<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
/x/ Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 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 No. 33-12244-02
PARKER & PARSLEY 87-B, LTD.
(Exact name of Registrant as specified in its charter)
Texas 75-2185706
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
303 West Wall, Suite 101,
Midland, Texas 79701
(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code: (915)683-4768
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes /x/ No / /
Page 1 of 15 pages.
There are no exhibits.
<PAGE> 2
PARKER & PARSLEY 87-B, LTD.
(A Texas Limited Partnership)
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
BALANCE SHEETS
June 30, December 31,
1995 1994
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including
interest bearing deposits of $185,243
at June 30 and $130,556 at December 31 $ 185,743 $ 131,056
Accounts receivable - oil and gas sales 181,877 172,678
----------- -----------
Total current assets 367,620 303,734
Oil and gas properties - at cost, based
on the successful efforts accounting
method 15,896,309 16,079,533
Accumulated depletion (9,185,755) (9,050,471)
----------- -----------
Net oil and gas properties 6,710,554 7,029,062
----------- -----------
$ 7,078,174 $ 7,332,796
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 128,062 $ 106,827
Accounts payable - other 351 -
----------- -----------
Total current liabilities 128,413 106,827
Partners' capital:
Limited partners (20,089 interests) 6,880,308 7,153,753
Managing general partner 69,453 72,216
----------- -----------
6,949,761 7,225,969
----------- -----------
$ 7,078,174 $ 7,332,796
=========== ===========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these statements.
2
<PAGE> 3
PARKER & PARSLEY 87-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1995 1994 1995 1994
---------- ---------- ---------- ----------
Revenues:
Oil and gas sales $ 405,757 $ 432,560 $ 838,524 $ 797,910
Interest income 2,990 1,195 5,295 1,873
Gain on abandoned
property - 1,794 - 24,152
--------- --------- --------- ---------
Total revenues 408,747 435,549 843,819 823,935
Costs and expenses:
Production costs 176,748 220,251 386,718 470,983
General and adminis-
trative expenses 12,541 12,650 25,524 23,611
Depletion 148,730 144,159 316,232 325,140
Abandoned property
costs - 2,760 - 11,254
Loss on sale of assets 351 - 351 -
Interest expense - (7) - 324
--------- --------- --------- ---------
Total costs and
expenses 338,370 379,813 728,825 831,312
--------- --------- --------- ---------
Net income (loss) $ 70,377 $ 55,736 $ 114,994 $ (7,377)
========= ========= ========= =========
Allocation of net
income (loss):
Managing general
partner $ 704 $ 557 $ 1,150 $ (74)
========= ========= ========= =========
Limited partners $ 69,673 $ 55,179 $ 113,844 $ (7,303)
========= ========= ========= =========
Net income (loss) per
limited partnership
interest $ 3.47 $ 2.75 $ 5.67 $ (.36)
========= ========= ========= =========
Distributions per limited
partnership interest $ 9.55 $ 7.80 $ 19.28 $ 14.80
========= ========= ========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these statements.
3
<PAGE> 4
PARKER & PARSLEY 87-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
----------- ----------- -----------
Balance at January 1, 1994 $ 77,800 $ 7,706,709 $ 7,784,509
Distributions (3,002) (297,318) (300,320)
Net loss (74) (7,303) (7,377)
---------- ---------- ----------
Balance at June 30, 1994 $ 74,724 $ 7,402,088 $ 7,476,812
========== ========== ==========
Balance at January 1, 1995 $ 72,216 $ 7,153,753 $ 7,225,969
Distributions (3,913) (387,289) (391,202)
Net income 1,150 113,844 114,994
---------- ---------- ----------
Balance at June 30, 1995 $ 69,453 $ 6,880,308 $ 6,949,761
========== ========== ==========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these statements.
