SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 2000
Commission File Number:
I-D: 0-15831 I-E: 0-15832 I-F: 0-15833
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
--------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
I-D 73-1265223
I-E 73-1270110
Oklahoma I-F 73-1292669
---------------------------- -------------------------------
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(918) 583-1791
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
------ ------
-1-
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2000 1999
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 231,645 $183,942
Accounts receivable:
Oil and gas sales 210,472 130,579
---------- --------
Total current assets $ 442,117 $314,521
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 486,623 522,300
DEFERRED CHARGE 85,847 85,847
---------- --------
$1,014,587 $922,668
========== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 8,772 $ 16,194
Gas imbalance payable 36,593 36,593
---------- --------
Total current liabilities $ 45,365 $ 52,787
ACCRUED LIABILITY $ 26,398 $ 26,398
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 18,413) ($ 31,152)
Limited Partners, issued and
outstanding, 7,195 units 961,237 874,635
---------- --------
Total Partners' capital $ 942,824 $843,483
---------- --------
$1,014,587 $922,668
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-2-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ---------
REVENUES:
Oil and gas sales $369,857 $190,167
Interest income 2,232 1,174
-------- --------
$372,089 $191,341
COSTS AND EXPENSES:
Lease operating $ 22,161 $ 10,021
Production tax 22,838 12,849
Depreciation, depletion, and
amortization of oil and gas
properties 20,241 12,744
General and administrative
(Note 2) 22,059 22,038
-------- --------
$ 87,299 $ 57,652
-------- --------
NET INCOME $284,790 $133,689
======== ========
GENERAL PARTNER - NET INCOME $ 45,217 $ 21,662
======== ========
LIMITED PARTNERS - NET INCOME $239,573 $112,027
======== ========
NET INCOME per unit $ 33.29 $ 15.57
======== ========
UNITS OUTSTANDING 7,195 7,195
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-3-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ---------
REVENUES:
Oil and gas sales $588,630 $322,393
Interest income 3,922 2,580
-------- --------
$592,552 $324,973
COSTS AND EXPENSES:
Lease operating $ 91,153 $ 53,832
Production tax 37,982 22,522
Depreciation, depletion, and
amortization of oil and gas
properties 36,688 30,056
General and administrative
(Note 2) 48,906 48,556
-------- --------
$214,729 $154,966
-------- --------
NET INCOME $377,823 $170,007
======== ========
GENERAL PARTNER - NET INCOME $ 61,221 $ 29,322
======== ========
LIMITED PARTNERS - NET INCOME $316,602 $140,685
======== ========
NET INCOME per unit $ 44.00 $ 19.55
======== ========
UNITS OUTSTANDING 7,195 7,195
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-4-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $377,823 $170,007
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 36,688 30,056
(Increase) decrease in accounts
receivable - oil and gas sales ( 79,893) 6,571
Increase (decrease) in accounts
payable ( 7,422) 1,496
-------- --------
Net cash provided by operating
activities $327,196 $208,130
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 1,455) ($ 712)
Proceeds from sale of oil and
gas properties 444 -
-------- --------
Net cash used by investing activities ($ 1,011) ($ 712)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($278,482) ($240,825)
-------- --------
Net cash used by financing activities ($278,482) ($240,825)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 47,703 ($ 33,407)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 183,942 167,361
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $231,645 $133,954
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-5-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 924,551 $ 891,310
Accounts receivable:
Oil and gas sales 1,095,335 772,416
---------- ----------
Total current assets $2,019,886 $1,663,726
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,333,785 3,573,231
DEFERRED CHARGE 622,281 622,281
---------- ----------
$5,975,952 $5,859,238
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 72,883 $ 104,132
Gas imbalance payable 174,639 174,639
---------- ----------
Total current liabilities $ 247,522 $ 278,771
ACCRUED LIABILITY $ 189,964 $ 189,964
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 56,052) ($ 106,782)
Limited Partners, issued and
outstanding, 41,839 units 5,594,518 5,497,285
---------- ----------
Total Partners' capital $5,538,466 $5,390,503
