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, 1999
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,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 114,318 $ 99,454
Accounts receivable:
Net Profits 151,726 108,440
---------- ----------
Total current assets $ 266,044 $ 207,894
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,050,780 1,164,893
---------- ----------
$1,316,824 $1,372,787
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 79,711) ($ 82,899)
Limited Partners, issued and
outstanding, 108,074 units 1,396,535 1,455,686
---------- ----------
Total Partners' capital $1,316,824 $1,372,787
---------- ----------
$1,316,824 $1,372,787
========== ==========
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, 1999 AND 1998
(Unaudited)
1999 1998
-------- --------
REVENUES:
Net Profits $198,189 $203,439
Interest income 828 2,575
Gain on sale of Net Profits
Interests 34 392,604
-------- --------
$199,051 $598,618
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 50,321 $ 54,113
General and administrative
(Note 2) 30,359 29,928
-------- --------
$ 80,680 $ 84,041
-------- --------
NET INCOME $118,371 $514,577
======== ========
GENERAL PARTNER - NET INCOME $ 16,283 $ 27,765
======== ========
LIMITED PARTNERS - NET INCOME $102,088 $486,812
======== ========
NET INCOME per unit $ .94 $ 4.50
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
-------- --------
REVENUES:
Net Profits $355,654 $422,567
Interest income 1,944 6,225
Gain on sale of Net Profits
Interests 698 475,798
-------- --------
$358,296 $904,590
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $117,317 $113,848
General and administrative
(Note 2) 68,520 67,221
-------- --------
$185,837 $181,069
-------- --------
NET INCOME $172,459 $723,521
======== ========
GENERAL PARTNER - NET INCOME $ 27,610 $ 40,419
======== ========
LIMITED PARTNERS - NET INCOME $144,849 $683,102
======== ========
NET INCOME per unit $ 1.34 $ 6.32
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
----------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $172,459 $723,521
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depletion of Net Profits
Interests 117,317 113,848
Gain on sale of Net Profits
Interests ( 698) ( 475,798)
(Increase) decrease in accounts
receivable - Net Profits ( 43,286) 32,088
-------- --------
Net cash provided by operating
activities $245,792 $393,659
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 5,410) ($ 11,147)
Proceeds from sale of Net Profits
Interests 2,904 519,285
-------- --------
Net cash provided (used) by
investing activities ($ 2,506) $508,138
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($228,422) ($804,224)
-------- --------
Net cash used by financing activities ($228,422) ($804,224)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 14,864 $ 97,573
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 99,454 503,622
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $114,318 $601,195
======== ========
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,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 96,402 $ 78,435
Accounts receivable:
Net Profits 129,570 92,746
---------- ----------
Total current assets $ 225,972 $ 171,181
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 909,030 1,001,498
---------- ----------
$1,135,002 $1,172,679
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 69,788) ($ 70,704)
Limited Partners, issued and
outstanding, 90,094 units 1,204,790 1,243,383
---------- ----------
Total Partners' capital $1,135,002 $1,172,679
---------- ----------
$1,135,002 $1,172,679
========== ==========
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, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
REVENUES:
Net Profits $161,948 $153,230
Interest income 669 1,925
Gain on sale of Net Profits
Interests 198 196,830
-------- --------
$162,815 $351,985
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 41,367 $ 41,700
General and administrative
(Note 2) 25,268 25,031
-------- --------
$ 66,635 $ 66,731
-------- --------
NET INCOME $ 96,180 $285,254
======== ========
GENERAL PARTNER - NET INCOME $ 6,430 $ 15,834
======== ========
LIMITED PARTNERS - NET INCOME $ 89,750 $269,420
======== ========
NET INCOME per unit $ 1.00 $ 2.99
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
REVENUES:
Net Profits $282,253 $321,188
Interest income 1,516 4,647
Gain on sale of Net Profits
Interests 652 255,015
-------- --------
$284,421 $580,850
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 95,552 $ 87,775
General and administrative
(Note 2) 57,129 56,147
-------- --------
$152,681 $143,922
-------- --------
NET INCOME $131,740 $436,928
======== ========
GENERAL PARTNER - NET INCOME $ 10,333 $ 25,125
======== ========
LIMITED PARTNERS - NET INCOME $121,407 $411,803
======== ========
NET INCOME per unit $ 1.35 $ 4.57
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $131,740 $436,928
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depletion of Net Profits
Interests 95,552 87,775
Gain on sale of Net Profits
Interests ( 652) ( 255,015)
(Increase) decrease in accounts
receivable - Net Profits ( 36,824) 30,742
-------- --------
Net cash provided by operating
activities $189,816 $300,430
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 5,124) ($ 15,276)
Proceeds from sale of Net Profits
Interests 2,692 360,193
-------- --------
Net cash provided (used) by
investing activities ($ 2,432) $344,917
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($169,417) ($595,646)
-------- --------
Net cash used by financing activities ($169,417) ($595,646)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 17,967 $ 49,701
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 78,435 369,191
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 96,402 $418,892
======== ========
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,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 182,818 $ 146,246
Accounts receivable:
Net Profits 240,880 170,389
---------- ----------
Total current assets $ 423,698 $ 316,635
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,693,693 1,866,716
---------- ----------
$2,117,391 $2,183,351
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 131,201) ($ 132,995)
Limited Partners, issued and
outstanding, 169,637 units 2,248,592 2,316,346
---------- ----------
Total Partners' capital $2,117,391 $2,183,351
---------- ----------
$2,117,391 $2,183,351
========== ==========
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, 1999 AND 1998
(Unaudited)
1999 1998
-------- ---------
REVENUES:
Net Profits $306,585 $284,321
Interest income 1,323 3,730
Gain on sale of Net Profits
Interests 415 497,106
-------- --------
$308,323 $785,157
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 78,177 $ 77,390
General and administrative
(Note 2) 47,543 47,130
-------- --------
$125,720 $124,520
-------- --------
NET INCOME $182,603 $660,637
======== ========
GENERAL PARTNER - NET INCOME $ 12,191 $ 35,941
======== ========
LIMITED PARTNERS - NET INCOME $170,412 $624,696
======== ========
NET INCOME per unit $ 1.04 $ 3.68
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
-------- -----------
REVENUES:
Net Profits $529,764 $ 597,661
Interest income 2,990 8,872
Gain on sale of Net Profits
Interests 1,252 605,649
-------- ----------
$534,006 $1,212,182
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $178,949 $ 162,849
General and administrative
(Note 2) 107,421 105,702
-------- ----------
$286,370 $ 268,551
-------- ----------
NET INCOME $247,636 $ 943,631
======== ==========
GENERAL PARTNER - NET INCOME $ 19,390 $ 53,252
======== ==========
LIMITED PARTNERS - NET INCOME $228,246 $ 890,379
======== ==========
NET INCOME per unit $ 1.35 $ 5.25
======== ==========
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, 1999 AND 1998
(Unaudited)
1999 1998
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $247,636 $ 943,631
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depletion of Net Profits
Interests 178,949 162,849
Gain on sale of Net Profits
Interests ( 1,252) ( 605,649)
(Increase) decrease in accounts
receivable - Net Profits ( 70,491) 57,052
-------- ----------
Net cash provided by operating
activities $354,842 $ 557,883
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 9,601) ($ 29,131)
Proceeds from sale of Net Profits
Interests 4,927 665,251
-------- ----------
Net cash provided (used) by
investing activities ($ 4,674) $ 636,120
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($313,596) ($1,107,421)
-------- ----------
Net cash used by financing activities ($313,596) ($1,107,421)
-------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 36,572 $ 86,582
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 146,246 685,628
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $182,818 $ 772,210
======== ==========
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,
1999 1998
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 125,094 $ 101,652
Accounts receivable:
Net Profits 247,432 209,218
---------- ----------
Total current assets $ 372,526 $ 310,870
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 978,300 1,092,574
---------- ----------
