United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 0-18329
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0251424
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 200, Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices)
Issuer's telephone number (713) 358-8401
Check whether the issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes x No
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
BALANCE SHEET
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARCH 31,
ASSETS 1997
--------------
(Unaudited)
CURRENT ASSETS:
<S> <C>
Cash $ 62,504
Accounts receivable - oil & gas sales 54,474
Other current assets 2,320
--------------
Total current assets 119,298
--------------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 2,230,368
Less accumulated depreciation and depletion 1,977,358
--------------
Property, net 253,010
--------------
TOTAL $ 372,308
==============
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 71,755
Payable to general partner 10,026
--------------
Total current liabilities 81,781
--------------
PARTNERS' CAPITAL:
Limited partners 268,434
General partner 22,093
--------------
Total partners' capital 290,527
--------------
TOTAL $ 372,308
==============
Number of $500 Limited Partner units outstanding 4,561
</TABLE>
See accompanying notes to financial statements.
- -------------------------------------------------------------------------
I-1
<PAGE>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
STATEMENTS OF OPERATIONS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED) THREE MONTHS ENDED
----------------------------------------
MARCH 31, MARCH 31,
1997 1996
------------------- -------------------
REVENUES:
<S> <C> <C>
Oil and gas sales $ 94,370 $ 74,622
------------------- -------------------
EXPENSES:
Depreciation and depletion 11,714 16,074
Lease operating expenses 46,083 36,476
Production taxes 7,918 5,577
General and administrative 4,016 5,852
------------------- -------------------
Total expenses 69,731 63,979
------------------- -------------------
NET INCOME $ 24,639 $ 10,643
=================== ===================
</TABLE>
See accompanying notes to financial statements.
- ----------------------------------------------------------------------------
I-2
<PAGE>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 1996 AND
FOR THE THREE MONTHS ENDED MARCH 31, 1997
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PER $500
LIMITED
PARTNER
GENERAL LIMITED UNIT OUT-
TOTAL PARTNER PARTNERS STANDING
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C> <C>
BALANCE, JANUARY 1, 1996 $ 301,379 $ 25,787 $ 275,592 $ 61
CASH DISTRIBUTIONS (96,958) (14,757) (82,201) (18)
NET INCOME 108,911 16,054 92,857 20
------------------ ------------------ ------------------ ------------------
BALANCE, DECEMBER 31, 1996 313,332 27,084 286,248 63
CASH DISTRIBUTIONS (47,444) (8,627) (38,817) (9)
NET INCOME 24,639 3,636 21,003 5
------------------ ------------------ ------------------ ------------------
BALANCE, MARCH 31, 1997 $ 290,527 $ 22,093 $ 268,434 (1)$ 59
================== ================== ================== ==================
</TABLE>
(1) Includes 505 units purchased by the general partner as a limited partner.
See accompanying notes to financial statements.
- ------------------------------------------------------------------------------
I-3
<PAGE>
ENEX OIL AND GAS INCOME PROGRAM IV SERIES 5, L.P.
STATEMENTS OF CASH FLOWS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
THREE MONTHS ENDED
------------------------------------------
MARCH 31, MARCH 31,
1997 1996
------------------- -------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 24,639 $ 10,643
------------------- -------------------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and depletion 11,714 16,074
(Increase) decrease in:
Accounts receivable - oil & gas sales 27,634 1,240
Other current assets (4) 361
Increase (Decrease) in:
Accounts payable 13,336 (5,693)
Payable to general partner 9,696 (18,955)
------------------- -------------------
Total adjustments 62,376 (6,973)
------------------- -------------------
Net cash provided by operating activities 87,015 3,670
------------------- -------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs (305) (791)
------------------- -------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (47,444) (6,461)
------------------- -------------------
NET INCREASE (DECREASE) IN CASH 39,266 (3,582)
CASH AT BEGINNING OF YEAR 23,238 21,685
------------------- -------------------
CASH AT END OF PERIOD $ 62,504 $ 18,103
=================== ===================
</TABLE>
See accompanying notes to financial statements.
- -----------------------------------------------------------------------------
I-4
<PAGE>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
1. The interim financial information included herein is unaudited;
however, such information reflects all adjustments (consisting solely
of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of results for the
interim periods.
