FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(MARK ONE)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________
Commission File Number 33-38511
SOUTHWEST DEVELOPMENTAL DRILLING PROGRAM 1991-92
Southwest Developmental Drilling Fund 92-A, L.P.
(Exact name of registrant as specified
in its limited partnership agreement)
Delaware 75-2387816
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
407 N. Big Spring, Suite 300
Midland, Texas 79701
(Address of principal executive offices)
(915) 686-9927
(Registrant's telephone number,
including area code)
Indicate by check mark whether registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 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
The total number of pages contained in this report is 12.
<PAGE>
<PAGE>
PART I. - FINANCIAL INFORMATION
Item 1. Financial Statements
The unaudited condensed financial statements included herein have been
prepared by the Registrant (herein also referred to as the "Partnership") in
accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01
of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all adjustments
necessary for a fair presentation have been included and are of a normal
recurring nature. The financial statements should be read in conjunction
with the audited financial statements and the notes thereto for the year
ended December 31, 1996 which are found in the Registrant's Form 10-K Report
for 1996 filed with the Securities and Exchange Commission. The December 31,
1996 balance sheet included herein has been taken from the Registrant's 1996
Form 10-K Report. Operating results for the three month period ended
March 31, 1997 are not necessarily indicative of the results that may be
expected for the full year.
<PAGE>
<PAGE>
Southwest Developmental Drilling Fund 92-A, L.P.
Balance Sheets
March 31, December 31,
1997 1996
--------- ------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 9,993 17,730
Receivable from Managing General Partner 38,900 53,520
--------- ---------
Total current assets 48,893 71,250
--------- ---------
Oil and gas properties - using the
full-cost method of accounting 1,315,532 1,315,532
Less accumulated depreciation,
depletion and amortization 616,000 601,000
--------- ---------
Net oil and gas properties 699,532 714,532
--------- ---------
Organization costs, net of amortization 6,572 8,756
--------- ---------
$ 754,997 794,538
========= =========
Liabilities and Partners' Equity
Current liability - Accounts payable 3,950 -
--------- ---------
Partners' equity:
Managing General Partner 28,139 31,033
Investor partners 722,908 763,505
--------- ---------
Total partners' equity 751,047 794,538
--------- ---------
$ 754,997 794,538
========= =========
<PAGE>
<PAGE>
Southwest Developmental Drilling Fund 92-A, L.P.
Statements of Operations
(unaudited)
Three Months Ended
March 31,
1997 1996
---- ----
Revenues
Oil and gas $ 89,119 107,885
Interest 166 128
------- -------
89,285 108,013
------- -------
Expenses
Production 35,964 40,438
General and administrative 8,628 8,911
Depreciation, depletion and amortization 17,184 24,184
------- -------
61,776 73,533
------- -------
Net income $ 27,509 34,480
======= =======
Net income allocated to:
Managing General Partner $ 4,916 6,453
======= =======
Investor partners $ 22,593 28,027
======= =======
Per investor partner unit $ 16.06 19.92
======= =======
<PAGE>
<PAGE>
Southwest Developmental Drilling Fund 92-A, L.P.
Statements of Cash Flows
(unaudited)
Three Months Ended
March 31,
1997 1996
---- ----
Cash flows from operating activities:
Cash received from oil and gas sales $ 108,034 105,029
Cash paid to suppliers (44,937) (44,826)
Interest income 166 128
------- -------
Net cash provided by operating activities 63,263 60,331
------- -------
Cash flows used in financing activities:
Distribution to investor partners (71,000) (60,000)
------- -------
Net increase (decrease) in cash and cash
equivalents (7,737) 331
Beginning of period 17,730 7,614
------- -------
End of period $ 9,993 7,945
======= =======
(continued)
<PAGE>
<PAGE>
Southwest Developmental Drilling Fund 92-A, L.P.
Statements of Cash Flows, continued
(unaudited)
Three Months Ended
March 31,
1997 1996
---- ----
Reconciliation of net income to net
cash provided by operating activities:
Net income $ 27,509 34,480
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation, depletion and amortization 17,184 24,184
(Increase) decrease in receivables 18,915 (2,856)
Increase (decrease) in payables (345) 4,523
------- -------
Net cash provided by operating activities $ 63,263 60,331
======= =======
<PAGE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
General
Southwest Developmental Drilling Fund 92-A, L.P. (the "Partnership" or
"Registrant") was organized as a Delaware limited partnership on May 5, 1992.
