FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[ 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 33-1875-01
SWIFT ENERGY INCOME PARTNERS 1986-A, LTD.
(Exact name of registrant as specified in its charter)
Texas 76-0185864
(State or other (I.R.S. Employer Identification No.)
jurisdiction of organization)
16825 Northchase Drive, Suite 400
Houston, Texas 77060
(Address of principal executive offices)
(Zip Code)
(713)874-2700
(Registrant's telephone number, including area code)
None
(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>
SWIFT ENERGY INCOME PARTNERS 1986-A, LTD.
INDEX
PART I. FINANCIAL INFORMATION PAGE
ITEM 1. Financial Statements
Balance Sheets
- June 30, 1995 and December 31, 1994 3
Statements of Operations
- Three month and six month periods ended
June 30, 1995 and 1994 4
Statements of Cash Flows
- Six month periods ended June 30, 1995
and 1994 5
Notes to Financial Statements 6
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
PART II. OTHER INFORMATION 9
SIGNATURES 10
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-A, LTD.
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
______________ _____________
(Unaudited)
<S> <C> <C>
ASSETS:
Current Assets:
Cash and cash equivalents $ 1,441 $ 1,415
Oil and gas sales receivable 25,236 37,947
---------- ----------
Total Current Assets 26,677 39,362
---------- ----------
Oil and Gas Properties, using full cost
accounting 3,653,527 3,653,274
Less-Accumulated depreciation, depletion
and amortization (3,473,613) (3,403,088)
----------- -----------
179,914 250,186
---------- ----------
$ 206,591 $ 289,548
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL:
Current Liabilities:
Accounts payable and accrued liabilities $ 93,314 $ 121,183
----------- ----------
Deferred Revenues 4,423 4,426
Partners' Capital 108,854 163,939
----------- ----------
$ 206,591 $ 289,548
=========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-A, LTD.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
_________________________ ___________________________
1995 1994 1995 1994
________ ________ _________ _________
<S> <C> <C> <C> <C>
REVENUES:
Oil and gas sales $ 27,120 $ 34,974 $ 60,876 $ 186,045
Interest income 20 10 27 14
Other -- 13 -- 15
__________ __________ __________ _________
27,140 34,997 60,903 186,074
__________ __________ __________ _________
COSTS AND EXPENSES:
Lease operating 8,021 5,908 17,531 12,713
Production taxes 1,884 177 4,541 8,104
Depreciation, depletion
and amortization -
Normal provision 14,182 20,450 37,109 120,574
Additional provision -- 76,408 33,416 106,512
General and administrative 6,290 8,468 9,449 12,199
Interest expense 2,510 -- 2,510 --
---------- ---------- ---------- ---------
32,887 111,411 104,556 260,102
---------- ---------- ---------- ---------
NET INCOME (LOSS) $ (5,747) $ (76,414) $ (43,653) $(74,028)
========== ========== ========== =========
Limited Partners' net income (loss)
per unit $ (1.52) $ (20.24) $ (11.56) $(19.60)
========== ========== ========== =========
</TABLE>
See accompanying note to financial statements.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-A, LTD.
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
__________________________
1995 1994
_______ _______
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Income (loss) $ (43,653) $ (74,028)
Adjustments to reconcile income (loss) to
net cash provided by operations:
Depreciation, depletion and amortization 70,525 227,086
Deferred revenues (3) (680)
Change in assets and liabilities:
(Increase) decrease in oil and gas sales receivable 12,711 84,333
Increase (decrease) in accounts payable
and accrued liabilities (27,869) (184,396)
--------------- ---------------
Net cash provided by (used in) operating activities 11,711 52,315
--------------- ---------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties (253) (2,078)
Proceeds from sales of oil and gas properties -- 2,383
--------------- ---------------
Net cash provided by (used in) investing activities (253) 305
--------------- ---------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions to partners (11,432) (52,606)
--------------- ---------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 26 14
--------------- ---------------
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,415 1,363
--------------- ---------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,441 $ 1,377
=============== ===============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-A, LTD.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(1) General Information -
The financial statements included herein have been
prepared by the Partnership and are unaudited except for the
balance sheet at December 31, 1994 which has been taken from the
audited financial statements at that date. The financial
statements reflect adjustments, all of which were of a normal
recurring nature, which are, in the opinion of the managing general
partner, necessary for a fair presentation. Certain information
and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting
principles have been omitted pursuant to the rules and regulations
of the Securities and Exchange Commission ("SEC"). The Partnership
believes adequate disclosure is provided by the information
presented. The financial statements should be read in conjunction
with the audited financial statements and the notes included in the
latest Form 10-K.
(2) Deferred Revenues -
Deferred Revenues represent a gas imbalance liability
assumed as part of property acquisitions. The imbalance is
accounted for on the entitlements method, whereby the Partnership
records its share of revenue, based on its entitled amount. Any
amounts over or under the entitled amount are recorded as an
increase or decrease to deferred revenues.
