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 quarter ended September 30, 1998
Commission File Number:
P-1: 0-17800 P-3: 0-18306 P-5: 0-18637
P-2: 0-17801 P-4: 0-18308 P-6: 0-18937
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-1 LIMITED PARTNERSHIP
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-2 LIMITED PARTNERSHIP
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-3
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-4
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-6
---------------------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
P-1 73-1330245
P-2 73-1330625
P-1 and P-2: P-3 73-1336573
Texas P-4 73-1341929
P-3 through P-6: P-5 73-1353774
Oklahoma P-6 73-1357375
---------------------------- -------------------------------
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(918) 583-1791
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
------ ------
1
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-1 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-1
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1998 1997
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 134,319 $ 503,622
Accounts receivable:
Net Profits 91,997 164,644
---------- ----------
Total current assets $ 226,316 $ 668,266
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,215,168 1,408,420
---------- ----------
$1,441,484 $2,076,686
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 89,247) ($ 87,415)
Limited Partners, issued and
outstanding, 108,074 units 1,530,731 2,164,101
---------- ----------
Total Partners' capital $1,441,484 $2,076,686
---------- ----------
$1,441,484 $2,076,686
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
2
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-1 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-1
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- --------
REVENUES:
Net Profits $114,886 $270,199
Interest and other income 4,241 3,401
Gain (loss) on sale of Net
Profits Interests ( 1,791) 3,860
-------- --------
$117,336 $277,460
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 48,122 $ 64,241
General and administrative
(Note 2) 30,953 30,421
-------- --------
$ 79,075 $ 94,662
-------- --------
NET INCOME $ 38,261 $182,798
======== ========
GENERAL PARTNER - NET INCOME $ 7,733 $ 11,539
======== ========
LIMITED PARTNERS - NET INCOME $ 30,528 $171,259
======== ========
NET INCOME per unit $ .28 $ 1.58
======== ========
UNITS OUTSTANDING 108,074 108,074
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
3
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-1 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-1
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Net Profits $ 537,453 $ 867,304
Interest and other income 10,466 8,457
Gain on sale of Net Profits
Interests 474,007 131,245
---------- ----------
$1,021,926 $1,007,006
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 161,970 $ 189,470
Impairment provision - 902,042
General and administrative
(Note 2) 98,174 99,843
---------- ----------
$ 260,144 $1,191,355
---------- ----------
NET INCOME (LOSS) $ 761,782 ($ 184,349)
========== ==========
GENERAL PARTNER - NET INCOME $ 48,152 $ 34,020
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 713,630 ($ 218,369)
========== ==========
NET INCOME (LOSS) per unit $ 6.60 ($ 2.02)
========== ==========
UNITS OUTSTANDING 108,074 108,074
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
4
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-1 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-1
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 761,782 ($ 184,349)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 161,970 189,470
Impairment provision - 902,042
Gain on sale of Net Profits
Interests ( 474,007) ( 131,245)
Decrease in accounts receivable -
Net Profits 72,647 43,563
Increase in accounts receivable -
General Partner - ( 21,749)
---------- ----------
Net cash provided by operating
activities $ 522,392 $ 797,732
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 13,756) ($ 18,310)
Proceeds from sale of Net Profits
Interests 519,045 227,430
---------- ----------
Net cash provided by investing
activities $ 505,289 $ 209,120
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,396,984) ($1,051,865)
---------- ----------
Net cash used by financing activities ($1,396,984) ($1,051,865)
---------- ----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 369,303) ($ 45,013)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 503,622 293,296
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 134,319 $ 248,283
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
5
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-2 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-2
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1998 1997
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 104,934 $ 369,191
Accounts receivable:
Net Profits 72,603 135,331
---------- ----------
Total current assets $ 177,537 $ 504,522
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 968,013 1,182,230
---------- ----------
$1,145,550 $1,686,752
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 80,928) ($ 72,438)
Limited Partners, issued and
outstanding, 90,094 units 1,226,478 1,759,190
---------- ----------
Total Partners' capital $1,145,550 $1,686,752
---------- ----------
$1,145,550 $1,686,752
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
6
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-2 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-2
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
REVENUES:
Net Profits $89,003 $207,968
Interest and other income 2,978 2,702
Gain (loss) on sale of Net
Profits Interests ( 1,378) 2,210
------- --------
$90,603 $212,880
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $37,598 $ 52,479
General and administrative
(Note 2) 25,805 25,375
------- --------
$63,403 $ 77,854
------- --------
NET INCOME $27,200 $135,026
======= ========
GENERAL PARTNER - NET INCOME $ 2,715 $ 8,715
======= ========
LIMITED PARTNERS - NET INCOME $24,485 $126,311
======= ========
NET INCOME per unit $ .27 $ 1.40
======= ========
UNITS OUTSTANDING 90,094 90,094
======= ========
The accompanying condensed notes are an integral part of these
combined financial statements.
7
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-2 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-2
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ---------
REVENUES:
Net Profits $410,191 $677,306
Interest and other income 7,625 6,612
Gain on sale of Net Profits
Interests 253,637 82,301
-------- --------
$671,453 $766,219
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $125,373 $157,458
Impairment provision - 727,893
General and administrative
(Note 2) 81,952 83,094
-------- --------
$207,325 $968,445
-------- --------
NET INCOME (LOSS) $464,128 ($202,226)
======== ========
GENERAL PARTNER - NET INCOME $ 27,840 $ 24,972
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $436,288 ($227,198)
======== ========
NET INCOME (LOSS) per unit $ 4.84 ($ 2.52)
======== ========
UNITS OUTSTANDING 90,094 90,094
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
8
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-2 LIMITED PARTNERSHIP
GEODYNE NPI PARTNERSHIP P-2
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 464,128 ($202,226)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 125,373 157,458
Impairment provision - 727,893
Gain on sale of Net Profits
Interests ( 253,637) ( 82,301)
Decrease in accounts receivable -
Net Profits 62,728 34,019
Increase in accounts receivable -
General Partner - ( 6,471)
---------- --------
Net cash provided by operating
activities $ 398,592 $628,372
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 17,394) ($ 26,895)
Proceeds from sale of Net Profits
Interests 359,875 201,403
---------- --------
Net cash provided by investing
activities $ 342,481 $174,508
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,005,330) ($850,083)
---------- --------
Net cash used by financing activities ($1,005,330) ($850,083)
---------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 264,257) ($ 47,203)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 369,191 222,506
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 104,934 $175,303
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
9
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-3
GEODYNE NPI PARTNERSHIP P-3
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1998 1997
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 196,106 $ 685,628
Accounts receivable:
Net Profits 137,904 254,470
---------- ----------
Total current assets $ 334,010 $ 940,098
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,935,035 2,196,444
---------- ----------
$2,269,045 $3,136,542
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 146,207) ($ 137,258)
Limited Partners, issued and
outstanding, 169,637 units 2,415,252 3,273,800
---------- ----------
Total Partners' capital $2,269,045 $3,136,542
---------- ----------
$2,269,045 $3,136,542
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
10
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-3
GEODYNE NPI PARTNERSHIP P-3
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- ---------
REVENUES:
Net Profits $166,755 $386,110
Interest and other income 5,626 5,215
Gain (loss) on sale of Net
Profits Interests ( 2,558) 5,307
-------- --------
$169,823 $396,632
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 70,090 $ 96,687
General and administrative
(Note 2) 48,580 47,678
-------- --------
$118,670 $144,365
-------- --------
NET INCOME $ 51,153 $252,267
======== ========
GENERAL PARTNER - NET INCOME $ 5,080 $ 16,220
======== ========
LIMITED PARTNERS - NET INCOME $ 46,073 $236,047
======== ========
NET INCOME per unit $ .27 $ 1.39
======== ========
UNITS OUTSTANDING 169,637 169,637
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
11
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-3
GEODYNE NPI PARTNERSHIP P-3
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Net Profits $ 764,416 $1,262,543
Interest and other income 14,498 12,676
Gain on sale Net Profits
Interests 603,091 147,793
---------- ----------
$1,382,005 $1,423,012
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 232,939 $ 291,256
Impairment provision - 1,413,917
General and administrative
(Note 2) 154,282 156,317
---------- ----------
$ 387,221 $1,861,490
---------- ----------
NET INCOME (LOSS) $ 994,784 ($ 438,478)
========== ==========
GENERAL PARTNER - NET INCOME $ 58,332 $ 45,649
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 936,452 ($ 484,127)
========== ==========
NET INCOME (LOSS) per unit $ 5.52 ($ 2.85)
========== ==========
UNITS OUTSTANDING 169,637 169,637
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
12
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-3
GEODYNE NPI PARTNERSHIP P-3
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 994,784 ($ 438,478)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 232,939 291,256
Impairment provision - 1,413,917
Gain on sale of Net Profits
Interests ( 603,091) ( 147,793)
Decrease in accounts receivable -
Net Profits 116,566 63,039
Increase in accounts receivable -
General Partner - ( 10,917)
---------- ----------
Net cash provided by operating
activities $ 741,198 $1,171,024
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 33,084) ($ 53,174)
Proceeds from sale of Net Profits
Interests 664,645 389,977
---------- ----------
Net cash provided by investing
activities $ 631,561 $ 336,803
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,862,281) ($1,595,111)
---------- ----------
Net cash used by financing activities ($1,862,281) ($1,595,111)
---------- ----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 489,522) ($ 87,284)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 685,628 415,354
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 196,106 $ 328,070
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
13
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-4
