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 September 30, 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
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM III - SERIES 5, L.P.
BALANCE SHEET
- -----------------------------------------------------------------------------
September 30,
ASSETS 1995
---------------
(Unaudited)
CURRENT ASSETS:
<S> <C>
Cash ................................................... $ 14,918
Accounts receivable - oil & gas sales .................. 37,515
Other current assets ................................... 3,203
---------
Total current assets ..................................... 55,636
---------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities .. 3,584,377
Less accumulated depreciation and depletion ........... 3,227,015
---------
Property, net ............................................ 357,362
---------
TOTAL .................................................... $ 412,998
==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable ...................................... $ 20,715
Payable to general partner ............................ 24,028
----------
Total current liabilities ................................ 44,743
----------
NONCURRENT PAYABLE TO GENERAL PARTNER .................... 192,224
----------
PARTNERS' CAPITAL:
Limited partners ...................................... 150,948
General partner ....................................... 25,083
----------
Total partners' capital .................................. 176,031
----------
TOTAL .................................................... $ 412,998
==========
<FN>
See accompanying notes to financial statements.
- ----------------------------------------------------------------------------
</FN>
</TABLE>
I -1
<PAGE>
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM III - SERIES 5, L.P.
STATEMENTS OF OPERATIONS
- -------------------------------------------------------------------------------------------
(UNAUDITED) QUARTER ENDED NINE MONTHS ENDED
---------------------------- ----------------------------
September 30, September 30, September 30, September 30,
1995 1994 1995 1994
------------ ------------- ------------- -------------
REVENUES:
<S> <C> <C> <C> <C>
Oil and gas sales ........ $ 85,160 $ 102,065 $ 274,569 $286,546
--------- --------- --------- ---------
EXPENSES:
Depreciation and depletion 27,814 31,290 80,627 95,871
Lease operating expenses . 53,548 52,779 148,256 139,919
Production taxes ......... 4,625 5,714 15,227 15,790
General and administrative 10,319 11,337 34,866 37,846
--------- --------- --------- ---------
Total expenses ............. 96,306 101,120 278,976 289,426
--------- --------- --------- ---------
NET INCOME (LOSS) .......... $ (11,146) $ 945 $ (4,407) $ (2,880)
========== ========= ========== =========
<FN>
See accompanying notes to financial statements.
- -------------------------------------------------------------------------------------------
</FN>
</TABLE>
I-2
<PAGE>
<TABLE>
<CAPTION>
ENEX OIL AND GAS INCOME PROGRAM III - SERIES 5, L.P.
STATEMENTS OF CASH FLOWS
- --------------------------------------------------------------------------------
(UNAUDITED)
NINE MONTHS ENDED
-----------------------------
September 30, September 30,
1995 1994
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net (loss) .................................... $ (4,407) $ (2,880)
-------- ---------
Adjustments to reconcile net (loss) to net cash
provided by operating activities:
Depreciation, depletion and amortization .... 80,627 95,871
(Increase) decrease in:
Accounts receivable - oil & gas sales ....... 2,246 (11,394)
Other current assets ........................ (1,239) (3,935)
Increase (decrease) in:
Accounts payable ........................... (4,870) (24,253)
Payable to general partner ................. (12,973) 35,917
-------- ---------
Total adjustments ............................. 63,791 92,206
-------- ---------
Net cash provided by operating activities ..... 59,384 89,326
-------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs .... (9,389) (17,049)
-------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ......................... (45,509) (65,996)
-------- ---------
NET INCREASE IN CASH .......................... 4,486 6,281
CASH AT BEGINNING OF YEAR ..................... 10,432 12,705
-------- ---------
CASH AT END OF PERIOD ......................... $ 14,918 $ 18,986
========= =========
<FN>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
</FN>
</TABLE>
I -3
<PAGE>
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.
I-4
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation.
