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 March 31, 1999
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 73-1231999
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
March 31, December 31,
1999 1998
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 12,265 $ 20,930
Accounts receivable:
Oil and gas sales 33,070 18,364
General Partner (Note 2) - 6,814
-------- --------
Total current assets $ 45,335 $ 46,108
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 263,563 275,445
DEFERRED CHARGE 74,248 74,248
-------- --------
$383,146 $395,801
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 20,387 $ 24,273
-------- --------
Total current liabilities $ 20,387 $ 24,273
ACCRUED LIABILITY $ 23,490 $ 23,490
PARTNERS' CAPITAL (DEFICIT):
General Partner ($107,325) ($107,999)
Limited Partners, issued and
outstanding, 11,958 units 446,594 456,037
-------- --------
Total Partners' capital $339,269 $348,038
-------- --------
$383,146 $395,801
======== ========
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 MARCH 31, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
REVENUES:
Oil and gas sales $71,382 $60,872
Interest income 58 522
------- -------
$71,440 $61,394
COSTS AND EXPENSES:
Lease operating $29,471 $15,821
Production tax 4,015 3,322
Depreciation, depletion, and
amortization of oil and gas
properties 11,626 10,412
General and administrative
(Note 2) 22,097 21,092
------- -------
$67,209 $50,647
------- -------
NET INCOME $ 4,231 $10,747
======= =======
GENERAL PARTNER - NET INCOME $ 674 $ 928
======= =======
LIMITED PARTNERS - NET INCOME $ 3,557 $ 9,819
======= =======
NET INCOME per unit $ .30 $ .82
======= =======
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 CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 4,231 $10,747
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 11,626 10,412
(Increase) decrease in accounts
receivable - oil and gas sales ( 14,706) 11,759
Decrease in accounts receivable -
General Partner 6,814 -
Increase (decrease) in accounts
payable ( 3,886) 1,304
------- -------
Net cash provided by operating
activities $ 4,079 $34,222
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of oil and gas
properties $ 256 $ -
------- -------
Net cash provided by investing
activities $ 256 $ -
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($13,000) ($74,917)
------- -------
Net cash used by financing activities ($13,000) ($74,917)
------- -------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 8,665) ($40,695)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 20,930 77,028
------- -------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $12,265 $36,333
======= =======
The accompanying condensed notes are an integral part of
these combined financial statements.
-4-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-C
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-C
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1999 1998
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 19,761 $ 33,065
Accounts receivable:
Oil and gas sales 50,715 51,790
General Partner (Note 2) - 18,767
-------- --------
Total current assets $ 70,476 $103,622
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 169,286 175,640
DEFERRED CHARGE 80,059 80,059
-------- --------
$319,821 $359,321
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 11,947 $ 13,520
-------- --------
Total current liabilities $ 11,947 $ 13,520
ACCRUED LIABILITY $ 12,927 $ 12,927
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 97,325) ($ 96,039)
Limited Partners, issued and
outstanding, 8,885 units 392,272 428,913
-------- --------
Total Partners' capital $294,947 $332,874
-------- --------
$319,821 $359,321
======== ========
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 STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(Unaudited)
1999 1998
-------- ----------
REVENUES:
Oil and gas sales $77,494 $186,396
Interest income 203 1,287
------- --------
$77,697 $187,683
COSTS AND EXPENSES:
Lease operating $38,983 $ 47,061
Production tax 4,604 10,337
Depreciation, depletion, and
amortization of oil and gas
properties 6,306 7,378
General and administrative
(Note 2) 31,382 30,612
------- --------
$81,275 $ 95,388
------- --------
NET INCOME (LOSS) ($ 3,578) $ 92,295
======= ========
GENERAL PARTNER - NET INCOME $ 63 $ 4,846
======= ========
LIMITED PARTNERS - NET INCOME
(LOSS) ($ 3,641) $ 87,449
======= ========
NET INCOME (LOSS) per unit ($ .41) $ 9.84
======= ========
UNITS OUTSTANDING 8,885 8,885
======= ========
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 CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(Unaudited)
1999 1998
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 3,578) $ 92,295
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 6,306 7,378
Decrease in accounts receivable -
oil and gas sales 1,075 12,681
Decrease in accounts receivable -
General Partner 18,767 -
Increase (decrease) in accounts
payable ( 1,573) 2,281
------- --------
Net cash provided by operating
activities $20,997 $114,635
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of oil and
gas properties $ 48 $ -
------- --------
Net cash provided by investing
activities $ 48 $ -
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($34,349) ($147,309)
------- --------
Net cash used by financing activities ($34,349) ($147,309)
------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($13,304) ($ 32,674)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 33,065 141,699
------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $19,761 $109,025
======= ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-7-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1999 1998
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $117,089 $167,361
Accounts receivable:
Oil and gas sales 98,359 134,477
-------- --------
Total current assets $215,448 $301,838
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 588,286 605,793
DEFERRED CHARGE 66,062 66,062
-------- --------
$869,796 $973,693
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 12,844 $ 9,270
