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, 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
September 30, December 31,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 66,237 $ 20,930
Accounts receivable:
Oil and gas sales 81,868 18,364
General Partner (Note 2) - 6,814
-------- --------
Total current assets $148,105 $ 46,108
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 262,336 275,445
DEFERRED CHARGE 74,248 74,248
-------- --------
$484,689 $395,801
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 4,176 $ 24,273
-------- --------
Total current liabilities $ 4,176 $ 24,273
ACCRUED LIABILITY $ 23,490 $ 23,490
PARTNERS' CAPITAL (DEFICIT):
General Partner ($102,248) ($107,999)
Limited Partners, issued and
outstanding, 11,958 units 559,271 456,037
-------- --------
Total Partners' capital $457,023 $348,038
-------- --------
$484,689 $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 SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
-------- --------
REVENUES:
Oil and gas sales $154,468 $79,710
Interest income 77 402
-------- -------
$154,545 $80,112
COSTS AND EXPENSES:
Lease operating $ 13,252 $17,317
Production tax 10,257 5,012
Depreciation, depletion, and
amortization of oil and gas
properties 18,125 17,089
General and administrative
(Note 2) 12,888 14,042
-------- -------
$ 54,522 $53,460
-------- -------
NET INCOME $100,023 $26,652
======== =======
GENERAL PARTNER - NET INCOME $ 5,723 $ 1,996
======== =======
LIMITED PARTNERS - NET INCOME $ 94,300 $24,656
======== =======
NET INCOME per unit $ 7.89 $ 2.06
======== =======
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, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
REVENUES:
Oil and gas sales $284,764 $199,910
Interest income 145 1,134
Loss on sale of oil and gas
properties - ( 106)
-------- --------
$284,909 $200,938
COSTS AND EXPENSES:
Lease operating $ 53,981 $ 46,326
Production tax 17,944 11,942
Depreciation, depletion, and
amortization of oil and gas
properties 40,174 39,052
General and administrative
(Note 2) 48,774 48,009
-------- --------
$160,873 $145,329
-------- --------
NET INCOME $124,036 $ 55,609
======== ========
GENERAL PARTNER - NET INCOME $ 7,802 $ 4,286
======== ========
LIMITED PARTNERS - NET INCOME $116,234 $ 51,323
======== ========
NET INCOME per unit $ 9.72 $ 4.29
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
-------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $124,036 $ 55,609
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 40,174 39,052
Loss on sale of oil and gas
properties - 106
(Increase) decrease in accounts
receivable - oil and gas sales ( 63,504) 24,895
Decrease in accounts receivable -
General Partner 6,814 -
Decrease in accounts payable ( 20,097) ( 4,070)
-------- --------
Net cash provided by operating
activities $ 87,423 $115,592
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 27,321) ($ 105)
Proceeds from sale of oil and gas
properties 256 -
-------- --------
Net cash used by investing
activities ($ 27,065) ($ 105)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 15,051) ($140,219)
-------- --------
Net cash used by financing activities ($ 15,051) ($140,219)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 45,307 ($ 24,732)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 20,930 77,028
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 66,237 $ 52,296
======== ========
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,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 19,825 $ 33,065
Accounts receivable:
Oil and gas sales 99,363 51,790
General Partner (Note 2) - 18,767
-------- --------
Total current assets $119,188 $103,622
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 175,365 175,640
DEFERRED CHARGE 80,059 80,059
-------- --------
$374,612 $359,321
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 12,719 $ 13,520
-------- --------
Total current liabilities $ 12,719 $ 13,520
ACCRUED LIABILITY $ 12,927 $ 12,927
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 93,761) ($ 96,039)
Limited Partners, issued and
outstanding, 8,885 units 442,727 428,913
-------- --------
Total Partners' capital $348,966 $332,874
-------- --------
$374,612 $359,321
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
---------- ---------
REVENUES:
Oil and gas sales $135,754 $95,155
Interest income 185 358
-------- -------
$135,939 $95,513
COSTS AND EXPENSES:
Lease operating $ 40,472 $46,679
Production tax 8,381 6,261
Depreciation, depletion, and
amortization of oil and gas
properties 6,484 5,342
General and administrative
(Note 2) 24,547 25,400
-------- -------
$ 79,884 $83,682
-------- -------
NET INCOME $ 56,055 $11,831
======== =======
GENERAL PARTNER - NET INCOME $ 3,053 $ 788
======== =======
LIMITED PARTNERS - NET INCOME $ 53,002 $11,043
======== =======
NET INCOME per unit $ 5.97 $ 1.24
======== =======
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, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
REVENUES:
Oil and gas sales $324,129 $377,250
Interest income 523 2,348
Loss on sale of oil and gas
properties - ( 20)
-------- --------
$324,652 $379,578
COSTS AND EXPENSES:
Lease operating $100,971 $140,610
Production tax 18,887 23,337
Depreciation, depletion, and
amortization of oil and gas
properties 19,568 18,338
General and administrative
(Note 2) 81,467 80,561
-------- --------
$220,893 $262,846
-------- --------
NET INCOME $103,759 $116,732
======== ========
GENERAL PARTNER - NET INCOME $ 5,945 $ 6,453
======== ========
LIMITED PARTNERS - NET INCOME $ 97,814 $110,279
======== ========
NET INCOME per unit $ 11.01 $ 12.41
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $103,759 $116,732
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 19,568 18,338
Loss on sale of oil and gas
properties - 20
(Increase) decrease in accounts
receivable - oil and gas sales ( 47,573) 69,340
Decrease in accounts receivable -
General Partner 18,767 -
Decrease in accounts payable ( 801) ( 6,708)
-------- --------
Net cash provided by operating
activities $ 93,720 $197,722
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 19,341) $ -
Proceeds from sale of oil and
gas properties 48 1,781
-------- --------
Net cash provided (used) by investing
activities ($ 19,293) $ 1,781
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 87,667) ($302,988)
-------- --------
Net cash used by financing activities ($ 87,667) ($302,988)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 13,240) ($103,485)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 33,065 141,699
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 19,825 $ 38,214
======== ========
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,
1999 1998
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $181,811 $167,361
Accounts receivable:
Oil and gas sales 173,766 134,477
-------- --------
Total current assets $355,577 $301,838
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 561,094 605,793
DEFERRED CHARGE 66,062 66,062
-------- --------
$982,733 $973,693
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 8,199 $ 9,270
Gas imbalance payable 43,521 43,521
-------- --------
Total current liabilities $ 51,720 $ 52,791
ACCRUED LIABILITY $ 14,456 $ 14,456
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 26,199) ($ 53,161)
Limited Partners, issued and
outstanding, 7,195 units 942,756 959,607
-------- --------
Total Partners' capital $916,557 $906,446
-------- --------
$982,733 $973,693
