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 September 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 13 pages.
There are no exhibits.
<PAGE>
PARKER & PARSLEY 87-B, LTD.
(A Texas Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
September 30, December 31,
1995 1994
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $198,812 at September 30
and $130,556 at December 31 $ 199,312 $ 131,056
Accounts receivable - oil and gas sales 159,826 172,678
---------- ----------
Total current assets 359,138 303,734
Oil and gas properties - at cost, based on the
successful efforts accounting method 15,767,914 16,079,533
Accumulated depletion (9,217,395) (9,050,471)
---------- ----------
Net oil and gas properties 6,550,519 7,029,062
---------- ----------
$ 6,909,657 $ 7,332,796
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 145,922 $ 106,827
Accounts payable - other 351 -
---------- ----------
Total current liabilities 146,273 106,827
Partners' capital:
Limited partners (20,089 interests) 6,695,806 7,153,753
Managing general partner 67,578 72,216
---------- ----------
6,763,384 7,225,969
---------- ----------
$ 6,909,657 $ 7,332,796
========== ==========
The financial information included as of September 30, 1995 has been
prepared by management without audit by independent public accountants.
The accompanying notes are an integral part of these statements.
2
<PAGE>
PARKER & PARSLEY 87-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
--------------------- -----------------------
1995 1994 1995 1994
--------- --------- ---------- ----------
Revenues:
Oil and gas sales $ 373,695 $ 433,247 $1,212,219 $1,231,157
Interest income 3,567 1,945 8,862 3,818
Gain on abandoned property - - - 24,152
Salvage income from
equipment disposals 5,575 - 5,575 -
-------- -------- --------- ---------
Total revenues 382,837 435,192 1,226,656 1,259,127
Costs and expenses:
Production costs 191,006 204,526 577,724 675,509
General and administrative
expenses 10,843 12,451 36,367 36,062
Depletion 145,249 133,326 461,481 458,466
Abandoned property costs 3,780 - 3,780 11,254
Loss on sale of assets 16,377 - 16,728 -
Interest expense - - - 324
-------- -------- --------- ---------
Total costs and expenses 367,255 350,303 1,096,080 1,181,615
-------- -------- --------- ---------
Net income $ 15,582 $ 84,889 $ 130,576 $ 77,512
======== ======== ========= =========
Allocation of net income:
Managing general partner $ 156 $ 849 $ 1,306 $ 775
======== ======== ========= =========
Limited partners $ 15,426 $ 84,040 $ 129,270 $ 76,737
======== ======== ========= =========
Net income per limited
partnership interest $ .76 $ 4.18 $ 6.43 $ 3.82
======== ======== ========= =========
Distributions per limited
partnership interest $ 9.95 $ 9.21 $ 29.23 $ 24.01
======== ======== ========= =========
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>
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 (4,870) (482,257) (487,127)
Net income 775 76,737 77,512
--------- --------- ---------
Balance at September 30, 1994 $ 73,705 $7,301,189 $7,374,894
========= ========= =========
Balance at January 1, 1995 $ 72,216 $7,153,753 $7,225,969
Distributions (5,944) (587,217) (593,161)
Net income 1,306 129,270 130,576
--------- --------- ---------
Balance at September 30, 1995 $ 67,578 $6,695,806 $6,763,384
========= ========= =========
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>
PARKER & PARSLEY 87-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended
September 30,
1995 1994
Cash flows from operating activities:
Net income $ 130,576 $ 77,512
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 461,481 458,466
Gain on abandoned property - (24,152)
Salvage income from equipment disposals (5,575) -
Loss on sale of assets 16,728 -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 12,852 (23,966)
Increase in accounts payable 49,806 21,383
--------- ---------
Net cash provided by operating activities 665,868 509,243
Cash flows from investing activities:
Additions to oil and gas properties (10,026) (2,761)
Proceeds from equipment salvage on abandoned
properties - 12,715
Proceeds from salvage income from equipment
disposals 5,575 -
--------- ---------
Net cash provided by (used in) investing
activities (4,451) 9,954
Cash flows from financing activities:
Principal payments on note payable - (27,937)
Cash distributions to partners (593,161 (487,127)
--------- ---------
Net cash used in financing activities (593,161) (515,064)
--------- ---------
Net increase in cash and cash equivalents 68,256 4,133
Cash and cash equivalents at beginning of period 131,056 165,584
--------- ---------
Cash and cash equivalents at end of period $ 199,312 $ 169,717
========= =========
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>
PARKER & PARSLEY 87-B, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
(Unaudited)
NOTE 1.
In the opinion of management, the unaudited financial statements as of September
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 nine months ended September
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. 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. On
September 20, 1995, the Beaumont trial judge entered a summary judgment against
Southmark for the $13,790,000
6
<PAGE>
contingent fee sought by Price, together with prejudgment interest, and also
awarded Price an additional $5,498,525 in attorneys' fees. Southmark intends to
vigorously pursue appeal of the judgment. The summary judgment did not give
Price any relief against the Registrant, and 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 against the Registrant is currently scheduled
for April 1996.
