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 June 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
June 30, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 601,195 $ 503,622
Accounts receivable:
Net Profits 132,556 164,644
---------- ----------
Total current assets $ 733,751 $ 668,266
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,262,232 1,408,420
---------- ----------
$1,995,983 $2,076,686
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 92,220) ($ 87,415)
Limited Partners, issued and
outstanding, 108,074 units 2,088,203 2,164,101
---------- ----------
Total Partners' capital $1,995,983 $2,076,686
---------- ----------
$1,995,983 $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 JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- --------
REVENUES:
Net Profits $203,439 $317,208
Interest and other income 2,575 2,794
Gain on sale of Net Profits
Interests 392,604 127,385
-------- --------
$598,618 $447,387
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 54,113 $ 64,546
General and administrative
(Note 2) 29,928 34,658
-------- --------
$ 84,041 $ 99,204
-------- --------
NET INCOME $514,577 $348,183
======== ========
GENERAL PARTNER - NET INCOME $ 27,765 $ 19,852
======== ========
LIMITED PARTNERS - NET INCOME $486,812 $328,331
======== ========
NET INCOME per unit $ 4.50 $ 3.04
======== ========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- ----------
REVENUES:
Net Profits $422,567 $ 597,105
Interest and other income 6,225 5,056
Gain on sale of Net Profits
Interests 475,798 127,385
-------- ----------
$904,590 $ 729,546
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $113,848 $ 125,229
Impairment provision - 902,042
General and administrative
(Note 2) 67,221 69,422
-------- ----------
$181,069 $1,096,693
-------- ----------
NET INCOME (LOSS) $723,521 ($ 367,147)
======== ==========
GENERAL PARTNER - NET INCOME $ 40,419 $ 22,481
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $683,102 ($ 389,628)
======== ==========
NET INCOME (LOSS) per unit $ 6.32 ($ 3.61)
======== ==========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $723,521 ($367,147)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 113,848 125,229
Impairment provision - 902,042
Gain on sale of Net Profits
Interests ( 475,798) ( 127,385)
Decrease in accounts receivable -
Net Profits 32,088 59,383
Increase in accounts receivable -
General Partner - ( 2,306)
-------- --------
Net cash provided by operating
activities $393,659 $589,816
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 11,147) ($ 13,262)
Proceeds from sale of Net Profits
Interests 519,285 180,853
-------- --------
Net cash provided by investing
activities $508,138 $167,591
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($804,224) ($606,249)
-------- --------
Net cash used by financing activities ($804,224) ($606,249)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 97,573 $151,158
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 503,622 293,296
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $601,195 $444,454
======== ========
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
June 30, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 418,892 $ 369,191
Accounts receivable:
Net Profits 104,589 135,331
---------- ----------
Total current assets $ 523,481 $ 504,522
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,004,553 1,182,230
---------- ----------
$1,528,034 $1,686,752
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 79,959) ($ 72,438)
Limited Partners, issued and
outstanding, 90,094 units 1,607,993 1,759,190
---------- ----------
Total Partners' capital $1,528,034 $1,686,752
---------- ----------
$1,528,034 $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 JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ---------
REVENUES:
Net Profits $153,230 $178,224
Interest and other income 1,925 2,202
Gain on sale of Net Profits
Interests 196,830 80,091
-------- --------
$351,985 $260,517
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 41,700 $ 53,991
General and administrative
(Note 2) 25,031 28,826
-------- --------
$ 66,731 $ 82,817
-------- --------
NET INCOME $285,254 $177,700
======== ========
GENERAL PARTNER - NET INCOME $ 15,834 $ 10,935
======== ========
LIMITED PARTNERS - NET INCOME $269,420 $166,765
======== ========
NET INCOME per unit $ 2.99 $ 1.85
======== ========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ---------
REVENUES:
Net Profits $321,188 $469,338
Interest and other income 4,647 3,910
Gain on sale of Net Profits
Interests 255,015 80,091
-------- --------
$580,850 $553,339
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 87,775 $104,979
Impairment provision - 727,893
General and administrative
(Note 2) 56,147 57,719
-------- --------
$143,922 $890,591
-------- --------
NET INCOME (LOSS) $436,928 ($337,252)
======== ========
GENERAL PARTNER - NET INCOME $ 25,125 $ 16,257
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $411,803 ($353,509)
======== ========
NET INCOME (LOSS) per unit $ 4.57 ($ 3.92)
======== ========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $436,928 ($337,252)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 87,775 104,979
Impairment provision - 727,893
Gain on sale of Net Profits
Interests ( 255,015) ( 80,091)
Decrease in accounts receivable -
Net Profits 30,742 44,933
Decrease in accounts receivable -
General Partner - 6,802
-------- --------
Net cash provided by operating
activities $300,430 $467,264
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 15,276) ($ 8,677)
Proceeds from sale of Net Profits
Interests 360,193 168,805
-------- --------
Net cash provided by investing
activities $344,917 $160,128
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($595,646) ($476,166)
-------- --------
Net cash used by financing activities ($595,646) ($476,166)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 49,701 $151,226
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 369,191 222,506
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $418,892 $373,732
======== ========
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
June 30, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 772,210 $ 685,628
Accounts receivable:
Net Profits 197,418 254,470
---------- ----------
Total current assets $ 969,628 $ 940,098
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 2,003,124 2,196,444
---------- ----------
$2,972,752 $3,136,542
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 144,427) ($ 137,258)
Limited Partners, issued and
outstanding, 169,637 units 3,117,179 3,273,800
---------- ----------
Total Partners' capital $2,972,752 $3,136,542
---------- ----------
$2,972,752 $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 JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- ---------
REVENUES:
Net Profits $284,321 $338,563
Interest and other income 3,730 4,215
Gain on sale Net Profits
Interests 497,106 142,486
-------- --------
$785,157 $485,264
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 77,390 $100,187
General and administrative
(Note 2) 47,130 54,254
-------- --------
$124,520 $154,441
-------- --------
NET INCOME $660,637 $330,823
======== ========
GENERAL PARTNER - NET INCOME $ 35,941 $ 20,338
======== ========
LIMITED PARTNERS - NET INCOME $624,696 $310,485
======== ========
NET INCOME per unit $ 3.68 $ 1.83
======== ========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Net Profits $ 597,661 $ 876,433
Interest and other income 8,872 7,461
Gain on sale Net Profits
Interests 605,649 142,486
---------- ----------
$1,212,182 $1,026,380
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 162,849 $ 194,569
Impairment provision - 1,413,917
General and administrative
(Note 2) 105,702 108,639
---------- ----------
$ 268,551 $1,717,125
---------- ----------
NET INCOME (LOSS) $ 943,631 ($ 690,745)
========== ==========
GENERAL PARTNER - NET INCOME $ 53,252 $ 29,429
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 890,379 ($ 720,174)
========== ==========
NET INCOME (LOSS) per unit $ 5.25 ($ 4.25)
========== ==========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 943,631 ($ 690,745)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 162,849 194,569
Impairment provision - 1,413,917
Gain on sale of Net Profits