---------- ----------
$5,975,952 $5,859,238
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-6-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $1,659,215 $ 949,135
Interest income 10,421 2,832
Insurance settlement - 675,000
---------- ----------
$1,669,636 $1,626,967
COSTS AND EXPENSES:
Lease operating $ 201,688 $ 199,360
Production tax 110,547 59,534
Depreciation, depletion, and
amortization of oil and gas
properties 143,250 139,099
General and administrative
(Note 2) 120,501 124,059
---------- ----------
$ 575,986 $ 522,052
---------- ----------
NET INCOME $1,093,650 $1,104,915
========== ==========
GENERAL PARTNER - NET INCOME $ 182,539 $ 184,787
========== ==========
LIMITED PARTNERS - NET INCOME $ 911,111 $ 920,128
========== ==========
NET INCOME per unit $ 21.78 $ 21.99
========== ==========
UNITS OUTSTANDING 41,839 41,839
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-7-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $2,981,623 $1,654,037
Interest income 20,143 3,169
Insurance settlement - 675,000
---------- ----------
$3,001,766 $2,332,206
COSTS AND EXPENSES:
Lease operating $ 463,226 $ 447,730
Production tax 190,736 109,615
Depreciation, depletion, and
amortization of oil and gas
properties 291,560 276,642
General and administrative
(Note 2) 276,209 278,611
---------- ----------
$1,221,731 $1,112,598
---------- ----------
NET INCOME $1,780,035 $1,219,608
========== ==========
GENERAL PARTNER - NET INCOME $ 304,802 $ 221,196
========== ==========
LIMITED PARTNERS - NET INCOME $1,475,233 $ 998,412
========== ==========
NET INCOME per unit $ 35.26 $ 23.86
========== ==========
UNITS OUTSTANDING 41,839 41,839
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-8-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,780,035 $1,219,608
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 291,560 276,642
(Increase) decrease in accounts
receivable - oil and gas sales ( 322,919) 13,907
Increase in accounts receivable -
General Partner - ( 675,000)
Decrease in accounts payable ( 31,249) ( 138,071)
---------- ----------
Net cash provided by operating
activities $1,717,427 $ 697,086
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 52,114) ($ 10,537)
Proceeds from sale of oil and
gas properties - 563
---------- ----------
Net cash used by investing activities ($ 52,114) ($ 9,974)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,632,072) ($ 164,401)
---------- ----------
Net cash used by financing activities ($1,632,072) ($ 164,401)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 33,241 $ 522,711
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 891,310 12,003
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 924,551 $ 534,714
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-9-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 252,488 $ 254,500
Accounts receivable:
Oil and gas sales 342,912 250,188
---------- ----------
Total current assets $ 595,400 $ 504,688
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,070,641 1,110,525
DEFERRED CHARGE 375,691 375,691
---------- ----------
$2,041,732 $1,990,904
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 33,287 $ 33,956
Gas imbalance payable 68,901 68,901
---------- ----------
Total current liabilities $ 102,188 $ 102,857
ACCRUED LIABILITY $ 122,086 $ 122,086
PARTNERS' CAPITAL (DEFICIT):
General Partner $ 4,380 ($ 9,232)
Limited Partners, issued and
outstanding, 14,321 units 1,813,078 1,775,193
---------- ----------
Total Partners' capital $1,817,458 $1,765,961
---------- ----------
$2,041,732 $1,990,904
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-10-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $503,250 $296,738
Interest income 3,099 751
Insurance settlement - 472,500
-------- --------
$506,349 $769,989
COSTS AND EXPENSES:
Lease operating $ 99,593 $ 84,253
Production tax 31,095 17,161
Depreciation, depletion, and
amortization of oil and gas
properties 35,417 44,513
General and administrative
(Note 2) 42,340 42,987
-------- --------
$208,445 $188,914
-------- --------
NET INCOME $297,904 $581,075
======== ========
GENERAL PARTNER - NET INCOME $ 49,179 $ 93,281
======== ========
LIMITED PARTNERS - NET INCOME $248,725 $487,794
======== ========
NET INCOME per unit $ 17.37 $ 34.06
======== ========
UNITS OUTSTANDING 14,321 14,321
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-11-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $942,253 $511,194
Interest income 5,997 761
Insurance settlement - 472,500
-------- --------
$948,250 $984,455
COSTS AND EXPENSES:
Lease operating $216,495 $177,452
Production tax 56,951 31,171
