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, 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 (IRS Employer or I.D.#)
of 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 May 10, 2000)
1
<PAGE>
SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
FORM 10-Q
March 31, 2000
INDEX
Part I Financial Information: Page No.
Item 1. Financial Statements.
Consolidated Balance Sheets
March 31, 2000 (Unaudited) and December 31, 1999....................3
Consolidated Statements of Income (Loss)(Unaudited)
Three Months Ended March 31, 2000 and 1999..........................5
Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended March 31, 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
<PAGE>
Part I Financial information
Item 1. Financial statements
SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
------------- -------------
(Unaudited)
Assets
Current Assets
<S> <C> <C>
Cash $ 562,000 $ 284,000
Accounts receivable 213,000 267,000
Accounts receivable, related parties 59,000 59,000
Shareholder loans - -
Inventory - -
---------- -----------
Total Current Assets 834,000 610,000
---------- -----------
Property and Equipment - at cost
Oil and gas properties (full cost method) 3,205,000 3,205,000
Rental equipment 405,000 405,000
Gas gathering systems 145,000 145,000
Other property and equipment 180,000 180,000
---------- -----------
3,935,000 3,935,000
Accumulated depreciation and amortization (2,765,000) (2,714,000)
----------- -----------
1,170,000 1,221,000
---------- -----------
Other Assets, net of accumulated amortization
of $101,000 and $101,000 at March 31, 2000
and December 31, 1999 respectively 12,000 12,000
---------- -----------
Total Assets $ 2,016,000 $ 1,843,000
========== ===========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
------------- ------------
(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
<S> <C> <C>
Accounts payable and accrued liabilities $ 551,000 $ 439,000
Notes payable - -
Tax savings benefit payable 97,000 97,000
----------- ------------
Total Current Liabilities 648,000 536,000
----------- ------------
Notes payable-related party 308,000 308,000
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 252,000 191,000
----------- -----------
1,060,000 999,000
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,016,000 $ 1,843,000
========== ===========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
2000 1999
------------ -----------
Revenues
<S> <C> <C>
Oil and gas revenues $ 241,000 $ 199,000
Revenue from lease operations 42,000 42,000
Gas gathering, compression and equipment
rental 38,000 31,000
Interest Income 4,000 1,000
Other 5,000 8,000
------------ ------------
330,000 281,000
------------ ------------
Expenses
Pipeline and rental operations 12,000 11,000
Lease operations 174,000 139,000
Depreciation and amortization 51,000 61,000
General and administrative 32,000 129,000
---------- ----------
269,000 340,000
---------- ----------
Net Income (Loss) $ 61,000 $ (59,000)
========= ==========
Net Income Per Share of Common Stock
$ - $ -
========== =========
Weighted average shares outstanding
7,525,804 7,525,804
=========== ==========
</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,
2000 1999
------------- ------------
Cash Flows from Operating Activities
<S> <C> <C>
Net Income (Loss) $ 61,000 $ (59,000)
Reconciliation of net income to net
cash provided by operating activities:
Depreciation and amortization 51,000 61,000
(Increase) decrease in accounts receivable 54,000 (53,000)
(Increase) decrease in invent - -
Increase (decrease) in accounts 112,000 (11,000)
--------- ---------
Net cash provided (used) by operating activities 278,000 (62,000)
--------- ---------
Cash Flows from Investing Activities
Capitalized acquisition, exploration and
development costs - -
Purchase of property and equipment - -
-------- ---------
Net cash used by investing activities - -
-------- ---------
Cash Flows from Financing Activities
Repayment of notes payable - -
Decrease in other assets - 16,000
Advances to shareholder - -
-------- ---------
Net cash provided (used) by financing activities - 16,000
-------- ---------
Increase (decrease) in cash 278,000 (46,000)
Cash at beginning of period 284,000 288,000
-------- ---------
Cash at end of period $ 562,000 $ 242,000
======== =========
</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, 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
<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
2000 Compared to 1999
- -----------------------
Due to the purchase of oil and gas properties in December 1999 oil and gas
revenues increased. Lease operating expenses rose accordingly.
General and administrative expenses decreased primarily due to staff reduction.
The Company expects to hire additional staff in 2000.
1999 Compared to 1998
- -----------------------
Oil and gas revenues decreased in 1999 due to both a decrease in production and
and oil and gas prices.
Sale of natural gas and related purchases decreased in 1999 as a result of the
sale of the pipeline in 1998.
Lease operating expenses decreased in 1999 due to a decrease in repairs and
maintenance on existing wells.
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
<PAGE>
Spindletop Oil & Gas Co. and Subsidiaries
March 31, 2000
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 15, 2000 By:/s/ Chris Mazzini
-----------------
Chris Mazzini
President
DATE: May 15, 2000 By:/s/ Gary Goodnight
------------------
Gary Goodnight
Controller
10
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-2000
<PERIOD-START> Jan-1-2000
<PERIOD-END> Mar-31-2000
<EXCHANGE-RATE> 1
<CASH> 562,000
<SECURITIES> 0
<RECEIVABLES> 272,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 834,000
<PP&E> 3,935,000
<DEPRECIATION> 2,765,000
<TOTAL-ASSETS> 2,016,000
<CURRENT-LIABILITIES> 648,000
<BONDS> 308000
0
0
<COMMON> 75,000
<OTHER-SE> 985,000
<TOTAL-LIABILITY-AND-EQUITY> 2,016,000
<SALES> 241,000
<TOTAL-REVENUES> 330,000
<CGS> 0
<TOTAL-COSTS> 186,000
<OTHER-EXPENSES> 83,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 61,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 61,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 61,000
<EPS-BASIC> 0.00
<EPS-DILUTED> 0
</TABLE>
