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 June 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 10 pages.
-There are no exhibits-
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PARKER & PARSLEY 91-A, L.P.
(A Delaware Limited Partnership)
Part 1. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
June 30, December 31,
1996 1995
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $186,962 at June 30
and $173,066 at December 31 $ 187,162 $ 174,500
Accounts receivable - oil and gas sales 140,746 138,831
---------- ----------
Total current assets 327,908 313,331
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,645,256 9,644,611
Accumulated depletion (5,627,772) (5,446,864)
---------- ----------
Net oil and gas properties 4,017,484 4,197,747
---------- ----------
$ 4,345,392 $ 4,511,078
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 42,583 $ 77,621
Partners' capital:
Limited partners (11,620 interests) 4,259,738 4,389,079
Managing general partner 43,071 44,378
---------- ----------
4,302,809 4,433,457
---------- ----------
$ 4,345,392 $ 4,511,078
========== ==========
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.
2
<PAGE>
PARKER & PARSLEY 91-A, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
--------------------- ---------------------
1996 1995 1996 1995
--------- --------- --------- ---------
Revenues:
Oil and gas sales $ 385,363 $ 347,603 $ 735,201 $ 710,112
Interest income 2,399 2,549 4,716 4,754
-------- -------- -------- --------
Total revenues 387,762 350,152 739,917 714,866
Costs and expenses:
Production costs 132,782 163,901 283,695 328,803
General and administrative
expenses 13,538 14,776 24,033 20,199
Depletion 92,177 119,439 180,908 254,944
-------- -------- -------- --------
Total costs and expenses 238,497 298,116 488,636 603,946
-------- -------- -------- --------
Net income $ 149,265 $ 52,036 $ 251,281 $ 110,920
======== ======== ======== ========
Allocation of net income:
Managing general partner $ 1,492 $ 520 $ 2,513 $ 1,109
======== ======== ======== ========
Limited partners $ 147,773 $ 51,516 $ 248,768 $ 109,811
======== ======== ======== ========
Net income per limited
partnership interest $ 12.72 $ 4.43 $ 21.41 $ 9.45
======== ======== ======== ========
Distribution per limited
partnership interest $ 17.04 $ 15.54 $ 32.54 $ 33.70
======== ======== ======== ========
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.
3
<PAGE>
PARKER & PARSLEY 91-A, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
---------- ---------- ----------
Balance at January 1, 1995 $ 59,580 $5,888,786 $5,948,366
Distributions (3,955) (391,623) (395,578)
Net income 1,109 109,811 110,920
--------- --------- ---------
Balance at June 30, 1995 $ 56,734 $5,606,974 $5,663,708
========= ========= =========
Balance at January 1, 1996 $ 44,378 $4,389,079 $4,433,457
Distributions (3,820) (378,109) (381,929)
Net income 2,513 248,768 251,281
--------- --------- ---------
Balance at June 30, 1996 $ 43,071 $4,259,738 $4,302,809
========= ========= =========
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
<PAGE>
PARKER & PARSLEY 91-A, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
June 30,
1996 1995
--------- ---------
Cash flows from operating activities:
Net income $ 251,281 $ 110,920
Adjustment to reconcile net income to net cash
provided by operating activities:
Depletion 180,908 254,944
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (1,915) 4,127
Increase (decrease) in accounts payable (33,912) 54,054
-------- --------
Net cash provided by operating activities 396,362 424,045
Cash flows from investing activities:
Additions to oil and gas properties (1,771) (13,500)
Cash flows from financing activities:
Cash distributions to partners (381,929) (395,578)
-------- --------
Net increase in cash and cash equivalents 12,662 14,967
Cash and cash equivalents at beginning of period 174,500 110,131
-------- --------
Cash and cash equivalents at end of period $ 187,162 $ 125,098
======== ========
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
<PAGE>
PARKER & PARSLEY 91-A, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 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 June 30, 1996 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. However, these interim results are not
necessarily indicative of results for a full year.
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 West Wall, Suite 101, Midland, Texas
79701.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (1)
Results of Operations
Six months ended June 30, 1996 compared with six months ended
June 30, 1995
Revenues:
The Registrant's oil and gas revenues increased to $735,201 from $710,112 for
the six months ended June 30, 1996 and 1995, respectively, an increase of 4%.
The increase in revenues resulted from a 16% increase in the average price
received per barrel of oil and a 31% increase in the average price 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 six months ended June 30,
1996, 28,055 barrels of oil were sold compared to 31,546 for the same period in
1995, a decrease of 3,491 barrels. For the six months ended June 30, 1996,
73,026 mcf of gas were sold compared to 91,376 for the same period in 1995, a
decrease of 18,350 mcf. The decrease in barrels of oil and mcf of gas produced
6
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and sold was due to the decline characteristics of the Registrant's oil and gas
properties. Because of these characteristics, 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 $2.82 from $17.61 for the
six months ended June 30, 1995 to $20.43 for the same period ended June 30, 1996
while the average price received per mcf of gas increased from $1.69 during the
six months ended June 30, 1995 to $2.22 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 six months ended June 30,
1996.
