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 0-17024
SWIFT ENERGY INCOME PARTNERS 1987-A, LTD.
(Exact name of registrant as specified in its charter)
Texas 76-0215132
(State or other (I.R.S. Employer
jurisdiction of organization) Identification No.)
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 1987-A, 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 and 1994 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 1987-A, LTD.
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
____________ ____________
(Unaudited)
<S> <C> <C>
ASSETS:
Current Assets:
Cash and cash equivalents $ 1,628 $ 1,385
Oil and gas sales receivable 218,362 238,703
___________ ___________
Total Current Assets 219,990 240,088
___________ ___________
Oil and Gas Properties, using full cost
accounting 13,977,581 13,926,844
Less-Accumulated depreciation, depletion
and amortization (10,548,977) (9,815,595)
___________ ___________
3,428,604 4,111,249
$ 3,648,594 $ 4,351,337
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL:
Current Liabilities:
Accounts payable and accrued liabilities $ 522,489 $ 533,021
Current portion of note payable 100,393 127,778
___________ ___________
Total Current Liabilities 622,882 660,799
___________ ___________
Note payable to a Bank, net
of current portion -- 36,504
Deferred Revenues 153,285 150,808
Partners' Capital 2,872,427 3,503,226
___________ ___________
$ 3,648,594 $ 4,351,337
=========== ===========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-A, 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 $ 232,794 $ 328,367 $ 455,511 $ 598,847
Interest income 96 9 103 11
Other 3,448 2,576 6,882 4,832
--------------- --------------- --------------- ---------------
236,338 330,952 462,496 603,690
--------------- --------------- --------------- ---------------
COSTS AND EXPENSES:
Lease operating 82,523 79,880 159,665 177,342
Production taxes 14,432 19,243 27,212 38,549
Depreciation, depletion
and amortization -
Normal provision 82,470 103,290 168,916 199,275
Additional provision 343,094 -- 564,466 --
General and administrative 25,794 45,262 52,386 75,541
Interest expense 17,245 8,363 24,371 16,774
--------------- --------------- --------------- ---------------
565,558 256,038 997,016 507,481
--------------- --------------- --------------- ---------------
NET INCOME (LOSS) $ (329,220) $ 74,914 $ (534,520) $ 96,209
=============== =============== ============== ===============
Limited Partners' net income (loss)
per unit $ (21.84) $ 4.97 $ (35.46) $ 6.38
=============== ============== ============== ==============
</TABLE>
See accompanying note to financial statements.
4
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-A, 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) $(534,520) $ 96,209
Adjustments to reconcile income (loss) to
net cash provided by operations:
Depreciation, depletion and amortization 733,382 199,275
Deferred revenues 2,477 15,623
Change in assets and liabilities:
(Increase) decrease in oil and gas sales receivable 20,341 (43,674)
Increase (decrease) in accounts payable
and accrued liabilities (10,532) 27,026
_________ ___________
Net cash provided by (used in) operating activities 211,148 294,459
_________ ___________
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties (76,018) (70,012)
Proceeds from sales of oil and gas properties 25,281 62,125
_________ ___________
Net cash provided by (used in) investing activities (50,737) (7,887)
_________ ___________
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions to partners (96,279) (222,583)
Payments on note payable (63,889) (63,889)
_________ ___________
Net cash provided by (used in) financing activities (160,168) (286,472)
_________ ___________
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 243 100
_________ ___________
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,385 1,162
_________ ___________
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,628 $ 1,262
========= ===========
Supplemental disclosure of cash flow information:
Cash paid during the period for interest $ 7,170 $ 9,822
========= ===========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-A, 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.
6
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-A, 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 result 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'
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 declined $95,573 or 29 percent in the second
7
<PAGE>
quarter of 1995 when compared to the corresponding quarter in
1994, primarily due to decreased gas prices. A decline in gas
prices of 25 percent or $.52/MCF had a significant impact on
partnership performance. Also, current quarter oil and gas
production declined 22 percent and 15 percent, respectively, when
compared to second quarter 1994 production volumes, further
contributing to decreased revenues. Increased oil prices of 11
percent or $1.50/BBL partially offset the revenue declines.
Associated depreciation expense decreased 20 percent or
$20,820.
The Partnership recorded an additional provision in
depreciation, depletion and amortization in the second quarter of
1995 for $343,094 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.
8
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-A, 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 decreased $143,336 or 24 percent in the
first six months of 1995 over the corresponding period in 1994.
A decline in the current period gas prices of 28 percent or
$.59/MCF had a significant impact on partnership performance.
Also, current period gas and oil production declined 11 percent
and 18 percent, respectively, when compared to the corresponding
period in 1994, further contributing to decreased income.
Increased oil prices of 31 percent or $3.68/BBL partially offset
the revenue declines.
Associated depreciation expense decreased 15 percent or
$30,359.
The Partnership recorded an additional provision in
depreciation, depletion and amortization in the first six months
of 1995 for $564,466 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.
9
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-A, LTD.
PART II - OTHER INFORMATION
ITEM 5. OTHER INFORMATION
-NONE-
10
<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 1987-A, LTD.
(Registrant)
By: SWIFT ENERGY COMPANY
Managing General Partner
Date: August 11, 1995 By: /s/ John R. Alden
----------------------- ------------------------
John R. Alden
Senior Vice President,
Secretary and Principal
Financial Officer
Date: August 12, 1995 By: /s/Alton D. Heckaman, Jr.
----------------------- -------------------------
Alton D. Heckaman, Jr.
Vice President,
Controller and Principal
Accounting Officer
11
<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 1987-A, 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 and Principal
Accounting Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the filer's
balance sheet and statement of operations as of June 30, 1995, and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 1,628
<SECURITIES> 0
<RECEIVABLES> 218,362
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 219,990
<PP&E> 13,977,581
<DEPRECIATION> 10,548,977
<TOTAL-ASSETS> 3,648,594
<CURRENT-LIABILITIES> 622,882
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,872,427
<TOTAL-LIABILITY-AND-EQUITY> 3,648,594
<SALES> 455,511
<TOTAL-REVENUES> 462,496
<CGS> 0
<TOTAL-COSTS> 920,259<F1>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 24,371
<INCOME-PRETAX> (534,520)
<INCOME-TAX> 0
<INCOME-CONTINUING> (534,520)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (534,520)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Includes lease operating expense, production taxes, and depreciation, depletion
and amortization expense.
</FN>
</TABLE>
