822 $ 619,104
========== ==========
GENERAL PARTNER - NET INCOME $ 135,119 $ 133,871
========== ==========
LIMITED PARTNERS - NET INCOME $ 625,703 $ 485,233
========== ==========
NET INCOME per unit $ 43.69 $ 33.88
========== ==========
UNITS OUTSTANDING 14,321 14,321
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
20
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 760,822 $ 619,104
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 161,523 187,670
Impairment provision - 114,631
Gain on sale of oil and gas
properties ( 335,669) ( 46,356)
Decrease in accounts receivable -
oil and gas sales 146,457 123,342
Decrease in accounts receivable -
other 48,942 -
Increase (decrease) in accounts
payable ( 20,861) 6,708
---------- ----------
Net cash provided by operating
activities $ 761,214 $1,005,099
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 4,488) ($ 43,416)
Proceeds from sale of oil and
gas properties 438,200 58,027
---------- ----------
Net cash provided by investing
activities $ 433,712 $ 14,611
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,166,438) ($1,103,694)
---------- ----------
Net cash used by financing activities ($1,166,438) ($1,103,694)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 28,488 ($ 83,984)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 251,220 339,064
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 279,708 $ 255,080
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
21
<PAGE>
GEODYNE ENERGY INCOME I LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
SEPTEMBER 30, 1998
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of September 30, 1998, combined statements
of operations for the three and nine months ended September 30, 1998 and
1997, and combined statements of cash flows for the nine months ended
September 30, 1998 and 1997 have been prepared by Geodyne Resources, Inc.,
the General Partner of the limited partnerships, without audit. Each
limited partnership is a general partner in the related Geodyne Energy
Income Production Partnership in which Geodyne Resources, Inc. serves as
the managing partner. Unless the context indicates otherwise, all
references to a "Partnership" or the "Partnerships" are references to the
limited partnership and its related production partnership, collectively,
and all references to the "General Partner" are references to the general
partner of the limited partnerships and the managing partner of the
production partnerships, collectively. In the opinion of management the
financial statements referred to above include all necessary adjustments,
consisting of normal recurring adjustments, to present fairly the combined
financial position at September 30, 1998, the combined results of
operations for the three and nine months ended September 30, 1998 and
1997, and the combined cash flows for the nine months ended September 30,
1998 and 1997.
Information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The accompanying interim
financial statements should be read in conjunction with the Partnerships'
Annual Report on Form 10-K filed for the year ended December 31, 1997. The
results of operations for the period ended September 30, 1998 are not
necessarily indicative of the results to be expected for the full year.
The Limited Partners' net income or loss per unit is based upon each
$1,000 initial capital contribution.
22
<PAGE>
OIL AND GAS PROPERTIES
----------------------
The Partnerships follow the successful efforts method of accounting for
their oil and gas properties. Under the successful efforts method, the
Partnerships capitalize all property acquisition costs and development
costs incurred in connection with the further development of oil and gas
reserves. Property acquisition costs include costs incurred by the
Partnerships or the General Partner to acquire producing properties,
including related title insurance or examination costs, commissions,
engineering, legal and accounting fees, and similar costs directly related
to the acquisitions, plus an allocated portion, of the General Partner's
property screening costs. The acquisition cost to the Partnerships of
properties acquired by the General Partner is adjusted to reflect the net
cash results of operations, including interest incurred to finance the
acquisition, for the period of time the properties are held by the General
Partner prior to their transfer to the Partnerships. Leasehold impairment
is recognized based upon an individual property assessment and exploratory
experience. Upon discovery of commercial reserves, leasehold costs are
transferred to producing properties.
Depletion of the costs of producing oil and gas properties, amortization
of related intangible drilling and development costs, and depreciation of
tangible lease and well equipment are computed on the unit-of-production
method. The Partnerships' depletion, depreciation, and amortization
includes estimated dismantlement and abandonment costs, net of estimated
salvage value.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss reflected in income. When less than complete units of depreciable
property are retired or sold, the difference between asset cost and
salvage value is charged to accumulated depreciation.
23
<PAGE>
Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting
for the Impairment of Long Lived Assets and Assets Held for Disposal",
requires successful efforts companies, like the Partnerships, to evaluate
the recoverability of the carrying costs of their proved oil and gas
properties at the lowest level for which there are identifiable cash flows
that are largely independent of the cash flows of other groups of oil and
gas properties. With respect to the Partnerships' oil and gas properties,
this evaluation was performed for each field. SFAS No. 121, provides that
if the unamortized costs of oil and gas properties for each field exceed
the expected undiscounted future cash flows from such properties, the cost
of the properties is written down to fair value, which is determined by
using the discounted future cash flows from the properties. The
Partnerships recorded a non-cash charge against earnings (impairment
provision) during the nine months ended September 30, 1997 pursuant to
SFAS No. 121 as follows:
Partnership Amount
----------- -----------
I-B $ 19,726
I-C 4,679
I-D 61,790
I-E 291,690
I-F 114,631
No such charge was recorded in the nine months ended September 30, 1998.
