FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to _____________
Commission File number 33-11773-02
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
(Exact name of registrant as specified in its charter)
Texas 76-0235236
(State or other (I.R.S. Employer Identification No.)
jurisdiction of organization)
16825 Northchase Drive, Suite 400
Houston, Texas 77060
(Address of principal executive offices)
(Zip Code)
(713)874-2700
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed
since last report)
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.
<PAGE>
Yes X No
------ -------
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
INDEX
PART I. FINANCIAL INFORMATION PAGE
ITEM 1. Financial Statements
Balance Sheets
- June 30, 1995 and December 31, 1994 3
Statements of Operations
- Three month and six month periods ended
June 30, 1995 and 1994 4
Statements of Cash Flows
- Six month periods ended June 30, 1995
and 1994 5
Notes to Financial Statements
6
ITEM 2. Management's Discussion and
Analysis of Financial
Condition and Results of
Operations 7
PART II. OTHER INFORMATION
9
SIGNATURES
10
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
___________ ____________
(Unaudited)
<S> <C> <C>
ASSETS:
Current Assets:
Cash and cash equivalents $ 1,601 $ 1,401
Oil and gas sales receivable 278,222 373,111
----------- ----------
Total Current Assets 279,823 374,512
----------- ----------
Oil and Gas Properties, using full cost
accounting 18,270,714 18,263,806
Less-Accumulated depreciation, depletion
and amortization (14,655,550) (14,122,080)
------------ ----------
3,615,164 4,141,726
------------ ----------
$ 3,894,987 $ 4,516,238
=========== ==========
LIABILITIES AND PARTNERS' CAPITAL:
Current Liabilities:
Accounts payable and accrued liabilities $ 120,575 $ 172,192
Current portion of note payable 75,470 100,626
----------- ----------
Total Current Liabilities 196,045 272,818
----------- ----------
Note payable to a Bank, net
of current portion -- 25,157
Deferred Revenues 162,449 159,965
Partners' Capital 3,536,493 4,058,298
----------- ----------
$ 3,894,987 $ 4,516,238
=========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
_________________________ _________________________
1995 1994 1995 1994
<S> <C> <C> <C> <C>
REVENUES:
Oil and gas sales $ 294,410 $ 391,728 $ 611,961 $ 783,230
Interest income 80 9 87 12
Other 6,123 3,655 11,419 6,944
--------------- --------------- --------------- ---------------
300,613 395,392 623,467 790,186
--------------- --------------- --------------- ---------------
COSTS AND EXPENSES:
Lease operating 113,089 96,710 234,062 222,339
Production taxes 16,812 18,458 31,538 44,020
Depreciation, depletion
and amortization -
Normal provision 115,612 127,477 250,406 268,915
Additional provision 251,887 -- 283,064 --
General and administrative 33,312 55,056 70,244 103,056
Interest expense 6,732 8,363 14,036 16,764
--------------- --------------- --------------- ---------------
537,444 306,064 883,350 655,094
--------------- --------------- --------------- ---------------
NET INCOME (LOSS) $ (236,831) $ 89,328 $ (259,883) $ 135,092
============ ============ =========== ============
Limited Partners' net income (loss)
per unit $ (1.24) $ .47 $ (1.36) $ .71
============ ============ ============ ============
</TABLE>
See accompanying note to financial statements.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
__________________________________________
1995 1994
___________________ __________________
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Income (loss) $ (259,883) $ 135,092
Adjustments to reconcile income (loss) to
net cash provided by operations:
Depreciation, depletion and amortization 533,470 268,915
Deferred revenues 2,484 26,579
Change in assets and liabilities:
(Increase) decrease in oil and gas sales receivable 94,889 34,675
Increase (decrease) in accounts payable
and accrued liabilities (51,617) 5,441
--------------- ---------------
Net cash provided by (used in) operating activities 319,343 470,702
--------------- ---------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties (26,408) (46,595)
Proceeds from sales of oil and gas properties 19,500 36,576
--------------- ---------------
Net cash provided by (used in) investing activities (6,908) (10,019)
--------------- ---------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions to partners (261,922) (410,306)
Payments on note payable (50,313) (50,313)
--------------- ---------------
Net cash provided by (used in) financing activities (312,235) (460,619)