Costs and Expenses:
Total costs and expenses decreased to $488,636 for the six months ended June 30,
1996 as compared to $603,946 for the same period in 1995, a decrease of
$115,310, or 19%. 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 $283,695 for the six months ended June 30, 1996 and
$328,803 for the same period in 1995 resulting in a $45,108 decrease, or 14%.
This decrease resulted from a decline in well repair and maintenance costs and
lower ad valorem taxes.
G&A's components are independent accounting and engineering fees and managing
general partner personnel costs. During this period, G&A increased, in
aggregate, 19% from $20,199 for the six months ended June 30, 1995 to $24,033
for the same period in 1996.
Depletion was $180,908 for the six months ended June 30, 1996 compared to
$254,944 for the same period in 1995. This represented a decrease in depletion
of $74,036, or 29%, primarily attributable to the adoption of the provisions of
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") effective the fourth quarter of 1995 and the reduction of net
depletable basis resulting from the charge taken upon such adoption. Depletion
was computed property-by-property utilizing the unit-of-production method based
upon the dominant mineral produced, generally oil. Oil production decreased
3,491 barrels for the six months ended June 30, 1996 from the same period in
1995, while oil reserves of barrels were revised downward by 86,521 barrels, or
10%.
Three months ended June 30, 1996 compared with three months ended
June 30, 1995
Revenues:
The Registrant's oil and gas revenues increased to $385,363 from $347,603 for
the three months ended June 30, 1996 and 1995, respectively, an increase of 11%.
7
<PAGE>
The increase in revenues resulted from a 21% increase in the average price
received per barrel of oil and a 29% increase in the average price received per
mcf of gas, offset by a 4% decrease in barrels of oil produced and sold and a
29% decrease in mcf of gas produced and sold. For the three months ended June
30, 1996, 14,452 barrels of oil were sold compared to 15,091 for the same period
in 1995, a decrease of 639 barrels. For the three months ended June 30, 1996,
33,548 mcf of gas were sold compared to 47,180 for the same period in 1995, a
decrease of 13,632 mcf. The decrease in the barrels of oil and mcf of gas
produced and sold was due to the decline characteristics of the Regis trant's
oil and gas properties.
The average price received per barrel of oil increased $3.83 from $18.04 during
the three months ended June 30, 1995 to $21.87 in 1996, while the average price
received per mcf of gas increased from $1.60 for the three months ended June 30,
1995 to $2.06 for the same period in 1996.
Costs and Expenses:
Total costs and expenses decreased to $238,497 for the three months ended June
30, 1996 as compared to $298,116 for the same period in 1995, a decrease of
$59,619, or 20%. This decline was due to decreases in production costs,
depletion and G&A.
Production costs were $132,782 for the three months ended June 30, 1996 and
$163,901 for the same period in 1995 resulting in a $31,119 decrease, or 19%.
This decrease consisted of declines in well repair and maintenance costs and 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 decreased, in aggregate, 8% from $14,776 for the three months ended
June 30, 1995 to $13,538 for the same period in 1996.
Depletion was $92,177 for the three months ended June 30, 1996 compared to
$119,439 for the same period in 1995. This represented a decrease in depletion
of $27,262, or 23%, primarily attributable to the adoption of FAS 121 the fourth
quarter of 1995, as discussed previously. Oil production decreased 639 barrels
for the three months ended June 30, 1996 from the same period in 1995.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities decreased to $396,362 during the six
months ended June 30, 1996, a 7% decrease from same period ended June 30, 1995.
This decrease was primarily the net result of additional production costs paid
and an increase in oil and gas sales.
Net Cash Used in Investing Activities
The Registrant's principal investing activities during the six months ended June
30, 1996 and 1995 included expenditures related to equipment replacement on
various oil and gas properties.
8
<PAGE>
Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1996 to cover
distributions to the partners of $381,929 of which $378,109 was distributed to
the limited partners and $3,820 to the managing general partner. For the same
period ended June 30, 1995, cash was sufficient for distributions to the
partners of $395,578 of which $391,623 was distributed to the limited partners
and $3,955 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.
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>
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 Oil & Gas Company
Managing General Partner
Dated: August 8, 1996 By: /s/ Steven L. Beal
----------------------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
10
<PAGE>
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<CIK> 0000871364
<NAME> 91A.TXT
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 187,162
<SECURITIES> 0
<RECEIVABLES> 140,746
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 327,908
<PP&E> 9,645,256
<DEPRECIATION> 5,627,772
<TOTAL-ASSETS> 4,345,392
<CURRENT-LIABILITIES> 42,583
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,302,809
<TOTAL-LIABILITY-AND-EQUITY> 4,345,392
<SALES> 735,201
<TOTAL-REVENUES> 739,917
<CGS> 0
<TOTAL-COSTS> 488,636
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 251,281
<INCOME-TAX> 0
<INCOME-CONTINUING> 251,281
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 251,281
<EPS-PRIMARY> 21.41
<EPS-DILUTED> 0
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