FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to __________
Commission File number 0-17022
SWIFT ENERGY INCOME PARTNERS 1986-C, LTD.
(Exact name of registrant as specified in its charter)
Texas 76-0200458
State or other (IRS Employer Identification Number)
jurisdiction of organization
16825 Northchase Drive, Suite 400
Houston, Texas 77060
(Address of principal executive offices)
(Zip Code)
(713) 874-2700
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes __X__ No_____
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-C, LTD.
INDEX
PART I. FINANCIAL INFORMATION PAGE
ITEM 1. Financial Statements
Balance Sheets
- June 30, 1995 and December 31, 1994 3
Statements of Operations
- Three month and six month periods ended
June 30, 1995 4
Statements of Cash Flows
- Six month periods ended June 30, 1995 and 1994 5
Notes to Financial Statements 6
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II. OTHER INFORMATION 9
SIGNATURES 10
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-C, LTD.
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
__________ ___________
(Unaudited)
<S> <C> <C>
ASSETS:
Current Assets:
Cash and cash equivalents $ 84,714 $ 58,817
Oil and gas sales receivable 114,936 100,716
________ ________
Total Current Assets 199,650 159,533
________ ________
Oil and Gas Properties, using full cost
accounting 9,498,225 9,488,456
Less-Accumulated depreciation, depletion
and amortization (8,941,859) (8,822,570)
________ ________
556,366 665,886
________ ________
$ 756,016 $ 825,419
======== ========
LIABILITIES AND PARTNERS' CAPITAL:
Current Liabilities:
Accounts payable and accrued
liabilities $ 47,130 $ 42,230
________ ________
Deferred Revenues 34,471 33,991
Partners' Capital 674,415 749,198
$ 756,016 $ 825,419
======== ========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-C, LTD.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
_____________________ _____________________
1995 1994 1995 1994
_________ _________ _________ _________
<S> <C> <C> <C> <C>
REVENUES:
Oil and gas sales $ 121,176 $ 84,369 $ 215,554 $ 207,940
Interest income 1,150 567 1,875 856
Other -- 49 -- 60
122,326 84,985 217,429 208,856
________ ________ ________ ________
COSTS AND EXPENSES:
Lease operating 58,352 40,159 98,558 88,628
Production taxes 7,391 5,270 13,383 12,903
Depreciation, depletion
and amortization -
Normal provision 36,308 25,292 73,242 59,118
Additional provision 46,047 -- 46,047 --
General and administrative 11,843 16,269 21,624 29,823
________ ________ ________ ________
159,941 86,990 252,854 190,472
NET INCOME (LOSS) $ (37,615) $ (2,005) $ (35,425) $ 18,384
======== ======== ======== ========
Limited Partners' net income (loss)
per unit $ (3.44) $ (.18) $ (3.24) $ 1.68
======== ======== ========= ========
</TABLE>
See accompanying note to financial statements.
4
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-C, LTD.
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
_________________________
1995 1994
_________________________
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Income (loss) $ (35,425) $ 18,384
Adjustments to reconcile income (loss) to
net cash provided by operations:
Depreciation, depletion and amortization 119,289 59,118
Deferred revenues 480 (7,148)
Change in assets and liabilities:
(Increase) decrease in oil and gas
sales receivable (14,220) 100,476
Increase (decrease) in accounts
payable and accrued liabilities 4,900 (4,243)
Net cash provided by (used in)
operating activities 75,024 166,587
___________ ____________
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties (9,769) (15,696)
Proceeds from sales of oil and gas properties -- 15,024
____________ _____________
Net cash provided by (used in)
investing activities (9,769) (672)
____________ _____________
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions to partners (39,358) (96,812)
____________ _____________
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 25,897 69,103
____________ _____________
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 58,817 1,132
____________ _____________
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 84,714 $ 70,235
============ =============
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-C, LTD.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(1) General Information -
The financial statements included herein have been prepared by
the Partnership and are unaudited except for the balance sheet at
December 31, 1994 which has been taken from the audited financial
statements at that date. The financial statements reflect
adjustments, all of which were of a normal recurring nature,
which are, in the opinion of the managing general partner
necessary for a fair presentation. Certain information and
footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting
principles have been omitted pursuant to the rules and
regulations of the Securities and Exchange Commission ("SEC").
The Partnership believes adequate disclosure is provided by the
information presented. The financial statements should be read
in conjunction with the audited financial statements and the
notes included in the latest Form 10-K.
(2) Deferred Revenues -
Deferred Revenues represent a gas imbalance liability
assumed as part of property acquisitions. The imbalance is
accounted for on the entitlements method, whereby the Partnership
records its share of revenue, based on its entitled amount. Any
amounts over or under the entitled amount are recorded as an
increase or decrease to deferred revenues.
(3) Concentrations of Credit Risk -
The Partnership extends credit to various companies in the
oil and gas industry which results in a concentration of credit
risk. This concentration of credit risk may be affected by
changes in economic or other conditions and may accordingly
impact the Partnership's overall credit risk. However, the
Managing General Partner believes that the risk is mitigated by
the size, reputation, and nature of the companies to which the
Partnership extends credit. In addition, the partnership
generally does not require collateral or other security to
support customer receivables.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-C, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
GENERAL
The Partnership was formed for the purpose of investing in
producing oil and gas properties located within the continental
United States. In order to accomplish this, the Partnership goes
through two distinct yet overlapping phases with respect to its
liquidity and results of operations. When the Partnership is
formed, it commences its "acquisition" phase, with all funds
placed in short-term investments until required for such property
acquisitions. The interest earned on these pre-acquisition
investments becomes the primary cash flow source for initial
partner distributions. As the Partnership acquires producing
properties, net cash from operations becomes available for
distribution, along with the investment income. After
partnership funds have been expended on producing oil and gas
properties, the Partnership enters its "operations" phase.
