UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
/ x / Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 1997
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 No. 33-19133-A
PARKER & PARSLEY PRODUCING PROPERTIES 88-A, L.P.
(Exact name of Registrant as specified in its charter)
Delaware 75-2225758
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
303 West Wall, Suite 101, Midland, Texas 79701
(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code : (915) 683-4768
Not applicable
(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.
Yes / x / No / /
Page 1 of 10 pages.
-There are no exhibits-
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PARKER & PARSLEY PRODUCING PROPERTIES 88-A, L.P.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of March 31, 1997 and
December 31, 1996........................................ 3
Statements of Operations for the three months
ended March 31, 1997 and 1996............................ 4
Statement of Partners' Capital for the three months
ended March 31, 1997..................................... 5
Statements of Cash Flows for the three months
ended March 31, 1997 and 1996............................ 6
Notes to Financial Statements.............................. 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...................... 7
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K........................... 9
27. Financial Data Schedule
Signatures................................................. 10
2
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PARKER & PARSLEY PRODUCING PROPERTIES 88-A, L.P.
(A Delaware Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
March 31, December 31,
1997 1996
----------- ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $444,641 at March 31
and $430,432 at December 31 $ 444,709 $ 430,500
Accounts receivable - affiliate 116,723 150,093
---------- ----------
Total current assets 561,432 580,593
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 4,845,222 4,842,343
Accumulated depletion (2,972,358) (2,931,081)
---------- ----------
Net oil and gas properties 1,872,864 1,911,262
---------- ----------
$ 2,434,296 $ 2,491,855
========== ==========
PARTNERS' CAPITAL
Partners' capital:
Managing general partner $ 23,864 $ 24,280
Limited partners (11,222 interests) 2,410,432 2,467,575
----------- ----------
$ 2,434,296 $ 2,491,855
=========== ==========
The financial information included as of March 31, 1997 has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
3
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PARKER & PARSLEY PRODUCING PROPERTIES 88-A, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
-------------------------
1997 1996
---------- ----------
Revenues:
Oil and gas $ 241,031 $ 203,497
Interest 4,421 4,595
--------- ---------
245,452 208,092
--------- ---------
Costs and expenses:
Oil and gas production 87,484 82,391
General and administrative 7,216 6,105
Depletion 41,277 38,941
--------- ---------
135,977 127,437
--------- ---------
Net income $ 109,475 $ 80,655
========= =========
Allocation of net income:
Managing general partner $ 1,095 $ 806
========= =========
Limited partners $ 108,380 $ 79,849
========= =========
Net income per limited partnership interest $ 9.66 $ 7.12
========= =========
Distributions per limited partnership interest $ 14.75 $ 9.50
========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
4
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PARKER & PARSLEY PRODUCING PROPERTIES 88-A, L.P.
(A Delaware Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
--------- ---------- ----------
Balance at January 1, 1997 $ 24,280 $2,467,575 $2,491,855
Distributions (1,511) (165,523) (167,034)
Net income 1,095 108,380 109,475
-------- --------- ---------
Balance at March 31, 1997 $ 23,864 $2,410,432 $2,434,296
======== ========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
5
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PARKER & PARSLEY PRODUCING PROPERTIES 88-A, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
March 31,
------------------------
1997 1996
---------- ----------
Cash flows from operating activities:
Net income $ 109,475 $ 80,655
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 41,277 38,941
Changes in assets:
(Increase) decrease in accounts receivable 33,370 (24,460)
--------- ---------
Net cash provided by operating activities 184,122 95,136
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (2,879) -
Cash flows from financing activities:
Cash distributions to partners (167,034) (107,351)
---------- ---------
Net increase (decrease) in cash and cash equivalents 14,209 (12,215)
Cash and cash equivalents at beginning of period 430,500 444,066
--------- ---------
Cash and cash equivalents at end of period $ 444,709 $ 431,851
========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
PARKER & PARSLEY PRODUCING PROPERTIES 88-A, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
(Unaudited)
Note 1. Organization and nature of operations
Parker & Parsley Producing Properties 88-A, L.P. (the "Partnership") is a
limited partnership organized in 1988 under the laws of the State of Delaware.
The Partnership engages primarily in oil and gas production in Texas and is not
involved in any industry segment other than oil and gas.
Note 2. Basis of presentation
In the opinion of management, the unaudited financial statements as of March 31,
1997 of the Partnership include all adjustments and accruals consisting only of
normal recurring accrual adjustments which are necessary for a fair presentation
of the results for the interim period. However, these interim results are not
necessarily indicative of results for a full year.