--------------- ---------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 200 64
--------------- ---------------
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,401 1,230
--------------- ---------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,601 $ 1,294
=============== ===============
Supplemental disclosure of cash flow information:
Cash paid during the period for interest $ 5,473 $ 7,735
============== ==============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(1) General Information -
The financial statements included herein have been prepared by
the Partnership and are unaudited except for the balance sheet at
December 31, 1994 which has been taken from the audited financial
statements at that date. The financial statements reflect adjustments, all
of which were of a normal recurring nature, which are, in the opinion of
the managing general partner necessary for a fair presentation. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been omitted pursuant to the rules and regulations of the
Securities and Exchange Commission ("SEC"). The Partnership believes
adequate disclosure is provided by the information presented. The
financial statements should be read in conjunction with the audited
financial statements and the notes included in the latest Form 10-K.
(2) Deferred Revenues -
Deferred Revenues represent a gas imbalance liability assumed as
part of property acquisitions. The imbalance is accounted for on the
entitlements method, whereby the Partnership records its share of revenue,
based on its entitled amount. Any amounts over or under the entitled
amount are recorded as an increase or decrease to deferred revenues.
(3) Concentrations of Credit Risk -
The Partnership extends credit to various companies in the oil
and gas industry which results in a concentration of credit risk. This
concentration of credit risk may be affected by changes in economic or
other conditions and may accordingly impact the Partnership's overall
credit risk. However, the Managing General Partner believes that the risk
is mitigated by the size, reputation, and nature of the companies to which
the Partnership extends credit. In addition, the partnership generally
does not require collateral or other security to support customer
receivables.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
GENERAL
The Partnership was formed for the purpose of investing in producing
oil and gas properties located within the continental United States. In
order to accomplish this, the Partnership goes through two distinct yet
overlapping phases with respect to its liquidity and result of operations.
When the Partnership is formed, it commences its "acquisition" phase, with
all funds placed in short-term investments until required for such property
acquisitions. The interest earned on these pre-acquisition investments
becomes the primary cash flow source for initial partner distributions. As
the Partnership acquires producing properties, net cash from operations
becomes available for distribution, along with the investment income.
After partnership funds have been expended on producing oil and gas
properties, the Partnership enters its "operations" phase. During this
phase, oil and gas sales generate substantially all revenues, and
distributions to partners reflect those revenues less all associated
partnership expenses. The Partnership may also derive proceeds from the
sale of acquired oil and gas properties, when the sale of such properties
is economically appropriate or preferable to continued operation.
LIQUIDITY AND CAPITAL RESOURCES
The Partnership has completed acquisition of producing oil and gas
properties, expending all of the limited partners' commitments available
for property acquisitions.
The Partnership does not allow for additional assessments from the
partners to fund capital requirements. However, funds are available from
partnership revenues, borrowings or proceeds from the sale of partnership
property. The Managing General Partners believes that the funds currently
available to the partnership will be adequate to meet any anticipated
capital requirements.
RESULTS OF OPERATIONS
The following analysis explains changes in the revenue and expense
categories for the quarter ended June 30, 1995 (current quarter) when
compared to the quarter ended June 30, 1994 (corresponding quarter), and
for the six months ended June 30, 1995 (current period), when compared to
the six months ended June 30, 1994 (corresponding period).