$1,350,826 $1,403,444
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 93,085) ($ 93,853)
Limited Partners, issued and
outstanding, 126,306 units 1,443,911 1,497,297
---------- ----------
Total Partners' capital $1,350,826 $1,403,444
---------- ----------
$1,350,826 $1,403,444
========== ==========
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, 1999 AND 1998
(Unaudited)
1999 1998
--------- --------
REVENUES:
Net Profits $201,247 $178,254
Interest income 921 2,296
Gain on sale of Net
Profits Interests 410 8,004
-------- --------
$202,578 $188,554
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 54,369 $ 62,151
General and administrative
(Note 2) 35,028 35,086
-------- --------
$ 89,397 $ 97,237
-------- --------
NET INCOME $113,181 $ 91,317
======== ========
GENERAL PARTNER - NET INCOME $ 7,788 $ 6,937
======== ========
LIMITED PARTNERS - NET INCOME $105,393 $ 84,380
======== ========
NET INCOME per unit $ .83 $ .67
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
--------- --------
REVENUES:
Net Profits $330,628 $418,646
Interest income 1,869 5,157
Gain on sale of Net
Profits Interests 410 12,252
-------- --------
$332,907 $436,055
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $114,255 $131,544
General and administrative
(Note 2) 79,609 78,674
-------- --------
$193,864 $210,218
-------- --------
NET INCOME $139,043 $225,837
======== ========
GENERAL PARTNER - NET INCOME $ 11,429 $ 16,296
======== ========
LIMITED PARTNERS - NET INCOME $127,614 $209,541
======== ========
NET INCOME per unit $ 1.01 $ 1.66
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $139,043 $225,837
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depletion of Net Profits
Interests 114,255 131,544
Gain on sale of Net Profits
Interests ( 410) ( 12,252)
(Increase) decrease in accounts
receivable - Net Profits ( 38,214) 85,632
-------- --------
Net cash provided by operating
activities $214,674 $430,761
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 6,101) ($ 4,664)
Proceeds from sale of Net Profits
Interests 6,530 14,358
-------- --------
Net cash provided by investing
activities $ 429 $ 9,694
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($191,661) ($510,951)
-------- --------
Net cash used by financing activities ($191,661) ($510,951)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 23,442 ($ 70,496)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 101,652 243,903
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $125,094 $173,407
======== ========
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,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 145,751 $ 166,487
Accounts receivable:
Net Profits 107,684 99,823
---------- ----------
Total current assets $ 253,435 $ 266,310
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 896,647 991,179
---------- ----------
$1,150,082 $1,257,489
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 79,801) ($ 79,248)
Limited Partners, issued and
outstanding, 118,449 units 1,229,883 1,336,737
---------- ----------
Total Partners' capital $1,150,082 $1,257,489
---------- ----------
$1,150,082 $1,257,489
========== ==========
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, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
REVENUES:
Net Profits $199,402 $182,110
Interest income 1,257 2,770
Gain on sale of Net Profits
Interests - 203,390
-------- --------
$200,659 $388,270
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 51,574 $ 61,427
General and administrative
(Note 2) 33,072 32,771
-------- --------
$ 84,646 $ 94,198
-------- --------
NET INCOME $116,013 $294,072
======== ========
GENERAL PARTNER - NET INCOME $ 7,801 $ 17,022
======== ========
LIMITED PARTNERS - NET INCOME $108,212 $277,050
======== ========
NET INCOME per unit $ .91 $ 2.34
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
REVENUES:
Net Profits $343,845 $430,496
Interest income 2,613 5,199
Gain on sale of Net Profits
Interests - 340,014
-------- --------
$346,458 $775,709
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $104,991 $119,624
General and administrative
(Note 2) 74,925 73,681
-------- --------
$179,916 $193,305
-------- --------
NET INCOME $166,542 $582,404
======== ========
GENERAL PARTNER - NET INCOME $ 12,396 $ 33,645
======== ========
LIMITED PARTNERS - NET INCOME $154,146 $548,759
======== ========
NET INCOME per unit $ 1.30 $ 4.63
======== ========
UNITS OUTSTANDING 118,449 118,449
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-20-
<PAGE>
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-5
GEODYNE NPI PARTNERSHIP P-5
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $166,542 $582,404
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depletion of Net Profits
Interests 104,991 119,624
Gain on sale of Net Profits
Interests - ( 340,014)
(Increase) decrease in accounts
receivable - Net Profits ( 7,861) 32,269
-------- --------
Net cash provided by operating
activities $263,672 $394,283
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 10,459) ($ 36,915)
Proceeds from sale of Net Profits
Interests - 363,130
-------- --------
Net cash provided (used) by investing
activities ($ 10,459) $326,215
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($273,949) ($578,241)
-------- --------
Net cash used by financing activities ($273,949) ($578,241)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 20,736) $142,257
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 166,487 228,750
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $145,751 $371,007
======== ========
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,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 220,717 $ 300,324
Accounts receivable:
Net Profits 172,958 145,612
---------- ----------
Total current assets $ 393,675 $ 445,936
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,871,441 2,065,846
---------- ----------
$2,265,116 $2,511,782
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 107,219) ($ 106,642)
Limited Partners, issued and
outstanding, 143,041 units 2,372,335 2,618,424
---------- ----------
Total Partners' capital $2,265,116 $2,511,782
---------- ----------
$2,265,116 $2,511,782
========== ==========
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, 1999 AND 1998
(Unaudited)
1999 1998
-------- ---------
REVENUES:
Net Profits $348,435 $279,345
Interest income 1,748 3,418
Gain on sale of Net Profits
Interests - 68,179
-------- --------
$350,183 $350,942
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $101,126 $101,519
General and administrative
(Note 2) 40,291 39,872
-------- --------
$141,417 $141,391
-------- --------
NET INCOME $208,766 $209,551
======== ========
GENERAL PARTNER - NET INCOME $ 14,395 $ 14,367
======== ========
LIMITED PARTNERS - NET INCOME $194,371 $195,184
======== ========
NET INCOME per unit $ 1.36 $ 1.37
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
-------- ---------
REVENUES:
Net Profits $555,979 $617,373
Interest income 4,135 7,435
Gain on sale of Net Profits
Interests - 134,525
-------- --------
$560,114 $759,333
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $204,195 $198,462
General and administrative
(Note 2) 90,791 89,258
-------- --------
$294,986 $287,720
-------- --------
NET INCOME $265,128 $471,613
======== ========
GENERAL PARTNER - NET INCOME $ 21,217 $ 31,147
======== ========
LIMITED PARTNERS - NET INCOME $243,911 $440,466
======== ========
NET INCOME per unit $ 1.71 $ 3.08
======== ========
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, 1999 AND 1998
(Unaudited)
1999 1998
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $265,128 $471,613
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depletion of Net Profits
Interests 204,195 198,462
Gain on sale of Net Profits
Interests - ( 134,525)
(Increase) decrease in accounts
receivable - Net Profits ( 27,346) 124,577
-------- --------
Net cash provided by operating
activities $441,977 $660,127
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 11,281) ($ 41,219)
Proceeds from sale of Net Profits
Interests 1,491 145,437
-------- --------
Net cash provided (used) by
investing activities ($ 9,790) $104,218
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($511,794) ($816,494)
-------- --------
Net cash used by financing activities ($511,794) ($816,494)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 79,607) ($ 52,149)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 300,324 362,957
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $220,717 $310,808
======== ========
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, 1999
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of June 30, 1999, combined statements of
operations for the three and six months ended June 30, 1999 and 1998, and
combined statements of cash flows for the six months ended June 30, 1999
and 1998 have been prepared by Geodyne Resources, Inc., the General
Partner of the Geodyne Institutional/Pension Energy Income 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, 1999, the combined results of operations for the three and six
months ended June 30, 1999 and 1998, and the combined cash flows for the
six months ended June 30, 1999 and 1998.
