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 September 30, 1996
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. 33-26097-09
PARKER & PARSLEY 90-C, L.P.
(Exact name of Registrant as specified in its charter)
Delaware 75-2347262
(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 __ pages.
-There are no exhibits-
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PARKER & PARSLEY 90-C, L.P.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of September 30, 1996 and
December 31, 1995 ................................ 3
Statements of Operations for the three and nine
months ended September 30, 1996 and 1995............. 4
Statement of Partners' Capital for the nine months
ended September 30, 1996............................. 5
Statements of Cash Flows for the nine months ended
September 30, 1996 and 1995.......................... 6
Notes to Financial Statements.......................... 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.................. 8
Part II. Other Information...................................... 11
Signatures......................................... 12
2
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PARKER & PARSLEY 90-C, L.P.
(A Delaware Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
September 30, December 31,
1996 1995
------------ -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $146,767 at September 30
and $125,340 at December 31 $ 146,976 $ 125,604
Accounts receivable - oil and gas sales 127,972 111,638
---------- ----------
Total current assets 274,948 237,242
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,235,591 9,371,945
Accumulated depletion (6,852,756) (6,837,658)
---------- ----------
Net oil and gas properties 2,382,835 2,534,287
---------- ----------
$ 2,657,783 $ 2,771,529
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 49,701 $ 78,991
Partners' capital:
Limited partners (12,107 interests) 2,582,052 2,665,663
Managing general partner 26,030 26,875
---------- ----------
2,608,082 2,692,538
---------- ----------
$ 2,657,783 $ 2,771,529
========== ==========
The financial information included as of September 30, 1996 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-C, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
--------------------- ---------------------
1996 1995 1996 1995
--------- --------- --------- ---------
Revenues:
Oil and gas $ 304,247 $ 252,434 $ 940,352 $ 878,373
Interest 2,257 2,131 5,683 5,712
Gain on abandoned property - - - 12,834
-------- -------- -------- --------
306,504 254,565 946,035 896,919
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 125,985 130,697 398,016 420,274
General and administrative 9,692 8,846 29,828 28,359
Depletion 37,815 52,817 139,728 167,366
Abandoned property - - - 6,223
Amortization of organization - 1,276 - 3,829
Loss on sale of assets 12 - 10,815 -
-------- -------- -------- --------
173,504 193,636 578,387 626,051
-------- -------- -------- --------
Net income $ 133,000 $ 60,929 $ 367,648 $ 270,868
======== ======== ======== ========
Allocation of net income:
Managing general partner $ 1,330 $ 622 $ 3,676 $ 2,747
======== ======== ======== ========
Limited partners $ 131,670 $ 60,307 $ 363,972 $ 268,121
======== ======== ======== ========
Net income per limited
partnership interest $ 10.87 $ 4.99 $ 30.06 $ 22.15
======== ======== ======== ========
Distributions per limited
partnership interest $ 12.97 $ 10.39 $ 36.97 $ 35.84
======== ======== ======== ========
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-C, L.P.
(A Delaware Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
--------- ----------- -----------
Balance at January 1, 1996 $ 26,875 $ 2,665,663 $ 2,692,538
Distributions (4,521) (447,583) (452,104)
Net income 3,676 363,972 367,648
-------- ---------- ----------
Balance at September 30, 1996 $ 26,030 $ 2,582,052 $ 2,608,082
======== ========== ==========
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
<PAGE>
PARKER & PARSLEY 90-C, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended
September 30,
------------------------
1996 1995
--------- ---------
Cash flows from operating activities:
Net income $ 367,648 $ 270,868
Adjustments to reconcile net income to
net cash provided by operating activities:
Depletion and amortization 139,728 171,195
Gain on abandoned property - (12,834)
Loss on sale of assets 10,815 -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (16,334) 18,070
Increase (decrease) in accounts payable (29,290) 15,867
-------- --------
Net cash provided by operating activities 472,567 463,166
-------- --------
Cash flows from investing activities:
Additions to oil and gas properties (6,231) (8,619)
Proceeds from equipment salvage on abandoned
property - 5,556
Proceeds from sale of assets 7,140 -
-------- --------
Net cash provided by (used in) investing
activities 909 (3,063)
-------- --------
Cash flows from financing activities:
Cash distributions to partners (452,104) (438,324)
-------- --------
Net increase in cash and cash equivalents 21,372 21,779
Cash and cash equivalents at beginning of period 125,604 70,752
-------- --------
Cash and cash equivalents at end of period $ 146,976 $ 92,531
======== ========
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
<PAGE>
PARKER & PARSLEY 90-C, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 30, 1996
(Unaudited)
Note 1.