The risk that the Partnerships will be required to record such impairment
provisions in the future increases when oil and gas prices are depressed.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' partnership agreements provide for reimbursement to the
General Partner for all direct general and administrative expenses and for
the general and administrative overhead applicable to the Partnerships
based on an allocation of actual costs incurred. During the three months
ended September 30, 1998 the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
I-B $2,729 $ 11,313
I-C 2,018 23,382
I-D 1,669 19,986
I-E 9,400 116,220
I-F 3,132 39,780
24
<PAGE>
During the nine months ended September 30, 1998 the following payments
were made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
I-B $14,070 $ 33,939
I-C 10,415 70,146
I-D 9,264 59,958
I-E 49,810 348,660
I-F 17,448 119,340
Affiliates of the Partnerships operate certain of the Partnerships'
properties and their policy is to bill the Partnerships for all customary
charges and cost reimbursements associated with their activities.
25
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
- -----------------------------------------------
This Quarterly Report contains certain forward-looking statements. The
words "anticipate", "believe", "expect", "plan", "intend", "estimate",
"project", "could", "may" and similar expressions are intended to identify
forward-looking statements. Such statements reflect management's current
views with respect to future events and financial performance. This
Quarterly Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions are
management's efforts to accurately reflect the condition and operation of
the Partnerships.
Use of forward-looking statements and estimates and assumptions involve
risks and uncertainties which include, but are not limited to, the
volatility of oil and gas prices, the uncertainty of reserve information,
the operating risk associated with oil and gas properties (including the
risk of personal injury, death, property damage, damage to the well or
producing reservoir, environmental contamination, and other operating
risks), the prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the general
economic climate, the supply and price of foreign imports of oil and gas,
the level of consumer product demand, and the price and availability of
alternative fuels. Should one or more of these risks or uncertainties
occur or should estimates or underlying assumptions prove incorrect,
actual conditions or results may vary materially and adversely from those
stated, anticipated, believed, estimated, and otherwise indicated.
GENERAL
- -------
The Partnerships are engaged in the business of acquiring and operating
producing oil and gas properties located in the continental United States.
In general, a Partnership acquired producing properties and did not engage
in development drilling or enhanced recovery projects, except as an
incidental part of the management of the producing properties acquired.
Therefore, the economic life of each Partnership, and its related
Production Partnership, is limited to the period of time required to fully
produce its acquired oil and gas reserves. The net proceeds from the oil
and gas operations are distributed to the Limited Partners and the General
Partner in accordance with the terms of the Partnerships' partnership
agreements.
26
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
I-B July 12, 1985 $11,957,700
I-C December 20, 1985 8,884,900
I-D March 4, 1986 7,194,700
I-E September 10, 1986 41,839,400
I-F December 16, 1986 14,320,900
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
Net proceeds from the operations less necessary operating capital are
distributed to the Limited Partners on a quarterly basis. Revenues and net
proceeds of a Partnership are largely dependent upon the volumes of oil
and gas sold and the prices received for such oil and gas. While the
General Partner cannot predict future pricing trends, it believes the
working capital available as of September 30, 1998 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
The I-C, I-D, I-E and I-F Partnerships' Statements of Cash Flows for the
nine months ended September 30, 1998 include proceeds from the sale of oil
and gas properties. The proceeds received during the first quarter of 1998
were included in the Partnerships' cash distributions paid during May
1998, the proceeds received during the second quarter of 1998 were
included in the Partnerships' cash distributions paid during August 1998,
and the proceeds received during the third quarter of 1998 will be
included in the Partnerships' cash distributions to be paid in November
1998. It is possible that the Partnerships' repurchase values and future
cash distributions could decline as a result of the disposition of these
properties. On the other hand, the General Partner believes there will be
beneficial operating efficiencies related to the Partnerships' remaining
properties. This is primarily due to the fact that the properties sold
generally bore a higher ratio of
27
<PAGE>
operating expenses as compared to reserves than the Partnerships'
remaining properties.
The Partnerships will terminate on December 31, 1999 in accordance with
their partnership agreements. However, the partnership agreements provide
that the General Partner may extend the term of each Partnership for up to
five periods of two years each. As of the date of this Quarterly Report,
the General Partner has not determined whether to extend the term of any
Partnership.
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction with the
analysis of results of operations provided below. The most important
variable affecting the Partnerships' revenues is the prices received for
the sale of oil and gas. Predicting future prices is very difficult.
Substantially all of the Partnerships' gas reserves are being sold in the
"spot market". Prices on the spot market are subject to wide seasonal and
regional pricing fluctuations due to the highly competitive nature of the
spot market. Such spot market sales are generally short-term in nature and
are dependent upon the obtaining of transportation services provided by
pipelines. In addition, crude oil prices are at or near their lowest level
in the past decade due primarily to the global surplus of crude oil.
Management is unable to predict whether future oil and gas prices will (i)
stabilize, (ii) increase, or (iii) decrease.
I-B PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997.
