UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2000
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)
1400 Williams Square West, 5205 N. O'Connor Blvd., Irving, Texas 75039
---------------------------------------------------------------- ---------
(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code : (972) 444-9001
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 / /
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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 September 30, 2000 and
December 31, 1999....................................... 3
Statements of Operations for the three and nine
months ended September 30, 2000 and 1999................. 4
Statement of Partners' Capital for the nine months
ended September 30, 2000................................. 5
Statements of Cash Flows for the nine months ended
September 30, 2000 and 1999.............................. 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
27.1 Financial Data 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
<TABLE>
BALANCE SHEETS
<CAPTION>
September 30, December 31,
2000 1999
------------ -----------
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash $ 124,574 $ 122,649
Accounts receivable - oil and gas sales 109,921 72,167
---------- ----------
Total current assets 234,495 194,816
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 5,082,953 5,076,362
Accumulated depletion (3,996,051) (3,937,645)
---------- ----------
Net oil and gas properties 1,086,902 1,138,717
---------- ----------
$ 1,321,397 $ 1,333,533
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 24,883 $ 15,254
Partners' capital:
Managing general partner 13,046 13,264
Limited partners (6,811 interests) 1,283,468 1,305,015
---------- ----------
1,296,514 1,318,279
---------- ----------
$ 1,321,397 $ 1,333,533
========== ==========
</TABLE>
The financial information included as of September 30, 2000 has been prepared by
the managing general partner 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)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
---------------------- ----------------------
2000 1999 2000 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues:
Oil and gas $ 221,255 $ 131,280 $ 583,512 $ 326,369
Interest 2,604 1,466 6,362 3,422
Gain on disposition of assets - - 9,419 -
-------- -------- -------- --------
223,859 132,746 599,293 329,791
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 75,837 58,308 235,807 191,052
General and administrative 7,896 5,872 19,634 13,136
Depletion 22,443 17,229 58,406 82,941
-------- -------- -------- --------
106,176 81,409 313,847 287,129
-------- -------- -------- --------
Net income $ 117,683 $ 51,337 $ 285,446 $ 42,662
======== ======== ======== ========
Allocation of net income:
Managing general partner $ 1,176 $ 514 $ 2,854 $ 427
======== ======== ======== ========
Limited partners $ 116,507 $ 50,823 $ 282,592 $ 42,235
======== ======== ======== ========
Net income per limited
partnership interest $ 17.11 $ 7.46 $ 41.49 $ 6.20
======== ======== ======== ========
</TABLE>
The financial information included herein has been prepared by
the managing general partner 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)
<TABLE>
<CAPTION>
Managing
general Limited
partner partners Total
---------- ---------- ----------
<S> <C> <C> <C>
Balance at January 1, 2000 $ 13,264 $1,305,015 $1,318,279
Distributions (3,072) (304,139) (307,211)
Net income 2,854 282,592 285,446
--------- --------- ---------
Balance at September 30, 2000 $ 13,046 $1,283,468 $1,296,514
========= ========= =========
</TABLE>
The financial information included herein has been prepared by
managing general partner without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
PARKER & PARSLEY 90-A, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine months ended
September 30,
------------------------
2000 1999
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 285,446 $ 42,662
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 58,406 82,941
Gain on disposition of assets (9,419) -
Changes in assets and liabilities:
Accounts receivable (37,754) (26,737)
Accounts payable 9,629 3,400
--------- ---------
Net cash provided by operating activities 306,308 102,266
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (6,591) (1,858)
Proceeds from asset dispositions 9,419 7,220
--------- ---------
Net cash provided by investing activities 2,828 5,362
--------- ---------
Cash flows used in financing activities:
Cash distributions to partners (307,211) (89,303)
--------- ---------
Net increase in cash 1,925 18,325
Cash at beginning of period 122,649 92,210
--------- ---------
Cash at end of period $ 124,574 $ 110,535
========= =========
</TABLE>
The financial information included herein has been prepared by
managing general partner without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements
6
<PAGE>
PARKER & PARSLEY 90-A, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(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 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 of the
Partnership as of September 30, 2000 and for the three and nine months ended
September 30, 2000 and 1999 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 reclassifications
may have been made to the September 30, 1999 financial statements to conform to
the September 30, 2000 financial statement presentations.
Certain information and footnote disclosures 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, 1999, as filed with the Securities and Exchange Commission, a copy
of which is available upon request by writing to Rich Dealy, Vice President and
Chief Accounting Officer, 5205 North O'Connor Boulevard, 1400 Williams Square
West, Irving, Texas 75039-3746.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (1)
Results of Operations
Nine months ended September 30, 2000 compared with nine months ended September
30, 1999
Revenues:
The Partnership's oil and gas revenues increased 79% to $583,512 for the nine
months ended September 30, 2000 as compared to $326,369 for the same period in
1999. The increase in revenues resulted from higher average prices received,
7
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offset by a decrease in production. For the nine months ended September 30,
2000, 13,714 barrels of oil, 7,938 barrels of natural gas liquids ("NGLs") and
30,270 mcf of gas were sold, or 26,697 barrel of oil equivalents ("BOEs"). For
the nine months ended September 30, 1999, 13,333 barrels of oil, 8,559 barrels
of NGLs and 31,642 mcf of gas were sold, or 27,166 BOEs.