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
REVENUES:
Oil and gas sales $250,390 $331,185
Interest income 1,544 3,210
Gain on sale of oil and gas
properties 494 4,186
-------- --------
$252,428 $338,581
COSTS AND EXPENSES:
Lease operating $ 22,130 $ 24,216
Production tax 17,028 22,718
Depreciation, depletion, and
amortization of oil and gas
properties 15,407 20,706
General and administrative
(Note 2) 20,934 21,655
-------- --------
$ 75,499 $ 89,295
-------- --------
NET INCOME $176,929 $249,286
======== ========
GENERAL PARTNER - NET INCOME $ 28,465 $ 39,810
======== ========
LIMITED PARTNERS - NET INCOME $148,464 $209,476
======== ========
NET INCOME per unit $ 20.64 $ 29.12
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
-------- ----------
REVENUES:
Oil and gas sales $572,783 $ 811,567
Interest income 4,124 9,298
Gain on sale of oil and gas
properties 494 259,982
-------- ----------
$577,401 $1,080,847
COSTS AND EXPENSES:
Lease operating $ 75,962 $ 81,687
Production tax 39,550 54,540
Depreciation, depletion, and
amortization of oil and gas
properties 45,463 48,294
General and administrative
(Note 2) 69,490 69,222
-------- ----------
$230,465 $ 253,743
-------- ----------
NET INCOME $346,936 $ 827,104
======== ==========
GENERAL PARTNER - NET INCOME $ 57,787 $ 129,432
======== ==========
LIMITED PARTNERS - NET INCOME $289,149 $ 697,672
======== ==========
NET INCOME per unit $ 40.19 $ 96.97
======== ==========
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, 1999 AND 1998
(Unaudited)
1999 1998
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $346,936 $827,104
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 45,463 48,294
Gain on sale of oil and gas
properties ( 494) ( 259,982)
(Increase) decrease in accounts
receivable - oil and gas sales ( 39,289) 142,311
Decrease in accounts payable ( 1,071) ( 22,946)
-------- --------
Net cash provided by operating
activities $351,545 $734,781
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 764) ($ 2,364)
Proceeds from sale of oil and
gas properties 494 272,824
-------- --------
Net cash provided (used) by
investing activities ($ 270) $270,460
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($336,825) ($990,251)
-------- --------
Net cash used by financing activities ($336,825) ($990,251)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 14,450 $ 14,990
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 167,361 274,109
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $181,811 $289,099
======== ========
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,
1999 1998
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 670,194 $ 12,003
Accounts receivable:
Oil and gas sales 810,904 651,445
---------- ----------
Total current assets $1,481,098 $ 663,448
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,786,954 4,191,663
DEFERRED CHARGE 570,545 570,545
---------- ----------
$5,838,597 $5,425,656
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 66,608 $ 209,486
Gas imbalance payable 115,808 115,808
---------- ----------
Total current liabilities $ 182,416 $ 325,294
ACCRUED LIABILITY $ 151,490 $ 151,490
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 86,408) ($ 232,100)
Limited Partners, issued and
outstanding, 41,839 units 5,591,099 5,180,972
---------- ----------
Total Partners' capital $5,504,691 $4,948,872
---------- ----------
$5,838,597 $5,425,656
========== ==========
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, 1999 AND 1998
(Unaudited)
1999 1998
---------- -----------
REVENUES:
Oil and gas sales $1,252,798 $1,332,007
Interest income 6,275 11,851
Gain on sale of oil and gas
properties 1,587 9,953
---------- ----------
$1,260,660 $1,353,811
COSTS AND EXPENSES:
Lease operating $ 192,512 $ 209,281
Production tax 77,422 96,904
Depreciation, depletion, and
amortization of oil and gas
properties 155,433 210,621
General and administrative
(Note 2) 121,723 125,620
---------- ----------
$ 547,090 $ 642,426
---------- ----------
NET INCOME $ 713,570 $ 711,385
========== ==========
GENERAL PARTNER - NET INCOME $ 127,855 $ 134,417
========== ==========
LIMITED PARTNERS - NET INCOME $ 585,715 $ 576,968
========== ==========
NET INCOME per unit $ 14.00 $ 13.79
========== ==========
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, 1999 AND 1998
(Unaudited)
1999 1998
----------- -----------
REVENUES:
Oil and gas sales $2,906,835 $3,424,077
Interest income 9,444 34,150
Gain on sale of oil and gas
properties 1,587 1,159,004
Insurance settlement 675,000 -
---------- ----------
$3,592,866 $4,617,231
COSTS AND EXPENSES:
Lease operating $ 640,242 $ 665,420
Production tax 187,037 241,843
Depreciation, depletion, and
amortization of oil and gas
properties 432,075 523,339
General and administrative
(Note 2) 400,334 398,470
---------- ----------
$1,659,688 $1,829,072
---------- ----------
NET INCOME $1,933,178 $2,788,159
========== ==========
GENERAL PARTNER - NET INCOME $ 349,051 $ 486,369
========== ==========
LIMITED PARTNERS - NET INCOME $1,584,127 $2,301,790
========== ==========
NET INCOME per unit $ 37.86 $ 55.02
========== ==========
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, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,933,178 $2,788,159
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 432,075 523,339
Gain on sale of oil and gas
properties ( 1,587) ( 1,159,004)
(Increase) decrease in accounts
receivable - oil and gas sales ( 159,459) 476,744
Decrease in accounts receivable -
other - 69,917
Decrease in accounts payable ( 142,878) ( 189,112)
---------- ----------
Net cash provided by operating
activities $2,061,329 $2,510,043
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 27,366) $ -
Proceeds from sale of oil and
gas properties 1,587 1,278,511
---------- ----------
Net cash provided (used) by
investing activities ($ 25,779) $1,278,511
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,377,359) ($3,639,630)
---------- ----------
Net cash used by financing activities ($1,377,359) ($3,639,630)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 658,191 $ 148,924
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 12,003 827,775
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 670,194 $ 976,699
========== ==========
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,
1999 1998
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 158,945 $ 5,457
Accounts receivable:
Oil and gas sales 258,091 195,444
---------- ----------
Total current assets $ 417,036 $ 200,901
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,194,825 1,311,368
DEFERRED CHARGE 346,704 346,704
---------- ----------
$1,958,565 $1,858,973
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 31,406 $ 406,740
Gas imbalance payable 38,738 38,738
---------- ----------
Total current liabilities $ 70,144 $ 445,478
ACCRUED LIABILITY $ 109,153 $ 109,153
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 4,705) ($ 94,547)
Limited Partners, issued and
outstanding, 14,321 units 1,783,973 1,398,889
---------- ----------
Total Partners' capital $1,779,268 $1,304,342
---------- ----------
$1,958,565 $1,858,973
========== ==========
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, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
REVENUES:
Oil and gas sales $408,335 $409,569
Interest income 1,095 3,065
Gain on sale of oil and
gas properties 546 2,403
-------- --------
$409,976 $415,037
COSTS AND EXPENSES:
Lease operating $100,184 $ 93,294
