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 June 30, 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 0-18854
ENEX OIL & GAS INCOME PROGRAM V - SERIES 1, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0303870
(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) has 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
Transitional Small Business Disclosure Format (Check one):
Yes No x
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
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ENEX OIL & GAS INCOME PROGRAM V - SERIES 1, L.P.
BALANCE SHEET
- -----------------------------------------------------------------------------
JUNE 30,
ASSETS 1996
--------------
(Unaudited)
CURRENT ASSETS:
<S> <C>
Cash $ 19,326
Accounts receivable - oil & gas sales 54,140
Other current assets 4,186
--------------
Total current assets 77,652
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OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 1,583,003
Less accumulated depreciation and depletion 1,217,825
--------------
Property, net 365,178
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TOTAL $ 442,830
==============
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 61,661
Payable to general partner 1,104
--------------
Total current liabilities 62,765
--------------
PARTNERS' CAPITAL:
Limited partners 358,712
General partner 21,353
--------------
Total partners' capital 380,065
--------------
TOTAL $ 442,830
==============
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See accompanying notes to financial statements.
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<PAGE>
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM V - SERIES 1, L.P.
STATEMENTS OF OPERATIONS
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(UNAUDITED) QUARTER ENDED SIX MONTHS ENDED
-------------------------------------- --------------------------------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1996 1995 1996 1995
----------------- ----------------- ----------------- ---------------
REVENUES:
<S> <C> <C> <C> <C>
Oil and gas sales $ 96,808 $ 89,126 $ 192,839 $ 202,542
----------------- ----------------- ----------------- -----------------
EXPENSES:
Depreciation, depletion and amortization 18,969 37,809 38,321 76,299
Impairment of property - - 84,631 -
Lease operating expenses 65,098 39,748 117,642 97,224
Production taxes 7,179 6,911 14,169 14,711
General and administrative 8,936 7,964 19,472 21,123
----------------- ----------------- ----------------- -----------------
Total expenses 100,182 92,432 274,235 209,357
----------------- ----------------- ----------------- -----------------
LOSS FROM OPERATIONS (3,374) (3,306) (81,396) (6,815)
----------------- ----------------- ----------------- -----------------
OTHER INCOME:
Gain from sale of property - - 936 -
----------------- ----------------- ----------------- -----------------
NET LOSS $ (3,374) $ (3,306) $ (80,460) $ (6,815)
================= ================= ================= =================
</TABLE>
See accompanying notes to financial statements.
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<PAGE>
<TABLE>
<CAPTION>
ENEX OIL AND GAS INCOME PROGRAM V - SERIES 1, L.P.
STATEMENTS OF CASH FLOWS
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(UNAUDITED)
SIX MONTHS ENDED
-------------------------------------------------
JUNE 30, JUNE 30,
1996 1995
------------------- -------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net loss $ (80,460) $ (6,815)
------------------- -------------------
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation, depletion and amortization 38,321 76,299
Impairment of property 84,631 -
Gain on sale of property (936) -
(Increase) decrease in:
Accounts receivable - oil & gas sales (2,058) (1,258)
Other current assets 38 234
Increase (decrease) in:
Accounts payable 12,608 (4,719)
Payable to general partner 1,104 (65,977)
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Total adjustments 133,708 4,579
------------------- -------------------
Net cash provided (used) by operating activities 53,248 (2,236)
------------------- -------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of property 936 -
Property additions - development costs (36,096) (7,262)
------------------- -------------------
Net cash used by investing activities (35,160) (7,262)
------------------- -------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (25,031) (9,125)
------------------- -------------------
NET (DECREASE) IN CASH (6,943) (18,623)
CASH AT BEGINNING OF YEAR 26,269 29,576
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CASH AT END OF PERIOD $ 19,326 $ 10,953
=================== ===================
</TABLE>
See accompanying notes to financial statements.
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<PAGE>
ENEX OIL & GAS INCOME PROGRAM V - SERIES 1, 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 $11,321 representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on April 30, 1996.
3. On August 9, 1996, the Company's General Partner submitted preliminary
proxy material to the Securities Exchange Commission with respect to a
proposed consolidation of the Company with 33 other managed limited
partnerships. The terms and conditions of the proposed consolidation
are set forth in such preliminary proxy material.
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<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation.
Second Quarter 1995 Compared to Second Quarter 1996
Oil and gas sales for the second quarter increased to $96,808 in 1996 from
$89,126 in 1995. This represents an increase of $7,682 (9%). Oil sales increased
by $2,829 (5%). A 19% increase in the average oil sales price increased sales by
$9,058. This increase was partially offset by an 11% decrease in oil production.
