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 June 30, 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. 33-26097-05
PARKER & PARSLEY 90-A, L.P.
(Exact name of Registrant as specified in its charter)
Delaware 75-2329245
(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 11 pages.
Exhibit index on page 10.
1
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PARKER & PARSLEY 90-A, L.P.
TABLE OF CONTENTS
Page
----
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of June 30, 1997 and
December 31, 1996 .................................. 3
Statements of Operations for the three and six
months ended June 30, 1997 and 1996.................... 4
Statement of Partners' Capital for the six months
ended June 30, 1997.................................... 5
Statements of Cash Flows for the six months ended
June 30, 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......................... 10
27. Financial Reporting Schedule
Signatures............................................... 11
2
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PARKER & PARSLEY 90-A, L.P.
(A Delaware Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
June 30, December 31,
1997 1996
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $123,038 at June 30
and $102,316 at December 31 $ 123,288 $ 127,525
Accounts receivable - oil and gas sales 72,291 131,628
---------- ----------
Total current assets 195,579 259,153
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 5,062,699 5,053,096
Accumulated depletion (3,240,083) (3,165,751)
---------- ----------
Net oil and gas properties 1,822,616 1,887,345
---------- ----------
$ 2,018,195 $ 2,146,498
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 19,825 $ 18,703
Accounts payable - other - 32
---------- ----------
19,825 18,735
---------- ----------
Partners' capital:
Managing general partner 20,064 21,358
Limited partners (6,811 interests) 1,978,306 2,106,405
---------- ----------
1,998,370 2,127,763
---------- ----------
$ 2,018,195 $ 2,146,498
========== ==========
The financial information included as of June 30, 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 90-A, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
-----------------------------------------------
1997 1996 1997 1996
--------- --------- --------- ---------
Revenues:
Oil and gas $ 145,527 $ 183,070 $ 325,758 $ 367,716
Interest 1,933 1,697 3,778 3,114
-------- -------- -------- --------
147,460 184,767 329,536 370,830
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 74,403 72,605 148,358 147,773
General and administrative 4,630 6,260 10,560 11,799
Depletion 37,971 47,333 74,332 99,108
Loss on sale of assets - 28,704 - 28,704
-------- -------- -------- --------
117,004 154,902 233,250 287,384
-------- -------- -------- --------
Net income $ 30,456 $ 29,865 $ 96,286 $ 83,446
======== ======== ======== ========
Allocation of net income:
Managing general partner $ 305 $ 298 $ 963 $ 834
======== ======== ======== ========
Limited partners $ 30,151 $ 29,567 $ 95,323 $ 82,612
======== ======== ======== ========
Net income per limited
partnership interest $ 4.43 $ 4.34 $ 14.00 $ 12.13
======== ======== ======== ========
Distributions per limited
partnership interest $ 12.39 $ 13.83 $ 32.80 $ 25.33
======== ======== ======== ========
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 90-A, L.P.
(A Delaware Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
--------- ---------- ----------
Balance at January 1, 1997 $ 21,358 $2,106,405 $2,127,763
Distributions (2,257) (223,422) (225,679)
Net income 963 95,323 96,286
-------- --------- ---------
Balance at June 30, 1997 $ 20,064 $1,978,306 $1,998,370
======== ========= =========
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 90-A, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
June 30,
----------------------
1997 1996
--------- ---------
Cash flows from operating activities:
Net income $ 96,286 $ 83,446
Adjustments to reconcile net income to
net cash provided by operating activities:
Depletion 74,332 99,108
Loss on sale of assets - 28,704
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 59,337 (11,442)
Increase (decrease) in accounts payable 1,090 (13,470)
-------- --------
Net cash provided by operating activities 231,045 186,346
-------- --------
Cash flows from investing activities:
Additions to oil and gas properties (9,603) (457)
Proceeds from sale of assets - 6,828
-------- --------
Net cash provided by (used in)
investing activities (9,603) 6,371
-------- --------
Cash flows from financing activities:
Cash distributions to partners (225,679) (174,411)
-------- --------
Net increase (decrease) in cash and cash equivalents (4,237) 18,306
Cash and cash equivalents at beginning of period 127,525 118,751
-------- --------
Cash and cash equivalents at end of period $ 123,288 $ 137,057
======== ========
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
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PARKER & PARSLEY 90-A, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 1997
(Unaudited)
Note 1. Basis of presentation
In the opinion of management, the unaudited financial statements of Parker &
Parsley 90-A, L.P. (the "Partnership") as of June 30, 1997 and for the three and
six months ended June 30, 1997 and 1996 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. These interim results
are not necessarily indicative of results for a full year.
Certain information and footnote disclosure normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted in this Form 10-Q pursuant to the rules and
regulations of the Securities and Exchange Commission. 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 Rich Dealy, Controller, 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
Six months ended June 30, 1997 compared with six months ended
June 30, 1996
Revenues:
The Partnership's oil and gas revenues decreased 11% to $325,758 from $367,716
for the six months ended June 30, 1997 as compared to the six months ended June
30, 1996. The decrease in revenues resulted from a 16% decline in barrels of oil
produced and sold and a 15% decline in mcf of gas produced and sold, offset by a
14% increase in the average price received per mcf of gas and a slight increase
in the average price received per barrel of oil. For the six months ended June
30, 1997, 10,847 barrels of oil were sold compared to 12,900 for the same period
in 1996, a decrease of 2,053 barrels. For the six months ended June 30, 1997,
39,615 mcf of gas were sold compared to 46,721 for the same period in 1996, a
decrease of 7,106 mcf. The production volume decreases were due to the decline
characteristics of the Partnership's oil and gas properties. Because of these
characteristics, management expects a certain amount of decline in production to
continue in the future until the Partnership's economically recoverable reserves
are fully depleted.