GEODYNE NPI PARTNERSHIP P-4
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1998 1997
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 164,373 $ 243,903
Accounts receivable:
Net Profits 173,447 301,060
---------- ----------
Total current assets $ 337,820 $ 544,963
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,098,184 1,282,329
---------- ----------
$1,436,004 $1,827,292
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 100,824) ($ 94,799)
Limited Partners, issued and
outstanding, 126,306 units 1,536,828 1,922,091
---------- ----------
Total Partners' capital $1,436,004 $1,827,292
---------- ----------
$1,436,004 $1,827,292
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
14
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-4
GEODYNE NPI PARTNERSHIP P-4
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- --------
REVENUES:
Net Profits $138,857 $288,543
Interest and other income 1,714 4,140
Loss on sale of Net
Profits Interests ( 238) ( 571)
-------- --------
$140,333 $292,112
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 54,446 $ 97,298
General and administrative
(Note 2) 36,110 35,495
-------- --------
$ 90,556 $132,793
-------- --------
NET INCOME $ 49,777 $159,319
======== ========
GENERAL PARTNER - NET INCOME $ 4,581 $ 11,650
======== ========
LIMITED PARTNERS - NET INCOME $ 45,196 $147,669
======== ========
NET INCOME per unit $ .36 $ 1.17
======== ========
UNITS OUTSTANDING 126,306 126,306
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
15
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-4
GEODYNE NPI PARTNERSHIP P-4
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
REVENUES:
Net Profits $557,503 $1,013,278
Interest and other income 6,871 10,780
Gain (loss) on sale of Net
Profits Interests 12,014 ( 6,065)
-------- ----------
$576,388 $1,017,993
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $185,990 $ 326,113
Impairment provision - 752,388
General and administrative
(Note 2) 114,784 114,164
-------- ----------
$300,774 $1,192,665
-------- ----------
NET INCOME (LOSS) $275,614 ($ 174,672)
======== ==========
GENERAL PARTNER - NET INCOME $ 20,877 $ 33,867
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $254,737 ($ 208,539)
======== ==========
NET INCOME (LOSS) per unit $ 2.02 ($ 1.65)
======== ==========
UNITS OUTSTANDING 126,306 126,306
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
16
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-4
GEODYNE NPI PARTNERSHIP P-4
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $275,614 ($ 174,672)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 185,990 326,113
Impairment provision - 752,388
(Gain) loss on sale of Net
Profits Interests ( 12,014) 6,065
Decrease in accounts receivable -
Net Profits 127,613 82,387
-------- ----------
Net cash provided by operating
activities $577,203 $ 992,281
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 4,726) ($ 16,738)
Proceeds from sale of Net Profits
Interests 14,895 241,920
-------- ----------
Net cash provided by investing
activities $ 10,169 $ 225,182
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($666,902) ($1,312,996)
-------- ----------
Net cash used by financing activities ($666,902) ($1,312,996)
-------- ----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 79,530) ($ 95,533)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 243,903 345,876
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $164,373 $ 250,343
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
17
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE NPI PARTNERSHIP P-5
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1998 1997
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 203,806 $ 228,750
Accounts receivable:
Net Profits 77,073 134,968
---------- ----------
Total current assets $ 280,879 $ 363,718
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,082,139 1,257,789
---------- ----------
$1,363,018 $1,621,507
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 79,626) ($ 74,683)
Limited Partners, issued and
outstanding, 118,449 units 1,442,644 1,696,190
---------- ----------
Total Partners' capital $1,363,018 $1,621,507
---------- ----------
$1,363,018 $1,621,507
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
18
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE NPI PARTNERSHIP P-5
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
REVENUES:
Net Profits $189,220 $248,233
Interest and other income 3,102 2,136
Gain on sale of Net Profits
Interests 803 14,650
-------- --------
$193,125 $265,019
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 65,403 $ 72,173
General and administrative
(Note 2) 33,873 33,294
-------- --------
$ 99,276 $105,467
-------- --------
NET INCOME $ 93,849 $159,552
======== ========
GENERAL PARTNER - NET INCOME $ 7,154 $ 10,758
======== ========
LIMITED PARTNERS - NET INCOME $ 86,695 $148,794
======== ========
NET INCOME per unit $ .73 $ 1.26
======== ========
UNITS OUTSTANDING 118,449 118,449
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
19
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE NPI PARTNERSHIP P-5
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
REVENUES:
Net Profits $619,716 $ 750,913
Interest and other income 8,301 6,894
Gain on sale of Net Profits
Interests 340,817 68,845
-------- ----------
$968,834 $ 826,652
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $185,027 $ 224,115
Impairment provision - 1,018,068
General and administrative
(Note 2) 107,554 109,771
-------- ----------
$292,581 $1,351,954
-------- ----------
NET INCOME (LOSS) $676,253 ($ 525,302)
======== ==========
GENERAL PARTNER - NET INCOME $ 40,799 $ 23,078
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $635,454 ($ 548,380)
======== ==========
NET INCOME (LOSS) per unit $ 5.36 ($ 4.63)
======== ==========
UNITS OUTSTANDING 118,449 118,449
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
20
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE NPI PARTNERSHIP P-5
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $676,253 ($ 525,302)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 185,027 224,115
Impairment provision - 1,018,068
Gain on sale of Net Profits
Interests ( 340,817) ( 68,845)
Decrease in accounts receivable -
Net Profits 57,895 77,505
Increase in accounts receivable -
General Partner - ( 7,716)
-------- ----------
Net cash provided by operating
activities $578,358 $ 717,825
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 37,045) $ -
Proceeds from sale of Net Profits
Interests 368,485 81,708
-------- ----------
Net cash provided by investing
activities $331,440 $ 81,708
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($934,742) ($ 874,288)
-------- ----------
Net cash used by financing activities ($934,742) ($ 874,288)
-------- ----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 24,944) ($ 74,755)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 228,750 247,540
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $203,806 $ 172,785
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
21
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-6
GEODYNE NPI PARTNERSHIP P-6
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1998 1997
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 253,745 $ 362,957
Accounts receivable:
Net Profits 128,250 291,352
---------- ----------
Total current assets $ 381,995 $ 654,309
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 2,175,229 2,457,809
---------- ----------
$2,557,224 $3,112,118
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 106,522) ($ 96,514)
Limited Partners, issued and
outstanding, 143,041 units 2,663,746 3,208,632
---------- ----------
Total Partners' capital $2,557,224 $3,112,118
---------- ----------
$2,557,224 $3,112,118
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
22
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-6
GEODYNE NPI PARTNERSHIP P-6
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- ---------
REVENUES:
Net Profits $256,471 $434,139
Interest and other income 2,925 3,744
Gain (loss) on sale of Net
Profits Interests ( 1,421) 5,558
-------- --------
$257,975 $443,441
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $110,826 $155,616
General and administrative
(Note 2) 40,901 40,201
-------- --------
$151,727 $195,817
-------- --------
NET INCOME $106,248 $247,624
======== ========
GENERAL PARTNER - NET INCOME $ 9,600 $ 18,419
======== ========
LIMITED PARTNERS - NET INCOME $ 96,648 $229,205
======== ========
NET INCOME per unit $ .67 $ 1.60
======== ========
UNITS OUTSTANDING 143,041 143,041
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
23
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-6
GEODYNE NPI PARTNERSHIP P-6
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Net Profits $ 873,844 $1,386,099
Interest and other income 10,360 12,195
Gain on sale of Net Profits
Interests 133,104 31,516
---------- ----------
$1,017,308 $1,429,810
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 309,288 $ 482,134
Impairment provision - 898,584
General and administrative
(Note 2) 130,159 132,891
---------- ----------
$ 439,447 $1,513,609
---------- ----------
NET INCOME (LOSS) $ 577,861 ($ 83,799)
========== ==========
GENERAL PARTNER - NET INCOME $ 40,747 $ 50,429
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 537,114 ($ 134,228)
========== ==========
NET INCOME (LOSS) per unit $ 3.75 ($ .94)
========== ==========
UNITS OUTSTANDING 143,041 143,041
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
24
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-6
GEODYNE NPI PARTNERSHIP P-6
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
1998 1997
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 577,861 ($ 83,799)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 309,288 482,134
Impairment provision - 898,584
Gain on sale of Net Profits
Interests ( 133,104) ( 31,516)
Decrease in accounts receivable -
Net Profits 163,102 142,867
Increase in accounts receivable -
General Partner - ( 2,649)
---------- ----------
Net cash provided by operating
activities $ 917,147 $1,405,621
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 41,351) ($ 6,294)
Proceeds from sale of Net Profits
Interests 147,747 36,851
---------- ----------
Net cash provided by investing
activities $ 106,396 $ 30,557
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,132,755) ($1,401,780)
---------- ----------
Net cash used by financing activities ($1,132,755) ($1,401,780)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 109,212) $ 34,398
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 362,957 319,699
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 253,745 $ 354,097
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
25
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
SEPTEMBER 30, 1998
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of September 30, 1998, combined statements
of operations for the three and nine months ended September 30, 1998 and
1997, and combined statements of cash flows for the nine months ended
September 30, 1998 and 1997 have been prepared by Geodyne Resources, Inc.,
the General Partner of the Geodyne Institutional/Pension Energy Limited
Partnerships, without audit. Each limited partnership is a general partner
in the related Geodyne NPI Partnership (the "NPI Partnerships") in which
Geodyne Resources, Inc. serves as the managing partner. For the purposes
of these financial statements, the general partner and managing partner
are collectively referred to as the "General Partner" and the limited
partnerships and NPI Partnerships are collectively referred to as the
"Partnerships". In the opinion of management the financial statements
referred to above include all necessary adjustments, consisting of normal
recurring adjustments, to present fairly the combined financial position
at September 30, 1998, the combined results of operations for the three
and nine months ended September 30, 1998 and 1997, and the combined cash
flows for the nine months ended September 30, 1998 and 1997.
