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 0-16574
ENEX OIL & GAS INCOME PROGRAM III - SERIES 6, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0214443
(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 6, L.P.
BALANCE SHEET
- - ----------------------------------------------------------------------------
September 30,
ASSETS 1995
-------------
(Unaudited)
CURRENT ASSETS:
<S> <C>
Cash ................................................ $ 8,097
Accounts receivable - oil & gas sales ............... 37,024
Other current assets ................................ 3,063
----------
Total current assets .................................. 48,184
----------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 3,357,020
Less accumulated depreciation and depletion ........ 2,871,113
----------
Property, net ......................................... 485,907
----------
TOTAL ................................................. $ 534,091
==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable ................................... $ 19,468
Payable to general partner ......................... 48,607
----------
Total current liabilities ............................. 68,075
----------
NONCURRENT PAYABLE TO GENERAL PARTNER ................. 145,820
----------
PARTNERS' CAPITAL:
Limited partners ................................... 269,954
General partner .................................... 50,243
----------
Total partners'capital ................................ 320,197
----------
TOTAL ................................................. $ 534,091
==========
<FN>
See accompanying notes to financial statements.
- - ----------------------------------------------------------------------------
</FN>
</TABLE>
I-1
<PAGE>
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM III - SERIES 6, 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 .......... $ 81,301 $ 105,936 $ 270,792 $ 311,127
--------- --------- --------- ---------
EXPENSES:
Depreciation and depletion . 38,683 43,123 113,580 131,110
Lease operating expenses ... 46,949 48,542 142,973 136,925
Production taxes ........... 4,521 6,074 15,488 16,795
General and administrative . 11,943 11,829 42,256 40,718
--------- --------- --------- ---------
Total expenses ............... 102,096 109,568 314,297 325,548
--------- --------- --------- ---------
NET (LOSS) ................... $ (20,795) $ (3,632) $ (43,505) $ (14,421)
========= ========= ========= =========
<FN>
See accompanying notes to financial statements.
- - ------------------------------------------------------------------------------------------------
</FN>
</TABLE>
I-2
<PAGE>
<TABLE>
<CAPTION>
ENEX OIL AND GAS INCOME PROGRAM III - SERIES 6, 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) ..................................... $ (43,505) $ (14,421)
---------- ----------
Adjustments to reconcile net (loss) to net cash
provided by operating activities:
Depreciation, depletion and amortization ..... 113,580 131,110
(Increase) decrease in:
Accounts receivable - oil & gas sales ........ 4,101 (4,903)
Other current assets ......................... (1,033) (3,396)
Increase (decrease) in:
Accounts payable ............................ (4,487) (25,177)
Payable to general partner .................. (9,575) 14,389
---------- ----------
Total adjustments .............................. 102,586 112,023
---------- ----------
Net cash provided by operating activities ...... 59,081 97,602
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs ..... (7,226) (18,145)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions .......................... (47,006) (74,368)
---------- ----------
NET INCREASE IN CASH ........................... 4,849 5,089
CASH AT BEGINNING OF YEAR ...................... 3,248 15,952
---------- ----------
CASH AT END OF PERIOD .......................... $ 8,097 21,041
========== ==========
<FN>
See accompanying notes to financial statements.
- - ---------------------------------------------------------------------------------
</FN>
</TABLE>
I-3
<PAGE>
ENEX OIL & GAS INCOME PROGRAM III - SERIES 6, 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 $9,953, representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on July 31, 1995.
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 $105,936 in 1994 to
$81,301 in 1995. This represents a decrease of $24,635 (23%). Oil sales
decreased by $11,485 (16%). A 15% decrease in the average oil sales price
reduced sales by $10,659, while a 1% decrease in oil production reduced sales by
an additional $826. Gas sales decreased by $13,150 (40%). A 12% decrease in the
average gas sales price decreased sales by $2,544. A 31% decrease in gas
production reduced sales by an additional $10,606. The changes in the average
sales prices correspond with changes in the overall market for the sale of oil
and gas. The slight decrease in oil production was primarily a result of natural
production declines partially offset by higher production from the Corkscrew
acquisition which successfully completed rod repairs in the second quarter of
1995. The decrease in gas production was primarily the result of natural
production declines which were especially pronounced on the Barnes Estate and
RIC acquisitions.
