United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 0-16552
ENEX OIL & GAS INCOME PROGRAM III - SERIES 4, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0179822
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 200, Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices)
Issuer's telephone number (713) 358-8401
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX OIL & GAS INCOME PROGRAM III - SERIES 4, L.P.
BALANCE SHEET
MARCH 31,
ASSETS 1995
(Unaudited)
CURRENT ASSETS:
Cash $ 9,898
Accounts receivable - oil & gas sales 19,768
Other current assets 4,586
Total current assets 34,252
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 1,748,411
Less accumulated depreciation and depletion 1,263,090
Property, net 485,321
TOTAL $ 519,573
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 22,924
Payable to affiliated limited partnership 680
Payable to general partner 26,754
Total current liabilities 50,358
NONCURRENT PAYABLE TO GENERAL PARTNER 152,825
PARTNERS' CAPITAL:
Limited partners 305,029
General partner 11,361
Total partners' capital 316,390
TOTAL $ 519,573
See accompanying notes to financial statements.
I-1
ENEX OIL & GAS INCOME PROGRAM III - SERIES 4, L.P.
STATEMENTS OF OPERATIONS
(UNAUDITED) THREE MONTHS ENDED
MARCH 31, MARCH 31,
1995 1994
REVENUES:
Oil and gas sales $ 39,388 $ 39,165
EXPENSES:
Depreciation and depletion 13,716 16,739
Lease operating expenses 23,776 22,317
Production taxes 2,645 1,781
General and administrative 8,945 11,510
Total expenses 49,082 52,347
NET LOSS $ (9,694) $ (13,182)
See accompanying notes to financial statements.
I-2
ENEX OIL AND GAS INCOME PROGRAM III - SERIES 4, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31, MARCH 31,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (9,694) $ (13,182)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and depletion 13,716 16,739
(Increase) decrease in:
Accounts receivable - oil & gas sales (852) 4,669
Other current assets (1,720) (118)
Increase in:
Accounts payable 8,989 3,822
Payable to general partner 5,245 6,866
Total adjustments 25,378 31,978
Net cash provided by operating activities 15,684 18,796
CASH FLOWS FROM INVESTING ACTIVITIES:
Property (additions) credits - development c 919 (540)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (7,506) (7,506)
NET INCREASE IN CASH 9,097 10,750
CASH AT BEGINNING OF YEAR 801 3,180
CASH AT END OF PERIOD $ 9,898 $ 13,930
See accompanying notes to financial statements.
I-3
ENEX OIL & GAS INCOME PROGRAM III - SERIES 4, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
1. The interim financial information included herein is unaudited;
however, such information reflects all adjustments (consisting solely
of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of results for the
interim periods.
2. A cash distribution was made to the limited partners of the Company in
the amount of $6,756 representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on January 31, 1995.
Item 2. Management's Discussion and Analysis or Plan of Operation.
First Quarter 1995 Compared to First Quarter 1994
Oil and gas sales for the first quarter increased from $39,165 in 1994 to
$39,388 in 1995. This represents an increase of $223 (1%). Oil sales
increased $13,926 or 56%. A 12% increase in oil production increased sales
by $3,068, while a 39% increase in average oil prices increased sales by an
additional $10,858. Gas sales decreased by $13,703 or 96%. A 92% decrease
in average gas prices reduced sales by $7,018. A 47% decrease in gas
production reduced sales by an additional $6,685. The increase in oil
production was primarily the result of the successful completion of a
waterflood project on the Shafter Lake field and the acquisition of
additional interest in the Concord acquisition in the fourth quarter of
1994. The higher average oil price corresponds with changes in the overall
market for the sale of oil. The lower gas production was primarily the
result of the shut-in of production from the Dorothy Stevens #1 well in the
Shana acquisition for evaluation. The lower average gas price was a result
of a relatively higher net profits payout on the Shana acquisition coupled
with lower prices in the overall market for the sale of gas.
Lease operating expenses increased from $22,317 in 1994 to $23,776 in 1995.
The increase of $1,459 (7%) is primarily due to higher operating expenses
incurred on the Corkscrew and Hightower acquisitions in 1995.
Depreciation and depletion expense decreased from $16,739 in the first
quarter of 1994 to $13,716 in the first quarter of 1995. This represents
a decrease of $3,023 (18%). The changes in production, noted above, caused
depreciation and depreciation expense to decrease by $271. A 17% decrease
in the depletion rate due to an upward revision of the oil and gas reserves
at December 31, 1994, reduced depreciation and depletion by an additional
$2,752.
General and administrative expenses decreased from $11,510 in 1994 to
$8,945 in 1995. This decrease of $2,565 (22%) is primarily due to less
staff time being required to manage the Company's operations.
CAPITAL RESOURCES AND LIQUIDITY
The Company's cash flow from operations is a direct result of the amount of
net proceeds realized from the sale of oil and gas production.
Accordingly, the changes in cash flow from 1994 to 1995 are primarily due
to the changes in oil and gas sales described above. It is the general
partner's intention to distribute substantially all of the Company's
available cash flow to the Company's partners.
The Company will continue to recover its reserves and distribute to the
limited partners the net proceeds realized from the sale of oil and gas
production after the payment of its debt obligations. Distribution amounts
are subject to change if net revenues are greater or less than expected.
Based upon current projected cash flows from the properties, it does not
appear that the Company will have sufficient cash to pay its operating
expenses, repay its debt obligations and pay distributions in 1995.
As of March 31, 1995, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.<PAGE>
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 hereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM III - 4, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By: /s/ R. E. Densford
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
May 11, 1995 By: /s/ James A. Klein
James A. Klein
Controller and Chief
Accounting Officer
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM III - SERIES 4, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By:
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
May 11, 1995 By:
James A. Klein
Controller and Chief
Accounting Officer
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 9,898
<SECURITIES> 0
<RECEIVABLES> 19,768
<ALLOWANCES> 0
<INVENTORY> 4,586
<CURRENT-ASSETS> 34,252
<PP&E> 1,748,411
<DEPRECIATION> (1,263,090)
<TOTAL-ASSETS> 519,573
<CURRENT-LIABILITIES> 50,358
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 316,390
<TOTAL-LIABILITY-AND-EQUITY> 519,573
<SALES> 39,388
<TOTAL-REVENUES> 39,388
<CGS> 40,137
<TOTAL-COSTS> 40,137
<OTHER-EXPENSES> 8,945
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (9,694)
<INCOME-TAX> 0
<INCOME-CONTINUING> (9,694)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (9,694)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