Three Months Ended September 30,
--------------------------------
1998 1997
------- -------
Oil and gas sales $79,710 $45,296
Oil and gas production expenses $22,329 $28,931
Barrels produced 259 515
Mcf produced 43,023 16,820
Average price/Bbl $ 13.05 $ 18.51
Average price/Mcf $ 1.77 $ 2.13
As shown in the table above, total oil and gas sales increased $34,414
(76.0%), for the three months ended September 30, 1998 as compared to the
three months ended
28
<PAGE>
September 30, 1997. Of this increase, approximately $56,000 was related to
an increase in the volumes of gas sold, which increase was partially
offset by decreases of approximately $5,000 related to a decrease in the
volumes of oil sold and approximately $15,000 related to a decrease in the
average price of gas sold. Volumes of oil sold decreased 256 barrels while
volumes of gas sold increased 26,203 Mcf, for the three months ended
September 30, 1998 as compared to the three months ended September 30,
1997. The decrease in volumes of oil sold resulted primarily from the sale
of three significant wells in 1997. The increase in volumes of gas sold
resulted primarily from positive prior period volume adjustments made by
the purchasers on three wells during the three months ended September 30,
1998. Average oil and gas prices decreased to $13.05 per barrel and $1.77
per Mcf, respectively, for the three months ended September 30, 1998 from
$18.51 per barrel and $2.13 per Mcf, respectively, for the three months
ended September 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $6,602 (22.8%) for the three months ended
September 30, 1998 as compared to the three months ended September 30,
1997. This decrease resulted primarily from workover expenses incurred on
two significant wells during the three months ended September 30, 1997 in
order to improve the recovery of reserves. As a percentage of oil and gas
sales, these expenses decreased to 28.0% for the three months ended
September 30, 1998 from 63.9% for the three months ended September 30,
1997. This percentage decrease was primarily due to the positive prior
period volume adjustments.
Depreciation, depletion, and amortization of oil and gas properties
increased $9,623 (128.9%) for the three months ended September 30, 1998 as
compared to the three months ended September 30, 1997. This increase
resulted primarily from the increase in volumes of gas sold during the
three months ended September 30, 1998 as compared to the three months
ended September 30 1997. As a percentage of oil and gas sales, this
expense increased to 21.4% for the three months ended September 30, 1998
from 16.5% for the three months ended September 30, 1997. This percentage
increase was primarily due to the decreases in the average prices of oil
and gas sold during the three months ended September 30, 1998 as compared
to the three months ended September 30 1997.
General and administrative expenses increased $585 (4.3%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
decreased to 17.6% for the three months ended September 30, 1998 from
29.7% for the three months ended September 30, 1997. This percentage
decrease was primarily due to the increase in oil and gas sales.
29
<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
Nine Months Ended September 30,
-------------------------------
1998 1997
-------- --------
Oil and gas sales $199,910 $236,834
Oil and gas production expenses $ 58,268 $ 90,320
Barrels produced 995 1,628
Mcf produced 95,902 85,508
Average price/Bbl $ 13.14 $ 19.54
Average price/Mcf $ 1.95 $ 2.40
As shown in the table above, total oil and gas sales decreased $36,924
(15.6%) for the nine months ended September 30, 1998 as compared to the
nine months ended September 30, 1997. Of this decrease, approximately
$6,000 and $43,000, respectively, were related to decreases in the average
prices of oil and gas sold and approximately $12,000 was related to a
decrease in the volumes of oil sold, which decreases were partially offset
by an increase of approximately $25,000 related to an increase in the
volumes of gas sold. Volumes of oil sold decreased 633 barrels while
volumes of gas sold increased 10,394 Mcf for the nine months ended
September 30, 1998 as compared to the nine months ended September 30,
1997. The decrease in volumes of oil sold resulted primarily from (i) a
normal decline in production on several wells due to diminishing reserves
and (ii) the sale of three significant wells in 1997. The increase in
volumes of gas sold resulted primarily from positive prior period volume
adjustments made by the purchasers on three significant wells during the
nine months ended September 30, 1998. Average oil and gas prices decreased
to $13.14 per barrel and $1.95 per Mcf, respectively, for the nine months
ended September 30, 1998 from $19.54 per barrel and $2.40 per Mcf,
respectively, for the nine months ended September 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $32,052 (35.5%) for the nine months ended
September 30, 1998 as compared to the nine months ended September 30,
1997. This decrease resulted primarily from workover expenses incurred on
two significant wells during the nine months ended September 30, 1997 in
order to improve the recovery of reserves. As a percentage of oil and gas
sales, these expenses decreased to 29.1% for the nine months ended
September 30, 1998 from 38.1% for the nine months ended September 30,
1997. This percentage decrease was primarily due to the dollar decrease in
production expenses.
30
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
increased $3,324 (9.3%) for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997. This increase
resulted primarily from the increase in volumes of gas sold during the
nine months ended September 30, 1998 as compared to the nine months ended
September 30 1997. As a percentage of oil and gas sales, this expense
increased to 19.5% for the nine months ended September 30, 1998 from 15.1%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold
during the nine months ended September 30, 1998 as compared to the nine
months ended September 30 1997.
The I-B Partnership recognized a non-cash charge against earnings of
$19,726 during the nine months ended September 30, 1997. Of this amount,
$17,233 was related to the decline in oil and gas prices used to determine
the recoverability of proved oil and gas reserves at March 31, 1997 and
$2,493 was related to the writing off of unproved properties. These
unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the I-B Partnership's Partnership Agreement which limit
the level of permissible drilling activity. No similar charge was
necessary during the nine months ended September 30, 1998.
General and administrative expenses decreased $1,825 (3.7%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
increased to 24.0% for the nine months ended September 30, 1998 from 21.0%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 1998 totaling $6,678,527 or 55.85% of Limited Partners' capital
contributions.
31
<PAGE>
I-C PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997.