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, 1998. The
results of operations for the period ended June 30, 1999 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 the 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.
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, 1999 the following payments were made to the General
Partner or its affiliates by the Partnerships:
-27-
<PAGE>
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
P-1 $1,919 $28,440
P-2 1,559 23,709
P-3 2,903 44,640
P-4 1,788 33,240
P-5 1,902 31,170
P-6 2,650 37,641
During the six months ended June 30, 1999 the following payments were made
to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
P-1 $11,640 $56,880
P-2 9,711 47,418
P-3 18,141 89,280
P-4 13,129 66,480
P-5 12,585 62,340
P-6 15,509 75,282
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.
-28-
<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
-29-
<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, 1999 and the net
revenue generated from future operations will provide sufficient working
capital to meet current and future obligations.
-30-
<PAGE>
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. Due to the volatility of oil and gas prices,
forecasting future prices is subject to great uncertainty and inaccuracy.
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 were recently at or near their
lowest level in the past decade due primarily to the global surplus of
crude oil. However, as of the date of this Quarterly Report oil prices
have rebounded primarily due to a decrease in the global oil surplus as a
result of production curtailments by several major oil producing nations.
Management is unable to predict whether future oil and gas prices will (i)
stabilize, (ii) increase, or (iii) decrease.
P-1 PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1998.
Three Months Ended June 30,
---------------------------
1999 1998
-------- --------
Net Profits $198,189 $203,439
Barrels produced 6,370 7,997
Mcf produced 84,519 72,268
Average price/Bbl $ 14.98 $ 15.89
Average price/Mcf $ 1.78 $ 1.84
As shown in the table above, total Net Profits decreased $5,250 (2.6%) for
the three months ended June 30, 1999 as compared to the three months ended
June 30, 1998. Of this decrease, approximately $6,000 and $5,000,
respectively, were related to decreases in the average prices of oil and
gas sold and approximately $26,000 was related to a decrease in volumes of
oil sold. These decreases were partially offset by increases of (i)
approximately $23,000 related to an increase in volumes of gas sold and
(ii) approximately $9,000 related to a decrease in production expenses
incurred
-31-
<PAGE>
by the owners of the Working Interests. Volumes of oil sold decreased
1,627 barrels while volumes of gas sold increased 12,251 Mcf for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. The decrease in volumes of oil sold was primarily due to a positive
prior period volume adjustment made by the purchaser on several wells
during the three months ended June 30, 1998. The increase in volumes of
gas sold was primarily due to (i) increased production on one significant
well due to repairs made during 1998 and (ii) the successful recompletion
of another significant well during the fourth quarter of 1998. The
decrease in production expenses was primarily due to (i) a negative prior
period adjustment of production taxes by the operator of one significant
well during the three months ended June 30, 1999 and (ii) workover
expenses incurred during the three months ended June 30, 1998 on two other
significant wells in order to improve the recovery of reserves. Average
oil and gas prices decreased to $14.98 per barrel and $1.78 per Mcf,
respectively, for the three months ended June 30, 1999 from $15.89 per
barrel and $1.84 per Mcf, respectively, for the three months ended June
30, 1998.
The P-1 Partnership sold certain Net Profits Interests during the three
months ended June 30, 1999 and recognized a $34 gain on such sales. Sales
of Net Profits Interests during the three months ended June 30, 1998
resulted in the P-1 Partnership recognizing similar gains of $392,604.
Depletion of Net Profits Interests decreased $3,792 (7.0%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of Net Profits, this expense decreased to 25.4% for
the three months ended June 30, 1999 from 26.6% for the three months ended
June 30, 1998.
General and administrative expenses increased $431 (1.4%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of Net Profits, these expenses increased to 15.3%
for the three months ended June 30, 1999 from 14.7% for the three months
ended June 30, 1998.
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<PAGE>
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1998.
Six Months Ended June 30,
-------------------------
1999 1998
-------- --------
Net Profits $355,654 $422,567
Barrels produced 13,796 14,957
Mcf produced 203,366 163,254
Average price/Bbl $ 12.42 $ 15.08
Average price/Mcf $ 1.64 $ 1.96
As shown in the table above, total Net Profits decreased $66,913 (15.8%)
for the six months ended June 30, 1999 as compared to the six months ended
June 30, 1998. Of this decrease, approximately $37,000 and $66,000,
respectively, were related to decreases in the average prices of oil and
gas sold, approximately $18,000 was related to a decrease in volumes of
oil sold, and approximately $25,000 was related to an increase in
production expenses incurred by the owners of the Working Interests. These
decreases were partially offset by an increase of approximately $79,000
related to an increase in volumes of gas sold. Volumes of oil sold
decreased 1,161 barrels while volumes of gas sold increased 40,112 Mcf for
the six months ended June 30, 1999 as compared to the six months ended
June 30, 1998. The increase in volumes of gas sold was primarily due to
(i) a positive prior period volume adjustment made by the operator during
the six months ended June 30, 1999 due to the payout of one significant
well, (ii) the successful recompletion of one well during the fourth
quarter of 1998, and (iii) increased production on one significant well
due to repairs made during 1998. The increase in production expenses was
primarily due to (i) ad valorem taxes paid during the six months ended
June 30, 1999, (ii) workover expenses incurred on one significant well
during the six months ended June 30, 1999 in order to improve the recovery
of reserves, and (iii) lease operating expenses paid during the six months
ended June 30, 1999 related to prior periods on the well which reached
payout. Average oil and gas prices decreased to $12.42 per barrel and
$1.64 per Mcf, respectively, for the six months ended June 30, 1999 from
$15.08 per barrel and $1.96 per Mcf, respectively, for the six months
ended June 30, 1998.
The P-1 Partnership sold certain Net Profits Interests during the six
months ended June 30, 1999 and recognized a $698 gain on such sales. Sales
of Net Profits Interests during the six months ended June 30, 1998
resulted in the P-1 Partnership recognizing similar gains of $475,798.
-33-
<PAGE>
Depletion of Net Profits Interests increased $3,469 (3.0%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of Net Profits, this expense increased to 33.0% for
the six months ended June 30, 1999 from 26.9% for the six months ended
June 30, 1998. This percentage increase was primarily due to the decreases
in the average prices of oil and gas sold.
General and administrative expenses increased $1,299 (1.9%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of Net Profits, these expenses increased to 19.3%
for the six months ended June 30, 1999 from 15.9% for the six months ended
June 30, 1998. This percentage increase was primarily due to the decrease
in Net Profits.
Cumulative cash distributions to the Limited Partners through June 30,
1999 were $11,686,558 or 108.13% of the Limited Partners' capital
contributions.
P-2 PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1998.
