<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
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 0-16693
COASTAL 1987 DRILLING PROGRAM, LTD.
(Exact name of registrant as specified in its charter)
TEXAS 76-0214087
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
COASTAL TOWER
NINE GREENWAY PLAZA
HOUSTON, TEXAS 77046-0995
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 877-1400
---------------
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, and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [_]
<PAGE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
The financial statements of the Coastal 1987 Drilling Program, Ltd., a Texas
limited partnership (the "Program"), are presented herein and are unaudited,
except for balances as of December 31, 1995, and therefore are subject to year-
end adjustments; however, all adjustments which are of a normal recurring nature
and, in the opinion of management, necessary for a fair statement of the results
of operations for the periods covered have been made. Such results are not
necessarily indicative of results to be expected for the year.
COASTAL 1987 DRILLING PROGRAM, LTD.
BALANCE SHEET
(Thousands of Dollars)
<TABLE>
<CAPTION>
MARCH 31, December 31,
ASSETS 1996 1995
----------- ------------
(Unaudited)
<S> <C> <C>
Current Assets:
Cash and cash equivalents....................... $ 13 $ 48
Accounts receivable - affiliates................ 94 122
------- -------
Total Current Assets.......................... 107 170
------- -------
Gas and Oil Properties - at full-cost............ 17,753 17,751
Less accumulated depreciation and amortization.. 16,857 16,828
------- -------
896 923
------- -------
$ 1,003 $ 1,093
======= =======
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Accounts payable - affiliates................... $ 23 $ 98
Long-Term Liabilities:
Accounts payable - affiliate.................... 87 86
Partners' Capital................................ 893 909
------ ------
$1,003 $1,093
====== ======
</TABLE>
See Note to Financial Statements.
1
<PAGE>
COASTAL 1987 DRILLING PROGRAM, LTD.
STATEMENT OF PARTNERS' CAPITAL
(Thousands of Dollars)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------
1996 1995
-------- ----------
(Unaudited)
<S> <C> <C>
General Partner:
Balance, beginning of period.. $ 9 $ 11
Earnings (loss)............... - -
Distributions................. - -
----- ------
Balance, end of period...... 9 11
----- ------
Limited Partners:
Balance, beginning of period.. 900 1,143
Earnings (loss)............... 33 (12)
Distributions................. (49) (37)
----- ------
Balance, end of period...... 884 1,094
----- ------
$ 893 $1,105
===== ======
</TABLE>
STATEMENT OF OPERATIONS
(Thousands of Dollars, Except per Limited Partnership Unit)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------
1996 1995
-------- ---------
(Unaudited)
<S> <C> <C>
Revenues:
Sale of gas and oil.............................. $ 180 $ 173
Interest and other............................... - 1
----- -----
180 174
----- -----
Costs and Expenses:
Lease operating.................................. 101 125
Administrative fee............................... 17 19
Depreciation and amortization.................... 29 42
----- -----
147 186
----- -----
Net Earnings (Loss)............................... $ 33 $ (12)
===== =====
Net Earnings (Loss) Per Limited Partnership Unit.. $2.33 $(.85)
===== =====
</TABLE>
See Note to Financial Statements.
2
<PAGE>
COASTAL 1987 DRILLING PROGRAM, LTD.