4
<PAGE> 5
PARKER & PARSLEY 87-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
June 30,
1995 1994
---------- ----------
Cash flows from operating activities:
Net income (loss) $ 114,994 $ (7,377)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion 316,232 325,140
Gain on abandoned property - (24,152)
Loss on sale of assets 351 -
Changes in assets and liabilities:
Increase in accounts receivable (9,199) (46,429)
Increase in accounts payable 33,096 18,953
--------- ---------
Net cash provided by operating activities 455,474 266,135
Cash flows from investing activities:
Additions to oil and gas properties (9,585) (1,678)
Proceeds from equipment salvage on
abandoned property - 8,907
--------- ---------
Net cash provided by (used in)
investing activities (9,585) 7,229
Cash flows from financing activities:
Principal payments on note payable - (27,937)
Cash distributions to partners (391,202) (300,320)
--------- ---------
Net cash used in financing activities (391,202) (328,257)
--------- ---------
Net increase (decrease) in cash and
cash equivalents 54,687 (54,893)
Cash and cash equivalents at beginning
of period 131,056 165,584
--------- ---------
Cash and cash equivalents at end of period $ 185,743 $ 110,691
========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these statements.
5
<PAGE> 6
PARKER & PARSLEY 87-B, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
(Unaudited)
NOTE 1.
In the opinion of management, the unaudited financial statements as of
June 30, 1995 of Parker & Parsley 87-B, Ltd. (the "Registrant") include
all adjustments and accruals consisting only of normal recurring accrual
adjustments which are necessary for a fair presentation of the results
for the interim period. However, the results of operations for the six
months ended June 30, 1995 are not necessarily indicative of the results
for the full year ending December 31, 1995.
The financial statements should be read in conjunction with the
financial statements and the notes thereto contained in the Registrant's
Report on Form 10-K for the year ended December 31, 1994, as filed with
the Securities and Exchange Commission, a copy of which is available
upon request by writing to Steven L. Beal, Senior Vice President, 303
West Wall, Suite 101, Midland, Texas 79701.
NOTE 2.
On May 25, 1993, a final settlement agreement was negotiated, drafted
and finally executed, ending litigation which had begun on September 5,
1989, when the Registrant filed suit along with other parties against
Dresser Industries, Inc.; Titan Services, Inc.; BJ-Titan Services
Company; BJ-Hughes Holding Company; Hughes Tool Company; Baker Hughes
Production Tools, Inc.; and Baker Hughes Incorporated alleging that the
defendants had intentionally failed to provide the materials and
services ordered and paid for by the Registrant and other parties in
connection with the fracturing and acidizing of 523 wells, and then
fraudulently concealed the shorting practice from the managing general
partner, Parker & Parsley Development L.P. ("PPDLP") (see Item 2). The
May 25, 1993 settlement agreement called for a payment of $115 million
in cash by the defendants. The managing general partner received the
funds, deducted incurred legal expenses, accrued interest, determined
the general partner's portion of the funds and calculated any
inter-partnership allocations. A distribution of $91,000,000 was made to
the working interest owners, including the Registrant, on July 30, 1993.
6
<PAGE> 7
The limited partners received their distribution of $5,741,966, or
$285.83 per limited partnership interest, in September 1993.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G.
"Zeke" Lancaster in the Federal Court lawsuit, filed suit in State Court
in Beaumont against all of the plaintiff partnerships, including the
Registrant and others, alleging his entitlement to 12% of the settlement
proceeds. Price's lawsuit claim for approximately $13.8 million is
predicated on a purported contract entered into with Southmark
Corporation in August 1988, in which he allegedly binds the Registrant
and the other defendants, as well as Southmark. Although PPDLP believes
the lawsuit is without merit and intends to vigorously defend it, PPDLP
is holding in reserve approximately 12.5% of the total settlement
pending final resolution of the litigation by the court. Trial is
currently scheduled for April 1996 and, assuming a successful defense,
upon payment of the costs associated with the litigation, a second
distribution will be made consisting of the balance of the settlement
funds, including any accrued interest.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The Registrant was formed November 25, 1987. The managing general
partner of the Registrant at December 31, 1994 was Parker & Parsley
Development Company ("PPDC"). On January 1, 1995, PPDLP, a Texas
limited partnership, became the sole managing general partner of the
Registrant, by acquiring the rights and assuming the obligations of
PPDC. PPDC was merged into PPDLP on January 1, 1995. PPDLP acquired
PPDC's rights and obligations as managing general partner of the
Registrant in connection with the merger of PPDC, P&P Producing, Inc.