7
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The average price received per barrel of oil increased slightly from $20.16 for
the six months ended June 30, 1996 to $20.43 for the same period ended June 30,
1997, while the average price received per mcf of gas increased from $2.30
during the six months ended June 30, 1996 to $2.63 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 six
months ended June 30, 1997.
Costs and Expenses:
Total costs and expenses decreased to $233,250 for the six months ended June 30,
1997 as compared to $287,384 for the same period in 1996, a decrease of $54,134,
or 19%. This decrease was due to declines in loss on sale of assets, depletion
and general and administrative expenses ("G&A"), offset by an increase in
production costs.
Production costs were $148,358 for the six months ended June 30, 1997 and
$147,773 for the same period in 1996 resulting in a $585 increase. The increase
was due to additional well repair and maintenance costs and workover cost
incurred in an effort to stimulate well production.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A
decreased, in aggregate, 11% from $11,799 for the six months ended June 30, 1996
to $10,560 for the same period in 1997.
Depletion was $74,332 for the six months ended June 30, 1997 compared to $99,108
for the same period in 1996. This represented a decrease in depletion of
$24,776, or 25%, primarily due to a reduction in oil production of 2,053 barrels
for the six months ended June 30, 1997 as compared to the same period in 1996.
A loss on sale of assets of $28,704 was recognized during the six months ended
June 30, 1996. This loss was the result of the sale of one gas well to Costilla
Energy, L.L.C.
Three months ended June 30, 1997 compared with three months ended
June 30, 1996
Revenues:
The Partnership's oil and gas revenues decreased 21% to $145,527 from $183,070
for the three months ended June 30, 1997 as compared to the three months ended
June 30, 1996. The decrease in revenues resulted from a 15% decline in barrels
of oil produced and sold, a 5% decline in mcf of gas produced and sold and a 13%
decrease in the average price received per barrel of oil. For the three months
ended June 30, 1997, 5,266 barrels of oil were sold compared to 6,224 for the
same period in 1996, a decrease of 958 barrels. For the three months ended June
30, 1997, 19,705 mcf of gas were sold compared to 20,828 for the same period in
1996, a decrease of 1,123 mcf. The decrease in production volumes was due to the
decline characteristics of the Partnership's oil and gas properties.
8
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The average price received per barrel of oil decreased $2.71 from $21.47 for the
three months ended June 30, 1996 to $18.76 for the same period in 1997, while
the average price received per mcf of gas was $2.37 during the three months
ended June 30, 1996 and 1997.
Costs and Expenses:
Total costs and expenses decreased to $117,004 for the three months ended June
30, 1997 as compared to $154,902 for the same period in 1996, a decrease of
$37,898, or 24%. This decrease was due to declines in loss on sale of assets,
depletion and G&A, offset by an increase in production costs.
Production costs were $74,403 for the three months ended June 30, 1997 and
$72,605 for the same period in 1996 resulting in a $1,798 increase. The increase
was due to additional well repair and maintenance costs and workover expenses
incurred in an effort to stimulate well production.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A
decreased, in aggregate, 26% from $6,260 for the three months ended June 30,
1996 to $4,630 for the same period in 1997.
Depletion was $37,971 for the three months ended June 30, 1997 compared to
$47,333 for the same period in 1996. This represented a decrease in depletion of
$9,362, or 20%, which is primarily due to a reduction in oil production of 958
barrels for the three months ended June 30, 1997 as compared to the same period
in 1996.
A loss on sale of assets of $28,704 was recognized during the three months ended
June 30, 1996. This loss was the result of the sale of one gas well to Costilla
Energy, L.L.C.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $44,699 during the six
months ended June 30, 1997 from the same period ended June 30, 1996. This
increase was due to an increase in oil and gas receipts and a decrease in
production costs paid.
Net Cash Provided by (Used in) Investing Activities
The Partnership's principal investing activities during the six months ended
June 30, 1997 and 1996 were for expenditures related to equipment replacement on
various oil and gas properties.
Proceeds of $6,828 were received from the sale of one gas well during the six
months ended June 30, 1996.
9
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Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1997 to cover
distributions to the partners of $225,679 of which $2,257 was distributed to
themanaging general partner and $223,422 to thelimited partners. For the same
period ended June 30, 1996, cash was sufficient for distributions to the
partners of $174,411 of which $1,913 was distributed to the managing general
partner and $172,498 to the limited partners.
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) Form 8-K - none
10
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PARKER & PARSLEY 90-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 90-A, L.P.
By: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: August 11, 1997 By: /s/ Rich Dealy
-------------------------------
Rich Dealy, Controller of PPUSA
11
<PAGE>
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<ARTICLE> 5
<CIK> 0000844614
<NAME> 90A.FDS
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 123,288
<SECURITIES> 0
<RECEIVABLES> 72,291
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 195,579
<PP&E> 5,062,699
<DEPRECIATION> 3,240,083
<TOTAL-ASSETS> 2,018,195
<CURRENT-LIABILITIES> 19,825
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,998,370
<TOTAL-LIABILITY-AND-EQUITY> 2,018,195
<SALES> 325,758
<TOTAL-REVENUES> 329,536
<CGS> 0
<TOTAL-COSTS> 233,250
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 96,286
<INCOME-TAX> 0
<INCOME-CONTINUING> 96,286
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 96,286
<EPS-PRIMARY> 14.00
<EPS-DILUTED> 0
</TABLE>