Three Months Ended June 30,
---------------------------
1999 1998
-------- --------
Net Profits $161,948 $153,230
Barrels produced 4,545 5,581
Mcf produced 69,686 59,874
Average price/Bbl $ 14.93 $ 15.84
Average price/Mcf $ 1.95 $ 1.89
As shown in the table above, total Net Profits increased $8,718 (5.7%) for
the three months ended June 30, 1999 as compared to the three months ended
June 30, 1998. Of this increase, approximately $18,000 was related to an
increase in volumes of gas sold, approximately $4,000 was related to an
increase in the average price of gas sold, and approximately $7,000 was
related to a decrease in production expenses incurred by the owners of the
Working Interests. These increases were partially offset by decreases of
approximately (i) $16,000 related to a decrease in volumes of oil sold and
(ii) $4,000 related to a decrease in the average price of oil sold.
Volumes of oil sold decreased 1,036 barrels while volumes of gas sold
increased 9,812 Mcf for the three months ended June 30, 1999 as compared
to the three months ended June 30, 1998. The decrease in volumes of oil
sold was primarily due to a positive prior period volume adjustment made
by the purchaser on several wells during the three months ended June 30,
1998. The increase
-34-
<PAGE>
in volumes of gas sold was primarily due to (i) the successful
recompletion of another significant well during the fourth quarter of 1998
and (ii) increased production on another significant well due to repairs
made during 1998. The decrease in production expenses was primarily due to
(i) a negative prior period adjustment of production taxes made by the
operator on one significant well during the three months ended June 30,
1999 and (ii) workover expenses incurred during the three months ended
June 30, 1998 on two significant wells in order to improve the recovery of
reserves. Average gas prices decreased to $14.93 per barrel for the three
months ended June 30, 1999 from $15.84 per barrel for the three months
ended June 30, 1998. Average gas prices increased to $1.95 per Mcf for the
three months ended June 30, 1999 from $1.89 per Mcf for the three months
ended June 30, 1998.
The P-2 Partnership sold certain Net Profits Interests during the three
months ended June 30, 1999 and recognized a $198 gain on such sales. Sales
of Net Profits Interests during the three months ended June 30, 1998
resulted in the P-2 Partnership recognizing similar gains of $196,830.
Depletion of Net Profits Interests decreased $333 (0.8%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of Net Profits, this expense decreased to 25.5% for
the three months ended June 30, 1999 from 27.2% for the three months ended
June 30, 1998.
General and administrative expenses increased $237 (0.9%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of Net Profits, these expenses decreased to 15.6%
for the three months ended June 30, 1999 from 16.3% for the three months
ended June 30, 1998.
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1998.
Six Months Ended June 30,
-------------------------
1999 1998
-------- --------
Net Profits $282,253 $321,188
Barrels produced 9,887 10,522
Mcf produced 164,628 133,377
Average price/Bbl $ 12.42 $ 15.04
Average price/Mcf $ 1.71 $ 1.98
As shown in the table above, total Net Profits decreased $38,935 (12.1%)
for the six months ended June 30, 1999 as compared to the six months ended
June 30, 1998. Of this decrease, approximately $26,000 and $44,000,
respectively,
-35-
<PAGE>
were related to decreases in the average prices of oil and gas sold,
approximately $10,000 was related to a decrease in volumes of oil sold,
and approximately $21,000 was related to an increase in production
expenses incurred by the owners of the Working Interests. These decreases
were partially offset by an increase of approximately $62,000 related to
an increase in volumes of gas sold. Volumes of oil sold decreased 635
barrels while volumes of gas sold increased 31,251 Mcf for the six months
ended June 30, 1999 as compared to the six months ended June 30, 1998. The
increase in volumes of gas sold was primarily due to (i) a positive prior
period volume adjustment made by the operator during the six months ended
June 30, 1999 due to the payout of one significant well, (ii) the
successful recompletion of one significant well during the fourth quarter
of 1998, and (iii) increased production on another significant well due to
repairs made during 1998. The increase in production expenses was
primarily due to (i) ad valorem taxes paid during the six months ended
June 30, 1999, (ii) workover expenses incurred on one significant well
during the six months ended June 30, 1999 in order to improve the recovery
of reserves, and (iii) lease operating expenses paid during the six months
ended June 30, 1999 related to prior periods on the well which reached
payout. Average oil and gas prices decreased to $12.42 per barrel and
$1.71 per Mcf, respectively, for the six months ended June 30, 1999 from
$15.04 per barrel and $1.98 per Mcf, respectively, for the six months
ended June 30, 1998.
The P-2 Partnership sold certain Net Profits Interests during the six
months ended June 30, 1999 and recognized a $652 gain on such sales. Sales
of Net Profits Interests during the six months ended June 30, 1998
resulted in the P-2 Partnership recognizing similar gains of $255,015.
Depletion of Net Profits Interests increased $7,777 (8.9%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of Net Profits, this expense increased to 33.9% for
the six months ended June 30, 1999 from 27.3% for the six months ended
June 30, 1998. This percentage increase was primarily due to the decreases
in the average prices of oil and gas sold.
General and administrative expenses increased $982 (1.7%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of Net Profits, these expenses increased to 20.2%
for the six months ended June 30, 1999 from 17.5% for the six months ended
June 30, 1998. This percentage increase was primarily due to the decrease
in Net Profits.
Cumulative cash distributions to the Limited Partners through June 30,
1999 were $8,883,561 or 98.60% of the Limited Partners' capital
contributions.
-36-
<PAGE>
P-3 PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1998.
Three Months Ended June 30,
---------------------------
1999 1998
-------- --------
Net Profits $306,585 $284,321
Barrels produced 8,483 10,316
Mcf produced 132,329 112,015
Average price/Bbl $ 14.88 $ 15.84
Average price/Mcf $ 1.95 $ 1.89
As shown in the table above, total Net Profits increased $22,264 (7.8%)
for the three months ended June 30, 1999 as compared to the three months
ended June 30, 1998. Of this increase, approximately $38,000 was related
to an increase in volumes of gas sold, approximately $9,000 was related to
an increase in the average price of gas sold, and approximately $12,000
was related to a decrease in production expenses incurred by the owners of
the Working Interests. These increases were partially offset by a decrease
of approximately $29,000 related to a decrease in volumes of oil sold and
a decrease of approximately $8,000 related to a decrease in the average
price of oil sold. Volumes of oil sold decreased 1,833 barrels while
volumes of gas sold increased 20,314 Mcf for the three months ended June
30, 1999 as compared to the three months ended June 30, 1998. The decrease
in volumes of oil sold was primarily due to a positive prior period volume
adjustment made by the purchaser on several wells during the three months
ended June 30, 1998. The increase in volumes of gas sold was primarily due
to (i) the successful recompletion of one significant well during the
fourth quarter of 1998 and (ii) increased production on one significant
well due to repairs made during 1998. The decrease in production expenses
was primarily due to (i) a negative prior period adjustment of production
taxes on one significant well during the three months ended June 30, 1999
and (ii) workover expenses incurred on two significant wells during the
three months ended June 30, 1998 in order to improve the recovery of
reserves. Average oil prices decreased to $14.88 per barrel for the three
months ended June 30, 1999 from $15.84 per barrel for the three months
ended June 30, 1998. Average gas prices increased to $1.95 per Mcf for the
three months ended June 30, 1999 from $1.89 per Mcf for the three months
ended June 30, 1998.
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<PAGE>
The P-3 Partnership sold certain Net Profits Interests during the three
months ended June 30, 1999 and recognized a $415 gain on such sales. Sales
of Net Profits Interests during the three months ended June 30, 1998
resulted in the P-1 Partnership recognizing similar gains of $497,106.
Depletion of Net Profits Interests increased $787 (1.0%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of Net Profits, this expense decreased to 25.5% for
the three months ended June 30, 1999 from 27.2% for the three months ended
June 30, 1998.