Three Months Ended September 30,
--------------------------------
1998 1997
------- --------
Oil and gas sales $95,155 $203,427
Oil and gas production expenses $52,940 $ 97,752
Barrels produced 3,483 5,660
Mcf produced 26,940 38,365
Average price/Bbl $ 12.19 $ 17.12
Average price/Mcf $ 1.96 $ 2.78
As shown in the table above, total oil and gas sales decreased $108,272
(53.2%) for the three months ended September 30, 1998 as compared to the
three months ended September 30, 1997. Of this decrease, approximately
$37,000 and $32,000, respectively, were related to decreases in the
volumes of oil and gas sold and approximately $17,000 and $22,000,
respectively, were related to decreases in the average prices of oil and
gas sold. Volumes of oil and gas sold decreased 2,177 barrels and 11,425
Mcf, respectively, for the three months ended September 30, 1998 as
compared to the three months ended September 30, 1997. The decrease in
volumes of oil sold resulted primarily from (i) normal declines in
production due to diminishing reserves on two significant wells and (ii)
the sale of one significant well in 1997. The decrease in volumes of gas
sold resulted primarily from normal declines in production due to
diminishing reserves on two significant wells. Average oil and gas prices
decreased to $12.19 per barrel and $1.96 per Mcf, respectively, for the
three months ended September 30, 1998 from $17.12 per barrel and $2.78 per
Mcf, respectively, for the three months ended September 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $44,812 (45.8%) for the three months ended
September 30, 1998 as compared to the three months ended September 30,
1997. This decrease resulted primarily from (i) the decreases in the
volumes of oil and gas sold during the three months ended September 30,
1998 as compared to the three months ended September 30, 1997, (ii)
workover expenses incurred on one significant well in 1997 in order to
improve the recovery of reserves, and (iii) the sale of one significant
well in 1997. As a percentage of oil and gas sales, these expenses
increased to 55.6% for the three months ended September 30, 1998 from
48.1% for the three months ended September 30, 1997. This percentage
increase was primarily due to the decreases in the average prices of oil
and gas sold during the three
32
<PAGE>
months ended September 30, 1998 as compared to the three months ended
September 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $4,042 (43.1%) for the three months ended September 30, 1998 as
compared to the three months ended September 30, 1997. This decrease
resulted primarily from the decreases in volumes of oil and gas sold
during the three months ended September 30, 1998 as compared to the three
months ended September 30, 1997. As a percentage of oil and gas sales,
this expense increased to 5.6% for the three months ended September 30,
1998 from 4.6% for the three months ended September 30, 1997.
General and administrative expenses increased $433 (1.7%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
increased to 26.7% for the three months ended September 30, 1998 from
12.3% for the three months ended September 30, 1997. This percentage
increase was primarily due to the decrease in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
Nine Months Ended September 30,
-------------------------------
1998 1997
-------- --------
Oil and gas sales $377,250 $675,402
Oil and gas production expenses $163,947 $248,868
Barrels produced 10,865 16,882
Mcf produced 99,032 128,019
Average price/Bbl $ 12.37 $ 18.99
Average price/Mcf $ 2.45 $ 2.77
As shown in the table above, total oil and gas sales decreased $298,152
(44.1%) for the nine months ended September 30, 1998 as compared to the
nine months ended September 30, 1997. Of this decrease, approximately
$114,000 and $80,000, respectively, were related to decreases in the
volumes of oil and gas sold and approximately $72,000 and $32,000,
respectively, were related to decreases in the average prices of oil and
gas sold. Volumes of oil and gas sold decreased 6,017 barrels and 28,987
Mcf, respectively, for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997. The decrease in
volumes of oil sold resulted primarily from (i) the sale of one
significant well in 1997 and (ii) normal declines in production due to
diminishing reserves on another significant well. The decrease in volumes
of gas sold resulted primarily from normal declines in production due to
diminishing reserves on
33
<PAGE>
a significant well. Average oil and gas prices decreased to $12.37 per
barrel and $2.45 per Mcf, respectively, for the nine months ended
September 30, 1998 from $18.99 per barrel and $2.77 per Mcf, respectively,
for the nine months ended September 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $84,921 (34.1%) for the nine months ended
September 30, 1998 as compared to the nine months ended September 30,
1997. This decrease resulted primarily from (i) the decreases in the
volumes of oil and gas sold during the nine months ended September 30,
1998 as compared to the nine months ended September 30, 1997, (ii)
workover expenses incurred on one significant well in 1997 in order to
improve the recovery of reserves and (iii) the sale of another significant
well in 1997. As a percentage of oil and gas sales, these expenses
increased to 43.5% for the nine months ended September 30, 1998 from 36.8%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold
during the nine months ended September 30, 1998 as compared to the nine
months ended September 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $14,332 (43.9%) for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997. This decrease
resulted primarily from the decreases in volumes of oil and gas sold
during the nine months ended September 30, 1998 as compared to the nine
months ended September 30, 1997. As a percentage of oil and gas sales,
this expense remained relatively constant at 4.9% for the nine months
ended September 30, 1998 and 4.8% for the nine months ended September 30,
1997.
The I-C Partnership recognized a non-cash charge against earnings of
$4,679 during the nine months ended September 30, 1997 primarily related
to the decline in oil and gas prices used to determine the recoverability
of proved oil and gas reserves at March 31, 1997. No similar charge was
necessary during the nine months ended September 30, 1998.
