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 September 30, 2000
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 (IRS Employer or I.D.#)
incorporation or organization)
9319 LBJ Freeway, Suite 205, Dallas, Texas 75243
(Address of principle executive offices) (Zip Code)
(972) 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 - $.01 par value 7,525,804
(Title of Class) (Number of shares Outstanding
on November 10, 2000)
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SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
FORM 10-Q
September 30, 2000
INDEX
Part I Financial Information: Page No.
Item 1. Financial Statements.
Consolidated Balance Sheets
September 30, 2000 (Unaudited) and December 31, 1999..................3
Consolidated Statements of Income (Unaudited)
Nine Months and Three Months Ended September 30, 2000 and 1999........5
Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September 30, 2000 and 1999.........................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
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Part I Financial information
Item 1. Financial statements
SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
------------- -------------
(Unaudited)
Assets
Current Assets
<S> <C> <C>
Cash $ 1,067,000 $ 284,000
Accounts receivable 211,000 267,000
Accounts receivable, related parties 3,000 59,000
Shareholder loans - -
Inventory - -
------------ ------------
Total Current Assets 1,281,000 610,000
------------ ------------
Property and Equipment - at cost
Oil and gas properties (full cost method) 3,241,000 3,205,000
Rental equipment 405,000 405,000
Gas gathering systems 145,000 145,000
Other property and equipment 180,000 180,000
------------ -----------
3,971,000 3,935,000
Accumulated depreciation and amortization (2,866,000) (2,714,000)
------------ -----------
1,105,000 1,221,000
------------ ------------
Other Assets, net of accumulated
amortization of $101,000 and $101,000 at
September 30, 2000 and December 31, 1999
respectively 12,000 12,000
------------ ------------
Total Assets $ 2,398,000 $ 1,843,000
============ ============
</TABLE>
See accompanying notes to financial statements.
3
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SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
-------------- --------------
(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
<S> <C> <C>
Accounts payable and accrued liabilities $ 517,000 $ 439,000
Notes payable 67,000 -
Tax savings benefit payable 97,000 97,000
------------- ------------
Total Current Liabilities 681,000 536,000
------------- ------------
Notes payable-related party 241,000 308,000
Shareholders' Equity
Common stock, $.01 par value; 100,000,000
shares authorized; 7,525,804 issued
(7,525,804 at December 31, 1999) 75,000 75,000
Additional paid-in capital 733,000 733,000
Retained earnings 668,000 191,000
------------ ------------
1,476,000 999,000
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,398,000 $ 1,843,000
============ ============
</TABLE>
See accompanying notes to financial statements.
4
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SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
--------------------------- ---------------------
2000 1999 2000 1999
-------------- ------------ ----------- ----------
Revenues
<S> <C> <C> <C> <C>
Oil and gas revenues $ 1,042,000 $ 532,000 $ 466,000 $ 175,000
Revenue from lease
operations 135,000 126,000 35,000 42,000
Gas gathering,compression
and equipment rental 102,000 93,000 45,000 30,000
Interest Income 21,000 4,000 11,000 1,000
Other 44,000 - 33,000 -
------------ ------------ ----------- ---------
1,344,000 755,000 590,000 248,000
----------- ------------ ----------- ---------
Expenses
Pipeline and rental
operations 22,000 35,000 6,000 10,000
Lease operations 472,000 347,000 162,000 123,000
Depreciation and amortization 150,000 177,000 48,000 59,000
General and administrative 223,000 381,000 72,000 123,000
Other - 58,000 - 77,000
----------- ----------- ----------- ---------
867,000 998,000 288,000 392,000
----------- ----------- ----------- ---------
Net Income (Loss) $ 477,000 $ (243,000) $ 302,000 $(144,000)
========== =========== ========== =========
Net Income (Loss) Per
Share of Common Stock $ .06 $ (.04) $ .04 $ (.02)
========= ========= ========= ========
Weighted average shares
outstanding 7,525,804 7,525,804 7,525,804 7,525,804
========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
5
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SPINDLETOP OIL & GAS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
---------------------------
2000 1999
------------- -----------
Cash Flows from Operating Activities
<S> <C> <C>
Net Income (Loss) $ 477,000 $ (243,000)
Reconciliation of net income
to net cash provided by operating
activities:
Depreciation and amortization 152,000 177,000
(Increase) decrease in accounts receivable 112,000 (62,000)
Increase (decrease) in accounts payable 78,000 (3,000)
------------ -----------
Net cash provided(used) by operating activities 819,000 (131,000)
------------ -----------
Cash Flows from Investing Activities
Capitalized acquisition, exploration
and development costs (36,000) (3,000)
Purchase of property and equipment - (6,000)
Increase in other assets - -
------------ ----------
Net cash used by investing activities (36,000) (9,000)
------------ ----------
Cash Flows from Financing Activities
Proceeds from sale of oil and gas property - 28,000
Increase in other assets - (67,000)
Other - (1,000)
------------ ----------
Net cash provided(used) by financing activities - (40,000)
------------ ----------
Increase(decrease)in cash 783,000 (180,000)
Cash at beginning of period 284,000 288,000
------------ -----------
Cash at end of period $ 1,067,000 $ 108,000
============ ===========
</TABLE>
See accompanying notes to financial statements.
6
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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, 1999 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
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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 Operations
Results of Operations
Nine months ended September 30, 2000 compared to 1999
-----------------------------------------------------
Due to the purchase of oil and gas properties in December 1999, oil and gas
production increased. This increased production and an increase in oil and gas
prices were the primary reasons that oil and gas revenues increased for the six
months ended September 30, 2000. The increase in lease operating expenses was
primarily due to the December 1999 purchase of oil and gas properties.
General and administrative expenses decreased primarily due to staff reduction.
The Company expects to hire additional staff in 2000.
Three months ended September 30, 2000 compared to 1999
------------------------------------------------------
Oil and gas revenues increased in the third quarter of 2000. Increased oil and
gas prices contributed heavily to this increase. Production was also up due to
the property purchase described above. Lease operating expenses increased
primarily because of the property purchase.
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. Accordingly, the Company may be required to seek additional
financing from third parties in order to fund its exploration and development
programs.
8
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Spindletop Oil & Gas Co. and Subsidiaries
September 30, 2000
Part II Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits -
27 Financial Data Schedule
(b) Reports on Form 8-K - None
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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: November 13, 2000 By: /s/ Chris Mazzini
--------------------
Chris Mazzini
President
DATE: November 13, 2000 By:
---------------------
Gary Goodnight
Controller
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