The offering of limited and general partner interests began August 11, 1992
as part of a shelf offering registered under the name Southwest Developmental
Drilling Program 1991-92. Minimum capital requirements for the Partnership
were met on December 28, 1992, with the offering of limited and general
partner interests concluding December 31, 1992, with total investor partner
contributions of $1,407,000. The Managing General Partner made a
contribution to the capital of the Partnership at the conclusion of the
offering period in an amount equal to 1% of its net capital contributions.
The Managing General Partner contribution was $12,030, for total capital
contributions of $1,419,030.
The Partnership was formed to engage primarily in the business of drilling
developmental and exploratory wells, to produce and market crude oil and
natural gas produced from such properties, to distribute any net proceeds
from operations to the general and limited partners and to the extent
necessary, acquire leases which contain drilling prospects. Net revenues
will not be reinvested in other revenue producing assets except to the extent
that performance of remedial work is needed to improve a well's producing
capabilities. The economic life of the Partnership thus depends on the
period over which the Partnership's oil and gas reserves are economically
recoverable.
Based on current conditions, management anticipates the Partnership could
possibly experience a normal decline of 5% to 7% a year. There are no
current plans to perform any workovers in the future.
<PAGE>
<PAGE>
Results of Operations
A. General Comparison of the Quarters Ended March 31, 1997 and 1996
The following table provides certain information regarding performance
factors for the quarters ended March 31, 1997 and 1996.
Three Months
Ended Percentage
March 31, Increase
1997 1996 (Decrease)
---- ---- ----------
Average price per barrel of oil $ 24.05 19.11 26%
Average price per mcf of gas $ 1.97 2.72 (28%)
Oil production in barrels 3,100 4,300 (28%)
Gas production in mcf 7,400 9,700 (24%)
Gross oil and gas revenue $ 89,119 107,885 (17%)
Net oil and gas revenue $ 53,155 67,447 (21%)
Partnership distributions $ 71,000 60,000 18%
Limited partner distributions $ 63,190 53,400 18%
Per unit distribution to limited
partners $ 44.91 37.95 18%
Number of limited partner units 1,407 1,407
Revenues
The Partnership's oil and gas revenues decreased to $89,119 from $107,885 for
the quarters ended March 31, 1997 and 1996, respectively, a decrease of 17%.
The principal factors affecting the comparison of the quarters ended March
31, 1997 and 1996 are as follows:
1. The average price for a barrel of oil received by the Partnership
increased during the quarter ended March 31, 1997 as compared to the
quarter ended March 31, 1996 by 26%, or $4.94 per barrel, resulting in an
increase of approximately $21,200 in revenues. Oil sales represented 84%
of total oil and gas sales during the quarter ended March 31, 1997 as
compared to 76% during the quarter ended March 31, 1996.
The average price for an mcf of gas received by the Partnership decreased
during the same period by 28%, or $ .75 per mcf, resulting in a decrease
of approximately $7,300 in revenues.
The net total increase in revenues due to the change in prices received
from oil and gas production is approximately $13,900. The market price
for oil and gas has been extremely volatile over the past decade and
management expects a certain amount of volatility to continue in the
foreseeable future.
<PAGE>
<PAGE>
2. Oil production decreased approximately 1,200 barrels or 28% during the
quarter ended March 31, 1997 as compared to the quarter ended March 31,
1996, resulting in a decrease of approximately $28,900 in revenues.
Gas production decreased approximately 2,300 mcf or 24% during the same
period, resulting in a decrease of approximately $4,500 in revenues.
The total decrease in revenues due to the change in production is
approximately $33,400.
Costs and Expenses
Total costs and expenses decreased to $61,776 from $73,533 for the quarters
ended March 31, 1997 and 1996, respectively, a decrease of 16%. The decrease
is the result of lower lease operating costs, general and administrative
expense and depletion expense.
1. Lease operating costs and production taxes were 11% lower, or
approximately $4,500 less during the quarter ended March 31, 1997 as
compared to the quarter ended March 31, 1996.