Production tax 22,677 30,034
Depreciation, depletion, and
amortization of oil and gas
properties 49,917 65,631
General and administrative
(Note 2) 41,662 42,912
-------- --------
$214,440 $231,871
-------- --------
NET INCOME $195,536 $183,166
======== ========
GENERAL PARTNER - NET INCOME $ 36,154 $ 36,204
======== ========
LIMITED PARTNERS - NET INCOME $159,382 $146,962
======== ========
NET INCOME per unit $ 11.13 $ 10.26
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
----------- -----------
REVENUES:
Oil and gas sales $ 919,529 $1,096,504
Interest income 1,856 10,784
Gain on sale of oil and
gas properties 546 335,669
Insurance settlement 472,500 -
---------- ----------
$1,394,431 $1,442,957
COSTS AND EXPENSES:
Lease operating $ 277,636 $ 309,400
Production tax 53,848 74,424
Depreciation, depletion, and
amortization of oil and gas
properties 134,083 161,523
General and administrative
(Note 2) 137,597 136,788
---------- ----------
$ 603,164 $ 682,135
---------- ----------
NET INCOME $ 791,267 $ 760,822
========== ==========
GENERAL PARTNER - NET INCOME $ 137,183 $ 135,119
========== ==========
LIMITED PARTNERS - NET INCOME $ 654,084 $ 625,703
========== ==========
NET INCOME per unit $ 45.67 $ 43.69
========== ==========
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, 1999 AND 1998
(Unaudited)
1999 1998
-------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $791,267 $ 760,822
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 134,083 161,523
Gain on sale of oil and gas
properties ( 546) ( 335,669)
(Increase) decrease in accounts
receivable - oil and gas sales ( 62,647) 146,457
Decrease in accounts receivable -
other - 48,942
Decrease in accounts payable ( 375,334) ( 20,861)
-------- ----------
Net cash provided by operating
activities $486,823 $ 761,214
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 18,998) ($ 4,488)
Proceeds from sale of oil and
gas properties 2,004 438,200
-------- ----------
Net cash provided (used) by
investing activities ($ 16,994) $ 433,712
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($316,341) ($1,166,438)
-------- ----------
Net cash used by financing activities ($316,341) ($1,166,438)
-------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $153,488 $ 28,488
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 5,457 251,220
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $158,945 $ 279,708
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
21
<PAGE>
GEODYNE ENERGY INCOME PROGRAM I LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of September 30, 1999, combined statements
of operations for the three and nine months ended September 30, 1999 and
1998, and combined statements of cash flows for the nine months ended
September 30, 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 September 30, 1999, the combined results of
operations for the three and nine months ended September 30, 1999 and
1998, and the combined cash flows for the nine months ended September 30,
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 September 30, 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.
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 proceeds are credited to oil and gas
properties.
23
<PAGE>
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, 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 $1,575 $ 11,313
I-C 1,165 23,382
I-D 948 19,986
I-E 5,503 116,220
I-F 1,882 39,780
During the nine months ended September 30, 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 $14,835 $ 33,939
I-C 11,321 70,146
I-D 9,532 59,958
I-E 51,674 348,660
I-F 18,257 119,340
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.
24
<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.
25
<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, 1999 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
During the nine months ended September 30, 1999, the I-B and I-C
Partnerships invested approximately $27,000 and $5,000, respectively, in
the recompletion of the Unit 30-11 #1 well located in Jefferson Davis
County, Mississippi in order to improve the recovery of reserves. This
recompletion was successful. The I-B and I-C Partnerships own 2.5% and
0.5% working interests, respectively, in this well.
During the nine months ended September 30, 1999, the I-C Partnership
invested approximately $14,000 in the recompletion of the Ross Draw Unit
#10 well located in Eddy County, New Mexico in order to improve recovery
of reserves. This recompletion was successful. The I-C Partnership owns a
5.8% working interest in this well.
26
<PAGE>
In August 1999, the I-E and I-F Partnerships received insurance settlement
proceeds of $675,000 and $472,500, respectively, for the costs incurred to
drill the State Lease 8191 No. 4 well in St. Bernard Parish, Louisiana 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. These amounts were included in the Partnerships' August 1999
cash distributions.
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. The General Partner has elected
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, the
General Partner has elected to let these Partnerships terminate on
December 31, 1999 pursuant to the terms of their Partnership Agreements.
The dissolution of the I-B and I-C Partnerships (the "Terminating
Partnerships") will be effective on December 31, 1999. Pursuant to the
terms of the Partnership Agreements, the Terminating Partnerships will
then be liquidated. The liquidation procedures under the Partnership
Agreements provide that the General Partner will sell the Terminating
Partnerships' properties and, in accordance therewith, attempt to obtain
the best price available for such properties. Pending such sales, the
General Partner will continue to manage the Terminating Partnerships'
properties. It is currently anticipated that the Terminating Partnerships'
properties will be sold during the first quarter of 2000 at an EBCO
Auction tentatively scheduled to be held in Oklahoma City, Oklahoma.
Gain or loss realized on the sale of the Terminating Partnerships' assets
will be credited to (in the case of gain) or charged against (in the case
of loss) each Partners' capital account to the extent allocable under the
Partnership Agreement. In settling the Partners' accounts upon
dissolution, the assets of the Terminating Partnership will be paid out as
follows: (i) to third party creditors; (ii) to the General Partner for any
expenses of the Terminating Partnership paid by or payable to it to the
extent it is entitled to reimbursement under the Partnership Agreement;
(iii) to all of the Limited Partners in the amount equivalent to the
amount of their positive capital account balances (as adjusted pursuant to
the Partnership Agreement) on the date of distribution; (iv) to the
General Partner in the amount equivalent to the amount of its positive
capital account balance (as adjusted) on the date of distribution; and (v)
the balance shall be paid to the
27
<PAGE>
Limited Partners and General Partner in the same percentage interests as
cash distributions are payable under the Partnership Agreement. In
addition, in the event that, following the final distribution, the General
Partner has a deficit balance in its capital account balance, it shall
contribute cash to the Terminating Partnership necessary to eliminate the
deficit balance, which amount would be distributed to the other Partners
to the extent of their remaining positive capital account balances.
