UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
/ x / Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 1996
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 No. 33-38582-01
PARKER & PARSLEY 91-A, L.P.
(Exact name of Registrant as specified in its charter)
Delaware 75-2387572
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
303 West Wall, Suite 101, Midland, Texas 79701
(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code : (915) 683-4768
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the 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 / /
Page 1 of 11 pages.
-There are no exhibits-
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PARKER & PARSLEY 91-A, L.P.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of September 30, 1996 and
December 31, 1995 .................................. 3
Statements of Operations for the three and nine
months ended September 30, 1996 and 1995............... 4
Statement of Partners' Capital for the nine months
ended September 30, 1996............................... 5
Statements of Cash Flows for the nine months ended
September 30, 1996 and 1995............................ 6
Notes to Financial Statements............................ 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.................... 7
Part II. Other Information........................................ 10
Signatures........................................... 11
2
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PARKER & PARSLEY 91-A, L.P.
(A Delaware Limited Partnership)
Part 1. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
September 30, December 31,
1996 1995
------------ -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $200,151 at September 30
and $173,066 at December 31 $ 200,238 $ 174,500
Accounts receivable - oil and gas sales 145,083 138,831
---------- ----------
Total current assets 345,321 313,331
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,652,188 9,644,611
Accumulated depletion (5,716,081) (5,446,864)
---------- ----------
Net oil and gas properties 3,936,107 4,197,747
---------- ----------
$ 4,281,428 $ 4,511,078
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 52,549 $ 77,621
Partners' capital:
Limited partners (11,620 interests) 4,186,547 4,389,079
Managing general partner 42,332 44,378
---------- ----------
4,228,879 4,433,457
---------- ----------
$ 4,281,428 $ 4,511,078
========== ==========
The financial information included as of September 30, 1996 has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
3
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PARKER & PARSLEY 91-A, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
---------------------- -----------------------
1996 1995 1996 1995
--------- --------- ---------- ----------
Revenues:
Oil and gas $ 375,989 $ 336,301 $1,111,190 $1,046,413
Interest 2,922 2,970 7,638 7,724
-------- -------- --------- ---------
378,911 339,271 1,118,828 1,054,137
-------- -------- --------- ---------
Costs and expenses:
Oil and gas production 142,009 119,142 425,704 447,945
General and administrative 12,240 11,907 36,273 32,106
Depletion 88,309 121,523 269,217 376,467
-------- -------- --------- ---------
242,558 252,572 731,194 856,518
-------- -------- --------- ---------
Net income $ 136,353 $ 86,699 $ 387,634 $ 197,619
======== ======== ========= =========
Allocation of net income:
Managing general partner $ 1,363 $ 867 $ 3,876 $ 1,976
======== ======== ========= =========
Limited partners $ 134,990 $ 85,832 $ 383,758 $ 195,643
======== ======== ========= =========
Net income per limited
partnership interest $ 11.62 $ 7.39 $ 33.03 $ 16.84
======== ======== ========= =========
Distribution per limited
partnership interest $ 17.92 $ 16.00 $ 50.46 $ 49.70
======== ======== ========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
4
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PARKER & PARSLEY 91-A, L.P.
(A Delaware Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
-------- ---------- ----------
Balance at January 1, 1996 $ 44,378 $4,389,079 $4,433,457
Distributions (5,922) (586,290) (592,212)
Net income 3,876 383,758 387,634
------- --------- ---------
Balance at September 30, 1996 $ 42,332 $4,186,547 $4,228,879
======= ========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
5
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PARKER & PARSLEY 91-A, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended
September 30,
1996 1995
--------- ---------
Cash flows from operating activities:
Net income $ 387,634 $ 197,619
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 269,217 376,467
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (6,252) 20,453
Increase (decrease) in accounts payable (23,946) 49,408
-------- --------
Net cash provided by operating activities 626,653 643,947
-------- --------
Cash flows from investing activities:
Additions to oil and gas properties (8,703) (21,002)
-------- --------
Cash flows from financing activities:
Cash distributions to partners (592,212) (583,431)
-------- --------
Net increase in cash and cash equivalents 25,738 39,514
Cash and cash equivalents at beginning of period 174,500 110,131
-------- --------
Cash and cash equivalents at end of period $ 200,238 $ 149,645
======== ========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
6
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PARKER & PARSLEY 91-A, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 30, 1996
(Unaudited)
Note 1.
