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 June 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
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX OIL & GAS INCOME PROGRAM III - SERIES 5, L.P.
BALANCE SHEET
JUNE 30,
ASSETS 1995
(Unaudited)
CURRENT ASSETS:
Accounts receivable - oil & gas sales $ 42,468
Other current assets 3,128
Total current assets 45,596
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 3,577,687
Less accumulated depreciation and depletion 3,199,201
Property, net 378,486
TOTAL $ 424,082
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 21,437
Payable to affiliated limited partnership 1,167
Payable to general partner 20,691
Total current liabilities 43,295
NONCURRENT PAYABLE TO GENERAL PARTNER 193,610
PARTNERS' CAPITAL:
Limited partners 163,760
General partner 23,417
Total partners' capital 187,177
TOTAL $ 424,082
See accompanying notes to financial statements.
I -1
ENEX OIL & GAS INCOME PROGRAM III - SERIES 5, L.P.
STATEMENTS OF OPERATIONS
(UNAUDITED) QUARTER ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1995 1994 1995 1994
REVENUES:
Oil and gas sales $ 84,736 $ 102,680 $ 189,409 $ 184,481
EXPENSES:
Depreciation and depletion 21,330 32,661 52,813 64,581
Lease operating expenses 49,612 37,166 94,708 87,140
Production taxes 4,870 5,483 10,602 10,076
General and administrative 10,545 12,783 24,547 26,509
Total expenses 86,357 88,093 182,670 188,306
NET INCOME (LOSS) $ (1,621) $ 14,587 $ 6,739 $ (3,825)
See accompanying notes to financial statements.
I-2
ENEX OIL AND GAS INCOME PROGRAM III - SERIES 5, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30, JUNE 30,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 6,739 $ (3,825)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation, depletion and amortization 52,813 64,581
(Increase) in:
Accounts receivable - oil & gas sales (2,707) (6,759)
Other current assets (1,164) (3,838)
Increase (decrease) in:
Accounts payable (4,148) (14,928)
Payable to affiliated limited partnership 1,167 -
Payable to general partner (14,924) 26,376
Total adjustments 31,037 65,432
Net cash provided by operating activities 37,776 61,607
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs (2,699) (19,698)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (45,509) (35,247)
NET INCREASE (DECREASE) IN CASH (10,432) 6,662
CASH AT BEGINNING OF YEAR 10,432 12,705
CASH AT END OF PERIOD $ - $ 19,367
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 $19,360, representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on April 30, 1995.
Item 2. Management's Discussion and Analysis or Plan of Operation.
Second Quarter 1995 Compared to Second Quarter 1994
Oil and gas sales for the second quarter decreased from $102,680 in 1994 to
$84,736 in 1995. This represents a decrease of $17,944 (17%). Oil sales
decreased by $11,386 (14%). A 28% decrease in oil production reduced sales
by $23,181. This decrease was partially offset by a 20% increase in
average oil sales price. Gas sales decreased by $6,558 (33%). A 31%
decrease in the average gas sales price reduced sales by $6,030. A 3%
decrease in gas production reduced sales by an additional $528. 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. The lower oil production was
primarily due to the shut-in of production from the Corkscrew acquisition
for rod repairs, which were successfully completed in the second quarter of
1995, coupled with natural production declines.
Lease operating expenses increased from $37,166 in 1994 to $49,612 in 1995.
The increase of $12,446 (33%) is primarily due to workover costs incurred
on the Hightower and Corkscrew acquisitions in 1995.
Depreciation and depletion expense decreased from $32,661 in the second
quarter of 1994 to $21,330 in the second quarter of 1995. This represents
a decrease of $11,331 (35%). The decline in production, noted above,
reduced depreciation and depletion expense by $7,572. A 15% decrease in
the depletion rate reduced depreciation and depletion expense by an
additional $3,759. 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 $12,783 in 1994 to
$10,545 in 1995. This decrease of $2,238 (18%) is primarily due to less
staff time being required to manage the Company's operations in 1995.
First Six Months in 1995 Compared to First Six Months in 1994
Oil and gas sales for the first six months increased from $184,481 in 1994
to $189,409 in 1995. This represents an increase of $4,928 (3%). Oil
sales increased by $17,105 (12%). A 22% increase in average oil sales
price increased sales by $29,048. This increase was partially offset by an
8% decrease in oil production. Gas sales decreased by $12,177 (30%). An
18% decrease in the average gas sales price reduced sales by $6,351. A 14%
decrease in gas production reduced sales by an additional $5,826. 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 $87,140 in 1994 to $94,708 in 1995.
The increase of $7,568 (9%) is primarily due to workover costs incurred on
the Hightower and Corkscrew acquisitions in 1995.
Depreciation and depletion expense decreased from $64,581 in the first six
months of 1994 to $52,813 in the first six months of 1995. This represents
a decrease of $11,768 (18%). The decline in production, noted above,
reduced depreciation and depletion expense by $6,137. A 10% decrease in
the depletion rate reduced depreciation and depletion expense by an
additional $5,631. 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 $26,509 in 1994 to
$24,547 in 1995. This decrease of $1,962 (7%) 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 during 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
form 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 June 30, 1995, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
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 June 30, 1995.
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
August 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
August 11, 1995 By:
James A. Klein
Controller and Chief
Accounting Officer
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 42,468
<ALLOWANCES> 0
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<PP&E> 3,577,687
<DEPRECIATION> (3,199,201)
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<OTHER-SE> 187,177
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<SALES> 189,409
<TOTAL-REVENUES> 189,409
<CGS> 158,123
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<INCOME-TAX> 0
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