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 in 1998 and early 1999 were at or
near their lowest level in the past decade due primarily to the global
surplus of crude oil. Oil prices have since 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.
28
<PAGE>
I-B PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1998.
Three Months Ended September 30,
--------------------------------
1999 1998
-------- -------
Oil and gas sales $154,468 $79,710
Oil and gas production expenses $ 23,509 $22,329
Barrels produced 545 259
Mcf produced 59,595 43,023
Average price/Bbl $ 15.75 $ 13.05
Average price/Mcf $ 2.45 $ 1.77
As shown in the table above, total oil and gas sales increased $74,758
(93.8%) for the three months ended September 30, 1999 as compared to the
three months ended September 30, 1998. Of this increase, approximately
$29,000 was related to an increase in volumes of gas sold and
approximately $40,000 was related to an increase in the average price of
gas sold. Volumes of oil and gas sold increased 286 barrels and 16,572
Mcf, respectively, for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. The increase in
volumes of gas sold was primarily due to (i) the successful completion of
one well in late 1998 and another two wells in early 1999, (ii) successful
workovers performed during late 1998 and early 1999 on two wells in order
to improve the recovery of reserves, and (iii) the successful recompletion
of one significant well during 1999 in order to improve the recovery of
reserves. These increases were partially offset by a positive prior period
volume adjustment made by the purchaser on one significant well during the
three months ended September 30, 1998. The I-B Partnership has an
overriding royalty interest in each of the new wells. Average oil and gas
prices increased to $15.75 per barrel and $2.45 per Mcf, respectively, for
the three months ended September 30, 1999 from $13.05 per barrel and $1.77
per Mcf, respectively, for the three months ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $1,180 (5.3%) for the three months ended
September 30, 1999 as compared to the three months ended September 30,
1998. This increase was primarily due to an increase in production taxes
associated with the increase in oil and gas sales, which increase was
partially offset by a decrease in repair and maintenance expenses on
several wells during the three months ended September 30, 1999 as compared
to the three months ended September 30, 1998. As a percentage of oil and
gas sales, these expenses decreased to 15.2% for the three months ended
29
<PAGE>
September 30, 1999 from 28.0% for the three months ended September 30,
1998. This percentage decrease was primarily due to the increases in the
average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $1,036 (6.1%) for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. As a percentage of
oil and gas sales, this expense decreased to 11.7% for the three months
ended September 30, 1999 from 21.4% for the three months ended September
30, 1998. This percentage decrease was primarily due to the increases in
the average prices of oil and gas sold.
General and administrative expenses decreased $1,154 (8.2%) for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
decreased to 8.3% for the three months ended September 30, 1999 from 17.6%
for the three months ended September 30, 1998. This percentage decrease
was primarily due to the increase in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1998.
Nine Months Ended September 30,
-------------------------------
1999 1998
-------- --------
Oil and gas sales $284,764 $199,910
Oil and gas production expenses $ 71,925 $ 58,268
Barrels produced 1,552 995
Mcf produced 130,020 95,902
Average price/Bbl $ 13.63 $ 13.14
Average price/Mcf $ 2.03 $ 1.95
As shown in the table above, total oil and gas sales increased $84,854
(42.4%) for the nine months ended September 30, 1999 as compared to the
nine months ended September 30, 1998. Of this increase, approximately
$66,000 was related to an increase in volumes of gas sold and
approximately $10,000 was related to an increase in the average price of
gas sold. Volumes of oil and gas sold increased 557 barrels and 34,118
Mcf, respectively, for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. The increase in
volumes of gas sold was primarily due to (i) the successful completion of
one well in late 1998 and another two wells in early 1999 and (ii)
successful workovers performed during late 1998 and early 1999 on two
wells in order to improve the recovery of reserves, which increases were
partially offset by a
30
<PAGE>
positive prior period volume adjustment made by the purchaser on one
significant well during the nine months ended September 30, 1998. The I-B
Partnership has an overriding royalty interest in each of the new wells.
Average oil and gas prices increased to $13.63 per barrel and $2.03 per
Mcf, respectively, for the nine months ended September 30, 1999 from
$13.14 per barrel and $1.95 per Mcf, respectively, for the nine months
ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $13,657 (23.4%) for the nine months ended
September 30, 1999 as compared to the nine months ended September 30,
1998. This increase was primarily due to workover expenses incurred on one
significant well during the nine months ended September 30, 1999 in order
to improve the recovery of reserves. As a percentage of oil and gas sales,
these expenses decreased to 25.3% for the nine months ended September 30,
1999 from 29.1% for the nine months ended September 30, 1998. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $1,122 (2.9%) for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. As a percentage of
oil and gas sales, this expense decreased to 14.1% for the nine months
ended September 30, 1999 from 19.5% for the nine months ended September
30, 1998. This percentage decrease was primarily due to the increases in
the average prices of oil and gas sold.
General and administrative expenses increased $765 (1.6%) for the nine
months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
decreased to 17.1% for the nine months ended September 30, 1999 from 24.0%
for the nine months ended September 30, 1998. This percentage decrease was
primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 1999 totaling $6,740,527 or 56.37% of Limited Partners' capital
contributions.
31
<PAGE>
I-C PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1998.
Three Months Ended September 30,
--------------------------------
1999 1998
-------- -------
Oil and gas sales $135,754 $95,155
Oil and gas production expenses $ 48,853 $52,940
Barrels produced 3,667 3,483
Mcf produced 25,449 26,940
Average price/Bbl $ 18.14 $ 12.19
Average price/Mcf $ 2.72 $ 1.96
As shown in the table above, total oil and gas sales increased $40,599
(42.7%) for the three months ended September 30, 1999 as compared to the
three months ended September 30, 1998. Of this increase, approximately
$22,000 and $19,000, respectively, were related to increases in the
average prices of oil and gas sold. Volumes of oil sold increased 184
barrels, while volumes of gas sold decreased 1,491 Mcf for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. The decrease in volumes of gas sold was primarily due
to production difficulties on one significant well during the three months
ended September 30, 1999. This decrease was partially offset by new
production on four wells successfully completed during 1999 in which the
I-C Partnership has an overriding royalty interest. Average oil and gas
prices increased to $18.14 per barrel and $2.72 per Mcf, respectively, for
the three months ended September 30, 1999 from $12.19 per barrel and $1.96
per Mcf, respectively, for the three months ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $4,087 (7.7%) for the three months ended
September 30, 1999 as compared to the three months ended September 30,
1998. This decrease was primarily due to subsurface repair and maintenance
expenses incurred on one well during the three months ended September 30,
1998. This decrease was partially offset by an increase in production
taxes associated with the increase in oil and gas sales. As a percentage
of oil and gas sales, these expenses decreased to 36.0% for the three
months ended September 30, 1999 from 55.6% for the three months ended
September 30, 1998. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
32
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
increased $1,142 (21.4%) for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. This increase was
primarily due to 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 decreased to 4.8% for the three months ended September 30,
1999 from 5.6% for the three months ended September 30, 1998. This
decrease was primarily due to the increases in the average prices of oil
and gas sold.