Gas imbalance payable 43,521 43,521
-------- --------
Total current liabilities $ 56,365 $ 52,791
ACCRUED LIABILITY $ 14,456 $ 14,456
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 59,290) ($ 53,161)
Limited Partners, issued and
outstanding, 7,195 units 858,265 959,607
-------- --------
Total Partners' capital $798,975 $906,446
-------- --------
$869,796 $973,693
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-8-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(Unaudited)
1999 1998
--------- ----------
REVENUES:
Oil and gas sales $132,226 $293,660
Interest income 1,406 2,781
Gain on sale of oil and
gas properties - 147,050
-------- --------
$133,632 $443,491
COSTS AND EXPENSES:
Lease operating $ 43,811 $ 30,942
Production tax 9,673 17,938
Depreciation, depletion, and
amortization of oil and gas
properties 17,312 15,885
General and administrative
(Note 2) 26,518 25,883
-------- --------
$ 97,314 $ 90,648
-------- --------
NET INCOME $ 36,318 $352,843
======== ========
GENERAL PARTNER - NET INCOME $ 7,660 $ 54,733
======== ========
LIMITED PARTNERS - NET INCOME $ 28,658 $298,110
======== ========
NET INCOME per unit $ 3.98 $ 41.43
======== ========
UNITS OUTSTANDING 7,195 7,195
======== ========
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 STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(Unaudited)
1999 1998
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 36,318 $352,843
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 17,312 15,885
Gain on sale of oil and gas
properties - ( 147,050)
Decrease in accounts receivable -
oil and gas sales 36,118 52,826
Increase in accounts receivable -
General Partner - ( 155,421)
Increase (decrease) in accounts
payable 3,574 ( 18,287)
-------- --------
Net cash provided by operating
activities $ 93,322 $100,796
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 42) ($ 11,572)
Proceeds from sale of oil and
gas properties 237 158,901
-------- --------
Net cash provided by investing
activities $ 195 $147,329
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($143,789) ($276,934)
-------- --------
Net cash used by financing activities ($143,789) ($276,934)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 50,272) ($ 28,809)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 167,361 274,109
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $117,089 $245,300
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-10-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 162,377 $ 12,003
Accounts receivable:
Oil and gas sales 495,806 651,445
---------- ----------
Total current assets $ 658,183 $ 663,448
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 4,152,722 4,191,663
DEFERRED CHARGE 570,545 570,545
---------- ----------
$5,381,450 $5,425,656
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 75,329 $ 209,486
Gas imbalance payable 115,808 115,808
---------- ----------
Total current liabilities $ 191,137 $ 325,294
ACCRUED LIABILITY $ 151,490 $ 151,490
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 220,433) ($ 232,100)
Limited Partners, issued and
outstanding, 41,839 units 5,259,256 5,180,972
---------- ----------
Total Partners' capital $5,038,823 $4,948,872
---------- ----------
$5,381,450 $5,425,656
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-11-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(Unaudited)
1999 1998
--------- ----------
REVENUES:
Oil and gas sales $704,902 $1,065,375
Interest income 337 9,379
Gain on sale of oil and
gas properties - 659,596
-------- ----------
$705,239 $1,734,350
COSTS AND EXPENSES:
Lease operating $248,370 $ 214,854
Production tax 50,081 74,110
Depreciation, depletion, and
amortization of oil and gas
properties 137,543 153,008
General and administrative
(Note 2) 154,552 150,418
-------- ----------
$590,546 $ 592,390
-------- ----------
NET INCOME $114,693 $1,141,960
======== ==========
GENERAL PARTNER - NET INCOME $ 36,409 $ 191,308
======== ==========
LIMITED PARTNERS - NET INCOME $ 78,284 $ 950,652
======== ==========
NET INCOME per unit $ 1.87 $ 22.72
======== ==========
UNITS OUTSTANDING 41,839 41,839
======== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-12-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(Unaudited)
1999 1998
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $114,693 $1,141,960
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 137,543 153,008
Gain on sale of oil and gas
properties - ( 659,596)
Decrease in accounts receivable -
oil and gas sales 155,639 311,306
Increase in accounts receivable -
General Partner - ( 750,910)
Decrease in accounts receivable -
other - 69,917
Decrease in accounts payable ( 134,157) ( 169,784)
-------- ----------
Net cash provided by operating
activities $273,718 $ 95,901
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($101,190) ($ 18,386)
Proceeds from sale of oil and
gas properties 2,588 763,925
-------- ----------
Net cash provided (used) by
investing activities ($ 98,602) $ 745,539
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 24,742) ($ 838,489)
-------- ----------
Net cash used by financing activities ($ 24,742) ($ 838,489)
-------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $150,374 $ 2,951
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 12,003 827,775
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $162,377 $ 830,726
======== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-13-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1999 1998
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 35,963 $ 5,457
Accounts receivable:
Oil and gas sales 154,445 195,444
---------- ----------
Total current assets $ 190,408 $ 200,901
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,341,006 1,311,368
DEFERRED CHARGE 346,704 346,704
---------- ----------
$1,878,118 $1,858,973
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 411,229 $ 406,740
Gas imbalance payable 38,738 38,738
---------- ----------
Total current liabilities $ 449,967 $ 445,478
ACCRUED LIABILITY $ 109,153 $ 109,153
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 86,799) ($ 94,547)