General and administrative expenses decreased $1,473 (1.8%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
increased to 21.4% for the nine months ended September 30, 1998 from 12.1%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decrease in oil and gas sales.
34
<PAGE>
The Limited Partners have received cash distributions through September
30, 1998 totaling $8,173,300 or 91.99% of Limited Partners' capital
contributions.
I-D PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997.
Three Months Ended September 30,
--------------------------------
1998 1997
-------- --------
Oil and gas sales $331,185 $312,571
Oil and gas production expenses $ 46,934 $ 89,421
Barrels produced 2,497 3,803
Mcf produced 155,204 101,830
Average price/Bbl $ 12.20 $ 16.85
Average price/Mcf $ 1.94 $ 2.44
As shown in the table above, total oil and gas sales increased $18,614
(6.0%) for the three months ended September 30, 1998 as compared to the
three months ended September 30, 1997. Of this increase, approximately
$130,000 was related to an increase in the volumes of gas sold, which
increase was partially offset by decreases of approximately $22,000
related to a decrease in the volumes of oil sold and approximately $12,000
and $78,000, respectively, related to decreases in the average prices of
oil and gas sold. Volumes of oil sold decreased 1,306 barrels while
volumes of gas sold increased 53,374 Mcf for the three months ended
September 30, 1998 as compared to the three months ended September 30,
1997. The decrease in volumes of oil sold resulted primarily from normal
declines in production due to diminishing reserves on one significant
well. The increase in volumes of gas sold resulted primarily from positive
prior period volume adjustments made by the purchasers on three
significant wells during the three months ended September 30, 1998.
Average oil and gas prices decreased to $12.20 per barrel and $1.94 per
Mcf, respectively, for the three months ended September 30, 1998 from
$16.85 per barrel and $2.44 per Mcf, respectively, for the three months
ended September 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $42,487 (47.5%) for the three months ended
September 30, 1998 as compared to the three months ended September 30,
1997. This decrease resulted primarily from workover expenses incurred on
two significant wells during the three months ended September 30, 1997 in
order to improve the recovery of reserves. As a percentage of oil and gas
sales, these expenses decreased to 14.2% for the three months ended
September 30, 1998 from
35
<PAGE>
28.6% for the three months ended September 30, 1997. This decrease
resulted primarily from the dollar decrease in production expenses.
Depreciation, depletion, and amortization of oil and gas properties
decreased $1,685 (7.5%) for the three months ended September 30, 1998 as
compared to the three months ended September 30, 1997. As a percentage of
oil and gas sales, this expense decreased to 6.3% for the three months
ended September 30, 1998 from 7.2% for the three months ended September
30, 1997.
General and administrative expenses increased $379 (1.8%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
remained relatively constant at 6.5% for the three months ended September
30, 1998 and 6.8% for the three months ended September 30, 1997.
NINE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
Nine Months Ended September 30,
-------------------------------
1998 1997
-------- ----------
Oil and gas sales $811,567 $1,117,685
Oil and gas production expenses $136,227 $ 217,467
Barrels produced 8,830 12,322
Mcf produced 343,955 359,879
Average price/Bbl $ 12.94 $ 19.48
Average price/Mcf $ 2.03 $ 2.44
As shown in the table above, total oil and gas sales decreased $306,118
(27.4%) for the nine months ended September 30, 1998 as compared to the
nine months ended September 30, 1997. Of this decrease, approximately
$68,000 and $39,000, respectively, were related to decreases in the
volumes of oil and gas sold and approximately $58,000 and $141,000,
respectively, were related to decreases in the average prices of oil and
gas sold. Volumes of oil and gas sold decreased 3,492 barrels and 15,924
Mcf, respectively, for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997. The decrease in
volumes of oil sold resulted primarily from a normal decline in production
due to diminishing reserves on one significant well. Average oil and gas
prices decreased to $12.94 per barrel and $2.03 per Mcf, respectively, for
the nine months ended September 30, 1998 from $19.48 per barrel and $2.44
per Mcf, respectively, for the nine months ended September 30, 1997.
36
<PAGE>
As discussed in Liquidity and Capital Resources above, the I-D Partnership
sold certain oil and gas properties during the nine months ended September
30, 1998 and recognized a $259,982 gain on such sales. Similar sales
during the nine months ended September 30, 1997 resulted in the I-D
Partnership recognizing similar gains totaling $15,961.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $81,240 (37.4%) for the nine months ended
September 30, 1998 as compared to the nine months ended September 30,
1997. This decrease resulted primarily from (i) a decrease in production
taxes associated with the decrease in oil and gas sales and (ii) workover
expenses incurred on two significant wells during the nine months ended
September 30, 1997 in order to improve the recovery of reserves. As a
percentage of oil and gas sales, these expenses decreased to 16.8% for the
nine months ended September 30, 1998 from 19.5% for the nine months ended
September 30, 1997. This percentage decrease was primarily due to the
dollar decrease in production expenses.
Depreciation, depletion, and amortization of oil and gas properties
decreased $34,384 (41.6%) for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997. This decrease
resulted primarily from (i) the decreases in volumes of oil and gas sold
during the nine months ended September 30, 1998 as compared to the nine
months ended September 30, 1997 and (ii) upward revisions in the estimates
of remaining oil and gas reserves at December 31, 1997. As a percentage of
oil and gas sales, this expense decreased to 6.0% for the nine months
ended September 30, 1998 from 7.4% for the nine months ended September 30,
1997.