Interests ( 605,649) ( 142,486)
Decrease in accounts receivable -
Net Profits 57,052 82,287
Decrease in accounts receivable -
General Partner - 13,568
---------- ----------
Net cash provided by operating
activities $ 557,883 $ 871,110
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 29,131) ($ 15,966)
Proceeds from sale of Net Profits
Interests 665,251 327,690
---------- ----------
Net cash provided by investing
activities $ 636,120 $ 311,724
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,107,421) ($ 885,178)
---------- ----------
Net cash used by financing activities ($1,107,421) ($ 885,178)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 86,582 $ 297,656
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 685,628 415,354
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 772,210 $ 713,010
========== ==========
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
June 30, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 173,407 $ 243,903
Accounts receivable:
Net Profits 215,428 301,060
---------- ----------
Total current assets $ 388,835 $ 544,963
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,153,343 1,282,329
---------- ----------
$1,542,178 $1,827,292
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 100,454) ($ 94,799)
Limited Partners, issued and
outstanding, 126,306 units 1,642,632 1,922,091
---------- ----------
Total Partners' capital $1,542,178 $1,827,292
---------- ----------
$1,542,178 $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 JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- --------
REVENUES:
Net Profits $178,254 $317,362
Interest and other income 2,296 3,920
Gain on sale of Net
Profits Interests 8,004 4,760
-------- --------
$188,554 $326,042
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 62,151 $111,787
General and administrative
(Note 2) 35,086 40,382
-------- --------
$ 97,237 $152,169
-------- --------
NET INCOME $ 91,317 $173,873
======== ========
GENERAL PARTNER - NET INCOME $ 6,937 $ 12,970
======== ========
LIMITED PARTNERS - NET INCOME $ 84,380 $160,903
======== ========
NET INCOME per unit $ .67 $ 1.27
======== ========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
REVENUES:
Net Profits $418,646 $ 724,735
Interest and other income 5,157 6,640
Gain (loss) on sale of Net
Profits Interests 12,252 ( 5,494)
-------- ----------
$436,055 $ 725,881
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $131,544 $ 228,815
Impairment provision - 752,388
General and administrative
(Note 2) 78,674 78,669
-------- ----------
$210,218 $1,059,872
-------- ----------
NET INCOME (LOSS) $225,837 ($ 333,991)
======== ==========
GENERAL PARTNER - NET INCOME $ 16,296 $ 22,217
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $209,541 ($ 356,208)
======== ==========
NET INCOME (LOSS) per unit $ 1.66 ($ 2.82)
======== ==========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $225,837 ($333,991)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 131,544 228,815
Impairment provision - 752,388
(Gain) loss on sale of Net
Profits Interests ( 12,252) 5,494
Decrease in accounts receivable -
Net Profits 85,632 83,016
-------- --------
Net cash provided by operating
activities $430,761 $735,722
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 4,664) $ -
Proceeds from sale of Net Profits
Interests 14,358 239,418
-------- --------
Net cash provided by investing
activities $ 9,694 $239,418
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($510,951) ($788,079)
-------- --------
Net cash used by financing activities ($510,951) ($788,079)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 70,496) $187,061
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 243,903 345,876
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $173,407 $532,937
======== ========
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
June 30, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 371,007 $ 228,750
Accounts receivable:
Net Profits 102,699 134,968
---------- ----------
Total current assets $ 473,706 $ 363,718
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,151,964 1,257,789
---------- ----------
$1,625,670 $1,621,507
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 78,279) ($ 74,683)
Limited Partners, issued and
outstanding, 118,449 units 1,703,949 1,696,190
---------- ----------
Total Partners' capital $1,625,670 $1,621,507
---------- ----------
$1,625,670 $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 JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
REVENUES:
Net Profits $182,110 $161,365
Interest and other income 2,770 2,759
Gain on sale of Net Profits
Interests 203,390 54,195
-------- --------
$388,270 $218,319
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 61,427 $ 66,428
General and administrative
(Note 2) 32,771 37,896
-------- --------
$ 94,198 $104,324
-------- --------
NET INCOME $294,072 $113,995
======== ========
GENERAL PARTNER - NET INCOME $ 17,022 $ 8,219
======== ========
LIMITED PARTNERS - NET INCOME $277,050 $105,776
======== ========
NET INCOME per unit $ 2.34 $ .89
======== ========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
REVENUES:
Net Profits $430,496 $ 502,680
Interest and other income 5,199 4,758
Gain on sale of Net Profits
Interests 340,014 54,195
-------- ----------
$775,709 $ 561,633
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $119,624 $ 151,942
Impairment provision - 1,018,068
General and administrative
(Note 2) 73,681 76,477
-------- ----------
$193,305 $1,246,487
-------- ----------
NET INCOME (LOSS) $582,404 ($ 684,854)
======== ==========
GENERAL PARTNER - NET INCOME $ 33,645 $ 12,320
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $548,759 ($ 697,174)
======== ==========
NET INCOME (LOSS) per unit $ 4.63 ($ 5.89)
======== ==========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $582,404 ($ 684,854)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 119,624 151,942
Impairment provision - 1,018,068
Gain on sale of Net Profits
Interests ( 340,014) ( 54,195)
Decrease in accounts receivable -
Net Profits 32,269 127,508
-------- ----------
Net cash provided by operating
activities $394,283 $ 558,469
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 36,915) $ -
Proceeds from sale of Net Profits
Interests 363,130 66,494
-------- ----------
Net cash provided by investing
activities $326,215 $ 66,494
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($578,241) ($ 610,849)
-------- ----------
Net cash used by financing activities ($578,241) ($ 610,849)
-------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $142,257 $ 14,114
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 228,750 247,540
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $371,007 $ 261,654
======== ==========
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
June 30, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 310,808 $ 362,957
Accounts receivable:
Net Profits 166,775 291,352
---------- ----------
Total current assets $ 477,583 $ 654,309
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 2,289,654 2,457,809
---------- ----------
$2,767,237 $3,112,118
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 104,861) ($ 96,514)
Limited Partners, issued and
outstanding, 143,041 units 2,872,098 3,208,632
---------- ----------
Total Partners' capital $2,767,237 $3,112,118
---------- ----------
$2,767,237 $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 JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- ---------
REVENUES:
Net Profits $279,345 $407,320
Interest and other income 3,418 5,272
Gain on sale of Net Profits
Interests 68,179 21,938
-------- --------
$350,942 $434,530
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $101,519 $173,910
General and administrative
(Note 2) 39,872 45,041
-------- --------
$141,391 $218,951
-------- --------
NET INCOME $209,551 $215,579
======== ========
GENERAL PARTNER - NET INCOME $ 14,367 $ 17,471
======== ========
LIMITED PARTNERS - NET INCOME $195,184 $198,108
======== ========
NET INCOME per unit $ 1.37 $ 1.39
======== ========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- ----------
REVENUES:
Net Profits $617,373 $ 951,960
Interest and other income 7,435 8,451
Gain on sale of Net Profits
Interests 134,525 25,958
-------- ----------
$759,333 $ 986,369
