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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-KSB/A
AMENDMENT III
(Mark One)
[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1995
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from...............to...............
Commission file number 0-18329
ENEX OIL & GAS INCOME PROGRAM IV - Series 5, L.P.
(Name of small business issuer in its charter)
New Jersey 76-0251424
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
800 Rockmead Drive
Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (713) 358-8401
Securities registered under Section 12(b) of the Exchange Act: None
Securities registered under Section 12(g) of the Exchange Act:
Limited Partnership Interest
Check whether the issuer (1) 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
Check if there is no disclosure of delinquent filers in response to
Item 405 of Regulation S-B is not contained in this form, and no disclosure will
be contained, to the best of the registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB.[x]
State issuer's revenues for its most recent fiscal year. $315,919
State the aggregate market value of the voting stock held by
non-affiliates computed by reference to the price at which the stock was sold,
or the average bid and asked prices of such stock as of a specified date within
the past 60 days (See definition of affiliate in Rule 12b-2 of the Exchange
Act):
Not Applicable
Documents Incorporated By Reference:
None
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PART II
Item 5. Market for Common Equity and Related Security Holder Matters
Market Information
There is no established public trading market for the Company's
outstanding limited partnership interests.
Number of Equity Security Holders
Number of Record Holders
Title of Class (as of March 1, 1996)
----------------- --------------------------------
General Partner's Interests 1
Limited Partnership Interests 825
Dividends
The Company made cash distributions to partners of $7 and $14 per $500
investment in 1995 and 1994, respectively. The payment of future distributions
will depend on the Company's earnings, financial condition, working capital
requirements and other factors, although it is anticipated that regular
quarterly distributions will continue through 1996.
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Item 6. Management's Discussion and Analysis or Plans of Operation
Results of Operations
This discussion should be read in conjunction with the financial
statements of the Company and the notes thereto included in this Form 10-KSB.
Oil and gas sales in 1995 were $315,919 as compared with $386,691 in
1994. This represents a decrease of $70,772 or 18%. Oil revenues decreased by
$8,517 or 5%. A 15% decrease in oil production reduced sales by $24,394. This
decrease was partially offset by a 12% increase in the average oil sales price.
Gas sales decreased by $71,493 or 32%. A 21% decrease in gas production reduced
sales by $47,729. A 13% decrease in the average gas sales price reduced sales by
an additional $23,764. Plant product sales increased by $9,238 or 235%. A 223%
increase in the production of plant products increased sales by $8,766. A 4%
increase in the average plant products sales price increased sales by an
additional $472. The decrease in oil and gas production was primarily the result
of natural production declines, which were especially pronounced on the Speary
acquisition. The increase in the production of plant products was due to the
receipt of revenues attributable to prior years from the Kalkaska gas plant. The
changes in average prices correspond with changes in the overall market for the
sale of oil, gas and plant products.
Lease operating expenses decreased to $157,813 in 1995 from $168,465
in 1994. The decrease of $10,652 or 6% was primarily due to the changes in
production, noted above.
Depreciation and depletion expense decreased to $81,963 in 1995 from
$132,624 in 1994. This represents a decrease of $50,661 or 38%. The changes in
production, noted above, decreased depreciation and depletion expense by
$15,153. A 30% decrease in the depletion rate reduced depreciation and depletion
expense by an additional $35,508. The rate decrease was primarily due to an
upward revision of the oil and gas reserves during 1995.
General and administrative expenses decreased to $24,567 in 1995
from $30,304 in 1994. This decrease of $5,737 or 19% is primarily due to less
staff time being required to manage the Company's operations in 1995, coupled
with a $2,451 decrease in direct general and administrative expenses incurred by
the Company as a result of lower audit and tax preparation fees.
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 1994 to 1995 are primarily due to the
changes in oil and gas sales described above. It is the general partner's
intention to distribute all of the Company's available net cash flow provided by
operating, financing and investing activities to the Company's partners.
The Company will continue to recover its reserves and distribute to
the partners the net proceeds realized from the sale of oil and gas production
after payment of debt obligations. The Company plans to repay the amount owed to
the general partner from such proceeds over a two year period. Distributions
decreased from 1994 to 1995 due to the lower revenues received in 1995, as noted
above. 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.