The I-D Partnership recognized a non-cash charge against earnings of
$61,790 during the nine months ended September 30, 1997. Of this amount,
$12,290 was related to the decline in oil and gas prices used to determine
the recoverability of proved oil and gas reserves at March 31, 1997 and
$49,500 was related to the writing off of unproved properties. These
unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the I-D Partnership's Partnership Agreement which limit
the level of permissible drilling activity. No similar charge was
necessary during the nine months ended September 30, 1998.
37
<PAGE>
General and administrative expenses decreased $1,421 (2.0%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
increased to 8.5% for the nine months ended September 30, 1998 from 6.3%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 1998 totaling $13,753,175 or 191.16% of Limited Partners' capital
contributions.
I-E PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997.
Three Months Ended September 30,
--------------------------------
1998 1997
---------- ----------
Oil and gas sales $1,332,007 $1,293,478
Oil and gas production expenses $ 306,185 $ 420,586
Barrels produced 15,123 19,162
Mcf produced 623,229 489,327
Average price/Bbl $ 10.56 $ 16.83
Average price/Mcf $ 1.88 $ 1.98
As shown in the table above, total oil and gas sales increased $38,529
(3.0%) for the three months ended September 30, 1998 as compared to the
three months ended September 30, 1997. Of this increase, approximately
$266,000 was related to an increase in the volumes of gas sold, which
increase was partially offset by decreases of approximately $68,000
related to a decrease in the volumes of oil sold and $95,000 and $64,000,
respectively, related to decreases in the average prices of oil and gas
sold. Volumes of oil sold decreased 4,039 barrels while volumes of gas
sold increased 133,902 Mcf for the three months ended September 30, 1998
as compared to the three months ended September 30, 1997. The decrease in
volumes of oil sold resulted primarily from (i) a normal decline in
production on several significant wells and (ii) the sale of several wells
in 1997. The increase in volumes of gas sold resulted primarily from
positive prior period volume adjustments made by purchasers on three
significant wells during the three months ended September 30, 1998.
Average oil and gas prices decreased to $10.56 per barrel and $1.88 per
Mcf, respectively, for the three months ended September 30, 1998 from
$16.83 per barrel and $1.98 per Mcf, respectively, for the three months
ended September 30, 1997.
38
<PAGE>
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $114,401 (27.2%) for the three months ended
September 30, 1998 as compared to the three months ended September 30,
1997. This decrease resulted primarily from workover expenses incurred on
three significant wells during the three months ended September 30, 1997
in order to improve the recovery of reserves. As a percentage of oil and
gas sales, these expenses decreased to 23.0% for the three months ended
September 30, 1998 from 32.5% for the three months ended September 30,
1997. This percentage decrease was primarily due to the dollar decrease in
production expenses.
Depreciation, depletion, and amortization of oil and gas properties
increased $19,258 (10.1%) for the three months ended September 30, 1998 as
compared to the three months ended September 30, 1997. This increase
resulted primarily from the increase in volumes of gas sold during the
three months ended September 30, 1998 as compared to the three months
ended September 30, 1997. As a percentage of oil and gas sales, this
expense increased to 15.8% for the three months ended September 30, 1998
from 14.8% for the three months ended September 30, 1997.
General and administrative expenses increased $1,913 (1.5%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
remained relatively constant at 9.4% for the three months ended September
30, 1998 and 9.6% for the three months ended September 30, 1997.
NINE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
Nine Months Ended September 30,
-------------------------------
1998 1997
---------- ----------
Oil and gas sales $3,424,077 $4,504,924
Oil and gas production expenses $ 907,263 $1,232,217
Barrels produced 48,982 58,270
Mcf produced 1,480,138 1,516,524
Average price/Bbl $ 12.35 $ 19.38
Average price/Mcf $ 1.90 $ 2.23
As shown in the table above, total oil and gas sales decreased $1,080,847
(24.0%) for the nine months ended September 30, 1998 as compared to the
nine months ended September 30, 1997. Of this decrease, approximately
$180,000 and $81,000, respectively, were related to decreases in volumes
of oil and gas sold and approximately $344,000 and $476,000, respectively,
were related to decreases in the average prices of oil and gas sold.
Volumes of oil and gas sold decreased 9,288 barrels and
39
<PAGE>
36,386 Mcf, respectively, for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997. The decrease in
volumes of oil sold resulted primarily from (i) the sale of several wells
in 1997 and (ii) normal declines in production due to diminishing reserves
on several wells. The decrease in volumes of gas sold resulted primarily
from normal declines in production due to diminishing reserves on one
significant well. Average oil and gas prices decreased to $12.35 per
barrel and $1.90 per Mcf, respectively, for the nine months ended
September 30, 1998 from $19.38 per barrel and $2.23 per Mcf, respectively,
for the nine months ended September 30, 1997.