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $198,462 $ 326,518
Impairment provision - 898,584
General and administrative
(Note 2) 89,258 92,690
-------- ----------
$287,720 $1,317,792
-------- ----------
NET INCOME (LOSS) $471,613 ($ 331,423)
======== ==========
GENERAL PARTNER - NET INCOME $ 31,147 $ 32,010
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $440,466 ($ 363,433)
======== ==========
NET INCOME (LOSS) per unit $ 3.08 ($ 2.54)
======== ==========
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
1998 1997
--------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $471,613 ($ 331,423)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of Net Profits
Interests 198,462 326,518
Impairment provision - 898,584
Gain on sale of Net Profits
Interests ( 134,525) ( 25,958)
Decrease in accounts receivable -
Net Profits 124,577 183,504
Increase in accounts receivable -
General Partner - ( 5,854)
-------- ----------
Net cash provided by operating
activities $660,127 $1,045,371
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 41,219) ($ 7,789)
Proceeds from sale of Net Profits
Interests 145,437 31,288
-------- ----------
Net cash provided by investing
activities $104,218 $ 23,499
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($816,494) ($1,013,831)
-------- ----------
Net cash used by financing activities ($816,494) ($1,013,831)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 52,149) $ 55,039
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 362,957 319,699
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $310,808 $ 374,738
======== ==========
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
JUNE 30, 1998
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of June 30, 1998, combined statements of
operations for the three and six months ended June 30, 1998 and 1997, and
combined statements of cash flows for the six months ended June 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 June 30, 1998, the combined results of operations for the three and six
months ended June 30, 1998 and 1997, and the combined cash flows for the
six months ended June 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 June 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 six
27
<PAGE>
months ended June 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 six months ended June 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 June 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 $1,488 $28,440
P-2 1,322 23,709
P-3 2,490 44,640
P-4 1,846 33,240
P-5 1,601 31,170
P-6 2,231 37,641
During the six months ended June 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 $10,341 $56,880
P-2 8,729 47,418
P-3 16,422 89,280
P-4 12,194 66,480
P-5 11,341 62,340
P-6 13,976 75,282
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 June 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 six months ended June
30, 1998 include proceeds from the sale of Net Profits Interests during
the six months ended June 30, 1998. These proceeds received during the
first quarter were included in Partnerships' cash distributions paid
during May 1998, and the proceeds received during the second quarter will
be included in the Partnerships' cash distributions to be paid in August
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 JUNE 30, 1998 AS COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 1997.
Three Months Ended June 30,
---------------------------
1998 1997
-------- --------
Net Profits $203,439 $317,208
Barrels produced 7,997 8,543
Mcf produced 72,268 91,125
Average price/Bbl $ 15.89 $ 18.23
Average price/Mcf $ 1.84 $ 2.48
As shown in the table above, Net Profits decreased $113,769 (35.9%) for
the three months ended June 30, 1998 as compared to the three months ended
June 30, 1997. Of this decrease, approximately $19,000 and $46,000,
respectively, were related to decreases in the average prices of oil and
gas sold and approximately $47,000 was related to a decrease in volumes of
gas sold. Volumes of oil and gas sold decreased 546 barrels and 18,857
Mcf, respectively, for the three months ended June 30, 1998 as compared to
the three months ended June 30, 1997. The decrease in volumes of gas sold
resulted primarily from (i) the sale of several wells during 1997 and the
six months ended June 30, 1998, (ii) normal declines in production due to
diminished reserves on several significant wells during the three months
ended June 30, 1998, and (iii) positive prior period volume adjustments
made by a purchaser on two significant wells during the three months ended
June 30, 1997. Average oil and gas prices decreased to $15.89 per barrel
and $1.84 per Mcf, respectively, for the three months ended June 30, 1998
from $18.23 per barrel and $2.48 per Mcf, respectively, for the three
months ended June 30, 1997.
As discussed in Liquidity and Capital Resources above, the P-1 Partnership
sold certain Net Profits Interests during the three months ended June 30,
1998 and recognized a $392,604 gain on such sales. Similar sales during
the three months ended June 30, 1997 resulted in the P-1 Partnership
recognizing similar gains totaling $127,385.
33
<PAGE>
Depletion of Net Profits Interests decreased $10,433 (16.2%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from the decrease in volumes of oil
and gas sold during the three months ended June 30, 1998 as compared to
the three months ended June 30, 1997. As a percentage of Net Profits, this
expense increased to 26.6% for the three months ended June 30, 1998 from
20.3% for the three months ended June 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 June 30, 1998 as compared to the three
months ended June 30, 1997.
General and administrative expenses decreased $4,730 (13.6%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from a decrease in professional
fees during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. As a percentage of Net Profits, these expenses
increased to 14.7% for the three months ended June 30, 1998 from 10.9% for
the three months ended June 30, 1997. This percentage increase was
primarily due to the decrease in Net Profits discussed above.
SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1997.
Six Months Ended June 30,
-------------------------
1998 1997
-------- --------
Net Profits $422,567 $597,105
Barrels produced 14,957 17,127
Mcf produced 163,254 173,479
Average price/Bbl $ 15.08 $ 19.58
Average price/Mcf $ 1.96 $ 2.42
As shown in the table above, Net Profits decreased $174,538 (29.2%) for
the six months ended June 30, 1998 as compared to the six months ended
June 30, 1997. Of this decrease, approximately $67,000 and $75,000,
respectively, were related to decreases in the average prices of oil and
gas sold and approximately $42,000 and $25,000, respectively, were related
to the decreases in volumes of oil and gas sold. These decreases were
partially offset by an increase of approximately $35,000 related to a
decrease in production expenses incurred by owners of the Working
Interests. Volumes of oil and gas sold decreased 2,170 barrels and 10,225
Mcf, respectively, for the six months ended June 30, 1998 as compared to
the six months ended June 30, 1997. The decrease in volumes of oil sold
resulted primarily from the (i) sale of several wells during 1997 and the
six months ended June 30, 1998 and (ii) normal declines in production due
to diminished reserves on several significant wells
34
<PAGE>
during the six months ended June 30, 1998. The decrease in volumes of gas
sold resulted primarily from the (i) sale of several significant wells
during 1997 and the six months ended June 30, 1998 and (ii) normal
declines in production due to diminished reserves on several wells during
the six months ended June 30, 1998, which decreases were partially offset
by an increase that resulted from negative prior period volume adjustments
made by a purchaser on one significant well during the six months ended
June 30, 1997. 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 six months ended June 30, 1998
as compared to the six months ended June 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 $15.08 per barrel and $1.96
per Mcf, respectively, for the six months ended June 30, 1998 from $19.58
per barrel and $2.42 per Mcf, respectively, for the six months ended June
30, 1997.