Limited Partners, issued and
outstanding, 14,321 units 1,405,797 1,398,889
---------- ----------
Total Partners' capital $1,318,998 $1,304,342
---------- ----------
$1,878,118 $1,858,973
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-14-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
REVENUES:
Oil and gas sales $214,456 $366,302
Interest income 10 3,174
Gain on sale of oil and
gas properties - 287,759
-------- --------
$214,466 $657,235
COSTS AND EXPENSES:
Lease operating $ 93,199 $ 97,236
Production tax 14,010 23,674
Depreciation, depletion, and
amortization of oil and gas
properties 39,653 48,379
General and administrative
(Note 2) 52,948 51,473
-------- --------
$199,810 $220,762
-------- --------
NET INCOME $ 14,656 $436,473
======== ========
GENERAL PARTNER - NET INCOME $ 7,748 $ 71,768
======== ========
LIMITED PARTNERS - NET INCOME $ 6,908 $364,705
======== ========
NET INCOME per unit $ .48 $ 25.47
======== ========
UNITS OUTSTANDING 14,321 14,321
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-15-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(Unaudited)
1999 1998
-------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $14,656 $436,473
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 39,653 48,379
Gain on sale of oil and gas
properties - ( 287,759)
Decrease in accounts receivable -
oil and gas sales 40,999 77,952
Increase in accounts receivable -
General Partner - ( 339,222)
Decrease in accounts receivable -
other - 48,942
Increase (decrease) in accounts
payable 4,489 ( 15,650)
------- --------
Net cash provided (used) by
operating activities $99,797 ($ 30,885)
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($70,790) ($ 17,334)
Proceeds from sale of oil and
gas properties 1,499 344,489
------- --------
Net cash provided (used) by
investing activities ($69,291) $327,155
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions $ - ($255,617)
------- --------
Net cash used by financing activities $ - ($255,617)
------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $30,506 $ 40,653
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 5,457 251,220
------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $35,963 $291,873
======= ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-16-
<PAGE>
GEODYNE ENERGY INCOME PROGRAM I LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
MARCH 31, 1999
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of March 31, 1999, combined statements of
operations for the three months ended March 31, 1999 and 1998, and
combined statements of cash flows for the three months ended March 31,
1999 and 1998 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 March 31, 1999, the combined results of operations for the
three months ended March 31, 1999 and 1998, and the combined cash flows
for the three months ended March 31, 1999 and 1998.
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, 1998. The
results of operations for the period ended March 31, 1999 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.
-17-
<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 proceeds are credited to oil and gas
properties.
-18-
<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.
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 March 31, 1999 the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
I-B $10,784 $ 11,313
I-C 8,000 23,382
I-D 6,532 19,986
I-E 38,332 116,220
I-F 13,168 39,780
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.
The accounts receivable-general partner at December 31, 1998 for the I-B
and I-C Partnerships represent refunds due for indirect general and
administrative expenses as a result of expense limitations imposed by the
Partnership Agreements. This receivable was collected during the first
quarter of 1999.
-19-
<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.
-20-
<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 March 31, 1999 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
During the three months ended March 31, 1999, the third party operator of
the State Lease 8191 No. 4 well in St. Bernard Parish, Louisiana charged
the I-E and I-F Partnerships for capital expenditures of $101,010 and
$70,707, respectively. These costs were allegedly incurred by the operator
in drilling this well for the purpose of relieving pressure in another
well which suffered a blowout during a workover attempt. This new well was
completed as a producing gas well in 1998. For financial reporting
purposes, these charges have been recorded as capital costs.
-21-
<PAGE>
Pursuant to the terms of the Partnership Agreements, the Partnerships will
terminate on December 31, 1999. 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 currently intends to extend the term of the
I-D, I-E, and I-F Partnerships for the first two year extension period.
With respect to the I-B and I-C Partnerships, it is the General Partner's
current intent to let these Partnerships terminate on December 31, 1999
pursuant to the terms of their Partnership Agreements.
The General Partner will, however, over the next several months evaluate
all of the Partnerships' operations and then make a final determination as
to whether to extend any of their terms. It is anticipated that a final
decision will be made during the fourth quarter of 1999.
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. Due to the volatility of oil and gas prices,
forecasting future prices is subject to great uncertainty and inaccuracy.
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 were recently at or near their
lowest level in the past decade due primarily to the global surplus of
crude oil. However, as of the date of this Quarterly Report oil prices
have rebounded primarily due to a decrease in the global oil surplus as a
result of production curtailments by several major oil producing nations.
Management is unable to predict whether future oil and gas prices will (i)
stabilize, (ii) increase, or (iii) decrease.
-22-
<PAGE>
I-B PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1999 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 1998.