and Spraberry Development Corporation into MidPar L.P., which survived
the merger with a change of name to PPDLP. The sole general partner of
PPDLP is Parker & Parsley Petroleum USA, Inc. PPDLP has the power and
authority to manage, control and administer all Registrant affairs. The
limited partners contributed $20,089,000 representing 20,089 interests
($1,000 per interest) sold to a total of 1,603 subscribers.
Since its formation, the Registrant invested $16,925,946 in various
prospects that were drilled in Texas and Colorado. At June 30, 1995,
the Registrant had 59 producing oil and gas wells; one well was a dry
hole from a previous year; two wells were plugged and abandoned, one in
1990 and one in 1994; and two wells have been sold, one in 1994 and one
in 1995.
7
<PAGE> 8
Results of Operations
Six months ended June 30, 1995 compared with six months ended
June 30, 1994
Revenues:
The Registrant's oil and gas revenues increased to $838,524 from
$797,910 for the six months ended June 30, 1995 and 1994, respectively,
an increase of 5%. The increase in revenues resulted from an 11%
increase in mcf of gas produced and sold and increases in the average
prices received per barrel of oil and mcf of gas, offset by a 13%
decrease in barrels of oil produced and sold. For the six months ended
June 30, 1995, 35,720 barrels of oil were sold compared to 40,854 for
the same period in 1994, a decrease of 5,134 barrels. For the six
months ended June 30, 1995, 127,348 mcf of gas were sold compared to
114,288 for the same period in 1994, an increase of 13,060 mcf. The
decrease in oil production was due to the decline characteristics of the
Registrant's oil and gas properties, while the increase in gas
production resulted from operational changes on several wells.
Management expects a certain amount of decline in production in the future
until the Registrant's economically recoverable reserves are fully
depleted.
The average price received per barrel of oil increased $2.50 from $15.03
for the six months ended June 30, 1994 to $17.53 for the same period in
1995 while the average price received per mcf of gas increased from
$1.61 during the six months ended June 30, 1994 to $1.67 in 1995. The
market price for oil and gas has been extremely volatile in the past
decade, and management expects a certain amount of volatility to
continue in the foreseeable future. The Registrant may therefore sell
its future oil and gas production at average prices lower or higher than
that received during the six months ended June 30, 1995.
Costs and Expenses:
Total costs and expenses decreased to $728,825 for the six months ended
June 30, 1995 as compared to $831,312 for the same period in 1994, a
decrease of $102,487, or 12%. This decrease was due to declines in
production costs, depletion, abandoned property costs and interest
expense, offset by increases in general and administrative expenses
("G&A") and loss on sale of assets.
8
<PAGE> 9
Production costs were $386,718 for the six months ended June 30, 1995
and $470,983 for the same period in 1994 resulting in an $84,265
decrease, or 18%. This decrease was primarily the result of less well
repair and maintenance expenses and a decline in ad valorem taxes.
G&A's components are independent accounting and engineering fees,
computer services, postage and managing general partner personnel costs.
During this period, G&A increased, in aggregate, 8% from $23,611 for the
six months ended June 30, 1994 to $25,524 for the same period in 1995.
The Partnership agreement limits G&A to 3% of gross oil and gas
revenues.
A loss of $351 was recognized during the six months ended June 30, 1995
from the sale of one fully depleted well. The loss was the result of
reimbursement of net revenues received after the effective date of sale.
