SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 2000
Commission File Number:
II-A: 0-16388 II-D: 0-16980 II-G: 0-17802
II-B: 0-16405 II-E: 0-17320 II-H: 0-18305
II-C: 0-16981 II-F: 0-17799
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
---------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
II-A 73-1295505
II-B 73-1303341
II-C 73-1308986
II-D 73-1329761
II-E 73-1324751
II-F 73-1330632
II-G 73-1336572
Oklahoma II-H 73-1342476
---------------------------- -------------------------------
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(918) 583-1791
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
------ ------
-1-
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 787,909 $ 723,978
Accounts receivable:
Oil and gas sales 973,256 702,392
---------- ----------
Total current assets $1,761,165 $1,426,370
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,333,224 3,541,487
DEFERRED CHARGE 732,855 732,855
---------- ----------
$5,827,244 $5,700,712
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 88,495 $ 112,953
Gas imbalance payable 123,801 123,801
---------- ----------
Total current liabilities $ 212,296 $ 236,754
ACCRUED LIABILITY $ 221,438 $ 221,438
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 333,701) ($ 380,195)
Limited Partners, issued and
outstanding, 484,283 units 5,727,211 5,622,715
---------- ----------
Total Partners' capital $5,393,510 $5,242,520
---------- ----------
$5,827,244 $5,700,712
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-2-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $1,405,952 $ 834,862
Interest income 8,567 2,621
Gain on sale of oil and gas
properties 309 -
Insurance settlement - 202,500
---------- ----------
$1,414,828 $1,039,983
COSTS AND EXPENSES:
Lease operating $ 237,657 $ 257,236
Production tax 80,209 42,773
Depreciation, depletion, and
amortization of oil and gas
properties 124,158 143,393
General and administrative
(Note 2) 132,202 135,570
---------- ----------
$ 574,226 $ 578,972
---------- ----------
NET INCOME $ 840,602 $ 461,011
========== ==========
GENERAL PARTNER - NET INCOME $ 94,378 $ 28,655
========== ==========
LIMITED PARTNERS - NET INCOME $ 746,224 $ 432,356
========== ==========
NET INCOME per unit $ 1.54 $ .90
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-3-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $2,645,688 $1,494,025
Interest income 16,502 4,690
Gain on sale of oil and gas
properties 309 -
Insurance settlement - 202,500
---------- ----------
$2,662,499 $1,701,215
COSTS AND EXPENSES:
Lease operating $ 555,635 $ 558,156
Production tax 140,093 73,013
Depreciation, depletion, and
amortization of oil and gas
properties 259,078 288,245
General and administrative
(Note 2) 305,290 307,628
---------- ----------
$1,260,096 $1,227,042
---------- ----------
NET INCOME $1,402,403 $ 474,173
========== ==========
GENERAL PARTNER - NET INCOME $ 161,907 $ 35,004
========== ==========
LIMITED PARTNERS - NET INCOME $1,240,496 $ 439,169
========== ==========
NET INCOME per unit $ 2.56 $ .91
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-4-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,402,403 $474,173
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 259,078 288,245
Gain on sale of oil and gas
properties ( 309) -
Increase in accounts receivable -
oil and gas sales ( 270,864) ( 68,266)
Increase in accounts receivable -
General Partner - ( 202,500)
Decrease in accounts payable ( 24,458) ( 82,564)
---------- --------
Net cash provided by operating
activities $1,365,850 $409,088
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 50,815) ($ 3,279)
Proceeds from sale of oil and
gas properties 309 10,835
---------- --------
Net cash provided (used) by investing
activities ($ 50,506) $ 7,556
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,251,413) ($234,170)
---------- --------
Net cash used by financing activities ($1,251,413) ($234,170)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 63,931 $182,474
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 723,978 213,480
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 787,909 $395,954
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-5-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2000 1999
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 514,081 $ 372,838
Accounts receivable:
Oil and gas sales 699,806 512,039
---------- ----------
Total current assets $1,213,887 $ 884,877
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,174,691 2,259,415
DEFERRED CHARGE 230,320 230,320
---------- ----------
$3,618,898 $3,374,612
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 65,502 $ 89,312
Gas imbalance payable 21,890 21,890
---------- ----------
Total current liabilities $ 87,392 $ 111,202
ACCRUED LIABILITY $ 97,529 $ 97,529
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 280,878) ($ 290,773)
Limited Partners, issued and
outstanding, 361,719 units 3,714,855 3,456,654
---------- ----------
Total Partners' capital $3,433,977 $3,165,881
---------- ----------
$3,618,898 $3,374,612
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-6-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- --------
REVENUES:
Oil and gas sales $1,016,153 $569,351
Interest income 5,053 1,215
Gain on sale of oil and gas
properties 1,226 -
---------- --------
$1,022,432 $570,566
COSTS AND EXPENSES:
Lease operating $ 175,230 $188,565
Production tax 61,204 30,033
Depreciation, depletion, and
amortization of oil and gas
properties 66,471 86,656
General and administrative
(Note 2) 99,286 101,378
---------- --------
$ 402,191 $406,632
---------- --------
NET INCOME $ 620,241 $163,934
========== ========
GENERAL PARTNER - NET INCOME $ 33,418 $ 11,602
========== ========
LIMITED PARTNERS - NET INCOME $ 586,823 $152,332
========== ========
NET INCOME per unit $ 1.62 $ .42
========== ========
UNITS OUTSTANDING 361,719 361,719
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-7-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $1,865,671 $1,085,725
Interest income 9,374 2,384
Gain on sale of oil and gas
properties 1,226 -
---------- ----------
$1,876,271 $1,088,109
COSTS AND EXPENSES:
Lease operating $ 375,149 $ 427,933
Production tax 100,995 64,089
Depreciation, depletion, and
amortization of oil and gas
properties 136,623 184,426
General and administrative
(Note 2) 228,560 228,914
---------- ----------
$ 841,327 $ 905,362
---------- ----------
NET INCOME $1,034,944 $ 182,747
========== ==========
GENERAL PARTNER - NET INCOME $ 56,743 $ 16,395
========== ==========
LIMITED PARTNERS - NET INCOME $ 978,201 $ 166,352
========== ==========
NET INCOME per unit $ 2.70 $ .46
========== ==========
UNITS OUTSTANDING 361,719 361,719
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-8-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
----------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,034,944 $182,747
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 136,623 184,426
Gain on sale of oil and gas
properties ( 1,226) -
Increase in accounts receivable -
oil and gas sales ( 187,767) ( 75,034)
Decrease in accounts payable ( 23,810) ( 11,916)
---------- --------
Net cash provided by operating
activities $ 958,764 $280,223
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 52,046) ($ 159)
Proceeds from sale of oil and
gas properties 1,373 20,551
---------- --------
Net cash provided (used) by investing
activities ($ 50,673) $ 20,392
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 766,848) ($244,096)
---------- --------
Net cash used by financing activities ($ 766,848) ($244,096)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 141,243 $ 56,519
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 372,838 107,021
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 514,081 $163,540
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-9-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2000 1999
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 240,940 $ 204,820
Accounts receivable:
Oil and gas sales 315,924 244,751
---------- ----------
Total current assets $ 556,864 $ 449,571
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,174,493 1,225,550
DEFERRED CHARGE 129,664 129,664
---------- ----------
$1,861,021 $1,804,785
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 27,759 $ 38,355
Gas imbalance payable 20,300 20,300
---------- ----------
Total current liabilities $ 48,059 $ 58,655
ACCRUED LIABILITY $ 54,063 $ 54,063
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 109,538) ($ 119,145)
Limited Partners, issued and
outstanding, 154,621 units 1,868,437 1,811,212
---------- ----------
Total Partners' capital $1,758,899 $1,692,067
---------- ----------
$1,861,021 $1,804,785
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-10-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
REVENUES:
Oil and gas sales $457,198 $283,362
Interest income 2,488 981
Gain on sale of oil and
gas properties 5,060 47
-------- --------
$464,746 $284,390
COSTS AND EXPENSES:
Lease operating $ 74,378 $ 74,782
Production tax 28,901 18,736
Depreciation, depletion, and
amortization of oil and gas
properties 35,116 51,114
General and administrative
(Note 2) 43,393 44,044
-------- --------
$181,788 $188,676
-------- --------
NET INCOME $282,958 $ 95,714
======== ========
GENERAL PARTNER - NET INCOME $ 31,208 $ 14,073
======== ========
LIMITED PARTNERS - NET INCOME $251,750 $ 81,641
======== ========
NET INCOME per unit $ 1.63 $ .52
======== ========
UNITS OUTSTANDING 154,621 154,621
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-11-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
REVENUES:
Oil and gas sales $861,415 $524,665
Interest income 4,870 1,860
Gain on sale of oil and
gas properties 5,060 47
-------- --------
$871,345 $526,572
COSTS AND EXPENSES:
Lease operating $159,409 $162,432
Production tax 50,828 42,250
Depreciation, depletion, and
amortization of oil and gas
properties 73,184 104,130
General and administrative
(Note 2) 98,674 98,605
-------- --------
$382,095 $407,417
-------- --------
NET INCOME $489,250 $119,155
======== ========
GENERAL PARTNER - NET INCOME $ 55,025 $ 21,101
======== ========
LIMITED PARTNERS - NET INCOME $434,225 $ 98,054
======== ========
