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 Commission File Number
June 30, 2000 33-10346-09 (1980-1)
33-10346-10 (1980-2)
DYCO 1980 OIL AND GAS PROGRAM
(TWO LIMITED PARTNERSHIPS)
(Exact Name of Registrant as specified in its charter)
41-1378908 (1980-1)
Minnesota 41-1385165 (1980-2)
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
Samson Plaza, Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(918) 583-1791
----------------------------------------------------
(Registrant's telephone number, including area code)
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
DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2000 1999
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 43,210 $ 44,620
Accrued oil and gas sales 92,495 66,174
-------- --------
Total current assets $135,705 $110,794
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 273,860 309,760
DEFERRED CHARGE 55,502 55,502
-------- --------
$465,067 $476,056
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 5,188 $ 5,712
Gas imbalance payable 8,697 8,697
-------- --------
Total current liabilities $ 13,885 $ 14,409
ACCRUED LIABILITY $ 39,310 $ 39,310
PARTNERS' CAPITAL:
General Partner, 40 general
partner units $ 4,119 $ 4,223
Limited Partners, issued and
outstanding, 4,000 Units 407,753 418,114
-------- --------
Total Partners' capital $411,872 $422,337
-------- --------
$465,067 $476,056
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-2-
<PAGE>
DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- -------
REVENUES:
Oil and gas sales $134,119 $76,703
Interest 1,653 1,511
-------- -------
$135,772 $78,214
COSTS AND EXPENSES:
Oil and gas production $ 22,175 $24,454
Depreciation, depletion, and
amortization of oil and gas
properties 4,771 9,111
General and administrative
(Note 2) 18,251 14,819
-------- -------
$ 45,197 $48,384
-------- -------
NET INCOME $ 90,575 $29,830
======== =======
GENERAL PARTNER (1%) - net income $ 906 $ 298
======== =======
LIMITED PARTNERS (99%) - net income $ 89,669 $29,532
======== =======
NET INCOME PER UNIT $ 22.42 $ 7.38
======== =======
UNITS OUTSTANDING 4,040 4,040
======== =======
The accompanying condensed notes are an integral part of
these financial statements.
-3-
<PAGE>
DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
REVENUES:
Oil and gas sales $234,337 $139,094
Interest 2,522 2,260
-------- --------
$236,859 $141,354
COSTS AND EXPENSES:
Oil and gas production $ 44,619 $ 43,409
Depreciation, depletion, and
amortization of oil and gas
properties 17,647 23,425
General and administrative
(Note 2) 43,658 35,335
-------- --------
$105,924 $102,169
-------- --------
NET INCOME $130,935 $ 39,185
======== ========
GENERAL PARTNER (1%) - net income $ 1,310 $ 392
======== ========
LIMITED PARTNERS (99%) - net income $129,625 $ 38,793
======== ========
NET INCOME PER UNIT $ 32.41 $ 9.70
======== ========
UNITS OUTSTANDING 4,040 4,040
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-4-
<PAGE>
DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $130,935 $ 39,185
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 17,647 23,425
Increase in accrued oil and gas
gas sales ( 26,321) ( 3,281)
Decrease in accounts receivable -
related party - 6,216
Increase in deferred charge - ( 1,081)
Increase (decrease) in accounts
payable ( 524) 1,080
Decrease in accrued liability - ( 363)
-------- --------
Net cash provided by operating
activities $121,737 $ 65,181
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 18,253 $ 51,472
Additions to oil and gas
properties - ( 1)
-------- --------
Net cash provided by investing
activities $ 18,253 $ 51,471
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($141,400) ($141,400)
-------- --------
Net cash used by financing
activities ($141,400) ($141,400)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 1,410) ($ 24,748)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 44,620 57,478
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 43,210 $ 32,730
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-5-
<PAGE>
DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2000 1999
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 77,678 $ 52,257
Accrued oil and gas sales 144,250 91,782
-------- --------
Total current assets $221,928 $144,039
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 120,418 134,686
DEFERRED CHARGE 48,100 48,100
-------- --------
$390,446 $326,825
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 6,920 $ 8,842
Gas imbalance payable 20,136 20,136
-------- --------
Total current liabilities $ 27,056 $ 28,978
ACCRUED LIABILITY $117,808 $117,808
PARTNERS' CAPITAL:
General Partner, 59 general
partner units $ 2,456 $ 1,801
Limited Partners, issued and
outstanding, 5,000 Units 243,126 178,238
