SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report September 29, 1998
Southwest Royalties Institutional Income Fund X-B, L.P.
(Exact name of registrant as specified in
its limited partnership agreement)
Delaware 0-19601
75-2332174
(State or other jurisdiction Commission IRS
Employer
of incorporation) File Number
Identification No.
407 N. Big Spring, Suite 300, Midland, Texas 79701
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (915) 686-9927
None
(Former name or former address, if changed since last report.)
The total number of pages contained in this report is 9.
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Item 2. Acquisition or Disposition of Assets
(a) On September 29, 1998, Southwest Royalties
Institutional Income Fund X-B (the "Registrant") sold
its interest in one oil property to Marathon Oil
Company ("Marathon"), an unrelated party. The
Registrant's interest in the well was sold for net
proceeds, after post closing adjustments, of $167,650.
At December 31, 1997, the property sold to Marathon
contained proved reserves of 75,310 barrels of oil and
had a SEC 10 value of $190,956. The proceeds from the
sale represented 14% of the Registrant's total assets.
Item 7. Financial Statements and Exhibits
(b) Pro Forma Financial Information
The accompanying unaudited pro forma financial
information of the Registrant is presented to reflect
the sale of an oil property on September 29, 1998. The
unaudited pro forma balance sheet is presented as if
the sale of the oil property occurred at the balance
sheet date and the unaudited pro forma statements of
operations are presented as if the sale of the property
occurred on January 1, 1997.
(c) Exhibits
None
<PAGE>
Unaudited Pro Forma Financial Statements
The Unaudited Pro Forma Financial Statements have been
prepared to give effect to the sale of an oil property on
September 29, 1998. The Unaudited Pro Forma Financial Statements
of the Registrant are not necessarily indicative of the financial
results for the periods presented had the sale of the property
taken place on January 1, 1997. In addition, future results may
vary significantly from the results reflected in the accompanying
Unaudited Pro Forma Financial Statements because of normal
production declines and changes in product prices, among other
factors. This information should be read in conjunction with the
Financial Statements of the Registrant (and the related notes)
included in the Annual Report on Form 10-K for the year ended
December 31, 1997 and in the Quarterly Report on Form 10-Q for
the six months ended June 30, 1998.
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Southwest Royalties Institutional Income Fund X-B, L.P.
Unaudited Pro Forma Balance Sheet
As of June 30, 1998
Pro Forma
Historical Entries Pro Forma
----------- --------------------
Assets
Current assets
Cash and cash equivalents $ 38,211 $167,650 (a)$205,861
--------- ---------
Oil and gas properties - using the
full cost method of accounting 4,183,062 (167,650)(a)
4,015,412
Less accumulated depreciation,
depletion and amortization 3,002,196 3,002,196
--------- ---------
Net oil and gas properties 1,180,866
1,013,216
--------- ---------
$1,219,077 $1,219,077
========= =========
Liabilities and Partners' Equity
Current liability
Distribution payable $ 51 $ 51
Payable to Managing General Partner 27,198
27,198
--------- ---------
Total current liabilities 27,249 27,249
--------- ---------
Partners' equity
General partners (31,756) (31,756)
Limited partners 1,223,584 1,223,584
--------- ---------
Total partners' equity 1,191,828 1,191,828
--------- ---------
$1,219,077 $1,219,077
========= =========
See accompanying notes to unaudited pro forma financial
statements.
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Southwest Royalties Institutional Income Fund X-B, L.P.
Unaudited Pro Forma Statement of Operations
Six months ended June 30, 1998
Assets
Historical Sold Pro Forma
----------- --------------------
Revenues
Income from net profits interests $ 21,206 $ 3,946(b)
$ 25,152
Interest 894 - 894
------- ------ -------
22,100 3,945 26,046
------- ------ -------
Expenses
General and administrative 49,430 - 49,430
Depreciation, depletion and
Amortization 98,000 (9,900) (c) 88,100
Provision for impairment of oil
and gas properties 51,105 - 51,105
------- ------ -------
198,535 (9,900) 188,635
------- ------ -------
Net loss $(176,435) $13,846 $(162,589)
======= ====== =======
Net loss allocated to:
Managing General Partner $ (2,460) $(2,105)
======= =======
General Partner $ (273) $ (233)
======= =======
Limited Partners $(173,702) $(160,251)
======= =======
Per limited partner unit $ (15.54) $ (14.33)
======= =======
See accompanying notes to unaudited pro forma financial
statements
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Southwest Royalties Institutional Income Fund X-B, L.P.