Lease operating expenses decreased from $48,542 in 1994 to $46,949 in 1995. The
decrease of $1,593 (3%) is primarily due to the lower production, as noted
above.
Depreciation and depletion expense decreased from $43,123 in the third quarter
of 1994 to $38,683 in the third quarter of 1995. This represents a decrease of
$4,440 (10%). The changes in production, noted above, caused depreciation and
depletion expense to decrease by $5,653. This decrease was partially offset by a
3% increase in the depletion rate. The rate increase was primarily due to
relatively higher production from properties with a higher depletion rate
partially offset by upward revisions of the oil and gas reserves at December 31,
1994.
General and administrative expenses increased from $11,829 in 1994 to $11,943 in
1995. This increase of $114 (1%) is primarily due to is primarily due to $2,819
of legal costs incurred in the third quarter of 1995 for a property interest
dispute on the Barnes Estate acquisition.
First Nine Months in 1995 Compared to First Nine Months in 1994
Oil and gas sales for the first nine months decreased from $311,127 in 1994 to
$270,792 in 1995. This represents a decrease of $40,335 (13%). Oil sales
increased by $5,287 (3%). An 8% increase in the average oil sales price
increased sales by $14,992. This increase was partially offset by a 5% decrease
in oil production. Gas sales decreased by $45,622 (40%). A 20% decrease in the
average gas sales price decreased sales by $17,003. A 25% decrease in gas
production reduced sales by an additional $28,619. The changes in the average
sales prices correspond with changes in the overall market for the sale of oil
and gas. The changes in oil and gas production were primarily a result of
natural production declines.
I-5
<PAGE>
Lease operating expenses increased from $136,925 in 1994 to $142,973 in 1995.
The increase of $6,048 (4%) is primarily due to workover expenses incurred on
the Corkscrew acquisition in 1995 to repair rods.
Depreciation and depletion expense decreased from $131,110 in the first nine
months of 1994 to $113,580 in the first nine months of 1995. This represents a
decrease of $17,530 (13%). The decline in production, noted above, caused
depreciation and depletion expense to decrease by $16,737, while a 1% decrease
in the depletion rate reduced depreciation and depletion expense by an
additional $793. This rate decrease was primarily a result of an upward revision
of the oil and gas reserves at December 31, 1994.
General and administrative expenses increased from $40,718 in 1994 to $42,256 in
1995. This increase of $1,538 (4%) is primarily due to $5,880 of legal costs
incurred in 1995 for a property interest dispute on the Barnes Estate
acquisition, partially offset by less staff time being required to manage the
Company's operations.
CAPITAL RESOURCES AND LIQUIDITY
The Company's cash flow is a direct result of the amount of net proceeds
realized from the sale of oil and gas production after the payment of its debt
obligations. 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
remaining available cash flow to the Company's partners.
The Company discontinued the payment of distributions during October 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 6, 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>
PPD ASSETS = 3063; LONG-TERM LIAB = 145820
</LEGEND>
<CIK> 0000830319
<NAME> Enex Oil & Gas Income Program III - Series 6, L.P.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> dec-31-1995
<PERIOD-START> jan-01-1995
<PERIOD-END> sep-30-1995
<CASH> 8097
<SECURITIES> 0
<RECEIVABLES> 37024
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 48184
<PP&E> 3357020
<DEPRECIATION> 2871113
<TOTAL-ASSETS> 534091
<CURRENT-LIABILITIES> 68075
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 320197
<TOTAL-LIABILITY-AND-EQUITY> 534091
<SALES> 270792
<TOTAL-REVENUES> 270792
<CGS> 272041
<TOTAL-COSTS> 272041
<OTHER-EXPENSES> 42256
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (43505)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