As discussed in Liquidity and Capital Resources above, the P-1 Partnership
sold certain Net Profits Interests during the six months ended June 30,
1998 and recognized a $475,798 gain on such sales. Similar sales during
the six months ended June 30, 1997 resulted in the P-1 Partnership
recognizing similar gains totaling $127,385.
Depletion of Net Profits Interests decreased $11,381 (9.1%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of Net Profits, this expense increased to 26.9% for
the six months ended June 30, 1998 from 21.0% for the six months ended
June 30, 1997. This percentage increase was primarily due to the decreases
in the average prices of oil and gas sold during the six months ended June
30, 1998 as compared to the six months ended June 30, 1997.
The P-1 Partnership recognized a non-cash charge against earnings of
$902,042 during the six months ended June 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 six months ended June 30, 1998.
35
<PAGE>
General and administrative expenses decreased $2,201 (3.2%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of Net Profits, these expenses increased to 15.9%
for the six months ended June 30, 1998 from 11.6% for the six months ended
June 30, 1997. This percentage increase was primarily due to the decrease
in Net Profits discussed above.
Cumulative cash distributions to the Limited Partners through June 30,
1998 were $10,772,558 or 99.68% of the Limited Partners' capital
contributions.
P-2 PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 1997.
Three Months Ended June 30,
---------------------------
1998 1997
-------- --------
Net Profits $153,230 $178,224
Barrels produced 5,581 6,061
Mcf produced 59,874 78,104
Average price/Bbl $ 15.84 $ 18.25
Average price/Mcf $ 1.89 $ 1.56
As shown in the table above, Net Profits decreased $24,994 (14.0%) for the
three months ended June 30, 1998 as compared to the three months ended
June 30, 1997. Of this decrease, approximately $13,000 was related to a
decrease in the average price of oil sold and approximately $9,000 and
$28,000, respectively, were related to decreases in volumes of oil and gas
sold. These decreases were partially offset by an increase of
approximately $20,000 related to an increase in the average price of gas
sold and an increase of approximately $6,000 related to decreases in
production expenses incurred by the owners of the Working Interests.
Volumes of oil and gas sold decreased 480 barrels and 18,230 Mcf,
respectively, for the three months ended June 30, 1998 as compared to the
three months ended June 30, 1997. The decrease in volumes of gas sold
resulted primarily from (i) the sale of several wells during 1997 and the
six months ended June 30, 1998, (ii) normal declines in production due to
diminished reserves on several significant wells during the three months
ended June 30, 1998, and (iii) positive prior period volume adjustments
made by purchasers on two significant wells during the three months ended
June 30, 1997. Average oil prices decreased to $15.84 per barrel for the
three months ended June 30, 1998 from $18.25 per barrel for the three
months ended June 30, 1997. Average gas prices increased to $1.89 per Mcf
for the three months ended June 30, 1998 from $1.56 per Mcf for the three
months ended June 30, 1997.
36
<PAGE>
As discussed in Liquidity and Capital Resources above, the P-2 Partnership
sold certain Net Profits Interests during the three months ended June 30,
1998 and recognized a $196,830 gain on such sales. Similar sales during
the three months ended June 30, 1997 resulted in the P-2 Partnership
recognizing similar gains totaling $80,091.
Depletion of Net Profits Interests decreased $12,291 (22.8%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from the decreases in volumes of
oil and gas sold during the three months ended June 30, 1998 as compared
to the three months ended June 30, 1997. As a percentage of Net Profits,
this expense decreased to 27.2% for the three months ended June 30, 1998
from 30.3% for the three months ended June 30, 1997. This percentage
decrease was primarily due to the increase in the average price of gas
sold during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997.
General and administrative expenses decreased $3,795 (13.2%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from a decrease in professional
fees during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. As a percentage of Net Profits, these expenses
remained relatively constant at 16.3% for the three months ended June 30,
1998 and 16.2% for the three months ended June 30, 1997.
SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1997.
Six Months Ended June 30,
-------------------------
1998 1997
-------- --------
Net Profits $321,188 $469,338
Barrels produced 10,522 12,143
Mcf produced 133,377 149,715
Average price/Bbl $ 15.04 $ 19.59
Average price/Mcf $ 1.98 $ 2.47
As shown in the table above, Net Profits decreased $148,150 (31.6%) for
the six months ended June 30, 1998 as compared to the six months ended
June 30, 1997. Of this decrease, approximately $48,000 and $65,000,
respectively, were related to decreases in the average prices of oil and
gas sold and approximately $32,000 and $40,000, respectively, were related
to decreases in volumes of oil and gas sold. These decreases in Net
Profits were 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 1,621
37
<PAGE>
barrels and 16,338 Mcf, respectively, for the six months ended June 30,
1998 as compared to the six months ended June 30, 1997. The decrease in
volumes of oil sold resulted primarily from (i) the sale of several wells
during 1997 and the six months ended June 30, 1998 and (ii) normal
declines in production due to diminished reserves on several significant
wells during the six months ended June 30, 1998. The decrease in volumes
of gas sold resulted primarily from the (i) sale of several wells during
1997 and the six months ended June 30, 1998 and (ii) normal declines in
production due to diminished reserves on several significant wells during
the six months ended June 30, 1998, which decreases were partially offset
by a negative prior period volume adjustment made by a purchaser on one
significant well during the six months ended June 30, 1997. 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 six months ended June 30, 1998 as compared to the six
months ended June 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 $15.04 per barrel and $1.98 per Mcf,
respectively, for the six months ended June 30, 1998 from $19.59 per
barrel and $2.47 per Mcf, respectively, for the six months ended June 30,
1997.
As discussed in Liquidity and Capital Resources above, the P-2 Partnership
sold certain Net Profits Interests during the six months ended June 30,
1998 and recognized a $255,015 gain on such sales. Similar sales during
the six months ended June 30, 1997 resulted in the P-2 Partnership
recognizing similar gains totaling $80,091.
Depletion of Net Profits Interests decreased $17,204 (16.4%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. This decrease resulted primarily from the decreases in volumes of
oil and gas sold during the six months ended June 30, 1998 as compared to
the six months ended June 30, 1997. As a percentage of Net Profits, this
expense increased to 27.3% for the six months ended June 30, 1998 from
22.4% for the six months ended June 30, 1997. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold
during the six months ended June 30, 1998 as compared to the six months
ended June 30, 1997.
38
<PAGE>
The P-2 Partnership recognized a non-cash charge against earnings of
$727,893 during the six months ended June 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 six months ended June 30, 1998.