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") which was merged into PPDLP on January 1, 1995. 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.
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 LP., 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 $16,927,537 in various prospects
that were drilled in Texas and Colorado. At September 30, 1995, the Registrant
had 57 producing oil and gas wells; four wells have been plugged and abandoned,
one in 1987, one in 1990, one in 1994 and one in 1995; and three wells have been
sold, one in 1994 and two in 1995.
RESULTS OF OPERATIONS
Nine months ended September 30, 1995 compared with nine months ended
September 30, 1994
REVENUES:
The Registrant's oil and gas revenues decreased to $1,212,219 from $1,231,157
for the nine months ended September 30, 1995 and 1994, respectively, a decrease
of 2%. The decrease in revenues resulted from a 13% decline in barrels of oil
produced and sold, offset by a 10% increase in mcf of gas produced and sold and
increases in the average prices received per barrel of oil and mcf of gas. For
the nine months ended September 30, 1995, 52,330 barrels of oil were sold
compared to 60,354 for the same period in 1994, a decrease of 8,024 barrels. For
the nine months ended September 30, 1995, 196,725 mcf of gas were sold compared
to 178,692 for the same period in 1994, an increase of 18,033 mcf. The decrease
in oil production was due to the decline characteristics of the Registrant's oil
and gas properties. The increase in gas production was the result of 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.
7
<PAGE>
The average price received per barrel of oil increased $1.46, or 9%, from $15.75
for the nine months ended September 30, 1994 to $17.21 for the same period in
1995 while the average price received per mcf of gas increased from $1.57 during
the nine months ended September 30, 1994 to $1.59 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 nine months ended September
30, 1995.
A gain of $24,152 was recognized for the nine months ended September 30, 1994
from equipment credits received on the abandonment of one uneconomical well. The
expense to plug and abandon the well was $11,254 in 1994. For the nine months
ended September 30, 1995, the expense to plug and abandon one uneconomical well
totaled $3,780. Salvage income of $5,575 from equipment disposals for the nine
months ended September 30, 1995 was derived from equipment credits received on a
well plugged and abandoned in a prior year.
COSTS AND EXPENSES:
Total costs and expenses decreased to $1,096,080 for the nine months ended
September 30, 1995 as compared to $1,181,615 for the same period in 1994, a
decrease of $85,535, or 7%. This decrease was due to declines in production
costs, abandoned property costs and interest expense, offset by increases in
general and administrative expenses ("G&A"), depletion and loss on sale of
assets.
Production costs were $577,724 for the nine months ended September 30, 1995 and
$675,509 for the same period in 1994 resulting in a $97,785 decrease, or 14%.
The decrease was due to a decline in well repair and maintenance costs.
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, from $36,062 for the nine months ended
September 30, 1994 to $36,367 for the same period in 1995. The Partnership
agreement limits G&A to 3% of gross oil and gas revenues.
A loss of $16,728 on the sale of two wells was recognized during the nine months
ended September 30, 1995. The loss resulted from reimbursement of net revenues
received of $351 after the effective date of sale on the sale of one fully
depleted well, in addition to the write-off of remaining capitalized basis of
$16,377 on the second well sold.
Depletion was $461,481 for the nine months ended September 30, 1995 compared to
$458,466 for the same period in 1994. This represented an increase in depletion
of $3,015. Depletion was computed quarterly on a property-by-property basis
utilizing the unit-of-production method based upon the dominant mineral
produced, generally oil. Oil production decreased 8,024 barrels for the nine
months ended September 30, 1995 from the same period in 1994. Depletion expense
for the nine months ended September 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 September 30, 1994 and June 30, 1994 was
calculated based on reserves computed utilizing an
8
<PAGE>
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.
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. 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 distribu tion 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. On
September 20, 1995, the Beaumont trial judge entered a summary judgment against
Southmark for the $13,790,000 contingent fee sought by Price, together with
prejudgment interest, and also awarded Price an additional $5,498,525 in
attorneys' fees. Southmark intends to vigorously pursue appeal of the judgment.
The summary judgment did not give Price any relief against the Registrant, and
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
against the Registrant is currently scheduled for April 1996.
Three months ended September 30, 1995 compared with three months ended
September 30, 1994
REVENUES:
The Registrant's oil and gas revenues decreased to $373,695 from $433,247 for
the three months ended September 30, 1995 and 1994, respectively, a decrease of
14%. The decrease in revenues resulted from a 15% decline in barrels of oil
produced and sold and decreases in the average prices received per barrel of oil
and mcf of gas, offset by an 8% increase in mcf of gas produced and sold. For
the three months ended September 30, 1995, 16,610 barrels of oil were sold
compared to 19,500 for the same period in 1994, a decrease of 2,890 barrels. For
the three months ended September 30, 1995, 69,377 mcf of gas were sold compared
to 64,404 for the same period in 1994, an increase of 4,973 mcf. The decrease in
oil production was due to the decline characteristics of the Registrant's oil
and gas properties. The increase in gas production was the result of operational
changes on several wells.