General and administrative expenses increased $413 (0.9%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of Net Profits, these expenses decreased to 15.5%
for the three months ended June 30, 1999 from 16.6% for the three months
ended June 30, 1998.
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1998.
Six Months Ended June 30,
-------------------------
1999 1998
-------- --------
Net Profits $529,764 $597,661
Barrels produced 18,350 19,459
Mcf produced 309,312 249,200
Average price/Bbl $ 12.41 $ 15.04
Average price/Mcf $ 1.71 $ 1.98
As shown in the table above, total Net Profits decreased $67,897 (11.4%)
for the six months ended June 30, 1999 as compared to the six months ended
June 30, 1998. Of this decrease, approximately $48,000 and $83,000,
respectively, were related to decreases in the average prices of oil and
gas sold, approximately $17,000 was related to a decrease in volumes of
oil sold, and approximately $39,000 was related to an increase in
production expenses incurred by the owners of the Working Interests. These
decreases were partially offset by an increase of approximately $119,000
related to an increase in volumes of gas sold. Volumes of oil sold
decreased 1,109 barrels while volumes of gas sold increased 60,112 Mcf for
the six months ended June 30, 1999 as compared to the six months ended
June 30, 1998. The increase in volumes of gas sold was primarily due to
(i) a positive prior period volume adjustment made by the operator during
the six months ended June 30, 1999 due to the payout of one significant
well, (ii) the successful recompletion of one significant well during the
fourth quarter of 1998, and (iii) increased production on one significant
well due to
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<PAGE>
repairs made during 1998. The increase in production expenses was
primarily due to (i) ad valorem taxes paid during the six months ended
June 30, 1999, (ii) workover expenses on one significant well incurred
during the six months ended June 30, 1999 in order to improve the recovery
of reserves, and (iii) lease operating expenses paid during the six months
ended June 30, 1999 related to prior periods on the well which reached
payout. Average oil and gas prices decreased to $12.41 per barrel and
$1.71 per Mcf, respectively, for the six months ended June 30, 1999 from
$15.04 per barrel and $1.98 per Mcf, respectively, for the six months
ended June 30, 1998.
The P-3 Partnership sold certain Net Profits Interests during the six
months ended June 30, 1999 and recognized a $1,252 gain on such sales.
Sales of Net Profits Interests during the six months ended June 30, 1998
resulted in the P-3 Partnership recognizing similar gains of $605,649.
Depletion of Net Profits Interests increased $16,100 (9.9%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of Net Profits, this expense increased to 33.8% for
the six months ended June 30, 1999 from 27.2% for the six months ended
June 30, 1998. This percentage increase was primarily due to the decreases
in the average prices of oil and gas sold.
General and administrative expenses increased $1,719 (1.6%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of Net Profits, these expenses increased to 20.3%
for the six months ended June 30, 1999 from 17.7% for the six months ended
June 30, 1998. This percentage increase was primarily due to the decrease
in Net Profits.
Cumulative cash distributions to the Limited Partners through June 30,
1999 were $16,055,401 or 94.65% of the Limited Partners' capital
contributions.
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<PAGE>
P-4 PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1998.
Three Months Ended June 30,
---------------------------
1999 1998
-------- --------
Net Profits $201,247 $178,254
Barrels produced 4,444 4,443
Mcf produced 89,014 93,251
Average price/Bbl $ 15.05 $ 12.29
Average price/Mcf $ 2.21 $ 2.25
As shown in the table above, total Net Profits increased $22,993 (12.9%)
for the three months ended June 30, 1999 as compared to the three months
ended June 30, 1998. Of this increase, approximately $24,000 was related
to a decrease in production expenses incurred by the owners of the Working
Interests and approximately $12,000 was related to an increase in the
average price of oil sold. These increases were partially offset by
decreases of approximately (i) $10,000 related to a decrease in volumes of
gas sold and (ii) $4,000 related to a decrease in the average price of gas
sold. Volumes of oil sold increased 1 barrel while volumes of gas sold
decreased 4,237 Mcf for the three months ended June 30, 1999 as compared
to the three months ended June 30, 1998. The decrease in production
expenses was primarily due to (i) workover expenses incurred on several
wells during the three months ended June 30, 1998 in order to improve the
recovery of reserves, (ii) ad valorem taxes paid during the three months
ended June 30, 1998, and (iii) a general decrease in lease operating
expenses. Average oil prices increased to $15.05 per barrel for the three
months ended June 30, 1999 from $12.29 per barrel for the three months
ended June 30, 1998. Average gas prices decreased to $2.21 per Mcf for the
three months ended June 30, 1999 from $2.25 per Mcf for the three months
ended June 30, 1998.
Depletion of Net Profits Interests decreased $7,782 (12.5%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. This decrease was primarily due to (i) the decrease in volumes of
gas sold and (ii) upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1998. As a percentage of Net Profits, this
expense decreased to 27.0% for the three months ended June 30, 1999 from
34.9% for the three months ended June 30, 1998. This percentage decrease
was primarily due to the increase in the average price of oil sold.
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<PAGE>
General and administrative expenses decreased $58 (0.2%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of Net Profits, these expenses decreased to 17.4%
for the three months ended June 30, 1999 from 19.7% for the three months
ended June 30, 1998. This percentage decrease was primarily due to the
increase in Net Profits.
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1998.
Six Months Ended June 30,
-------------------------
1999 1998
-------- --------
Net Profits $330,628 $418,646
Barrels produced 9,077 9,276
Mcf produced 188,634 198,128
Average price/Bbl $ 12.93 $ 13.48
Average price/Mcf $ 1.92 $ 2.23
As shown in the table above, total Net Profits decreased $88,018 (21.0%)
for the six months ended June 30, 1999 as compared to the six months ended
June 30, 1998. Of this decrease, approximately $58,000 was related to a
decrease in the average price of gas sold and approximately $21,000 was
related to a decrease in volumes of gas sold. Volumes of oil and gas sold
decreased 199 barrels and 9,494 Mcf, respectively, for the six months
ended June 30, 1999 as compared to the six months ended June 30, 1998.
Average oil and gas prices decreased to $12.93 per barrel and $1.92 per
Mcf, respectively, for the six months ended June 30, 1999 from $13.48 per
barrel and $2.23 per Mcf, respectively, for the six months ended June 30,
1998.
Depletion of Net Profits Interests decreased $17,289 (13.1%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. This decrease was primarily due to (i) the decreases in volumes of
oil and gas sold and (ii) upward revisions in the estimates of remaining
oil and gas reserves at December 31, 1998. As a percentage of Net Profits,
this expense increased to 34.6% for the six months ended June 30, 1999
from 31.4% for the six months ended June 30, 1998. This percentage
increase was primarily due to the decreases in the average prices of oil
and gas sold.
General and administrative expenses increased $935 (1.2%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of Net Profits, these expenses increased to 24.1%
for the six months ended June 30, 1999 from 18.8% for the six months
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<PAGE>
ended June 30, 1998. This percentage increase was primarily due to the
decrease in Net Profits.
Cumulative cash distributions to the Limited Partners through June 30,
1999 were $12,368,945 or 97.93% of the Limited Partners' capital
contributions.
P-5 PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1998.