For the six months ended June 30, 1994, a gain of $24,152 was recognized
from equipment credits received on the abandonment of one fully depleted
well. The expense to plug and abandon this well was $11,254 during the
same period in 1994. There was no abandonment activity during the six
months ended June 30, 1995.
Depletion was $316,232 for the six months ended June 30, 1995 compared
to $325,140 for the same period in 1994. This represented a decrease in
depletion of $8,908, or 3%. Depletion was calculated on a
property-by-property basis utilizing the unit-of-production method based
upon the dominant mineral produced, generally oil, and using oil prices
in effect at the end of the respective quarter. Oil production decreased
5,134 barrels for the six months ended June 30, 1995 from the same period
in 1994. Depletion expense for the six months ended June 30, 1995 was
calculated based on reserves computed utilizing an oil price of $16.34
per barrel. Comparatively, depletion expense for the three months ended
June 30, 1994 was calculated based on reserves computed utilizing an oil
price of $18.25 per barrel while depletion expense for the three months
ended March 31, 1994 was calculated based on reserves computed utilizing
an oil price of $12.75 per barrel.
Interest expense was $324 for the six months ended June 30, 1994. There
was no interest expense for the same period in 1995. The decrease was
due to the note payable being paid off during the first quarter of 1994.
On May 25, 1993, a final settlement agreement was negotiated, drafted
and finally executed, ending litigation which had begun on September 5,
1989, when the Registrant filed suit along with other parties against
Dresser Industries, Inc.; Titan Services, Inc.; BJ-Titan Services
9
<PAGE> 10
Company; BJ-Hughes Holding Company; Hughes Tool Company; Baker Hughes
Production Tools, Inc.; and Baker Hughes Incorporated alleging that the
defendants had intentionally failed to provide the materials and
services ordered and paid for by the Registrant and other parties in
connection with the fracturing and acidizing of 523 wells, and then
fraudulently concealed the shorting practice from PPDLP. The May 25,
1993 settlement agreement called for a payment of $115 million in cash
by the defendants. The managing general partner received the funds,
deducted incurred legal expenses, accrued interest, determined the
general partner's portion of the funds and calculated any
inter-partnership allocations. A distribution of $91,000,000 was made
to the working interest owners, including the Registrant, on July 30,
1993. The limited partners received their distribution of $5,741,966, or
$285.83 per limited partnership interest, in September 1993.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G.
"Zeke" Lancaster in the Federal Court lawsuit, filed suit in State Court
in Beaumont against all of the plaintiff partnerships, including the
Registrant and others, alleging his entitlement to 12% of the settlement
proceeds. Price's lawsuit claim for approximately $13.8 million is
predicated on a purported contract entered into with Southmark
Corporation in August 1988, in which he allegedly binds the Registrant
and the other defendants, as well as Southmark. Although PPDLP believes
the lawsuit is without merit and intends to vigorously defend it, PPDLP
is holding in reserve approximately 12.5% of the total settlement
pending final resolution of the litigation by the court. Trial is
currently scheduled for April 1996 and, assuming a successful defense,
upon payment of the costs associated with the litigation, a second
distribution will be made consisting of the balance of the settlement
funds, including any accrued interest.
Three months ended June 30, 1995 compared with three months ended
June 30, 1994
Revenues:
The Registrant's oil and gas revenues decreased to $405,757 from
$432,560 for the three months ended June 30, 1995 and 1994,
respectively, a decrease of $26,803, or 6%. The decrease in revenues
resulted from a 17% decrease in barrels of oil produced and sold and a
decrease in the average price received per mcf of gas, offset by an
increase in mcf of gas produced and sold and an increase in the average
price received per barrel of oil. For the three months ended June 30,
1995, 16,835 barrels of oil were sold compared to 20,204 for the same
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<PAGE> 11
period in 1994, a decrease of 3,369 barrels. For the three months ended
June 30, 1995, 66,040 mcf of gas were sold compared to 59,323 for the
same period in 1994, an increase of 6,717 mcf. The decrease in oil
production was due to the decline characteristics of the Registrant's
oil and gas properties, while the increase in gas production was the
result of operational changes on several wells.