Three Months Ended March 31,
----------------------------
1999 1998
------- -------
Oil and gas sales $71,382 $60,872
Oil and gas production expenses $33,486 $19,143
Barrels produced 634 471
Mcf produced 41,210 24,338
Average price/Bbl $ 10.01 $ 14.31
Average price/Mcf $ 1.58 $ 2.22
As shown in the table above, total oil and gas sales increased $10,510
(17.3%) for the three months ended March 31, 1999 as compared to the three
months ended March 31, 1998. Of this increase, approximately $2,000 and
$38,000, respectively, were related to increases in volumes of oil and gas
sold, which increases were partially offset by decreases of approximately
$3,000 and $27,000, respectively, related to decreases in the average
prices of oil and gas sold. Volumes of oil and gas sold increased 163
barrels and 16,872 Mcf, respectively, for the three months ended March 31,
1999 as compared to the three months ended March 31, 1998. The increase in
volumes of oil sold resulted primarily from (i) the successful workover of
one significant well in 1998 in order to improve the recovery of reserves
and (ii) the successful drilling and completion in late 1998 of a well in
which the I-B Partnership has an overriding royalty interest. The increase
in volumes of gas sold resulted primarily from (i) the successful workover
of the well in 1998 in order to improve the recovery of reserves, (ii) the
I-B Partnership receiving an increased percentage of sales during the
three months ended March 31, 1999 on one significant well due to certain
other working interest owners electing not to participate in a portion of
1999 sales, and (iii) new production from a well which was drilled and
completed in late 1998. Average oil and gas prices decreased to $10.01 per
barrel and $1.58 per Mcf, respectively, for the three months ended March
31, 1999 from $14.31 per barrel and $2.22 per Mcf, respectively, for the
three months ended March 31, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $14,343 (74.9%) for the three months ended
March 31, 1999 as compared to the three months ended March 31, 1998. This
increase resulted primarily from workover expenses incurred on one
significant well during the three months ended March 31, 1999 in order to
improve the recovery of reserves. As a percentage of oil and
-23-
<PAGE>
gas sales, these expenses increased to 46.9% for the three months ended
March 31, 1999 from 31.4% for the three months ended March 31, 1998. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $1,214 (11.7%) for the three months ended March 31, 1999 as
compared to the three months ended March 31, 1998. This increase resulted
primarily from the increases in volumes of oil and gas sold and downward
revisions in the estimates of remaining oil reserves at December 31, 1998.
These increases were partially offset by upward revisions in the estimates
of remaining gas reserves at December 31, 1998. As a percentage of oil and
gas sales, this expense decreased to 16.3% for the three months ended
March 31, 1999 from 17.1% for the three months ended March 31, 1998.
General and administrative expenses increased $1,005 (4.8%) for the three
months ended March 31, 1999 as compared to the three months ended March
31, 1998. As a percentage of oil and gas sales, these expenses decreased
to 31.0% for the three months ended March 31, 1999 from 34.6% for the
three months ended March 31, 1998. This percentage decrease was primarily
due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
1999 totaling $6,740,527 or 56.37% of Limited Partners' capital
contributions.
I-C PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1999 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 1998.
Three Months Ended March 31,
----------------------------
1999 1998
------- --------
Oil and gas sales $77,494 $186,396
Oil and gas production expenses $43,587 $ 57,398
Barrels produced 3,263 4,239
Mcf produced 26,566 40,637
Average price/Bbl $ 10.33 $ 13.20
Average price/Mcf $ 1.65 $ 3.21
As shown in the table above, total oil and gas sales decreased $108,902
(58.4%) for the three months ended March 31, 1999 as compared to the three
months ended March 31, 1998. Of this decrease, approximately $13,000 and
$45,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $9,000 and $41,000, respectively, were related to
decreases in the average
-24-
<PAGE>
prices of oil and gas sold. Volumes of oil and gas sold decreased 976
barrels and 14,071 Mcf, respectively, for the three months ended March 31,
1999 as compared to the three months ended March 31, 1998. The decreases
in volumes of oil and gas sold resulted primarily from production
difficulties on one significant well and normal declines in production.
Average oil and gas prices decreased to $10.33 per barrel and $1.65 per
Mcf, respectively, for the three months ended March 31, 1999 from $13.20
per barrel and $3.21 per Mcf, respectively, for the three months ended
March 31, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $13,811 (24.1%) for the three months ended
March 31, 1999 as compared to the three months ended March 31, 1998. This
decrease resulted primarily from (i) decreases in production taxes
associated with the decrease in oil and gas sales, (ii) repair and
maintenance expenses incurred on two significant wells during the three
months ended March 31, 1998, and (iii) a refund of prior period ad valorem
taxes made by the operator on one significant well during the three months
ended March 31, 1999. As a percentage of oil and gas sales, these expenses
increased to 56.2% for the three months ended March 31, 1999 from 30.8%
for the three months ended March 31, 1998. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $1,072 (14.5%) for the three months ended March 31, 1999 as
compared to the three months ended March 31, 1998. This decrease resulted
primarily from the decreases in volumes of oil and gas sold, which
decrease was partially offset by downward revisions in the estimates of
remaining oil and gas reserves at December 31, 1998. As a percentage of
oil and gas sales, this expense increased to 8.1% for the three months
ended March 31, 1999 from 4.0% for the three months ended March 31, 1998.
This percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
General and administrative expenses increased $770 (2.5%) for the three
months ended March 31, 1999 as compared to the three months ended March
31, 1998. As a percentage of oil and gas sales, these expenses increased
to 40.5% for the three months ended March 31, 1999 from 16.4% for the
three months ended March 31, 1998. This percentage increase was primarily
due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
1999 totaling $8,244,300 or 92.79% of Limited Partners' capital
contributions.
-25-
<PAGE>
I-D PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1999 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 1998.