Information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The accompanying interim
financial statements should be read in conjunction with the Partnerships'
Annual Report on Form 10-K filed for the year ended December 31, 1997. The
results of operations for the period ended September 30, 1998 are not
necessarily indicative of the results to be expected for the full year.
As used in these financial statements, the Partnerships' net profits and
royalty interests in oil and gas sales are referred to as "Net Profits"
and the Partnerships' net profits and royalty interests in oil and gas
properties are referred to as "Net Profits Interests". The working
interests from which Partnerships' Net Profits Interests are carved are
referred to as "Working Interests".
The Limited Partners' net income or loss per unit is based upon each $100
initial capital contribution.
26
<PAGE>
NET PROFITS INTERESTS
---------------------
The Partnerships follow the successful efforts method of accounting for
their Net Profits Interests. Under the successful efforts method, the NPI
Partnerships capitalize all acquisition costs. Property acquisition costs
include costs incurred by the Partnerships or the General Partner to
acquire producing properties, including related title insurance or
examination costs, commissions, engineering, legal and accounting fees,
and similar costs directly related to the acquisitions, plus an allocated
portion, of the General Partner's property screening costs. The
acquisition cost to the NPI Partnership of Net Profits Interests acquired
by the General Partner is adjusted to reflect the net cash results of
operations, including interest incurred to finance the acquisition, for
the period of time the properties are held by the General Partner prior to
their transfer to the Partnerships. Impairment of Net Profits Interests is
recognized based upon an individual property assessment.
Depletion of the costs of Net Profits Interests is computed on the
unit-of-production method. The Partnerships' calculation of depletion of
its Net Profits Interests includes estimated dismantlement and abandonment
costs, net of estimated salvage value.
The Partnerships do not directly bear capital costs. However, the
Partnerships indirectly bear certain capital costs incurred by the owners
of the Working Interests to the extent such capital costs are charged
against the applicable oil and gas revenues in calculating the net profits
payable to the Partnerships. For financial reporting purposes only, such
capital costs are reported as capital expenditures in the Partnerships'
Statements of Cash Flows.
Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting
for the Impairment of Long Lived Assets and Assets Held for Disposal",
requires successful efforts companies, like the Partnerships, to evaluate
the recoverability of the carrying costs of their proved oil and gas
properties at the lowest level for which there are identifiable cash flows
that are largely independent of the cash flows of other groups of oil and
gas properties. With respect to the Partnerships' oil and gas properties,
this evaluation was performed for each field. SFAS No. 121, provides that
if the unamortized costs of oil and gas properties for each field exceed
the expected undiscounted future cash flows from such properties, the cost
of the properties is written down to fair value, which is determined by
using the discounted future cash flows from the properties. The
Partnerships recorded a non-cash charge against earnings (impairment
provision) during the nine
27
<PAGE>
months ended September 30, 1997 pursuant to SFAS No. 121 as follows:
Partnership Amount
----------- -----------
P-1 $ 902,042
P-2 727,893
P-3 1,413,917
P-4 752,388
P-5 1,018,068
P-6 898,584
No such charge was recorded in the nine months ended September 30, 1998.
The risk that the Partnerships will be required to record such impairment
provisions in the future increases when oil and gas prices are depressed.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' partnership agreements provide for reimbursement to the
General Partner for all direct general and administrative expenses and for
the general and administrative overhead applicable to the Partnerships
based on an allocation of actual costs incurred. During the three months
ended September 30, 1998 the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
P-1 $2,513 $28,440
P-2 2,096 23,709
P-3 3,940 44,640
P-4 2,870 33,240
P-5 2,703 31,170
P-6 3,260 37,641
During the nine months ended September 30, 1998 the following payments
were made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
P-1 $12,854 $ 85,320
P-2 10,825 71,127
P-3 20,362 133,920
P-4 15,064 99,720
P-5 14,044 93,510
P-6 17,236 112,923
28
<PAGE>
Affiliates of the Partnerships operate certain of the Partnerships'
properties and their policy is to bill the Partnerships for all customary
charges and cost reimbursements associated with their activities.
29
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
- -----------------------------------------------
This Quarterly Report contains certain forward-looking statements. The
words "anticipate", "believe", "expect", "plan", "intend", "estimate",
"project", "could", "may" and similar expressions are intended to identify
forward-looking statements. Such statements reflect management's current
views with respect to future events and financial performance. This
Quarterly Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions are
management's efforts to accurately reflect the condition and operation of
the Partnerships.
Use of forward-looking statements and estimates and assumptions involve
risks and uncertainties which include, but are not limited to, the
volatility of oil and gas prices, the uncertainty of reserve information,
the operating risk associated with oil and gas properties (including the
risk of personal injury, death, property damage, damage to the well or
producing reservoir, environmental contamination, and other operating
risks), the prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the general
economic climate, the supply and price of foreign imports of oil and gas,
the level of consumer product demand, and the price and availability of
alternative fuels. Should one or more of these risks or uncertainties
occur or should estimates or underlying assumptions prove incorrect,
actual conditions or results may vary materially and adversely from those
stated, anticipated, believed, estimated, and otherwise indicated.
GENERAL
- -------
The Partnerships are engaged in the business of acquiring Net Profits
Interests in producing oil and gas properties located in the continental
United States. In general, a Partnership acquired passive interests in
producing properties and does not directly engage in development drilling
or enhanced recovery projects. Therefore, the economic life of each
limited partnership, and its related NPI Partnership, is limited to the
period of time required to fully produce its acquired oil and gas
reserves. A Net Profits Interest entitles the Partnerships to a portion of
the oil and gas sales less operating and production expenses and
development costs generated by the owner of the
30
<PAGE>
underlying Working Interests. The net proceeds from the oil and gas
operations are distributed to the Limited Partners and the General
Partner in accordance with the terms of the Partnerships' partnership
agreements.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
P-1 October 25, 1988 $10,807,400
P-2 February 9, 1989 9,009,400
P-3 May 10, 1989 16,963,700
P-4 November 21, 1989 12,630,600
P-5 February 27, 1990 11,844,900
P-6 September 5, 1990 14,304,100
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
Net proceeds from the Partnerships' Net Profits Interests less necessary
operating capital are distributed to the Limited Partners on a quarterly
basis. Revenues and net proceeds of a Partnership are largely dependent
upon the volumes of oil and gas sold and the prices received for such oil
and gas. While the General Partner cannot predict future pricing trends,
it believes the working capital available as of September 30, 1998 and the
net revenue generated from future operations will provide sufficient
working capital to meet current and future obligations.