General and administrative expenses decreased $1,572 (2.7%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of Net Profits, these expenses increased to 17.5%
for the six months ended June 30, 1998 from 12.3% for the six months ended
June 30, 1997. This percentage increase was primarily due to the decrease
in Net Profits discussed above.
Cumulative cash distributions to the Limited Partners through June 30,
1998 were $8,225,561 or 91.30% of the Limited Partners' capital
contributions.
P-3 PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 1997.
Three Months Ended June 30,
---------------------------
1998 1997
-------- --------
Net Profits $284,321 $338,563
Barrels produced 10,316 11,179
Mcf produced 112,015 147,613
Average price/Bbl $ 15.84 $ 18.25
Average price/Mcf $ 1.89 $ 1.62
As shown in the table above, Net Profits decreased $54,242 (16.0%) for the
three months ended June 30, 1998 as compared to the three months ended
June 30, 1997. Of this decrease, approximately $25,000 was related to a
decrease in the average price of oil sold and approximately $16,000 and
$57,000, respectively, were related to decreases in volumes of oil and gas
sold. These decreases were partially offset by an increase of
approximately $30,000 related to an increase in the average price of gas
sold and an increase of approximately $14,000 related to decreases in
production expenses incurred by the owners of the Working Interests.
39
<PAGE>
Volumes of oil and gas sold decreased 863 barrels and 35,598 Mcf,
respectively, for the three months ended June 30, 1998 as compared to the
three months ended June 30, 1997. The decrease in volumes of gas sold
resulted primarily from (i) the sale of several wells during 1997 and the
six months ended June 30, 1998, (ii) normal declines in production due to
diminished reserves on several significant wells during the three months
ended June 30, 1998, and (iii) positive prior period volume adjustments
made by purchasers on two significant wells during the three months ended
June 30, 1997. Average oil prices decreased to $15.84 per barrel for the
three months ended June 30, 1998 from $18.25 per barrel for the three
months ended June 30, 1997. Average gas prices increased to $1.89 per Mcf
for the three months ended June 30, 1998 from $1.62 per Mcf for the three
months ended June 30, 1997.
As discussed in Liquidity and Capital Resources above, the P-3 Partnership
sold certain Net Profits Interests during the three months ended June 30,
1998 and recognized a $497,106 gain on such sales. Similar sales during
the three months ended June 30, 1997 resulted in the P-3 Partnership
recognizing similar gains totaling $142,486.
Depletion of Net Profits Interests decreased $22,797 (22.8%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from the decreases in volumes of
oil and gas sold during the three months ended June 30, 1998. As a
percentage of Net Profits, this expense decreased to 27.2% for the three
months ended June 30, 1998 from 29.6% for the three months ended June 30,
1997. This percentage decrease was primarily due to the increase in the
average price of gas sold during the three months ended June 30, 1998 as
compared to the three months ended June 30, 1997.
General and administrative expenses decreased $7,124 (13.1%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from a decrease in professional
fees during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. As a percentage of Net Profits, these expenses
remained relatively constant at 16.6% for the three months ended June 30,
1998 and 16.0% for the three months ended June 30, 1997.
40
<PAGE>
SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1997.
Six Months Ended June 30,
-------------------------
1998 1997
-------- --------
Net Profits $597,661 $876,433
Barrels produced 19,459 22,418
Mcf produced 249,200 282,427
Average price/Bbl $ 15.04 $ 19.60
Average price/Mcf $ 1.98 $ 2.47
As shown in the table above, Net Profits decreased $278,772 (31.8%) for
the six months ended June 30, 1998 as compared to the six months ended
June 30, 1997. Of this decrease, approximately $89,000 and $122,000,
respectively, were related to decreases in the average prices of oil and
gas sold and approximately $58,000 and $82,000, respectively, were related
to decreases in volumes of oil and gas sold. These decreases were
partially offset by an increase of approximately $73,000 related to
decreases in production expenses incurred by the owners of the Working
Interests. Volumes of oil and gas sold decreased 2,959 barrels and 33,227
Mcf, respectively, for the six months ended June 30, 1998 as compared to
the six months ended June 30, 1997. The decrease in volumes of oil sold
resulted primarily from (i) the sale of several wells during 1997 and the
six months ended June 30, 1998 and (ii) normal declines in production due
to diminished reserves on several significant wells during the six months
ended June 30, 1998. The decreases in volumes of gas sold resulted
primarily from (i) the sale of several wells during 1997 and the six
months ended June 30, 1998 and (ii) normal declines in production due to
diminished reserves on several significant wells during the six months
ended June 30, 1998, which decreases were partially offset by an increase
that resulted from negative prior period volume adjustments made by a
purchaser on one significant well during the six months ended June 30,
1997. 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 six months ended June 30, 1998 as
compared to the six months ended June 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 $15.04 per barrel and $1.98
per Mcf, respectively, for the six months ended June 30, 1998 from $19.60
per barrel and $2.47 per Mcf, respectively, for the six months ended June
30, 1997.
41
<PAGE>
As discussed in Liquidity and Capital Resources above, the P-3 Partnership
sold certain Net Profits Interests during the six months ended June 30,
1998 and recognized a $605,649 gain on such sales. Similar sales during
the six months ended June 30, 1997 resulted in the P-3 Partnership
recognizing similar gains totaling $142,486.
Depletion of Net Profits Interests decreased $31,720 (16.3%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. This decrease resulted primarily from the decreases in volumes of
oil and gas sold during the six months ended June 30, 1998 as compared to
the six months ended June 30, 1997. As a percentage of Net Profits, this
expense increased to 27.2% for the six months ended June 30, 1998 from
22.2% for the six months ended June 30, 1997. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold
during the six months ended June 30, 1998 as compared to the six months
ended June 30, 1997.
The P-3 Partnership recognized a non-cash charge against earnings of
$1,413,917 during the six months ended June 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 six months ended June 30, 1998.
General and administrative expenses decreased $2,937 (2.7%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of Net Profits, these expenses increased to 17.7%
for the six months ended June 30, 1998 from 12.4% for the six months ended
June 30, 1997. This percentage increase was primarily due to the decrease
in Net Profits discussed above.
Cumulative cash distributions to the Limited Partners through June 30,
1998 were $14,839,401 or 87.48% of the Limited Partners' capital
contributions.
42
<PAGE>
P-4 PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 1997.
