United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 0-14249
ENEX OIL & GAS INCOME PROGRAM II - 8, L.P.
(Exact name of small business issuer as specified in its charter)
Texas 76-0163128
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 200, Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices)
Registrant's telephone number:
(713) 358-8401
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
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX OIL & GAS INCOME PROGRAM II - 8, L.P.
BALANCE SHEET
JUNE 30,
ASSETS 1995
(Unaudited)
CURRENT ASSETS:
Cash $ 5,826
Accounts receivable - oil & gas sales 21,644
Other current assets 7,870
Total current assets 35,340
OIL & GAS PROPERTIES:
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 2,380,934
Less accumulated depreciation and depletion 1,711,177
Property, net 669,757
TOTAL $ 705,097
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 13,289
Payable to general partner 34,722
Total current liabilities 48,011
NONCURRENT PAYABLE TO GENERAL PARTNER 110,022
PARTNERS' CAPITAL
Limited partners 520,787
General partner 26,277
Total partners' capital 547,064
TOTAL $ 705,097
See accompanying notes to financial statements.
I-1
ENEX OIL & GAS INCOME PROGRAM II - 8, L.P.
STATEMENTS OF OPERATIONS
(UNAUDITED) QUARTER ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1995 1994 1995 1994
REVENUES:
Oil and gas sales $ 67,239 $ 59,834 $ 137,799 $ 115,788
EXPENSES:
Depreciation and depletion 36,696 37,135 77,462 73,584
Lease operating expenses 9,384 5,836 32,537 29,298
Production taxes 2,933 2,829 6,265 5,507
General and administrative 6,541 4,518 13,278 11,606
Total expenses 55,554 50,318 129,542 119,995
INCOME (LOSS) FROM OPERATNS 11,685 9,516 8,257 (4,207)
OTHER EXPENSE:
Interest expense - - (112) -
NET INCOME (LOSS) $ 11,685 $ 9,516 $ 8,145 $ (4,207)
See accompanying notes to financial statements.
I-2
ENEX OIL AND GAS INCOME PROGRAM II - 8, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30, JUNE 30,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 8,145 $ (4,207)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities
Depreciation and depletion 77,462 73,584
(Increase) decrease in:
Accounts receivable - oil & gas sales (2,805) (4,442)
Other current assets 251 (342)
Increase (decrease) in:
Accounts payable 306 (9,586)
Payable to general partner (37,606) (16,716)
Total adjustments 37,608 42,498
Net cash provided by operating activities 45,753 38,291
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs (21,886) (9,806)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (24,267) (22,106)
NET INCREASE (DECREASE) IN CASH (400) 6,379
CASH AT BEGINNING OF YEAR 6,226 3,942
CASH AT END OF PERIOD $ 5,826 $ 10,321
See accompanying notes to financial statements.
I-3
ENEX OIL & GAS INCOME PROGRAM II - 8, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
1. The interim financial information included herein is unaudited;
however, such information reflects all adjustments (consisting solely
of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of results for the
interim periods.
2. A cash distribution was made to the limited partners of the Company in
the amount of $12,825, representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on April 30, 1995.
Item 2. Management's Discussion and Analysis or Plan of Operation.
Second Quarter 1995 Compared to Second Quarter 1994
Oil and gas sales for the second quarter decreased from $59,834 in 1994 to
$67,239 in 1995. This represents an increase of $7,405 (12%). Oil sales
increased by $7,763 (15%). A 2% increase in oil production caused sales to
increase by $995. A 13% increase in the average oil sales price caused an
additional $6,768 increase. Gas sales decreased by $358 (5%). A 20%
decrease in the average gas sales price reduced sales by $1,592. This
decrease was partially offset by an 18% increase in gas production. The
changes in the average sales prices correspond with changes in the overall
market for the sale of oil and gas. The increases in production were
primarily the result of the completion of a waterflood project on the
Schafter Lake field and the acquisition of additional interest in the
Concord acquisition in the fourth quarter of 1994.
Lease operating expenses increased from $5,836 in 1994 to $9,384 in 1995.
The increase of $3,548 (61%) is primarily due to the increases in
production, noted above, and enhanced recovery costs incurred on the
Concord acquisition in the second quarter of 1995.
