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, 1996
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 0-18326
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 6, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0251426
(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) 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
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<CAPTION>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 6, L.P.
BALANCE SHEET
- -------------------------------------------------------------------------------
MARCH 31,
ASSETS 1996
------------
(Unaudited)
CURRENT ASSETS:
<S> <C>
Cash $ 8,887
Accounts receivable - oil & gas sales 21,758
Other current assets 1,195
------------
Total current assets 31,840
------------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 2,006,138
Less accumulated depreciation and depletion 1,845,460
------------
Property, net 160,678
------------
TOTAL $ 192,518
============
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 3,577
Payable to general partner 17,693
------------
Total current liabilities 21,270
------------
NONCURRENT PAYABLE TO GENERAL PARTNER 17,694
------------
PARTNERS' CAPITAL
Limited partners 138,715
General partner 14,839
------------
Total partners' capital 153,554
------------
TOTAL $ 192,518
============
</TABLE>
See accompanying notes to financial statements.
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I-1
<PAGE>
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 6, L.P.
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
(UNAUDITED) THREE MONTHS ENDED
-------------------------
MARCH 31, MARCH 31,
1996 1995
----------- ----------
REVENUES:
<S> <C> <C>
Oil and gas sales $ 42,381 44,486
----------- ----------
EXPENSES:
Depreciation, depletion and amortization 10,307 19,117
Lease operating expenses 15,696 22,316
Production taxes 2,551 2,512
General and administrative 5,531 4,148
----------- ----------
Total expenses 34,085 48,093
----------- ----------
NET INCOME (LOSS) $ 8,296 (3,607)
=========== ==========
</TABLE>
See accompanying notes to financial statements.
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I-2
<PAGE>
<TABLE>
<CAPTION>
ENEX OIL AND GAS INCOME PROGRAM IV - SERIES 6, L.P.
STATEMENTS OF CASH FLOWS
- --------------------------------------------------------------------------------
(UNAUDITED)
THREE MONTHS ENDED
---------------------------
MARCH 31, MARCH 31,
1996 1995
----------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income (loss) $ 8,296 (3,607)
----------- ---------
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation, depletion and amortization 10,307 19,117
(Increase) decrease in:
Accounts receivable - oil & gas sales 758 3,641
Other current assets - (363)
(Decrease) in:
Accounts payable (2,115) (6,151)
Payable to general partner (18,947) (2,742)
----------- ---------
Total adjustments (9,997) 13,502
----------- ---------
Net cash provided (used) by operating activities (1,701) 9,895
----------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property credits - development costs - 3,341
----------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (5,997) (6,495)
----------- ---------
NET INCREASE (DECREASE) IN CASH (7,698) 6,741
CASH AT BEGINNING OF YEAR 16,585 3,317
----------- ---------
CASH AT END OF PERIOD $ 8,887 10,058
=========== =========
</TABLE>
See accompanying notes to financial statements.
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I-3
<PAGE>
ENEX OIL & GAS INCOME PROGRAM IV - SERIES 6, 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 $5,397, representing net revenues from the sale of oil and gas
produced from properties owned by the Company. This distribution was made
on January 31, 1995.
I-4
<PAGE>
Item 2Management's Discussion and Analysis or Plan of Operation.
First Quarter 1996 Compared to First Quarter 1995
Oil and gas sales for the first quarter decreased from $44,486 in 1995 to
$42,381 in 1996. This represents a decrease of $2,105 (5%). Oil sales decreased
by $3,853. A 28% decrease in oil production reduced sales by $7,211. This
decrease was partially offset by an 18% increase in the average oil sales price.
Gas sales increased by $1,748 or 9%. A 28% increase in the average gas sales
price increased sales by $4,414. This increase was partially offset by a 14%
decrease in gas production. The decreases in production were primarily the
result of natural production declines, which were especially pronounced on the
Speary acquisition. The changes in average prices correspond with changes in the
overall market for the sale of oil and gas.
Lease operating expenses decreased from $22,316 in the first quarter of 1995 to
$15,696 in the first quarter of 1996. The decrease of $6,620 (30%) is primarily
due to the changes in production, noted above.
Depreciation and depletion expense decreased from $18,036 in the first quarter
of 1995 to $10,307 in the first quarter of 1996. This represents a decrease of
$7,729 (43%). The changes in production, noted above, caused depreciation and
depletion expense to decrease by $3,762. A 28% decrease in the depletion rate
reduced depreciation and depletion expense by an additional $3,967. This rate
decrease is primarily due to an upward revision of the oil and gas reserves
during December 1995.
General and administrative expenses increased from $4,148 in the first quarter
of 1995 to $5,531 in the first quarter of 1996. This decrease of $1,383 (33%) is
primarily due to $1,909 higher direct expenses incurred by the Company in 1996,
partially offset by less staff time being required to manage the Company's
operations.
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 1995 to 1996 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 will continue to recover its reserves and distribute to the limited
partners the net proceeds realized from the sale of oil and gas production after
payment of its debt obligations. 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.
As of March 31, 1996, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
I-5
<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, 1996.
<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 - 6, 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, 1996 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> 0000861067
<NAME> Enex Oil & Gas Income Program IV, Series 6, L.P.
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> dec-31-1996
<PERIOD-START> jan-01-1996
<PERIOD-END> mar-31-1996
<CASH> 8887
<SECURITIES> 0
<RECEIVABLES> 21758
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