Three Months Ended March 31,
----------------------------
1999 1998
-------- --------
Oil and gas sales $132,226 $293,660
Oil and gas production expenses $ 53,484 $ 48,880
Barrels produced 2,338 3,420
Mcf produced 79,547 110,042
Average price/Bbl $ 10.87 $ 14.33
Average price/Mcf $ 1.34 $ 2.22
As shown in the table above, total oil and gas sales decreased $161,434
(55.0%) for the three months ended March 31, 1999 as compared to the three
months ended March 31, 1998. Of this decrease, approximately $16,000 and
$68,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $70,000 was related to a decrease in the average
price of gas sold. Volumes of oil and gas sold decreased 1,082 barrels and
30,495 Mcf, respectively, for the three months ended March 31, 1999 as
compared to the three months ended March 31, 1998. The decrease in volumes
of oil sold resulted primarily from production difficulties on one
significant well. The decrease in volumes of gas sold resulted primarily
from (i) production difficulties on one significant well, (ii) the sale of
several wells during 1998, and (iii) the I-D Partnership receiving a
reduced percentage of sales on one significant well during the three
months ended March 31, 1999 due to its overproduced gas balancing position
in that well. Average oil and gas prices decreased to $10.87 per barrel
and $1.34 per Mcf, respectively, for the three months ended March 31, 1999
from $14.33 per barrel and $2.22 per Mcf, respectively, for the three
months ended March 31, 1998.
The I-D Partnership sold certain oil and gas properties during the three
months ended March 31, 1998 and recognized a $147,050 gain on such sales.
No such gains were recognized on sales of oil and gas properties during
the three months ended March 31, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $4,604 (9.4%) for the three months ended March
31, 1999 as compared to the three months ended March 31, 1998. This
increase resulted primarily from (i) ad valorem taxes being paid on
several wells during the three months ended March 31, 1999, (ii) workover
expenses incurred on one significant well during
-26-
<PAGE>
the three months ended March 31, 1999 in order to improve the recovery of
reserves, and (iii) a general increase in repair and maintenance expenses
incurred on several wells. These increases were partially offset by
decreases in production taxes associated with the decrease in oil and gas
sales. As a percentage of oil and gas sales, these expenses increased to
40.4% for the three months ended March 31, 1999 from 16.6% for the three
months ended March 31, 1998. This percentage increase was primarily due to
the decreases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $1,427 (9.0%) for the three months ended March 31, 1999 as
compared to the three months ended March 31, 1998. As a percentage of oil
and gas sales, this expense increased to 13.1% for the three months ended
March 31, 1999 from 5.4% for the three months ended March 31, 1998. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
General and administrative expenses increased $635 (2.5%) for the three
months ended March 31, 1999 as compared to the three months ended March
31, 1998. As a percentage of oil and gas sales, these expenses increased
to 20.1% for the three months ended March 31, 1999 from 8.8% for the three
months ended March 31, 1998. This percentage increase was primarily due to
the decrease in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
1999 totaling $14,138,175 or 196.51% of Limited Partners' capital
contributions.
I-E PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1999 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 1998.
Three Months Ended March 31,
----------------------------
1999 1998
-------- ----------
Oil and gas sales $704,902 $1,065,375
Oil and gas production expenses $298,451 $ 288,964
Barrels produced 16,232 15,983
Mcf produced 368,855 422,771
Average price/Bbl $ 10.50 $ 14.95
Average price/Mcf $ 1.45 $ 1.95
As shown in the table above, total oil and gas sales decreased $360,473
(33.8%) for the three months ended March 31, 1999 as compared to the three
months ended March 31, 1998. Of this decrease, approximately $105,000 was
related to a decrease in volumes of gas sold and approximately $72,000 and
$187,000, respectively, were related to
-27-
<PAGE>
decreases in the average prices of oil and gas sold. Volumes of oil sold
increased 249 barrels, while volumes of gas sold decreased 53,916 Mcf for
the three months ended March 31, 1999 as compared to the three months
ended March 31, 1998. The decrease in volumes of gas sold resulted
primarily from (i) the sale of several wells during 1998 and (ii) the I-E
Partnership receiving a reduced percentage of sales on one significant
well during the three months ended March 31, 1999 due to its overproduced
gas balancing position in that well. Average oil and gas prices decreased
to $10.50 per barrel and $1.45 per Mcf, respectively, for the three months
ended March 31, 1999 from $14.95 per barrel and $1.95 per Mcf,
respectively, for the three months ended March 31, 1998.
The I-E Partnership sold certain oil and gas properties during the three
months ended March 31, 1998 and recognized a $659,596 gain on such sales.
No such gains were recognized on sales of oil and gas properties during
the three months ended March 31, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $9,487 (3.3%) for the three months ended March
31, 1999 as compared to the three months ended March 31, 1998. This
increase resulted primarily from (i) ad valorem taxes being paid on
several wells during the three months ended March 31, 1999, (ii) workover
expenses incurred on one significant well during the three months ended
March 31, 1999 in order to improve the recovery of reserves, and (iii) a
general increase in repair and maintenance expenses incurred on several
wells. These increases were partially offset by decreases in production
taxes associated with the decrease in oil and gas sales. As a percentage
of oil and gas sales, these expenses increased to 42.3% for the three
months ended March 31, 1999 from 27.1% for the three months ended March
31, 1998. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $15,465 (10.1%) for the three months ended March 31, 1999 as
compared to the three months ended March 31, 1998. This decrease resulted
primarily from the decrease in volumes of gas sold. As a percentage of oil
and gas sales, this expense increased to 19.5% for the three months ended
March 31, 1999 from 14.4% for the three months ended March 31, 1998. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
General and administrative expenses increased $4,134 (2.7%) for the three
months ended March 31, 1999 as compared to the three months ended March
31, 1998. As a percentage of oil and gas sales, these expenses increased
to 21.9% for the
-28-
<PAGE>
three months ended March 31, 1999 from 14.1% for the three months ended
March 31, 1998. This percentage increase was primarily due to the decrease
in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
1999 totaling $53,668,552 or 128.27% of Limited Partners' capital
contributions.
