<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended September 30, 1995
Commission File Number 33-3023
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CLINTON APPALACHIAN X LIMITED PARTNERSHIP
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(Exact name of registrant as specified in its charter)
OHIO 31-1188746
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State or other jurisdiction of (I.R.S. Employer Identification No)
incorporation or organization
4770 Indianola Avenue Columbus, Ohio 43214
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(Address of principal executive offices) (Zip Code)
(614) 888-9588
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(Registrant's telephone number including area code)
NOT APPLICABLE
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(Former name, former address and former fiscal year, if changed since last
reported.)
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
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<TABLE>
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
(AN OHIO LIMITED PARTNERSHIP)
<CAPTION>
BALANCE SHEETS (Unaudited)
ASSETS September 30, December 31,
- --------------------------------------------------------------- 1995 1994
------------- ------------
<S> <C> <C>
Current Assets:
Cash $52,154 $40,348
Production Receivable 44,297 48,383
------------- ------------
Total Current Assets 96,451 88,731
------------- ------------
Oil and Gas Properties, at cost (successful efforts method)
(Note 2):
Producing oil and gas properties and equipment 6,986,831 7,097,926
Undeveloped oil and gas properties 0 4,085
Less: Accumulated depletion and depreciation (4,570,566) (4,434,603)
------------- ------------
Total Oil and Gas Properties 2,416,265 2,667,408
------------- ------------
Total Assets $2,512,716 $2,756,139
============= ============
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------------------------------------
Current Liabilities:
Accounts Payable $27,573 $23,259
------------- ------------
Partners' Capital:
General Partner 956,483 1,036,607
Limited Partner 1,528,660 1,696,273
------------- ------------
Total Partners' Capital 2,485,143 2,732,880
------------- ------------
Total Liabilities and Partners' Capital $2,512,716 $2,756,139
============= ============
The accompanying notes are part of the financial statements.
</TABLE>
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<PAGE> 3
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
(an Ohio Limited Partnership)
STATEMENTS OF NET INCOME FOR THE NINE MONTHS ENDED:
(unaudited)
<TABLE>
<CAPTION>
September 30, 1995 September 30, 1994
----------------------------------- ------------------------------------------
General Limited General Limited
Partner Partners Total Partner Partners Total
---------- ---------- --------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
- ---------
Oil and gas production $104,260 $108,516 $212,776 $141,108 $146,867 $287,975
Interest income 0 1,034 1,034 0 845 845
-------- --------- --------- -------- --------- ---------
Total Revenues 104,260 109,550 213,810 141,108 147,712 288,820
-------- --------- --------- -------- --------- ---------
Costs and Expenses:
- -------------------
Well operating expense 78,212 81,404 159,616 85,747 89,247 174,994
Depreciation of production equipment 66,247 0 66,247 59,470 0 59,470
Depletion of producing oil and 0 148,362 148,362 0 179,037 179,037
gas properties
General and administrative 3,720 3,872 7,592 4,372 4,551 8,923
Plugging and Abandoning costs 0 0 0 8,598 8,949 17,547
Loss on disposal of production 1,526 0 1,526 3,957 0 3,957
equipment
Loss on drillsite 0 1,952 1,952 0 376 376
Loss on abandonment of intangible
drilling costs 0 24,498 24,498 0 25,790 25,790
-------- --------- --------- -------- --------- ---------
Total Costs and Expenses 149,705 260,088 409,793 162,144 307,950 470,094
-------- --------- --------- -------- --------- ---------
NET (LOSS) FOR THE PERIOD ($45,445) ($150,538) ($195,983) ($21,036) ($160,238) ($181,274)
======== ========= ========= ======== ========= =========
The accompanying notes are part of the financial statements.
</TABLE>
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<PAGE> 4
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
(an Ohio Limited Partnership)
STATEMENTS OF NET INCOME FOR THE THREE MONTHS ENDED:
(unaudited)
<TABLE>
<CAPTION>
September 30, 1995 September 30, 1994
-------------------------------------------- -----------------------------------------
General Limited General Limited
Partner Partners Total Partner Partners Total
----------- -------------- ----------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
- --------
Oil and gas production $34,426 $35,832 $70,258 $47,543 $49,484 $97,027
Interest income 0 339 339 0 308 308
-------- -------------- ----------- ---------- ------------ -----------
Total Revenues 34,426 36,171 70,597 47,543 49,792 97,335
-------- -------------- ----------- ---------- ------------ -----------
Costs and Expenses:
- ------------------
Well operating expense 23,466 24,424 47,890 27,989 29,131 57,120
Depreciation of production
equipment 20,528 0 20,528 18,692 0 18,692
Depletion of producing oil
and gas properties 0 50,905 50,905 0 58,530 58,530
General and administrative 1,457 1,517 2,974 989 1,029 2,018
Loss on disposal of production
equipment 1,526 0 1,526 357 0 357
Loss on drillsite 0 1,952 1,952 0 0 0
Loss on abandonment of
intangible drilling costs 0 24,498 24,498 0 0 0
-------- --------- --------- ------- ------- --------
Total Costs and Expenses 46,977 103,296 150,273 48,027 88,690 136,717
-------- --------- --------- ------- ------- --------
NET INCOME(LOSS) FOR THE
PERIOD ($12,551) ($67,125) ($79,676) ($484) ($38,898) ($39,382)
======== ========= ========= ======= ======== ========
The accompanying notes are part of the financial statements.
