FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter ended March 31, 1996 Commission File No. 0-18774
Spindletop Oil & Gas Co.
(Exact name of registrant as specified in its charter)
Texas 75-2063001
(State or other jurisdiction of incorporation (IRS Employer or I.D.#)
or organization)
9319 LBJ, Frwy., #205, Dallas, Texas 75243
(Address of principle executive offices) (Zip Code)
(214)644-2581
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of 15 (d) of the Securities Exchange Act of 1934
during the preceding twelve 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 ninety (90) days.
YES X NO
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock - $.001 par value 44,928,854
(Title of Class) (Number of shares Outstanding
on May 10, 1996)
1
<PAGE>
SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
FORM 10-Q March 31, 1996
INDEX
Part I Financial Information: Page No.
Item 1. Financial Statements.
Consolidated Balance Sheets
March 31, 1996 (Unaudited) and December 31, 1995...........3
Consolidated Statements of Income (Unaudited)
Three Months Ended March 31, 1996 and 1995 ................5
Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended March 31, 1996 and 1995.................6
Notes to Consolidated Financial Statements .................7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations..........................8
Part II Other Information:
Item 6. Exhibits and Reports on Form 8-K ..........................9
2
<PAGE>
Part I Financial information
Item 1. Financial statements
SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
----------- -----------
(Unaudited)
Assets
<S> <C> <C>
Current Assets
Cash $ 221,000 $ 229,000
Accounts receivable 648,000 600,000
Accounts receivable, related parties 3,000 64,000
Shareholder loans 32,000 22,000
Inventory 19,000 7,000
----------- -----------
Total Current Assets 923,000 922,000
----------- -----------
Property and Equipment - at cost
Oil and gas properties (full cost method) 2,468,000 2,427,000
Rental equipment 332,000 329,000
Gas gathering systems 145,000 145,000
Other property and equipment 189,000 167,000
----------- -----------
3,134,000 3,068,000
Accumulated depreciation and amortization (1,908,000) (1,852,000)
----------- -----------
1,226,000 1,216,000
Notes receivable - long term - -
----------- -----------
Other Assets, net of accumulated amortization of
$55,000 and $54,000 at March 31, 1996 and
December 31, 1995 respectively 61,000 62,000
----------- -----------
Total Assets $ 2,210,000 $ 2,200,000
=========== ===========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
------------ -----------
(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
Current liabilities
Accounts payable and accrued liabilities $ 833,000 $ 842,000
Notes payable 11,000 3,000
Shareholder loans - -
Tax savings benefit payable 85,000 85,000
----------- -----------
Total Current Liabilities 929,000 930,000
----------- -----------
Notes payable - long term - -
----------- -----------
Shareholders' Equity
Common stock, $.001 par value;150,000,000 shares
authorized; 53,654,479 issued (53,654,479 at
December 31, 1995) 54,000 54,000
Additional paid-in capital 885,000 885,000
Retained earnings 478,000 467,000
----------- -----------
1,417,000 1,406,000
Less treasury stock, at cost; 8,725,625 shares
(8,725,625 at December 31, 1995)
(136,000) (136,000)
----------- -----------
1,281,000 1,270,000
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,210,000 $ 2,200,000
=========== ===========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------------------
1996 1995
------------- -------------
<S> <C> <C>
Revenues
Oil and gas revenues $ 276,000 $ 233,000
Revenue from lease
operations 55,000 56,000
Gas gathering fees 5,000 6,000
Equipment rental 29,000 30,000
Interest Income 1,000 1,000
Other - 1,000
------------- -------------
366,000 327,000
------------- -------------
Expenses
Pipeline and rental
operations 14,000 16,000
Lease operations 153,000 109,000
Depreciation and
amortization 58,000 53,000
General and administrative 128,000 119,000
Interest expense 2,000 2,000
------------- -------------
355,000 299,000
------------- -------------
Net Income $ 11,000 $ 28,000
============= =============
Net Income Per Share of Common
Stock $ 0 $ 0
============= =============
Weighted average shares
outstanding 44,928,854 44,928,454
============= =============
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------
1996 1995
--------- ---------
<S> <C> <C>
Cash Flows from Operating Activities
Net Income $ 11,000 $ 28,000
Reconciliation of net income to net cash
