<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 June 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
incorporation or organization Identification No.)
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
---------- ----------
<PAGE> 2
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
(an Ohio Limited Partnership)
BALANCE SHEETS
<TABLE>
<CAPTION>
(Unaudited)
ASSETS June 30, December 31,
----------------------------------------------------------- 1995 1994
----------- ------------
<S> <C> <C>
Current Assets:
Cash $48,793 $40,348
Production Receivable 45,219 48,383
----------- ------------
Total Current Assets 94,012 88,731
----------- ------------
Oil and Gas Properties, at cost (successful efforts method)
(Note 2):
Producing oil and gas properties and equipment 7,102,011 7,097,926
Undeveloped oil and gas properties 0 4,085
Less: Accumulated depletion and depreciation (4,577,777) (4,434,603)
----------- ------------
Total Oil and Gas Properties 2,524,234 2,667,408
----------- ------------
Total Assets $2,618,246 $2,756,139
=========== ============
LIABILITIES AND PARTNERS' CAPITAL
-----------------------------------------------------------
Current Liabilities:
Accounts Payable $27,427 $23,259
----------- ------------
Partners' Capital:
General Partner 987,509 1,036,607
Limited Partner 1,603,310 1,696,273
----------- ------------
Total Partners' Capital 2,590,819 2,732,880
----------- ------------
Total Liabilities and Partners' Capital $2,618,246 $2,756,139
=========== ============
</TABLE>
The accompanying notes are part of the financial statements.
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<PAGE> 3
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
(an Ohio Limited Partnership)
STATEMENTS OF NET INCOME FOR THE SIX MONTHS ENDED:
(unaudited)
<TABLE>
<CAPTION>
JUNE 30, 1995 JUNE 30, 1994
---------------------------------- -------------------------------------
General Limited General Limited
Partner Partners Total Partner Partners Total
-------- --------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
---------
Oil and gas production $69,834 $72,684 $142,518 $93,565 $97,383 $190,948
Interest income 0 695 695 0 537 537
-------- -------- --------- -------- --------- ---------
Total Revenues 69,834 73,379 143,213 93,565 97,920 191,485
-------- -------- --------- -------- --------- ---------
COSTS AND EXPENSES:
-------------------
Well operating expense 54,746 56,980 111,726 57,758 60,116 117,874
Depreciation of production equipment 45,719 0 45,719 40,778 40,778
Depletion of producing oil and gas properties 0 97,457 97,457 120,507 120,507
General and administrative 2,263 2,355 4,618 3,383 3,522 6,905
Plugging and Abandoning costs 0 0 0 8,598 8,949 17,547
Loss on disposal of production equipment 0 0 0 3,600 3,600
Loss on drillsite 0 0 0 376 376
Loss on abandonment of intangible drilling costs 0 0 0 25,790 25,790
-------- -------- --------- -------- --------- ---------
Total Costs and Expenses 102,728 156,792 259,520 114,117 219,260 333,377
-------- -------- --------- -------- --------- ---------
NET (LOSS) FOR THE PERIOD ($32,894) ($83,413) ($116,307) ($20,552) ($121,340) ($141,892)
======== ======== ========= ======== ========= =========
</TABLE>
The accompanying notes are part of the financial statements.