-------- --------
Total Partners' capital $245,582 $180,039
-------- --------
$390,446 $326,825
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-6-
<PAGE>
DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- ---------
REVENUES:
Oil and gas sales $209,950 $142,619
Interest 2,124 628
-------- --------
$212,074 $143,247
COSTS AND EXPENSES:
Oil and gas production $ 31,562 $ 30,957
Depreciation, depletion, and
amortization of oil and gas
properties 4,366 8,653
General and administrative
(Note 2) 23,170 22,318
-------- --------
$ 59,098 $ 61,928
-------- --------
NET INCOME $152,976 $ 81,319
======== ========
GENERAL PARTNER (1%) - net income $ 1,530 $ 813
======== ========
LIMITED PARTNERS (99%) - net income $151,446 $ 80,506
======== ========
NET INCOME PER UNIT $ 30.24 $ 16.07
======== ========
UNITS OUTSTANDING 5,059 5,059
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-7-
<PAGE>
DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- ---------
REVENUES:
Oil and gas sales $353,706 $263,865
Interest 3,202 1,532
-------- --------
$356,908 $265,397
COSTS AND EXPENSES:
Oil and gas production $ 72,695 $ 60,578
Depreciation, depletion, and
amortization of oil and gas
properties 13,255 22,891
General and administrative
(Note 2) 53,645 52,094
-------- --------
$139,595 $135,563
-------- --------
NET INCOME $217,313 $129,834
======== ========
GENERAL PARTNER (1%) - net income $ 2,173 $ 1,298
======== ========
LIMITED PARTNERS (99%) - net income $215,140 $128,536
======== ========
NET INCOME PER UNIT $ 42.96 $ 25.66
======== ========
UNITS OUTSTANDING 5,059 5,059
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-8-
<PAGE>
DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $217,313 $129,834
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 13,255 22,891
Increase in accrued oil and
gas sales ( 52,468) ( 5,370)
(Increase) decrease in accounts
payable ( 1,922) 996
-------- --------
Net cash provided by operating
activities $176,178 $148,351
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 1,082 $ -
Additions to oil and gas
properties ( 69) ( 441)
-------- --------
Net cash provided (used) by
investing activities $ 1,013 ($ 441)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($151,770) ($101,180)
-------- --------
Net cash used by financing
activities ($151,770) ($101,180)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 25,421 $ 46,730
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 52,257 62,393
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 77,678 $109,123
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-9-
<PAGE>
DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
CONDENSED NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 2000, statements of operations for the
three and six months ended June 30, 2000 and 1999, and statements of cash
flows for the six months ended June 30, 2000 and 1999 have been prepared
by Dyco Petroleum Corporation ("Dyco"), the General Partner of the Dyco
Oil and Gas Program 1980-1 and 1980-2 Limited Partnerships (individually,
the "1980-1 Program" or the "1980-2 Program", as the case may be, or,
collectively, the "Programs"), without audit. In the opinion of management
all adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position at June 30, 2000,
results of operations for the three and six months ended June 30, 2000 and
1999, and changes in cash flows for the six months ended June 30, 2000 and
1999 have been made.
Information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that these
financial statements be read in conjunction with the financial statements
and notes thereto included in the Programs' Annual Report on Form 10-K 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
$5,000 initial capital contribution.
OIL AND GAS PROPERTIES
----------------------
Oil and gas operations are accounted for using the full cost method of
accounting. All productive and non-productive costs associated with the
acquisition, exploration and development of oil and gas reserves are
capitalized. The Programs' calculation of depreciation, depletion, and
amortization includes estimated future expenditures to be incurred in
developing proved reserves and estimated dismantlement and abandonment
costs, net of estimated salvage values. In the event the unamortized cost
of oil and gas properties being amortized exceeds the full cost
-10-
<PAGE>
ceiling (as defined by the Securities and Exchange Commission), the excess
is charged to expense in the period during which such excess occurs. Sales
and abandonments of properties are accounted for as adjustments of
capitalized costs with no gain or loss recognized, unless such adjustments
would significantly alter the relationship between capitalized costs and
proved oil and gas reserves.
