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. 33-26097-09
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)
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-C, 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 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
<TABLE>
BALANCE SHEETS
June 30, December 31,
2000 1999
----------- -----------
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash $ 173,145 $ 164,100
Accounts receivable - oil and gas sales 149,769 128,379
---------- ----------
Total current assets 322,914 292,479
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,309,856 9,285,188
Accumulated depletion (7,998,838) (7,956,511)
---------- ----------
Net oil and gas properties 1,311,018 1,328,677
---------- ----------
$ 1,633,932 $ 1,621,156
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 38,585 $ 26,831
Partners' capital:
Managing general partner 15,903 15,893
Limited partners (12,107 interests) 1,579,444 1,578,432
---------- ----------
1,595,347 1,594,325
---------- ----------
$ 1,633,932 $ 1,621,156
========== ==========
</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-C, 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 $ 355,412 $ 172,712 $ 666,799 $ 319,242
Interest 3,011 1,178 5,335 2,241
-------- -------- -------- ---------
358,423 173,890 672,134 321,483
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 124,494 137,477 259,060 248,624
General and administrative 11,499 5,701 21,038 11,247
Depletion 20,219 26,863 42,327 90,777
-------- -------- -------- --------
156,212 170,041 322,425 350,648
-------- -------- -------- --------
Net income (loss) $ 202,211 $ 3,849 $ 349,709 $ (29,165)
======== ======== ======== ========
Allocation of net income (loss):
Managing general partner $ 2,022 $ 38 $ 3,497 $ (292)
======== ======== ======== ========
Limited partners $ 200,189 $ 3,811 $ 346,212 $ (28,873)
======== ======== ======== ========
Net income (loss) per limited
partnership interest $ 16.54 $ .32 $ 28.60 $ (2.38)
======== ======== ======== ========
</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-C, 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 $ 15,893 $1,578,432 $1,594,325
Distributions (3,487) (345,200) (348,687)
Net income 3,497 346,212 349,709
--------- --------- ---------
Balance at June 30, 2000 $ 15,903 $1,579,444 $1,595,347
========= ========= =========
</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-C, 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) $ 349,709 $ (29,165)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depletion 42,327 90,777
Changes in assets and liabilities:
Accounts receivable (21,390) (32,483)
Accounts payable 11,754 13,844
--------- --------
Net cash provided by operating activities 382,400 42,973
--------- --------
Cash flows used in investing activities:
Additions to oil and gas properties (24,668) (13,232)
Cash flows used in financing activities:
Cash distributions to partners (348,687) (11,648)
--------- --------
Net increase in cash 9,045 18,093
Cash at beginning of period 164,100 99,482
--------- --------
Cash at end of period $ 173,145 $ 117,575
========= ========
</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-C, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
(Unaudited)
Note 1. Organization and nature of operations
Parker & Parsley 90-C, 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 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 109% to $666,799 for the six
months ended June 30, 2000 as compared to $319,242 for the same period in 1999.
The increase in revenues resulted from higher average prices received and an
increase in production. For the six months ended June 30, 2000, 19,227 barrels
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of oil, 7,105 barrels of natural gas liquids ("NGLs") and 22,664 mcf of gas were
sold, or 30,109 barrel of oil equivalents ("BOEs"). For the six months ended
June 30, 1999, 18,522 barrels of oil, 6,611 barrels of NGLs and 21,869 mcf of
gas were sold, or 28,778 BOEs.
The average price received per barrel of oil increased $14.34, or 109%, from
$13.12 for the six months ended June 30, 1999 to $27.46 for the same period in
2000. The average price received per barrel of NGLs increased $6.17, or 93%,
from $6.63 during the six months ended June 30, 1999 to $12.80 for the same
period in 2000. The average price received per mcf of gas increased 43% from
$1.48 during the six months ended June 30, 1999 to $2.11 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.
Costs and Expenses:
Total costs and expenses decreased to $322,425 for the six months ended June 30,
2000 as compared to $350,648 for the same period in 1999, a decrease of $28,223,
or 8%. This decrease was due to a decline in depletion, offset by increases in
production costs and general and administrative expenses ("G&A").
Production costs were $259,060 for the six months ended June 30, 2000 and
$248,624 for the same period in 1999, resulting in a $10,436 increase, or 4%.
This increase was the result of higher production taxes due to higher oil and
gas prices, offset by lower well maintenance costs.
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, 87% from $11,247 for the six months ended June 30, 1999
to $21,038 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 $42,327 for the six months ended June 30, 2000 compared to $90,777
for the same period in 1999, a decrease of $48,450, or 53%. This decrease was
the result of an increase in proved reserves during the period ended June 30,
2000 due to higher commodity prices, offset by an increase in oil production of
705 barrels for the six months ended June 30, 2000 compared to the same period
in 1999.
Three months ended June 30, 2000 compared with three months ended June 30, 1999
Revenues:
The Partnership's oil and gas revenues increased 106% to $355,412 for the three
months ended June 30, 2000 as compared to $172,712 for the same period in 1999.
The increase in revenues resulted from higher average prices received and an
8
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increase in production. For the three months ended June 30, 2000, 9,904 barrels
of oil, 3,979 barrels of NGLs and 12,323 mcf of gas were sold, or 15,937 BOEs.
For the three months ended June 30, 1999, 8,848 barrels of oil, 3,546 barrels of
NGLs and 10,109 mcf of gas were sold, or 14,079 BOEs.
The average price received per barrel of oil increased $13.25, or 91%, from
$14.50 for the three months ended June 30, 1999 to $27.75 for the same period in
2000. The average price received per barrel of NGLs increased $4.69, or 59%,
from $7.99 during the three months ended June 30, 1999 to $12.68 for the same
period in 2000. The average price received per mcf of gas increased 53% from
$1.59 during the three months ended June 30, 1999 to $2.44 for the same period
in 2000.
Costs and Expenses:
Total costs and expenses decreased to $156,212 for the three months ended June
30, 2000 as compared to $170,041 for the same period in 1999, a decrease of
$13,829, or 8%. This decrease was due to declines in production costs and
depletion, offset by an increase in G&A.
Production costs were $124,494 for the three months ended June 30, 2000 and
$137,477 for the same period in 1999, resulting in a $12,983 decrease, or 9%.
The decrease was the result of lower well maintenance costs, offset by higher
production taxes due to higher oil and gas prices.
During this period, G&A increased, in aggregate, 102% from $5,701 for the three
months ended June 30, 1999 to $11,499 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 $20,219 for the three months ended June 30, 2000 compared to
$26,863 for the same period in 1999, a decrease of $6,644, or 25%. This decrease
was the result of an increase in proved reserves during the period ended June
30, 2000 as a result of higher commodity prices, offset by an increase in oil
production of 1,056 barrels for the three months ended June 30, 2000 compared to
the same period in 1999.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $339,427 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 $361,744,
offset by increases in operating costs paid of $13,109 and G&A expenses paid of
$9,208.
Net Cash Used in Investing Activities
The Partnership's principal investing activities during the six months ended
June 30, 2000 and 1999 were for expenditures related to equipment upgrades on
various oil and gas properties.
9
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Net Cash Used in Financing Activities
For the six months ended June 30, 2000, cash distributions to the partners were
$348,687, of which $3,487 was distributed to the managing general partner and
$345,200 to the limited partners. For the same period ended June 30, 1999, cash
distributions to the partners were $11,648, of which $116 was distributed to the
managing general partner and $11,532 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-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: Pioneer Natural Resources USA, Inc.,
Managing General Partner
Dated: August 9, 2000 By: /s/ Rich Dealy
----------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
11
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