9
<PAGE>
The average price received per barrel of oil decreased $.76, or 4%, from $17.26
for the three months ended September 30, 1994 to $16.50 for the same period in
1995 while the average price received per mcf of gas decreased 4% from $1.50
during the three months ended September 30, 1994 to $1.44 in 1995.
Salvage income from equipment disposals of $5,575 for the three months ended
September 30, 1995 was derived from equipment credits received on a well plugged
and abandoned in a prior year.
COSTS AND EXPENSES:
Total costs and expenses increased to $367,255 for the three months ended
September 30, 1995 as compared to $350,303 for the same period in 1994, an
increase of $16,952, or 5%. This increase was due to increases in depletion,
abandoned property costs and loss on sale of assets, offset by declines in
production costs and G&A.
Production costs were $191,006 for the three months ended September 30, 1995 and
$204,526 for the same period in 1994 resulting in a $13,520 decrease, or 7%. The
decrease was due to a decline in well repair and maintenance costs, offset by an
increase 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, in aggregate, 13% from $12,451 for the three months ended
September 30, 1994 to $10,843 for the same period in 1995.
Depletion was $145,249 for the three months ended September 30, 1995 compared to
$133,326 for the same period in 1994. This represented an increase in depletion
of $11,923, or 9%. Oil production decreased 2,890 barrels for the three months
ended September 30, 1995 from the same period in 1994. Depletion expense for the
three months ended September 30, 1995 was calculated based on reserves computed
utilizing an oil price of $16.34 per barrel while depletion expense for the
three months ended September 30, 1994 was calculated based on reserves computed
utilizing an oil price of $18.25 per barrel.
A loss of $16,377 on the sale of one well was recognized during the three months
ended September 30, 1995. The loss was the result of the write-off of remaining
capitalized basis. Abandoned property costs of $3,780 were incurred during the
three months ended September 30, 1995 from the abandonment of one uneconomical
well. There was no abandonment activity for the same period in 1994.
LIQUIDITY AND CAPITAL RESOURCES
NET CASH PROVIDED BY OPERATING ACTIVITIES
Net cash provided by operating activities increased to $665,868 during the nine
months ended September 30, 1995, a 31% increase from the same period ended
September 30, 1994. This increase was due to an increase in oil and gas sales
and a decrease in production costs. The
10
<PAGE>
increase in oil and gas sales was the result of an increase in mcf of gas
produced and sold and higher average prices received per barrel of oil and mcf
of gas. The decrease in production costs was the result of less well repair and
maintenance costs during 1995.
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
The Registrant's investing activities during the nine months ended September 30,
1995 and 1994, respectively, included $10,026 and $2,761 for expenditures
related to repair and maintenance activity on several oil and gas properties
Proceeds of $12,715 were received from the salvage of equipment on one well
abandoned during the nine months ended September 30, 1994. For the same period
in 1995, the Registrant received $5,575 from the disposal of oil and gas
equipment on active properties.
NET CASH USED IN FINANCING ACTIVITIES
Cash was sufficient for the nine months ended September 30, 1995 to cover
distributions to the partners of $593,161 of which $587,217 was distributed to
the limited partners and $5,944 to the managing general partner. For the same
period ended September 30, 1994, cash was sufficient for distributions to the
partners of $487,127 of which $482,257 was distributed to the limited partners
and $4,870 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.
During the nine months ended September 30, 1994, principal payments of $27,937
were made to pay off an existing note payable.
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.
11
<PAGE>
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. 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 distribu tion 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. On
September 20, 1995, the Beaumont trial judge entered a summary judgment against
Southmark for the $13,790,000 contingent fee sought by Price, together with
prejudgment interest, and also awarded Price an additional $5,498,525 in
attorneys' fees. Southmark intends to vigorously pursue appeal of the judgment.
The summary judgment did not give Price any relief against the Registrant, and
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
against the Registrant is currently scheduled for April 1996.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - none
(b) Reports on Form 8-K - none
12
<PAGE>
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: November 9, 1995 By: /s/ Steven L. Beal
---------------------------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
13
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000811000
<NAME> 87B.TXT
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 199,312
<SECURITIES> 0
<RECEIVABLES> 159,826
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 359,138
<PP&E> 15,767,914
<DEPRECIATION> 9,217,395
<TOTAL-ASSETS> 6,909,657
<CURRENT-LIABILITIES> 146,273
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 6,763,384
<TOTAL-LIABILITY-AND-EQUITY> 6,909,657
<SALES> 1,212,219
<TOTAL-REVENUES> 1,226,656
<CGS> 0
<TOTAL-COSTS> 1,096,080
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 130,576
<INCOME-TAX> 0
<INCOME-CONTINUING> 130,576
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 130,576
<EPS-PRIMARY> 6.43
<EPS-DILUTED> 0
</TABLE>