Unaudited Pro Forma Statement of Operations
For the year ended December 31, 1997
Assets
Historical Sold Pro Forma
----------- --------------------
Revenues
Income from net profits interests $ 530,113 $ (77,466)
(b) $ 452,647
Interest 4,876 - 4,876
------- ------- -------
534,989 (77,466)
457,523
------- ------- -------
Expenses
General and administrative 80,881 - 80,881
Depreciation, depletion and
Amortization 198,000 (31,700) (c)
166,300
------- ------- -------
278,881 (31,700)
247,181
------- ------- -------
Net income $ 256,108 $(45,766) $
210,342
======= ======= =======
Net income allocated to:
Managing General Partner $ 40,870 $ 33,898
======= =======
General Partner $ 4,541 $ 3,766
======= =======
Limited Partners $ 210,697 $172,678
======= =======
Per limited partner unit $ 18.84 $ 15.44
======= =======
See accompanying notes to unaudited pro forma financial
statements
<PAGE>
Southwest Royalties Institutional Income Fund X-B, L.P.
Notes to Unaudited Pro Forma Financial Statements
December 31, 1997 and June 30, 1998
Note 1: Basis of Presentation
The accompanying unaudited pro forma financial information
of Southwest Royalties Institutional Income Fund X-B, L.P. (the
"Registrant") is presented to reflect the sale of an oil property
to Marathon Oil Company on September 29, 1998 (the "Asset Sold").
The unaudited pro forma balance sheet is presented as if the
Asset Sold occurred at June 30, 1998 and the unaudited pro forma
statements of operations are presented as if the sale of the
Asset Sold occurred on January 1, 1997.
Historical - Represents the Registrant's balance sheet as of
June 30, 1998 and the Registrant's statements of operations
for the six months ended June 30, 1998 and the year ended
December 31, 1997.
Asset Sold - Reflects the results of operations for the six
months ended June 30, 1998 and the year ended December 31,
1997 from the oil property prior to the sale in 1998.
Note 2: Pro Forma Entries
(a) To record the sale of the Asset Sold as if such sale
had occurred on June 30, 1998. The aggregate cash
proceeds of $167,650 were initially utilized to
increase cash and cash equivalents and will be
partially distributed to the partners.
(b) Reflects gross oil sales net of lease operating cost and
production taxes for the Asset Sold for the periods represented.
(c)Depletion for the periods represented was calculated
for the Asset Sold under the units of revenue method.
Under the units of revenue method, depletion is
computed on the basis of current gross revenues from
production in relation to future gross revenues, based
on current prices, from estimated production of proved
oil and gas reserves.
Note 3: Oil and Gas Information
The following unaudited pro forma supplemental information
regarding the oil activities of the Registrant is presented
pursuant to the disclosure requirements promulgated by the
Securities and Exchange Commission and Statement of Financial
Accounting Standard No. 69, "Disclosures About Oil and Gas
Producing Activities". The pro forma combined reserve
information is presented as if the sale of the Asset Sold had
occurred on January 1, 1997. Information for oil is presented in
barrels (bbls).
The Registrant emphasizes that reserve estimates are
inherently imprecise and subject to revision. Accordingly, the
estimates are expected to change as future information becomes
available.
<PAGE>
Southwest Royalties Institutional Income Fund X-B, L.P.
Notes to Unaudited Pro Forma Financial Statements
December 31, 1997 and June 30, 1998
Note 3: Oil and Gas Information - continued
Set forth below is a pro forma summary of the changes in the
net quantities of oil reserves for the year ended December 31,
1997.
Oil (bbls)
----------
Net proved reserves at January 1, 1997 642,000
Revisions of previous estimates
(270,000)
Production (43,000)
Sale of minerals in place (5,000)
-------
Net proved reserves at December 31, 1997 324,000
=======
The pro forma estimated present value of future net revenues
of proved reserves, calculated using December 31, 1997 prices of
$16.88 per barrel of oil, discounted at 10%, was approximately
$1,801,861 at December 31, 1997.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Partnership has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Southwest
Royalties Institutional Income Fund
X-B, L.P.
By:
Southwest Royalties, Inc.
Managing General Partner
By:
/s/ Bill E. Coggin
- -------------------------
Bill E. Coggin
Vice President
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following person
on behalf of the Partnership and in the capacity and on the date
indicated.
Date: December 9, 1998 /s/ Bill E. Coggin
----------------------------------
Bill E. Coggin, Vice President and
Chief Financial Officer
<PAGE>