During this phase, oil and gas sales generate substantially all
revenues, and distributions to partners reflect those revenues
less all associated partnership expenses. The Partnership may
also derive proceeds from the sale of acquired oil and gas
properties, when the sale of such properties is economically
appropriate or preferable to continued operation.
LIQUIDITY AND CAPITAL RESOURCES
The Partnership has completed acquisition of producing oil
and gas properties, expending all of limited partners' net
commitments available for property acquisitions.
The Partnership does not allow for additional assessments
from the partners to fund capital requirements. However, funds
are available from partnership revenues, borrowings or proceeds
from the sale of partnership property. The Managing General
Partners believes that the funds currently available to the
partnership will be adequate to meet any anticipated capital
requirements.
RESULTS OF OPERATIONS
The following analysis explains changes in the revenue and
expense categories for the quarter ended June 30, 1995 (current
quarter) when compared to the quarter ended June 30, 1994
(corresponding quarter), and for the six months ended June 30,
1995 (current period), when compared to the six months ended June
30, 1994 (corresponding period).
Three Months ended June 30, 1995 and 1994
Oil and gas sales increased $36,807 or 44 percent in the
<PAGE>
second quarter of 1995 when compared to the corresponding quarter
in 1994, primarily due to increased oil and gas production. An
increase of 170 percent in oil production and 31 percent in gas
production had a significant impact on partnership performance.
However, current quarter gas prices declined 23 percent or
$.43/MCF when compared to second quarter 1994 gas prices,
partially offsetting the revenues from production increases.
Associated depreciation expense increased 44 percent or
$11,016.
The Partnership recorded an additional provision in
depreciation, depletion and amortization in the second quarter of
1995 for $46,047 when the present value, discounted at ten
percent, of estimated future net revenues from oil and gas
properties, using the guidelines of the Securities and Exchange
Commission, was below the fair market value originally paid for
oil and gas properties. The additional provision results from
the Managing General Partner's determination that the fair market
value paid for properties may or may not coincide with reserve
valuations determined according to guidelines of the Securities
and Exchange Commission.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-C, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Six Months ended June 30, 1995 and 1994
Oil and gas sales increased $7,614 or 4 percent in the first
six months of 1995 over the corresponding period in 1994. An
increase in the current period oil prices of 30 percent or
$3.86/BBL had a significant impact on partnership performance.
Also, current period oil and gas production increased 37 percent
and 23 percent, respectively, when compared to the corresponding
period in 1994, further contributing to increased revenue. A
decline in gas prices of 40 percent or $.85/MCF partially offset
the revenue increases.
Associated depreciation expense increased 24 percent or
$14,124.
The Partnership recorded an additional provision in
depreciation, depletion and amortization in the first six months
of 1995 for $46,047 when the present value, discounted at ten
percent, of estimated future net revenues from oil and gas
properties, using the guidelines of the Securities and Exchange
Commission, was below the fair market value originally paid for
oil and gas properties. The additional provision results from
the Managing General Partner's determination that the fair market
value paid for properties may or may not coincide with reserve
valuations determined according to guidelines of the Securities
and Exchange Commission.
During 1995, partnership revenues and costs will be shared
between the limited partners and general partners in a 90:10
ratio.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1986-C, LTD.
PART II - OTHER INFORMATION
ITEM 5. OTHER INFORMATION
-NONE-
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned
thereunto duly authorized.
SWIFT ENERGY INCOME
PARTNERS 1986-C, LTD.
(Registrant)
By: SWIFT ENERGY COMPANY
Managing General Partner
Date: August 11, 1995 By: /s/ John R. Alden
_______________ ______________________________
John R. Alden
Senior Vice President, and
Secretary and Principal
Financial Officer
Date: August 11, 1995 By: /s/ Alton D. Heckaman, Jr.
_______________ ______________________________
Alton D. Heckaman, Jr.
Vice President, Controller
and Principal Accounting Officer
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned
thereunto duly authorized.
SWIFT ENERGY INCOME
PARTNERS 1986-C, LTD.
(Registrant)
By: SWIFT ENERGY COMPANY
Managing General Partner
Date: August 11, 1995_ By: _______________________
John R. Alden
Senior Vice President,
Secretary and Principal
Financial Officer
Date: August 11, 1995 By: ________________________
Alton D. Heckaman, Jr.
Vice President, Controller
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 84,714
<SECURITIES> 0
<RECEIVABLES> 114,936
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 199,650
<PP&E> 9,498,225
<DEPRECIATION> 8,941,859
<TOTAL-ASSETS> 756,016
<CURRENT-LIABILITIES> 47,130
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 674,415
<TOTAL-LIABILITY-AND-EQUITY> 756,016
<SALES> 121,176
<TOTAL-REVENUES> 122,326
<CGS> 0
<TOTAL-COSTS> 148,098<F1>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (37,615)
<INCOME-TAX> 0
<INCOME-CONTINUING> (37,615)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (37,615)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Includes lease operating expense, production taxes, and depreciation, depletion
and amortization expense.
</FN>
</TABLE>