Three Months Ended June 30,
---------------------------
1999 1998
-------- --------
Net Profits $199,402 $182,110
Barrels produced 2,396 1,605
Mcf produced 115,648 133,220
Average price/Bbl $ 15.29 $ 12.26
Average price/Mcf $ 1.89 $ 1.68
As shown in the table above, total Net Profits increased $17,292 (9.5%)
for the three months ended June 30, 1999 as compared to the three months
ended June 30, 1998. Of this increase, approximately $10,000 was related
to an increase in volumes of oil sold, approximately $7,000 and $24,000,
respectively, were related to increases in the average prices of oil and
gas sold, and approximately $6,000 was related to a decrease in production
expenses incurred by the owners of the Working Interests. These increases
were partially offset by a decrease of approximately $30,000 related to a
decrease in volumes of gas sold. Volumes of oil sold increased 791 barrels
while volumes of gas sold decreased 17,572 Mcf for the three months ended
June 30, 1999 as compared to the three months ended June 30, 1998. The
increase in volumes of oil sold was primarily due to the receipt of
revenues on a well which paid out in late 1998. The decrease in volumes of
gas sold was primarily due to positive prior period volume adjustments
made by the purchasers on two significant wells during the three months
ended June 30, 1998. The decrease in production expenses was primarily due
to repair and maintenance expenses incurred on several wells during the
six months ended June 30, 1998. Average oil and gas prices increased to
$15.29 per barrel and $1.89 per Mcf, respectively, for the three months
ended June 30, 1999 from $12.26 per barrel and $1.68 per Mcf,
respectively, for the three months ended June 30, 1998.
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.
No such gains were recognized
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<PAGE>
on sales of Net Profits Interests during the three months ended June 30,
1999.
Depletion of Net Profits Interests decreased $9,853 (16.0%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. This decrease was primarily due to (i) the decrease in volumes of
gas sold and (ii) one significant well being fully depleted in 1998 due to
the lack of remaining reserves. As a percentage of Net Profits, this
expense decreased to 25.9% for the three months ended June 30, 1999 from
33.7% for the three months ended June 30, 1998. This percentage decrease
was primarily due to the increases in the average prices of oil and gas
sold.
General and administrative expenses increased $301 (0.9%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of Net Profits, these expenses decreased to 16.6%
for the three months ended June 30, 1999 from 18.0% for the three months
ended June 30, 1998.
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1998.
Six Months Ended June 30,
-------------------------
1999 1998
-------- --------
Net Profits $343,845 $430,496
Barrels produced 3,961 3,400
Mcf produced 240,919 257,793
Average price/Bbl $ 13.79 $ 14.99
Average price/Mcf $ 1.68 $ 2.00
As shown in the table above, total Net Profits decreased $86,651 (20.1%)
for the six months ended June 30, 1999 as compared to the six months ended
June 30, 1998. Of this decrease, approximately $77,000 was related to a
decrease in the average price of gas sold and approximately $34,000 was
related to a decrease in volumes of gas sold. These decreases were
partially offset by an increase of approximately $20,000 related to a
decrease in production expenses incurred by the owners of the Working
Interests. Volumes of oil sold increased 561 barrels while volumes of gas
sold decreased 16,874 Mcf for the six months ended June 30, 1999 as
compared to the six months ended June 30, 1998. The increase in volumes of
oil sold was primarily due to the receipt of revenues on a well which paid
out in late 1998. The decrease in production expenses was primarily due to
(i) a decrease in production taxes associated with the decrease in Net
Profits, (ii) a decrease in ad valorem taxes paid on one significant well
during the six months ended June 30,
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<PAGE>
1999 as compared to the six months ended June 30, 1998, and (iii) repair
and maintenance expenses incurred on one significant well during the six
months ended June 30, 1998. Average oil and gas prices decreased to $13.79
per barrel and $1.68 per Mcf, respectively, for the six months ended June
30, 1999 from $14.99 per barrel and $2.00 per Mcf, respectively, for the
six months ended June 30, 1998.
The P-5 Partnership sold certain Net Profits Interests during the six
months ended June 30, 1998 and recognized a $340,014 gain of such sales.
No such gains were recognized on sales of Net Profits Interests during the
six months ended June 30, 1999.
Depletion of Net Profits Interests decreased $14,633 (12.2%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. This decrease was primarily due to (i) the decrease in volumes of
gas sold and (ii) one significant well being fully depleted in 1998 due to
the lack of remaining reserves. As a percentage of Net Profits, this
expense increased to 30.5% for the six months ended June 30, 1999 from
27.8% for the six months ended June 30, 1998. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold.
General and administrative expenses increased $1,244 (1.7%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of Net Profits, these expenses increased to 21.8%
for the six months ended June 30, 1999 from 17.1% for the six months ended
June 30, 1998. This percentage increase was primarily due to the decrease
in Net Profits.
Cumulative cash distributions to the Limited Partners through June 30,
1999 were $7,686,759 or 64.90% of the Limited Partners' capital
contributions.
P-6 PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1998.
Three Months Ended June 30,
---------------------------
1999 1998
-------- --------
Net Profits $348,435 $279,345
Barrels produced 6,524 3,236
Mcf produced 207,505 226,194
Average price/Bbl $ 13.61 $ 11.89
Average price/Mcf $ 1.91 $ 1.78
As shown in the table above, total Net Profits increased $69,090 (24.7%)
for the three months ended June 30, 1999 as
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<PAGE>
compared to the three months ended June 30, 1998. Of this increase,
approximately $11,000 and $25,000, respectively, were related to increases
in the average prices of oil and gas sold, approximately $39,000 was
related to an increase in volumes of oil sold, and approximately $27,000
was related to a decrease in production expenses incurred by owners of the
Working Interests. These increases were partially offset by a decrease of
approximately $33,000 related to a decrease in volumes of gas sold.
Volumes of oil sold increased 3,288 barrels while volumes of gas sold
decreased 18,689 Mcf for the three months ended June 30, 1999 as compared
to the three months ended June 30, 1998. The increase in volumes of oil
sold was primarily due to (i) the receipt of revenues on a well which paid
out in late 1998, (ii) the sale of oil on several wells which had
previously been curtailed due to low oil prices, and (iii) the successful
recompletion of one well in 1998. The decrease in production expenses was
primarily due to (i) a decrease in ad valorem taxes paid on two
significant wells during the three months ended June 30, 1999 and (ii) a
decrease in repair and maintenance expenses incurred on two significant
wells during the three months ended June 30, 1999 as compared to the three
months ended June 30, 1998. Average oil and gas prices increased to $13.61
per barrel and $1.91 per Mcf, respectively, for the three months ended
June 30, 1999 from $11.89 per barrel and $1.78 per Mcf, respectively, for
the three months ended June 30, 1998.
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. No
such gains were recognized on sales of Net Profits Interests during the
three months ended June 30, 1999.
Depletion of Net Profits Interests decreased $393 (0.4%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of Net Profits, this expense decreased to 29.0% for
the three months ended June 30, 1999 from 36.3% for the three months ended
June 30, 1998. This percentage decrease was primarily due to the increases
in the average prices of oil and gas sold.
General and administrative expenses increased $419 (1.1%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of Net Profits, these expenses decreased to 11.6%
for the three months ended June 30, 1999 from 14.3% for the three months
ended June 30, 1998. This percentage decrease was primarily due to the
increase in Net Profits.
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<PAGE>
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1998.