Three Months Ended June 30,
---------------------------
1998 1997
-------- --------
Net Profits $178,254 $317,362
Barrels produced 4,443 5,097
Mcf produced 93,251 136,684
Average price/Bbl $ 12.29 $ 18.90
Average price/Mcf $ 2.25 $ 2.36
As shown in the table above, Net Profits decreased $139,108 (43.8%) for
the three months ended June 30, 1998 as compared to the three months ended
June 30, 1997. Of this decrease, approximately $29,000 was related to a
decrease in the average price of oil sold and approximately $102,000 was
related to a decrease in volumes of gas sold, which decreases were
partially offset by an increase of approximately $15,000 related to a
decrease in production expenses incurred by the owners of the Working
Interests. Volumes of oil and gas sold decreased 654 barrels and 43,433
Mcf, respectively, for the three months ended June 30, 1998 as compared to
the three months ended June 30, 1997. The decrease in volumes of oil sold
resulted primarily from normal declines in production due to diminished
reserves on several significant wells during the three months ended June
30, 1998. The decrease in volumes of gas sold resulted primarily from (i)
the sale of several wells during 1997 and the six months ended June
30,1998 and (ii) normal declines in production due to diminished reserves
on several significant wells during the three months ended June 30, 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 June 30, 1998 as compared
to the three months ended June 30, 1997 and (ii) a decrease in production
taxes associated with the decrease in Net Profits discussed above, which
decreases were partially offset by an increase in ad valorem taxes during
the three months ended June 30, 1998 as compared to the three months ended
June 30, 1997. Average oil and gas prices decreased to $12.29 per barrel
and $2.25 per Mcf, respectively, for the three months ended June 30, 1998
from $18.90 per barrel and $2.36 per Mcf, respectively, for the three
months ended June 30, 1997.
43
<PAGE>
Depletion of Net Profits Interests decreased $49,636 (44.4%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from (i) the decreases in volumes
of oil and gas sold during the three months ended June 30, 1998 as
compared to the three months ended June 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 34.9% for the three months ended June 30, 1998 and 35.2% for the three
months ended June 30, 1997.
General and administrative expenses decreased $5,296 (13.1%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from a decrease in professional
fees during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. As a percentage of Net Profits, these expenses
increased to 19.7% for the three months ended June 30, 1998 from 12.7% for
the three months ended June 30, 1997. This percentage increase was
primarily due to the decrease in Net Profits discussed above.
SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1997.
Six Months Ended June 30,
-------------------------
1998 1997
-------- --------
Net Profits $418,646 $724,735
Barrels produced 9,276 10,511
Mcf produced 198,128 279,299
Average price/Bbl $ 13.48 $ 20.36
Average price/Mcf $ 2.23 $ 2.55
As shown in the table above, Net Profits decreased $306,089 (42.2%) for
the six months ended June 30, 1998 as compared to the six months ended
June 30, 1997. Of this decrease, approximately $64,000 and $62,000,
respectively, were related to decreases in the average prices of oil and
gas sold and approximately $207,000 was related to a decrease in volumes
of gas sold, which decreases were partially offset by an increase of
approximately $52,000 related to a decrease in production expenses
incurred by the owners of the Working Interests. Volumes of oil and gas
sold decreased 1,235 barrels and 81,171 Mcf, respectively, for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. The decrease in volumes of oil sold resulted primarily from normal
declines in production due to diminished reserves on several significant
wells during the six months ended June 30, 1998. The decrease in volumes
of gas sold resulted primarily from (i) the sale of
44
<PAGE>
several wells during 1997 and the six months ended June 30, 1998 and (ii)
normal declines in production due to diminished reserves on several
significant wells during the six months ended June 30, 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 six months ended June 30, 1998 as compared to the six
months ended June 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 $13.48 per barrel and $2.23 per Mcf,
respectively, for the six months ended June 30, 1998 from $20.36 per
barrel and $2.55 per Mcf, respectively, for the six months ended June 30,
1997.
Depletion of Net Profits Interests decreased $97,271 (42.5%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. This decrease resulted primarily from (i) the decreases in volumes
of oil and gas sold during the six months ended June 30, 1998 as compared
to the six months ended June 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
31.4% for the six months ended June 30, 1998 and 31.6% for the six months
ended June 30, 1997.
The P-4 Partnership recognized a non-cash charge against earnings of
$752,388 during the six months ended June 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 six months ended June 30, 1998.
General and administrative expenses remained relatively constant for the
six months ended June 30, 1998 and the six months ended June 30, 1997. As
a percentage of Net Profits, these expenses increased to 18.8% for the six
months ended June 30, 1998 from 10.9% for the six months ended June 30,
1997. This percentage increase was primarily due to the decrease in Net
Profits discussed above.
Cumulative cash distributions to the Limited Partners through June 30,
1998 were $11,894,945 or 94.18% of the Limited Partners' capital
contributions.
45
<PAGE>
P-5 PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 1997.
Three Months Ended June 30,
---------------------------
1998 1997
-------- --------
Net Profits $182,110 $161,365
Barrels produced 1,605 1,918
Mcf produced 133,220 113,044
Average price/Bbl $ 12.26 $ 21.83
Average price/Mcf $ 1.68 $ 1.55
As shown in the table above, Net Profits increased $20,745 (12.9%) for the
three months ended June 30, 1998 as compared to the three months ended
June 30, 1997. Of this increase, approximately $31,000 was related to an
increase in the volumes of gas sold and approximately $17,000 was related
to an increase in the average price of gas sold. These increases in Net
Profits were partially offset by decreases of approximately (i) $7,000
related to a decrease in the volumes of oil sold, (ii) $15,000 related to
a decrease in the average price of oil sold, and (iii) $6,000 related to
an increase in production expenses incurred by the owners of the Working
Interests. Volumes of oil sold decreased 313 barrels while volumes of gas
sold increased 20,176 Mcf for the three months ended June 30, 1998 as
compared to the three months ended June 30, 1997. The decrease in volumes
of oil sold resulted primarily from the sale of several wells during 1997
and normal declines in production due to diminished reserves on two
significant wells during the three months ended June 30, 1998. The
increase in volumes of gas sold resulted primarily from the successful
recompletion of a well to a new zone during 1998 and a positive prior
period volume adjustment made by the purchaser on one significant well
during the three months ended June 30, 1998. The increase in production
expenses resulted primarily from the increase in volumes of gas sold.
Average oil prices decreased to $12.26 per barrel for the three months
ended June 30, 1998 from $21.83 per barrel for the three months ended June
30, 1997. Average gas prices increased to $1.68 per Mcf for the three
months ended June 30, 1998 from $1.55 per Mcf for the three months ended
June 30, 1997.
46
<PAGE>
As discussed in Liquidity and Capital Resources above, the P-5 Partnership
sold certain Net Profits Interests during the three months ended June 30,
1998 and recognized a $203,390 gain on such sales. Similar sales during
the three months ended June 30, 1997 resulted in the P-5 Partnership
recognizing similar gains totaling $54,195.