Depreciation, depletion, and
amortization of oil and gas
properties 74,001 84,166
General and administrative
(Note 2) 95,691 95,935
-------- --------
$443,138 $388,724
-------- --------
NET INCOME $505,112 $595,731
======== ========
GENERAL PARTNER - NET INCOME $ 85,227 $101,029
======== ========
LIMITED PARTNERS - NET INCOME $419,885 $494,702
======== ========
NET INCOME per unit $ 29.32 $ 34.54
======== ========
UNITS OUTSTANDING 14,321 14,321
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-12-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $505,112 $595,731
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 74,001 84,166
Increase in accounts receivable -
oil and gas sales ( 92,724) ( 674)
Increase in accounts receivable -
General Partner - ( 472,500)
Decrease in accounts payable ( 669) ( 204,879)
-------- --------
Net cash provided by operating
activities $485,720 $ 1,844
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 34,117) ($ 7,333)
Proceeds from sale of oil and
gas properties - 1,681
-------- --------
Net cash used by investing
activities ($ 34,117) ($ 5,652)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($453,615) $ -
-------- --------
Net cash used by financing activities ($453,615) $ -
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 2,012) ($ 3,808)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 254,500 5,457
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $252,488 $ 1,649
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-13-
<PAGE>
GEODYNE ENERGY INCOME PROGRAM I LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
JUNE 30, 2000
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of June 30, 2000, combined statements of
operations for the three and six months ended June 30, 2000 and 1999, and
combined statements of cash flows for the six months ended June 30, 2000
and 1999 have been prepared by Geodyne Resources, Inc., the General
Partner of the limited partnerships, without audit. Each limited
partnership is a general partner in the related Geodyne Energy Income
Production Partnership in which Geodyne Resources, Inc. serves as the
managing partner. Unless the context indicates otherwise, all references
to a "Partnership" or the "Partnerships" are references to the limited
partnership and its related production partnership, collectively, and all
references to the "General Partner" are references to the general partner
of the limited partnerships and the managing partner of the production
partnerships, collectively. In the opinion of management the financial
statements referred to above include all necessary adjustments, consisting
of normal recurring adjustments, to present fairly the combined financial
position at June 30, 2000, the combined results of operations for the
three and six months ended June 30, 2000 and 1999, and the combined cash
flows for the six months ended June 30, 2000 and 1999.
Information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The accompanying interim
financial statements should be read in conjunction with the Partnerships'
Annual Report on Form 10-K filed for the year ended December 31, 1999. The
results of operations for the period ended June 30, 2000 are not
necessarily indicative of the results to be expected for the full year.
The Limited Partners' net income or loss per unit is based upon each
$1,000 initial capital contribution.
-14-
<PAGE>
OIL AND GAS PROPERTIES
----------------------
The Partnerships follow the successful efforts method of accounting for
their oil and gas properties. Under the successful efforts method, the
Partnerships capitalize all property acquisition costs and development
costs incurred in connection with the further development of oil and gas
reserves. Property acquisition costs include costs incurred by the
Partnerships or the General Partner to acquire producing properties,
including related title insurance or examination costs, commissions,
engineering, legal and accounting fees, and similar costs directly related
to the acquisitions, plus an allocated portion, of the General Partner's
property screening costs. The acquisition cost to the Partnerships of
properties acquired by the General Partner is adjusted to reflect the net
cash results of operations, including interest incurred to finance the
acquisition, for the period of time the properties are held by the General
Partner prior to their transfer to the Partnerships. Leasehold impairment
is recognized based upon an individual property assessment and exploratory
experience. Upon discovery of commercial reserves, leasehold costs are
transferred to producing properties.