As discussed in Liquidity and Capital Resources above, the I-E Partnership
sold certain oil and gas properties during the nine months ended September
30, 1998 and recognized a $1,159,004 gain on such sales. Similar sales
during the nine months ended September 30, 1997 resulted in the I-E
Partnership recognizing similar gains totaling $62,609.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $324,954 (26.4%) for the nine months ended
September 30, 1998 as compared to the nine months ended September 30,
1997. This decrease resulted primarily from (i) a decrease in production
taxes associated with the decrease in oil and gas sales and (ii) workover
expenses incurred on several wells during the nine months ended September
30, 1997 in order to improve the recovery of reserves. As a percentage of
oil and gas sales, these expenses remained relatively constant at 26.5%
for the nine months ended September 30, 1998 and 27.4% for the nine months
ended September 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $67,607 (11.4%) for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997. This decrease
resulted primarily from (i) the decreases in volumes of oil and gas sold
during the nine months ended September 30, 1998 as compared to the nine
months ended September 30, 1997 and (ii) upward revisions in the estimates
of remaining gas reserves at December 31, 1997. As a percentage of oil and
gas sales, this expense increased to 15.3% for the nine months ended
September 30, 1998 from 13.1% for the nine months ended September 30,
1997. This percentage increase was primarily due to the decreases in the
average prices of oil and gas sold during the nine months ended September
30, 1998 as compared to the nine months ended September 30, 1997.
40
<PAGE>
The I-E Partnership recognized a non-cash charge against earnings of
$291,690 during the nine months ended September 30, 1997. Of this amount,
$59,728 was related to the decline in oil and gas prices used to determine
the recoverability of proved oil and gas reserves at March 31, 1997 and
$231,962 was related to the writing off of unproved properties. These
unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the I-E Partnership's Partnership Agreement which limit
the level of permissible drilling activity. No similar charge was
necessary during the nine months ended September 30, 1998.
General and administrative expenses decreased $7,811 (1.9%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
increased to 11.6% for the nine months ended September 30, 1998 from 9.0%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 1998 totaling $52,807,552 or 126.21% of Limited Partners' capital
contributions.
I-F PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997.
Three Months Ended September 30,
--------------------------------
1998 1997
-------- --------
Oil and gas sales $409,569 $451,008
Oil and gas production expenses $123,328 $201,769
Barrels produced 6,899 9,796
Mcf produced 176,166 138,079
Average price/Bbl $ 10.59 $ 16.92
Average price/Mcf $ 1.91 $ 2.07
As shown in the table above, total oil and gas sales decreased $41,439
(9.2%) for the three months ended September 30, 1998 as compared to the
three months ended September 30, 1997. Of this decrease, approximately
$49,000 was related to a decrease in the volumes of oil sold and
approximately $44,000 and $27,000, respectively, were related to decreases
in the average prices of oil and gas sold, which decreases were partially
offset by an increase of approximately $79,000 related to an increase in
the volumes of gas sold. Volumes of oil sold decreased 2,897
41
<PAGE>
barrels while volumes of gas sold increased 38,087 Mcf for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. The decrease in volumes of oil sold resulted primarily
from (i) the sale of several wells during 1997 and 1998, (ii) normal
declines in production due to diminishing reserves on several wells and
(iii) the shutting in of two significant wells for repairs and maintenance
during the three months ended September 30, 1998. The increase in volumes
of gas sold resulted primarily from positive prior period volume
adjustments made by purchasers on two significant wells during the three
months ended September 30, 1998. Average oil and gas prices decreased to
$10.59 per barrel and $1.91 per Mcf, respectively, for the three months
ended September 30, 1998 from $16.92 per barrel and $2.07 per Mcf,
respectively, for the three months ended September 30, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $78,441 (38.9%) for the three months ended
September 30, 1998 as compared to the three months ended September 30,
1997. This decrease resulted primarily from (i) workover expenses incurred
on two significant wells in 1997 in order to improve the recovery of
reserves and (ii the sale of one significant well in 1997. As a
percentage of oil and gas sales, these expenses decreased to 30.1%
for the three months ended September 30, 1998 from 44.7% for the three
months ended September 30, 1997. This percentage decrease was primarily
due to the dollar decrease in production expenses.
Depreciation, depletion, and amortization of oil and gas properties
increased $4,607 (7.5%) for the three months ended September 30, 1998 as
compared to the three months ended September 30, 1997. As a percentage of
oil and gas sales, this expense increased to 16.0% for the three months
ended September 30, 1998 from 13.5% for the three months ended September
30, 1997. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold during the three months ended
September 30, 1998 as compared to the three months ended September 30,
1997.
General and administrative expenses increased $570 (1.3%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
increased to 10.5% for the three months ended September 30, 1998 from 9.4%
for the three months ended September 30, 1997.
42
<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
Nine Months Ended September 30,
-------------------------------
1998 1997
---------- ----------
Oil and gas sales $1,096,504 $1,579,881
Oil and gas production expenses $ 383,824 $ 574,012
Barrels produced 23,093 29,318
Mcf produced 396,874 429,479
Average price/Bbl $ 12.50 $ 19.40
Average price/Mcf $ 2.04 $ 2.35
As shown in the table above, total oil and gas sales decreased $483,377
(30.6%) for the nine months ended September 30, 1998 as compared to the
nine months ended September 30, 1997. Of this decrease, approximately
$121,000 and $77,000, respectively, were related to decreases in the
volumes of oil and gas sold and approximately $159,000 and $126,000,
respectively, were related to decreases in the average prices of oil and
gas sold. Volumes of oil and gas sold decreased 6,225 barrels and 32,605
Mcf, respectively, for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997. The decrease in
volumes of oil sold resulted primarily from (i) the sale of several wells
in 1997 and 1998, (ii) normal declines in production due to diminishing
reserves on several wells and (iii) the shutting in of two significant
wells for repairs and maintenance during the nine months ended September
30, 1998. Average oil and gas prices decreased to $12.50 per barrel and
$2.04 per Mcf, respectively, for the nine months ended September 30, 1998
from $19.40 per barrel and $2.35 per Mcf, respectively, for the nine
months ended September 30, 1997.
