United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 0-16553
ENEX OIL & GAS INCOME PROGRAM III - SERIES 5, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0214445
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 200, Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices)
Issuer's telephone number (713) 358-8401
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes x No
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX OIL & GAS INCOME PROGRAM III - SERIES 5, L.P.
BALANCE SHEET
MARCH 31,
ASSETS 1995
(Unaudited)
CURRENT ASSETS:
Cash $ 9,831
Accounts receivable - oil & gas sales 48,197
Other current assets 3,076
Total current assets 61,104
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 3,575,598
Less accumulated depreciation and depletion 3,177,871
Property, net 397,727
TOTAL $ 458,831
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 20,560
Payable to general partner 34,352
Total current liabilities 54,912
NONCURRENT PAYABLE TO GENERAL PARTNER 193,610
PARTNERS' CAPITAL:
Limited partners 186,712
General partner 23,597
Total partners' capital 210,309
TOTAL $ 458,831
See accompanying notes to financial statements.
I-1
ENEX OIL & GAS INCOME PROGRAM III - SERIES 5, L.P.
STATEMENTS OF OPERATIONS
(UNAUDITED) THREE MONTHS ENDED
MARCH 31, MARCH 31,
1995 1994
REVENUES:
Oil and gas sales $ 104,673 $ 81,801
EXPENSES:
Depreciation and depletion 31,483 31,920
Lease operating expenses 45,096 49,974
Production taxes 5,732 4,593
General and administrative 14,002 13,726
Total expenses 96,313 100,213
NET INCOME (LOSS) $ 8,360 $ (18,412)
See accompanying notes to financial statements.
I-2
ENEX OIL AND GAS INCOME PROGRAM III - SERIES 5, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31, MARCH 31,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 8,360 $ (18,412)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation, depletion and amortization 31,483 31,920
(Increase) decrease in:
Accounts receivable - oil & gas sales (8,436) 1,899
Other current assets (1,112) (3,384)
Increase (decrease) in:
Accounts payable (5,025) (9,906)
Payable to general partner (1,263) 22,942
Total adjustments 15,647 43,471
Net cash provided by operating activities 24,007 25,059
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs (610) (10,546)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (23,998) (20,249)
NET (DECREASE) IN CASH (601) (5,736)
CASH AT BEGINNING OF YEAR 10,432 12,705
CASH AT END OF PERIOD $ 9,831 $ 6,969
See accompanying notes to financial statements.
I-3
ENEX OIL & GAS INCOME PROGRAM III - SERIES 5, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
1. The interim financial information included herein is unaudited;
however, such information reflects all adjustments (consisting solely
of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of results for the
interim periods.
2. A cash distribution was made to the limited partners of the Company in
the amount of $21,597, representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on January 31, 1995.
Item 2. Management's Discussion and Analysis or Plan of Operation.
First Quarter 1995 Compared to First Quarter 1994
Oil and gas sales for the first quarter increased from $81,801 in 1994 to
$104,673 in 1995. This represents an increase of $22,872 (28%). Oil sales
increased by $28,270 or 46%. A 12% increase in oil production caused
sales to increase by $7,359, while a 31% increase in average oil prices
caused sales to increase by an additional $20,911. Gas sales decreased by
$5,398 or 26%. A 24% decrease in gas production due to natural production
declines which were especially pronounced on the RIC acquisition, reduced
sales by $4,998. A 3% decrease in average gas prices reduced sales by an
additional $400. The increase in oil production was primarily the result
of a partial shut-in of production, in the first quarter of 1994, from the
Corkscrew acquisition to repair rods. The changes in average prices
correspond with changes in the overall market for the sale of oil and gas.
Lease operating expenses decreased from $49,974 in 1994 to $45,096 in 1995.
The decrease of $4,878 (10%) is primarily due to workover charges incurred
on the Corkscrew acquisition in the first quarter of 1994, partially offset
by road repairs on the Corkscrew acquisition in 1995.
Depreciation and depletion expense decreased from $31,920 in the first
quarter of 1994 to $31,483 in the first quarter of 1995. This represents
a decrease of $437 (1%). A 5% decrease in the depletion rate reduced
depreciation and depletion expense by $1,747. This decrease was partially
offset by the changes in production, noted above. The rate decrease was
primarily due to an upward revision of the oil and gas reserves at December
31, 1994.
General and administrative expenses increased from $13,726 in 1994 to
$14,002 in 1995. This increase of $276 is primarily due to more staff time
being required to manage the Company's operations in 1995.
CAPITAL RESOURCES AND LIQUIDITY
The Company's cash flow from operations is a direct result of the amount of
net proceeds realized from the sale of oil and gas production.
Accordingly, the changes in cash flow from 1994 to 1995 are primarily due
to the changes in oil and gas sales described above. It is the general
partner's intention to distribute substantially all of the Company's
available cash flow to the Company's partners.
The Company will continue to recover its reserves and distribute to the
limited partners the net proceeds realized from the sale of oil and gas
production after the payment of its debt obligations. Distribution amounts
are subject to change if net revenues are greater or less than expected.
Nonetheless, the general partner believes the Company will continue to have
sufficient cash flow to fund operations and to maintain a regular pattern
of distributions.
As of March 31, 1995, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by
the undersigned hereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM III - 5, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By: /s/ R. E. Densford
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
May 11, 1995 By: /s/ James A. Klein
James A. Klein
Controller and Chief
Accounting Officer
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM III - SERIES 5, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By:
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
May 11, 1995 By:
James A. Klein
Controller and Chief
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 9,831
<SECURITIES> 0
<RECEIVABLES> 48,197
<ALLOWANCES> 0
<INVENTORY> 3,076
<CURRENT-ASSETS> 61,104
<PP&E> 3,575,598
<DEPRECIATION> (3,177,871)
<TOTAL-ASSETS> 458,831
<CURRENT-LIABILITIES> 54,912
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 210,309
<TOTAL-LIABILITY-AND-EQUITY> 458,831
<SALES> 104,673
<TOTAL-REVENUES> 104,673
<CGS> 82,311
<TOTAL-COSTS> 82,311
<OTHER-EXPENSES> 14,002
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 8,360
<INCOME-TAX> 0
<INCOME-CONTINUING> 8,360
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,360
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