</TABLE>
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<PAGE> 5
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
(an Ohio Limited Partnership)
STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED:
(unaudited)
<TABLE>
<CAPTION>
September 30, September 30,
1995 1994
------------- ------------
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Cash received from operating activities:
Oil and natural gas production $216,862 $293,344
Interest 1,034 845
------------- -----------
217,896 294,189
------------- -----------
CASH PAID FOR OPERATING ACTIVITIES:
Well operating expense 155,304 190,628
General and administrative 7,592 8,923
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162,896 199,551
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Cash flow from operating activities 55,000 94,638
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CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from sale of oil and
natural gas properties 827
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Cash flow from investing activities 827
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CASH FLOW FROM FINANCING ACTIVITIES:
Distributions to partners (43,194) (85,117)
------------- -----------
Cash flow from financing activities (43,194) (85,117)
------------- -----------
INCREASE (DECREASE) IN CASH 11,806 10,348
CASH, BEGINNING OF YEAR 40,348 30,781
------------- -----------
CASH, END OF PERIOD $52,154 $41,129
============= ===========
Production equipment distributions $8,560 $516
============= ===========
</TABLE>
The accompanying notes are part of the financial statements.
-5-
<PAGE> 6
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
(an Ohio Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30,1995
(unaudited)
<TABLE>
<CAPTION>
General Limited
Partner Partners Total
-------------- ------------ ---------
<S> <C> <C> <C>
Partners' Capital, December 31, 1994 $1,036,607 $1,696,273 $2,732,880
Net (loss) for the period (45,445) (150,538) (195,983)
Partner Distributions (34,679) (17,075) (51,754)
--------------- ---------- ---------
Partners' Capital, September 30, 1995 $956,483 $1,528,660 $2,485,143
============== ========== =========
The accompanying notes are part of the financial statements.
</TABLE>
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<PAGE> 7
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
-----------------------------------------
(an Ohio Limited Partnership)
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 - ORGANIZATION
------------
Clinton Appalachian X Limited Partnership (an Ohio limited partnership)
was organized on December 1, 1986. The Partnership was formed to drill,
develop, and produce natural gas and oil in the Appalachian Basin. The
Clinton Oil Company is the General Partner and manages all activities of
the Partnership. The General Partner provides to the partnership the
equipment, or the funds to acquire the equipment, necessary to operate
Partnership wells completed for production. Funds provided by the
limited partner subscriptions have been applied towards organizational
and offering costs, intangible drilling and development costs, and drill
site acquisition costs.
NOTE 2 - ACCOUNTING POLICIES
-------------------
The accompanying unaudited financial statements reflect the adjustments
which are, in the opinion of the General Partner, necessary for a fair
presentation of the Partnership's financial condition and results of
operations. The Partnership maintains its books and records on
the cash basis method of accounting adjusting to the accrual method for
financial statement preparation. The accompanying unaudited financial
statements are presented in accordance with the requirements of Form 10-Q
and consequently do not include all the disclosures normally made in the
Partnership's 10-K filing. Reference is made to the Partnership's annual
10-K filing for the year ended December 31, 1994 for additional
disclosures including a summary of the Partnership's accounting policies
which have not significantly changed.
Organizational Costs
--------------------
Organization costs are those which are incident to the creation of the
Partnership. The Partnership is amortizing these costs over 60 months.
Syndication Costs
-----------------
Syndication costs consist of brokerage fees, registration fees, printing
costs, accounting and legal fees, and materials related to the promoting
and selling of the Partnership offering. These costs have been treated
as a reduction of partners' capital.
Income Taxes
------------
No provision for income taxes will be reflected in the accounts of the
Partnership. Taxable income will be allocated to the individual partners
for reporting on their individual returns.