Depletion of the costs of producing oil and gas properties, amortization
of related intangible drilling and development costs, and depreciation of
tangible lease and well equipment are computed on the unit-of-production
method. The Partnerships' depletion, depreciation, and amortization
includes estimated dismantlement and abandonment costs, net of estimated
salvage value.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss reflected in income. When less than complete units of depreciable
property are retired or sold, the proceeds are credited to oil and gas
properties.
-15-
<PAGE>
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' partnership agreements provide for reimbursement to the
General Partner for all direct general and administrative expenses and for
the general and administrative overhead applicable to the Partnerships
based on an allocation of actual costs incurred. During the three months
ended June 30, 2000 the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
I-D $2,073 $ 19,986
I-E 4,281 116,220
I-F 2,560 39,780
During the six months ended June 30, 2000 the following payments were made
to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
I-D $ 8,934 $ 39,972
I-E 43,769 232,440
I-F 16,131 79,560
Affiliates of the Partnerships operate certain of the Partnerships'
properties and their policy is to bill the Partnerships for all customary
charges and cost reimbursements associated with their activities.
-16-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
-----------------------------------------------
This Quarterly Report contains certain forward-looking statements. The
words "anticipate", "believe", "expect", "plan", "intend", "estimate",
"project", "could", "may" and similar expressions are intended to identify
forward-looking statements. Such statements reflect management's current
views with respect to future events and financial performance. This
Quarterly Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions are
management's efforts to accurately reflect the condition and operation of
the Partnerships.
Use of forward-looking statements and estimates and assumptions involve
risks and uncertainties which include, but are not limited to, the
volatility of oil and gas prices, the uncertainty of reserve information,
the operating risk associated with oil and gas properties (including the
risk of personal injury, death, property damage, damage to the well or
producing reservoir, environmental contamination, and other operating
risks), the prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the general
economic climate, the supply and price of foreign imports of oil and gas,
the level of consumer product demand, and the price and availability of
alternative fuels. Should one or more of these risks or uncertainties
occur or should estimates or underlying assumptions prove incorrect,
actual conditions or results may vary materially and adversely from those
stated, anticipated, believed, estimated, and otherwise indicated.
GENERAL
-------
The Partnerships are engaged in the business of acquiring and operating
producing oil and gas properties located in the continental United States.
In general, a Partnership acquired producing properties and did not engage
in development drilling or enhanced recovery projects, except as an
incidental part of the management of the producing properties acquired.
Therefore, the economic life of each Partnership, and its related
Production Partnership, is limited to the period of time required to fully
produce its acquired oil and gas reserves. The net proceeds from the oil
and gas operations are distributed to the Limited Partners and the General
Partner in accordance with the terms of the Partnerships' partnership
agreements.
-17-
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
I-D March 4, 1986 $ 7,194,700
I-E September 10, 1986 41,839,400
I-F December 16, 1986 14,320,900
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
Net proceeds from the operations less necessary operating capital are
distributed to the Limited Partners on a quarterly basis. Revenues and net
proceeds of a Partnership are largely dependent upon the volumes of oil
and gas sold and the prices received for such oil and gas. While the
General Partner cannot predict future pricing trends, it believes the
working capital available as of June 30, 2000 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
RESULTS OF OPERATIONS
---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction with the
analysis of results of operations provided below. The most important
variables affecting the Partnerships' revenues are the prices received for
the sale of oil and gas and the volumes of oil and gas produced. The
Partnerships' production is mainly natural gas, so such pricing and
volumes are the most significant factors.