NET INCOME per unit $ 2.81 $ .63
======== ========
UNITS OUTSTANDING 154,621 154,621
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-12-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $489,250 $119,155
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 73,184 104,130
Gain on sale of oil and
properties ( 5,060) ( 47)
Increase in accounts receivable -
oil and gas sales ( 71,173) ( 35,290)
Decrease in accounts payable ( 10,596) ( 1,188)
-------- --------
Net cash provided by operating
activities $475,605 $186,760
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 22,335) ($ 10,032)
Proceeds from sale of oil and
gas properties 5,268 8,301
-------- --------
Net cash used by investing activities ($ 17,067) ($ 1,731)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($422,418) ($133,476)
-------- --------
Net cash used by financing activities ($422,418) ($133,476)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 36,120 $ 51,553
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 204,820 66,617
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $240,940 $118,170
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-13-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 493,545 $ 547,528
Accounts receivable:
Oil and gas sales 635,292 461,491
---------- ----------
Total current assets $1,128,837 $1,009,019
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,174,502 2,315,758
DEFERRED CHARGE 415,812 415,812
---------- ----------
$3,719,151 $3,740,589
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 61,220 $ 76,408
Gas imbalance payable 114,149 114,149
---------- ----------
Total current liabilities $ 175,369 $ 190,557
ACCRUED LIABILITY $ 146,343 $ 146,343
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 210,220) ($ 236,260)
Limited Partners, issued and
outstanding, 314,878 units 3,607,659 3,639,949
---------- ----------
Total Partners' capital $3,397,439 $3,403,689
---------- ----------
$3,719,151 $3,740,589
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-14-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ---------
REVENUES:
Oil and gas sales $866,468 $620,800
Interest income 5,978 2,803
Gain on sale of oil and gas
properties 9,450 36,944
-------- --------
$881,896 $660,547
COSTS AND EXPENSES:
Lease operating $189,316 $200,823
Production tax 64,382 48,402
Depreciation, depletion, and
amortization of oil and gas
properties 63,920 107,473
General and administrative
(Note 2) 86,658 88,726
-------- --------
$404,276 $445,424
-------- --------
NET INCOME $477,620 $215,123
======== ========
GENERAL PARTNER - NET INCOME $ 52,917 $ 30,905
======== ========
LIMITED PARTNERS - NET INCOME $424,703 $184,218
======== ========
NET INCOME per unit $ 1.35 $ .59
======== ========
UNITS OUTSTANDING 314,878 314,878
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-15-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $1,698,551 $1,126,215
Interest income 12,058 5,887
Gain on sale of oil and gas
properties 6,976 36,944
---------- ----------
$1,717,585 $1,169,046
COSTS AND EXPENSES:
Lease operating $ 367,219 $ 446,075
Production tax 114,708 88,699
Depreciation, depletion, and
amortization of oil and gas
properties 136,668 204,416
General and administrative
(Note 2) 199,207 199,734
---------- ----------
$ 817,802 $ 938,924
---------- ----------
NET INCOME $ 899,783 $ 230,122
========== ==========
GENERAL PARTNER - NET INCOME $ 101,073 $ 35,378
========== ==========
LIMITED PARTNERS - NET INCOME $ 798,710 $ 194,744
========== ==========
NET INCOME per unit $ 2.54 $ .62
========== ==========
UNITS OUTSTANDING 314,878 314,878
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-16-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $899,783 $230,122
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 136,668 204,416
Gain on sale of oil and gas
properties ( 6,976) ( 36,944)
Increase in accounts receivable -
oil and gas sales ( 173,801) ( 60,325)
Increase (decrease) in accounts
payable ( 15,188) 3,719
-------- --------
Net cash provided by operating
activities $840,486 $340,988
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 34) ($ 15,817)
Proceeds from sale of oil and
gas properties 11,598 36,944
-------- --------
Net cash provided by investing
activities $ 11,564 $ 21,127
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($906,033) ($326,011)
-------- --------
Net cash used by financing activities ($906,033) ($326,011)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 53,983) $ 36,104
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 547,528 311,556
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $493,545 $347,660
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-17-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 436,558 $ 450,833
Accounts receivable:
Oil and gas sales 451,396 319,501
---------- ----------
Total current assets $ 887,954 $ 770,334
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,882,805 2,035,168
DEFERRED CHARGE 216,068 216,068
---------- ----------
$2,986,827 $3,021,570
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 34,098 $ 48,834
Gas imbalance payable 37,480 151,074
---------- ----------
Total current liabilities $ 71,578 $ 199,908
ACCRUED LIABILITY $ 42,252 $ 42,252
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 138,089) ($ 162,586)
Limited Partners, issued and
outstanding, 228,821 units 3,011,086 2,941,996
---------- ----------
Total Partners' capital $2,872,997 $2,779,410
---------- ----------
$2,986,827 $3,021,570
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-18-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- --------
REVENUES:
Oil and gas sales $661,135 $475,193
Interest income 4,675 2,708
Gain on sale of oil and
gas properties 3,499 23,039
-------- --------
$669,309 $500,940
COSTS AND EXPENSES:
Lease operating $115,888 $ 81,499
Production tax 48,014 31,974
Depreciation, depletion, and
amortization of oil and gas
properties 72,511 115,097
General and administrative
(Note 2) 63,419 64,844
-------- --------
$299,832 $293,414
-------- --------
NET INCOME $369,477 $207,526
======== ========
GENERAL PARTNER - NET INCOME $ 43,006 $ 14,845
======== ========
LIMITED PARTNERS - NET INCOME $326,471 $192,681
======== ========
NET INCOME per unit $ 1.43 $ .84
======== ========
UNITS OUTSTANDING 228,821 228,821
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-19-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
----------- --------
REVENUES:
Oil and gas sales $1,170,440 $803,244
Interest income 9,573 6,099
Gain on sale of oil and
gas properties 5,476 23,406
---------- --------
$1,185,489 $832,749
COSTS AND EXPENSES:
Lease operating $ 212,096 $206,644
Production tax 71,099 54,562
Depreciation, depletion, and
amortization of oil and gas
properties 153,773 226,035
General and administrative
(Note 2) 145,219 145,562
---------- --------
$ 582,187 $632,803
---------- --------
NET INCOME $ 603,302 $199,946
========== ========
GENERAL PARTNER - NET INCOME $ 73,212 $ 18,734
========== ========
LIMITED PARTNERS - NET INCOME $ 530,090 $181,212
========== ========
NET INCOME per unit $ 2.32 $ .79
========== ========
UNITS OUTSTANDING 228,821 228,821
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-20-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $603,302 $199,946
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 153,773 226,035
Gain on sale of oil and gas
properties ( 5,476) ( 23,406)
Increase in accounts receivable -
oil and gas sales ( 131,895) ( 72,041)
Decrease in accounts payable ( 14,736) ( 6,753)
Decrease in gas imbalance payable ( 113,594) -
-------- --------
Net cash provided by operating
activities $491,374 $323,781
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 5,661) ($ 1,217)
Proceeds from sale of oil and
gas properties 9,727 25,394
-------- --------
Net cash provided by investing
activities $ 4,066 $ 24,177
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($509,715) ($367,061)
-------- --------
Net cash used by financing activities ($509,715) ($367,061)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 14,275) ($ 19,103)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 450,833 376,779
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $436,558 $357,676
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-21-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 306,873 $ 280,098
Accounts receivable:
Oil and gas sales 403,525 286,995
---------- ----------
Total current assets $ 710,398 $ 567,093
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,678,826 1,792,192
DEFERRED CHARGE 34,366 34,366
---------- ----------
$2,423,590 $2,393,651
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 23,204 $ 27,269
Gas imbalance payable 5,208 5,208
---------- ----------
Total current liabilities $ 28,412 $ 32,477
ACCRUED LIABILITY $ 22,508 $ 22,508
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 105,047) ($ 112,893)
Limited Partners, issued and
outstanding, 171,400 units 2,477,717 2,451,559
---------- ----------
Total Partners' capital $2,372,670 $2,338,666
---------- ----------
$2,423,590 $2,393,651
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-22-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
--------- ---------
REVENUES:
Oil and gas sales $568,065 $376,944
Interest income 3,528 1,394
Gain on sale of oil and
gas properties 9,157 305
-------- --------
$580,750 $378,643
COSTS AND EXPENSES:
Lease operating $ 55,493 $ 57,692
Production tax 42,658 21,396
Depreciation, depletion, and
amortization of oil and gas
properties 55,070 82,687
General and administrative
(Note 2) 47,110 48,086
-------- --------
$200,331 $209,861
-------- --------
NET INCOME $380,419 $168,782
======== ========
GENERAL PARTNER - NET INCOME $ 42,646 $ 24,181
======== ========
LIMITED PARTNERS - NET INCOME $337,773 $144,601
======== ========
NET INCOME per unit $ 1.97 $ .84
======== ========
UNITS OUTSTANDING 171,400 171,400
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-23-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
----------- ---------
REVENUES:
Oil and gas sales $1,075,723 $771,173
Interest income 6,682 3,175
Gain on sale of oil and
gas properties 17,712 1,203
---------- --------
$1,100,117 $775,551
COSTS AND EXPENSES:
Lease operating $ 142,897 $190,462
Production tax 69,860 46,627
Depreciation, depletion, and
amortization of oil and gas
properties 123,820 193,700
General and administrative
(Note 2) 108,391 108,581
---------- --------
$ 444,968 $539,370
---------- --------
NET INCOME $ 655,149 $236,181
========== ========
GENERAL PARTNER - NET INCOME $ 75,991 $ 40,734
========== ========
LIMITED PARTNERS - NET INCOME $ 579,158 $195,447
========== ========
NET INCOME per unit $ 3.38 $ 1.14
========== ========
UNITS OUTSTANDING 171,400 171,400
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-24-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $655,149 $236,181
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 123,820 193,700
Gain on sale of oil and gas
properties ( 17,712) ( 1,203)
Increase in accounts receivable -
oil and gas sales ( 116,530) ( 55,996)
Increase (decrease) in accounts
payable ( 4,065) 565
-------- --------
Net cash provided by operating
activities $640,662 $373,247
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 13,840) ($ 9,873)
Proceeds from sale of oil and
gas properties 21,098 5,668
-------- --------
Net cash provided (used) by
investing activities $ 7,258 ($ 4,205)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($621,145) ($340,155)
-------- --------
Net cash used by financing activities ($621,145) ($340,155)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 26,775 $ 28,887
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 280,098 153,240
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $306,873 $182,127
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-25-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2000 1999
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 654,894 $ 633,816
Accounts receivable:
Oil and gas sales 856,237 605,936
---------- ----------
Total current assets $1,511,131 $1,239,752
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,612,138 3,857,776
DEFERRED CHARGE 77,306 77,306
---------- ----------
$5,200,575 $5,174,834
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 50,122 $ 58,877
Gas imbalance payable 11,288 11,288
---------- ----------
Total current liabilities $ 61,410 $ 70,165
ACCRUED LIABILITY $ 52,863 $ 52,863
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 220,247) ($ 266,026)
Limited Partners, issued and
outstanding, 372,189 units 5,306,549 5,317,832
---------- ----------
Total Partners' capital $5,086,302 $5,051,806
---------- ----------
$5,200,575 $5,174,834
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-26-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ---------
REVENUES:
Oil and gas sales $1,242,924 $852,551
Interest income 7,808 3,116
Gain on sale of oil and
gas properties 19,197 815
---------- --------
$1,269,929 $856,482
COSTS AND EXPENSES:
Lease operating $ 119,373 $123,871
Production tax 92,730 48,082
Depreciation, depletion, and
amortization of oil and gas
properties 118,013 175,972
General and administrative
(Note 2) 101,300 104,316
---------- --------
$ 431,416 $452,241
---------- --------
NET INCOME $ 838,513 $404,241
========== ========
GENERAL PARTNER - NET INCOME $ 93,691 $ 27,095
========== ========
LIMITED PARTNERS - NET INCOME $ 744,822 $377,146
========== ========
NET INCOME per unit $ 2.00 $ 1.02
========== ========
UNITS OUTSTANDING 372,189 372,189
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-27-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ----------
REVENUES:
Oil and gas sales $2,283,363 $1,704,587
Interest income 15,135 7,001
Gain on sale of oil and
gas properties 37,086 2,693
---------- ----------
$2,335,584 $1,714,281
COSTS AND EXPENSES:
Lease operating $ 306,543 $ 406,175
Production tax 150,447 102,620
Depreciation, depletion, and
amortization of oil and gas
properties 267,303 417,483
General and administrative
(Note 2) 234,335 235,466
---------- ----------
$ 958,628 $1,161,744
---------- ----------
NET INCOME $1,376,956 $ 552,537
========== ==========
GENERAL PARTNER - NET INCOME $ 160,239 $ 43,976
========== ==========
LIMITED PARTNERS - NET INCOME $1,216,717 $ 508,561
========== ==========
NET INCOME per unit $ 3.27 $ 1.37
========== ==========
UNITS OUTSTANDING 372,189 372,189
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-28-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,376,956 $552,537
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 267,303 417,483
Gain on sale of oil and gas
properties ( 37,086) ( 2,693)
Increase in accounts receivable -
oil and gas sales ( 250,301) ( 160,097)
Increase (decrease) in accounts
payable ( 8,755) 1,208
---------- --------
Net cash provided by operating
activities $1,348,117 $808,438
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 28,943) ($ 21,202)
Proceeds from sale of oil and
gas properties 44,364 12,182
---------- --------
Net cash provided (used) by
investing activities $ 15,421 ($ 9,020)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,342,460) ($705,090)
---------- --------
Net cash used by financing activities ($1,342,460) ($705,090)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 21,078 $ 94,328
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 633,816 333,168
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 654,894 $427,496
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-29-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2000 1999
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 162,922 $ 147,018
Accounts receivable:
Oil and gas sales 203,386 143,876
---------- ----------
Total current assets $ 366,308 $ 290,894
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 849,327 906,816
DEFERRED CHARGE 18,072 18,072
---------- ----------
$1,233,707 $1,215,782
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 12,330 $ 14,504
Gas imbalance payable 2,789 2,789
---------- ----------
Total current liabilities $ 15,119 $ 17,293
ACCRUED LIABILITY $ 11,016 $ 11,016
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 64,155) ($ 66,614)
Limited Partners, issued and
outstanding, 91,711 units 1,271,727 1,254,087
---------- ----------
Total Partners' capital $1,207,572 $1,187,473
---------- ----------
$1,233,707 $1,215,782
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-30-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- ----------
REVENUES:
Oil and gas sales $311,239 $198,563
Interest income 1,805 637
Gain on sale of oil and
gas properties 4,460 266
-------- --------
$317,504 $199,466
COSTS AND EXPENSES:
Lease operating $ 29,099 $ 30,059
Production tax 23,036 11,485
Depreciation, depletion, and
amortization of oil and gas
properties 27,818 41,852
General and administrative
(Note 2) 25,601 25,692
-------- --------
$105,554 $109,088
-------- --------
NET INCOME $211,950 $ 90,378
======== ========
GENERAL PARTNER - NET INCOME $ 11,620 $ 6,161
======== ========
LIMITED PARTNERS - NET INCOME $200,330 $ 84,217
======== ========
NET INCOME per unit $ 2.18 $ .92
======== ========
UNITS OUTSTANDING 91,711 91,711
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-31-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- ----------
REVENUES:
Oil and gas sales $533,848 $396,755
Interest income 3,481 1,450
Gain on sale of oil and
gas properties 8,598 700
-------- --------
$545,927 $398,905
COSTS AND EXPENSES:
Lease operating $ 74,406 $ 97,459
Production tax 36,050 24,126
Depreciation, depletion, and
amortization of oil and gas
properties 62,414 96,941
General and administrative
(Note 2) 58,360 58,080
-------- --------
$231,230 $276,606
-------- --------
NET INCOME $314,697 $122,299
======== ========
GENERAL PARTNER - NET INCOME $ 18,057 $ 9,920
======== ========
LIMITED PARTNERS - NET INCOME $296,640 $112,379
======== ========
NET INCOME per unit $ 3.23 $ 1.23
======== ========
UNITS OUTSTANDING 91,711 91,711
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-32-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $314,697 $122,299
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 62,414 96,941
Gain on sale of oil and gas
properties ( 8,598) ( 700)
Increase in accounts receivable -
oil and gas sales ( 59,510) ( 32,939)
Increase (decrease) in accounts
payable ( 2,174) 293
-------- --------
Net cash provided by operating
activities $306,829 $185,894
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 6,695) ($ 5,148)
Proceeds from sale of oil and
gas properties 10,368 2,900
-------- --------
Net cash provided (used) by investing
activities $ 3,673 ($ 2,248)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($294,598) ($166,227)
-------- --------
Net cash used by financing activities ($294,598) ($166,227)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 15,904 $ 17,419
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 147,018 78,275
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $162,922 $ 95,694
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-33-
<PAGE>
GEODYNE ENERGY INCOME PROGRAM II LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
JUNE 30, 2000
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of June 30, 2000, combined statements of
operations for the three and six months ended June 30, 2000 and 1999, and
combined statements of cash flows for the six months ended June 30, 2000
and 1999 have been prepared by Geodyne Resources, Inc., the General
Partner of the limited partnerships, without audit. Each limited
partnership is a general partner in the related Geodyne Production
Partnership in which Geodyne Resources, Inc. serves as the managing
partner. Unless the context indicates otherwise, all references to a
"Partnership" or the "Partnerships" are references to the limited
partnership and its related production partnership, collectively, and all
references to the "General Partner" are references to the general partner
of the limited partnerships and the managing partner of the production
partnerships, collectively. In the opinion of management the financial
statements referred to above include all necessary adjustments, consisting
of normal recurring adjustments, to present fairly the combined financial
position at June 30, 2000, the combined results of operations for the
three and six months ended June 30, 2000 and 1999, and the combined cash
flows for the six months ended June 30, 2000 and 1999.
