UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
/x/ Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 1996, 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 No. 2-99079A
PARKER & PARSLEY 85-A, LTD.
(Exact name of Registrant as specified in its charter)
Texas 75-2064518
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
303 West Wall, Suite 101,
Midland, Texas 79701
(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code: (915)683-4768
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
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 1 of 16 pages.
There are no exhibits.
<PAGE>
PARKER & PARSLEY 85-A, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
June 30, December 31,
1996 1995
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including
interest bearing deposits of $79,369
at June 30 and $36,828 at December 31 $ 79,544 $ 36,955
Accounts receivable - oil and gas sales 52,727 66,952
----------- -----------
Total current assets 132,271 103,907
Oil and gas properties - at cost, based
on the successful efforts accounting
method 7,379,614 8,386,246
Accumulated depletion (6,014,484) (6,965,364)
----------- -----------
Net oil and gas properties 1,365,130 1,420,882
----------- -----------
$ 1,497,401 $ 1,524,789
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 46,234 $ 42,816
Partners' capital:
Limited partners (9,613 interests) 1,436,644 1,467,142
Managing general partner 14,523 14,831
----------- -----------
1,451,167 1,481,973
----------- -----------
$ 1,497,401 $ 1,524,789
=========== ===========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
PARKER & PARSLEY 85-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1996 1995 1996 1995
---------- ---------- ---------- ----------
Revenues:
Oil and gas sales $ 149,497 $ 148,756 $ 289,203 $ 303,816
Interest income 922 1,231 1,583 1,842
Salvage income from
equipment disposals - - - 27,471
Litigation settlement 32,694 - 32,694 -
--------- --------- --------- ---------
Total revenues 183,113 149,987 323,480 333,129
Costs and expenses:
Production costs 69,832 81,582 160,977 161,718
General and adminis-
trative expenses 4,485 4,462 8,676 9,114
Depletion 26,092 60,972 55,963 104,166
Loss on sale of assets 3,730 - 3,730 -
--------- --------- --------- ---------
Total costs and
expenses 104,139 147,016 229,346 274,998
--------- --------- --------- ---------
Net income $ 78,974 $ 2,971 $ 94,134 $ 58,131
========= ========= ========= =========
Allocation of net
income:
Managing general
partner $ 789 $ 29 $ 941 $ 581
========= ========= ========= =========
Limited partners $ 78,185 $ 2,942 $ 93,193 $ 57,550
========= ========= ========= =========
Net income per limited
partnership interest $ 8.13 $ .31 $ 9.69 $ 5.99
========= ========= ========= =========
Distributions per
limited partnership
interest $ 9.37 $ 7.53 $ 12.87 $ 13.05
========= ========= ========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
PARKER & PARSLEY 85-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
----------- ----------- -----------
Balance at January 1, 1995 $ 16,159 $ 1,598,699 $ 1,614,858
Distributions (1,266) (125,448) (126,714)
Net income 581 57,550 58,131
---------- ---------- ----------
Balance at June 30, 1995 $ 15,474 $ 1,530,801 $ 1,546,275
========== ========== ==========
Balance at January 1, 1996 $ 14,831 $ 1,467,142 $ 1,481,973
Distributions (1,249) (123,691) (124,940)
Net income 941 93,193 94,134
---------- ---------- ----------
Balance at June 30, 1996 $ 14,523 $ 1,436,644 $ 1,451,167
========== ========== ==========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
PARKER & PARSLEY 85-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
June 30,
1996 1995
---------- ----------
Cash flows from operating activities:
Net income $ 94,134 $ 58,131
Adjustments to reconcile net income
to net cash provided by operating
activities:
Salvage income from equipment disposals - (27,471)
Depletion 55,963 104,166
Loss on sale of assets 3,730 -
Changes in assets and liabilities:
Decrease in accounts receivable 14,225 735
Increase in accounts payable 3,586 6,518
--------- ---------
Net cash provided by operating
activities 171,638 142,079
Cash flows from investing activities:
Additions to oil and gas properties (4,109) (10,808)
Proceeds from salvage income on
equipment disposals - 27,471
--------- ---------
Net cash provided by (used in)
investing activities (4,109) 16,663
Cash flows from financing activities:
Cash distributions to partners (124,940) (126,714)
--------- ---------
Net increase in cash and cash
equivalents 42,589 32,028
Cash and cash equivalents at beginning
of period 36,955 26,174
--------- ---------
Cash and cash equivalents at end
of period $ 79,544 $ 58,202
========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
PARKER & PARSLEY 85-A, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
(Unaudited)
NOTE 1.