2. A cash distribution was made to the limited partners of the Company in
the amount of $38,817, representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on January 31, 1997.
3. On April 7, 1997, the Company's General Partner mailed proxy material
to the limited partners with respect to a proposed consolidation of the
Company with 33 other managed limited partnerships. The terms and
conditions of the proposed consolidation are set forth in such proxy
material.
I-5
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation.
First Quarter 1997 Compared to First Quarter 1996
Oil and gas sales for the first quarter increased from $74,622 in 1996 to
$94,370 in 1997. This represents an increase of $19,748 (26%). Oil sales
increased by $2,354 or 7%. A 6% increase in average oil sales prices increased
sales by $1,996. A 1% increase in oil production increased sales by an
additional $358. Gas sales increased by $17,394 or 43%. A 25% increase in
average gas sales prices increased sales by $11,477. A 15% increase in gas
production increased sales by an additional $5,917. The increases in oil and gas
production are primarily due to higher production from the El Mac acquisition
which had an acidization treatment in the third quarter of 1996. The increases
in average prices correspond with higher prices in the overall market for the
sale of oil and gas.
Lease operating expenses increased from $36,476 in the first quarter of 1996 to
$46,083 in the first quarter of 1997. The increase of $9,607 or 26% is due to
the changes in production, noted above.
Depreciation and depletion expense decreased from $16,074 in the first quarter
of 1996 to $11,714 in the first quarter of 1997. This represents a decrease of
$4,360 (27%). A 33% decrease in the depletion rate reduced depreciation and
depletion by $5,718. This decrease was partially offset by the changes in
production, noted above. The rate decrease was primarily the result of an upward
revision of oil and gas reserves during December 1996.
General and administrative expenses decreased from $5,852 in 1996 to $4,016 in
1997. This decrease of $1,836 (31%) is primarily due to less staff time being
required to manage the Company's operations in 1997.
CAPITAL RESOURCES AND LIQUIDITY
The Company's cash flow from operations is a direct result of the amount of net
proceeds realized from the sale of oil and gas production. Accordingly, the
changes in cash flow from 1996 to 1997 are primarily due to the changes in oil
and gas sales described above. It is the general partner's intention to
distribute substantially all of the Company's available cash flow to the
Company's partners. The Company's "available cash flow" is essentially equal to
the net amount of cash provided by operating, financing and investing
activities.
The Company will continue to recover its reserves and distribute to the limited
partners the net proceeds realized from the sale of oil and gas production.
Distribution amounts are subject to change if net revenues are greater or less
than expected. Nonetheless, the general partner believes the Company will
continue to have sufficient cash flow to fund operations and to maintain a
regular pattern of distributions.
On April 7, 1997, the Company's General Partner mailed proxy material to the
limited partners with respect to a proposed consolidation of the Company with 33
other managed limited partnerships. The terms and conditions of the proposed
consolidation are set forth in such proxy material.
As of March 31, 1997, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
I-6
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults upon Senior Securities.
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5. Other Information.
Not Applicable
Item 6. Exhibits and Reports on Form 8-K.
(a) There are no exhibits to this report.
(b) The Company filed no reports on Form 8-K during the
quarter ended March 31, 1997.
II-1
<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 hereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM IV - 5, L.P.
----------------------
(Registrant)
By:ENEX RESOURCES CORPORATION
--------------------------
General Partner
By: /s/ R. E. Densford
------------------
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
May 11, 1997 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000861063
<NAME> Enex Oil & Gas Income Program IV, Series 5, L.P.
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> dec-31-1997
<PERIOD-START> jan-01-1997
<PERIOD-END> mar-31-1997
<CASH> 62504
<SECURITIES> 0
<RECEIVABLES> 54474
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 119298
<PP&E> 2230368
<DEPRECIATION> 1977358
<TOTAL-ASSETS> 372308
<CURRENT-LIABILITIES> 81781
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 290527
<TOTAL-LIABILITY-AND-EQUITY> 372308
<SALES> 94370
<TOTAL-REVENUES> 94370
<CGS> 54001
<TOTAL-COSTS> 65715
<OTHER-EXPENSES> 4016
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 24639
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