Parker & Parsley 91-A, L.P. (the "Registrant") is a limited partnership
organized in 1991 under the laws of the State of Delaware.
The Registrant engages primarily in oil and gas development and production in
Texas and is not involved in any industry segment other than oil and gas.
Note 2.
In the opinion of management, the Registrant's unaudited financial statements as
of September 30, 1996 and for the three and nine months ended September 30, 1996
and 1995 include all adjustments and accruals consisting only of normal
recurring accrual adjustments which are necessary for a fair presentation of the
results for the interim period. These interim results are not necessarily
indicative of results for a full year.
Certain information and footnote disclosure normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted in this Form 10-Q pursuant to the rules and
regulations of the Securities and Exchange Commission. The financial statements
should be read in conjunction with the financial statements and the notes
thereto contained in the Registrant's Report on Form 10-K for the year ended
December 31, 1995, as filed with the Securities and Exchange Commission, a copy
of which is available upon request by writing to Steven L. Beal, Senior Vice
President, 303 W. Wall, Suite 101, Midland, Texas 79701.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (1)
Results of Operations
Nine months ended September 30, 1996 compared with nine months ended September
30, 1995
Revenues:
The Registrant's oil and gas revenues increased to $1,111,190 from $1,046,413
for the nine months ended September 30, 1996 and 1995, respectively, an increase
of 6%. The increase in revenues resulted from a 21% increase in the average
price received per barrel of oil and a 31% increase in the average price
7
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received per mcf of gas, offset by an 11% decrease in barrels of oil produced
and sold and a 20% decrease in mcf of gas produced and sold. For the nine months
ended September 30, 1996, 41,499 barrels of oil were sold compared to 46,817 for
the same period in 1995, a decrease of 5,318 barrels. For the nine months ended
September 30, 1996, 112,222 mcf of gas were sold compared to 141,031 for the
same period in 1995, a decrease of 28,809 mcf. The decrease in barrels of oil
and mcf of gas produced and sold was due to the decline characteristics of the
Registrant's oil and gas properties. Management expects a certain amount of
decline in production to continue in the future until the Registrant's
economically recoverable reserves are fully depleted.
The average price received per barrel of oil increased $3.55 from $17.26 for the
nine months ended September 30, 1995 to $20.81 for the same period in 1996 while
the average price received per mcf of gas increased from $1.69 during the nine
months ended September 30, 1995 to $2.21 for the same period in 1996. The market
price for oil and gas has been extremely volatile in the past decade, and
management expects a certain amount of volatility to continue in the foreseeable
future. The Registrant may therefore sell its future oil and gas production at
average prices lower or higher than that received during the nine months ended
September 30, 1996.
Costs and Expenses:
Total costs and expenses decreased to $731,194 for the nine months ended
September 30, 1996 as compared to $856,518 for the same period in 1995, a
decrease of $125,324, or 15%. This decrease was due to declines in production
costs and depletion, offset by an increase in general and administrative
expenses ("G&A").
Production costs were $425,704 for the nine months ended September 30, 1996 and
$447,945 for the same period in 1995, resulting in a $22,241 decrease, or 5%.
This decrease was due to a reduction in well repair and maintenance costs.
G&A components are independent accounting and engineering fees, computer
services, postage and managing general partner personnel costs. During this
period, G&A increased, in aggregate, 13% from $32,106 for the nine months ended
September 30, 1995 to $36,273 for the same period in 1996.
Depletion was $269,217 for the nine months ended September 30, 1996 compared to
$376,467 for the same period in 1995, representing a decrease of $107,250, or
28%, primarily attributable to the following factors: (i) a reduction in the
Registrant's net depletable basis from charges taken in accordance with
Statement of Financial Accounting Standards No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of"
("FAS 121"), (ii) a reduction in oil production of 5,318 barrels for the nine
months ended September 30, 1996 as compared to the same period in 1995, and
(iii) an increase in oil and gas reserves during the third quarter of 1996 as a
result of higher commodity prices.