-18-
<PAGE>
Due to the volatility of oil and gas prices, forecasting future prices is
subject to great uncertainty and inaccuracy. Substantially all of the
Partnerships' gas reserves are being sold in the "spot market". Prices on
the spot market are subject to wide seasonal and regional pricing
fluctuations due to the highly competitive nature of the spot market. Such
spot market sales are generally short-term in nature and are dependent
upon the obtaining of transportation services provided by pipelines.
However, oil and gas are depleting assets, so it can be expected that
production levels will decline over time. Recent gas prices have been
higher than the Partnerships' historical average. This is attributable to
the higher prices for crude oil, a substitute fuel in some markets, and
reduced production due to lower capital investments in 1998 and 1999.
I-D PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1999.
Three Months Ended June 30,
---------------------------
2000 1999
-------- --------
Oil and gas sales $369,857 $190,167
Oil and gas production expenses $ 44,999 $ 22,870
Barrels produced 1,889 2,471
Mcf produced 90,719 71,934
Average price/Bbl $ 33.02 $ 13.51
Average price/Mcf $ 3.39 $ 2.18
As shown in the table above, total oil and gas sales increased $179,690
(94.5%) for the three months ended June 30, 2000 as compared to the three
months ended June 30, 1999. Of this increase, approximately $37,000 and
$110,000, respectively, were related to increases in the average prices of
oil and gas sold and approximately $41,000 was related to an increase in
volumes of gas sold. Volumes of oil sold decreased 582 barrels, while
volumes of gas sold increased 18,785 Mcf for the three months ended June
30, 2000 as compared to the three months ended June 30, 1999. The decrease
in volumes of oil sold was primarily due to normal declines in production.
The increase in volumes of gas sold was primarily due to positive prior
period volume adjustments made by the purchasers on several wells during
the three months ended June 30, 2000. Average oil and gas prices increased
to $33.02 per barrel and $3.39 per Mcf, respectively, for the three months
ended June 30, 2000 from $13.51 per barrel and $2.18 per Mcf,
respectively, for the three months ended June 30, 1999.
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<PAGE>
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $22,129 (96.8%) for the three months ended
June 30, 2000 as compared to the three months ended June 30, 1999. This
increase was primarily due to (i) a negative prior period adjustment of
lease operating expenses made by the operator on one significant well
during the three months ended June 30, 1999 and (ii) an increase in
production taxes associated with the increase in oil and gas sales. As a
percentage of oil and gas sales, these expenses remained relatively
constant at 12.2% for the three months ended June 30, 2000 and 12.0% for
the three months ended June 30, 1999.
Depreciation, depletion, and amortization of oil and gas properties
increased $7,497 (58.8%) for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. This increase was
primarily due to (i) downward revisions in the estimates of remaining gas
reserves on three significant wells at December 31, 1999 and (ii) the
increase in volumes of gas sold. As a percentage of oil and gas sales,
this expense decreased to 5.5% for the three months ended June 30, 2000
from 6.7% for the three months ended June 30, 1999. This percentage
decrease was primarily due to the increases in the average prices of oil
and gas sold.
General and administrative expenses remained relatively constant for the
three months ended June 30, 2000 as compared to the three months ended
June 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 6.0% for the three months ended June 30, 2000 from 11.6% for
the three months ended June 30, 1999. This percentage decrease was
primarily due to the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1999.