General and administrative expenses decreased $853 (3.4%) for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
decreased to 18.1% for the three months ended September 30, 1999 from
26.7% for the three months ended September 30, 1998. This percentage
decrease was primarily due to the increase in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1998.
Nine Months Ended September 30,
-------------------------------
1999 1998
-------- --------
Oil and gas sales $324,129 $377,250
Oil and gas production expenses $119,858 $163,947
Barrels produced 11,285 10,865
Mcf produced 75,472 99,032
Average price/Bbl $ 14.55 $ 12.37
Average price/Mcf $ 2.12 $ 2.45
As shown in the table above, total oil and gas sales decreased $53,121
(14.1%) for the nine months ended September 30, 1999 as compared to the
nine months ended September 30, 1998. Of this decrease, approximately
$58,000 was related to a decrease in volumes of gas sold and approximately
$25,000 was related to a decrease in the average price of gas sold. These
decreases were partially offset by an increase of approximately $25,000
related to an increase in the average price of oil sold. Volumes of oil
sold increased 420 barrels, while volumes of gas sold decreased 23,560 Mcf
for the nine months ended September 30, 1999 as compared to the nine
months ended September 30, 1998. The decrease in volumes of gas sold was
primarily due to production difficulties on one significant well during
the nine months ended September 30, 1999. This decrease was
33
<PAGE>
partially offset by new production on four wells successfully completed
during 1999 in which the I-C Partnership has an overriding royalty
interest. Average oil prices increased to $14.55 per barrel for the nine
months ended September 30, 1999 from $12.37 per barrel for the nine months
ended September 30, 1998. Average gas prices decreased to $2.12 per Mcf
for the nine months ended September 30, 1999 from $2.45 per Mcf for the
nine months ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $44,089 (26.9%) for the nine months ended
September 30, 1999 as compared to the nine months ended September 30,
1998. This decrease was primarily due to (i) repair and maintenance
expenses incurred on two significant wells during the nine months ended
September 30, 1998 and (ii) a negative adjustment of prior period lease
operating expenses made by the operator on one significant well during the
nine months ended September 30, 1999. As a percentage of oil and gas
sales, these expenses decreased to 37.0% for the nine months ended
September 30, 1999 from 43.5% for the nine months ended September 30,
1998. This percentage decrease was primarily due to the dollar decrease in
oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
increased $1,230 (6.7%) for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. This increase was
primarily due to downward revisions in the estimates of remaining oil and
gas reserves at December 31, 1998. This increase was partially offset by a
decrease in depreciation, depletion, and amortization primarily due to the
decrease in volumes of gas sold. As a percentage of oil and gas sales,
this expense increased to 6.0% for the nine months ended September 30,
1999 from 4.9% for the nine months ended September 30, 1998. This
percentage increase was primarily due to the dollar increase in
depreciation, depletion, and amortization.
General and administrative expenses increased $906 (1.1%) for the nine
months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
increased to 25.1% for the nine months ended September 30, 1999 from 21.4%
for the nine months ended September 30, 1998. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 1999 totaling $8,295,300 or 93.36% of Limited Partners' capital
contributions.
34
<PAGE>
I-D PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1998.
Three Months Ended September 30,
--------------------------------
1999 1998
-------- --------
Oil and gas sales $250,390 $331,185
Oil and gas production expenses $ 39,158 $ 46,934
Barrels produced 2,577 2,497
Mcf produced 82,545 155,204
Average price/Bbl $ 17.61 $ 12.20
Average price/Mcf $ 2.48 $ 1.94
As shown in the table above, total oil and gas sales decreased $80,795
(24.4%) for the three months ended September 30, 1999 as compared to the
three months ended September 30, 1998. Of this decrease, approximately
$141,000 was related to a decrease in volumes of gas sold, which decrease
was partially offset by increases of approximately $14,000 and $45,000,
respectively, related to increases in the average prices of oil and gas
sold. Volumes of oil sold increased 80 barrels, while volumes of gas sold
decreased 72,659 Mcf for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. The decrease in
volumes of gas sold was primarily due to (i) positive prior period volume
adjustments made by the operators on two significant wells during the
three months ended September 30, 1998 and (ii) production difficulties on
one significant well during the three months ended September 30, 1999.
Average oil and gas prices increased to $17.61 per barrel and $2.48 per
Mcf, respectively, for the three months ended September 30, 1999 from
$12.20 per barrel and $1.94 per Mcf, respectively, for the three months
ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $7,776 (16.6%) for the three months ended
September 30, 1999 as compared to the three months ended September 30,
1998. This decrease was primarily due to a decrease in production taxes
associated with the decrease in oil and gas sales. As a percentage of oil
and gas sales, these expenses increased to 15.6% for the three months
ended September 30, 1999 from 14.2% for the three months ended September
30, 1998.
35
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $5,299 (25.6%) for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. This decrease was
primarily due to the decrease in volumes of gas sold. As a percentage of
oil and gas sales, this expense decreased to 6.2% for the three months
ended September 30, 1999 from 6.3% for the three months ended September
30, 1998.
General and administrative expenses decreased $721 (3.3%) for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
increased to 8.4% for the three months ended September 30, 1999 from 6.5%
for the three months ended September 30, 1998. This percentage increase
was primarily due to the decrease in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1998.