Six Months Ended June 30,
-------------------------
1999 1998
-------- --------
Net Profits $555,979 $617,373
Barrels produced 9,238 6,897
Mcf produced 442,608 438,770
Average price/Bbl $ 12.77 $ 14.10
Average price/Mcf $ 1.65 $ 1.92
As shown in the table above, total Net Profits decreased $61,394 (9.9%)
for the six months ended June 30, 1999 as compared to the six months ended
June 30, 1998. Of this decrease, approximately $12,000 and $119,000,
respectively, were related to decreases in the average prices of oil and
gas sold, which decreases were partially offset by increases of
approximately $33,000 and $7,000, respectively, related to increases in
volumes of oil and gas sold and an increase of approximately $29,000
related to a decrease in production expenses incurred by the owners of the
Working Interests. Volumes of oil and gas sold increased 2,341 barrels and
3,838 Mcf, respectively, for the six months ended June 30, 1999 as
compared to the six months ended June 30, 1998. The increase in volumes of
oil sold was primarily due to (i) the receipt of revenues on a well which
paid out in late 1998, (ii) the sale of oil on several wells which had
previously been curtailed due to low oil prices, and (iii) the successful
recompletion of one well in 1998. The decrease in production expenses was
primarily due to (i) a decrease in production taxes associated with the
decrease in Net Profits and (ii) a decrease in ad valorem taxes paid on
three significant wells during the six months ended June 30, 1999. Average
oil and gas prices decreased to $12.77 per barrel and $1.65 per Mcf,
respectively, for the six months ended June 30, 1999 from $14.10 per
barrel and $1.92 per Mcf, respectively, for the six months ended June 30,
1998.
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.
No such gains were recognized on sales of Net Profits Interests during the
six months ended June 30, 1999.
Depletion of Net Profits Interests increased $5,733 (2.9%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of Net Profits, this expense increased to 36.7% for
the six months ended June 30, 1999 from 32.1% for the six months ended
June 30, 1998. This percentage increase was primarily due to the decreases
in the average prices of oil and gas sold.
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<PAGE>
General and administrative expenses increased $1,533 (1.7%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of Net Profits, these expenses increased to 16.3%
for the six months ended June 30, 1999 from 14.5% for the six months ended
June 30, 1998. This percentage increase was primarily due to the decrease
in Net Profits.
Cumulative cash distributions to the Limited Partners through June 30,
1999 were $10,268,248 or 71.79% of the Limited Partners' capital
contributions.
YEAR 2000 COMPUTER ISSUES
- -------------------------
IN GENERAL
The Year 2000 Issue ("Y2K") refers to the inability of computer and other
information technology systems to properly process date and time
information, stemming from the earlier programming practice of using two
digits rather than four to represent the year in a date. For example,
computer programs and imbedded chips that are date sensitive may recognize
a date using (00) as the year 1900 rather than the year 2000. The
consequence of Y2K is that computer and imbedded processing systems may be
at risk of malfunctioning, particularly during the transition from 1999 to
2000.
The effects of Y2K are exacerbated by the interdependence of computer and
telecommunication systems throughout the world. This interdependence also
exists among the Partnerships, Samson Investment Company and its
affiliates ("Samson"), and their vendors, customers, and business
partners, as well as with regulators. The potential risks associated with
Y2K for an oil and gas production company fall into three general areas:
(i) financial, leasehold and administrative computer systems, (ii)
imbedded systems in field process control units, and (iii) third party
exposures. As discussed below, General Partner does not believe that these
risks will be material to the Partnerships' operations.
The Partnerships' business is producing oil and gas. The day-to-day
production of the Partnerships' oil and gas is not dependent on computers
or equipment with imbedded chips. As further discussed below, management
anticipates that the Partnerships' daily business activities will not be
materially affected by Y2K.
The Partnerships rely on Samson to provide all of their operational and
administrative services on either a direct or indirect basis. Samson is
addressing each of the three
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<PAGE>
Y2K areas discussed above through a readiness process that seeks to:
1. increase the awareness of the issue among key employees;
2. identify areas of potential risk;
3. assess the relative impact of these risks and Samson's ability to
manage them; and
4. remediate these risks on a priority basis wherever possible.
One of Samson Investment Company's Executive Vice Presidents is
responsible for communicating to its Board of Directors Y2K actions and
for the ultimate implementation of its Y2K plan. He has delegated to
Samson Investment Company's Senior Vice President-Technology and
Administrative Services principal responsibility
for ensuring Y2K compliance within Samson.
Samson has been planning for the impact of Y2K on its information
technology systems since 1993. As of July 15, 1999, Samson is in the final
stages of implementation of a Y2K plan, as summarized below:
FINANCIAL AND ADMINISTRATIVE SYSTEMS
1. Awareness. Samson has alerted its officers, managers and supervisors of
Y2K issues and asked them to have their employees participate in the
identification of potential Y2K risks which might otherwise go unnoticed
by higher level employees and officers. As a result, awareness of the
issue is considered high.
2. Risk Identification. Samson's most significant financial and
administrative systems exposure is the Y2K status of the accounting and
land administration system used to collect and manage data for internal
management decision making and for external revenue and accounts payable
purposes. Other concerns include network hardware and software, desktop
computing hardware and software, telecommunications, and office space
readiness.
3. Risk Assessment. The failure to identify and correct a material Y2K
problem could result in inaccurate or untimely financial information for
management decision-making or cash flow and payment purposes, including
maintaining oil and gas leases.
4. Remediation. Since 1993, Samson has been upgrading its accounting and
land administration software. Substantially all of the Y2K upgrades have
been completed, with the remainder scheduled to be completed during the
3rd quarter of 1999. In addition, in 1997 and 1998 Samson replaced or
applied software patches to substantially all of its network
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<PAGE>
and desktop software applications and believes them to be generally Y2K
compliant. Additional patches or software upgrades will be applied no
later than September 30, 1999 to complete this process. The costs of all
such risk assessments and remediation are not expected to be material to
the Partnerships.
5. Contingency Planning. Notwithstanding the foregoing, should there be
significant unanticipated disruptions in Samson's financial and
administrative systems, all of the accounting processes that are currently
automated will need to be performed manually. Samson has communicated to
its management team the importance of having adequate staff available to
manually perform necessary functions to minimize disruptions.
IMBEDDED SYSTEMS
1. Awareness. Samson's Y2K program has involved all levels of field
personnel from production foremen and higher. Employees at all levels of
the organization have been asked to participate in the identification of
potential Y2K risks, which might otherwise go unnoticed by higher level
employees and officers of Samson, and as a result, awareness of the issue
is considered high.
2. Risk Identification. Samson has inventoried all possible exposures to
imbedded chips and systems. Such exposures can be classified as either (i)
oil and gas production and processing equipment or (ii) office machines
such as faxes, copiers, phones, etc.
With respect to oil and gas production and processing equipment, neither
Samson nor the Partnerships operate offshore wells, significant processing
plants, or wells with older electronic monitoring systems. As a result,
Samson's inventory identified less than 10 applications using imbedded
chips. All of these have been tested by the respective vendors and have
been found to be Y2K compliant or have been upgraded or replaced.
Office machines have been tested by Samson and vendors and are believed to
be compliant.
3. Risk Assessment and Remediation. The failure to identify and correct a
material Y2K problem in an imbedded system could result in outcomes
ranging from errors in data reporting to curtailments or shutdowns in
production. As noted above, Samson has identified less than 10 imbedded
system applications all of which have been made compliant or replaced.
None of these applications are believed to be material to Samson or the
Partnerships. Samson believes
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<PAGE>
that sufficient manual processes are available to minimize any field level
risk and that there will be no material impact on the Partnerships with
respect to these applications.
4. Contingency Planning. Should material production disruptions occur as a
result of Y2K failures in field operations, Samson will utilize its
existing field personnel in an attempt to avoid any material impact on
operating cash flow. Samson is not able to quantify any potential exposure
in the event of systems failure or inadequate manual alternatives.
THIRD PARTY EXPOSURES
1. Awareness. Samson has advised management to consider Y2K implications
with its outside vendors, customers, and business partners. Management has
been asked to participate in the identification of potential third party
Y2K risks and, as a result, awareness of the issue is considered high.