The provision for depreciation, depletion, and amortization of oil and gas
properties is calculated by dividing the oil and gas sales dollars during
the period by the estimated future gross income from the oil and gas
properties and applying the resulting rate to the net remaining costs of
oil and gas properties that have been capitalized, plus estimated future
development costs.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of each of the Program's partnership agreement, Dyco is
entitled to receive a reimbursement for all direct expenses and general
and administrative, geological and engineering expenses it incurs on
behalf of the Program. During the three months ended June 30, 2000 and
1999, the 1980-1 Program incurred such expenses totaling $18,251 and
$14,819, respectively, of which $17,049 and $14,022, respectively, were
paid each period to Dyco and its affiliates. During the six months ended
June 30, 2000 and 1999, the 1980-1 Program incurred such expenses totaling
$43,658 and $35,335, respectively, of which $34,098 and $28,044,
respectively, were paid each period to Dyco and its affiliates. During the
three months ended June 30, 2000 and 1999, the 1980-2 Program incurred
such expenses totaling $23,170 and $22,318, respectively, of which $21,840
and $21,405, respectively, were paid each period to Dyco and its
affiliates. During the six months ended June 30, 2000 and 1999, the 1980-2
Program incurred such expenses totaling $53,645 and $52,094, respectively,
of which $43,680 and $42,810, respectively, were paid each period to Dyco
and its affiliates.
Affiliates of the Programs operate certain of the Programs' properties.
Their policy is to bill the Programs for all customary charges and cost
reimbursements associated with these activities.
-11-
<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 Programs.
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.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
Net proceeds from the Programs' operations less necessary operating
capital are distributed to investors on a quarterly basis. The net
proceeds from production are not reinvested in productive assets, except
to the extent that producing wells are improved or where methods are
employed to permit more efficient recovery of the Programs' reserves which
would result in a positive economic impact.
-12-
<PAGE>
The Programs' available capital from subscriptions has been spent on oil
and gas drilling activities. There should be no further material capital
resource commitments in the future. The Programs have no debt commitments.
Management believes that cash for ordinary operational purposes will be
provided by current oil and gas production.
The 1980-1 Program's Statement of Cash Flows for the six months ended June
30, 2000 includes proceeds from the sale of oil and gas properties during
the second quarter of 2000. These proceeds were included in the 1980-1
Program's cash distributions paid in June 2000.
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 Programs' revenues are the prices received for the
sale of oil and gas and the volumes of oil and gas produced. The Program's
production is mainly natural gas, so such pricing and volumes are the most
significant factors.
Due to the volatility of oil and gas prices, forecasting future prices is
subject to great uncertainty and inaccuracy. Substantially all of the
Programs' 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. It is likewise
difficult to predict production volumes. 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 Program's
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.
-13-
<PAGE>
1980-1 PROGRAM
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 $134,119 $76,703
Oil and gas production expenses $ 22,175 $24,454
Barrels produced 332 438
Mcf produced 36,842 34,087
Average price/Bbl $ 28.24 $ 14.34
Average price/Mcf $ 3.39 $ 2.07
As shown in the table above, total oil and gas sales increased $57,416
(74.9%) for the three months ended June 30, 2000 as compared to the three
months ended June 30, 1999. Of this increase, approximately $49,000 was
related to an increase in the average price of gas sold. Volumes of oil
sold decreased 106 barrels, while volumes of gas sold increased 2,755 Mcf
for the three months ended June 30, 2000 as compared to the three months
ended June 30, 1999. The increase in volumes of gas sold was primarily due
to the 1980-1 Program receiving an increased percentage of sales on two
wells due to gas balancing during the three months ended June 30, 2000 and
a reduced percentage of sales on one well due to gas balancing during the
three months ended June 30, 1999. Average oil and gas prices increased to
$28.24 per barrel and $3.39 per Mcf, respectively, for the three months
ended June 30, 2000 from $14.34 per barrel and $2.07 per Mcf,
respectively, for the three months ended June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $2,279 (9.3%) 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 16.5% for the
three months ended June 30, 2000 from 31.9% 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 $4,340 (47.6%) for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. This decrease was
primarily due to increases in the oil and gas prices used in the valuation
of remaining reserves at June 30, 2000 as compared to June 30, 1999. As a
percentage of oil and gas sales, this expense decreased to 3.6% for the
three months ended June 30, 2000 from 11.9% for the three months ended
June 30, 1999. This percentage
-14-
<PAGE>
decrease was primarily due to the increases in the average prices of oil
and gas sold.