Nine Months Ended September 30,
-------------------------------
1999 1998
-------- --------
Oil and gas sales $572,783 $811,567
Oil and gas production expenses $115,512 $136,227
Barrels produced 7,386 8,830
Mcf produced 234,026 343,955
Average price/Bbl $ 14.10 $ 12.94
Average price/Mcf $ 2.00 $ 2.03
As shown in the table above, total oil and gas sales decreased $238,784
(29.4%) for the nine months ended September 30, 1999 as compared to the
nine months ended September 30, 1998. Of this decrease, approximately
$223,000 was related to a decrease in volumes of gas sold. Volumes of oil
and gas sold decreased 1,444 barrels and 109,929 Mcf, respectively, for
the nine months ended September 30, 1999 as compared to the nine months
ended September 30, 1998. The decrease in volumes of oil sold was
primarily due to production difficulties on one significant well during
the nine months ended September 30, 1999. The decrease in volumes of gas
sold was primarily due to (i) production difficulties on one significant
well during the nine months ended September 30, 1999, (ii) positive prior
period volume adjustments made by the operators on two significant wells
during the nine months ended September 30, 1998, and (iii) the sale of
several wells during 1998. Average oil prices increased to $14.10 per
barrel for the nine months ended September 30, 1999 from $12.94 per barrel
for the nine months ended September 30, 1998. Average gas prices decreased
to $2.00 per Mcf for the nine months ended
36
<PAGE>
September 30, 1999 from $2.03 per Mcf for the nine months ended September
30, 1998.
The I-D Partnership sold certain oil and gas properties during the nine
months ended September 30, 1999 and recognized a $494 gain on such sales.
Sales of oil and gas properties during the nine months ended September 30,
1998 resulted in the I-D Partnership recognizing similar gains of
$259,982.
Oil and gas production expenses decreased $20,715 (15.2%) for the nine
months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. This decrease was primarily due to (i) a decrease in
production taxes associated with the decrease in oil and gas sales and
(ii) a negative adjustment of prior period lease operating expenses made
by the operator on one significant well during the nine months ended
September 30, 1999. These decreases were partially offset by workover
expenses incurred on several wells during the nine months ended September
30, 1999 in order to improve the recovery of reserves. As a percentage of
oil and gas sales, these expenses increased to 20.2% for the nine months
ended September 30, 1999 from 16.8% for the nine months ended September
30, 1998. This percentage increase was primarily due to the workover
expenses incurred during 1999.
Depreciation, depletion, and amortization of oil and gas properties
decreased $2,831 (5.9%) for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. As a percentage of
oil and gas sales, this expense increased to 7.9% for the nine months
ended September 30, 1999 from 6.0% for the nine months ended September 30,
1998.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
increased to 12.1% for the nine months ended September 30, 1999 from 8.5%
for the nine months ended September 30, 1998. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 1999 totaling $14,314,175 or 198.95% of Limited Partners' capital
contributions.
37
<PAGE>
I-E PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1998.
Three Months Ended September 30,
--------------------------------
1999 1998
---------- ----------
Oil and gas sales $1,252,798 $1,332,007
Oil and gas production expenses $ 269,934 $ 306,185
Barrels produced 13,360 15,123
Mcf produced 411,175 623,229
Average price/Bbl $ 19.65 $ 10.56
Average price/Mcf $ 2.41 $ 1.88
As shown in the table above, total oil and gas sales decreased $79,209
(5.9%) for the three months ended September 30, 1999 as compared to the
three months ended September 30, 1998. Of this decrease, approximately
$18,000 and $399,000, respectively, were related to decreases in volumes
of oil and gas sold, which decreases were partially offset by increases of
approximately $121,000 and $217,000, respectively, related to increases in
the average prices of oil and gas sold. Volumes of oil and gas sold
decreased 1,763 barrels and 212,054 Mcf, respectively, for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. The decrease in volumes of oil sold was primarily due
to a negative prior period volume adjustment made by the purchaser on one
significant well during the three months ended September 30, 1999 and
normal declines in production. The decrease in volumes of gas sold was
primarily due to positive prior period volume adjustments made by the
purchasers on several wells during the three months ended September 30,
1998. Average oil and gas prices increased to $19.65 per barrel and $2.41
per Mcf, respectively, for the three months ended September 30, 1999 from
$10.56 per barrel and $1.88 per Mcf, respectively, for the three months
ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $36,251 (11.8%) for the three months ended
September 30, 1999 as compared to the three months ended September 30,
1998. This decrease was primarily due to (i) positive adjustments of prior
period lease operating expenses made by the operators on several wells
during the three months ended September 30, 1998, (ii) a decrease in
production taxes associated with the decrease in oil and gas sales, and
(iii) a negative adjustment of prior period production taxes made by the
purchaser on one significant well during the three months ended September
30, 1999. These decreases were partially offset by (i) workover expenses
incurred on two wells during the three months ended
38
<PAGE>
September 30, 1999 in order to improve the recovery of reserves and (ii) a
negative adjustment of prior period lease operating expenses made by the
operator on another significant well during the three months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
decreased to 21.5% for the three months ended September 30, 1999 from
23.0% for the three months ended September 30, 1998.
Depreciation, depletion, and amortization of oil and gas properties
decreased $55,188 (26.2%) for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. This decrease was
primarily due to the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense decreased to 12.4% for the
three months ended September 30, 1999 from 15.8% for the three months
ended September 30, 1998. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold.
General and administrative expenses decreased $3,897 (3.1%) for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
increased to 9.7% for the three months ended September 30, 1999 from 9.4%
for the three months ended September 30, 1998.
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1998.
Nine Months Ended September 30,
------------------------------
1999 1998
---------- ----------
Oil and gas sales $2,906,835 $3,424,077
Oil and gas production expenses $ 827,279 $ 907,263
Barrels produced 44,371 48,982
Mcf produced 1,162,880 1,480,138
Average price/Bbl $ 14.71 $ 12.35
Average price/Mcf $ 1.94 $ 1.90
As shown in the table above, total oil and gas sales decreased $517,242
(15.1%) for the nine months ended September 30, 1999 as compared to the
nine months ended September 30, 1998. Of this decrease, approximately
$57,000 and $604,000, respectively, were related to decreases in volumes
of oil and gas sold, which decreases were partially offset by increases of
approximately $105,000 and $39,000, respectively, related to increases in
the average prices of oil and gas sold. Volumes of oil and gas sold
decreased 4,611 barrels and 317,258 Mcf, respectively, for the nine months
ended September 30, 1999 as compared to the nine months ended September
30, 1998. The decrease in volumes of gas sold was primarily due to (i)
positive prior period
39
<PAGE>
volume adjustments made by the purchasers on several wells during the nine
months ended September 30, 1998 and (ii) the sale of several wells during
1998. Average oil and gas prices increased to $14.71 per barrel and $1.94
per Mcf, respectively, for the nine months ended September 30, 1999 from
$12.35 per barrel and $1.90 per Mcf, respectively, for the nine months
ended September 30, 1998.