Information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The accompanying interim
financial statements should be read in conjunction with the Partnerships'
Annual Report on Form 10-K filed for the year ended December 31, 1999. The
results of operations for the period ended June 30, 2000 are not
necessarily indicative of the results to be expected for the full year.
The Limited Partners' net income or loss per unit is based upon each $100
initial capital contribution.
-34-
<PAGE>
OIL AND GAS PROPERTIES
----------------------
The Partnerships follow the successful efforts method of accounting for
their oil and gas properties. Under the successful efforts method, the
Partnerships capitalize all property acquisition costs and development
costs incurred in connection with the further development of oil and gas
reserves. Property acquisition costs include costs incurred by the
Partnerships or the General Partner to acquire producing properties,
including related title insurance or examination costs, commissions,
engineering, legal and accounting fees, and similar costs directly related
to the acquisitions, plus an allocated portion, of the General Partner's
property screening costs. The acquisition cost to the Partnerships of
properties acquired by the General Partner is adjusted to reflect the net
cash results of operations, including interest incurred to finance the
acquisition, for the period of time the properties are held by the General
Partner prior to their transfer to the Partnerships. Leasehold impairment
is recognized based upon an individual property assessment and exploratory
experience. Upon discovery of commercial reserves, leasehold costs are
transferred to producing properties.
Depletion of the costs of producing oil and gas properties, amortization
of related intangible drilling and development costs, and depreciation of
tangible lease and well equipment are computed on the unit-of-production
method. The Partnerships' depletion, depreciation, and amortization
includes estimated dismantlement and abandonment costs, net of estimated
salvage value.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss reflected in income. When less than complete units of depreciable
property are retired or sold, the proceeds are credited to oil and gas
properties.
-35-
<PAGE>
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' Partnership Agreements provide for reimbursement to the
General Partner for all direct general and administrative expenses and for
the general and administrative overhead applicable to the Partnerships
based on an allocation of actual costs incurred. During the three months
ended June 30, 2000 the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
II-A $4,759 $127,443
II-B 4,096 95,190
II-C 2,704 40,689
II-D 3,795 82,863
II-E 3,203 60,216
II-F 2,005 45,105
II-G 3,356 97,944
II-H 1,466 24,135
During the six months ended June 30, 2000 the following payments were made
to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
II-A $50,404 $254,886
II-B 38,180 190,380
II-C 17,296 81,378
II-D 33,481 165,726
II-E 24,787 120,432
II-F 18,181 90,210
II-G 38,447 195,888
II-H 10,090 48,270
Affiliates of the Partnerships operate certain of the Partnerships'
properties and their policy is to bill the Partnerships for all customary
charges and cost reimbursements associated with their activities.
-36-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
-----------------------------------------------
This Quarterly Report contains certain forward-looking statements. The
words "anticipate", "believe", "expect", "plan", "intend", "estimate",
"project", "could", "may" and similar expressions are intended to identify
forward-looking statements. Such statements reflect management's current
views with respect to future events and financial performance. This
Quarterly Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions are
management's efforts to accurately reflect the condition and operation of
the Partnerships.
Use of forward-looking statements and estimates and assumptions involve
risks and uncertainties which include, but are not limited to, the
volatility of oil and gas prices, the uncertainty of reserve information,
the operating risk associated with oil and gas properties (including the
risk of personal injury, death, property damage, damage to the well or
producing reservoir, environmental contamination, and other operating
risks), the prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the general
economic climate, the supply and price of foreign imports of oil and gas,
the level of consumer product demand, and the price and availability of
alternative fuels. Should one or more of these risks or uncertainties
occur or should estimates or underlying assumptions prove incorrect,
actual conditions or results may vary materially and adversely from those
stated, anticipated, believed, estimated, and otherwise indicated.
GENERAL
-------
The Partnerships are engaged in the business of acquiring and operating
producing oil and gas properties located in the continental United States.
In general, a Partnership acquired producing properties and did not engage
in development drilling or enhanced recovery projects, except as an
incidental part of the management of the producing properties acquired.
Therefore, the economic life of each Partnership, and its related
Production Partnership, is limited to the period of time required to fully
produce its acquired oil and gas reserves. The net proceeds from the oil
and gas operations are distributed to the Limited Partners and the General
Partner in accordance with the terms of the Partnerships' partnership
agreements.
-37-
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
II-A July 22, 1987 $48,428,300
II-B October 14, 1987 36,171,900
II-C January 14, 1988 15,462,100
II-D May 10, 1988 31,487,800
II-E September 27, 1988 22,882,100
II-F January 5, 1989 17,140,000
II-G April 10, 1989 37,218,900
II-H May 17, 1989 9,171,100
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
Net proceeds from the operations less necessary operating capital are
distributed to the Limited Partners on a quarterly basis. Revenues and net
proceeds of a Partnership are largely dependent upon the volumes of oil
and gas sold and the prices received for such oil and gas. While the
General Partner cannot predict future pricing trends, it believes the
working capital available as of June 30, 2000 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
RESULTS OF OPERATIONS
---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction with the
analysis of results of operations provided below. The most important
variables affecting the Partnerships' revenues are the prices received for
the sale of oil and gas and the volumes of oil and gas produced. The
Partnerships' production is mainly natural gas, so such pricing and
volumes are the most significant factors.
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<PAGE>
Due to the volatility of oil and gas prices, forecasting future prices is
subject to great uncertainty and inaccuracy. Substantially all of the
Partnerships' gas reserves are being sold on the "spot market". Prices on
the spot market are subject to wide seasonal and regional pricing
fluctuations due to the highly competitive nature of the spot market. Such
spot market sales are generally short-term in nature and are dependent
upon the obtaining of transportation services provided by pipelines.
However, oil and gas are depleting assets, so it can be expected that
production levels will decline over time. Recent gas prices have been
higher than the Partnerships' historical average. This is attributable to
the higher prices for crude oil, a substitute fuel in some markets, and
reduced production due to lower capital investments in 1998 and 1999.
II-A PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1999.
Three Months Ended June 30,
---------------------------
2000 1999
---------- --------
Oil and gas sales $1,405,952 $834,862
Oil and gas production expenses $ 317,866 $300,009
Barrels produced 19,674 20,351
Mcf produced 254,428 274,373
Average price/Bbl $ 28.88 $ 14.17
Average price/Mcf $ 3.29 $ 1.99
As shown in the table above, total oil and gas sales increased $571,090
(68.4%) for the three months ended June 30, 2000 as compared to the three
months ended June 30, 1999. Of this increase, approximately $289,000 and
$331,000, respectively, were related to increases in the average prices of
oil and gas sold. Volumes of oil and gas sold decreased 677 barrels and
19,945 Mcf, respectively, for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. Average oil and gas
prices increased to $28.88 per barrel and $3.29 per Mcf, respectively, for
the three months ended June 30, 2000 from $14.17 per barrel and $1.99 per
Mcf, respectively, for the three months ended June 30, 1999.
As discussed in Liquidity and Capital Resources above, the II-A
Partnership recognized an insurance settlement in the amount of $202,500
during the three months ended June 30, 1999. No similar settlements
occurred during the three months ended June 30, 2000.
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<PAGE>
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $17,857 (6.0%) for the three months ended June
30, 2000 as compared to the three months ended June 30, 1999. This
increase was primarily due to (i) an increase in production taxes
associated with the increase in oil and gas sales and (ii) production tax
credits received from the operator on several wells during the three
months ended June 30, 1999. These increases were partially offset by
workover expenses incurred on two significant wells during the three
months ended June 30, 1999 in order to improve the recovery of reserves.
As a percentage of oil and gas sales, these expenses decreased to 22.6%
for the three months ended June 30, 2000 from 35.9% for the three months
ended June 30, 1999. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $19,235 (13.4%) for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decreases in volumes of oil and
gas sold. As a percentage of oil and gas sales, this expense decreased to
8.8% for the three months ended June 30, 2000 from 17.2% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold.
General and administrative expenses decreased $3,368 (2.5%) for the three
months ended June 30, 2000 as compared to the three months ended June 30,
1999. As a percentage of oil and gas sales, these expenses decreased to
9.4% for the three months ended June 30, 2000 from 16.2% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1999.
Six Months Ended June 30,
-------------------------
2000 1999
---------- ----------
Oil and gas sales $2,645,688 $1,494,025
Oil and gas production expenses $ 695,728 $ 631,169
Barrels produced 41,426 43,675
Mcf produced 528,678 534,942
Average price/Bbl $ 27.10 $ 12.32
Average price/Mcf $ 2.88 $ 1.79
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<PAGE>
As shown in the table above, total oil and gas sales increased $1,151,663
(77.1%) for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999. Of this increase, approximately $613,000 and
$578,000, respectively, were related to increases in the average prices of
oil and gas sold. Volumes of oil and gas sold decreased 2,249 barrels and
6,264 Mcf, respectively, for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. Average oil and gas prices
increased to $27.10 per barrel and $2.88 per Mcf, respectively, for the
six months ended June 30, 2000 from $12.32 per barrel and $1.79 per Mcf,
respectively, for the six months ended June 30, 1999.