Depletion of Net Profits Interests decreased $5,001 (7.5%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from upward revisions in the
estimates of remaining oil and gas reserves at December 31, 1997, which
decrease was partially offset by the increase in volumes of gas sold
during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. As a percentage of Net Profits, this expense
decreased to 33.7% for the three months ended June 30, 1998 from 41.2% for
the three months ended June 30, 1997. This percentage decrease was
primarily due to the increase in the average price of gas sold and the
dollar decrease in Depletion of Net Profits Interests discussed above.
General and administrative expenses decreased $5,125 (13.5%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease was primarily a result of a decrease in professional
fees during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. As a percentage of Net Profits, these expenses
decreased to 18.0% for the three months ended June 30, 1998 from 23.5% for
the three months ended June 30, 1997. This percentage decrease was
primarily due to the dollar decrease in general and administrative
expenses and the increase in Net Profits discussed above.
47
<PAGE>
SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1997.
Six Months Ended June 30,
-------------------------
1998 1997
-------- --------
Net Profits $430,496 $502,680
Barrels produced 3,400 4,185
Mcf produced 257,793 259,781
Average price/Bbl $ 14.99 $ 21.27
Average price/Mcf $ 2.00 $ 2.14
As shown in the table above, Net Profits decreased $72,184 (14.4%) for the
six months ended June 30, 1998 as compared to the six months ended June
30, 1997. Of this decrease, approximately $21,000 and $36,000,
respectively, were related to decreases in the average prices of oil and
gas sold and approximately $17,000 was related to a decrease in volumes of
oil sold. Volumes of oil and gas sold decreased 785 barrels and 1,988 Mcf,
respectively, for the six months ended June 30, 1998 as compared to the
six months ended June 30, 1997. The decrease in volumes of oil sold
resulted primarily from the sale of several wells during 1997 and the
normal decline in production due to diminished oil reserves on three
significant wells during the six months ended June 30, 1998. Average oil
and gas prices decreased to $14.99 per barrel and $2.00 per Mcf,
respectively, for the six months ended June 30, 1998 from $21.27 per
barrel and $2.14 per Mcf, respectively, for the six months ended June 30,
1997.
As discussed in Liquidity and Capital Resources above, the P-5 Partnership
sold certain Net Profits Interests during the six months ended June 30,
1998 and recognized a $340,014 gain on such sales. Similar sales during
the six months ended June 30, 1997 resulted in the P-5 Partnership
recognizing similar gains totaling $54,195.
Depletion of Net Profits Interests decreased $32,318 (21.3%) for the six
months ended June 30, 1998 as compared to the six months ended June 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 decreased to 27.8% for the six
months ended June 30, 1998 from 30.2% for the six months ended June 30,
1997. This percentage decrease was primarily due to the dollar decrease in
Depletion of Net Profits Interests discussed above.
48
<PAGE>
The P-5 Partnership recognized a non-cash charge against earnings of
$1,018,068 during the six months ended June 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 March 31, 1997 and $895,610
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-5 Partnership's level of permissible indirect drilling
activity through its affiliated programs. No similar charges were
necessary during the six months ended June 30, 1998.
General and administrative expenses decreased $2,796 (3.7%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of Net Profits, these expenses increased to 17.1%
for the six months ended June 30, 1998 from 15.2% for the six months ended
June 30, 1997.
Cumulative cash distributions to the Limited Partners through June 30,
1998 were $6,896,759 or 58.23% of the Limited Partners' capital
contributions.
P-6 PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 1997.
Three Months Ended June 30,
---------------------------
1998 1997
-------- --------
Net Profits $279,345 $407,320
Barrels produced 3,236 4,516
Mcf produced 226,194 270,185
Average price/Bbl $ 11.89 $ 20.56
Average price/Mcf $ 1.78 $ 1.80
As shown in the table above, Net Profits decreased $127,975 (31.4%) for
the three months ended June 30, 1998 as compared to the three months ended
June 30, 1997. Of this decrease, approximately $26,000 and $79,000,
respectively, were related to decreases in the volumes of oil and gas sold
and approximately $28,000 was related to a decrease in the average price
of oil sold. Volumes of oil and gas sold decreased 1,280 barrels and
43,991 Mcf, respectively, for the three months ended June 30, 1998 as
compared to the three months ended June 30, 1997. The decreases in volumes
of oil and gas sold resulted primarily from normal declines in production
due to diminished reserves on several significant
49
<PAGE>
wells during the three months ended June 30, 1998. Average oil prices
decreased to $11.89 per barrel for the three months ended June 30, 1998
from $20.56 per barrel for the three months ended June 30, 1997. Average
gas prices remained relatively constant at $1.78 per Mcf for the three
months ended June 30, 1998 and $1.80 per Mcf for the three months ended
June 30, 1997.
As discussed in Liquidity and Capital Resources above, the P-6 Partnership
sold certain Net Profits Interests during the three months ended June 30,
1998 and recognized a $68,179 gain on such sales. Similar sales during the
three months ended June 30, 1997 resulted in the P-6 Partnership
recognizing similar gains totaling $21,938.
Depletion of Net Profits Interests decreased $72,391 (41.6%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from (i) the decreases in volumes
of oil and gas sold during the three months ended June 30, 1998 as
compared to the three months ended June 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 decreased to 36.3% for the
three months ended June 30, 1998 from 42.7% for the three months ended
June 30, 1997. This percentage decrease was primarily due to upward
revisions in the estimates of remaining oil and gas reserves discussed
above.
General and administrative expenses decreased $5,169 (11.5%) for the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. This decrease resulted primarily from a decrease in professional
fees during the three months ended June 30, 1998 as compared to the three
months ended June 30, 1997. As a percentage of Net Profits, these expenses
increased to 14.3% for the three months ended June 30, 1998 from 11.1% for
the three months ended June 30, 1997. This percentage increase was
primarily due to the decrease in Net Profits discussed above.
50
<PAGE>
SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1997.
Six Months Ended June 30,
-------------------------
1998 1997
-------- --------
Net Profits $617,373 $951,960
Barrels produced 6,897 8,819
Mcf produced 438,770 505,235
Average price/Bbl $ 14.10 $ 20.89
Average price/Mcf $ 1.92 $ 2.30
As shown in the table above, Net Profits decreased $334,587 (35.1%) for
the six months ended June 30, 1998 as compared to the six months ended
June 30, 1997. Of this decrease, approximately $47,000 and $165,000,
respectively, were related to decreases in the average prices of oil and
gas sold and approximately $40,000 and $153,000, respectively, were
related to decreases in volumes of oil and gas sold. These decreases in
Net Profits were partially offset by an increase of approximately $70,000
related to decreases in production expenses incurred by the owners of the
Working Interests. Volumes of oil and gas sold decreased 1,922 barrels and
66,465 Mcf, respectively, for the six months ended June 30, 1998 as
compared to the six months ended June 30, 1997. The decreases in volumes
of oil and gas sold resulted primarily from normal declines in production
due to diminished reserves on several significant wells during the six
months ended June 30, 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 six months ended
June 30, 1998 as compared to the six months ended June 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 $14.10 per barrel
and $1.92 per Mcf, respectively, for the six months ended June 30, 1998
from $20.89 per barrel and $2.30 per Mcf, respectively, for the six months
ended June 30, 1997.