31
<PAGE>
The Partnerships' Statements of Cash Flows for the nine months ended
September 30, 1998 include proceeds from the sale of Net Profits
Interests. The proceeds received during the first quarter of 1998 were
included in the Partnerships' cash distributions paid in May 1998, the
proceeds received during the second quarter of 1998 were included in the
Partnerships' cash distributions paid in August 1998, and the proceeds
received during the third quarter of 1998 will be included in the
Partnerships' cash distributions to be paid in November 1998. It is
possible that the Partnerships' repurchase values and future cash
distributions could decline as a result of the disposition of these
properties. On the other hand, the General Partner believes there will be
beneficial operating efficiencies related to the Partnerships' remaining
properties. This is primarily due to the fact that the properties sold
generally bore a higher ratio of operating expenses as compared to
reserves than the Partnerships' remaining properties.
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction with the
analysis of results of operations provided below. The most important
variable affecting the Partnerships' revenues is the prices received for
the sale of oil and gas. Predicting future prices is very difficult.
Substantially all of the Partnerships' gas reserves are being sold in the
"spot market". Prices on the spot market are subject to wide seasonal and
regional pricing fluctuations due to the highly competitive nature of the
spot market. Such spot market sales are generally short-term in nature and
are dependent upon the obtaining of transportation services provided by
pipelines. In addition, crude oil prices are at or near their lowest level
in the past decade due primarily to the global surplus of crude oil.
Management is unable to predict whether future oil and gas prices will (i)
stabilize, (ii) increase, or (iii) decrease.
32
<PAGE>
P-1 PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997.
Three Months Ended September 30,
--------------------------------
1998 1997
-------- --------
Net Profits $114,886 $270,199
Barrels produced 5,573 8,060
Mcf produced 73,501 93,344
Average price/Bbl $ 11.14 $ 17.65
Average price/Mcf $ 1.46 $ 1.98
As shown in the table above, Net Profits decreased $155,313 (57.5%) for
the three months ended September 30, 1998 as compared to the three months
ended September 30, 1997. Of this decrease, approximately $36,000 and
$39,000, respectively, were related to decreases in the average prices of
oil and gas sold and approximately $44,000 and $39,000, respectively, were
related to decreases in the volumes of oil and gas sold. The decrease in
Net Profits was partially offset by an increase of approximately $3,000
related to decreases in production expenses incurred by the owners of the
Working Interests. Volumes of oil and gas sold decreased 2,487 barrels and
19,843 Mcf, respectively, for the three months ended September 30, 1998 as
compared to the three months ended September 30, 1997. The decreases in
volumes of oil and gas sold resulted primarily from the sale of several
wells during 1997 and 1998. The decrease in production expenses resulted
primarily from (i) a decrease in lease operating expenses associated with
the decreases in volumes of oil and gas sold during the three months ended
September 30, 1998 as compared to the three months ended September 30,
1997 and (ii) a decrease in production taxes associated with the decrease
in Net Profits discussed above, which decreases were partially offset by
workover expenses incurred on one well during the three months ended
September 30, 1998 in order to improve the recovery of reserves. Average
oil and gas prices decreased to $11.14 per barrel and $1.46 per Mcf,
respectively, for the three months ended September 30, 1998 from $17.65
per barrel and $1.98 per Mcf, respectively, for the three months ended
September 30, 1997.
33
<PAGE>
Depletion of Net Profits Interests decreased $16,119 (25.1%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. This decrease resulted primarily from the decrease in
volumes of oil and gas sold during the three months ended September 30,
1998 as compared to the three months ended September 30, 1997. As a
percentage of Net Profits, this expense increased to 41.9% for the three
months ended September 30, 1998 from 23.8% for the three months ended
September 30, 1997. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold during the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997.
General and administrative expenses increased $532 (1.7%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. As a percentage of Net Profits, these expenses
increased to 26.9% for the three months ended September 30, 1998 from
11.3% for the three months ended September 30, 1997. This percentage
increase was primarily due to the decrease in Net Profits discussed above.
The P-1 Partnership achieved payout during the three months ended
September 30, 1998. After payout, operations and revenues for the P-1
Partnership have been and will be allocated using the after payout
percentages included in the Partnership's limited partnership agreements.
After payout percentages allocate operating income and expenses 10% to the
General Partner and 90% to the Limited Partners. (Before payout, operating
income and expenses were allocated 5% to the General Partner and 95% to
the Limited Partners.) See the Partnerships' Annual Report on Form 10-K
for the year ended December 31, 1997 for a further discussion of pre and
post payout allocations of income and expense.
NINE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
Nine Months Ended September 30,
-------------------------------
1998 1997
-------- --------
Net Profits $537,453 $867,304
Barrels produced 20,530 25,187
Mcf produced 236,755 266,823
Average price/Bbl $ 14.01 $ 18.96
Average price/Mcf $ 1.80 $ 2.27
As shown in the table above, Net Profits decreased $329,851 (38.0%) for
the nine months ended September 30, 1998 as compared to the nine months
ended September 30, 1997. Of this decrease, approximately $102,000 and
$109,000, respectively, were related to decreases in the average
34
<PAGE>
prices of oil and gas sold and approximately $88,000 and $68,000,
respectively, were related to the decreases in volumes of oil and gas
sold. The decrease in Net Profits was partially offset by an increase of
approximately $37,000 related to decreases in production expenses incurred
by the owners of the Working Interests. Volumes of oil and gas sold
decreased 4,657 barrels and 30,068 Mcf, respectively, for the nine months
ended September 30, 1998 as compared to the nine months ended September
30, 1997. The decreases in volumes of oil and gas sold resulted primarily
from the sale of several wells during 1997 and 1998. Average oil and gas
prices decreased to $14.01 per barrel and $1.80 per Mcf, respectively, for
the nine months ended September 30, 1998 from $18.96 per barrel and $2.27
per Mcf, respectively, for the nine months ended September 30, 1997.
As discussed in Liquidity and Capital Resources above, the P-1 Partnership
sold certain Net Profits Interests during the nine months ended September
30, 1998 and recognized a $474,007 gain on such sales. Similar sales
during the nine months ended September 30, 1997 resulted in the P-1
Partnership recognizing similar gains totaling $131,245.
Depletion of Net Profits Interests decreased $27,500 (14.5%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. As a percentage of Net Profits, this expense increased
to 30.1% for the nine months ended September 30, 1998 from 21.8% for the
nine months ended September 30, 1997. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold
during the nine months ended September 30, 1998 as compared to the nine
months ended September 30, 1997.
The P-1 Partnership recognized a non-cash charge against earnings of
$902,042 during the nine months ended September 30, 1997. Of this amount,
$113,945 was related to the decline in oil and gas prices used to
determine future cash flows from the P-1 Partnership's Net Profits
Interests in proved oil and gas reserves at March 31, 1997 and $788,097
was related to the writing-off of Net Profits Interests in unproved
properties. The General Partner determined that it was unlikely that these
unproved properties would be developed due to the low oil and gas prices
received over the prior several years and Partnership Agreement provisions
which limit the P-1 Partnership's level of permissible indirect drilling
activity through its Affiliated Programs. No similar charges were
necessary during the nine months ended September 30, 1998.
35
<PAGE>
General and administrative expenses decreased $1,669 (1.7%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. As a percentage of Net Profits, these expenses
increased to 18.3% for the nine months ended September 30, 1998 from 11.5%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decrease in Net Profits discussed above.
The P-1 Partnership achieved payout during the nine months ended September
30, 1998. After payout, operations and revenues for the P-1 Partnership
have been and will be allocated using the after payout percentages
included in the Partnership's limited partnership agreements. After payout
percentages allocate operating income and expenses 10% to the General
Partner and 90% to the Limited Partners. (Before payout, operating income
and expenses were allocated 5% to the General Partner and 95% to the
Limited Partners.) See the Partnerships' Annual Report on Form 10-K for
the year ended December 31, 1997 for a further discussion of pre and post
payout allocations of income and expense.
Cumulative cash distributions to the Limited Partners through September
30, 1998 were $11,360,558 or 105.12% of the Limited Partners' capital
contributions.
P-2 PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997.
