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 June 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
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(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 June 30, 2000 and
December 31, 1999....................................... 3
Statements of Operations for the three and six
months ended June 30, 2000 and 1999...................... 4
Statement of Partners' Capital for the six months
ended June 30, 2000...................................... 5
Statements of Cash Flows for the six months ended
June 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 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
<TABLE>
BALANCE SHEETS
June 30, December 31,
2000 1999
----------- -----------
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash $ 120,631 $ 122,649
Accounts receivable - oil and gas sales 91,513 72,167
---------- ----------
Total current assets 212,144 194,816
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 5,080,552 5,076,362
Accumulated depletion (3,973,608) (3,937,645)
---------- ----------
Net oil and gas properties 1,106,944 1,138,717
---------- ----------
$ 1,319,088 $ 1,333,533
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 20,322 $ 15,254
Partners' capital:
Managing general partner 13,069 13,264
Limited partners (6,811 interests) 1,285,697 1,305,015
---------- ----------
1,298,766 1,318,279
---------- ----------
$ 1,319,088 $ 1,333,533
========== ==========
</TABLE>
The financial information included as of June 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>
Three months ended Six months ended
June 30, June 30,
--------------------- ---------------------
2000 1999 2000 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues:
Oil and gas $ 178,954 $ 111,127 $ 362,257 $ 195,089
Interest 2,175 1,063 3,758 1,956
Gain on disposition of assets 9,419 - 9,419 -
-------- -------- -------- --------
190,548 112,190 375,434 197,045
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 89,154 71,921 159,970 132,744
General and administrative 6,057 3,806 11,738 7,264
Depletion 15,331 21,066 35,963 65,712
-------- -------- -------- --------
110,542 96,793 207,671 205,720
-------- -------- -------- --------
Net income (loss) $ 80,006 $ 15,397 $ 167,763 $ (8,675)
======== ======== ======== ========
Allocation of net income (loss):
Managing general partner $ 800 $ 154 $ 1,678 $ (87)
======== ======== ======== ========
Limited partners $ 79,206 $ 15,243 $ 166,085 $ (8,588)
======== ======== ======== ========
Net income (loss) per limited
partnership interest $ 11.62 $ 2.24 $ 24.38 $ (1.26)
======== ======== ======== ========
</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>
Managing
general Limited
partner partners Total
---------- ---------- ----------
<S> <C> <C> <C>
Balance at January 1, 2000 $ 13,264 $1,305,015 $1,318,279
Distributions (1,873) (185,403) (187,276)
Net income 1,678 166,085 167,763
--------- --------- ---------
Balance at June 30, 2000 $ 13,069 $1,285,697 $1,298,766
========= ========= =========
</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.
5
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PARKER & PARSLEY 90-A, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
Six months ended
June 30,
-----------------------
2000 1999
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 167,763 $ (8,675)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depletion 35,963 65,712
Gain on disposition of assets (9,419) -
Changes in assets and liabilities:
Accounts receivable (19,346) (17,332)
Accounts payable 5,068 4,625
-------- --------
Net cash provided by operating activities 180,029 44,330
-------- --------
Cash flows from investing activities:
Additions to oil and gas properties (4,190) (1,655)
Proceeds from asset dispositions 9,419 7,220
-------- --------
Net cash provided by investing activities 5,229 5,565
-------- --------
Cash flows used in financing activities:
Cash distributions to partners (187,276) (33,441)
-------- --------
Net increase (decrease) in cash (2,018) 16,454
Cash at beginning of period 122,649 92,210
-------- --------
Cash at end of period $ 120,631 $ 108,664
======== ========
</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.
6
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PARKER & PARSLEY 90-A, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 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 June 30, 2000 and for the three and six months ended June 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 June 30, 1999 financial statements to conform to the June 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
Six months ended June 30, 2000 compared with six months ended
June 30, 1999
Revenues:
The Partnership's oil and gas revenues increased 86% to $362,257 for the six
months ended June 30, 2000 as compared to $195,089 for the same period in 1999.
The increase in revenues resulted from higher average prices received, offset by
a decrease in production. For the six months ended June 30, 2000, 8,965 barrels
of oil, 5,338 barrels of natural gas liquids ("NGLs") and 19,897 mcf of gas
7
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were sold, or 17,619 barrel of oil equivalents ("BOEs"). For the six months
ended June 30, 1999, 9,267 barrels of oil, 5,512 barrels of NGLs and 21,392 mcf
of gas were sold, or 18,344 BOEs.