The I-E Partnership sold certain oil and gas properties during the nine
months ended September 30, 1999 and recognized a $1,587 gain on such
sales. Sales during the nine months ended September 30, 1998 resulted in
the I-E Partnership recognizing similar gains totaling $1,159,004.
As discussed in Liquidity and Capital Resources above, the I-E Partnership
recognized an insurance settlement in the amount of $675,000 during the
nine months ended September 30, 1999. No similar settlements occurred
during the nine months ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $79,984 (8.8%) for the nine months ended
September 30, 1999 as compared to the nine months ended September 30,
1998. As a percentage of oil and gas sales, these expenses increased to
28.5% for the nine months ended September 30, 1999 from 26.5% for the nine
months ended September 30, 1998.
Depreciation, depletion, and amortization of oil and gas properties
decreased $91,264 (17.4%) for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. This decrease was
primarily due to the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense decreased to 14.9% for the
nine months ended September 30, 1999 from 15.3% for the nine months ended
September 30, 1998.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
increased to 13.8% for the nine months ended September 30, 1999 from 11.6%
for the nine months ended September 30, 1998. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 1999 totaling $54,842,552 or 131.08% of Limited Partners' capital
contributions.
40
<PAGE>
I-F PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1998.
Three Months Ended September 30,
--------------------------------
1999 1998
-------- --------
Oil and gas sales $408,335 $409,569
Oil and gas production expenses $122,861 $123,328
Barrels produced 6,158 6,899
Mcf produced 113,037 176,166
Average price/Bbl $ 19.40 $ 10.59
Average price/Mcf $ 2.56 $ 1.91
As shown in the table above, total oil and gas sales decreased $1,234
(0.3%) for the three months ended September 30, 1999 as compared to the
three months ended September 30, 1998. Of this decrease, approximately
$8,000 and $120,000, respectively, were related to decreases in volumes of
oil and gas sold, which decreases were partially offset by increases of
approximately $54,000 and $73,000, respectively, related to increases in
the average prices of oil and gas sold. Volumes of oil and gas sold
decreased 741 barrels and 63,129 Mcf, respectively, for the three months
ended September 30, 1999 as compared to the three months ended September
30, 1998. The decrease in volumes of oil sold was primarily due to a
negative prior period volume adjustment made by the purchaser on one
significant well during the three months ended September 30, 1999 and
normal declines in production. The decrease in volumes of gas sold was
primarily due to positive prior period volume adjustments made by the
purchasers on several wells during the three months ended September 30,
1998. Average oil and gas prices increased to $19.40 per barrel and $2.56
per Mcf, respectively, for the three months ended September 30, 1999 from
$10.59 per barrel and $1.91 per Mcf, respectively, for the three months
ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $467 (0.4%) for the three months ended
September 30, 1999 as compared to the three months ended September 30,
1998. This decrease was primarily due to (i) positive adjustments of prior
period lease operating expenses made by the operators on several wells
during the three months ended September 30, 1998, (ii) a decrease in
production taxes associated with the decrease in oil and gas sales, and
(iii) a negative adjustment of prior period production taxes made by the
purchaser on one significant well during the three months ended September
30, 1999. These decreases were substantially offset by workover
41
<PAGE>
expenses incurred on two wells during the three months ended September 30,
1999 in order to improve the recovery of reserves. As a percentage of oil
and gas sales, these expenses remained constant at 30.1% for the three
months ended September 30, 1999 and 1998.
Depreciation, depletion, and amortization of oil and gas properties
decreased $15,714 (23.9%) for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. This decrease was
primarily due to the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense decreased to 12.2% for the
three months ended September 30, 1999 from 16.0% for the three months
ended September 30, 1998. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold.
General and administrative expenses decreased $1,250 (2.9%) for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
decreased to 10.2% for the three months ended September 30, 1999 from
10.5% for the three months ended September 30, 1998.
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1998.
Nine Months Ended September 30,
-------------------------------
1999 1998
-------- ----------
Oil and gas sales $919,529 $1,096,504
Oil and gas production expenses $331,484 $ 383,824
Barrels produced 21,118 23,093
Mcf produced 296,248 396,874
Average price/Bbl $ 14.65 $ 12.50
Average price/Mcf $ 2.06 $ 2.04
As shown in the table above, total oil and gas sales decreased $176,975
(16.1%) for the nine months ended September 30, 1999 as compared to the
nine months ended September 30, 1998. Of this decrease, approximately
$25,000 and $205,000, respectively, were related to decreases in volumes
of oil and gas sold, which decreases were partially offset by an increase
of approximately $45,000 related to an increase in the average price of
oil sold. Volumes of oil and gas sold decreased 1,975 barrels and 100,626
Mcf, respectively, for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. The decrease in
volumes of gas sold was primarily due to (i) positive prior period volume
adjustments made by the purchasers on several wells during the nine months
ended September 30, 1998 and (ii) the sale of several wells during 1998.
Average oil and gas prices increased to $14.65 per
42
<PAGE>
barrel and $2.06 per Mcf, respectively, for the nine months ended
September 30, 1999 from $12.50 per barrel and $2.04 per Mcf, respectively,
for the nine months ended September 30, 1998.
The I-F Partnership sold certain oil and gas properties during the nine
months ended September 30, 1999 and recognized a $546 gain on such sales.
Sales during the nine months ended September 30, 1998 resulted in the I-F
Partnership recognizing similar gains totaling $335,669.
As discussed in Liquidity and Capital Resources above, the I-F Partnership
recognized an insurance settlement in the amount of $472,500 during the
nine months ended September 30, 1999. No similar settlements occurred
during the nine months ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $52,340 (13.6%) for the nine months ended
September 30, 1999 as compared to the nine months ended September 30,
1998. This decrease was primarily due to (i) workover expenses incurred on
one significant well during the nine months ended September 30, 1998 in
order to improve the recovery of reserves, (ii) positive adjustments of
prior period lease operating expenses made by the operator on several
wells during the nine months ended September 30, 1998, and (iii) a
decrease in production taxes associated with the decrease in oil and gas
sales. As a percentage of oil and gas sales, these expenses increased to
36.0% for the nine months ended September 30, 1999 from 35.0% for the nine
months ended September 30, 1998.
Depreciation, depletion, and amortization of oil and gas properties
decreased $27,440 (17.0%) for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. This decrease was
primarily due to the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense remained relatively constant
at 14.6% for the nine months ended September 30, 1999 and 14.7% for the
nine months ended September 30, 1998.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
increased to 15.0% for the nine months ended September 30, 1999 from 12.5%
for the nine months ended September 30, 1998. This percentage increase was
primarily due to the decrease in oil and gas sales.