(3) Concentrations of Credit Risk -
The Partnership extends credit to various companies in
the oil and gas industry which results in a concentration of credit
risk. This concentration of credit risk may be affected by changes
in economic or other conditions and may accordingly impact the
Partnership's overall credit risk. However, the Managing General
Partner believes that the risk is mitigated by the size,
reputation, and nature of the companies to which the Partnership
extends credit. In addition, the partnership generally does not
require collateral or other security to support customer
receivables.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-A, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
GENERAL
The Partnership was formed for the purpose of investing in
producing oil and gas properties located within the continental
United States. In order to accomplish this, the Partnership goes
through two distinct yet overlapping phases with respect to its
liquidity and results of operations. When the Partnership is
formed, it commences its "acquisition" phase, with all funds placed
in short-term investments until required for such property
acquisitions. The interest earned on these pre-acquisition
investments becomes the primary cash flow source for initial
partner distributions. As the Partnership acquires producing
properties, net cash from operations becomes available for
distribution, along with the investment income. After partnership
funds have been expended on producing oil and gas properties, the
Partnership enters its "operations" phase. During this phase, oil
and gas sales generate substantially all revenues, and
distributions to partners reflect those revenues less all
associated partnership expenses. The Partnership may also derive
proceeds from the sale of acquired oil and gas properties, when the
sale of such properties is economically appropriate or preferable
to continued operation.
LIQUIDITY AND CAPITAL RESOURCES
The Partnership has completed the acquisition of producing oil
and gas properties, expending all of limited partners' net
commitments available for property acquisitions.
The Partnership does not allow for additional assessments from
the partners to fund capital requirements. However, funds are
available from partnership revenues, borrowings or proceeds from
the sale of partnership property. The Managing General Partners
believes that the funds currently available to the partnership will
be adequate to meet any anticipated capital requirements.
RESULTS OF OPERATIONS
The following analysis explains changes in the revenue and
expense categories for the quarter ended June 30, 1995 (current
quarter) when compared to the quarter ended June 30, 1994
(corresponding quarter), and for the six months ended June 30, 1995
(current period), when compared to the six months ended June 30,
1994 (corresponding period).
Three Months Ended June 30, 1995 and 1994
Oil and gas sales declined $7,854 or 22 percent in the current
quarter of 1995 when compared to the corresponding quarter in 1994,
primarily due to decreased gas prices. A decline in gas prices of
43 percent or $1.12/MCF had a significant impact on partnership
performance. Also, current quarter gas production declined a
slight 1 percent when compared to second quarter 1994 production
volumes.
<PAGE>
Associated depreciation expense decreased 31 percent or
$6,268.
The Partnership recorded an additional provision in
depreciation, depletion and amortization in the second quarter of
1994 for $76,408 when the present value, discounted at ten percent,
of estimated future net revenues from oil and gas properties, using
the guidelines of the Securities and Exchange Commission, was below
the fair market value originally paid for oil and gas properties.
The additional provision results from the Managing General
Partner's determination that the fair market value paid for
properties may or may not coincide with reserve valuations
determined according to guidelines of the Securities and Exchange
Commission.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-A, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Six Months Ended June 30, 1995 and 1994
Oil and gas sales decreased $125,169 or 67 percent in the
first six months of 1995 over the corresponding period in 1994. A
decline in the current period gas prices of 43 percent or $1.01/MCF
had a significant impact on partnership performance. Also, current
period gas and oil production declined 57 percent and 16 percent,
respectively, when compared to the corresponding period in 1994,
further contributing to decreased income. Increased oil prices of
36 percent or $4.39/BBL partially offset the revenue declines.
The decrease in gas production due to an accelerated
production decline on the Gautreaux #1 well, which was recompleted
in 1993, and production curtailments due to declining prices
contributed to the decreased revenues.
Associated depreciation expense decreased 70 percent or
$83,465.
The Partnership recorded an additional provision in
depreciation, depletion and amortization in the first six months of
1995 and 1994 for $33,416 and $106,512, respectively, when the
present value, discounted at ten percent, of estimated future net
revenues from oil and gas properties, using the guidelines of the
Securities and Exchange Commission, was below the fair market value
originally paid for oil and gas properties. The additional
provision results from the Managing General Partner's determination
that the fair market value paid for properties may or may not
coincide with reserve valuations determined according to guidelines
of the Securities and Exchange Commission.
During 1995, partnership revenues and costs will be shared
between the limited partners and general partners in a 90:10 ratio.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-A, LTD.
PART II - OTHER INFORMATION
ITEM 5. OTHER INFORMATION
-NONE-
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
SWIFT ENERGY INCOME
PARTNERS 1986-A, LTD.
(Registrant)
By: SWIFT ENERGY COMPANY
Managing General Partner
Date: August 11, 1995 By: /s/ John R. Alden
--------------- --------------------------------
John R. Alden
Senior Vice President, Secretary
and Principal Financial Officer
Date: August 11, 1995 By: /s/ Alton D. Heckaman, Jr.
--------------- --------------------------------
Alton D. Heckaman, Jr.
Vice President, Controller
and Principal Accounting Officer
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
SWIFT ENERGY INCOME
PARTNERS 1986-A, LTD.
(Registrant)
By: SWIFT ENERGY COMPANY
Managing General Partner
Date: August 11, 1995 By:
----------------------------
John R. Alden
Senior Vice President, Secretary
and Principal Financial Officer
Date: August 11, 1995 By:
----------------------------
Alton D. Heckaman, Jr.
Vice President, Controller
and Principal Accounting Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 1,441
<SECURITIES> 0
<RECEIVABLES> 25,236
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 26,677
<PP&E> 3,653,527
<DEPRECIATION> 3,473,613
<TOTAL-ASSETS> 206,591
<CURRENT-LIABILITIES> 93,314
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 108,854
<TOTAL-LIABILITY-AND-EQUITY> 206,591
<SALES> 60,876
<TOTAL-REVENUES> 60,903
<CGS> 0
<TOTAL-COSTS> 24,087<F1>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,510
<INCOME-PRETAX> (5,747)
<INCOME-TAX> 0
<INCOME-CONTINUING> (5,747)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,747)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Includes lease operating expense, production taxes, and depreciation, depletion
and amortization expense.
</FN>
</TABLE>