At December 31, 1995, the Company had no material commitments for
capital expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
II-2
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Item 7. Financial Statements and Supplementary Data
INDEPENDENT AUDITORS' REPORT
The Partners
Enex Oil & Gas Income
Program IV - Series 5, L.P.
We have audited the accompanying balance sheet of Enex Oil & Gas Income Program
IV - Series 5, L.P. (a New Jersey limited partnership) as of December 31, 1995
and the related statements of operations, changes in partners' capital, and cash
flows for each of the two years in the period ended December 31, 1995. These
financial statements are the responsibility of the general partner of Enex Oil &
Gas Income Program IV - Series 5, L.P. Our responsibility is to express an
opinion on the financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of Enex Oil & Gas Income Program IV - Series 5,
L.P. at December 31, 1995 and the results of its operations and its cash flows
for each of the two years in the period ended December 31, 1995 in conformity
with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Houston, Texas
March 18, 1996
II-3
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<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
BALANCE SHEET, DECEMBER 31, 1995
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ASSETS
1995
--------------
CURRENT ASSETS:
<S> <C>
Cash $ 21,685
Accounts receivable - oil & gas sales 51,558
Other current assets 2,792
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Total current assets 76,035
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OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 2,205,847
Less accumulated depreciation and depletion 1,914,024
--------------
Property, net 291,823
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TOTAL $ 367,858
==============
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 45,146
Payable to general partner 21,333
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Total current liabilities 66,479
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PARTNERS' CAPITAL (DEFICIT):
Limited partners 275,592
General partner 25,787
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Total partners' capital 301,379
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TOTAL $ 367,858
==============
Number of $500 Limited Partner units outstanding 4,561
</TABLE>
See accompanying notes to financial statements.
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II-4
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ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1995
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1. PARTNERSHIP ORGANIZATION
Enex Oil & Gas Income Program IV - Series 5, L.P. (the "Company"),
a New Jersey limited partnership, commenced operations on November
9, 1989 for the purpose of acquiring proved oil and gas properties.
Total limited partner contributions were $2,280,449, of which
$22,805 was contributed by Enex Resources Corporation ("Enex"), the
general partner.
In accordance with the partnership agreement, the Company paid
commissions of $219,208 for solicited subscriptions to Enex
Securities Corporation, a subsidiary of Enex, and reimbursed Enex
for organization expenses of approximately $68,000.
Information relating to the allocation of costs and revenues
between Enex, as general partner, and the limited partners is as
follows:
Limited
Enex Partners
Commissions and selling expenses 100%
Company reimbursement of organization
expense 100%
Company property acquisition 100%
General and administrative costs 10% 90%
Costs of drilling and completing
development wells 10% 90%
Revenues from temporary investment of
partnership capital 100%
Revenues from producing properties 10% 90%
Operating costs (including general and
administrative costs associated with
operating producing properties) 10% 90%
At the point in time when the cash distributions to the limited
partners equal their subscriptions ("payout"), the costs of
drilling and completing development wells, revenues from producing
properties, general and administrative costs and operating costs
will be allocated 15% to the general partner and 85% to the limited
partners.
II-8
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Oil and Gas Properties - The Company uses the successful efforts
method of accounting for its oil and gas operations. Under this
method, the costs of all development wells are capitalized.
Capitalized costs are amortized on the units-of-production method
based on estimated total proved reserves. The acquisition costs of
improved oil and gas properties are capitalized and periodically
assessed for impairment.
The Financial Accounting Standards Board has issued Statement of
Financial Accounting Standards No. 121, "Accounting for the
Impairment of Long Lived Assets and for Long-Lived Assets to Be
Disposed Of." This statement requires that long-lived assets and
certain identifiable intangibles held and used by the Company be
reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be
recoverable.
The Company has not determined the effect, if any, on its financial
position or results of operations which may result from the
adoption of this statement in the first quarter of 1996.
The Company's operating interests in oil and gas properties are
recorded using the pro rata consolidation method pursuant to
Interpretation 2 of Accounting Principles Board Opinion 18.