43
<PAGE>
The Limited Partners have received cash distributions through September
30, 1999 totaling $18,255,664 or 127.48% 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.
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 Investment Company and its
affiliates ("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 has
addressed each of the three Y2K areas discussed above through a readiness
process that:
1. increased the awareness of the issue among key employees;
2. identified areas of potential risk;
3. assessed the relative impact of these risks and Samson's ability
to manage them; and
4. remediated the risks on a priority basis wherever possible.
44
<PAGE>
One of Samson Investment Company's Executive Vice Presidents 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 November 1, 1999, Samson is in the
final stages of implementation of a Y2K plan, as summarized below:
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. All of the Y2K upgrades have been completed.
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 currently Y2K compliant. The costs of all such risk
assessments and remediation were not material to the Partnerships.
45
<PAGE>
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 has communicated to
its management team the importance of having adequate staff available to
manually perform necessary functions to minimize disruptions.
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 have been tested by the respective vendors and have
been found to be Y2K compliant or have been upgraded or replaced.
Office machines have been tested by Samson and vendors and are believed to
be compliant.
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 all of which have been made compliant or replaced.
None of these applications are believed to be material to Samson or the
Partnerships. Samson believes that sufficient manual processes are
available to minimize any field level risk and that there will be no
material impact on the Partnerships with respect to these applications.
46
<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.
47
<PAGE>
4. Remediation. Where Samson perceived a significant risk of Y2K
non-compliance by banks and other significant vendors that would have had
a material impact on Samson's business, Samson undertook joint testing
during 1999, and any identified problems have been resolved.
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.
48
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
49
<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, 1999 and for
the nine months ended September 30, 1999, filed
herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the I-C Partnership's
financial statements as of September 30, 1999 and for
the nine months ended September 30, 1999, filed
herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the I-D Partnership's
financial statements as of September 30, 1999 and for
the nine months ended September 30, 1999, filed
herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the I-E Partnership's
financial statements as of September 30, 1999 and for
the nine months ended September 30, 1999, filed
herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the I-F Partnership's
financial statements as of September 30, 1999 and for
the nine months ended September 30, 1999, filed
herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on From 8-K.
Current Report on Form 8-K filed during the third quarter of 1999:
Date of Event: September 27, 1999
Date filed with the SEC: September 28, 1999
Items Included: Item 5 - Other Events
Item 7 - Exhibits
50
<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 5, 1999 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: November 5, 1999 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
51
<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, 1999 and for the nine
months ended September 30, 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 September 30, 1999 and for the nine
months ended September 30, 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 September 30, 1999 and for the nine
months ended September 30, 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 September 30, 1999 and for the nine
months ended September 30, 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 September 30, 1999 and for the nine
months ended September 30, 1999, filed herewith.
All other exhibits are omitted as inapplicable.
52
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000780200
<NAME> GEODYNE ENERGY INCOME LIMITED PTRSHP I-B
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 66,237
<SECURITIES> 0
<RECEIVABLES> 81,868
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 148,105
<PP&E> 6,537,193
<DEPRECIATION> 6,274,857
<TOTAL-ASSETS> 484,689
<CURRENT-LIABILITIES> 4,176
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 457,023
<TOTAL-LIABILITY-AND-EQUITY> 484,689
<SALES> 284,764
<TOTAL-REVENUES> 284,909
<CGS> 0
<TOTAL-COSTS> 160,873
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 124,036
<INCOME-TAX> 0
<INCOME-CONTINUING> 124,036
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 124,036
<EPS-BASIC> 9.72
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000791067
<NAME> GEODYNE ENERGY INCOME LIMITED PTRSHP I-C
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 19,825
<SECURITIES> 0
<RECEIVABLES> 99,363
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 119,188
<PP&E> 3,659,027
<DEPRECIATION> 3,483,662
<TOTAL-ASSETS> 374,612
<CURRENT-LIABILITIES> 12,719
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 348,966
<TOTAL-LIABILITY-AND-EQUITY> 374,612
<SALES> 324,129
<TOTAL-REVENUES> 324,652
<CGS> 0
<TOTAL-COSTS> 220,893
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 103,759
<INCOME-TAX> 0
<INCOME-CONTINUING> 103,759
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 103,759
<EPS-BASIC> 11.01
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000799178
<NAME> GEODYNE ENERGY INCOME LTD PTRSHIP I-D
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 181,811
<SECURITIES> 0
<RECEIVABLES> 173,766
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 355,577
<PP&E> 4,605,490
<DEPRECIATION> 4,044,396
<TOTAL-ASSETS> 982,733
<CURRENT-LIABILITIES> 51,720
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 916,557
<TOTAL-LIABILITY-AND-EQUITY> 982,733
<SALES> 572,783
<TOTAL-REVENUES> 577,401
<CGS> 0
<TOTAL-COSTS> 230,465
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 346,936
<INCOME-TAX> 0
<INCOME-CONTINUING> 346,936
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 346,936
<EPS-BASIC> 40.19
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806613
<NAME> GEODYNE ENERGY INCOME LTD PTRSHP I-E
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 670,194
<SECURITIES> 0
<RECEIVABLES> 810,904
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,481,098
<PP&E> 26,672,542
<DEPRECIATION> 22,885,588
<TOTAL-ASSETS> 5,838,597
<CURRENT-LIABILITIES> 182,416
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 5,504,691
<TOTAL-LIABILITY-AND-EQUITY> 5,838,597
<SALES> 2,906,835
<TOTAL-REVENUES> 3,592,866
<CGS> 0
<TOTAL-COSTS> 1,659,688
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,933,178
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,933,178
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,933,178
<EPS-BASIC> 37.86
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000811031
<NAME> GEODYNE ENERGY INCOME LTD PTRSHP I-F
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 158,945
<SECURITIES> 0
<RECEIVABLES> 258,091
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 417,036
<PP&E> 8,035,856
<DEPRECIATION> 6,841,031
<TOTAL-ASSETS> 1,958,565
<CURRENT-LIABILITIES> 70,144
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,779,268
<TOTAL-LIABILITY-AND-EQUITY> 1,958,565
<SALES> 919,529
<TOTAL-REVENUES> 1,394,431
<CGS> 0
<TOTAL-COSTS> 603,164
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 791,267
<INCOME-TAX> 0
<INCOME-CONTINUING> 791,267
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 791,267
<EPS-BASIC> 45.67
<EPS-DILUTED> 0
</TABLE>