The average price received per barrel of oil increased $13.33, or 88%, from
$15.10 for the nine months ended September 30, 1999 to $28.43 for the same
period in 2000. The average price received per barrel of NGLs increased $6.20,
or 74%, from $8.33 during the nine months ended September 30, 1999 to $14.53 for
the same period in 2000. The average price received per mcf of gas increased 52%
from $1.70 during the nine months ended September 30, 1999 to $2.59 for the same
period in 2000. 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 nine months ended September 30, 2000.
Gain on disposition of assets of $9,419 was recognized during the nine months
ended September 30, 2000 resulting from equipment credits received on one well.
Costs and Expenses:
Total costs and expenses increased to $313,847 for the nine months ended
September 30, 2000 as compared to $287,129 for the same period in 1999, an
increase of $26,718, or 9%. This increase was due to increases in production
costs and general and administrative expenses ("G&A"), offset by a decline in
depletion.
Production costs were $235,807 for the nine months ended September 30, 2000 and
$191,052 for the same period in 1999, resulting in a $44,755 increase, or 23%.
The increase was primarily due to additional well maintenance costs of $20,833
incurred to stimulate well production and higher production taxes of $20,616
associated with higher oil and gas prices.
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, 49% from $13,136 for the nine months ended September
30, 1999 to $19,634 for the same period in 2000 primarily due to a higher
allocation of the managing general partner's G&A being allocated (limited to 3%
of oil and gas revenues) as a result of increased oil and gas revenues.
Depletion was $58,406 for the nine months ended September 30, 2000 compared to
$82,941 for the same period in 1999, a decrease of $24,535, or 30%. This
decrease was the result of an increase in proved reserves due to higher
commodity prices as compared to the same period in 1999, offset by an increase
in oil production of 381 barrels for the nine months ended September 30, 2000
compared to the same period in 1999.
8
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Three months ended September 30, 2000 compared with three months ended September
30, 1999
Revenues:
The Partnership's oil and gas revenues increased 69% to $221,255 for the three
months ended September 30, 2000 as compared to $131,280 for the same period in
1999. The increase in revenues resulted from higher average prices received and
an increase in production. For the three months ended September 30, 2000, 4,749
barrels of oil, 2,600 barrels of NGLs and 10,373 mcf of gas were sold, or 9,078
BOEs. For the three months ended September 30, 1999, 4,066 barrels of oil, 3,047
barrels of NGLs and 10,250 mcf of gas were sold, or 8,821 BOEs.
The average price received per barrel of oil increased $11.00, or 57%, from
$19.25 for the three months ended September 30, 1999 to $30.25 for the same
period in 2000. The average price received per barrel of NGLs increased $5.98,
or 57%, from $10.53 during the three months ended September 30, 1999 to $16.51
for the same period in 2000. The average price received per mcf of gas increased
64% from $2.04 during the three months ended September 30, 1999 to $3.34 for the
same period in 2000.
Costs and Expenses:
Total costs and expenses increased to $106,176 for the three months ended
September 30, 2000 as compared to $81,409 for the same period in 1999, an
increase of $24,767, or 30%. This increase was due to increases in production
costs, depletion and G&A.
Production costs were $75,837 for the three months ended September 30, 2000 and
$58,308 for the same period in 1999 resulting in a $17,529 increase, or 30%. The
increase was primarily due to higher production taxes of $8,978 associated with
higher oil and gas prices and additional well maintenance costs of $6,968
incurred to stimulate well production.
During this period, G&A increased, in aggregate, 34% from $5,872 for the three
months ended September 30, 1999 to $7,896 for the same period in 2000 primarily
due to a higher allocation of the managing general partner's G&A being allocated
(limited to 3% of oil and gas revenues) as a result of increased oil and gas
revenues.
Depletion was $22,443 for the three months ended September 30, 2000 compared to
$17,229 for the same period in 1999, representing an increase of $5,214, or 30%.
This increase was attributable to an increase in oil production of 683 barrels
for the three months ended September 30, 2000 compared to the same period in
1999, offset by an increase in proved reserves as a result of higher commodity
prices as compared to the same period in 1999.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $204,042 during the nine
months ended September 30, 2000 from the same period ended September 30, 1999.
9
<PAGE>
This increase was due to an increase in oil and gas sales receipts of $249,066,
offset by increases in production costs paid of $40,338 and G&A expenses paid of
$4,686.
Net Cash Provided by Investing Activities
The Partnership's investing activities during the nine months ended September
30, 2000 and 1999 were for expenditures related to equipment upgrades on various
oil and gas properties.
Proceeds of $9,419 were recognized during the nine months ended September 30,
2000 from equipment credits on one well and proceeds of $7,220 for the same
period in 1999 were due to equipment credits on two wells.
Net Cash Used in Financing Activities
For the nine months ended September 30, 2000, cash distributions to the partners
were $307,211, of which $3,072 was distributed to the managing general partner
and $304,139 to the limited partners. For the same period ended September 30,
1999, cash distributions to the partners were $89,303, of which $893 was
distributed to the managing general partner and $88,410 to the limited partners.
---------------
(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
27.1 Financial Data Schedule
(b) Reports on 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: Pioneer Natural Resources USA, Inc.,
Managing General Partner
Dated: November 9, 2000 By: /s/ Rich Dealy
-----------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
11
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