Three Months Ended September 30,
--------------------------------
1998 1997
------- --------
Net Profits $89,003 $207,968
Barrels produced 3,862 5,737
Mcf produced 61,006 76,840
Average price/Bbl $ 11.00 $ 17.68
Average price/Mcf $ 1.52 $ 2.02
As shown in the table above, Net Profits decreased $118,965 (57.2%) for
the three months ended September 30, 1998 as compared to the three months
ended September 30, 1997. Of this decrease, approximately $26,000 and
$30,000, respectively, were related to decreases in the average prices of
oil and gas sold and approximately $33,000 and $32,000, respectively, were
related to decreases in the volumes of oil and gas sold. The decrease in
Net Profits was partially offset by an increase of approximately $2,000
related to decreases in production expenses incurred by owners of the
Working Interests. Volumes of oil and gas sold decreased 1,875 barrels and
15,834 Mcf, respectively, for the three months ended September 30, 1998 as
compared to
36
<PAGE>
the three months ended September 30, 1997. The decreases in volumes of oil
and gas sold resulted primarily from the sale of several wells during 1997
and 1998. The decrease in production expenses resulted primarily from (i)
a decrease in lease operating expenses associated with the decrease in
volumes of oil and gas sold during the three months ended September 30,
1998 as compared to the three months ended September 30, 1997 and (ii) a
decrease in production taxes associated with the decrease in Net Profits
discussed above, which decreases were partially offset by workover
expenses incurred on one well during the three months ended September 30,
1998 in order to improve the recovery of reserves. Average oil and gas
prices decreased to $11.00 per barrel and $1.52 per Mcf, respectively, for
the three months ended September 30, 1998 from $17.68 per barrel and $2.02
per Mcf, respectively, for the three months ended September 30, 1997.
Depletion of Net Profits Interests decreased $14,881 (28.4%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. This decrease resulted primarily from the decreases in
volumes of oil and gas sold during the three months ended September 30,
1998 as compared to the three months ended September 30, 1997. As a
percentage of Net Profits, this expense increased to 42.2% for the three
months ended September 30, 1998 from 25.2% for the three months ended
September 30, 1997. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold during the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997.
General and administrative expenses increased $430 (1.7%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. As a percentage of Net Profits, these expenses
increased to 29.0% for the three months ended September 30, 1998 from
12.2% for the three months ended September 30, 1997. This percentage
increase was primarily due to the decrease in Net Profits.
37
<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
Nine Months Ended September 30,
-------------------------------
1998 1997
-------- --------
Net Profits $410,191 $677,306
Barrels produced 14,384 17,880
Mcf produced 194,383 226,555
Average price/Bbl $ 13.95 $ 18.98
Average price/Mcf $ 1.83 $ 2.31
As shown in the table above, Net Profits decreased $267,115 (39.4%) for
the nine months ended September 30, 1998 as compared to the nine months
ended September 30, 1997. Of this decrease, approximately $72,000 and
$93,000, respectively, were related to decreases in the average prices of
oil and gas sold and approximately $66,000 and $74,000, respectively, were
related to decreases in the volumes of oil and gas sold. The decrease in
Net Profits was partially offset by an increase of approximately $39,000
related to decreases in production expenses incurred by the owners of the
Working Interests. Volumes of oil and gas sold decreased 3,496 barrels and
32,172 Mcf, respectively, for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997. The decreases in
volumes of oil and gas sold resulted primarily from the sale of several
wells during 1997 and 1998. Average oil and gas prices decreased to $13.95
per barrel and $1.83 per Mcf, respectively, for the nine months ended
September 30, 1998 from $18.98 per barrel and $2.31 per Mcf, respectively,
for the nine months ended June 30, 1997.
As discussed in Liquidity and Capital Resources above, the P-2 Partnership
sold certain Net Profits Interests during the nine months ended September
30, 1998 and recognized a $253,637 gain on such sales. Similar sales
during the nine months ended September 30, 1997 resulted in the P-2
Partnership recognizing similar gains totaling $82,301.
Depletion of Net Profits Interests decreased $32,085 (20.4%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. This decrease resulted primarily from the decreases in
volumes of oil and gas sold during the nine months ended September 30,
1998 as compared to the nine months ended September 30, 1997. As a
percentage of Net Profits, this expense increased to 30.6% for the nine
months ended September 30, 1998 from 23.2% for the nine months ended
September 30, 1997. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold during the nine months
ended September 30, 1998 as compared to the nine months ended September
30, 1997.
38
<PAGE>
The P-2 Partnership recognized a non-cash charge against earnings of
$727,893 during the nine months ended September 30, 1997. Of this amount,
$113,005 was related to the decline in oil and gas prices used to
determine future cash flows from the P-2 Partnership's Net Profits
Interests in proved oil and gas reserves at March 31, 1997 and $614,888
was related to the writing-off of Net Profits Interests in unproved
properties. The General Partner determined that it was unlikely that these
unproved properties would be developed due to the low oil and gas prices
received over the prior several years and Partnership Agreement provisions
which limit the P-2 Partnership's level of permissible indirect drilling
activity through its Affiliated Programs. No similar charges were
necessary during the nine months ended September 30, 1998. General and
administrative expenses decreased $1,142 (1.4%) for the nine months
ended September 30, 1998 as compared to the nine months ended September
30, 1997. As a percentage of Net Profits, these expenses increased to
20.0% for the nine months ended September 30, 1998 from 12.3% for the nine
months ended September 30, 1997. This percentage increase was primarily
due to the decrease in Net Profits.
Cumulative cash distributions to the Limited Partners through September
30, 1998 were $8,631,561 or 95.81% of the Limited Partners' capital
contributions.
P-3 PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997.
Three Months Ended September 30,
--------------------------------
1998 1997
-------- --------
Net Profits $166,755 $386,110
Barrels produced 7,192 10,597
Mcf produced 114,354 143,604
Average price/Bbl $ 11.05 $ 17.70
Average price/Mcf $ 1.52 $ 2.01
As shown in the table above, Net Profits decreased $219,355 (56.8%) for
the three months ended September 30, 1998 as compared to the three months
ended September 30, 1997. Of this decrease, approximately $48,000 and
$56,000, respectively, were related to the decreases in the average prices
of oil and gas sold and approximately $60,000 and $59,000, respectively,
were related to decreases in the volumes of oil and gas sold. The decrease
in Net Profits was partially offset by an increase of approximately $4,000
related to decreases in production expenses incurred by owners of the
Working Interests. Volumes of oil and gas
39
<PAGE>
sold decreased 3,405 barrels and 29,250 Mcf, respectively, for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. The decreases in volumes of oil and gas sold resulted
primarily from the sale of several wells during 1997 and 1998. The
decrease in production expenses resulted primarily from (i) a decrease in
lease operating expenses associated with the decrease in volumes of oil
and gas sold during the three months ended September 30, 1998 as compared
to the three months ended September 30, 1997 and (ii) a decrease in
production taxes associated with the decrease in Net Profits discussed
above, which decreases were partially offset by workover expenses incurred
on one well during the three months ended September 30, 1998 in order to
improve the recovery of reserves. Average oil and gas prices decreased to
$11.05 per barrel and $1.52 per Mcf, respectively, for the three months
ended September 30, 1998 from $17.70 per barrel and $2.01 per Mcf,
respectively, for the three months ended September 30, 1997.
Depletion of Net Profits Interests decreased $26,597 (27.5%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. This decrease resulted primarily from the decreases in
volumes of oil and gas sold during the three months ended September 30,
1998 as compared to the three months ended September 30, 1997. As a
percentage of Net Profits, this expense increased to 42.0% for the three
months ended September 30, 1998 from 25.0% for the three months ended
September 30, 1997. This percentage increase was primarily due to the
decrease in the average prices of oil and gas sold during the three months
ended September 30, 1998 as compared to the three months ended September
30, 1997. General and administrative expenses increased $902 (1.9%) for
the three months ended September 30, 1998 as compared to the three months
ended September 30, 1997. As a percentage of Net Profits, these
expenses increased to 29.1% for the three months ended September 30, 1998
from 12.3% for the three months ended September 30, 1997. This percentage
increase was primarily due to the decrease in Net Profits.
40
<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
Nine Months Ended September 30,
-------------------------------
1998 1997
-------- ----------
Net Profits $764,416 $1,262,543
Barrels produced 26,651 33,015
Mcf produced 363,554 426,031
Average price/Bbl $ 13.96 $ 18.99
Average price/Mcf $ 1.84 $ 2.32
As shown in the table above, Net Profits decreased $498,127 (39.5%) for
the nine months ended September 30, 1998 as compared to the nine months
ended September 30, 1997. Of this decrease, approximately $134,000 and
$175,000, respectively, were related to decreases in the average prices of
oil and gas sold and approximately $121,000 and $144,000, respectively,
were related to decreases in the volumes of oil and gas sold. These
decreases were partially offset by an increase of approximately $76,000
related to decreases in production expenses incurred by the owners of the
Working Interests. Volumes of oil and gas sold decreased 6,364 barrels and
62,477 Mcf, respectively, for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997. The decreases in
volumes of oil and gas sold resulted primarily from the sale of several
wells during 1997 and 1998. Average oil and gas prices decreased to $13.96
per barrel and $1.84 per Mcf, respectively, for the nine months ended
September 30, 1998 from $18.99 per barrel and $2.32 per Mcf, respectively,
for the nine months ended September 30, 1997.