Depreciation and depletion expense decreased from $37,135 in the second
quarter of 1994 to $36,696 in the second quarter of 1995. This represents
a decrease of $439 (1%). A 5% decrease in the depletion rate reduced
depreciation and depletion expense by $2,215. This decrease was partially
offset by the changes in production, noted above. The decrease in the
depletion rate is primarily the result of an upward revision of the oil
reserves at December 31, 1994, partially offset by a downward revision of
the gas reserves at December 31, 1994.
General and administrative expenses increased from $4,518 in 1994 to $6,541
in 1995. This increase of $2,023 (45%) is primarily due to more staff time
being required to manage the Company's operations.
First Six Months in 1995 Compared to First Six Months in 1994
Oil and gas sales for the first six months increased from $115,788 in 1994
to $137,799 in 1995. This represents an increase of $22,011 (19%). Oil
sales increased by $23,195 (23%). An 11% increase in oil production caused
sales to increase by $10,836. A 11% increase in the average oil sales
price caused an additional $12,359 increase. Gas sales decreased by $1,184
(7%). A 23% decrease in the average gas sales price reduced sales by
$4,459. This decrease was partially offset by a 20% increase in gas
production. The changes in the average sales prices correspond with
changes in the overall market for the sale of oil and gas. The increases
in production were primarily the result of the completion of a waterflood
project on the Schafter Lake field and the acquisition of additional
interest in the Concord acquisition in the fourth quarter of 1994.
Lease operating expenses increased from $29,298 in 1994 to $32,537 in 1995.
The increase of $3,239 (11%) is primarily due to the increases in
production, noted above, and enhanced recovery costs incurred on the
Concord acquisition in the second quarter of 1995.
Depreciation and depletion expense increased from $73,584 in the first six
months of 1994 to $77,462 in the first six months of 1995. This represents
an increase of $3,878 (5%). The changes in production, noted above,
increased depreciation and depletion expense by $9,181. This increase was
partially offset by a 6% decrease in the depletion rate. The decrease in
the depletion rate is primarily the result of an upward revision of the oil
reserves at December 31, 1994, partially offset by a downward revision of
the gas reserves.
General and administrative expenses increased from $11,606 in the first six
months of 1994 to 13,278 in the first six months of 1995. This increase of
$1,672 (14%) is primarily due to more staff time being required to manage
the Company's operations.
CAPITAL RESOURCES AND LIQUIDITY
The Company's cash flow from operations is a direct result of the amount of
net proceeds realized from the sale of oil and gas production.
Accordingly, the changes in cash flow from 1994 to 1995 are primarily due
to the changes in oil and gas sales described above. It is the general
partner's intention to distribute substantially all of the Company's
available cash flow to the Company's partners.
The Company will continue to recover its reserves and distribute to the
limited partners the net proceeds realized from the sale of oil and gas
production. Distribution amounts are subject to change if net revenues are
greater or less than expected. Nonetheless, the general partner believes
the Company will continue to have sufficient cash flow to fund operations
and to maintain a regular pattern of distributions.
As of June 30, 1995, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
PART II. OTHER INFORMATION
Item 1.Legal Proceedings.
None
Item 2.Changes in Securities.
None
Item 3.Defaults Upon Senior Securities.
Not Applicable
Item 4.Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5.Other Information.
Not Applicable
Item 6.Exhibits and Reports on Form 8-K.
(a) There are no exhibits to this report.
(b) The Company filed no reports on Form 8-K during the quarter
ended June 30, 1995.
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM II - 8, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By: /s/ R. E. Densford
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
August 11, 1995 By: /s/ James A. Klein
James A. Klein
Controller and Chief
Accounting Officer
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM II - 8, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By:
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
August 11, 1995 By:
James A. Klein
Controller and Chief
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 5,826
<SECURITIES> 0
<RECEIVABLES> 21,644
<ALLOWANCES> 0
<INVENTORY> 7,870
<CURRENT-ASSETS> 35,340
<PP&E> 2,380,934
<DEPRECIATION> (1,711,177)
<TOTAL-ASSETS> 705,097
<CURRENT-LIABILITIES> 48,011
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 547,064
<TOTAL-LIABILITY-AND-EQUITY> 705,097
<SALES> 137,799
<TOTAL-REVENUES> 137,799
<CGS> 116,264
<TOTAL-COSTS> 116,264
<OTHER-EXPENSES> 13,278
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 112
<INCOME-PRETAX> 8,145
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,145
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