Parker & Parsley 90-C, L.P. (the "Registrant") is a limited partnership
organized in 1990 under the laws of the State of Delaware.
The Registrant engages primarily in oil and gas development and production in
Texas and is not involved in any industry segment other than oil and gas.
Note 2.
In the opinion of management, the Registrant's unaudited financial statements as
of September 30, 1996 and for the three and nine months ended September 30, 1996
and 1995 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 Registrant's Report on Form 10-K for the year ended
December 31, 1995, 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.
Note 3.
A loss of $10,815 on sale of assets to Costilla Energy, L.L.C. was recognized
during the nine months ended September 30, 1996. This loss was the result of the
write-off of remaining capitalized well costs for one gas well of $17,955 less
proceeds received of $7,140.
7
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (1)
Results of Operations
Nine months ended September 30, 1996 compared with nine months ended September
30, 1995
Revenues:
The Registrant's oil and gas revenues increased to $940,352 from $878,373 for
the nine months ended September 30, 1996 and 1995, respectively, an increase of
7%. The increase in revenues resulted from a 21% increase in the average price
received per barrel of oil and a 29% increase in the average price received per
mcf of gas, offset by an 11% decline in barrels of oil produced and sold and a
19% decline in mcf of gas produced and sold. For the nine months ended September
30, 1996, 36,065 barrels of oil were sold compared to 40,684 for the same period
in 1995, a decrease of 4,619 barrels. For the nine months ended September 30,
1996, 79,546 mcf of gas were sold compared to 98,515 for the same period in
1995, a decrease of 18,969 mcf. Of the decrease, 4%, or 4,457 mcf, was
attributable to the sale of one gas well during the nine months ended September
30, 1996, with the remaining 14,512 mcf, or 15%, due to production declines. Due
to the decline characteristics of the Registrant's oil and gas properties,
management expects a certain amount of decline in production to continue in the
future until the Registrant's economically recoverable reserves are fully
depleted.
The average price received per barrel of oil increased $3.70 from $17.27 for the
nine months ended September 30, 1995 to $20.97 for the same period in 1996 while
the average price received per mcf of gas increased from $1.79 during the nine
months ended September 30, 1995 to $2.31 in 1996. 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
Registrant 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, 1996.
A gain on abandoned property of $12,834 was recognized during the nine months
ended September 30, 1995. This gain was the result of proceeds from equipment
salvage on one fully depleted abandoned property. Expenses incurred during the
nine months ended September 30, 1995 to plug and abandon one well totaled
$6,223. There was no abandonment activity for the same period in 1996.
Costs and Expenses:
Total costs and expenses decreased to $578,387 for the nine months ended
September 30, 1996 as compared to $626,051 for the same period in 1995, a
decrease of $47,664, or 8%. This decrease was due to declines in production
costs, depletion, abandoned property costs and amortization of organization
costs, offset by increases in general and administrative expenses ("G&A") and
loss on sale of assets.
8
<PAGE>
Production costs were $398,016 for the nine months ended September 30, 1996 and
$420,274 for the same period in 1995, resulting in a $22,258 decrease, or 5%.
The decrease was the result of less well repair and maintenance costs, lower ad
valorem taxes and a decline in workover costs.
G&A's components are independent accounting and engineering fees, computer
services, postage and managing general partner personnel costs. During this
period, G&A increased, in aggregate, 5% from $28,359 for the nine months ended
September 30, 1995 to $29,828 for the same period in 1996.
Depletion was $139,728 for the nine months ended September 30, 1996 compared to
$167,366 for the same period in 1995, representing a decrease of $27,638, or
17%. This decrease was primarily attributable to the following factors: (i) a
reduction in the Registrant's net depletable basis from charges taken in
accordance with Statement of Financial Accounting Standards No. 121, "Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
Of" ("FAS 121"), (ii) a reduction in oil production of 4,619 barrels for the
nine months ended September 30, 1996 as compared to the same period in 1995, and
(iii) an increase in oil and gas reserves during the third quarter of 1996 as a
result of higher commodity prices.