Gas sales increased by $4,853 (14%). A 62% increase in the average gas sales
price increased sales by $14,930. This increase was partially offset by a 29%
decrease in gas production. The decrease in oil production was primarily the
result of natural production declines and the shut-in of production from the
Binger acquisition to perform a workover. The decrease in gas production was
primarily due to the sale of the Nunley Ranch acquisition, effective January 1,
1996, and the shut-in of production from the Binger acquisition to perform a
workover, together with natural production declines. The changes in average
sales prices correspond with changes in the overall market for the sale of oil
and gas.
Lease operating expenses increased to $65,098 in the second quarter of 1996 from
$39,748 in the second quarter of 1995. The increase of $25,350 is primarily due
to the conversion of a well in the Binger acquisition to a gas injection well.
Depreciation and depletion expense decreased to $18,969 in the second quarter of
1996 from $33,280 in the second quarter of 1995. This represents a decrease of
$14,311 (43%). The changes in production, noted above, reduced depreciation and
depletion expense by $7,195. A 27% decrease in the depletion rate reduced
depreciation and depletion expense by an additional $7,116. The rate decrease
was primarily due to the lower property basis resulting from the recognition of
an impairment of property of $84,631 in the first quarter of 1996.
General and administrative expenses increased to $8,936 in the second quarter of
1996 from $7,964 in the second quarter of 1995. This increase of $972 (12%) is
primarily due to more staff time being required to manage the Company's
operations.
First Six Months in 1995 Compared to First Six Months in 1996
Oil and gas sales for the first six months decreased to $192,839 in 1996 from
$202,542 in 1995. This represents a decrease of $9,703 (5%). Oil sales decreased
by $1,995 (2%). A 5% decrease in oil production reduced sales by $6,425. This
decrease was partially offset by a 4% increase in the average oil sales price.
Gas sales decreased by $7,708 (9%). A 35% decrease in gas production reduced
sales by $29,008. This decrease was partially offset by a 39% increase in the
average gas sales price. The decrease in oil production was primarily the
result of natural production declines and the shut-in of production from the
Binger acquisition to perform a workover. The decrease in gas production was
primarily due to the sale of the Nunley Ranch acquisition, effective January 1,
1996, and the shut-in of production from the Binger acquisition to perform a
workover, together with natural production declines. The changes in average
sales prices correspond with changes in the overall market for the sale of oil
and gas.
Lease operating expenses increased to $117,642 in the first six months of 1996
from $97,224 in
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<PAGE>
the first six months of 1995. The increase of $20,418 is primarily due to the
conversion of a well in the Binger acquisition to a gas injection well.
Depreciation and depletion expense decreased to $38,321 in the first six months
of 1996 from $67,240 in the first six months of 1995. This represents a decrease
of $37,978 (50%). The changes in production, noted above, reduced depreciation
and depletion expense by $17,202. A 35% decrease in the depletion rate reduced
depreciation and depletion expense by an additional $20,776. The rate decrease
was primarily due to the lower property basis resulting from the recognition of
an impairment of property of $84,631 in the first quarter of 1996.
Effective January 1, 1996, the Company sold its interest in the Nunley Ranch
acquisition for $936. The Company recognized a gain of $936 on the sale.
The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standard ("SFAS") No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long- Lived Assets to be Disposed Of," which requires
certain assets to be reviewed for impairment whenever events or circumstances
indicate the carrying amount may not be recoverable. In the first quarter of
1996, the Company recognized a non-cash impairment provision of $84,631 for
certain oil and gas properties due to market indications that the carrying
amounts were not fully recoverable.
General and administrative expenses decreased to $19,472 in the first six months
of 1996 from $21,123 in 1995. This decrease of $1,651 (8%) is primarily due to
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.
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.
On August 9, 1996, the Company's General Partner submitted preliminary proxy
material to the Securities Exchange Commission with respect to a proposed
consolidation of the Company with 33 other managed limited partnerships. The
terms and conditions of the proposed consolidation are set forth in such
preliminary proxy material.
As of June 30, 1996, the Company had no material commitments for capital
expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
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<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 June 30, 1996.
II-1
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
ENEX OIL & GAS INCOME
PROGRAM V - SERIES 1, 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
August 13, 1996 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer
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<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000868664
<NAME> Enex Oil & Gas Income Program V-Series 1,L.P.
<S> <C>
<PERIOD-TYPE> 6-mos
<FISCAL-YEAR-END> dec-31-1996
<PERIOD-START> jan-01-1996
<PERIOD-END> jun-30-1996
<CASH> 19326
<SECURITIES> 0
<RECEIVABLES> 54140
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 77652
<PP&E> 1596390
<DEPRECIATION> 1231212
<TOTAL-ASSETS> 442830
<CURRENT-LIABILITIES> 62765
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 380065
<TOTAL-LIABILITY-AND-EQUITY> 442830
<SALES> 192839
<TOTAL-REVENUES> 192839
<CGS> 131811
<TOTAL-COSTS> 254763
<OTHER-EXPENSES> 19472
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (80460)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