The average price received per barrel of oil increased $1.29 from $16.71
during the three months ended June 30, 1994 to $18.00 for the same
period in 1995, while the average price received per mcf of gas
decreased from $1.60 during the three months ended June 30, 1994 to
$1.55 in 1995.
Costs and Expenses:
Total costs and expenses decreased to $338,370 for the three months
ended June 30, 1995 as compared to $379,813 for the same period in 1994,
a decrease of $41,443, or 11%. This decrease was due to declines in
production costs, G&A, interest expense and abandoned property costs,
offset by increases in depletion and loss on sale of assets.
Production costs were $176,748 for the three months ended June 30, 1995
and $220,251 for the same period in 1994 resulting in a $43,503
decrease, or 20%. This decrease was primarily the result of less well
repair and maintenance expenses and a decline in ad valorem taxes.
G&A's components are independent accounting and engineering fees,
computer services, postage and managing general partner personnel costs.
During this period, G&A decreased from $12,650 for the three months
ended June 30, 1994 to $12,541 for the same period in 1995.
Depletion was $148,730 for the three months ended June 30, 1995 compared
to $144,159 for the same period in 1994. This represented an increase
in depletion of $4,571, or 3%. Depletion was calculated on a
property-by-property basis utilizing the unit-of-production method based
upon the dominant mineral produced, generally oil, and using oil prices
in effect at the end of the respective quarter. Oil production decreased
3,369 barrels for the three months ended June 30, 1995 from the same
period in 1994. Depletion expense for the three months ended June 30,
1995 was calculated based on reserves computed utilizing an oil price of
$16.34 per barrel. Comparatively, depletion expense for the three months
ended June 30, 1994 was calculated based on reserves computed utilizing
an oil price of $18.25 per barrel.
11
<PAGE> 12
A loss of $351 was recognized during the three months ended June 30,
1995 for the sale of one fully depleted well. The loss was the result
of reimbursement of net revenues received after the effective date of
sale.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased to $455,474 during
the six months ended June 30, 1995, a $189,339 increase from the same
period ended June 30, 1994. This increase was due to an increase in oil
and gas sales and decreases in production costs and abandoned property
costs. The increase in oil and gas sales was primarily the result of
higher average prices received for both oil and gas, in addition to an
increase in mcf of gas produced and sold, offset by a decline in barrels
of oil produced and sold. The decrease in production costs was due to
declines in well repair and maintenance costs. There were no abandoned
property costs for the six months ended June 30, 1995 as compared to the
same period in 1994.
Net Cash Provided by (Used in) Investing Activities
The Registrant's principal investing activities during the six months
ended June 30, 1995 was for repair and maintenance activity on various
oil and gas properties.
Proceeds of $8,907 were received from the salvage of equipment on one
abandoned property during the six months ended June 30, 1994 compared to
no abandonment activity during the same period in 1995.
Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1995 to cover
distributions to the partners of $391,202 of which $387,289 was
distributed to the limited partners and $3,913 to the managing general
partner. For the same period ended June 30, 1994, cash was sufficient
for distributions to the partners of $300,320 of which $297,318 was
distributed to the limited partners and $3,002 to the managing general
partner.
It is expected that future net cash provided by operating activities
will be sufficient for any capital expenditures and any distributions.
As the production from the properties declines, distributions are also
expected to decrease.