General and administrative expenses increased $3,432 (23.2%) for the three
months ended June 30, 2000 as compared to the three months ended June 30,
1999. This increase was primarily due to a change in allocation among the
1980-1 Program and other affiliated programs of indirect general and
administrative expenses reimbursed to the General Partner. As a percentage
of oil and gas sales, these expenses decreased to 13.6% for the three
months ended June 30, 2000 from 19.3% for the three months ended June 30,
1999. This percentage decrease was primarily due to the increase in oil
and gas sales.
1980-1 PROGRAM
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 $234,337 $139,094
Oil and gas production expenses $ 44,619 $ 43,409
Barrels produced 556 739
Mcf produced 75,417 68,840
Average price/Bbl $ 27.75 $ 13.32
Average price/Mcf $ 2.90 $ 1.88
As shown in the table above, total oil and gas sales increased $95,243
(68.5%) for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999. Of this increase, approximately $77,000 was
related to an increase in the average price of gas sold and approximately
$12,000 was related to an increase in volumes of gas sold. Volumes of oil
sold decreased 183 barrels, while volumes of gas sold increased 6,577 Mcf
for the six months ended June 30, 2000 as compared to the six months ended
June 30, 1999. The increase in volumes of gas sold was primarily due to
the 1980-1 Program receiving an increased percentage of sales on two wells
due to gas balancing during the six months ended June 30, 2000 and a
reduced percentage of sales on one well due to gas balancing during the
six months ended June 30, 1999. Average oil and gas prices increased to
$27.75 per barrel and $2.90 per Mcf, respectively, for the six months
ended June 30, 2000 from $13.32 per barrel and $1.88 per Mcf,
respectively, for the six months ended June 30, 1999.
-15-
<PAGE>
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $1,210 (2.8%) 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 19.0% for the
six months ended June 30, 2000 from 31.2% 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
decreased $5,778 (24.7%) for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. This decrease was
primarily due to increases in the oil and gas prices used in the valuation
of remaining reserves at June 30, 2000 as compared to June 30, 1999. This
decrease was partially offset by the increase in volumes of gas sold. As a
percentage of oil and gas sales, this expense decreased to 7.5% 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 increases in
the average prices of oil and gas sold.
General and administrative expenses increased $8,323 (23.6%) for the six
months ended June 30, 2000 as compared to the six months ended June 30,
1999. This increase was primarily due to a change in allocation among the
1980-1 Program and other affiliated programs of indirect general and
administrative expenses reimbursed to the General Partner. As a percentage
of oil and gas sales, these expenses decreased to 18.6% for the six months
ended June 30, 2000 from 25.4% for the six months ended June 30, 1999.
This percentage decrease was primarily due to the increase in oil and gas
sales.
1980-2 PROGRAM
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 $209,950 $142,619
Oil and gas production expenses $ 31,562 $ 30,957
Barrels produced 172 385
Mcf produced 60,918 72,695
Average price/Bbl $ 28.09 $ 14.30
Average price/Mcf $ 3.37 $ 1.89
As shown in the table above, total oil and gas sales increased $67,331
(47.2%) for the three months ended June 30, 2000 as compared to the three
months ended June 30,
-16-
<PAGE>
1999. Of this increase, approximately $90,000 was related to an increase
in the average price of gas sold, which amount was partially offset by a
decrease of approximately $22,000 related to a decrease in volumes of gas
sold. Volumes of oil and gas sold decreased 213 barrels and 11,777 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 gas sold was
primarily due to the 1980-2 Program receiving an increased percentage of
sales on one well due to gas balancing during the three months ended June
30, 1999 and normal declines in production. Average oil and gas prices
increased to $28.09 per barrel and $3.37 per Mcf, respectively, for the
three months ended June 30, 2000 from $14.30 per barrel and $1.89 per Mcf,
respectively, for the three months ended June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $605 (2.0%) 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, these expenses decreased to 15.0% for the
three months ended June 30, 2000 from 21.7% 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.