Third Quarter 1995 Compared to Third Quarter 1994
Oil and gas sales for the third quarter decreased from $102,065 in 1994 to
$85,160 in 1995. This represents a decrease of $16,905 (17%). Oil sales
decreased by $11,388 (13%). A 16% decrease in the average oil sales price
reduced sales by $13,922. This decrease was partially offset by a 3% increase in
oil production. Gas sales decreased by $5,517 (35%). A 13% decrease in the
average gas sales price reduced sales by $1,596. A 25% decrease in gas
production reduced sales by an additional $3,921. The changes in average sales
prices correspond with changes in the overall market for the sale of oil and
gas. The lower gas production was primarily the result of natural production
declines which were especially pronounced on the RIC acquisition. The lower oil
production was primarily due to natural production declines partially offset by
increased production from the Corkscrew acquisition, where rod repairs were
successfully completed in the second quarter of 1995.
Lease operating expenses increased from $52,779 in 1994 to $53,548 in 1995. The
increase of $769 (1%) is primarily due to workover expenses incurred on the
Hightower acquisition.
Depreciation and depletion expense decreased from $31,290 in the third quarter
of 1994 to $27,814 in the third quarter of 1995. This represents a decrease of
$3,476 (11%). The changes in production, noted above, reduced depreciation and
depletion expense by $813. A 9% decrease in the depletion rate reduced
depreciation and depletion expense by an additional $2,663. This rate decrease
is primarily the result of an upward revision of the oil and gas reserves at
December 31, 1994.
General and administrative expenses decreased from $11,337 in 1994 to $10,319 in
1995. This decrease of $1,018 (9%) is primarily due to less staff time being
required to manage the Company's operations in 1995.
First Nine Months in 1995 Compared to First Nine Months in 1994
Oil and gas sales for the first nine months decreased from $286,546 in 1994 to
$274,569 in 1995. This represents a decrease of $11,977 (4%). Oil sales
increased by $5,717 (2%). A 7% increase in the average oil sales price increased
sales by $16,197. This increase was partially offset by a 5% decrease in oil
production. Gas sales decreased by $17,694 (31%). A 17% decrease in the average
gas sales price reduced sales by $7,815. An 18% decrease in gas production
reduced sales by an additional $9,879. The changes in average sales prices
correspond with changes in the overall market for the sale of oil and gas. The
lower oil and gas production was primarily the result of natural production
declines.
Lease operating expenses increased from $139,919 in 1994 to $148,256 in 1995.
The increase of $8,337 (6%) is primarily due to workover costs incurred on the
Hightower and Corkscrew acquisitions in 1995, partially offset by the declines
in production, noted above.
I-5
<PAGE>
Depreciation and depletion expense decreased from $95,871 in the first nine
months of 1994 to $80,627 in the first nine months of 1995. This represents a
decrease of $15,244 (16%). The changes in production, noted above, reduced
depreciation and depletion expense by $6,915. A 9% decrease in the depletion
rate reduced depreciation and depletion expense by an additional $8,329. This
rate decrease is primarily the result of an upward revision of the oil and gas
reserves at December 31, 1994.
General and administrative expenses decreased from $37,846 in 1994 to $34,866 in
1995. This decrease of $2,980 (8%) is primarily due to less 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 discontinued the payment of distributions in July 1995. Future
distributions are dependent upon, among other things, an increase in prices
received for oil and gas. 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. Distribution amounts are subject to change if net
revenues are greater or less than expected. Future periodic distributions will
be made once sufficient net revenues are accumulated.
As of September 30, 1995, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
I-6
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5. Other Information.
Not Applicable
Item 6. Exhibits and Reports on Form 8-K.
(a) There are no exhibits to this report.
(b) The Company filed no reports on Form 8-K during the
quarter ended September 30, 1995.
II-1
<PAGE>
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: /s/ R. E. Densford
-------------------
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
November 11, 1995 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
</LEGEND>
<CIK> 0000825247
<NAME> @8mdhqgb
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> dec-31-1995
<PERIOD-START> jan-01-1995
<PERIOD-END> sep-30-1995
<CASH> 14918
<SECURITIES> 0
<RECEIVABLES> 37515
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 55636
<PP&E> 3584377
<DEPRECIATION> 3227015
<TOTAL-ASSETS> 412998
<CURRENT-LIABILITIES> 44743
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 176031
<TOTAL-LIABILITY-AND-EQUITY> 412998
<SALES> 274569
<TOTAL-REVENUES> 274569
<CGS> 244110
<TOTAL-COSTS> 244110
<OTHER-EXPENSES> 34866
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4407)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
