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 0-17561
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 1, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0251419
(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) has 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 IV - SERIES 1, L.P.
BALANCE SHEET
- --------------------------------------------------------------------------------
September 30,
ASSETS 1995
-------------
(Unaudited)
CURRENT ASSETS:
<S> <C>
Accounts receivable - oil & gas sales ........................ $ 25,774
Other current assets ......................................... 1,111
----------
Total current assets ........................................... 26,885
----------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities ........ 3,286,745
Less accumulated depreciation and depletion ................. 2,939,352
----------
Property, net .................................................. 347,393
----------
TOTAL .......................................................... $ 374,278
==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable ............................................ $ 5,610
Payable to general partner .................................. 44,619
----------
Total current liabilities ...................................... 50,229
----------
NONCURRENT PAYABLE TO
GENERAL PARTNER ............................................. 89,238
----------
PARTNERS' CAPITAL:
Limited partners ............................................ 193,950
General partner ............................................. 40,861
----------
Total partners' capital ........................................ 234,811
----------
TOTAL .......................................................... $ 374,278
==========
<FN>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
</FN>
</TABLE>
I-1
<PAGE>
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 1, 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 .......... $ 43,216 $ 62,283 $ 142,538 $ 210,853
---------- ---------- ---------- ----------
EXPENSES:
Depreciation and depletion . 30,021 33,883 88,361 108,535
Lease operating expenses ... 19,861 13,420 77,278 73,888
Production taxes ........... 2,505 3,650 8,546 10,397
General and administrative . 8,008 6,142 33,685 24,561
---------- ---------- ---------- ----------
Total expenses ............... 60,395 57,095 207,870 217,381
---------- ---------- ---------- ----------
NET INCOME (LOSS) ............ $ (17,179) $ 5,188 $ (65,332) $ (6,528)
========== ========== ========== ==========
<FN>
See accompanying notes to financial statements.
- ------------------------------------------------------------------------------------
</FN>
</TABLE>
I-2
<PAGE>
<TABLE>
<CAPTION>
ENEX OIL AND GAS INCOME PROGRAM IV - SERIES 1, 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) ....................................... $(65,332) $ (6,528)
--------- ---------
Adjustments to reconcile net (loss) to net cash
provided by operating activities:
Depreciation and depletion ..................... 88,361 108,535
(Increase) decrease in:
Accounts receivable - oil & gas sales .......... (869) 9,737
Other current assets ........................... (620) (1,234)
Increase (decrease) in:
Accounts payable .............................. (8,015) (13,228)
Payable to general partner .................... (2,699) 1,885
--------- ---------
Total adjustments ................................ 76,158 105,695
--------- ---------
Net cash provided by operating activities ........ 10,826 99,167
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs ....... (2,785) (878)
--------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ............................ (9,070) (94,296)
--------- --------
NET INCREASE (DECREASE) IN CASH .................. (1,029) 3,993
CASH AT BEGINNING OF YEAR ........................ 1,029 14,394
--------- --------
CASH AT END OF PERIOD ............................ $ -- 18,387
========= ========
<FN>
See accompanying notes to financial statements.
- ------------------------------------------------------------------------------
</FN>
</TABLE>
I-3
<PAGE>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 1, 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 Operations.
Third Quarter 1995 Compared to Third Quarter 1994
Oil and gas sales for the third quarter decreased from $62,283 in 1994 to
$43,216 in 1995. This represents a decrease of $19,067 (31%). Oil sales
decreased by $1,804 (8%). A 6% decrease in the average oil sales price reduced
sales by $1,319. A 2% decrease in oil production reduced sales by an additional
$485. Gas sales decreased by $17,263 (44%). A 5% decrease in the average gas
sales price reduced sales by $1,078. A 42% decrease in gas production reduced
sales by an additional $16,185. The changes in average sales prices correspond
with changes in the overall market for the sale of oil and gas. The decrease in
gas production was primarily due to natural production declines which were
especially pronounced on the Barnes Estate acquisition. The slight decrease in
oil production results from natural production declines, partially offset by
higher production from the Credo acquisition which successfully completed a
workover in the first quarter of 1995.
Lease operating expenses increased from $13,420 in 1994 to $19,861 in 1995.
The increase of $6,441 (48%) is primarily due to the payment of a litigation
settlement to resolve a property dispute on the Barnes Estate acquisition in the
third quarter of 1995.
Depreciation and depletion expense decreased from $33,883 in the third quarter
of 1994 to $30,021 in the third quarter of 1995. This represents a decrease of
$3,862 (11%). The changes in production, noted above, reduced depreciation and
depletion expense by $10,636. This decrease was partially offset by a 29%
increase in the depletion rate. The rate increase is primarily due to a downward
revision of the oil and gas reserves at December 31, 1994.
General and administrative expenses increased from $6,142 in 1994 to $8,008 in
1995. This increase of $1,866 is primarily due to $3,293 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 $210,853 in 1994 to
$142,538 in 1995. This represents a decrease of $68,315 (32%). Oil sales
decreased by $4,879 (7%). A 14% decrease in oil production reduced sales by
$10,288. This decrease was partially offset by a 9% increase in the average oil
sales price. Gas sales decreased by $63,436 (46%). A 17% decrease in the average
gas sales price reduced sales by $15,243. A 32% decrease in gas production
reduced sales by an additional $31,450. The changes in the average sales prices
correspond with changes in the overall market for the sale of oil and gas. The
decrease in gas production was primarily due to natural production declines
which were especially pronounced on the Barnes Estate acquisition. The decrease
in oil production results from natural production declines and the shut-in of
production from the Credo acquisition to perform a workover which was
successfully completed in the first quarter of 1995.
I-5
<PAGE>
Lease operating expenses for the first nine months increased from $73,888 in
1994 to $77,278 in 1995. The increase of $3,390 (5%) is primarily due to costs
incurred on the Credo acquisition to repair a casing leak in the first quarter
of 1995 and the payment of a litigation settlement to resolve a property dis-
pute on the Barnes Estate acquisition, partially offset by the declines in
production, noted above.
Depreciation and depletion expense decreased from $108,535 in the first nine
months of 1994 to $88,361 in the first nine months of 1995. This represents a
decrease of $20,174 (19%). The changes in production, noted above, reduced
depreciation and depletion expense by $31,607. This decrease was partially
offset by a 15% increase in the depletion rate. This rate increase is primarily
due to downward revisions of the oil and gas reserves at December 31, 1994.
General and administrative expenses increased from $24,561 in 1994 to $33,685 in
1995. This increase of $9,124 (37%) is primarily due to $15,770 of legal costs
incurred in 1995 for a property interest dispute on the Barnes Estate
acquisition, partially offset by lower costs allocated by the general partner in
1995.
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 repayment of its debt
obligations. Accordingly, the changes in cash flow from 1995 to 1994 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 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 IV - SERIES 1, 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>
Enex Oil & Gas Income Program IV - Series 1, L.P.
</LEGEND>
<CIK> 0000842832
<NAME> Enex Oil & Gas Income Program IV - Series 1, 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> 0
<SECURITIES> 0
<RECEIVABLES> 25774
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 26885
<PP&E> 3286745
<DEPRECIATION> 2939352
<TOTAL-ASSETS> 374278
<CURRENT-LIABILITIES> 50229
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 234811
<TOTAL-LIABILITY-AND-EQUITY> 374278
<SALES> 142538
<TOTAL-REVENUES> 142538
<CGS> 174185
<TOTAL-COSTS> 174185
<OTHER-EXPENSES> 33685
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (65332)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