Cash Flows - The Company has presented its cash flows using the
indirect method and considers all highly liquid investments with an
original maturity of three months or less to be cash equivalents.
General and Administrative Expenses - The Company reimburses the
General Partner for direct costs and administrative costs incurred
on its behalf. Administrative costs allocated to the Company are
computed on a cost basis in accordance with standard industry
practices by allocating the time spent by the General Partner's
personnel among all projects and by allocating rent and other
overhead on the basis of the relative direct time charges.
Uses of Estimates - The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contigent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during
the reporting periods. Actual results could differ from these
estimates.
3. FEDERAL INCOME TAXES
General - The Company is not a taxable entity for federal income
tax purposes. Such taxes are liabilities of the individual partners
and the amounts thereof will vary depending on the individual
situation of each partner. Accordingly, there is no provision for
income taxes in the accompanying financial statements.
II-9
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4. PAYABLE TO GENERAL PARTNER
The payable to general partner primarily consists of general and
administrative expenses allocated to the Company by Enex during the
Company's start-up phase and for its ongoing operations. The
Company plans to repay the amount owed to the general partner over
a two year period.
5. REPURCHASE OF LIMITED PARTNER INTERESTS
In accordance with the partnership agreement, the general partner
is required to purchase limited partner interests (at the option of
the limited partners) at annual intervals beginning after the
second year following the formation of the Company. The purchase
price, as specified in the partnership agreement, is based
primarily on reserve reports prepared by independent petroleum
engineers as reduced by a specified risk factor.
6. SIGNIFICANT PURCHASERS
GC Marketing Company, Falco S&D, Inc. Total Petroleum Company and
Don Yohe Enterprises, Inc. accounted for 34%, 34%, 14% and 11%,
respectively, of the Company's total sales in 1995. GC Marketing
Company, Falco S&D, Inc. and Total Petroleum Company accounted for
41%, 30%, and 14%, respectively, of the Company's total sales in
1994. No other purchaser individually accounted for more than 10%
of such sales.
7. NOTE PAYABLE TO GENERAL PARTNER
On October 5, 1993, in order to finance workover charges, the
Company borrowed $46,000 from the general partner at prime plus
three-fourths of one percent. On November 1, 1993, the Company
borrowed an additional $31,000. In 1994, the Company completely
repaid the loan. The weighted average principal outstanding in 1994
of $13,114 bore interest at an average rate of 7.60%.
8. PROPERTY TRANSACTIONS
Effective October 1, 1994, the Company acquired additional working
and royalty interests in the Concord acquisition for $1,361 from an
affiliated partnership. The purchase price represents the fair
market value as determined from the receipt of bids solicited from
independent third party companies.
II-11
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Item 8. Changes In and Disagreements With Accountants on Accounting and
Financial Disclosure
Not Applicable
II-13
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<PAGE>
SIGNATURES
In accordance with Section 13 or 15 (d) of the Exchange Act,
the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
ENEX OIL AND GAS INCOME PROGRAM IV -
SERIES 5, L.P.
By: ENEX RESOURCES CORPORATION
the General Partner
December 23, 1996 By: /s/ G. B. Eckley
-------------------
G. B. Eckley, President
In accordance with the Exchange Act, this report has been
signed below on December 23, 1996, by the following persons in the capacities
indicated.
ENEX RESOURCES CORPORATION General Partner
By: /s/ G. B. Eckley
------------------------
G. B. Eckley, President
/s/ G. B. Eckley
President, Chief Executive
------------------ Officer and Director
G. B. Eckley
/s/ R. E. Densford Vice President, Secretary, Treasurer,
Chief Financial Officer and Director
-------------------
R. E. Densford
/s/ James A. Klein Controller and Chief Accounting Officer
-----------------
James A. Klein
S-1
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<CIK> 0000861063
<NAME> ENEX OIL & GAS INCOME PROGRAM IV - SERIES 5, L.P.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> dec-31-1996
<PERIOD-START> jan-01-1996
<PERIOD-END> dec-31-1996
<CASH> 21685
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