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. 33-26097-09
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 11 pages.
Exhibit index on page 10.
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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 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 Data Schedule
Signatures................................................ 11
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
June 30, December 31,
1997 1996
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $153,008 at June 30
and $122,705 at December 31 $ 153,258 $ 122,913
Accounts receivable - oil and gas sales 102,889 199,808
---------- ----------
Total current assets 256,147 322,721
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,243,399 9,235,703
Accumulated depletion (6,978,470) (6,894,283)
---------- ----------
Net oil and gas properties 2,264,929 2,341,420
---------- ----------
$ 2,521,076 $ 2,664,141
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 36,156 $ 29,486
Partners' capital:
Managing general partner 24,799 26,296
Limited partners (12,107 interests) 2,460,121 2,608,359
---------- ----------
2,484,920 2,634,655
---------- ----------
$ 2,521,076 $ 2,664,141
========== ==========
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-C, 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 $ 251,987 $ 329,183 $ 554,272 $ 636,105
Interest 2,447 1,906 4,617 3,426
Salvage income from equipment
disposals 1,275 - 1,275 -
-------- -------- -------- --------
255,709 331,089 560,164 639,531
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 125,372 137,735 266,946 272,031
General and administrative 7,826 10,928 17,714 20,136
Depletion 43,014 47,753 84,187 101,913
Loss on sale of assets - 10,803 - 10,803
-------- -------- -------- --------
176,212 207,219 368,847 404,883
-------- -------- -------- --------
Net income $ 79,497 $ 123,870 $ 191,317 $ 234,648
======== ======== ======== ========
Allocation of net income:
Managing general partner $ 795 $ 1,238 $ 1,913 $ 2,346
======== ======== ======== ========
Limited partners $ 78,702 $ 122,632 $ 189,404 $ 232,302
======== ======== ======== ========
Net income per limited
partnership interest $ 6.50 $ 10.13 $ 15.64 $ 19.19
======== ======== ======== ========
Distributions per limited
partnership interest $ 12.04 $ 13.51 $ 27.89 $ 24.00
======== ======== ======== ========
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, 1997 $ 26,296 $2,608,359 $2,634,655
Distributions (3,410) (337,642) (341,052)
Net income 1,913 189,404 191,317
-------- --------- ---------
Balance at June 30, 1997 $ 24,799 $2,460,121 $2,484,920
======== ========= =========
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)
Six months ended
June 30,
------------------------
1997 1996
---------- ----------
Cash flows from operating activities:
Net income $ 191,317 $ 234,648
Adjustments to reconcile net income to
net cash provided by operating activities:
Depletion 84,187 101,913
Salvage income from equipment disposals (1,275) -
Loss on sale of assets - 10,803
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 96,919 (8,763)
Increase (decrease) in accounts payable 6,670 (34,323)
--------- ---------
Net cash provided by operating
activities 377,818 304,278
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (7,696) (2,325)
Proceeds from salvage income on equipment
disposals 1,275 -
Proceeds from sale of assets - 7,152
--------- ---------
Net cash provided by (used in)
investing activities (6,421) 4,827
--------- ---------
Cash flows from financing activities:
Cash distributions to partners (341,052) (293,515)
--------- ---------
Net increase in cash and cash equivalents 30,345 15,590
Cash and cash equivalents at beginning of period 122,913 125,604
--------- ---------
Cash and cash equivalents at end of period $ 153,258 $ 141,194
========= =========
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
June 30, 1997
(Unaudited)
Note 1. Basis of presentation
In the opinion of management, the unaudited financial statements of Parker &
Parsley 90-C, 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 13% to $554,272 from $636,105
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 14% decline in barrels of oil
produced and sold, a 14% decline in mcf of gas produced and sold and a lower
average price received per barrel of oil, offset by a higher average price
received per mcf of gas. For the six months ended June 30, 1997, 20,925 barrels
of oil were sold compared to 24,417 for the same period in 1996, a decrease of
3,492 barrels. For the six months ended June 30, 1997, 47,909 mcf of gas were
sold compared to 55,741 for the same period in 1996, a decrease of 7,832 mcf.
Due to the decline characteristics of the Partnership's oil and gas properties,
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
<PAGE>
The average price received per barrel of oil decreased slightly from $20.61 for
the six months ended June 30, 1996 to $20.46 for the same period in 1997, while
the average price received per mcf of gas increased 11% from $2.38 during the
six months ended June 30, 1996 to $2.63 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.
Salvage income of $1,275, received during the six months ended June 30, 1997,
was attributable to credits received from the disposal of oil and gas equipment
on one fully depleted well.