Six Months Ended June 30,
-------------------------
2000 1999
-------- --------
Oil and gas sales $588,630 $322,393
Oil and gas production expenses $129,135 $ 76,354
Barrels produced 3,558 4,809
Mcf produced 163,632 151,481
Average price/Bbl $ 30.21 $ 12.23
Average price/Mcf $ 2.94 $ 1.74
As shown in the table above, total oil and gas sales increased $266,237
(82.6%) for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999. Of this increase, approximately $64,000 and
$196,000,
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<PAGE>
respectively, were related to increases in the average prices of oil and
gas sold. Volumes of oil sold decreased 1,251 barrels, while volumes of
gas sold increased 12,151 Mcf for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. The decrease in volumes of
oil sold was primarily due to normal declines in production. Average oil
and gas prices increased to $30.21 per barrel and $2.94 per Mcf,
respectively, for the six months ended June 30, 2000 from $12.23 per
barrel and $1.74 per Mcf, respectively, for the six months ended June 30,
1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $52,781 (69.1%) for the six months ended June
30, 2000 as compared to the six months ended June 30, 1999. This increase
was primarily due to (i) workover expenses incurred on one significant
well during the six months ended June 30, 2000 in order to improve the
recovery of reserves, (ii) a negative prior period adjustment of lease
operating expenses made by the operator on another significant well during
the three months ended June 30, 1999, and (iii) an increase in production
taxes associated with the increase in oil and gas sales. As a percentage
of oil and gas sales, these expenses decreased to 21.9% for the six months
ended June 30, 2000 from 23.7% for the six months ended June 30, 1999.
Depreciation, depletion, and amortization of oil and gas properties
increased $6,632 (22.1%) for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. This increase was
primarily due to (i) downward revisions in the estimates of remaining gas
reserves on three significant wells at December 31, 1999 and (ii) the
increase in volumes of gas sold. As a percentage of oil and gas sales,
this expense decreased to 6.2% for the six months ended June 30, 2000 from
9.3% for the six months ended June 30, 1999. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2000 as compared to the six months ended June
30, 1999. As a percentage of oil and gas sales, these expenses decreased
to 8.3% for the six months ended June 30, 2000 from 15.1% for the six
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2000 totaling $14,688,175 or 204.15% of Limited Partners' capital
contributions.
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<PAGE>
I-E PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1999.
Three Months Ended June 30,
---------------------------
2000 1999
---------- --------
Oil and gas sales $1,659,215 $949,135
Oil and gas production expenses $ 312,235 $258,894
Barrels produced 13,368 14,779
Mcf produced 392,046 382,850
Average price/Bbl $ 29.62 $ 14.86
Average price/Mcf $ 3.22 $ 1.91
As shown in the table above, total oil and gas sales increased $710,080
(74.8%) for the three months ended June 30, 2000 as compared to the three
months ended June 30, 1999. Of this increase, approximately $197,000 and
$516,000, respectively, were related to increases in the average prices of
oil and gas sold. Volumes of oil sold decreased 1,411 barrels, while
volumes of gas sold increased 9,196 Mcf for the three months ended June
30, 2000 as compared to the three months ended June 30, 1999. The decrease
in volumes of oil sold was primarily due to (i) normal declines in
production and (ii) a negative prior period volume adjustment made by the
purchaser on one significant well during the three months ended June 30,
2000. Average oil and gas prices increased to $29.62 per barrel and $3.22
per Mcf, respectively, for the three months ended June 30, 2000 from
$14.86 per barrel and $1.91 per Mcf, respectively, for the three months
ended June 30, 1999.
The I-E Partnership recognized an insurance settlement in the amount of
$675,000 during the three months ended June 30, 1999. No similar
settlements occurred during the three months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $53,341 (20.6%) for the three months ended
June 30, 2000 as compared to the three months ended June 30, 1999. This
increase was primarily due to an increase in production taxes associated
with the increase in oil and gas sales. As a percentage of oil and gas
sales, these expenses decreased to 18.8% for the three months ended June
30, 2000 from 27.3% for the three months ended June 30, 1999. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
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<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
increased $4,151 (3.0%) for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. As a percentage of oil
and gas sales, this expense decreased to 8.6% for the three months ended
June 30, 2000 from 14.7% for the three months ended June 30, 1999. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
General and administrative expenses decreased $3,558 (2.9%) for the three
months ended June 30, 2000 as compared to the three months ended June 30,
1999. As a percentage of oil and gas sales, these expenses decreased to
7.3% for the three months ended June 30, 2000 from 13.1% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1999.