I-F PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1999 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 1998.
Three Months Ended March 31,
----------------------------
1999 1998
-------- --------
Oil and gas sales $214,456 $366,302
Oil and gas production expenses $107,209 $120,910
Barrels produced 7,780 7,867
Mcf produced 81,922 113,169
Average price/Bbl $ 10.57 $ 14.99
Average price/Mcf $ 1.61 $ 2.19
As shown in the table above, total oil and gas sales decreased $151,846
(41.5%) for the three months ended March 31, 1999 as compared to the three
months ended March 31, 1998. Of this decrease, approximately $69,000 was
related to a decrease in volumes of gas sold and approximately $34,000 and
$48,000, respectively, were related to decreases in the average prices of
oil and gas sold. Volumes of oil and gas sold decreased 87 barrels and
31,247 Mcf, respectively, for the three months ended March 31, 1999 as
compared to the three months ended March 31, 1998. The decrease in volumes
of gas sold resulted primarily from (i) the sale of several wells during
1998, (ii) the I-F Partnership receiving a reduced percentage of sales on
two significant wells during the three months ended March 31, 1999 due to
its overproduced gas balancing positions in those wells, and (iii) normal
declines in production. Average oil and gas prices decreased to $10.57 per
barrel and $1.61 per Mcf, respectively, for the three months ended March
31, 1999 from $14.99 per barrel and $2.19 per Mcf, respectively, for the
three months ended March 31, 1998.
The I-F Partnership sold certain oil and gas properties during the three
months ended March 31, 1998 and recognized a $287,759 gain on such sales.
No such gains were recognized on sales of oil and gas properties during
the three months ended March 31, 1999.
-29-
<PAGE>
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $13,701 (11.3%) for the three months ended
March 31, 1999 as compared to the three months ended March 31, 1998. This
decrease resulted primarily from (i) decreases in production taxes
associated with the decrease in oil and gas sales and (ii) the sale of
several wells during 1998. As a percentage of oil and gas sales, these
expenses increased to 50.0% for the three months ended March 31, 1999 from
33.0% for the three months ended March 31, 1998. This percentage increase
was primarily due to the decreases in the average prices of oil and gas
sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $8,726 (18.0%) for the three months ended March 31, 1999 as
compared to the three months ended March 31, 1998. This decrease resulted
primarily from the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense increased to 18.5% for the
three months ended March 31, 1999 from 13.2% for the three months ended
March 31, 1998. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold.
General and administrative expenses increased $1,475 (2.9%) for the three
months ended March 31, 1999 as compared to the three months ended March
31, 1998. As a percentage of oil and gas sales, these expenses increased
to 24.7% for the three months ended March 31, 1999 from 14.1% for the
three months ended March 31, 1998. This percentage increase was primarily
due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
1999 totaling $17,986,664 or 125.60% of Limited Partners' capital
contributions.
YEAR 2000 COMPUTER ISSUES
- -------------------------
IN GENERAL
The Year 2000 Issue ("Y2K") refers to the inability of computer and other
information technology systems to properly process date and time
information, stemming from the earlier programming practice of using two
digits rather than four to represent the year in a date. For example,
computer programs and imbedded chips that are date sensitive may recognize
a date using (00) as the year 1900 rather than the year 2000. The
consequence of Y2K is that computer and imbedded processing systems may be
at risk of malfunctioning, particularly during the transition from 1999 to
2000.
-30-
<PAGE>
The effects of Y2K are exacerbated by the interdependence of computer and
telecommunication systems throughout the world. This interdependence also
exists among the Partnerships, Samson, and their vendors, customers, and
business partners, as well as with regulators. The potential risks
associated with Y2K for an oil and gas production company fall into three
general areas: (i) financial, leasehold and administrative computer
systems, (ii) imbedded systems in field process control units, and (iii)
third party exposures. As discussed below, General Partner does not
believe that these risks will be material to the Partnerships' operations.
The Partnerships' business is producing oil and gas. The day-to-day
production of the Partnerships' oil and gas is not dependent on computers
or equipment with imbedded chips. As further discussed below, management
anticipates that the Partnerships' daily business activities will not be
materially affected by Y2K.
The Partnerships rely on Samson to provide all of their operational and
administrative services on either a direct or indirect basis. Samson is
addressing each of the three Y2K areas discussed above through a readiness
process that seeks to:
1. increase the awareness of the issue among key employees;
2. identify areas of potential risk;
3. assess the relative impact of these risks and Samson's ability to
manage them; and
4. remediate these risks on a priority basis wherever possible.
Samson Investment Company's Chief Financial Officer is responsible for
communicating to its Board of Directors Y2K actions and for the ultimate
implementation of its Y2K plan. He has delegated to Samson Investment
Company's Senior Vice President-Technology and Administrative Services
principal responsibility for ensuring Y2K compliance within Samson.