As discussed in Liquidity and Capital Resources above, the II-A
Partnership recognized an insurance settlement in the amount of $202,500
during the six months ended June 30, 1999. No similar settlements occurred
during the six months ended June 30, 2000.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $64,559 (10.2%) for the six months ended June
30, 2000 as compared to the six months ended June 30, 1999. This increase
was primarily due to (i) an increase in production taxes associated with
the increase in oil and gas sales, (ii) production tax credits received
from the operator on several wells during the six months ended June 30,
1999, and (iii) surface repair and maintenance expenses incurred on one
significant well during the six months ended June 30, 2000. These
increases were partially offset by workover expenses incurred on two other
wells during the six months ended June 30, 1999 in order to improve the
recovery of reserves. As a percentage of oil and gas sales, these expenses
decreased to 26.3% for the six months ended June 30, 2000 from 42.2% for
the six months ended June 30, 1999. This percentage decrease was primarily
due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $29,167 (10.1%) for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decreases in volumes of oil and
gas sold. As a percentage of oil and gas sales, this expense decreased to
9.8% for the six months ended June 30, 2000 from 19.3% for the six months
ended June 30, 1999. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
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<PAGE>
General and administrative expenses remained relatively constant for the
six months ended June 30, 2000 as compared to the six months ended June
30, 1999. As a percentage of oil and gas sales, these expenses decreased
to 11.5% for the six months ended June 30, 2000 from 20.6% for the six
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
The II-A Partnership achieved payout during the six months ended June 30,
2000. After payout, operations and revenues for the II-A Partnership have
been and will be allocated using after payout percentages. After payout
percentages allocate operating income and expenses 10% to the General
Partner and 90% to the Limited Partners. Before payout, operating income
and expenses were allocated 5% to the General Partner and 95% to the
Limited Partners. See the Partnerships' Annual Report on Form 10-K for the
year ended December 31, 1999 for a further discussion of pre and post
payout allocations of income and expense.
The Limited Partners have received cash distributions through June 30,
2000 totaling $49,140,357 or 101.47% of the Limited Partners' capital
contributions.
II-B PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1999.
Three Months Ended June 30,
---------------------------
2000 1999
---------- --------
Oil and gas sales $1,016,153 $569,351
Oil and gas production expenses $ 236,434 $218,598
Barrels produced 14,051 13,121
Mcf produced 185,172 196,375
Average price/Bbl $ 29.02 $ 14.48
Average price/Mcf $ 3.29 $ 1.93
As shown in the table above, total oil and gas sales increased $446,802
(78.5%) for the three months ended June 30, 2000 as compared to the three
months ended June 30, 1999. Of this increase, approximately $204,000 and
$251,000, respectively, were related to increases in the average prices of
oil and gas sold. Volumes of oil sold increased 930 barrels, while volumes
of gas sold decreased 11,203 Mcf for the three months ended June 30, 2000
as compared to the three months ended June 30, 1999. Average oil and gas
prices increased to $29.02 per barrel and $3.29 per Mcf,
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<PAGE>
respectively, for the three months ended June 30, 2000 from $14.48 per
barrel and $1.93 per Mcf, respectively, for the three months ended June
30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $17,836 (8.2%) for the three months ended June
30, 2000 as compared to the three months ended June 30, 1999. This
increase was primarily due to (i) an increase in production taxes
associated with the increase in oil and gas sales and (ii) an increase in
repair and maintenance expenses on two significant wells during the three
months ended June 30, 2000. These increases were partially offset by
workover expenses incurred on two other wells during the three months
ended June 30, 1999 in order to improve the recovery of reserves. As a
percentage of oil and gas sales, these expenses decreased to 23.3% for the
three months ended June 30, 2000 from 38.4% for the three months ended
June 30, 1999. This percentage decrease was primarily due to the increases
in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $20,185 (23.3%) for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decrease in volumes of gas sold.
As a percentage of oil and gas sales, this expense decreased to 6.5% for
the three months ended June 30, 2000 from 15.2% for the three months ended
June 30, 1999. This percentage decrease was primarily due to the increases
in the average prices of oil and gas sold and the dollar decrease in
depreciation, depletion, and amortization.
General and administrative expenses decreased $2,092 (2.1%) for the three
months ended June 30, 2000 as compared to the three months ended June 30,
1999. As a percentage of oil and gas sales, these expenses decreased to
9.8% for the three months ended June 30, 2000 from 17.8% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
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<PAGE>
SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1999.
Six Months Ended June 30,
-------------------------
2000 1999
---------- ----------
Oil and gas sales $1,865,671 $1,085,725
Oil and gas production expenses $ 476,144 $ 492,022
Barrels produced 28,942 28,053
Mcf produced 380,227 417,162
Average price/Bbl $ 27.17 $ 12.50
Average price/Mcf $ 2.84 $ 1.76
As shown in the table above, total oil and gas sales increased $779,946
(71.8%) for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999. Of this increase, approximately $425,000 and
$409,000, respectively, were related to increases in the average prices of
oil and gas sold. Volumes of oil sold increased 889 barrels, while volumes
of gas sold decreased 36,935 Mcf for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. Average oil and gas prices
increased to $27.17 per barrel and $2.84 per Mcf, respectively, for the
six months ended June 30, 2000 from $12.50 per barrel and $1.76 per Mcf,
respectively, for the six months ended June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $15,878 (3.2%) for the six months ended June
30, 2000 as compared to the six months ended June 30, 1999. This decrease
was primarily due to (i) a decrease in lease operating expenses associated
with the decrease in volumes of gas sold and (ii) workover expenses
incurred on two significant wells during the six months ended June 30,
1999 in order to improve the recovery of reserves. These decreases were
partially offset by an increase in production taxes associated with the
increase in oil and gas sales. As a percentage of oil and gas sales, these
expenses decreased to 25.5% for the six months ended June 30, 2000 from
45.3% for the six months ended June 30, 1999. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $47,803 (25.9%) for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decrease in volumes of gas sold.
As a percentage of oil and gas sales, this expense decreased to 7.3% for
the six months ended June 30, 2000 from 17.0% for the six months ended
June 30, 1999. This
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<PAGE>
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold and the dollar decrease in depreciation,
depletion, and amortization.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2000 as compared to the six months ended June
30, 1999. As a percentage of oil and gas sales, these expenses decreased
to 12.3% for the six months ended June 30, 2000 from 21.1% for the six
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2000 totaling $35,642,916 or 98.54% of the Limited Partners' capital
contributions.
II-C PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1999.
Three Months Ended June 30,
---------------------------
2000 1999
-------- --------
Oil and gas sales $457,198 $283,362
Oil and gas production expenses $103,279 $ 93,518
Barrels produced 4,394 4,090
Mcf produced 104,498 114,864
Average price/Bbl $ 27.26 $ 16.10
Average price/Mcf $ 3.23 $ 1.89
As shown in the table above, total oil and gas sales increased $173,836
(61.3%) for the three months ended June 30, 2000 as compared to the three
months ended June 30, 1999. Of this increase, approximately $49,000 and
$140,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by a decrease of
approximately $20,000 related to a decrease in volumes of gas sold.
Volumes of oil sold increased 304 barrels, while volumes of gas sold
decreased 10,366 Mcf for the three months ended June 30, 2000 as compared
to the three months ended June 30, 1999. Average oil and gas prices
increased to $27.26 per barrel and $3.23 per Mcf, respectively, for the
three months ended June 30, 2000 from $16.10 per barrel and $1.89 per Mcf,
respectively, for the three months ended June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $9,761 (10.4%) for the three months ended June
30, 2000 as compared to the three months ended June 30, 1999. This
increase was primarily due to (i) an increase in production taxes
associated with the increase in oil and gas sales and (ii) a
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<PAGE>
negative prior period lease operating expense adjustment made by the
operator on one significant well during the three months ended June 30,
1999. These increases were partially offset by workover expenses incurred
on two other significant wells during the three months ended June 30, 1999
in order to improve the recovery of reserves. As a percentage of oil and
gas sales, these expenses decreased to 22.6% for the three months ended
June 30, 2000 from 33.0% for the three months ended June 30, 1999. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $15,998 (31.3%) for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decrease in volumes of gas sold.
As a percentage of oil and gas sales, this expense decreased to 7.7% for
the three months ended June 30, 2000 from 18.0% for the three months ended
June 30, 1999. This percentage decrease was primarily due to the increases
in the average prices of oil and gas sold and the dollar decrease in
depreciation, depletion, and amortization.
General and administrative expenses decreased $651 (1.5%) for the three
months ended June 30, 2000 as compared to the three months ended June 30,
1999. As a percentage of oil and gas sales, these expenses decreased to
9.5% for the three months ended June 30, 2000 from 15.5% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1999.