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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>
JUNE 30, 1995 JUNE 30, 1994
---------------------------------- -----------------------------------
General Limited General Limited
Partner Partners Total Partner Partners Total
-------- --------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
---------
Oil and gas production $33,356 $34,717 $68,073 $47,300 $49,229 $96,529
Interest income 0 361 361 0 280 280
-------- -------- -------- ------- ------- --------
Total Revenues 33,356 35,078 68,434 47,300 49,509 96,809
-------- -------- -------- ------- ------- --------
COSTS AND EXPENSES:
-------------------
Well operating expense 26,337 27,411 53,748 26,271 27,344 53,615
Depreciation of production equipment 23,434 0 23,434 18,773 0 18,773
Depletion of producing oil and gas properties 0 48,458 48,458 0 58,254 58,254
General and administrative 1,286 1,339 2,625 1,490 1,551 3,041
Plugging and Abandoning costs 0 0 0 1,056 1,099 2,155
Loss on disposal of production equipment 0 0 0 0 0 0
Loss on drillsite 0 0 0 0 0 0
Loss on abandonment of intangible drilling costs 0 0 0 0 0 0
-------- -------- -------- ------- ------- --------
Total Costs and Expenses 51,057 77,208 128,265 47,590 88,248 135,838
-------- -------- -------- ------- ------- --------
NET (LOSS) FOR THE PERIOD ($17,701) ($42,130) ($59,831) ($290) ($38,739) ($39,029)
======== ======== ======== ======= ======== ========
</TABLE>
The accompanying notes are part of the financial statements.
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<PAGE> 5
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
(an Ohio Limited Partnership)
STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED:
(unaudited)
<TABLE>
<CAPTION>
June 30, June 30,
1995 1994
-------- --------
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Cash received from operating activities:
Oil and natural gas production $145,682 $198,171
Interest 695 537
-------- --------
146,377 198,708
-------- --------
CASH PAID FOR OPERATING ACTIVITIES:
Well operating expense 107,560 134,386
General and administrative 4,618 6,905
-------- --------
112,178 141,291
-------- --------
Cash flow from operating activities 34,199 57,417
-------- --------
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from sale of oil and
natural gas properties 1,700
-------- --------
Cash flow from investing activities 1,700
-------- --------
CASH FLOW FROM FINANCING ACTIVITIES:
Distributions to partners (25,754) (51,213)
-------- --------
Cash flow from financing activities (25,754) (51,213)
-------- --------
INCREASE (DECREASE) IN CASH 8,445 7,904
CASH, BEGINNING OF YEAR 40,348 30,781
-------- --------
CASH, END OF PERIOD $48,793 $38,685
======== ========
</TABLE>
The accompanying notes are part of the financial statements.
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<PAGE> 6
CLINTON APPALACHIAN X LIMITED PARTNERSHIP
(an Ohio Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
FOR THE SIX MONTHS ENDED JUNE 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 (32,894) (83,413) (116,307)
Partner Distributions (16,204) (9,550) (25,754)
---------- ---------- ----------
Partners' Capital, June 30, 1995 $987,509 $1,603,310 $2,590,819
========== ========== ==========
</TABLE>
The accompanying notes are part of the financial statements.
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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 4 - 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.
-7-
<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 June 30, 1995, fifty-six of the Partnership's original seventy wells were
on-line and producing. Distributions made by the Partnership were $25,754 for
the six months ended June 30, 1995 compared to $51,213 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 $59,831 for the quarter ended June 30, 1995
compared to a net loss of $39,029 for the similar period in 1994. The decrease
was due to lower oil and gas production revenues. Revenues were $68,073 in the
1995 quarter compared to $96,529 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 decreased slightly to $128,265 for the 1995
quarter compared to $135,838 in the 1994 quarter due to reduced depletion
expense.
The net loss for the first half of 1995 was $116,307 compared to a net loss of
$141,892 in 1994. Revenues decreased to $143,213 in 1995 from $191,485 for the
first half of 1994. The change was due to reduced production from the normal
decline curve pattern of the wells. Total costs and expense decreased to
$259,520 in 1995 from $333,377 in the prior year. The 1994 period included
$29,766 of costs related to the abandonment of a well. 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)
June 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 - None.
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
-10-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 48,793
<SECURITIES> 0
<RECEIVABLES> 45,219
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 94,012
<PP&E> 7,102,011
<DEPRECIATION> 4,577,777
<TOTAL-ASSETS> 2,618,246
<CURRENT-LIABILITIES> 27,427
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,590,819
<TOTAL-LIABILITY-AND-EQUITY> 2,618,246
<SALES> 142,518
<TOTAL-REVENUES> 143,213
<CGS> 254,902
<TOTAL-COSTS> 259,520
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (116,307)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (116,307)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