2. General and administrative costs consist of independent accounting and
engineering fees, computer services, postage, and Managing General
Partner personnel costs. General and administrative costs decreased 3%
or approximately $300 during the quarter ended March 31, 1997 as compared
to the quarter ended March 31, 1996.
3. Depletion expense decreased to $15,000 for the quarter ended March 31,
1997 from $22,000 for the same period in 1996. This represents a
decrease of 32%. Depletion is calculated using the units of revenue
method of amortization based on a percentage of current period gross
revenues to total future gross oil and gas revenues, as estimated by the
Partnership's independent petroleum consultants. Contributing factors to
the decline in depletion expense between the comparative periods were the
decline in oil and gas revenue and the increase in the price of oil used
to determine the Partnership's reserves for January 1, 1997 as compared
to 1996.
<PAGE>
<PAGE>
Liquidity and Capital Resources
The primary source of cash is from operations, the receipt of income from
interests in oil and gas properties. The Partnership knows of no material
change, nor does it anticipate any such change.
Cash flows provided by operating activities were approximately $63,300 in the
quarter ended March 31, 1997 as compared to approximately $60,300 in the
quarter ended March 31, 1996. The primary source of the 1997 cash flow from
operating activities was profitable operations.
Cash flows used in financing activities were $71,000 in the quarter ended
March 31, 1997 as compared to $60,000 in the quarter ended March 31, 1996.
The only use in financing activities was the distributions to partners.
Total distributions during the quarter ended March 31, 1997 were $71,000 of
which $63,190 was distributed to the investor partners and $7,810 to the
Managing General Partner. The per unit distribution to investor partners
during the quarter ended March 31, 1997 was $44.91. Total distributions
during the quarter ended March 31, 1996 were $60,000 of which $53,400 was
distributed to the investor partners and $6,600 to the Managing General
Partner. The per unit distribution to investor partners during the quarter
ended March 31, 1996 was $37.95.
The source for the 1997 distributions of $71,000 was oil and gas operations
of approximately $63,300, with the balance from available cash on hand at the
beginning of the period. The source for the 1996 distributions of $60,000
was oil and gas operations of approximately $60,300, resulting in excess cash
for contingencies or subsequent distributions.
Since inception of the Partnership, cumulative monthly cash distributions of
$841,215 have been made to the partners. As of March 31, 1997, $749,057 or
$532.38 per investor partner unit has been distributed to the investor
partners, representing a 53% return of the capital contributed.
As of March 31, 1997, the Partnership had approximately $44,900 in working
capital. The Managing General Partner knows of no unusual contractual
commitments and believes the revenues generated from operations are adequate
to meet the needs of the Partnership.
<PAGE>
<PAGE>
PART II. - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matter to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
27 Financial Data Schedule
(b) Reports on Form 8-K:
No reports on Form 8-K were filed during the quarter for
which this report is filed.
<PAGE>
<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 thereunto duly authorized.
SOUTHWEST DEVELOPMENTAL
DRILLING FUND 92-A, L.P.
a Delaware limited partnership
By: Southwest Royalties, Inc.
Managing General Partner
By: /s/ Bill E. Coggin
------------------------------
Bill E. Coggin, Vice President
and Chief Financial Officer
Date: May 15, 1997
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Balance Sheet at March 31, 1997 (Unaudited) and the Statement of Operations
for the Three Months Ended March 31, 1997 (Unaudited) and is qualified in
its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 9,993
<SECURITIES> 0
<RECEIVABLES> 38,900
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 48,893
<PP&E> 1,315,532
<DEPRECIATION> 616,000
<TOTAL-ASSETS> 754,997
<CURRENT-LIABILITIES> 3,950
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 751,047
<TOTAL-LIABILITY-AND-EQUITY> 754,997
<SALES> 89,119
<TOTAL-REVENUES> 89,285
<CGS> 35,964
<TOTAL-COSTS> 35,964
<OTHER-EXPENSES> 25,812
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 27,509
<INCOME-TAX> 0
<INCOME-CONTINUING> 27,509
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 27,509
<EPS-PRIMARY> 16.06
<EPS-DILUTED> 16.06
</TABLE>