Costs and Expenses:
Total costs and expenses decreased to $368,847 for the six months ended June 30,
1997 as compared to $404,883 for the same period in 1996, a decrease of $36,036,
or 9%. This decrease was due to declines in depletion, loss on sale of assets,
production costs and general and administrative expenses ("G&A").
Production costs were $266,946 for the six months ended June 30, 1997 and
$272,031 for the same period in 1996, resulting in a $5,085 decrease. The
decrease was the result of lower production taxes 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
decreased, in aggregate, 12% from $20,136 for the six months ended June 30, 1996
to $17,714 for the same period in 1997.
Depletion was $84,187 for the six months ended June 30, 1997 compared to
$101,913 for the same period in 1996. This represented a decrease in depletion
of $17,726, or 17%, primarily attributable to a decline in oil production of
3,492 barrels for the six months ended June 30, 1997, compared to the same
period in 1996.
A loss on sale of assets of $10,803 was recognized during the six months ended
June 30, 1996 from 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 23% to $251,987 from $329,183
for the three months ended June 30, 1997 as compared to the three months ended
June 30, 1996. The decrease in revenues resulted from lower average prices
received per barrel of oil and mcf of gas, a 12% decrease in barrels of oil
produced and sold and a 10% decrease in mcf of gas produced and sold. For the
8
<PAGE>
three months ended June 30, 1997, 10,321 barrels of oil were sold compared to
11,705 for the same period in 1996, a decrease of 1,384 barrels. For the three
months ended June 30, 1997, 24,433 mcf of gas were sold compared to 27,130 for
the same period in 1996, a decrease of 2,697 mcf.
The average price received per barrel of oil decreased $3.37, or 15%, from
$22.26 for the three months ended June 30, 1996 to $18.89 for the same period in
1997, while the average price received per mcf of gas decreased 8% from $2.53
during the three months ended June 30, 1996 to $2.33 in 1997.
Salvage income of $1,275, received during the three months ended June 30, 1997,
was attributable to credits received from the disposal of oil and gas equipment
on one fully depleted well.
Costs and Expenses:
Total costs and expenses decreased to $176,212 for the three months ended June
30, 1997 as compared to $207,219 for the same period in 1996, a decrease of
$31,007, or 15%. This decrease was due to declines in production costs, loss on
sale of assets, depletion and G&A.
Production costs were $125,372 for the three months ended June 30, 1997 and
$137,735 for the same period in 1996, resulting in a $12,363 decrease, or 9%.
The decrease was primarily attributable to declines in well repair and
maintenance costs and production taxes.
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, 28% from $10,928 for the three months ended June 30,
1996 to $7,826 for the same period in 1997.
Depletion was $43,014 for the three months ended June 30, 1997 compared to
$47,753 for the same period in 1996. This represented a decrease in depletion of
$4,739, or 10%, primarily attributable to a decline in oil production of 1,384
barrels for the three months ended June 30, 1997, compared to the same period in
1996.
A loss on sale of assets of $10,803 was recognized during the three months ended
June 30, 1996 from 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 $73,540 during the six
months ended June 30, 1997 from the same period ended June 30, 1996. This
increase was primarily due to an increase in oil and gas sales receipts and a
decline in expenditures paid for production costs.
9
<PAGE>
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 $1,275 were received during the six months ended June 30, 1997 from
the salvage of equipment on one fully depleted well.
Proceeds of $7,152 from the sale of one gas well were received during the six
months ended June 30, 1996.
Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1997 to cover
distributions to the partners of $341,052 of which $3,410 was distributed to the
managing general partner and $337,642 to the limited partners. For the same
period ended June 30, 1996, cash was sufficient for distributions to the
partners of $293,515 of which $2,935 was distributed to the managing general
partner and $290,580 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
<PAGE>
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: August 8, 1997 By: /s/ Rich Dealy
---------------------------------
Rich Dealy, Controller of PPUSA
11
<PAGE>
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<ARTICLE> 5
<CIK> 0000844621
<NAME> 90C.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 153,258
<SECURITIES> 0
<RECEIVABLES> 102,889
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 256,147
<PP&E> 9,243,399
<DEPRECIATION> 6,978,470
<TOTAL-ASSETS> 2,521,076
<CURRENT-LIABILITIES> 36,156
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,484,920
<TOTAL-LIABILITY-AND-EQUITY> 2,521,076
<SALES> 554,272
<TOTAL-REVENUES> 560,164
<CGS> 0
<TOTAL-COSTS> 368,847
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 191,317
<INCOME-TAX> 0
<INCOME-CONTINUING> 191,317
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 191,317
<EPS-PRIMARY> 15.64
<EPS-DILUTED> 0
</TABLE>