Parker & Parsley 85-A, Ltd. (the "Registrant") is a limited partnership
organized in 1985 under the laws of the State of Texas.
The Registrant engages primarily in oil and gas development and production in
Texas and is not involved in any industry segment other than oil and gas.
NOTE 2.
In the opinion of management, the Registrant's unaudited financial statements as
of June 30, 1996 include all adjustments and accruals consisting only of normal
recurring accrual adjustments which are necessary for a fair presentation of the
results for the interim period. However, these interim results are not
necessarily indicative of results for a full year.
The financial statements should be read in conjunction with the financial
statements and the notes thereto contained in the Registrant's Report on Form
10-K for the year ended December 31, 1995, as filed with the Securities and
Exchange Commission, a copy of which is available upon request by writing to
Steven L. Beal, Senior Vice President, 303 West Wall, Suite 101, Midland, Texas
79701.
NOTE 3.
On May 25, 1993, a final settlement agreement was negotiated, drafted and
finally executed, ending litigation which had begun on September 5, 1989, when
the Registrant filed suit along with other parties against Dresser Industries,
Inc.; Titan Services, Inc.; BJ-Titan Services Company; BJ- Hughes Holding
Company; Hughes Tool Company; Baker Hughes Production Tools, Inc.; and Baker
Hughes Incorporated alleging that the defendants had intentionally failed to
provide the materials and services ordered and paid for by the Registrant and
other parties in connection with the fracturing and acidizing of 523 wells, and
then fraudulently concealed the shorting practice from Parker & Parsley
Development L.P. ("PPDLP"). The May 25, 1993 settlement agreement called for a
payment of $115 million in cash by the defendants, and Southmark, the
Registrant, and the other plaintiffs indemnified the defendants against the
6
<PAGE>
claims of Jack N. Price. The managing general partner received the funds,
deducted incurred legal expenses, accrued interest, determined the general
partner's portion of the funds and calculated any inter-partnership allocations.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G. "Zeke"
Lancaster in the Federal Court lawsuit, filed suit in State Court in Beaumont
against all of the plaintiff partnerships, including the Registrant and others,
alleging his entitlement to 12% of the settlement proceeds. Price's lawsuit
claim for approximately $13.8 million is predicated on a purported contract
entered into with Southmark Corporation in August 1988 in which he allegedly
binds the Registrant and the other defendants, as well as Southmark. Although
PPDLP believes the lawsuit was without merit and has vigorously defended it,
PPDLP has held in reserve approximately 12.5% of the total settlement (the
"Reserve") pending final resolution of the litigation.
A distribution of $91,000,000 was made to the working interest owners, including
the Registrant, on July 30, 1993. The limited partners received their
distribution of $330,598, or $34.39 per limited partnership interest, in
September 1993. The allocation of the lawsuit settlement amount was based on the
original verdict entered on October 26, 1990. The allocation to the working
interest owners in each well (including the Registrant) was based on a ratio of
the relative amount of damages due to overcharges for services and materials
("Materials") and damages for loss of past and future production ("Production"),
each as determined in that initial judgment. Within the Registrant, damages for
Materials were allocated between the partners based on their original sharing
percentages for costs of acquiring and/or drilling of wells. Similarly, damages
related to Production were allocated to the partners in the Registrant based on
their respective share of revenues from the subject wells.