The financial statements should be read in conjunction with the financial
statements and the notes thereto contained in the Partnership's Report on Form
10-K for the year ended December 31, 1996, as filed with the Securities and
Exchange Commission, a copy of which is available upon request by writing to
Steven L. Beal, Senior Vice President, 303 West Wall, Suite 101, Midland, Texas
79701.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations(1)
Results of Operations
Revenues:
The Partnership's oil and gas revenues increased to $241,031 from $203,497 for
the three months ended March 31, 1997 and 1996, respectively, an increase of
18%. The increase in revenues was attributable to higher average prices received
per barrel of oil and mcf of gas and a slight increase in barrels of oil
produced and sold, offset by a 10% decrease in mcf of gas produced and sold. For
the three months ended March 31, 1997, 7,704 barrels of oil were sold compared
to 7,633 for the same period in 1996, an increase of 71 barrels. For the three
months ended March 31, 1997, 25,117 mcf of gas were sold compared to 27,921 for
the same period in 1996, a decrease of 2,804 mcf. The decrease in mcf of gas
produced and sold was primarily due to the decline characteristics of the
Partnership's oil and gas properties. The increase in barrels of oil produced
and sold was the result of operational changes on several wells. Management
7
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expects a certain amount of decline in production to continue in the future
until the Partnership's economically recoverable reserves are fully depleted.
The average price received per barrel of oil increased $2.88, or 15%, from
$18.71 for the three months ended March 31, 1996 to $21.59 for the same period
in 1997, while the average price received per mcf of gas increased 37% from
$2.17 during the three months ended March 31, 1996 to $2.97 for the same period
in 1997. The market price for oil and gas has been extremely volatile in the
past decade, and management expects a certain amount of volatility to continue
in the foreseeable future. The Partnership may therefore sell its future oil and
gas production at average prices lower or higher than that received during the
three months ended March 31, 1997.
Costs and Expenses:
Total costs and expenses increased to $135,977 for the three months ended March
31, 1997 as compared to $127,437 for the same period in 1996, an increase of
$8,540, or 7%. This increase was due to increases in production costs, general
and administrative expenses ("G&A") and depletion.
Production costs were $87,484 for the three months ended March 31, 1997 and
$82,391 for the same period in 1996 resulting in a $5,093 increase, or 6%. This
increase was the result of an increase in well repair and maintenance costs and
higher production taxes.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A
increased, in aggregate, 18% from $6,105 for the three months ended March 31,
1996 to $7,216 for the same period in 1997. The Partnership agreement limits G&A
to 3% of gross oil and gas revenues.
Depletion was $41,277 for the three months ended March 31, 1997 compared to
$38,941 for the same period in 1996. This represented an increase in depletion
of $2,366, or 6%.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $88,986 for the three months
ended March 31, 1997 from the same period in 1996. This increase was due to an
increase in oil and gas sales receipts and a decrease in production costs paid.
Net Cash Used in Investing Activities
The Partnership's investing activities for the three months ended March 31, 1997
were related to the addition of oil and gas equipment on active properties.
Net Cash Used in Financing Activities
Cash was sufficient for the three months ended March 31, 1997 to cover
distributions to the partners of $167,034 of which $165,523 was distributed to
the limited partners and $1,511 to the managing general partner. For the same
8
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period ended March 31, 1996, cash was sufficient for distributions to the
partners of $107,351 of which $106,610 was distributed to the limited partners
and $741 to the managing general partner.
It is expected that future net cash provided by operating activities will be
sufficient for any capital expenditures and any distributions. As the production
from the properties declines, distributions are also expected to decrease.
- ---------------
(1) "Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations" contains forward looking statements that involve
risks and uncertainties. Accordingly, no assurances can be given that the
actual events and results will not be materially different than the
anticipated results described in the forward looking statements.
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K - none
9
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PARKER & PARSLEY PRODUCING PROPERTIES 88-A, L.P.
(A Delaware Limited Partnership)
S I G N A T U R E S
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 thereunto duly authorized.
PARKER & PARSLEY PRODUCING
PROPERTIES 88-A, L.P.
By: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: May 13, 1997 By: /s/ Steven L. Beal
------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
10
<PAGE>
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 444,709
<SECURITIES> 0
<RECEIVABLES> 116,723
<ALLOWANCES> 0
<INVENTORY> 0
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<PP&E> 4,845,222
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0
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<COMMON> 0
<OTHER-SE> 2,434,296
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<SALES> 241,031
<TOTAL-REVENUES> 245,452
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<INCOME-CONTINUING> 109,475
<DISCONTINUED> 0
<EXTRAORDINARY> 0
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