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. 33-26097-09
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
---------------------------------------------------------------- ----------
(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 / /
<PAGE>
PARKER & PARSLEY 90-C, 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
<PAGE>
PARKER & PARSLEY 90-C, 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 $ 188,575 $ 164,100
Accounts receivable - oil and gas sales 178,514 128,379
----------- -----------
Total current assets 367,089 292,479
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,310,590 9,285,188
Accumulated depletion (8,018,675) (7,956,511)
----------- -----------
Net oil and gas properties 1,291,915 1,328,677
----------- -----------
$ 1,659,004 $ 1,621,156
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 49,071 $ 26,831
Partners' capital:
Managing general partner 16,049 15,893
Limited partners (12,107 interests) 1,593,884 1,578,432
----------- -----------
1,609,933 1,594,325
----------- -----------
$ 1,659,004 $ 1,621,156
=========== ===========
</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
<PAGE>
PARKER & PARSLEY 90-C, 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 $ 412,219 $ 249,001 $1,079,018 $ 568,243
Interest 4,001 1,759 9,336 4,000
-------- -------- --------- --------
416,220 250,760 1,088,354 572,243
-------- -------- --------- --------
Costs and expenses:
Oil and gas production 135,213 105,669 394,273 354,293
General and administrative 14,060 9,985 35,098 21,232
Depletion 19,837 25,412 62,164 116,189
-------- -------- --------- --------
169,110 141,066 491,535 491,714
-------- -------- --------- --------
Net income $ 247,110 $ 109,694 $ 596,819 $ 80,529
======== ======== ========= ========
Allocation of net income:
Managing general partner $ 2,471 $ 1,097 $ 5,968 $ 805
======== ======== ========= ========
Limited partners $ 244,639 $ 108,597 $ 590,851 $ 79,724
======== ======== ========= ========
Net income per limited
partnership interest $ 20.20 $ 8.96 $ 48.80 $ 6.58
======== ======== ========= ========
</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
<PAGE>
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, 2000 $ 15,893 $1,578,432 $1,594,325
Distributions (5,812) (575,399) (581,211)
Net income 5,968 590,851 596,819
--------- --------- ---------
Balance at September 30, 2000 $ 16,049 $1,593,884 $1,609,933
========= ========= =========
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
<PAGE>
PARKER & PARSLEY 90-C, 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 $ 596,819 $ 80,529
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 62,164 116,189
Changes in assets and liabilities:
Accounts receivable (50,135) (56,457)
Accounts payable 22,240 16,178
--------- --------
Net cash provided by operating activities 631,088 156,439
--------- --------
Cash flows used in investing activities:
Additions to oil and gas properties (25,402) (15,595)
Cash flows used in financing activities:
Cash distributions to partners (581,211) (88,150)
--------- --------
Net increase in cash 24,475 52,694
Cash at beginning of period 164,100 99,482
--------- --------
Cash at end of period $ 188,575 $ 152,176
========= ========
</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
<PAGE>
PARKER & PARSLEY 90-C, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 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 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 90% to $1,079,018 for the nine
months ended September 30, 2000 as compared to $568,243 for the same period in
1999. The increase in revenues resulted from higher average prices received and
7
<PAGE>
an increase in production. For the nine months ended September 30, 2000, 28,494
barrels of oil, 11,707 barrels of natural gas liquids ("NGLs") and 40,683 mcf of
gas were sold, or 46,982 barrel of oil equivalents ("BOEs"). For the nine months
ended September 30, 1999, 28,142 barrels of oil, 10,390 barrels of NGLs and
34,231 mcf of gas were sold, or 44,237 BOEs.
The average price received per barrel of oil increased $13.20, or 87%, from
$15.19 for the nine months ended September 30, 1999 to $28.39 for the same
period in 2000. The average price received per barrel of NGLs increased $5.95,
or 73%, from $8.13 during the nine months ended September 30, 1999 to $14.08 for
the same period in 2000. The average price received per mcf of gas increased 57%
from $1.65 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.
Costs and Expenses:
Total costs and expenses decreased to $491,535 for the nine months ended
September 30, 2000 as compared to $491,714 for the same period in 1999, a
decrease of $179. 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 $394,273 for the nine months ended September 30, 2000 and
$354,293 for the same period in 1999, resulting in an increase of $39,980, or
11%. The increase was primarily due to higher production taxes of $36,745
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, 65% from $21,232 for the nine months ended September
30, 1999 to $35,098 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 $62,164 for the nine months ended September 30, 2000 compared to
$116,189 for the same period in 1999, representing a decrease of $54,025, or
46%. 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 352 barrels for the nine months ended September
30, 2000 compared to the same period in 1999.
Three months ended September 30, 2000 compared with three months ended September
30, 1999
Revenues:
The Partnership's oil and gas revenues increased 66% to $412,219 for the three
months ended September 30, 2000 as compared to $249,001 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, 9,267
8
<PAGE>
barrels of oil, 4,602 barrels of NGLs and 18,019 mcf of gas were sold, or 16,872
BOEs. For the three months ended September 30, 1999, 9,620 barrels of oil, 3,779
barrels of NGLs and 12,362 mcf of gas were sold, or 15,459 BOEs.
The average price received per barrel of oil increased $11.13, or 58%, from
$19.17 for the three months ended September 30, 1999 to $30.30 for the same
period in 2000. The average price received per barrel of NGLs increased $5.33,
or 50%, from $10.74 during the three months ended September 30, 1999 to $16.07
for the same period in 2000. The average price received per mcf of gas increased
64% from $1.94 during the three months ended September 30, 1999 to $3.19 for the
same period in 2000.
Costs and Expenses:
Total costs and expenses increased to $169,110 for the three months ended
September 30, 2000 as compared to $141,066 for the same period in 1999, an
increase of $28,044, or 20%. This increase was due to increases in production
costs and G&A, offset by a decline in depletion.
Production costs were $135,213 for the three months ended September 30, 2000 and
$105,669 for the same period in 1999 resulting in a $29,544 increase, or 28%.
The increase was primarily due to higher production taxes of $14,120 associated
with higher oil and gas prices and additional well maintenance costs incurred to
stimulate well production of $7,137.
During this period, G&A increased, in aggregate, 41% from $9,985 for the three
months ended September 30, 1999 to $14,060 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 $19,837 for the three months ended September 30, 2000 compared to
$25,412 for the same period in 1999, representing a decrease of $5,575, or 22%.
This decrease was attributable to an increase in proved reserves as a result of
higher commodity prices and a decline in oil production of 353 barrels when
compared to the respective information for the same period in 1999.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $474,649 during the nine
months ended September 30, 2000 from the same period ended September 30, 1999.
This increase was due to an increase in oil and gas sales receipts of $522,433,
offset by increases in production costs paid of $34,223 and in G&A expenses paid
of $13,561.
Net Cash Used in 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.
9
<PAGE>
Net Cash Used in Financing Activities
For the nine months ended September 30, 2000, cash distributions to the partners
were $581,211, of which $5,812 was distributed to the managing general partner
and $575,399 to the limited partners. For the same period ended September 30,
1999, cash distributions to the partners were $88,150, of which $882 was
distributed to the managing general partner and $87,268 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
<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: Pioneer Natural Resources USA, Inc.,
Managing General Partner
Dated: November 8, 2000 By: /s/ Rich Dealy
----------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
11
<PAGE>