As discussed in Liquidity and Capital Resources above, the P-6 Partnership
sold certain Net Profits Interests during the six months ended June 30,
1998 and recognized a $134,525 gain on such sales. Similar sales during
the six months ended June 30, 1997 resulted in the P-6 Partnership
recognizing similar gains totaling $25,958.
51
<PAGE>
Depletion of Net Profits Interests decreased $128,056 (39.2%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. This decrease resulted primarily from (i) the decreases in volumes
of oil and gas sold during the six months ended June 30, 1998 as compared
to the six months ended June 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 decreased to 32.1% for the six
months ended June 30, 1998 from 34.3% for the six months ended June 30,
1997. This percentage decrease was primarily due to the upward revisions
in estimates of remaining reserves discussed above.
The P-6 Partnership recognized a non-cash charge against earnings of
$898,584 during the six months ended June 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 six months ended June 30, 1998.
General and administrative expenses decreased $3,432 (3.7%) for the six
months ended June 30, 1998 as compared to the six months ended June 30,
1997. As a percentage of Net Profits, these expenses increased to 14.5%
for the six months ended June 30, 1998 from 9.7% for the six months ended
June 30, 1997. This percentage increase was primarily due to the decrease
in Net Profits discussed above.
Cumulative cash distributions to the Limited Partners through June 30,
1998 were $9,225,248 or 64.49% of the Limited Partners' capital
contributions.
52
<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 June 30, 1998 and for the six
months ended June 30, 1998, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the P-2 Partnership's
financial statements as of June 30, 1998 and for the six
months ended June 30, 1998, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the P-3 Partnership's
financial statements as of June 30, 1998 and for the six
months ended June 30, 1998, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the P-4 Partnership's
financial statements as of June 30, 1998 and for the six
months ended June 30, 1998, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the P-5 Partnership's
financial statements as of June 30, 1998 and for the six
months ended June 30, 1998, filed herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the P-6 Partnership's
financial statements as of June 30, 1998 and for the six
months ended June 30, 1998, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
None.
53
<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: August 13, 1998 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: August 13, 1998 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
54
<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 June 30, 1998 and
for the six months ended June 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 June 30, 1998 and
for the six months ended June 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 June 30, 1998
and for the six months ended June 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 June 30, 1998
and for the six months ended June 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 June 30, 1998
and for the six months ended June 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 June 30, 1998
and for the six months ended June 30, 1998, filed herewith.
All other exhibits are omitted as inapplicable.
55
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000850427
<NAME> GEODYNE INST/PENSION ENERGY INCOME P-1 LTD PSHP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 601,195
<SECURITIES> 0
<RECEIVABLES> 132,556
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 733,751
<PP&E> 6,986,554
<DEPRECIATION> 5,724,322
<TOTAL-ASSETS> 1,995,983
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,995,983
<TOTAL-LIABILITY-AND-EQUITY> 1,995,983
<SALES> 545,438
<TOTAL-REVENUES> 1,027,461
<CGS> 0
<TOTAL-COSTS> 303,940
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 723,521
<INCOME-TAX> 0
<INCOME-CONTINUING> 723,521
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 723,521
<EPS-PRIMARY> 6.32
<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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 418,892
<SECURITIES> 0
<RECEIVABLES> 104,589
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 523,481
<PP&E> 5,604,709
<DEPRECIATION> 4,600,156
<TOTAL-ASSETS> 1,528,034
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,528,034
<TOTAL-LIABILITY-AND-EQUITY> 1,528,034
<SALES> 421,814
<TOTAL-REVENUES> 681,476
<CGS> 0
<TOTAL-COSTS> 244,548
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 436,928
<INCOME-TAX> 0
<INCOME-CONTINUING> 436,928
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 436,928
<EPS-PRIMARY> 4.57
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000854066
<NAME> GEODYNE INST/PENSION ENERGY INCOME LTD PSHIP P-3
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 772,210
<SECURITIES> 0
<RECEIVABLES> 197,418
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 969,628
<PP&E> 10,596,646
<DEPRECIATION> 8,593,522
<TOTAL-ASSETS> 2,972,752
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,972,752
<TOTAL-LIABILITY-AND-EQUITY> 2,972,752
<SALES> 786,242
<TOTAL-REVENUES> 1,400,763
<CGS> 0
<TOTAL-COSTS> 457,132
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 943,631
<INCOME-TAX> 0
<INCOME-CONTINUING> 943,631
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 943,631
<EPS-PRIMARY> 5.25
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000860744
<NAME> GEODYNE INST/PENSION ENERGY INCOME LTD PSHIP P-4
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 173,407
<SECURITIES> 0
<RECEIVABLES> 215,428
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 388,835
<PP&E> 8,235,802
<DEPRECIATION> 7,082,459
<TOTAL-ASSETS> 1,542,178
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,542,178
<TOTAL-LIABILITY-AND-EQUITY> 1,542,178
<SALES> 567,007
<TOTAL-REVENUES> 584,416
<CGS> 0
<TOTAL-COSTS> 358,579
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 225,837
<INCOME-TAX> 0
<INCOME-CONTINUING> 225,837
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 225,837
<EPS-PRIMARY> 1.66
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000863832
<NAME> GEODYNE INST/PENSION ENERGY INCOME LTD PSHIP P-5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 371,007
<SECURITIES> 0
<RECEIVABLES> 102,699
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 473,706
<PP&E> 9,946,796
<DEPRECIATION> 8,794,832
<TOTAL-ASSETS> 1,625,670
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,625,670
<TOTAL-LIABILITY-AND-EQUITY> 1,625,670
<SALES> 430,496
<TOTAL-REVENUES> 775,709
<CGS> 0
<TOTAL-COSTS> 193,305
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 582,404
<INCOME-TAX> 0
<INCOME-CONTINUING> 582,404
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 582,404
<EPS-PRIMARY> 4.63
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000869801
<NAME> GEODYNE INST/PENSION ENERGY INCOME LTD PSHIP P-6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 310,808
<SECURITIES> 0
<RECEIVABLES> 166,775
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 477,583
<PP&E> 12,079,029
<DEPRECIATION> 9,789,375
<TOTAL-ASSETS> 2,767,237
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,767,237
<TOTAL-LIABILITY-AND-EQUITY> 2,767,237
<SALES> 617,373
<TOTAL-REVENUES> 759,333
<CGS> 0
<TOTAL-COSTS> 287,720
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 471,613
<INCOME-TAX> 0
<INCOME-CONTINUING> 471,613
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 471,613
<EPS-PRIMARY> 3.08
<EPS-DILUTED> 0
</TABLE>