As a condition of the purchase by Parker & Parsley Petroleum Company of Parker &
Parsley Development Company ("PPDC"), which was merged into PPDLP on January 1,
1995, from its former parent in May 1989, PPDC's interest in the lawsuit and
subsequent settlement was retained by the former parent. Consequently, all of
PPDC's share of the settlement related to its separately held interests in the
wells and its partnership interests in the sponsored partnerships (except that
portion allocable to interests acquired by PPDC after May 1989) was paid to the
former parent.
On September 20, 1995, the Beaumont trial judge entered a summary judgment
against Southmark for the $13,790,000 contingent fee sought by Price, together
with prejudgment interest, and also awarded Price an additional $5,498,525 in
attorneys' fees. On January 22, 1996, the trial judge entered an interlocutory
summary judgment against Dresser Industries and Baker Hughes for an amount to be
7
<PAGE>
determined. Pursuant to their indemnity obligations, the Registrant, Southmark,
PPDLP and other original plaintiffs vigorously protected the rights of both
Dresser and Baker Hughes. Southmark vigorously pursued its appeal of the
judgment, and posted a supersedeas bond using the Reserve as collateral. On
April 29, 1996, all of the parties, including the Registrant and Southmark,
entered into a $7.4 million settlement with Price which fully and finally
resolves all of the litigation and disputes between the parties, including the
Registrant's indemnity obligations to Dresser and Baker Hughes.
Pursuant to the settlement agreement, all of the pending lawsuits and judgments
have been dismissed, the supersedeas bond released, and the Reserve released as
collateral. The managing general partner conducted an accounting of income and
expenses among the parties, and, on June 28, 1996, made a final $9.3 million
distribution to the working interest owners, including the Registrant and its
partners, resulting in a distribution of $32,367 to the limited partners, or
$3.37 per limited partnership interest. The distribution was allocated to the
limited partners using the same methodology as the original $91 million
distribution in 1993.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (1)
Results of Operations
Six months ended June 30, 1996 compared with six months ended June 30, 1995
Revenues:
The Registrant's oil and gas revenues decreased to $289,203 from $303,816 for
the six months ended June 30, 1996 and 1995, respectively, a decrease of 5%. The
decrease in revenues resulted from a 16% decline in barrels of oil produced and
sold and a 22% decline in mcf of gas produced and sold, offset by increases in
the average prices received per barrel of oil and mcf of gas. For the six months
ended June 30, 1996, 10,518 barrels of oil were sold compared to 12,595 for the
same period in 1995, a decrease of 2,077 barrels. Of the decrease, 676 barrels,
or 5%, was attributable to the sale of four oil and gas wells during the six
months ended June 30, 1996, with the remaining decrease of 1,401 barrels, or
11%, due to the decline characteristics of the Registrant's oil and gas
properties. For the six months ended June 30, 1996, 35,481 mcf of gas were sold
compared to 45,536 for the same period in 1995, a decrease of 10,055 mcf. Of the
decrease, 973 mcf, or 2%, was attributable to the sale of four oil and gas wells
during the six months ended June 30, 1996, with the remaining decrease of 9,082
8
<PAGE>
mcf, or 20%, due to the decline characteristics of the Registrant's oil and gas
properties. Because of these characteristics, management expects a certain
amount of decline in production to continue in the future until the Registrant's
economically recoverable reserves are fully depleted.
The average price received per barrel of oil increased $2.87, or 16%, from
$17.56 for the six months ended June 30, 1995 to $20.43 for the same period in
1996 while the average price received per mcf of gas increased 15% from $1.82
during the six months ended June 30, 1995 to $2.10 in 1996. The market price for
oil and gas has been extremely volatile in the past decade, and management
expects a certain amount of volatility in the foreseeable future. The Registrant
may therefore sell its future oil and gas production at average prices lower or
higher than that received during the six months ended June 30, 1996.
Salvage income of $27,471 received from equipment disposals for the six months
ended June 30, 1995 consisted of equipment credits received on one fully
depleted well. There were no equipment credits received for the same period in
1996.