8
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Three months ended September 30, 1996 compared with three months ended September
30, 1995
Revenues:
The Registrant's oil and gas revenues increased to $375,989 from $336,301 for
the three months ended September 30, 1996 and 1995, respectively, an increase of
12%. The increase in revenues resulted from a 31% increase in the average price
received per barrel of oil and a 30% increase in the average price received per
mcf of gas, offset by a 12% decrease in barrels of oil produced and sold and a
21% decrease in mcf of gas produced and sold. For the three months ended
September 30, 1996, 13,444 barrels of oil were sold compared to 15,271 for the
same period in 1995, a decrease of 1,827 barrels. For the three months ended
September 30, 1996, 39,196 mcf of gas were sold compared to 49,655 for the same
period in 1995, a decrease of 10,459 mcf. The decrease in barrels of oil and mcf
of gas produced and sold was due to the decline characteristics of the
Registrant's oil and gas properties.
The average price received per barrel of oil increased $5.05 from $16.53 for the
three months ended September 30, 1995 to $21.58 for the same period in 1996
while the average price received per mcf of gas increased from $1.69 during the
three months ended September 30, 1995 to $2.19 for the same period in 1996.
Costs and Expenses:
Total costs and expenses decreased to $242,558 for the three months ended
September 30, 1996 as compared to $252,572 for the same period in 1995, a
decrease of $10,014, or 4%. This decrease was due to a decline in depletion,
offset by an increase in production costs and G&A.
Production costs were $142,009 for the three months ended September 30, 1996 and
$119,142 for the same period in 1995, resulting in a $22,867 increase, or 19%.
This increase was due to additional well repair and maintenance costs and higher
ad valorem taxes.
G&A's components are independent accounting and engineering fees, computer
services, postage and managing general partner personnel costs. During this
period, G&A increased, in aggregate, 3%, from $11,907 for the three months ended
September 30, 1995 to $12,240 for the same period in 1996.
Depletion was $88,309 for the three months ended September 30, 1996 compared to
$121,523 for the same period in 1995, representing a decrease of $33,214, or
27%. This decrease was primarily attributable to the following factors: (i) a
reduction in the Registrant's net depletable basis from charges taken in
accordance with FAS 121, (ii) a reduction in oil production of 1,827 barrels for
the three months ended September 30, 1996 as compared to the same period in
1995, and (iii) an increase in oil and gas reserves during the third quarter of
1996 as a result of higher commodity prices.
9
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Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities decreased $17,294 during the nine
months ended September 30, 1996 from the same period in 1995. This decrease was
the result of additional production costs paid, offset by an increase in oil and
gas sales.
Net Cash Used in Investing Activities
The Registrant's investing activities during the nine months ended September 30,
1996 and 1995 included expenditures related to equipment replacement on various
oil and gas properties.
Net Cash Used in Financing Activities
Cash was sufficient for the nine months ended September 30, 1996 to cover
distributions to the partners of $592,212 of which $586,290 was distributed to
the limited partners and $5,922 to the managing general partner. For the same
period ended September 30, 1995, cash was sufficient for distributions to the
partners of $583,431 of which $577,543 was distributed to the limited partners
and $5,888 to the managing general partner.
It is expected that future net cash provided by operating activities will be
sufficient for any capital expenditures and any distributions. As the production
from the properties declines, distributions are also expected to decrease.
- - ---------------
(1) "Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations" contains forward looking statements that involve
risks and uncertainties. Accordingly, no assurances can be given that the
actual events and results will not be materially different than the
anticipated results described in the forward looking statements.
Part II. Other Information
None.
10
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PARKER & PARSLEY 91-A, L.P.
(A Delaware Limited Partnership)
S I G N A T U R E S
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.
PARKER & PARSLEY 91-A, L.P.
By: Parker & Parsley Petroleum USA, Inc.,
("PPUSA"), Managing General Partner
Dated: November 6, 1996 By: /s/ Steven L. Beal
-------------------------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
11
<PAGE>
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<NAME> 91A.TXT
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 200,238
<SECURITIES> 0
<RECEIVABLES> 145,083
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 345,321
<PP&E> 9,652,188
<DEPRECIATION> 5,716,081
<TOTAL-ASSETS> 4,281,428
<CURRENT-LIABILITIES> 52,549
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,228,879
<TOTAL-LIABILITY-AND-EQUITY> 4,281,428
<SALES> 1,111,190
<TOTAL-REVENUES> 1,118,828
<CGS> 0
<TOTAL-COSTS> 731,194
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 387,634
<INCOME-TAX> 0
<INCOME-CONTINUING> 387,634
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 387,634
<EPS-PRIMARY> 33.03
<EPS-DILUTED> 0
</TABLE>