2. Risk Identification. Samson's most significant third party Y2K exposure
is its dependence on third parties for the receipt of revenues from oil
and gas sales. However, virtually all of these purchasers are very large
and sophisticated companies. Other Y2K concerns include the availability
of electric power to Samson's field operations, the integrity of
telecommunication systems, and the readiness of commercial banks to
execute electronic fund transfers.
3. Risk Assessment. Because of the high awareness of the Y2K problem in
the U.S., Samson has not undertaken and does not plan to undertake a
formal company wide plan to make inquiries of third parties on the subject
of Y2K readiness. If it did so, Samson has no ability to require responses
to such inquiries or to independently verify their accuracy. Samson has,
however, received oral assurances from its significant oil and gas
purchasers of Y2K compliance. If significant disruptions from major
purchasers were to occur, however, there could be a material and adverse
impact on the Partnerships' results of operations, liquidity, and
financial conditions.
It is important to note that third party oil and gas purchasers have
significant incentives to avoid disruptions arising from a Y2K failure.
For example, most of these parties are under contractual obligations to
purchase oil and gas or disperse revenues to Samson. The failure to do so
will result in contractual and statutory penalties. Therefore, Samson
believes that it is unlikely that there will be material third party
non-compliance with purchase and remittance obligations as a result of Y2K
issues.
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<PAGE>
4. Remediation. Where Samson perceives significant risk of Y2K
non-compliance that may have a material impact on it, and where the
relationship between Samson and a vendor, customer, or business partner
permits, joint testing may be undertaken during the remainder of 1999 to
further identify these risks.
5. Contingency Planning. In the unlikely event that material production
disruptions occur as a result of Y2K failures of third parties, the
Partnerships' operating cash flow could be impacted. This contingency will
be factored into deliberations on the level of quarterly cash
distributions paid out during any such period of cash flow disruption.
-51-
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
-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, 1999 and
for the six months ended June 30, 1999, filed herewith.
27.2 Financial Data Schedule containing summary financial information extracted
from the P-2 Partnership's financial statements as of June 30, 1999 and
for the six months ended June 30, 1999, filed herewith.
27.3 Financial Data Schedule containing summary financial information extracted
from the P-3 Partnership's financial statements as of June 30, 1999 and
for the six months ended June 30, 1999, filed herewith.
27.4 Financial Data Schedule containing summary financial information extracted
from the P-4 Partnership's financial statements as of June 30, 1999 and
for the six months ended June 30, 1999, filed herewith.
27.5 Financial Data Schedule containing summary financial information extracted
from the P-5 Partnership's financial statements as of June 30, 1999 and
for the six months ended June 30, 1999, filed herewith.
27.6 Financial Data Schedule containing summary financial information extracted
from the P-6 Partnership's financial statements as of June 30, 1999 and
for the six months ended June 30, 1999, 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 12, 1999 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: August 12, 1999 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, 1999 and
for the six months ended June 30, 1999,
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, 1999 and
for the six months ended June 30, 1999,
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, 1999
and for the six months ended June 30, 1999,
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, 1999
and for the six months ended June 30, 1999,
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, 1999
and for the six months ended June 30, 1999,
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, 1999
and for the six months ended June 30, 1999,
filed herewith.
All other exhibits are omitted as inapplicable.
-55-
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000850427
<NAME> GEODYNE INSTIT/PENSION ENERGY INCOME LTD PSHIP P-1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 114,318
<SECURITIES> 0
<RECEIVABLES> 151,726
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 266,044
<PP&E> 6,908,373
<DEPRECIATION> 5,857,593
<TOTAL-ASSETS> 1,316,824
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,316,824
<TOTAL-LIABILITY-AND-EQUITY> 1,316,824
<SALES> 355,654
<TOTAL-REVENUES> 358,296
<CGS> 0
<TOTAL-COSTS> 185,837
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 172,459
<INCOME-TAX> 0
<INCOME-CONTINUING> 172,459
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 172,459
<EPS-BASIC> 1.34
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000850428
<NAME> GEODYNE INSTIT/PENSION ENERGY INCOME LTD PSHP P-2
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 96,402
<SECURITIES> 0
<RECEIVABLES> 129,570
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 225,972
<PP&E> 5,581,910
<DEPRECIATION> 4,672,880
<TOTAL-ASSETS> 1,135,002
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,135,002
<TOTAL-LIABILITY-AND-EQUITY> 1,135,002
<SALES> 282,253
<TOTAL-REVENUES> 284,421
<CGS> 0
<TOTAL-COSTS> 152,681
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 131,740
<INCOME-TAX> 0
<INCOME-CONTINUING> 131,740
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 131,740
<EPS-BASIC> 1.35
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000854066
<NAME> GEODYNE INSTIT/PENSION ENERGY INCOME LTD PSHIP P-3
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 182,818
<SECURITIES> 0
<RECEIVABLES> 240,880
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 423,698
<PP&E> 10,505,817
<DEPRECIATION> 8,812,124
<TOTAL-ASSETS> 2,117,391
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,117,391
<TOTAL-LIABILITY-AND-EQUITY> 2,117,391
<SALES> 529,764
<TOTAL-REVENUES> 534,006
<CGS> 0
<TOTAL-COSTS> 286,370
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 247,636
<INCOME-TAX> 0
<INCOME-CONTINUING> 247,636
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 247,636
<EPS-BASIC> 1.35
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000860744
<NAME> GEODYNE INSTIT/PENSION ENERGY INCOME LTD PSHIP P-4
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 125,094
<SECURITIES> 0
<RECEIVABLES> 247,432
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 372,526
<PP&E> 8,197,019
<DEPRECIATION> 7,218,719
<TOTAL-ASSETS> 1,350,826
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,350,826
<TOTAL-LIABILITY-AND-EQUITY> 1,350,826
<SALES> 330,628
<TOTAL-REVENUES> 332,907
<CGS> 0
<TOTAL-COSTS> 193,864
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 139,043
<INCOME-TAX> 0
<INCOME-CONTINUING> 139,043
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 139,043
<EPS-BASIC> 1.01
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000863832
<NAME> GEODYNE INSTIT/PENSION ENERGY INCOME LTD PSHIP P-5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 145,751
<SECURITIES> 0
<RECEIVABLES> 107,684
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 253,435
<PP&E> 9,850,668
<DEPRECIATION> 8,954,021
<TOTAL-ASSETS> 1,150,082
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,150,082
<TOTAL-LIABILITY-AND-EQUITY> 1,150,082
<SALES> 343,845
<TOTAL-REVENUES> 346,458
<CGS> 0
<TOTAL-COSTS> 179,916
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 166,542
<INCOME-TAX> 0
<INCOME-CONTINUING> 166,542
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 166,542
<EPS-BASIC> 1.30
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000869801
<NAME> GEODYNE INSTIT/PENSION ENERGY INCOME LTD PSHIP P-6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 220,717
<SECURITIES> 0
<RECEIVABLES> 172,958
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 393,675
<PP&E> 11,973,175
<DEPRECIATION> 10,101,734
<TOTAL-ASSETS> 2,265,116
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,265,116
<TOTAL-LIABILITY-AND-EQUITY> 2,265,116
<SALES> 555,979
<TOTAL-REVENUES> 560,114
<CGS> 0
<TOTAL-COSTS> 294,986
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 265,128
<INCOME-TAX> 0
<INCOME-CONTINUING> 265,128
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 265,128
<EPS-BASIC> 1.71
<EPS-DILUTED> 0
</TABLE>