Costs and Expenses:
Total costs and expenses decreased to $229,346 for the six months ended June 30,
1996 as compared to $274,998 for the same period in 1995, a decrease of $45,652,
or 17%. This decrease was due to declines in production costs, general and
administrative expenses ("G&A") and depletion, offset by an increase in loss on
sale of assets.
Production costs were $160,977 for the six months ended June 30, 1996 and
$161,718 for the same period in 1995 resulting in a $741 decrease. The decrease
was primarily due to lower ad valorem taxes and production taxes, offset by an
increase in well repair and maintenance costs incurred in an effort to stimulate
well production.
G&A's components are independent accounting and engineering fees, computer
services, postage and managing general partner personnel costs. During this
period, G&A decreased, in aggregate, 5% from $9,114 for the six months ended
June 30, 1995 to $8,676 for the same period in 1996. The Partnership agreement
limits G&A to 3% of gross oil and gas revenues.
Depletion was $55,963 for the six months ended June 30, 1996 compared to
$104,166 for the same period in 1995. This represented a decrease in depletion
of $48,203, or 46%. Of the decrease, $22,152, or 21%, was attributable to the
sale of four oil and gas wells during the six months ended June 30, 1996, with
the remaining decrease of $26,051, or 25%, due to the decline characteristics of
9
<PAGE>
the Registrant's oil and gas properties. Depletion was calculated on a
property-by-property basis utilizing the unit-of-production method based upon
the dominant mineral produced, generally oil. Oil production decreased 2,077
barrels for the six months ended June 30, 1996 from the same period in 1995,
while oil reserves of barrels were revised upward by 81,860 barrels, or 41%,
resulting in a lower unit cost per barrel of production.
A loss of $3,730 on the sale of assets was recognized during the six months
ended June 30, 1996. This loss resulted from the sale of four fully depleted oil
and gas wells and four saltwater disposal wells and the write-off of associated
capitalized well costs of $3,769, offset by a $39 receivable due from the sale
for post-closing adjustments.
On May 25, 1993, a final settlement agreement was negotiated, drafted and
finally executed, ending litigation which had begun on September 5, 1989, when
the Registrant filed suit along with other parties against Dresser Industries,
Inc.; Titan Services, Inc.; BJ-Titan Services Company; BJ- Hughes Holding
Company; Hughes Tool Company; Baker Hughes Production Tools, Inc.; and Baker
Hughes Incorporated alleging that the defendants had intentionally failed to
provide the materials and services ordered and paid for by the Registrant and
other parties in connection with the fracturing and acidizing of 523 wells, and
then fraudulently concealed the shorting practice from PPDLP. The May 25, 1993
settlement agreement called for a payment of $115 million in cash by the
defendants, and Southmark, the Registrant, and the other plaintiffs indemnified
the defendants against the claims of Jack N. Price. The managing general partner
received the funds, deducted incurred legal expenses, accrued interest,
determined the general partner's portion of the funds and calculated any
inter-partnership allocations.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G. "Zeke"
Lancaster in the Federal Court lawsuit, filed suit in State Court in Beaumont
against all of the plaintiff partnerships, including the Registrant and others,
alleging his entitlement to 12% of the settlement proceeds. Price's lawsuit
claim for approximately $13.8 million is predicated on a purported contract
entered into with Southmark Corporation in August 1988 in which he allegedly
binds the Registrant and the other defendants, as well as Southmark. Although
PPDLP believes the lawsuit was without merit and has vigorously defended it,
PPDLP has held in reserve approximately 12.5% of the total settlement (the
"Reserve") pending final resolution of the litigation.
A distribution of $91,000,000 was made to the working interest owners, including
the Registrant, on July 30, 1993. The limited partners received their
distribution of $330,598, or $34.39 per limited partnership interest, in
10
<PAGE>
September 1993. The allocation of the lawsuit settlement amount was based on the
original verdict entered on October 26, 1990. The allocation to the working
interest owners in each well (including the Registrant) was based on a ratio of
the relative amount of damages due to overcharges for services and materials
("Materials") and damages for loss of past and future production ("Production"),
each as determined in that initial judgment. Within the Registrant, damages for
Materials were allocated between the partners based on their original sharing
percentages for costs of acquiring and/or drilling of wells. Similarly, damages
related to Production were allocated to the partners in the Registrant based on
their respective share of revenues from the subject wells.