As discussed in Liquidity and Capital Resources above, the P-3 Partnership
sold certain Net Profits Interests during the nine months ended September
30, 1998 and recognized a $603,091 gain on such sales. Similar sales
during the nine months ended September 30, 1997 resulted in the P-3
Partnership recognizing similar gains totaling $147,793.
Depletion of Net Profits Interests decreased $58,317 (20.0%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. This decrease resulted primarily from the decreases in
volumes of oil and gas sold during the nine months ended September 30,
1998 as compared to the nine months ended September 30, 1997. As a
percentage of Net Profits, this expense increased to 30.5% for the nine
months ended September 30, 1998 from 23.1% for the nine months ended
September 30, 1997. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold during the nine months
ended
41
<PAGE>
September 30, 1998 as compared to the nine months ended September 30,
1997. The P-3 Partnership recognized a non-cash charge against earnings of
$1,413,917 during the nine months ended September 30, 1997. Of this
amount, $220,449 was related to the decline in oil and gas prices used to
determine future cash flows from the P-3 Partnership's Net Profits
Interests in proved oil and gas reserves at March 31, 1997 and $1,193,468
was related to the writing-off of Net Profits Interests in unproved
properties. The General Partner determined that it was unlikely that these
unproved properties would be developed due to the low oil and gas prices
received over the prior several years and Partnership Agreement provisions
which limit the P-3 Partnership's level of permissible indirect drilling
activity through its Affiliated Programs. No similar charges were
necessary during the nine months ended September 30, 1998. General and
administrative expenses decreased $2,035 (1.3%) for the nine months
ended September 30, 1998 as compared to the nine months ended September
30, 1997. As a percentage of Net Profits, these expenses increased to
20.2% for the nine months ended September 30, 1998 from 12.4% for the nine
months ended September 30, 1997. This percentage increase was primarily
due to the decrease in Net Profits discussed above.
Cumulative cash distributions to the Limited Partners through September
30, 1998 were $15,587,401 or 91.89% of the Limited Partners' capital
contributions.
P-4 PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997.
Three Months Ended September 30,
--------------------------------
1998 1997
-------- --------
Net Profits $138,857 $288,543
Barrels produced 3,835 4,422
Mcf produced 82,033 119,051
Average price/Bbl $ 11.96 $ 19.20
Average price/Mcf $ 1.99 $ 2.26
As shown in the table above, Net Profits decreased $149,686 (51.9%) for
the three months ended September 30, 1998 as compared to the three months
ended September 30, 1997. Of this decrease, approximately $28,000 and
$22,000, respectively, were related to decreases in the average prices of
oil and gas sold and approximately $84,000 was related to a decrease in
the volumes of gas sold. Volumes of oil and gas sold decreased 587 barrels
and 37,018 Mcf, respectively, for the three months ended September 30,
1998
42
<PAGE>
as compared to the three months ended September 30, 1997. The decrease in
volumes of oil sold resulted primarily from a normal decline in production
due to diminishing reserves on two significant wells. The decrease in
volumes of gas sold resulted primarily from (i) the sale of several wells
during 1997 and 1998, (ii) a normal decline in production due to
diminishing reserves on one significant well, and (iii) a negative prior
period volume adjustment made by a purchaser on one significant well
during the three months ended September 30, 1998. Production expenses
increased approximately $5,000 primarily due to workover expenses incurred
on one well during the three months ended September 30, 1998 in order to
improve the recovery of reserves, partially offset by (i) a decrease in
lease operating expenses associated with the decrease in volumes of oil
and gas sold during the three months ended September 30, 1998 as compared
to the three months ended September 30, 1997 and (ii) a decrease in
production taxes associated with the decrease in Net Profits discussed
above. Average oil and gas prices decreased to $11.96 per barrel and $1.99
per Mcf, respectively, for the three months ended September 30, 1998 from
$19.20 per barrel and $2.26 per Mcf, respectively, for the three months
ended September 30, 1997.
Depletion of Net Profits Interests decreased $42,852 (44.0%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. This decrease resulted primarily from (i) the
decreases in volumes of oil and gas sold during the three months ended
September 30, 1998 as compared to the three months ended September 30,
1997 and (ii) upward revisions in the estimates of remaining oil and gas
reserves at December 31, 1997. As a percentage of Net Profits, this
expense increased to 39.2% for the three months ended September 30, 1998
from 33.7% for the three months ended September 30, 1997. This percentage
increase was primarily due to the decreases in the average prices of oil
and gas sold during the three months ended September 30, 1998 as compared
to the three months ended September 30, 1997.
General and administrative expenses increased $615 (1.7%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. As a percentage of Net Profits, these expenses
increased to 26.0% for the three months ended September 30, 1998 from
12.3% for the three months ended September 30, 1997. This percentage
increase was primarily due to the decrease in Net Profits discussed above.
43
<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
Nine Months Ended September 30,
-------------------------------
1998 1997
-------- ----------
Net Profits $557,503 $1,013,278
Barrels produced 13,111 14,933
Mcf produced 280,161 398,350
Average price/Bbl $ 13.03 $ 20.01
Average price/Mcf $ 2.16 $ 2.46
As shown in the table above, Net Profits decreased $455,775 (45.0%) for
the nine months ended September 30, 1998 as compared to the nine months
ended September 30, 1997. Of this decrease, approximately $92,000 and
$84,000, respectively, were related to decreases in the average prices of
oil and gas sold and approximately $291,000 was related to a decrease in
the volumes of gas sold. The decrease In Net Profits was partially offset
by an increase of approximately $47,000 related to decreases in production
expenses incurred by the owners of the Working Interests. Volumes of oil
and gas sold decreased 1,822 barrels and 118,189 Mcf, respectively, for
the nine months ended September 30, 1998 as compared to the nine months
ended September 30, 1997. The decrease in volumes of oil sold resulted
primarily from a normal decline in production due to diminishing reserves
on two significant wells. The decrease in volumes of gas sold resulted
primarily from (i) the sale of several wells during 1997 and 1998 and (ii)
a normal decline in production due to diminishing reserves on two
significant wells. Average oil and gas prices decreased to $13.03 per
barrel and $2.16 per Mcf, respectively, for the nine months ended
September 30, 1998 from $20.01 per barrel and $2.46 per Mcf, respectively,
for the nine months ended September 30, 1997.
Depletion of Net Profits Interests decreased $140,123 (43.0%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. This decrease resulted primarily from (i) the
decreases in volumes of oil and gas sold during the nine months ended
September 30, 1998 as compared to the nine months ended September 30, 1997
and (ii) upward revisions in the estimates of remaining oil and gas
reserves at December 31, 1997. As a percentage of Net Profits, this
expense increased to 33.4% for the nine months ended September 30, 1998
from 32.2% for the nine months ended September 30, 1997.
44
<PAGE>
The P-4 Partnership recognized a non-cash charge against earnings of
$752,388 during the nine months ended September 30, 1997. Of this amount,
$84,059 was related to the decline in oil and gas prices used to determine
future cash flows from the P-4 Partnership's Net Profits Interests in
proved oil and gas reserves at March 31, 1997 and $668,329 was related to
the writing-off of Net Profits Interests in unproved properties. The
General Partner determined that it was unlikely that these unproved
properties would be developed due to the low oil and gas prices received
over the prior several years and Partnership Agreement provisions which
limit the P-4 Partnership's level of permissible indirect drilling
activity through its Affiliated Programs. No similar charges were
necessary during the nine months ended September 30, 1998.
General and administrative expenses increased $620 (0.5%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. As a percentage of Net Profits, these expenses
increased to 20.6% for the nine months ended September 30, 1998 from 11.3%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decrease in Net Profits discussed above.
Cumulative cash distributions to the Limited Partners through September
30, 1998 were $12,045,945 or 95.37% of the Limited Partners' capital
contributions.
P-5 PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997.
Three Months Ended September 30,
--------------------------------
1998 1997
-------- --------
Net Profits $189,220 $248,233
Barrels produced 1,771 1,868
Mcf produced 141,478 124,114
Average price/Bbl $ 15.53 $ 19.37
Average price/Mcf $ 1.64 $ 2.20
As shown in the table above, Net Profits decreased $59,013 (23.8%) for the
three months ended September 30, 1998 as compared to the three months
ended September 30, 1997. Of this decrease, approximately $7,000 and
$80,000, respectively, were related to decreases in the average prices of
oil and gas sold and approximately $9,000 was related to an increase in
the production expenses incurred by the owners of the Working Interests.