provided by operating activities:
Depreciation and amortiza 57,000 53,000
(Increase) decrease in accounts receivable 13,000 25,000
(Increase) decrease in inventory (12,000) -
Increase (decrease) in accounts payable (9,000) (103,000)
--------- ---------
Net cash provided (used) by operating activities 60,000 3,000
--------- ---------
Cash Flows from Investing Activities
Capitalized acquisition, exploration and
development costs (41,000) (13,000)
Purchase of property and equipment (25,000) (2,000)
Principal collected on note receivable - -
--------- ---------
Net cash used by investing activities (66,000) (15,000)
--------- ---------
Cash Flows from Financing Activities
Repayment of notes payable (2,000) (33,000)
Proceeds from borrowings 10,000 -
Repayments of shareholder loans (10,000) (15,000)
--------- ---------
Net cash provided (used) by financing activities (2,000) (48,000)
--------- ---------
Decrease in cash (8,000) (60,000)
Cash at beginning of period 229,000 319,000
--------- ---------
Cash at en$ of period $ 221,000 $259,000
========== =========
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
Spindletop Oil & Gas Co. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)
Note 1. Basis of Presentation
The accompanying financial statements are presented in accordance with the
requirements of Form 10-Q and consequently do not include all of the disclosures
normally required by generally accepted accounting principles or those normally
made in the Company's annual Form 10-K filing. Accordingly, the reader of this
form 10-Q may wish to refer to the Company's Form 10-K for the year ended
December 31, 1995 for further information.
In the opinion of management, the accompanying interim financial statements
contain all material adjustments, consisting only of normal recurring
adjustments necessary to present fairly the financial condition, the results of
operations and changes in cash flows of the Company and its consolidated
subsidiary for the interim periods.
7
<PAGE>
Spindletop Oil & Gas Co. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operation
Results of Operations
1996 Compared to 1995
Oil and gas revenues increased approximately 18% in 1996 due to an increase in
oil prices and due to acquisitions of a number of oil and gas properties in
1995. Accordingly, lease operating expenses also increased.
General and administrative costs increased in 1996 primarily because of an
increase in staffing requirements.
1995 Compared to 1994
Oil and gas revenues increased approximately $14,000 in 1995 due to a slight
increase in oil prices and an increase in production from the purchase of
additional oil and gas properties in 1994. These properties were in production
for the full quarter of 1995. Accordingly, lease operating expenses also
increased.
Financial Condition and Liquidity
The Company's operating capital needs, as well as its capital spending program
are generally funded from cash flow generated by operations. Because future cash
flow is subject to a number of variables, such as the level of production and
the sales price of oil and natural gas, the Company can provide no assurance
that its operations will provide cash sufficient to maintain current levels of
capital spending. The Company has established a $95,000 line of credit with its
bank. The line of credit was established for oil and gas property acquisitions.
Accordingly, the Company may be required to seek additional financing from third
parties in order to fund its exploration and development programs.
8
<PAGE>
Spindletop Oil & Gas Co. and Subsidiaries
March 31, 1996
Part II Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - None
9
<PAGE>
Signature
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.
SPINDLETOP OIL & GAS CO.
(Registrant)
DATE: May 10, 1996 By: Paul E. Cash
---------------
Paul E. Cash
President
DATE: May 10, 1996 By: Gary Goodnight
---------------
Gary Goodnight
Controller
10
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-1-1996
<PERIOD-END> Mar-31-1996
<EXCHANGE-RATE> 1
<CASH> 221,000
<SECURITIES> 0
<RECEIVABLES> 683,000
<ALLOWANCES> 0
<INVENTORY> 19,000
<CURRENT-ASSETS> 923,000
<PP&E> 3,134,000
<DEPRECIATION> 1,908,000
<TOTAL-ASSETS> 2,210,000
<CURRENT-LIABILITIES> 929,000
<BONDS> 0
0
0
<COMMON> 54,000
<OTHER-SE> 1,227,000
<TOTAL-LIABILITY-AND-EQUITY> 2,210,000
<SALES> 276,000
<TOTAL-REVENUES> 366,000
<CGS> 0
<TOTAL-COSTS> 153,000
<OTHER-EXPENSES> 200,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,000
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,000
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