Samson has been planning for the impact of Y2K on its information
technology systems since 1993. As of May 1, 1999, Samson is in the final
stages of implementation of a Y2K plan, as summarized below:
-31-
<PAGE>
FINANCIAL AND ADMINISTRATIVE SYSTEMS
1. Awareness. Samson has alerted its officers, managers and supervisors of
Y2K issues and asked them to have their employees participate in the
identification of potential Y2K risks which might otherwise go unnoticed
by higher level employees and officers. As a result, awareness of the
issue is considered high.
2. Risk Identification. Samson's most significant financial and
administrative systems exposure is the Y2K status of the accounting and
land administration system used to collect and manage data for internal
management decision making and for external revenue and accounts payable
purposes. Other concerns include network hardware and software, desktop
computing hardware and software, telecommunications, and office space
readiness.
3. Risk Assessment. The failure to identify and correct a material Y2K
problem could result in inaccurate or untimely financial information for
management decision-making or cash flow and payment purposes, including
maintaining oil and gas leases.
4. Remediation. Since 1993, Samson has been upgrading its accounting and
land administration software. Substantially all of the Y2K upgrades have
been completed, with the remainder scheduled to be completed during the
2nd quarter of 1999. In addition, in 1997 and 1998 Samson replaced or
applied software patches to substantially all of its network and desktop
software applications and believes them to be generally Y2K compliant.
Additional patches or software upgrades will be applied no later than June
30, 1999 to complete this process. The costs of all such risk assessments
and remediation are not expected to be material to the Partnerships.
5. Contingency Planning. Notwithstanding the foregoing, should there be
significant unanticipated disruptions in Samson's financial and
administrative systems, all of the accounting processes that are currently
automated will need to be performed manually. Samson will consider in the
second half of 1999 its options with respect to contingency arrangements
for temporary staffing to accommodate such situations.
-32-
<PAGE>
IMBEDDED SYSTEMS
1. Awareness. Samson's Y2K program has involved all levels of field
personnel from production foremen and higher. Employees at all levels of
the organization have been asked to participate in the identification of
potential Y2K risks, which might otherwise go unnoticed by higher level
employees and officers of Samson, and as a result, awareness of the issue
is considered high.
2. Risk Identification. Samson has inventoried all possible exposures to
imbedded chips and systems. Such exposures can be classified as either (i)
oil and gas production and processing equipment or (ii) office machines
such as faxes, copiers, phones, etc.
With respect to oil and gas production and processing equipment, neither
Samson nor the Partnerships operate offshore wells, significant processing
plants, or wells with older electronic monitoring systems. As a result,
Samson's inventory identified less than 10 applications using imbedded
chips. All of these are in the process of being tested by the respective
vendors and are expected to be Y2K compliant or replaced no later than
June 30, 1999. Oil and gas production related to such equipment is very
minor with respect to the entire Samson group, and, in fact, the
Partnerships' production may not use such equipment at all.
Office machines are currently being tested by Samson and vendors. It is
expected that such machines will be made compliant or replaced no later
than June 30, 1999.
3. Risk Assessment and Remediation. The failure to identify and correct a
material Y2K problem in an imbedded system could result in outcomes
ranging from errors in data reporting to curtailments or shutdowns in
production. As noted above, Samson has identified less than 10 imbedded
system applications that may have a Y2K problem. None of these
applications are believed to be material to Samson or the Partnerships.
Once identified, assessed and prioritized, Samson intends to test and
upgrade imbedded components and systems in field process control units
deemed to pose the greatest risk of significant non-compliance and capable
of testing. Samson believes that sufficient manual processes are available
to minimize any such field level risk and that there will be no material
impact on the Partnerships with respect to these applications.
-33-
<PAGE>
4. Contingency Planning. Should material production disruptions occur as a
result of Y2K failures in field operations, Samson will utilize its
existing field personnel in an attempt to avoid any material impact on
operating cash flow. Samson is not able to quantify any potential exposure
in the event of systems failure or inadequate manual alternatives.
THIRD PARTY EXPOSURES
1. Awareness. Samson has advised management to consider Y2K implications
with its outside vendors, customers, and business partners. Management has
been asked to participate in the identification of potential third party
Y2K risks and, as a result, awareness of the issue is considered high.
2. Risk Identification. Samson's most significant third party Y2K exposure
is its dependence on third parties for the receipt of revenues from oil
and gas sales. However, virtually all of these purchasers are very large
and sophisticated companies. Other Y2K concerns include the availability
of electric power to Samson's field operations, the integrity of
telecommunication systems, and the readiness of commercial banks to
execute electronic fund transfers.
3. Risk Assessment. Because of the high awareness of the Y2K problem in
the U.S., Samson has not undertaken and does not plan to undertake a
formal company wide plan to make inquiries of third parties on the subject
of Y2K readiness. If it did so, Samson has no ability to require responses
to such inquiries or to independently verify their accuracy. Samson has,
however, received oral assurances from its significant oil and gas
purchasers of Y2K compliance. If significant disruptions from major
purchasers were to occur, however, there could be a material and adverse
impact on the Partnerships' results of operations, liquidity, and
financial conditions.
It is important to note that third party oil and gas purchasers have
significant incentives to avoid disruptions arising from a Y2K failure.
For example, most of these parties are under contractual obligations to
purchase oil and gas or disperse revenues to Samson. The failure to do so
will result in contractual and statutory penalties. Therefore, Samson
believes that it is unlikely that there will be material third party
non-compliance with purchase and remittance obligations as a result of Y2K
issues.