Six Months Ended June 30,
-------------------------
2000 1999
-------- --------
Oil and gas sales $861,415 $524,665
Oil and gas production expenses $210,237 $204,682
Barrels produced 8,889 8,791
Mcf produced 219,400 231,248
Average price/Bbl $ 26.72 $ 13.27
Average price/Mcf $ 2.84 $ 1.76
As shown in the table above, total oil and gas sales increased $336,750
(64.2%) for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999. Of this increase, approximately $120,000 and
$237,000, respectively, were related to increases in the average prices of
oil and gas sold. Volumes of oil sold increased 98 barrels, while volumes
of gas sold decreased 11,848 Mcf
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<PAGE>
for the six months ended June 30, 2000 as compared to the six months ended
June 30, 1999. Average oil and gas prices increased to $26.72 per barrel
and $2.84 per Mcf, respectively, for the six months ended June 30, 2000
from $13.27 per barrel and $1.76 per Mcf, respectively, for the six months
ended June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $5,555 (2.7%) for the six months ended June
30, 2000 as compared to the six months ended June 30, 1999. This increase
was primarily due to an increase in production taxes associated with the
increase in oil and gas sales. This increase was substantially offset by
(i) positive prior period production tax adjustments made by the purchaser
on two significant wells during the six months ended June 30, 1999, (ii)
negative prior period production tax adjustments made by the purchaser on
several other wells during the six months ended June 30, 2000, and (iii)
workover expenses incurred on two significant wells during the six months
ended June 30, 1999 in order to improve the recovery of reserves. As a
percentage of oil and gas sales, these expenses decreased to 24.4% for the
six months ended June 30, 2000 from 39.0% for the six months ended June
30, 1999. This percentage decrease was primarily due to the increases in
the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $30,946 (29.7%) for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decrease in volumes of gas sold.
As a percentage of oil and gas sales, this expense decreased to 8.5% for
the six months ended June 30, 2000 from 19.8% for the six months ended
June 30, 1999. This percentage decrease was primarily due to the increases
in the average prices of oil and gas sold and the dollar decrease in
depreciation, depletion, and amortization.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2000 as compared to the six months ended June
30, 1999. As a percentage of oil and gas sales, these expenses decreased
to 11.5% for the six months ended June 30, 2000 from 18.8% for the six
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2000 totaling $16,268,686 or 105.22% of the Limited Partners' capital
contributions.
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<PAGE>
II-D PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1999.
Three Months Ended June 30,
---------------------------
2000 1999
-------- --------
Oil and gas sales $866,468 $620,800
Oil and gas production expenses $253,698 $249,225
Barrels produced 9,134 9,309
Mcf produced 204,327 254,162
Average price/Bbl $ 25.71 $ 14.46
Average price/Mcf $ 3.09 $ 1.91
As shown in the table above, total oil and gas sales increased $245,668
(39.6%) for the three months ended June 30, 2000 as compared to the three
months ended June 30, 1999. Of this increase, approximately $103,000 and
$241,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by a decrease of
approximately $95,000 related to a decrease in volumes of gas sold.
Volumes of oil and gas sold decreased 175 barrels and 49,835 Mcf,
respectively, for the three months ended June 30, 2000 as compared to the
three months ended June 30, 1999. The decrease in volumes of gas sold was
primarily due to negative prior period volume adjustments made by the
purchasers on two significant wells during the three months ended June 30,
2000 and normal declines in production. Average oil and gas prices
increased to $25.71 per barrel and $3.09 per Mcf, respectively, for the
three months ended June 30, 2000 from $14.46 per barrel and $1.91 per Mcf,
respectively, for the three months ended June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $4,473 (1.8%) for the three months ended June
30, 2000 as compared to the three months ended June 30, 1999. This
increase was primarily due to (i) an increase in production taxes
associated with the increase in oil and gas sales and (ii) positive prior
period lease operating expense adjustments made by the operator on one
significant well during the three months ended June 30, 2000. These
increases were partially offset by workover expenses incurred on another
significant well during the three months ended June 30, 1999. As a
percentage of oil and gas sales, these expenses decreased to 29.3% for the
three months ended June 30, 2000 from 40.1% for the three months ended
June 30, 1999. This percentage decrease was primarily due to the increases
in the average prices of oil and gas sold.
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<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $43,553 (40.5%) for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and upward
revisions in the estimates of remaining oil and gas reserves at December
31, 1999. As a percentage of oil and gas sales, this expense decreased to
7.4% for the three months ended June 30, 2000 from 17.3% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold and the dollar
decrease in depreciation, depletion, and amortization expenses.
General and administrative expenses decreased $2,068 (2.3%) for the three
months ended June 30, 2000 as compared to the three months ended June 30,
1999. As a percentage of oil and gas sales, these expenses decreased to
10.0% for the three months ended June 30, 2000 from 14.3% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1999.
Six Months Ended June 30,
-------------------------
2000 1999
---------- ----------
Oil and gas sales $1,698,551 $1,126,215
Oil and gas production expenses $ 481,927 $ 534,774
Barrels produced 16,559 18,613
Mcf produced 454,701 477,982
Average price/Bbl $ 26.45 $ 12.33
Average price/Mcf $ 2.77 $ 1.88
As shown in the table above, total oil and gas sales increased $572,336
(50.8%) for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999. Of this increase, approximately $234,000 and
$408,000, respectively, were related to increases in the average prices of
oil and gas sold. Volumes of oil and gas sold decreased 2,054 barrels and
23,281 Mcf, respectively, for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. The decrease in volumes of
oil sold was primarily due to a positive prior period volume adjustment
made by the operator on one significant well during the six months ended
June 30, 1999 and a negative prior period volume adjustment made by the
operator on another significant well during the six months ended June 30,
2000. Average oil and gas prices increased to $26.45 per barrel and $2.77
per Mcf, respectively, for the six months ended June 30, 2000 from
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<PAGE>
$12.33 per barrel and $1.88 per Mcf, respectively, for the six months
ended June 30, 1999. Oil and gas production expenses (including lease
operating expenses and production taxes) decreased $52,847 (9.9%) for the
six months ended June 30, 2000 as compared to the six months ended June
30, 1999. This decrease was primarily due to workover expenses incurred on
several wells during the six months ended June 30, 1999 in order to
improve the recovery of reserves. This decrease was partially offset by
(i) an increase in production taxes associated with the increase in oil
and gas sales and (ii) positive prior period lease operating expense
adjustments made by the operator on one significant well during the six
months ended June 30, 2000. As a percentage of oil and gas sales, these
expenses decreased to 28.4% for the six months ended June 30, 2000 from
47.5% for the six months ended June 30, 1999. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $67,748 (33.1%) for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and upward
revisions in the estimates of remaining oil and gas reserves at December
31, 1999. As a percentage of oil and gas sales, this expense decreased to
8.0% for the six months ended June 30, 2000 from 18.2% for the six months
ended June 30, 1999. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold and the dollar
decrease in depreciation, depletion, and amortization expenses.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2000 as compared to the six months ended June
30, 1999. As a percentage of oil and gas sales, these expenses decreased
to 11.7% for the six months ended June 30, 2000 from 17.7% for the six
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2000 totaling $32,935,903 or 104.6% of Limited Partners' capital
contributions.
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<PAGE>
II-E PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1999.
Three Months Ended June 30,
---------------------------
2000 1999
-------- --------
Oil and gas sales $661,135 $475,193
Oil and gas production expenses $163,902 $113,473
Barrels produced 5,301 8,412
Mcf produced 149,471 164,664
Average price/Bbl $ 29.16 $ 15.82
Average price/Mcf $ 3.39 $ 2.08
As shown in the table above, total oil and gas sales increased $185,942
(39.1%) for the three months ended June 30, 2000 as compared to the three
months ended June 30, 1999. Of this increase, approximately $71,000 and
$196,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by decreases of
approximately $49,000 and $32,000, respectively, related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 3,111
barrels and 15,193 Mcf, respectively, for the three months ended June 30,
2000 as compared to the three months ended June 30, 1999. The decrease in
volumes of oil sold was primarily due to a negative prior period volume
adjustment made by the purchaser on one significant well during the three
months ended June 30, 2000 and normal declines in production. Average oil
and gas prices increased to $29.16 per barrel and $3.39 per Mcf,
respectively, for the three months ended June 30, 2000 from $15.82 per
barrel and $2.08 per Mcf, respectively, for the three months ended June
30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $50,429 (44.5%) for the three months ended
June 30, 2000 as compared to the three months ended June 30, 1999. This
increase was primarily due to (i) a positive prior period lease operating
expense adjustment made by the operator on one significant well during the
three months ended June 30, 2000, (ii) an increase in surface and
subsurface repair and maintenance expenses incurred on two significant
wells during the three months ended June 30, 2000, and (iii) an increase
in production taxes associated with the increase in oil and gas sales. As
a percentage of oil and gas sales, these expenses increased to 24.8% for
the three months ended June 30, 2000 from 23.9% for the three months ended
June 30, 1999.
