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. 33-26097-05
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 10 pages.
-There are no exhibits-
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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 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 90-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 $134,013 at March 31
and $102,316 at December 31 $ 134,244 $ 127,525
Accounts receivable - oil and gas sales 82,413 131,628
---------- ----------
Total current assets 216,657 259,153
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 5,054,658 5,053,096
Accumulated depletion (3,202,112) (3,165,751)
---------- ----------
Net oil and gas properties 1,852,546 1,887,345
---------- ----------
$ 2,069,203 $ 2,146,498
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 16,000 $ 18,703
Accounts payable - other - 32
---------- ----------
16,000 18,735
---------- ----------
Partners' capital:
Managing general partner 20,613 21,358
Limited partners (6,811 interests) 2,032,590 2,106,405
---------- ----------
2,053,203 2,127,763
---------- ----------
$ 2,069,203 $ 2,146,498
========== ==========
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 90-A, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
-------------------------
1997 1996
---------- ----------
Revenues:
Oil and gas $ 180,231 $ 184,646
Interest 1,845 1,417
--------- ---------
182,076 186,063
--------- ---------
Costs and expenses:
Oil and gas production 73,955 75,168
General and administrative 5,930 5,539
Depletion 36,361 51,775
--------- ---------
116,246 132,482
--------- ---------
Net income $ 65,830 $ 53,581
========= =========
Allocation of net income:
Managing general partner $ 658 $ 536
========= =========
Limited partners $ 65,172 $ 53,045
========= =========
Net income per limited partnership interest $ 9.57 $ 7.79
========= =========
Distributions per limited partnership interest $ 20.41 $ 11.50
========= =========
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 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 (1,403) (138,987) (140,390)
Net income 658 65,172 65,830
--------- ---------- ----------
Balance at March 31, 1997 $ 20,613 $ 2,032,590 $ 2,053,203
========= ========== ==========
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)
Three months ended
March 31,
------------------------
1997 1996
---------- ----------
Cash flows from operating activities:
Net income $ 65,830 $ 53,581
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 36,361 51,775
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 49,215 (14,547)
Decrease in accounts payable (2,735) (18,487)
--------- ---------
Net cash provided by operating activities 148,671 72,322
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (1,562) (264)
Cash flows from financing activities:
Cash distributions to partners (140,390) (79,211)
--------- ---------
Net increase (decrease) in cash and cash equivalents 6,719 (7,153)
Cash and cash equivalents at beginning of period 127,525 118,751
--------- ---------
Cash and cash equivalents at end of period $ 134,244 $ 111,598
========= =========
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
March 31, 1997
(Unaudited)
Note 1. Organization and nature of operations
Parker & Parsley 90-A, L.P. (the "Partnership") is a limited partnership
organized in 1990 under the laws of the State of Delaware.
The Partnership engages primarily in oil and gas development and production in
the Spraberry Trend area of West 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 decreased to $180,231 from $184,646 for
the three months ended March 31, 1997 and 1996, respectively, a decrease of
$4,415. The decrease in revenues resulted from a 16% decrease in barrels of oil
produced and sold and a 23% decrease in mcf of gas produced and sold, offset by
a 16% increase in the average price received per barrel of oil and a 28%
increase in the average price received per mcf of gas. For the three months
ended March 31, 1997, 5,581 barrels of oil were sold compared to 6,676 for the
same period in 1996, a decrease of 1,095 barrels. For the three months ended
March 31, 1997, 19,910 mcf of gas were sold compared to 25,893 for the same
period in 1996, a decrease of 5,983 mcf. Of the decrease, 1,673 mcf, or 6%, was
attributable to the sale of one gas well during 1996. The remainder of the
7
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decrease, 4,310 mcf, or 17%, was 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.
The average price received per barrel of oil increased $3.07 from $18.94 for the
three months ended March 31, 1996 to $22.01 for the same period in 1997, while
the average price received per mcf of gas increased from $2.25 during the three
months ended March 31, 1996 to $2.88 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 decreased to $116,246 for the three months ended March
31, 1997 as compared to $132,482 for the same period in 1996, a decrease of
$16,236, or 12%. This decrease was due to declines in production costs and
depletion, offset by an increase in general and administrative expenses ("G&A").
Production costs were $73,955 for the three months ended March 31, 1997 and
$75,168 for the same period in 1996, resulting in a $1,213 decrease. This
decrease was due to declines in well repair and maintenance costs and ad valorem
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, 7% from $5,539 for the three months ended March 31,
1996 to $5,930 for the same period in 1997.
Depletion was $36,361 for the three months ended March 31, 1997 compared to
$51,775 for the same period in 1996, a decrease of $15,414, or 30%. This
decrease was primarily attributable to the following factors: (i) a decline in
oil production of 1,095 barrels for the three months ended March 31, 1997 as
compared to the same period in 1996, (ii) an upward revision in oil and gas
reserves, and (iii) the sale of one gas well during the three months ended March
31, 1996.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $76,349 during 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 decline in expenditures for
production costs.
8
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Net Cash Used in Investing Activities
The Partnership's principal investing activities during the three months ended
March 31, 1997 and 1996 were for additions to oil and gas equipment on various
oil and gas 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 $140,390 of which $138,987 was distributed to
the limited partners and $1,403 to the managing general partner. For the same
period ended March 31, 1996, cash was sufficient for distributions to the
partners of $79,211 of which $78,333 was distributed to the limited partners and
$878 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) Form 8-K - none
9
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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: May 12, 1997 By: /s/ Steven L. Beal
-------------------------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
10
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 134,244
<SECURITIES> 0
<RECEIVABLES> 82,413
<ALLOWANCES> 0
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<DEPRECIATION> 3,202,112
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0
0
<COMMON> 0
<OTHER-SE> 2,053,203
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<SALES> 180,231
<TOTAL-REVENUES> 182,076
<CGS> 0
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<INCOME-PRETAX> 65,830
<INCOME-TAX> 0
<INCOME-CONTINUING> 65,830
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<EXTRAORDINARY> 0
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