As a condition of the purchase by Parker & Parsley Petroleum Company of PPDC,
which was merged into PPDLP on January 1, 1995, from its former parent in May
1989, PPDC's interest in the lawsuit and subsequent settlement was retained by
the former parent. Consequently, all of PPDC's share of the settlement related
to its separately held interests in the wells and its partnership interests in
the sponsored partnerships (except that portion allocable to interests acquired
by PPDC after May 1989) was paid to the former parent.
On September 20, 1995, the Beaumont trial judge entered a summary judgment
against Southmark for the $13,790,000 contingent fee sought by Price, together
with prejudgment interest, and also awarded Price an additional $5,498,525 in
attorneys' fees. On January 22, 1996, the trial judge entered an interlocutory
summary judgment against Dresser Industries and Baker Hughes for an amount to be
determined. Pursuant to their indemnity obligations, the Registrant, Southmark,
PPDLP and other original plaintiffs vigorously protected the rights of both
Dresser and Baker Hughes. Southmark vigorously pursued its appeal of the
judgment, and posted a supersedeas bond using the Reserve as collateral. On
April 29, 1996, all of the parties, including the Registrant and Southmark,
entered into a $7.4 million settlement with Price which fully and finally
resolves all of the litigation and disputes between the parties, including the
Registrant's indemnity obligations to Dresser and Baker Hughes.
Pursuant to the settlement agreement, all of the pending lawsuits and judgments
have been dismissed, the supersedeas bond released, and the Reserve released as
collateral. The managing general partner conducted an accounting of income and
expenses among the parties, and, on June 28, 1996, made a final $9.3 million
distribution to the working interest owners, including the Registrant and its
partners, resulting in a distribution of $32,367 to the limited partners, or
$3.37 per limited partnership interest. The distribution was allocated to the
limited partners using the same methodology as the original $91 million
distribution in 1993.
11
<PAGE>
Three months ended June 30, 1996 compared with three months ended June 30, 1995
Revenues:
The Registrant's oil and gas revenues increased to $149,497 from $148,756 for
the three months ended June 30, 1996 and 1995, respectively, an increase of
$741. The increase in revenues resulted from increases in the average prices
received per barrel of oil and mcf of gas, offset by an 18% decline in barrels
of oil produced and sold and a 27% decline in mcf of gas produced and sold. For
the three months ended June 30, 1996, 4,988 barrels of oil were sold compared to
6,097 for the same period in 1995, a decrease of 1,109 barrels. Of the decrease,
260 barrels, or 4%, was attributable to the sale of four oil and gas wells
during the three months ended June 30, 1996, with the remaining decrease of 849
barrels, or 14%, due to the decline characteristics of the Registrant's oil and
gas properties. For the three months ended June 30, 1996, 17,603 mcf of gas were
sold compared to 24,104 for the same period in 1995, a decrease of 6,501 mcf of
gas. Of the decrease, 504 mcf, or 2%, was attributable to the sale of four oil
and gas wells during the three months ended June 30, 1996, with the remaining
decrease of 5,997 mcf, or 25%, due to the decline characteristics of the
Registrant's oil and gas properties.
The average price received per barrel of oil increased $4.05, or 22%, from
$18.01 for the three months ended June 30, 1995 to $22.06 for the same period in
1996 while the average price received per mcf of gas increased 38% from $1.62
during the three months ended June 30, 1995 to $2.24 for the same period in
1996.
Costs and Expenses:
Total costs and expenses decreased to $104,139 for the three months ended June
30, 1996 as compared to $147,016 for the same period in 1995, a decrease of
$42,877, or 29%. This decrease was due to declines in production costs and
depletion, offset by an increase in G&A and loss on sale of assets.