These decreases were partially offset by an increase of approximately
$38,000 related to an
45
<PAGE>
increase in the volumes of gas sold. Volumes of oil sold decreased 97
barrels, while volumes of gas sold increased 17,364 Mcf for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. The increase in volumes of gas sold resulted primarily
from the successful recompletion of one well to a new zone in 1998.
Average oil and gas prices decreased to $15.53 per barrel and $1.64 per
Mcf, respectively, for the three months ended September 30, 1998 from
$19.37 per barrel and $2.20 per Mcf, respectively, for the three months
ended September 30, 1997.
Depletion of Net Profits Interests decreased $6,770 (9.4%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. As a percentage of Net Profits, this expense increased
to 34.6% for the three months ended September 30, 1998 from 29.1% for the
three months ended September 30, 1997. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold
during the three months ended September 30, 1998 as compared to the three
months ended September 30, 1997.
General and administrative expenses increased $579 (1.7%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. As a percentage of Net Profits, these expenses
increased to 17.9% for the three months ended September 30, 1998 from
13.4% for the three months ended September 30, 1997. This percentage
increase was primarily due to the decrease in Net Profits discussed above.
NINE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
Nine Months Ended September 30,
-------------------------------
1998 1997
-------- --------
Net Profits $619,716 $750,913
Barrels produced 5,171 6,053
Mcf produced 399,271 383,895
Average price/Bbl $ 15.17 $ 20.68
Average price/Mcf $ 1.87 $ 2.16
As shown in the table above, Net Profits decreased $131,197 (17.5%) for
the nine months ended September 30, 1998 as compared to the nine months
ended September 30, 1997. Of this decrease, approximately $28,000 and
$116,000, respectively, were related to decreases in the average prices of
oil and gas sold, approximately $18,000 was related to a decrease in the
volumes of oil sold, and approximately $2,000 was related to increases in
production expenses incurred by the owners of the Working Interests. These
decreases were partially offset by an increase of approximately $33,000
46
<PAGE>
related to an increase in the volumes of gas sold. Volumes of oil sold
decreased 882 barrels while volumes of gas sold increased 15,376 Mcf for
the nine months ended September 30, 1998 as compared to the nine months
ended September 30, 1997. The decrease in volumes of oil sold resulted
primarily from (i) the sale of several wells during 1997 and 1998 and (ii)
normal declines in production due to diminishing reserves on two wells.
The increase in production expenses resulted primarily from (i) an
increase in lease operating expenses associated with the increase in
volumes of gas sold during the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997, (ii) an increase in
ad valorem taxes on one well during the nine months ended September 30,
1998 as compared to the nine months ended September 30, 1997, and (iii)
subsurface repairs incurred on one well during the nine months ended
September 30, 1998, which increases were partially offset by a decrease in
production taxes associated with the decrease in Net Profits discussed
above. Average oil and gas prices decreased to $15.17 per barrel and $1.87
per Mcf, respectively, for the nine months ended September 30, 1998 from
$20.68 per barrel and $2.16 per Mcf, respectively, for the nine months
ended September 30, 1997.
As discussed in Liquidity and Capital resources above, the P-5 Partnership
sold certain Net Profits Interests in oil and gas properties during the
nine months ended September 30, 1998 and recognized a $340,817 gain on
such sales. Similar sales during the nine months ended September 30, 1997
resulted in the P-5 Partnership recognizing similar gains totaling
$68,845.
Depletion of Net Profits Interests decreased $39,088 (17.4%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. This decrease resulted primarily from upward revisions
in the estimates of remaining oil and gas reserves at December 31, 1997.
As a percentage of Net Profits, this expense remained relatively constant
at 29.9% for the nine months ended September 30, 1998 and 29.8% for the
nine months ended September 30, 1997. Any percentage increase that
resulted primarily from the decreases in the average prices of oil and gas
sold during the nine months ended September 30, 1998 as compared to the
nine months ended September 30, 1997 was substantially offset by the
dollar decrease in depletion of Net Profits Interests.
The P-5 Partnership recognized a non-cash charge against earnings of
$1,018,068 during the nine months ended September 30, 1997. Of this
amount, $122,458 was related to the decline in oil and gas prices used to
determine future cash flows from the P-5 Partnership's Net Profits
Interests in proved oil and gas reserves at September 30, 1997 and
$895,610 was related to the writing-off of Net Profits Interests in
unproved properties. The General Partner
47
<PAGE>
determined that it was unlikely that these unproved properties would be
developed due to the low oil and gas prices received over the prior
several years and Partnership Agreement provisions which limit the P-5
Partnership's level of permissible indirect drilling activity through its
Affiliated Programs. No similar charges were necessary during the nine
months ended September 30, 1998.
General and administrative expenses decreased $2,217 (2.0%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. As a percentage of Net Profits, these expenses
increased to 17.4% for the nine months ended September 30, 1998 from 14.6%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decrease in Net Profits discussed above discussed
above.
Cumulative cash distributions to the Limited Partners through September
30, 1998 were $7,244,759 or 61.16% of the Limited Partners' capital
contributions.
P-6 PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997.
Three Months Ended September 30,
--------------------------------
1998 1997
-------- --------
Net Profits $256,471 $434,139
Barrels produced 3,172 5,132
Mcf produced 249,092 235,218
Average price/Bbl $ 14.45 $ 17.82
Average price/Mcf $ 1.61 $ 2.02
As shown in the table above, Net Profits decreased $177,668 (40.9%) for
the three months ended September 30, 1998 as compared to the three months
ended September 30, 1997. Of this decrease, approximately $102,000 was
related to a decrease in the average price of gas sold, approximately
$35,000 was related to a decrease in the volumes of oil sold, and
approximately $58,000 was related to an increase in production expenses
incurred by the owners of the Working Interests. The decreases in Net
Profits were partially offset by an increase of approximately $28,000
related to an increase in the volumes of gas sold. Volumes of oil sold
decreased 1,960 barrels while volumes of gas sold increased 13,874 Mcf for
the three months ended September 30, 1998 as compared to the three months
ended September 30, 1997. The decrease in volumes of oil sold resulted
primarily from normal declines in production due to diminishing reserves
on several wells. The increase in production expenses resulted primarily
from an overall increase in repair and maintenance
48
<PAGE>
expenses during the three months ended September 30, 1998 as compared to
the three months ended September 30, 1997. Average oil and gas prices
decreased to $14.45 per barrel and $1.61 per Mcf, respectively, for the
three months ended September 30, 1998 from $17.82 per barrel and $2.02 per
Mcf, respectively, for the three months ended September 30, 1997.
Depletion of Net Profits Interests decreased $44,790 (28.8%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. This decrease resulted primarily from upward revisions
in the estimates of remaining oil and gas reserves at December 31, 1997.
As a percentage of Net Profits, this expense increased to 43.2% for the
three months ended September 30, 1998 from 35.8% for the three months
ended September 30, 1997. This percentage increase was primarily due to
the decreases in the average prices of oil and gas sold for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997.
General and administrative expenses increased $700 (1.7%) for the three
months ended September 30, 1998 as compared to the three months ended
September 30, 1997. As a percentage of Net Profits, these expenses
increased to 15.9% for the three months ended September 30, 1998 from 9.3%
for the three months ended September 30, 1997. This percentage increase
was primarily due to the decrease in Net Profits.
NINE MONTHS ENDED SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997.
Nine Months Ended September 30,
-------------------------------
1998 1997
-------- ----------
Net Profits $873,844 $1,386,099
Barrels produced 10,069 13,951
Mcf produced 687,862 740,453
Average price/Bbl $ 14.21 $ 19.76
Average price/Mcf $ 1.81 $ 2.21
As shown in the table above, Net Profits decreased $512,255 (37.0%) for
the nine months ended September 30, 1998 as compared to the nine months
ended September 30, 1997. Of this decrease, approximately $56,000 and
$276,000, respectively, were related to decreases in the average prices of
oil and gas sold and approximately $77,000 and $116,000, respectively,
were related to decreases in volumes of oil and gas sold. Volumes of oil
and gas sold decreased 3,882 barrels and 52,591 Mcf, respectively, for the
nine months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. The decrease in volumes of oil sold resulted primarily
from normal declines in production due to diminishing reserves on several
wells. Average oil and gas
49
<PAGE>
prices decreased to $14.21 per barrel and $1.81 per Mcf, respectively, for
the nine months ended September 30, 1998 from $19.76 per barrel and $2.21
per Mcf, respectively, for the nine months ended September 30, 1997.