12
<PAGE> 13
Accounting Standard on Impairment of Long-Lived Assets
In March 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 121 - Accounting for Impairment of
Long-lived Assets and for Long-lived Assets to Be Disposed Of ("FAS
121") regarding the impairment of long-lived assets, identifiable
intangibles and goodwill related to those assets. FAS 121 is effective
for financial statements for fiscal years beginning after December 15,
1995, although earlier adoption is encouraged. The application of FAS
121 to oil and gas companies utilizing the successful efforts method
(such as the Registrant) will require periodic determination of whether
the book value of long-lived assets exceeds the future cash flows
expected to result from the use of such assets and, if so, will require
reduction of the carrying amount of the "impaired" assets to their
estimated fair values. There is currently a great deal of uncertainty
as to how FAS 121 will apply to oil and gas companies using the
successful efforts method, including uncertainty regarding the
determination of expected future cash flows from the relevant assets
and, if an impairment is determined to exist, their estimated fair
value. There is also uncertainty regarding the level at which the test
might be applied. Given this uncertainty, the Registrant is currently
unable to estimate the effect that FAS 121 will have on the Registrant's
results of operations for the period in which it is adopted.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On May 25, 1993, a final settlement agreement was negotiated, drafted
and finally executed, ending litigation which had begun on September 5,
1989, when the Registrant filed suit along with other parties against
Dresser Industries, Inc.; Titan Services, Inc.; BJ-Titan Services
Company; BJ-Hughes Holding Company; Hughes Tool Company; Baker Hughes
Production Tools, Inc.; and Baker Hughes Incorporated alleging that the
defendants had intentionally failed to provide the materials and
services ordered and paid for by the Registrant and other parties in
connection with the fracturing and acidizing of 523 wells, and then
fraudulently concealed the shorting practice from PPDLP. The May 25,
1993 settlement agreement called for a payment of $115 million in cash
by the defendants. PPDLP received the funds, deducted incurred legal
expenses, accrued interest, determined the general partner's portion of
the funds and calculated any inter-partnership allocations. A
13
<PAGE> 14
distribution of $91,000,000 was made to the working interest owners,
including the Registrant, on July 30, 1993. The limited partners
received their distribution of $5,741,966, or $285.83 per limited
partnership interest, in September 1993.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G.
"Zeke" Lancaster in the Federal Court lawsuit, filed suit in State Court
in Beaumont against all of the plaintiff partnerships, including the
Registrant and others, alleging his entitlement to 12% of the settlement
proceeds. Price's lawsuit claim for approximately $13.8 million is
predicated on a purported contract entered into with Southmark
Corporation in August 1988, in which he allegedly binds the Registrant
and the other defendants, as well as Southmark. Although PPDLP believes
the lawsuit is without merit and intends to vigorously defend it, PPDLP
is holding in reserve approximately 12.5% of the total settlement
pending final resolution of the litigation by the court. Trial is
currently scheduled for April 1996 and, assuming a successful defense,
upon payment of the costs associated with the litigation, a second
distribution will be made consisting of the balance of the settlement
funds, including any accrued interest.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - none
(b) Reports on Form 8-K - none
14
<PAGE> 15
PARKER & PARSLEY 87-B, LTD.
(A Texas Limited Partnership)
S I G N A T U R E S
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PARKER & PARSLEY 87-B, LTD.
By: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: August 8, 1995 By: /s/ Steven L. Beal
---------------------------------------
Steven L. Beal, Senior Vice
President and Chief Financial
Officer of PPUSA
15
<PAGE> 16
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000811000
<NAME> 87B.FDS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 185,743
<SECURITIES> 0
<RECEIVABLES> 181,877
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 367,620
<PP&E> 15,896,309
<DEPRECIATION> 9,185,755
<TOTAL-ASSETS> 7,078,174
<CURRENT-LIABILITIES> 128,413
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 6,949,761
<TOTAL-LIABILITY-AND-EQUITY> 7,078,174
<SALES> 838,524
<TOTAL-REVENUES> 843,819
<CGS> 0
<TOTAL-COSTS> 728,825
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 114,994
<INCOME-TAX> 0
<INCOME-CONTINUING> 114,994
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 114,994
<EPS-PRIMARY> 5.67
<EPS-DILUTED> 0
</TABLE>