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<PAGE> 8
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
-----------------------------------------
(an Ohio Limited Partnership)
NOTES TO THE FINANCIAL STATEMENTS - Continued
NOTE 3 - PROPERTY AND EQUIPMENT
----------------------
Producing Oil and Gas Properties
--------------------------------
The financial statements reflect the capitalization of all exploration
and development costs applicable to producing oil and gas properties
including tangible and intangible drilling, development, and completion
costs. Depletion and depreciation of producing oil and gas properties
and equipment has been provided on the unit of production method or
equivalent based on the estimated productive life of each property.
Undeveloped Oil and Gas Properties
----------------------------------
Undeveloped oil and gas properties are costs incurred in the
acquisition of leases and costs to various activities related to
development. At such times as the properties are developed, forfeited,
or abandoned, the costs will be recovered or charged to operations.
NOTE 5 - TRANSACTIONS WITH GENERAL PARTNER
---------------------------------
The General Partner pays substantially all Partnership costs and expenses
as incurred. The Partnership subsequently reimburses the General Partner
for these payments. In addition, the General Partner and its affiliates
receive compensation from the Partnership for well supervision, well
operating, administrative, and other services which the General Partner
provides to the Partnership.
-8-
<PAGE> 9
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
-----------------------------------------
(an Ohio Limited Partnership)
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The General Partner believes that the usual standards of liquidity do not apply
to the Partnership because it was organized solely for the purpose of drilling,
completing, and equipping development oil and gas wells. Consequently, all of
the funds raised from the sale of Partnership interests will be expended for
these purposes.
The Partnership expects to distribute the net income from the
sale of oil and gas to limited partners quarterly. The ability of the
Partnership to make such distributions is dependent upon the amounts it has
available from sales of oil and gas net of expenses incurred by the
Partnership.
As of September 30, 1995, fifty-five of the Partnership's
original seventy wells were on-line and producing. Cash distributions made by
the Partnership were $51,754 for the nine months ended September 30, 1995
compared to $85,117 for the same period in the prior year. The decrease is due
to the normal decline curve pattern followed by the Partnership's wells
combined with reduced prices received from the sale of natural gas.
RESULTS OF OPERATIONS
- ---------------------
The Partnership's net loss was $79,676 for the quarter ended
September 30, 1995 compared to a net loss of $39,382 for the similar period in
1994. The increase was due to costs incurred on the abandonment of a well
combined with a decrease in production from the wells. Revenues were $70,597
in the 1995 quarter compared to $97,335 in the 1994 quarter. The decrease was
due to reduced production from the wells combined with lower prices for natural
gas. Partnership costs and expenses increased to $150,273 for the 1995 quarter
compared to $136,717 in the 1994 quarter.
The net loss for the nine months of 1995 was $195,983 compared to a net loss of
$181,274 in 1994. Revenues decreased to $213,810 in 1995 from $288,820 in
1994. The change was due to reduced production from the normal decline curve
pattern of the wells. Total costs and expense decreased to $409,793 in 1995
from $470,094 in the prior year. The 1995 and 1994 periods include
$27,976 and $47,670, respectively, of costs related to the abandonment of
wells. The remaining decrease in costs was due to reduced depletion expense as
a result of lower production from the wells.
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<PAGE> 10
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
(an Ohio Limited Partnership)
September 30, 1995
FORM 10-Q
Part 2 - Other Information
Items 1, 2, 3, 4, and 5 - Not Applicable.
Item 6 - Exhibits and Reports on Form 8-K.
a. Exhibits - Financial Data Schedule
b. Reports on Form 8-K - No reports on Form 8-K have been filed
by the Registrant.
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<PAGE> 11
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
-----------------------------------------
(an Ohio Limited Partnership)
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.
CLINTON APPALACHIAN X LIMITED
PARTNERSHIP
Date: By:
-------------------- -----------------------------
Donald A. Nay
Executive Vice President-Treasurer
Duly Authorized Officer of
The Clinton Oil Company,
The General Partner
Date: By:
-------------------- -----------------------------
Donald A. Nay
Chief Financial Officer of
The Clinton Oil Company,
The General Partner
-11-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<CASH> 52,154
<SECURITIES> 0
<RECEIVABLES> 44,297
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 96,451
<PP&E> 6,986,831
<DEPRECIATION> 4,570,566
<TOTAL-ASSETS> 2,512,716
<CURRENT-LIABILITIES> 27,573
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,485,143
<TOTAL-LIABILITY-AND-EQUITY> 2,512,716
<SALES> 212,776
<TOTAL-REVENUES> 213,810
<CGS> 402,201
<TOTAL-COSTS> 409,793
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (195,983)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (195,983)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