STATEMENT OF CASH FLOWS
(Thousands of Dollars)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------
1996 1995
-------- --------
(Unaudited)
<S> <C> <C>
Cash Flows From Operating Activities:
Net earnings (loss)................................................... $ 33 $ (12)
----- -----
Adjustments to reconcile net earnings (loss) to net cash provided by
operating activities:
Depreciation and amortization..................................... 29 42
Decrease in accounts receivable - affiliates...................... 28 15
Decrease in accounts payable - affiliates......................... (74) (10)
----- -----
Total adjustments............................................... (17) 47
----- -----
Net cash provided by operating activities..................... 16 35
----- -----
Cash Flows From Investing Activities:
Capital expenditures.................................................. (2) (6)
Proceeds from the sale of property and equipment...................... - -
----- -----
Net cash used by investing activities............................... (2) (6)
----- -----
Cash Flows From Financing Activities:
Distributions paid.................................................... (49) (37)
----- -----
Net decrease in cash and cash equivalents........................... (35) (8)
Cash and cash equivalents at beginning of the period................ 48 40
----- -----
Cash and cash equivalents at end of the period...................... $ 13 $ 32
===== =====
</TABLE>
NOTE TO FINANCIAL STATEMENTS
For additional information relative to operations and financial position,
reference is made to the Registrant's Annual Report on Form 10-K for the fiscal
year ended December 31, 1995. For purposes of the Statement of Cash Flows, cash
equivalents include time deposits, certificates of deposit and all highly liquid
instruments with original maturities of three months or less.
3
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
LIQUIDITY AND CAPITAL RESOURCES
The Partnership Payout balance decreased by $78,000 in the first quarter of
1996 to $9,610,000 as of March 31, 1996, compared to the original balance of
$14,141,000. Partnership Payout will not have been achieved at termination of
the Partnership on January 1, 1997.
A cash distribution of $2.80 per limited partnership unit was made for the
first quarter of 1996, bringing aggregate distributions since inception of the
Program to $228.30 per $1,000 unit.
RESULTS OF OPERATIONS
The Program's results of operations for the comparable three month periods
ended March 31, 1996 and 1995, are as follows:
Revenues from the sale of production in the first quarter of 1996 increased
$7,000 (4%) over the 1995 first quarter. Natural gas revenues were down $5,000
(8%) reflecting a decrease in production volumes to 30 million cubic feet in the
1996 first quarter compared with 42 million cubic feet in the 1995 first quarter
partially offset by an increase in the net weighted average price of natural gas
to $1.73 per thousand cubic feet in the first quarter of 1996 from $1.29 per
thousand cubic feet in the first quarter of 1995. Crude oil, condensate and
natural gas liquids revenues increased $12,000 (11%), reflecting an increase in
production volumes to 7,144 barrels from 7,086 barrels and an increase in the
net weighted average price of crude oil, condensate and natural gas liquids to
$16.19 per barrel in the 1996 first quarter from $14.63 per barrel in the 1995
first quarter.
The decrease in natural gas volumes was primarily attributable to normal
production declines.
Lease operating expense decreased $24,000 (19%) primarily due to decreased
operations and maintenance expenses. Depreciation and amortization expense
decreased $13,000 (31%) primarily as a result of decreased rates and decreased
production volumes.
4
<PAGE>
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
None.
ITEM 2. CHANGES IN SECURITIES.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 5. OTHER INFORMATION.
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits.
27 - Financial Data Schedule.
(b) Reports on Form 8-K.
No reports on Form 8-K were filed during the quarter ended March
31, 1996.
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.
COASTAL 1987 DRILLING PROGRAM, LTD.
(Registrant)
By Its General Partner,
Coastal Limited Ventures, Inc.
Date: May 13, 1996 By: COBY C. HESSE
----------------------------------
Coby C. Hesse
Senior Vice President
(As Authorized Officer and
Chief Accounting Officer)
5
<PAGE>
INDEX TO EXHIBITS
Exhibit
Number Description
- ------ -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE COASTAL
1987 DRILLING PROGRAM, LTD. FORM 10-Q QUARTERLY REPORT FOR THE PERIOD ENDED
MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 13
<SECURITIES> 0
<RECEIVABLES> 94
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 107
<PP&E> 17,753
<DEPRECIATION> 16,857
<TOTAL-ASSETS> 1,003
<CURRENT-LIABILITIES> 23
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 980
<TOTAL-LIABILITY-AND-EQUITY> 1,003
<SALES> 180
<TOTAL-REVENUES> 180
<CGS> 0
<TOTAL-COSTS> 147
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 33
<INCOME-TAX> 0
<INCOME-CONTINUING> 33
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 33
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