Six Months Ended June 30,
-------------------------
2000 1999
---------- ----------
Oil and gas sales $2,981,623 $1,654,037
Oil and gas production expenses $ 653,962 $ 557,345
Barrels produced 27,842 31,011
Mcf produced 794,136 751,705
Average price/Bbl $ 28.10 $ 12.58
Average price/Mcf $ 2.77 $ 1.68
As shown in the table above, total oil and gas sales increased $1,327,586
(80.3%) for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999. Of this increase, approximately $432,000 and
$864,000, respectively, were related to increases in the average prices of
oil and gas sold. Volumes of oil sold decreased 3,169 barrels, while
volumes of gas sold increased 42,431 Mcf for the six months ended June 30,
2000 as compared to the six months ended June 30, 1999. The decrease in
volumes of oil sold was primarily due to (i) normal declines in production
and (ii) a negative prior period volume adjustment made by the purchaser
on one significant well during the six months ended June 30, 2000. Average
oil and gas prices increased to $28.10 per barrel and $2.77 per Mcf,
respectively, for the six months ended June 30, 2000 from $12.58 per
barrel and $1.68 per Mcf, respectively, for the six months ended June 30,
1999.
The I-E Partnership recognized an insurance settlement in the amount of
$675,000 during the six months ended June 30, 1999. No similar settlements
occurred during the six months ended June 30, 2000.
-23-
<PAGE>
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $96,617 (17.3%) for the six months ended June
30, 2000 as compared to the six months ended June 30, 1999. This increase
was primarily due to an increase in production taxes associated with the
increase in oil and gas sales. As a percentage of oil and gas sales, these
expenses decreased to 21.9% for the six months ended June 30, 2000 from
33.7% for the six months ended June 30, 1999. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $14,918 (5.4%) for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. As a percentage of oil and
gas sales, this expense decreased to 9.8% for the six months ended June
30, 2000 from 16.7% for the six months ended June 30, 1999. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2000 as compared to the six months ended June
30, 1999. As a percentage of oil and gas sales, these expenses decreased
to 9.3% for the six months ended June 30, 2000 from 16.8% for the six
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2000 totaling $56,791,552 or 135.74% of Limited Partners' capital
contributions.
I-F PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1999.
Three Months Ended June 30,
---------------------------
2000 1999
-------- --------
Oil and gas sales $503,250 $296,738
Oil and gas production expenses $130,688 $101,414
Barrels produced 6,447 7,180
Mcf produced 88,566 101,289
Average price/Bbl $ 30.94 $ 14.99
Average price/Mcf $ 3.43 $ 1.87
As shown in the table above, total oil and gas sales increased $206,512
(69.6%) for the three months ended June 30, 2000 as compared to the three
months ended June 30, 1999. Of this increase, approximately $103,000 and
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<PAGE>
$138,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by a decrease of
approximately $24,000 related to a decrease in volumes of gas sold.
Volumes of oil and gas sold decreased 733 barrels and 12,723 Mcf,
respectively, for the three months ended June 30, 2000 as compared to the
three months ended June 30, 1999. The decrease in volumes of oil sold was
primarily due to (i) normal declines in production and (ii) a negative
prior period volume adjustment made by the purchaser on one significant
well during the three months ended June 30, 2000. The decrease in volumes
of gas sold was primarily due to (i) normal declines in production and
(ii) positive prior period volume adjustments made by the purchaser on two
wells during the three months ended June 30, 1999. Average oil and gas
prices increased to $30.94 per barrel and $3.43 per Mcf, respectively, for
the three months ended June 30, 2000 from $14.99 per barrel and $1.87 per
Mcf, respectively, for the three months ended June 30, 1999.