Three Months Ended June 30, 1995 and 1994
Oil and gas sales declined $97,318 or 25 percent in the second quarter
of 1995 when compared to the corresponding quarter in 1994, primarily due
to decreased gas prices. A decline in gas prices of 26 percent or $.53/MCF
had a significant impact on partnership performance. Also, current quarter
gas and oil production declined 15 percent and 12 percent, respectively,
when compared to second quarter 1994 production volumes, further
contributing to decreased revenues. Increased oil prices of 5 percent or
$.80/BBL partially offset the revenue declines.
<PAGE>
Associated depreciation expense decreased 9 percent or $11,865.
The Partnership recorded an additional provision in depreciation,
depletion and amortization in the second quarter of 1995 for $251,887 when
the present value, discounted at ten percent, of estimated future net
revenues from oil and gas properties, using the guidelines of the
Securities and Exchange Commission, was below the fair market value
originally paid for oil and gas properties. The additional provision
results from the Managing General Partner's determination that the fair
market value paid for properties may or may not coincide with reserve
valuations determined according to guidelines of the Securities and
Exchange Commission.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Six Months Ended June 30, 1995 and 1994
Oil and gas sales decreased $171,269 or 22 percent in the first six
months of 1995 over the corresponding period in 1994. A decline in the
current period gas prices of 30 percent or $.63/MCF had a significant
impact on partnership performance. Also, current period gas and oil
production declined 13 percent and 11 percent, respectively, when compared
to the corresponding period in 1994, further contributing to decreased
income. Increased oil prices of 30 percent or $3.77/BBL partially offset
the revenue declines.
Associated depreciation expense decreased 7 percent or $18,509.
The Partnership recorded an additional provision in depreciation,
depletion and amortization in the first six months of 1995 for $283,064
when the present value, discounted at ten percent, of estimated future net
revenues from oil and gas properties, using the guidelines of the
Securities and Exchange Commission, was below the fair market value
originally paid for oil and gas properties. The additional provision
results from the Managing General Partner's determination that the fair
market value paid for properties may or may not coincide with reserve
valuations determined according to guidelines of the Securities and
Exchange Commission.
During 1995, partnership revenues and costs will be shared between the
limited partners and general partners in a 90:10 ratio.
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
PART II - OTHER INFORMATION
ITEM 5. OTHER INFORMATION
-NONE-
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
SWIFT ENERGY INCOME
PARTNERS 1987-C, LTD.
(Registrant)
By: SWIFT ENERGY COMPANY
Managing General Partner
Date: August 11, 1995 By: /s/ John R. Alden
----------------------- --------------------------------
John R. Alden
Senior Vice President, Secretary
and Principal Financial Officer
Date: August 11, 1995 By: /s/ Alton D. Heckaman, Jr.
----------------------- --------------------------------
Alton D. Heckaman, Jr.
Vice President, Controller
and Principal Accounting Officer
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
SWIFT ENERGY INCOME
PARTNERS 1987-C, LTD.
(Registrant)
By: SWIFT ENERGY COMPANY
Managing General Partner
Date: August 11, 1995 By:
--------------------------------
John R. Alden
Senior Vice President, Secretary
and Principal Financial Officer
Date: August 11, 1995 By:
--------------------------------
Alton D. Heckaman, Jr.
Vice President, Controller
and Principal Accounting Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 1,601
<SECURITIES> 0
<RECEIVABLES> 278,222
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 279,823
<PP&E> 18,270,714
<DEPRECIATION> (14,655,550)
<TOTAL-ASSETS> 3,894,987
<CURRENT-LIABILITIES> 196,045
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 3,536,493
<TOTAL-LIABILITY-AND-EQUITY> 3,894,987
<SALES> 611,961
<TOTAL-REVENUES> 623,467
<CGS> 0
<TOTAL-COSTS> 799,070<F1>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 14,036
<INCOME-PRETAX> (259,883)
<INCOME-TAX> 0
<INCOME-CONTINUING> (259,883)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (259,883)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Includes lease operating expense, production taxes, and depreciation,
depletion and amortization expense.
</FN>
</TABLE>
