United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 0-15431
ENEX OIL & GAS INCOME PROGRAM II - 9, L.P.
(Exact name of small business issuer as specified in its charter)
Texas 76-0163125
(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
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 - 9, L.P.
BALANCE SHEET
JUNE 30,
ASSETS 1995
(Unaudited)
CURRENT ASSETS:
Cash $ 1,981
Accounts receivable - oil & gas sales 12,901
Other current assets 4,689
Total current assets 19,571
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 1,497,216
Less accumulated depreciation and depletion 1,082,233
Property, net 414,983
TOTAL $ 434,554
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 7,914
Payable to general partner 23,985
Total current liabilities 31,899
NONCURRENT PAYABLE TO GENERAL PARTNER 123,046
PARTNERS'CAPITAL:
Limited partners 251,540
General partner 28,069
Total partners' capital 279,609
TOTAL $ 434,554
See accompanying notes to financial statements.
I-1
ENEX OIL & GAS INCOME PROGRAM II - 9, 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 $ 40,075 $ 35,650 $ 82,130 $ 68,988
EXPENSES:
Depreciation and depletion 22,353 22,656 47,200 44,905
Lease operating expenses 5,592 3,476 19,393 17,456
Production taxes 1,748 1,685 3,734 3,280
General and administrative 5,129 2,870 9,569 7,742
Total expenses 34,822 30,687 79,896 73,383
INCOME (LOSS) FROM OPERATIONS 5,253 4,963 2,234 (4,395)
OTHER EXPENSE:
Interest expense - - (50) -
NET INCOME (LOSS) $ 5,253 $ 4,963 $ 2,184 $ (4,395)
See accompanying notes to financial statements.
I-2
ENEX OIL AND GAS INCOME PROGRAM II - 9, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30, JUNE 30,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 2,184 $ (4,395)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and depletion 47,200 44,905
(Increase) in:
Accounts receivable - oil & gas sales (1,672) (2,648)
Other current assets (325) (204)
(Decrease) in:
Accounts payable (2,238) (8,839)
Payable to general partner (20,570) (6,018)
Total adjustments 22,395 27,196
Net cash provided by operating activities 24,579 22,801
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs (13,043) (5,842)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (11,652) (15,580)
NET INCREASE (DECREASE) IN CASH (116) 1,379
CASH AT BEGINNING OF YEAR 2,097 6,714
CASH AT END OF PERIOD $ 1,981 $ 8,093
See accompanying notes to financial statements.
I-3
ENEX OIL & GAS INCOME PROGRAM II - 9, 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 $6,339, 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 increased from $35,650 in 1994 to
$40,075 in 1995. This represents an increase of $4,425 (12%). Oil sales
increased by $4,636 (15%). A 2% increase in oil production caused sales to
increase by $602. A 13% increase in the average oil sales price caused an
additional $4,034 increase. Gas sales decreased by $211 (5%). A 20%
decrease in the average gas sales price reduced sales by $949. This
decrease was partially offset by a 19% 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 $3,476 in 1994 to $5,592 in 1995.
The increase of $2,116 (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 $22,656 in the second
quarter of 1994 to $22,353 in the second quarter of 1995. This represents
a decrease of $303 (1%). A 6% decrease in the depletion rate reduced
depreciation and depletion expense by $1,396. 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 $2,870 in 1994 to $5,129
in 1995. This increase of $2,259 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 $68,988 in 1994
to $82,130 in 1995. This represents an increase of $13,142 (19%). Oil
sales increased by $13,844 (23%). An 11% increase in oil production caused
sales to increase by $6,478. An 11% increase in the average oil sales
price caused an additional $7,366 increase. Gas sales decreased by $702
(7%). A 23% decrease in the average gas sales price reduced sales by
$2,658. 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 $17,456 in 1994 to $19,393 in 1995.
The increase of $1,937 (11%) is primarily due to the changes in production,
noted above, and enhanced recovery costs incurred on the Concord
acquisition in 1995.
Depreciation and depletion expense increased from $44,905 in the first six
months of 1994 to $47,200 in the first six months of 1995. This represents
an increase of $2,295 (5%). The changes in production, noted above,
increased depreciation and depletion expense by $5,620. This increase was
partially offset by a 7% 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 at December 31, 1994.
General and administrative expenses increased from $7,742 in 1994 to $9,569
in 1995. This increase of $1,827 (24%) 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 - 9, 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 - 9, 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> 1,981
<SECURITIES> 0
<RECEIVABLES> 12,901
<ALLOWANCES> 0
<INVENTORY> 4,689
<CURRENT-ASSETS> 19,571
<PP&E> 1,497,216
<DEPRECIATION> (1,082,233)
<TOTAL-ASSETS> 434,554
<CURRENT-LIABILITIES> 31,899
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 279,609
<TOTAL-LIABILITY-AND-EQUITY> 434,554
<SALES> 82,130
<TOTAL-REVENUES> 82,130
<CGS> 70,327
<TOTAL-COSTS> 70,327
<OTHER-EXPENSES> 9,569
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 50
<INCOME-PRETAX> 2,184
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,184
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