Depreciation, depletion, and amortization of oil and gas properties
decreased $4,287 (49.5%) for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. This decrease was
primarily due to an increase in the oil and gas prices used in the
valuation of remaining reserves at June 30, 2000 as compared to June 30,
1999 and the decreases in volumes of oil and gas sold. As a percentage of
oil and gas sales, this expense decreased to 2.1% for the three months
ended June 30, 2000 from 6.1% 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 increased $852 (3.8%) 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
11.0% for the three months ended June 30, 2000 from 15.6% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
-17-
<PAGE>
1980-2 PROGRAM
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 $353,706 $263,865
Oil and gas production expenses $ 72,695 $ 60,578
Barrels produced 282 628
Mcf produced 121,599 143,936
Average price/Bbl $ 27.84 $ 13.76
Average price/Mcf $ 2.84 $ 1.77
As shown in the table above, total oil and gas sales increased $89,841
(34.0%) for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999. Of this increase, approximately $130,000 was
related to an increase in the average price of gas sold, partially offset
by a decrease of approximately $40,000 related to a decrease in volumes of
gas sold. Volumes of oil and gas sold decreased 346 barrels and 22,337
Mcf, respectively, for the six months ended June 30, 2000 as compared to
the six months ended June 30, 1999. The decrease in volumes of gas sold
was primarily due to the 1980-2 Program receiving an increased percentage
of sales on one well due to gas balancing during the six months ended June
30, 1999 and normal declines in production. Average oil and gas prices
increased to $27.84 per barrel and $2.84 per Mcf, respectively, for the
six months ended June 30, 2000 from $13.76 per barrel and $1.77 per Mcf,
respectively, for the six months ended June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $12,117 (20.0%) for the six months ended June
30, 2000 as compared to the six months ended June 30, 1999. This increase
was primarily due to workover expenses incurred on one well during the six
months ended June 30, 2000 in order to improve the recovery of reserves.
As a percentage of oil and gas sales, these expenses decreased to 20.6%
for the six months ended June 30, 2000 from 23.0% 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
decreased $9,636 (42.1%) for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. This decrease was
primarily due to an increase in the oil and gas prices used in the
valuation of remaining reserves at June 30, 2000 as compared to June 30,
1999 and
-18-
<PAGE>
the decreases in volumes of oil and gas sold. As a percentage of oil and
gas sales, this expense decreased to 3.7% for the six months ended June
30, 2000 from 8.7% 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 increased $1,551 (3.0%) 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
15.2% for the six months ended June 30, 2000 from 19.7% for the six months
ended June 30, 1999. This percentage decrease was primarily due to the
increase in oil and gas sales.
-19-
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Programs do not hold any market risk sensitive instruments.
-20-
<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 1980-1 Program'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 1980-2 Program'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 Form 8-K.
None.
-21-
<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.
DYCO OIL AND GAS PROGRAM 1980-1 LIMITED
PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1980-2 LIMITED
PARTNERSHIP
(Registrant)
BY: DYCO PETROLEUM CORPORATION
General Partner
Date: August 1, 2000 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: August 1, 2000 By: /s/Patrick M. Hall
-------------------------------
(Signature)
Patrick M. Hall
Chief Financial Officer
-22-
<PAGE>
INDEX TO EXHIBITS
NUMBER DESCRIPTION
------ -----------
27.1 Financial Data Schedule containing summary financial information
extracted from the Dyco Oil and Gas Program 1980-1 Limited
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 Dyco Oil and Gas Program 1980-2 Limited
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.
-23-