A loss on sale of assets of $10,815 was recognized during the nine months ended
September 30, 1996. This loss resulted from the write-off of remaining
capitalized well costs for one gas well of $17,955 less proceeds received of
$7,140.
Three months ended September 30, 1996 compared with three months ended September
30, 1995
Revenues:
The Registrant's oil and gas revenues increased to $304,247 from $252,434 for
the three months ended September 30, 1996 and 1995, respectively, an increase of
21%. The increase in revenues resulted from an increase in mcf of gas produced
and sold, a 31% increase in the average price received per barrel of oil and a
21% increase in the average price received per mcf of gas, offset by a 9%
decline in barrels of oil produced and sold. For the three months ended
September 30, 1996, 11,648 barrels of oil were sold compared to 12,744 for the
same period in 1995, a decrease of 1,096 barrels. For the three months ended
September 30, 1996, 23,805 mcf of gas were sold compared to 23,634 for the same
period in 1995, an increase of 171 mcf. The increase was the net result of an
increase of 1,606 mcf of gas produced and sold, offset by a decrease of 1,435
mcf attributable to the sale of one gas well during the three months ended
September 30, 1996.
The average price received per barrel of oil increased $5.19 from $16.53 for the
three months ended September 30, 1995 to $21.72 for the same period in 1996
while the average price received per mcf of gas increased from $1.77 during the
three months ended September 30, 1995 to $2.15 in 1996.
9
<PAGE>
Costs and Expenses:
Total costs and expenses decreased to $173,504 for the three months ended
September 30, 1996 as compared to $193,636 for the same period in 1995, a
decrease of $20,132, or 10%. This decrease was due to declines in production
costs, depletion and amortization of organization costs, offset by an increase
in G&A.
Production costs were $125,985 for the three months ended September 30, 1996 and
$130,697 for the same period in 1995 resulting in a $4,712 decrease, or 4%. The
decrease was the result of less well repair and maintenance costs.
G&A's components are independent accounting and engineering fees, computer
services, postage and managing general partner personnel costs. During this
period, G&A increased, in aggregate, 10% from $8,846 for the three months ended
September 30, 1995 to $9,692 for the same period in 1996.
Depletion was $37,815 for the three months ended September 30, 1996 compared to
$52,817 for the same period in 1995, representing a decrease of $15,002, or 28%,
primarily attributable to the following factors: (i) a reduction in the
Registrant's net depletable basis from charges taken in accordance with FAS 121,
(ii) a reduction in oil production of 1,096 barrels for the three months ended
September 30, 1996 as compared to the same period in 1995, and (iii) an increase
in oil and gas reserves during the third quarter of 1996 as a result of higher
commodity prices.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $9,401 during the nine
months ended September 30, 1996 from the same period ended September 30, 1995.
This increase was due to an increase in oil and gas sales, offset by an increase
in production costs paid.
Net Cash Provided by (Used in) Investing Activities
The Registrant's investing activities during the nine months ended September 30,
1996 and 1995 included expenditures related to equipment replacement on various
oil and gas properties.
Proceeds of $7,140 from the sale of one gas well were received during the nine
months ended September 30, 1996. Proceeds of $5,556 were received from the
salvage of equipment on one well abandoned during the nine months ended
September 30, 1995.
Net Cash Used in Financing Activities
Cash was sufficient for the nine months ended September 30, 1996 to cover
distributions to the partners of $452,104 of which $447,583 was distributed to
the limited partners and $4,521 to the managing general partner. For the same
10
<PAGE>
period ended September 30, 1995, cash was sufficient for distributions to the
partners of $438,324 of which $433,942 was distributed to the limited partners
and $4,382 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
None.
11
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PARKER & PARSLEY 90-C, 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-C, L.P.
By: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: November 13, 1996 By: /s/ Steven L. Beal
----------------------------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
12
<PAGE>
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<NAME> 90C.TXT
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 146,976
<SECURITIES> 0
<RECEIVABLES> 127,972
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 274,948
<PP&E> 9,235,591
<DEPRECIATION> 6,852,756
<TOTAL-ASSETS> 2,657,783
<CURRENT-LIABILITIES> 49,701
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,608,082
<TOTAL-LIABILITY-AND-EQUITY> 2,657,783
<SALES> 940,352
<TOTAL-REVENUES> 946,035
<CGS> 0
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<INCOME-TAX> 0
<INCOME-CONTINUING> 367,648
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