Production costs were $69,832 for the three months ended June 30, 1996 and
$81,582 for the same period in 1995 resulting in a $11,750 decrease, or 14%. The
decrease was primarily due to less well repair and maintenance costs and lower
ad valorem taxes.
12
<PAGE>
G&A's components are independent accounting and engineering fees, computer
services, postage and managing general partner personnel costs. During this
period, G&A increased, in aggregate, from $4,462 for the three months ended June
30, 1995 to $4,485 for the same period in 1996.
Depletion was $26,092 for the three months ended June 30, 1996 compared to
$60,972 for the same period in 1995. This represented a decrease in depletion of
$34,880, or 57%. Of the decrease, $22,152, or 36%, was attributable to the sale
of four oil and gas wells during the three months ended June 30, 1996, with the
remaining decrease of $12,728, or 21%, due to the decline characteristics of the
Registrant's oil and gas properties. Depletion was calculated on a
property-by-property basis utilizing the unit-of-production method based upon
the dominant mineral produced, generally oil. Oil production decreased 1,109
barrels for the three months ended June 30, 1996 from the same period in 1995.
A loss of $3,730 on the sale of assets was recognized during the three months
ended June 30, 1996. This loss resulted from the sale of four fully depleted oil
and gas wells and four saltwater disposal wells and the write-off of associated
capitalized well costs of $3,769, offset by a $39 receivable due from the sale
for post-closing adjustments.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased during the six months ended
June 30, 1996 $29,559 from the same period ended June 30, 1995. This increase
was primarily due to the receipt of proceeds from the litigation settlement as
discussed in Note 3.
Net Cash Provided by (Used in) Investing Activities
The Registrant's investing activities during the six months ended June 30, 1996
and 1995 included expenditures related to equipment replacement on various oil
and gas properties.
Proceeds from salvage income of $27,471 were received during the six months
ended June 30, 1995, resulting from equipment credits received on one fully
depleted well.
Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1996 to cover
distributions to the partners of $124,940 of which $123,691 was distributed to
the limited partners and $1,249 to the managing general partner. For the same
13
<PAGE>
period ended June 30, 1995, cash was sufficient for distributions to the
partners of $126,714 of which $125,448 was distributed to the limited partners
and $1,266 to the managing general partner.
Cash distributions to the partners of $124,940 for the six months ended June 30,
1996 included $32,367 to the limited partners and $327 to the managing general
partner, resulting from proceeds received in the litigation settlement as
discussed in Note 3.
It is expected that future net cash provided by operating activities will be
sufficient for any capital expenditures and any distributions. As the production
from the properties declines, distributions are also expected to decrease.
- ---------------
(1) "Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations" contains forward looking statements that involve
risks and uncertainties. Accordingly, no assurances can be given that the
actual events and results will not be materially different than the
anticipated results described in the forward looking statements.
14
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Registrant is party to material litigation which is described in Note 3 of
Notes to Financial Statements above.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - none
(b) Reports on Form 8-K - none
15
<PAGE>
PARKER & PARSLEY 85-A, LTD.
(A Texas Limited Partnership)
S I G N A T U R E S
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.
PARKER & PARSLEY 85-A, LTD.
By: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: August 9, 1996 By: /s/ Steven L. Beal
---------------------------------------
Steven L. Beal, Senior Vice
President and Chief Financial
Officer of PPUSA
16
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000791230
<NAME> 85A.TXT
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 79,544
<SECURITIES> 0
<RECEIVABLES> 52,727
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 132,271
<PP&E> 7,379,614
<DEPRECIATION> 6,014,484
<TOTAL-ASSETS> 1,497,401
<CURRENT-LIABILITIES> 46,234
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,451,167
<TOTAL-LIABILITY-AND-EQUITY> 1,497,401
<SALES> 289,203
<TOTAL-REVENUES> 323,480
<CGS> 0
<TOTAL-COSTS> 229,346
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 94,134
<INCOME-TAX> 0
<INCOME-CONTINUING> 94,134
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 94,134
<EPS-PRIMARY> 9.69
<EPS-DILUTED> 0
</TABLE>