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<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $42,586 (37.0%) for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decreases in volumes of oil and
gas sold. As a percentage of oil and gas sales, this expense decreased to
11.0% for the three months ended June 30, 2000 from 24.2% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold and the dollar
decrease in depreciation, depletion, and amortization expenses.
General and administrative expenses decreased $1,425 (2.2%) for the three
months ended June 30, 2000 as compared to the three months ended June 30,
1999. As a percentage of oil and gas sales, these expenses decreased to
9.6% for the three months ended June 30, 2000 from 13.6% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1999.
Six Months Ended June 30,
-------------------------
2000 1999
---------- --------
Oil and gas sales $1,170,440 $803,244
Oil and gas production expenses $ 283,195 $261,206
Barrels produced 12,523 17,272
Mcf produced 309,293 318,863
Average price/Bbl $ 29.02 $ 13.43
Average price/Mcf $ 2.61 $ 1.79
As shown in the table above, total oil and gas sales increased $367,196
(45.7%) for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999. Of this increase, approximately $195,000 and
$253,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by a decrease of
approximately $64,000 related to a decrease in volumes of oil sold.
Volumes of oil and gas sold decreased 4,749 barrels and 9,570 Mcf,
respectively, for the six months ended June 30, 2000 as compared to the
six months ended June 30, 1999. The decrease in volumes of oil sold was
primarily due to (i) a negative prior period volume adjustment made by the
operator on one significant well during the six months ended June 30,
2000, (ii) a positive prior period volume adjustment made by the operator
on another significant well during the six months ended June 30, 1999, and
(iii) normal declines in production. Average oil and gas prices increased
to $29.02 per barrel and $2.61 per
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<PAGE>
Mcf, respectively, for the six months ended June 30, 2000 from $13.43 per
barrel and $1.79 per Mcf, respectively, for the six months ended June 30,
1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $21,989 (8.4%) for the six months ended June
30, 2000 as compared to the six months ended June 30, 1999. As a
percentage of oil and gas sales, these expenses decreased to 24.2% for the
six months ended June 30, 2000 from 32.5% for the six months ended June
30, 1999. This percentage decrease was primarily due to the increases in
the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $72,262 (32.0%) for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1999 and the decreases in volumes of oil and
gas sold. As a percentage of oil and gas sales, this expense decreased to
13.1% for the six months ended June 30, 2000 from 28.1% for the six months
ended June 30, 1999. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold and the dollar
decrease in depreciation, depletion, and amortization expenses.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2000 as compared to the six months ended June
30, 1999. As a percentage of oil and gas sales, these expenses decreased
to 12.4% for the six months ended June 30, 2000 from 18.1% for the six
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2000 totaling $23,744,574 or 103.77% of Limited Partners' capital
contributions.
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<PAGE>
II-F PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1999.
Three Months Ended June 30,
---------------------------
2000 1999
-------- --------
Oil and gas sales $568,065 $376,944
Oil and gas production expenses $ 98,151 $ 79,088
Barrels produced 6,593 9,100
Mcf produced 112,710 131,212
Average price/Bbl $ 28.05 $ 14.94
Average price/Mcf $ 3.40 $ 1.84
As shown in the table above, total oil and gas sales increased $191,121
(50.7%) for the three months ended June 30, 2000 as compared to the three
months ended June 30, 1999. Of this increase, approximately $86,000 and
$176,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by decreases of
approximately $37,000 and $34,000, respectively, related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 2,507
barrels and 18,502 Mcf, respectively, for the three months ended June 30,
2000 as compared to the three months ended June 30, 1999. The decrease in
volumes of oil sold was primarily due to normal declines in production and
a positive prior period volume adjustment made by the operator on one
significant well during the three months ended June 30, 1999. The decrease
in volumes of gas sold was primarily due to a negative prior period volume
adjustment made by the purchaser on another significant well during the
three months ended June 30, 2000 and normal declines in production.
Average oil and gas prices increased to $28.05 per barrel and $3.40 per
Mcf, respectively, for the three months ended June 30, 2000 from $14.94
per barrel and $1.84 per Mcf, respectively, for the three months ended
June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $19,063 (24.1%) for the three months ended
June 30, 2000 as compared to the three months ended June 30, 1999. This
increase was primarily due to an increase in production taxes associated
with the increase in oil and gas sales. As a percentage of oil and gas
sales, these expenses decreased to 17.3% for the three months ended June
30, 2000 from 21.0% for the three months ended June 30, 1999. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
-54-
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $27,617 (33.4%) for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and upward
revisions in the estimates of remaining oil and gas reserves at December
31, 1999. As a percentage of oil and gas sales, this expense decreased to
9.7% for the three months ended June 30, 2000 from 21.9% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold.
General and administrative expenses decreased $976 (2.0%) for the three
months ended June 30, 2000 as compared to the three months ended June 30,
1999. As a percentage of oil and gas sales, these expenses decreased to
8.3% for the three months ended June 30, 2000 from 12.8% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1999.
Six Months Ended June 30,
-------------------------
2000 1999
---------- --------
Oil and gas sales $1,075,723 $771,173
Oil and gas production expenses $ 212,757 $237,089
Barrels produced 14,434 19,581
Mcf produced 255,755 317,796
Average price/Bbl $ 27.66 $ 12.48
Average price/Mcf $ 2.65 $ 1.66
As shown in the table above, total oil and gas sales increased $304,550
(39.5%) for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999. Of this increase, approximately $219,000 and
$253,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by decreases of
approximately $64,000 and $103,000, respectively, related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 5,147
barrels and 62,041 Mcf, respectively, for the six months ended June 30,
2000 as compared to the six months ended June 30, 1999. The decrease in
volumes of oil sold was primarily due to positive prior period volume
adjustments made by the operators on two significant wells during the six
months ended June 30, 1999 and normal declines in production. The decrease
in volumes of gas sold was primarily due to positive prior period volume
adjustments made by the operator on another significant well during the
six months ended June 30, 1999 and normal declines in production. Average
oil and gas
-55-
<PAGE>
prices increased to $27.66 per barrel and $2.65 per Mcf, respectively, for
the six months ended June 30, 2000 from $12.48 per barrel and $1.66 per
Mcf, respectively, for the six months ended June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $24,332 (10.3%) for the six months ended June
30, 2000 as compared to the six months ended June 30, 1999. This decrease
was primarily due to (i) a decrease in lease operating expenses associated
with the decreases in volumes of oil and gas sold, (ii) workover expenses
incurred on one significant well during the six months ended June 30, 1999
in order to improve the recovery of reserves, and (iii) positive prior
period lease operating expense adjustments made by the operator on another
significant well during the six months ended June 30, 1999. These
decreases were partially offset by an increase in production taxes
associated with the increase in oil and gas sales. As a percentage of oil
and gas sales, these expenses decreased to 19.8% for the six months ended
June 30, 2000 from 30.7% for the six months ended June 30, 1999. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $69,880 (36.1%) for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and upward
revisions in the estimates of remaining oil and gas reserves at December
31, 1999. As a percentage of oil and gas sales, this expense decreased to
11.5% for the six months ended June 30, 2000 from 25.1% for the six months
ended June 30, 1999. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2000 as compared to the six months ended June
30, 1999. As a percentage of oil and gas sales, these expenses decreased
to 10.1% for the six months ended June 30, 2000 from 14.1% for the six
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2000 totaling $18,310,051 or 106.83% of Limited Partners' capital
contributions.
-56-
<PAGE>
II-G PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1999.
Three Months Ended June 30,
---------------------------
2000 1999
---------- --------
Oil and gas sales $1,242,924 $852,551
Oil and gas production expenses $ 212,103 $171,953
Barrels produced 13,841 19,192
Mcf produced 240,274 277,354
Average price/Bbl $ 28.05 $ 15.25
Average price/Mcf $ 3.56 $ 2.02
As shown in the table above, total oil and gas sales increased $390,373
(45.8%) for the three months ended June 30, 2000 as compared to the three
months ended June 30, 1999. Of this increase, approximately $177,000 and
$370,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by decreases of
approximately $82,000 and $75,000, respectively, related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 5,351
barrels and 37,080 Mcf, respectively, for the three months ended June 30,
2000 as compared to the three months ended June 30, 1999. The decrease in
volumes of oil sold was primarily due to normal declines in production and
a positive prior period volume adjustment made by the operator on one
significant well during the three months ended June 30, 1999. The decrease
in volumes of gas sold was primarily due to a negative prior period volume
adjustment made by the purchaser on another significant well during the
three months ended June 30, 2000 and normal declines in production.
Average oil and gas prices increased to $28.05 per barrel and $3.56 per
Mcf, respectively, for the three months ended June 30, 2000 from $15.25
per barrel and $2.02 per Mcf, respectively, for the three months ended
June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $40,150 (23.3%) for the three months ended
June 30, 2000 as compared to the three months ended June 30, 1999. This
increase was primarily due to an increase in production taxes associated
with the increase in oil and gas sales. As a percentage of oil and gas
sales, these expenses decreased to 17.1% for the three months ended June
30, 2000 from 20.2% for the three months ended June 30, 1999. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
-57-
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $57,959 (32.9%) for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and upward
revisions in the estimates of remaining oil and gas reserves at December
31, 1999. As a percentage of oil and gas sales, this expense decreased to
9.5% for the three months ended June 30, 2000 from 20.6% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold.