The average price received per barrel of oil increased $14.19, or 107%, from
$13.27 for the six months ended June 30, 1999 to $27.46 for the same period
ended June 30, 2000. The average price received per barrel of NGLs increased
$6.46, or 91%, from $7.10 during the six months ended June 30, 1999 to $13.56
for the same period in 2000. The average price received per mcf of gas increased
43% from $1.54 during the six months ended June 30, 1999 to $2.20 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 six months ended June 30, 2000.
The volatility of commodity prices has had, and continues to have, a significant
impact on the Partnership's revenues and operating cash flow and could result in
additional decreases to the carrying value of the Partnership's oil and gas
properties.
Gain on disposition of assets of $9,419 was recognized during the six months
ended June 30, 2000 resulting from equipment credits received on one fully
depleted well.
Costs and Expenses:
Total costs and expenses increased to $207,671 for the six months ended June 30,
2000 as compared to $205,720 for the same period in 1999, an increase of $1,951,
or 1%. 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 $159,970 for the six months ended June 30, 2000 and
$132,744 for the same period in 1999 resulting in a $27,226 increase, or 21%.
The increase was due to additional well maintenance costs incurred to stimulate
well production and higher production taxes due to 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, 62%, from $7,264 for the six months ended June 30, 1999
to $11,738 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 $35,963 for the six months ended June 30, 2000 compared to $65,712
for the same period in 1999, a decrease of $29,749, or 45%. This decrease was
the result of an increase in proved reserves during the period ended June 30,
2000 due to higher commodity prices and a decline in oil production of 302
barrels for the six months ended June 30, 2000 compared to the same period in
1999.
8
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Three months ended June 30, 2000 compared with three months ended June 30, 1999
Revenues:
The Partnership's oil and gas revenues increased 61% to $178,954 for the three
months ended June 30, 2000 as compared to $111,127 for the same period in 1999.
The increase in revenues resulted from higher average prices received, offset by
a decrease in production. For the three months ended June 30, 2000, 4,198
barrels of oil, 2,815 barrels of NGLs and 10,000 mcf of gas were sold, or 8,680
BOEs. For the three months ended June 30, 1999, 4,486 barrels of oil, 3,061
barrels of NGLs and 10,259 mcf of gas were sold, or 9,257 BOEs.
The average price received per barrel of oil increased $12.55, or 84%, from
$14.99 for the three months ended June 30, 1999 to $27.54 for the same period in
2000. The average price received per barrel of NGLs increased $4.74, or 55%,
from $8.62 during the three months ended June 30, 1999 to $13.36 for the same
period in 2000. The average price received per mcf of gas increased 50% from
$1.71 during the three months ended June 30, 1999 to $2.57 for the same period
in 2000.
Gain on disposition of assets of $9,419 was recognized during the three months
ended June 30, 2000 from equipment credits received on one fully depleted well.
Costs and Expenses:
Total costs and expenses increased to $110,542 for the three months ended June
30, 2000 as compared to $96,793 for the same period in 1999, an increase of
$13,749, or 14%. This increase was due to increases in production costs and G&A,
offset by a decline in depletion.
Production costs were $89,154 for the three months ended June 30, 2000 and
$71,921 for the same period in 1999 resulting in a $17,233 increase, or 24%. The
increase was due to additional well maintenance costs incurred to stimulate well
production and higher production taxes due to higher oil and gas prices.
During this period, G&A increased, in aggregate, 59%, from $3,806 for the three
months ended June 30, 1999 to $6,057 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 $15,331 for the three months ended June 30, 2000 compared to
$21,066 for the same period in 1999, a decrease of $5,735, or 27%. This decrease
was primarily attributable to an increase in proved reserves during the period
ended June 30, 2000 as a result of higher commodity prices and a decrease in oil
production of 288 barrels for the three months ended June 30, 2000 as compared
to the same period in 1999.
9
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Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $135,699 during the six
months ended June 30, 2000 from the same period ended June 30, 1999. This
increase was due to an increase in oil and gas sales receipts of $166,956,
offset by increases in operating costs paid of $27,891 and G&A expenses paid of
$3,366.
Net Cash Provided by Investing Activities
The Partnership's principal investing activities during the six months ended
June 30, 2000 and 1999 were for expenditures related to oil and gas equipment
upgrades on various oil and gas properties.
Proceeds of $9,419 recognized during the six months ended June 30, 2000 were
from equipment credits on one fully depleted well and $7,220 for the same period
in 1999 were due to equipment credits on active properties.
Net Cash Used in Financing Activities
For the six months ended June 30, 2000, cash distributions to the partners were
$187,276, of which $1,873 was distributed to the managing general partner and
$185,403 to the limited partners. For the same period ended June 30, 1999, cash
distributions to the partners were $33,441, of which $334 was distributed to the
managing general partner and $33,107 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) 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: August 10, 2000 By: /s/ Rich Dealy
---------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
11
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