The I-F Partnership recognized an insurance settlement in the amount of
$472,500 during the three months ended June 30, 1999. No similar
settlements occurred during the three months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $29,274 (28.9%) for the three months ended
June 30, 2000 as compared to the three months ended June 30, 1999. This
increase was primarily due to (i) legal expenses incurred on one
significant well during the three months ended June 30, 2000 and (ii) an
increase in production taxes associated with the increase in oil and gas
sales. As a percentage of oil and gas sales, these expenses decreased to
26.0% for the three months ended June 30, 2000 from 34.2% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $9,096 (20.4%) for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. This decrease was
primarily due to (i) the decreases in volumes of oil and gas sold and (ii)
upward revisions in the estimates of remaining oil and gas reserves at
December 31, 1999. As a percentage of oil and gas sales, this expense
decreased to 7.0% for the three months ended June 30, 2000 from 15.0% for
the three months ended June 30, 1999. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
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<PAGE>
General and administrative expenses decreased $647 (1.5%) for the three
months ended June 30, 2000 as compared to the three months ended June 30,
1999. As a percentage of oil and gas sales, these expenses decreased to
8.4% for the three months ended June 30, 2000 from 14.5% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1999.
Six Months Ended June 30,
-------------------------
2000 1999
-------- --------
Oil and gas sales $942,253 $511,194
Oil and gas production expenses $273,446 $208,623
Barrels produced 13,573 14,960
Mcf produced 184,436 183,211
Average price/Bbl $ 28.77 $ 12.69
Average price/Mcf $ 2.99 $ 1.75
As shown in the table above, total oil and gas sales increased $431,059
(84.3%) for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999. Of this increase, approximately $218,000 and
$228,000, respectively, were related to increases in the average prices of
oil and gas sold. Volumes of oil sold decreased 1,387 barrels, while
volumes of gas sold increased 1,225 Mcf for the six months ended June 30,
2000 as compared to the six months ended June 30, 1999. Average oil and
gas prices increased to $28.77 per barrel and $2.99 per Mcf, respectively,
for the six months ended June 30, 2000 from $12.69 per barrel and $1.75
per Mcf, respectively, for the six months ended June 30, 1999.
The I-F Partnership recognized an insurance settlement in the amount of
$472,500 during the six months ended June 30, 1999. No similar settlements
occurred during the six months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $64,823 (31.1%) for the six months ended June
30, 2000 as compared to the six months ended June 30, 1999. This increase
was primarily due to (i) an increase in production taxes associated with
the increase in oil and gas sales, (ii) legal expenses incurred on one
significant well during the six months ended June 30, 2000, and (iii)
positive prior period adjustments of lease operating expenses made by the
operator on several wells during the six months ended June 30, 2000. As a
percentage of oil and gas sales, these expenses decreased to 29.0% for the
six months ended June 30, 2000 from 40.8% for the six
-26-
<PAGE>
months ended June 30, 1999. This percentage decrease was primarily due
to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $10,165 (12.1%) for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999. As a percentage of oil and gas sales,
this expense decreased to 7.9% for the six months ended June 30, 2000 from
16.5% for the six months ended June 30, 1999. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2000 as compared to the six months ended June
30, 1999. As a percentage of oil and gas sales, these expenses decreased
to 10.2% for the six months ended June 30, 2000 from 18.8% for the six
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2000 totaling $18,763,664 or 131.02% of Limited Partners' capital
contributions.
-27-
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
-28-
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule containing summary financial
information extracted from the I-D Partnership's financial
statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the I-E Partnership's financial
statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the I-F Partnership's financial
statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on From 8-K.
None.
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<PAGE>
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.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: August 10, 2000 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: August 10, 2000 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
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<PAGE>
INDEX TO EXHIBITS
NUMBER DESCRIPTION
------ -----------
27.1 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership I-D's
financial statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.2 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership I-E's
financial statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.3 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership I-F's
financial statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
All other exhibits are omitted as inapplicable.
-31-