General and administrative expenses decreased $3,016 (2.9%) for the three
months ended June 30, 2000 as compared to the three months ended June 30,
1999. As a percentage of oil and gas sales, these expenses decreased to
8.2% for the three months ended June 30, 2000 from 12.2% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1999.
Six Months Ended June 30,
-------------------------
2000 1999
---------- ----------
Oil and gas sales $2,283,363 $1,704,587
Oil and gas production expenses $ 456,990 $ 508,795
Barrels produced 30,272 41,270
Mcf produced 550,702 683,569
Average price/Bbl $ 27.66 $ 12.62
Average price/Mcf $ 2.63 $ 1.73
As shown in the table above, total oil and gas sales increased $578,776
(34.0%) for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999. Of this increase, approximately $455,000 and
$493,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by decreases of
approximately $139,000 and $230,000, respectively, related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 10,998
barrels and 132,867 Mcf, respectively, for the six months ended June 30,
2000 as compared to the six months ended June 30, 1999. The decrease in
volumes of oil sold was primarily due to positive prior period volume
adjustments made by the operators on two significant wells during the six
months ended June 30, 1999 and normal declines in production. The decrease
in volumes of gas sold was primarily due to positive prior period volume
adjustments made by the operator on another significant well during the
six months ended June 30, 1999 and normal declines in production. Average
oil and gas
-58-
<PAGE>
prices increased to $27.66 per barrel and $2.63 per Mcf, respectively, for
the six months ended June 30, 2000 from $12.62 per barrel and $1.73 per
Mcf, respectively, for the six months ended June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $51,805 (10.2%) for the six months ended June
30, 2000 as compared to the six months ended June 30, 1999. This decrease
was primarily due to (i) a decrease in lease operating expenses associated
with the decreases in volumes of oil and gas sold, (ii) workover expenses
incurred on one significant well during the six months ended June 30, 1999
in order to improve the recovery of reserves, and (iii) positive prior
period lease operating expense adjustments made by the operator on another
significant well during the six months ended June 30, 1999. These
decreases were partially offset by an increase in production taxes
associated with the increase in oil and gas sales. As a percentage of oil
and gas sales, these expenses decreased to 20.0% for the six months ended
June 30, 2000 from 29.8% for the six months ended June 30, 1999. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $150,180 (36.0%) for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and upward
revisions in the estimates of remaining oil and gas reserves at December
31, 1999. As a percentage of oil and gas sales, this expense decreased to
11.7% for the six months ended June 30, 2000 from 24.5% for the six months
ended June 30, 1999. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2000 as compared to the six months ended June
30, 1999. As a percentage of oil and gas sales, these expenses decreased
to 10.3% for the six months ended June 30, 2000 from 13.8% for the six
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2000 totaling $37,910,371 or 101.86% of Limited Partners' capital
contributions.
-59-
<PAGE>
II-H PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1999.
Three Months Ended June 30,
---------------------------
2000 1999
-------- --------
Oil and gas sales $311,239 $198,563
Oil and gas production expenses $ 52,135 $ 41,544
Barrels produced 3,225 4,482
Mcf produced 57,560 68,224
Average price/Bbl $ 28.05 $ 14.91
Average price/Mcf $ 3.84 $ 1.93
As shown in the table above, total oil and gas sales increased $112,676
(56.7%) for the three months ended June 30, 2000 as compared to the three
months ended June 30, 1999. Of this increase, approximately $43,000 and
$110,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by decreases of
approximately $19,000 and $21,000, respectively, related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 1,257
barrels and 10,664 Mcf, respectively, for the three months ended June 30,
2000 as compared to the three months ended June 30, 1999. The decrease in
volumes of oil sold was primarily due to normal declines in production and
a positive prior period volume adjustment made by the operator on one
significant well during the three months ended June 30, 1999. The decrease
in volumes of gas sold was primarily due to a negative prior period volume
adjustment made by the purchaser on another significant well during the
three months ended June 30, 2000. Average oil and gas prices increased to
$28.05 per barrel and $3.84 per Mcf, respectively, for the three months
ended June 30, 2000 from $14.91 per barrel and $1.93 per Mcf,
respectively, for the three months ended June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $10,591 (25.5%) for the three months ended
June 30, 2000 as compared to the three months ended June 30, 1999. This
increase was primarily due to an increase in production taxes associated
with the increase in oil and gas sales. As a percentage of oil and gas
sales, these expenses decreased to 16.8% for the three months ended June
30, 2000 from 20.9% for the three months ended June 30, 1999. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
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<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $14,034 (33.5%) for the three months ended June 30, 2000 as
compared to the three months ended June 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and upward
revisions in the estimates of remaining oil and gas reserves at December
31, 1999. As a percentage of oil and gas sales, this expense decreased to
8.9% for the three months ended June 30, 2000 from 21.1% for the three
months ended June 30, 1999. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
three months ended June 30, 2000 as compared to the three months ended
June 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 8.2% for the three months ended June 30, 2000 from 12.9% for
the three months ended June 30, 1999. This percentage decrease was
primarily due to the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1999.
Six Months Ended June 30,
-------------------------
2000 1999
-------- --------
Oil and gas sales $533,848 $396,755
Oil and gas production expenses $110,456 $121,585
Barrels produced 7,056 9,637
Mcf produced 130,233 162,495
Average price/Bbl $ 27.65 $ 12.47
Average price/Mcf $ 2.60 $ 1.70
As shown in the table above, total oil and gas sales increased $137,093
(34.6%) for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999. Of this increase, approximately $107,000 and
$117,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by decreases of
approximately $32,000 and $55,000, respectively, related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 2,581
barrels and 32,262 Mcf, respectively, for the six months ended June 30,
2000 as compared to the six months ended June 30, 1999. The decrease in
volumes of oil sold was primarily due to positive prior period volume
adjustments made by the operators on two significant wells during the six
months ended June 30, 1999 and normal declines in production. The decrease
in volumes of gas sold was primarily due to positive prior period volume
adjustments made by the operator on another significant well during the
six months ended June 30, 1999 and normal declines in production. Average
oil and gas
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<PAGE>
prices increased to $27.65 per barrel and $2.60 per Mcf, respectively, for
the six months ended June 30, 2000 from $12.47 per barrel and $1.70 per
Mcf, respectively, for the six months ended June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $11,129 (9.2%) for the six months ended June
30, 2000 as compared to the six months ended June 30, 1999. This decrease
was primarily due to (i) a decrease in lease operating expenses associated
with the decreases in volumes of oil and gas sold, (ii) workover expenses
incurred on one significant well during the six months ended June 30, 1999
in order to improve the recovery of reserves, and (iii) positive prior
period lease operating expense adjustments made by the operator on another
significant well during the six months ended June 30, 1999. These
decreases were partially offset by an increase in production taxes
associated with the increase in oil and gas sales. As a percentage of oil
and gas sales, these expenses decreased to 20.7% for the six months ended
June 30, 2000 from 30.6% for the six months ended June 30, 1999. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $34,527 (35.6%) for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999. This decrease was
primarily due to the decreases in volumes of oil and gas sold and upward
revisions in the estimates of remaining oil and gas reserves at December
31, 1999. As a percentage of oil and gas sales, this expense decreased to
11.7% for the six months ended June 30, 2000 from 24.4% for the six months
ended June 30, 1999. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2000 as compared to the six months ended June
30, 1999. As a percentage of oil and gas sales, these expenses decreased
to 10.9% for the six months ended June 30, 2000 from 14.6% for the six
months ended June 30, 1999. This percentage decrease was primarily due to
the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2000 totaling $8,823,364 or 96.21% of Limited Partners' capital
contributions.
-62-
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
-63-
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule containing summary financial
information extracted from the II-A Partnership's financial
statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the II-B Partnership's financial
statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the II-C Partnership's financial
statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the II-D Partnership's financial
statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the II-E Partnership's financial
statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the II-F Partnership's financial
statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.7 Financial Data Schedule containing summary financial
information extracted from the II-G Partnership's financial
statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
-64-
<PAGE>
27.8 Financial Data Schedule containing summary financial
information extracted from the II-H Partnership's financial
statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
None.
-65-
<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, thereunto duly authorized.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: August 14, 2000 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: August 14, 2000 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
-66-
<PAGE>
INDEX TO EXHIBITS
NUMBER DESCRIPTION
------ -----------
27.1 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-A's
financial statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.2 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-B's
financial statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.3 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-C's
financial statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.4 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-D's
financial statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.5 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-E's
financial statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.6 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-F's
financial statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.7 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-G's
financial statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
27.8 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership II-H's
financial statements as of June 30, 2000 and for the six months ended
June 30, 2000, filed herewith.
All other exhibits are omitted as inapplicable.
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