As discussed in Liquidity and Capital Resources above, the P-6 Partnership
sold certain Net Profits Interests during the nine months ended September
30, 1998 and recognized a $133,104 gain on such sales. Similar sales
during the nine months ended September 30, 1997 resulted in the P-6
Partnership recognizing gains totaling $31,516.
Depletion of Net Profits Interests decreased $172,846 (35.9%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. This decrease resulted primarily from (i) the
decreases in volumes of oil and gas sold during the nine months ended
September 30, 1998 as compared to the nine months ended September 30, 1997
and (ii) upward revisions in the estimates of remaining oil and gas
reserves at December 31, 1997. As a percentage of Net Profits, this
expense remained relatively constant at 35.4% for the nine months ended
September 30, 1998 and 34.8% for the nine months ended September 30, 1997.
The P-6 Partnership recognized a non-cash charge against earnings of
$898,584 during the nine months ended September 30, 1997. Of this amount,
$444,990 was related to the decline in oil and gas prices used to
determine future cash flows from the P-6 Partnership's Net Profits
Interests in proved oil and gas reserves at March 31, 1997 and $453,594
was related to the writing-off of Net Profits Interests in unproved
properties. The General Partner determined that it was unlikely that these
unproved properties would be developed due to the low oil and gas prices
received over the prior several years and Partnership Agreement provisions
which limit the P-6 Partnership's level of permissible indirect drilling
activity through its Affiliated Programs. No similar charges were
necessary during the nine months ended September 30, 1998.
General and administrative expenses decreased $2,732 (2.1%) for the nine
months ended September 30, 1998 as compared to the nine months ended
September 30, 1997. As a percentage of Net Profits, these expenses
increased to 14.9% for the nine months ended September 30, 1998 from 9.6%
for the nine months ended September 30, 1997. This percentage increase was
primarily due to the decrease in Net Profits.
Cumulative cash distributions to the Limited Partners through September
30, 1998 were $9,530,248 or 66.63% of the Limited Partners' capital
contributions.
50
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule containing summary financial
information extracted from the P-1 Partnership's
financial statements as of September 30, 1998 and for
the nine months ended September 30, 1998, filed
herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the P-2 Partnership's
financial statements as of September 30, 1998 and for
the nine months ended September 30, 1998, filed
herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the P-3 Partnership's
financial statements as of September 30, 1998 and for
the nine months ended September 30, 1998, filed
herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the P-4 Partnership's
financial statements as of September 30, 1998 and for
the nine months ended September 30, 1998, filed
herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the P-5 Partnership's
financial statements as of September 30, 1998 and for
the nine months ended September 30, 1998, filed
herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the P-6 Partnership's
financial statements as of September 30, 1998 and for
the nine months ended September 30, 1998, filed
herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
None.
51
<PAGE>
SIGNATURES
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.
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-1
LIMITED PARTNERSHIP
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME P-2
LIMITED PARTNERSHIP
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED
PARTNERSHIP P-3
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED
PARTNERSHIP P-4
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED
PARTNERSHIP P-5
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED
PARTNERSHIP P-6
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: November 16, 1998 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: November 16, 1998 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
52
<PAGE>
INDEX TO EXHIBITS
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial information
extracted from the Geodyne Institutional/Pension Energy Income P-1
Limited Partnership's financial statements as of September 30, 1998
and for the nine months ended September 30, 1998, filed herewith.
27.2 Financial Data Schedule containing summary financial information
extracted from the Geodyne Institutional/Pension Energy Income P-2
Limited Partnership's financial statements as of September 30, 1998
and for the nine months ended September 30, 1998, filed herewith.
27.3 Financial Data Schedule containing summary financial information
extracted from the Geodyne Institutional/Pension Energy Income
Limited Partnership P-3's financial statements as of September 30,
1998 and for the nine months ended September 30, 1998, filed
herewith.
27.4 Financial Data Schedule containing summary financial information
extracted from the Geodyne Institutional/Pension Energy Income
Limited Partnership P-4's financial statements as of September 30,
1998 and for the nine months ended September 30, 1998, filed
herewith.
27.5 Financial Data Schedule containing summary financial information
extracted from the Geodyne Institutional/Pension Energy Income
Limited Partnership P-5's financial statements as of September 30,
1998 and for the nine months ended September 30, 1998, filed
herewith.
27.6 Financial Data Schedule containing summary financial information
extracted from the Geodyne Institutional/Pension Energy Income
Limited Partnership P-6's financial statements as of September 30,
1998 and for the nine months ended September 30, 1998, filed
herewith.
All other exhibits are omitted as inapplicable.
53
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000850427
<NAME> GEODYNE INST/PENSION ENERGY INCOME P-1 LTD PSHP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 134,319
<SECURITIES> 0
<RECEIVABLES> 91,997
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 226,316
<PP&E> 6,987,171
<DEPRECIATION> 5,772,003
<TOTAL-ASSETS> 1,441,484
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,441,484
<TOTAL-LIABILITY-AND-EQUITY> 1,441,484
<SALES> 537,453
<TOTAL-REVENUES> 1,021,926
<CGS> 0
<TOTAL-COSTS> 260,144
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 761,782
<INCOME-TAX> 0
<INCOME-CONTINUING> 761,782
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 761,782
<EPS-PRIMARY> 6.60
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000850428
<NAME> GEODYNE INST/PENSION ENERGY INCOME P-2 LTD PSHP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 104,934
<SECURITIES> 0
<RECEIVABLES> 72,603
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 177,537
<PP&E> 5,605,467
<DEPRECIATION> 4,637,454
<TOTAL-ASSETS> 1,145,550
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,145,550
<TOTAL-LIABILITY-AND-EQUITY> 1,145,550
<SALES> 410,191
<TOTAL-REVENUES> 671,453
<CGS> 0
<TOTAL-COSTS> 207,325
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 464,128
<INCOME-TAX> 0
<INCOME-CONTINUING> 464,128
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 464,128
<EPS-PRIMARY> 4.84
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000854066
<NAME> GEODYNE INST/PENSION ENERGY INCOME LTD PSHP P-3
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 196,106
<SECURITIES> 0
<RECEIVABLES> 137,904
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 334,010
<PP&E> 10,598,092
<DEPRECIATION> 8,663,057
<TOTAL-ASSETS> 2,269,045
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,269,045
<TOTAL-LIABILITY-AND-EQUITY> 2,269,045
<SALES> 764,416
<TOTAL-REVENUES> 1,382,005
<CGS> 0
<TOTAL-COSTS> 387,221
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 994,784
<INCOME-TAX> 0
<INCOME-CONTINUING> 994,784
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 994,784
<EPS-PRIMARY> 5.52
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000860744
<NAME> GEODYNE INST/PENSION ENERGY INCOME LTD PSHP P-4
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 164,373
<SECURITIES> 0
<RECEIVABLES> 173,447
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 337,820
<PP&E> 8,180,022
<DEPRECIATION> 7,081,838
<TOTAL-ASSETS> 1,436,004
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,436,004
<TOTAL-LIABILITY-AND-EQUITY> 1,436,004
<SALES> 557,503
<TOTAL-REVENUES> 576,388
<CGS> 0
<TOTAL-COSTS> 300,774
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 275,614
<INCOME-TAX> 0
<INCOME-CONTINUING> 275,614
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 275,614
<EPS-PRIMARY> 2.02
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000863832
<NAME> GEODYNE INST/PENSION ENERGY INCOME LTD PSHP P-5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 203,806
<SECURITIES> 0
<RECEIVABLES> 77,073
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 280,879
<PP&E> 9,835,071
<DEPRECIATION> 8,752,932
<TOTAL-ASSETS> 1,363,018
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,363,018
<TOTAL-LIABILITY-AND-EQUITY> 1,363,018
<SALES> 619,716
<TOTAL-REVENUES> 968,834
<CGS> 0
<TOTAL-COSTS> 292,581
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 676,253
<INCOME-TAX> 0
<INCOME-CONTINUING> 676,253
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 676,253
<EPS-PRIMARY> 5.36
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000869801
<NAME> GEODYNE INST/PENSION ENERGY INCOME LTD PSHP P-6
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 253,745
<SECURITIES> 0
<RECEIVABLES> 128,250
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 381,995
<PP&E> 11,957,968
<DEPRECIATION> 9,782,739
<TOTAL-ASSETS> 2,557,224
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,557,224
<TOTAL-LIABILITY-AND-EQUITY> 2,557,224
<SALES> 873,844
<TOTAL-REVENUES> 1,017,308
<CGS> 0
<TOTAL-COSTS> 439,447
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 577,861
<INCOME-TAX> 0
<INCOME-CONTINUING> 577,861
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 577,861
<EPS-PRIMARY> 3.75
<EPS-DILUTED> 0
</TABLE>