-34-
<PAGE>
4. Remediation. Where Samson perceives significant risk of Y2K
non-compliance that may have a material impact on it, and where the
relationship between Samson and a vendor, customer, or business partner
permits, joint testing may be undertaken during 1999 to further identify
these risks.
5. Contingency Planning. In the unlikely event that material production
disruptions occur as a result of Y2K failures of third parties, the
Partnerships' operating cash flow could be impacted. This contingency will
be factored into deliberations on the level of quarterly cash
distributions paid out during any such period of cash flow disruption.
-35-
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
-36-
<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 March 31, 1999 and for the
three months ended March 31, 1999, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the I-C Partnership's
financial statements as of March 31, 1999 and for the
three months ended March 31, 1999, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the I-D Partnership's
financial statements as of March 31, 1999 and for the
three months ended March 31, 1999, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the I-E Partnership's
financial statements as of March 31, 1999 and for the
three months ended March 31, 1999, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the I-F Partnership's
financial statements as of March 31, 1999 and for the
three months ended March 31, 1999, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
Current Report on Form 8-K filed during the first quarter of 1999:
Date of Event: January 29, 1999
Date filed with the SEC: January 29, 1999
Items Included: Item 5 - Other Events
Item 7 - Exhibits
-37-
<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: May 13, 1999 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: May 13, 1999 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
-38-
<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 March 31, 1999 and for the three months
ended March 31, 1999, 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 March 31, 1999 and for the three months
ended March 31, 1999, 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 March 31, 1999 and for the three months
ended March 31, 1999, 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 March 31, 1999 and for the three months
ended March 31, 1999, 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 March 31, 1999 and for the three months
ended March 31, 1999, filed herewith.
All other exhibits are omitted as inapplicable.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000780200
<NAME> GEODYNE ENERGY INCOME LTD PARTNERSHIP I-B
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 12,265
<SECURITIES> 0
<RECEIVABLES> 33,070
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 45,335
<PP&E> 6,509,872
<DEPRECIATION> 6,246,309
<TOTAL-ASSETS> 383,146
<CURRENT-LIABILITIES> 20,387
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 339,269
<TOTAL-LIABILITY-AND-EQUITY> 383,146
<SALES> 71,382
<TOTAL-REVENUES> 71,440
<CGS> 0
<TOTAL-COSTS> 67,209
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 4,231
<INCOME-TAX> 0
<INCOME-CONTINUING> 4,231
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,231
<EPS-PRIMARY> 0.30
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000791067
<NAME> GEODYNE ENERGY INCOME LTD PARTNERSHIP I-C
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 19,761
<SECURITIES> 0
<RECEIVABLES> 50,715
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 70,476
<PP&E> 3,639,686
<DEPRECIATION> 3,470,400
<TOTAL-ASSETS> 319,821
<CURRENT-LIABILITIES> 11,947
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 294,947
<TOTAL-LIABILITY-AND-EQUITY> 319,821
<SALES> 77,494
<TOTAL-REVENUES> 77,697
<CGS> 0
<TOTAL-COSTS> 81,275
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (3,578)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,578)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,578)
<EPS-PRIMARY> (0.41)
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000799178
<NAME> GEODYNE ENERGY INCOME LTD PARTNERSHIP I-D
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 117,089
<SECURITIES> 0
<RECEIVABLES> 98,359
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 215,448
<PP&E> 4,604,531
<DEPRECIATION> 4,016,245
<TOTAL-ASSETS> 869,796
<CURRENT-LIABILITIES> 56,365
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 798,975
<TOTAL-LIABILITY-AND-EQUITY> 869,796
<SALES> 132,226
<TOTAL-REVENUES> 133,632
<CGS> 0
<TOTAL-COSTS> 97,314
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 36,318
<INCOME-TAX> 0
<INCOME-CONTINUING> 36,318
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 36,318
<EPS-PRIMARY> 3.98
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806613
<NAME> GEODYNE ENERGY INCOME LTD PARTNERSHIP I-E
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 162,377
<SECURITIES> 0
<RECEIVABLES> 495,806
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 658,183
<PP&E> 26,754,267
<DEPRECIATION> 22,601,545
<TOTAL-ASSETS> 5,381,450
<CURRENT-LIABILITIES> 191,137
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 5,038,823
<TOTAL-LIABILITY-AND-EQUITY> 5,381,450
<SALES> 704,902
<TOTAL-REVENUES> 705,239
<CGS> 0
<TOTAL-COSTS> 590,546
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 114,693
<INCOME-TAX> 0
<INCOME-CONTINUING> 114,693
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 114,693
<EPS-PRIMARY> 1.87
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000811031
<NAME> GEODYNE ENERGY INCOME LTD PARTNERSHIP I-F
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 35,963
<SECURITIES> 0
<RECEIVABLES> 154,445
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 190,408
<PP&E> 8,091,278
<DEPRECIATION> 6,750,272
<TOTAL-ASSETS> 1,878,118
<CURRENT-LIABILITIES> 449,967
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,318,998
<TOTAL-LIABILITY-AND-EQUITY> 1,878,118
<SALES> 214,456
<TOTAL-REVENUES> 214,466
<CGS> 0
<TOTAL-COSTS> 199,810
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 14,656
<INCOME-TAX> 0
<INCOME-CONTINUING> 14,656
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 14,656
<EPS-PRIMARY> 0.48
<EPS-DILUTED> 0
</TABLE>