As discussed in Liquidity and Capital Resources above, the I-F Partnership
sold certain oil and gas properties during the nine months ended September
30, 1998 and recognized a $335,669 gain on such sales. Similar sales
during the nine months ended September 30, 1997 resulted in the I-F
Partnership recognizing similar gains totaling $46,356.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $190,188 (33.1%) for the nine months ended
September 30, 1998 as compared to the nine months ended September 30,
1997. This decrease resulted primarily from (i) the decreases in volumes
of oil and gas sold during the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997, (ii) a decrease in
production taxes associated with the decrease in oil and gas sales, and
(iii) workover expenses incurred on several wells in 1997 in order to
improve the recovery of reserves. As a percentage of oil and gas sales,
43
<PAGE>
these expenses decreased to 35.0% for the nine months ended September 30,
1998 from 36.3% for the nine months ended September 30, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $26,147 (13.9%) for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997. This decrease
resulted primarily from decreases in volumes of oil and gas sold during
the nine months ended September 30, 1998 as compared to the nine months
ended September 30, 1997. As a percentage of oil and gas sales, this
expense increased to 14.7% for the nine months ended September 30, 1998
from 11.9% for the nine months ended September 30, 1997. This percentage
increase was primarily due to the decreases in the average prices of oil
and gas sold during the nine months ended September 30, 1998 as compared
to the nine months ended September 30, 1997.
The I-F Partnership recognized a non-cash charge against earnings of
$114,631 during the nine months ended September 30, 1997. Of this amount,
$20,908 was related to the decline in oil and gas prices used to determine
the recoverability of proved oil and gas reserves at March 31, 1997 and
$93,723 was related to the writing off of unproved properties. These
unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the I-F Partnership's Partnership Agreement which limit
the level of permissible drilling activity. No similar charge was
necessary during the nine months ended September 30, 1998.
General and administrative expenses decreased $2,813 (2.0%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. As a percentage of oil and gas sales, these expenses
increased to 12.5% for the nine months ended September 30, 1998 from 8.8%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 1998 totaling $17,747,664 or 123.93% of Limited Partners' capital
contributions.
44
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule containing summary financial
information extracted from the I-B Partnership's
financial statements as of September 30, 1998 and for
the nine months ended September 30, 1998, filed
herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the I-C Partnership's
financial statements as of September 30, 1998 and for
the nine months ended September 30, 1998, filed
herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the I-D Partnership's
financial statements as of September 30, 1998 and for
the nine months ended September 30, 1998, filed
herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the I-E Partnership's
financial statements as of September 30, 1998 and for
the nine months ended September 30, 1998, filed
herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the I-F Partnership's
financial statements as of September 30, 1998 and for
the nine months ended September 30, 1998, filed
herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
None.
45
<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, thereunto duly authorized.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: November 12, 1998 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: November 12, 1998 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
46
<PAGE>
INDEX TO EXHIBITS
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership I-B's
financial statements as of September 30, 1998 and for the nine
months ended September 30, 1998, filed herewith.
27.2 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership I-C's
financial statements as of September 30, 1998 and for the nine
months ended September 30, 1998, filed herewith.
27.3 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership I-D's
financial statements as of September 30, 1998 and for the nine
months ended September 30, 1998, filed herewith.
27.4 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership I-E's
financial statements as of September 30, 1998 and for the nine
months ended September 30, 1998, filed herewith.
27.5 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership I-F's
financial statements as of September 30, 1998 and for the nine
months ended September 30, 1998, filed herewith.
All other exhibits are omitted as inapplicable.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000780200
<NAME> GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-B
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 52,296
<SECURITIES> 0
<RECEIVABLES> 28,494
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 80,790
<PP&E> 6,509,871
<DEPRECIATION> 6,221,787
<TOTAL-ASSETS> 468,136
<CURRENT-LIABILITIES> 8,412
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 437,204
<TOTAL-LIABILITY-AND-EQUITY> 468,136
<SALES> 199,910
<TOTAL-REVENUES> 200,938
<CGS> 0
<TOTAL-COSTS> 145,329
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 55,609
<INCOME-TAX> 0
<INCOME-CONTINUING> 55,609
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 55,609
<EPS-PRIMARY> 4.29
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000791067
<NAME> GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 38,214
<SECURITIES> 0
<RECEIVABLES> 61,015
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 99,229
<PP&E> 3,639,686
<DEPRECIATION> 3,325,091
<TOTAL-ASSETS> 524,767
<CURRENT-LIABILITIES> 15,613
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 491,051
<TOTAL-LIABILITY-AND-EQUITY> 524,767
<SALES> 377,250
<TOTAL-REVENUES> 379,578
<CGS> 0
<TOTAL-COSTS> 262,846
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 116,732
<INCOME-TAX> 0
<INCOME-CONTINUING> 116,732
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 116,732
<EPS-PRIMARY> 12.41
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000799178
<NAME> GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 289,099
<SECURITIES> 0
<RECEIVABLES> 113,690
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