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 March 31, 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
March 31, December 31,
1996 1995
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $138,213 at March 31 and
$173,066 at December 31 $ 138,313 $ 174,500
Accounts receivable - oil and gas sales 132,019 138,831
---------- ----------
Total current assets 270,332 313,331
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,646,411 9,644,611
Accumulated depletion 5,535,595) (5,446,864)
---------- ----------
Net oil and gas properties 4,110,816 4,197,747
---------- ----------
$ 4,381,148 $ 4,511,078
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 27,605 $ 77,621
Partners' capital:
Limited partners (11,620 interests) 4,309,964 4,389,079
Managing general partner 43,579 44,378
---------- ----------
4,353,543 4,433,457
---------- ----------
$ 4,381,148 $ 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
March 31,
1996 1995
---------- ----------
Revenues:
Oil and gas sales $ 349,838 $ 362,509
Interest income 2,317 2,205
--------- ---------
Total revenues 352,155 364,714
Costs and expenses:
Production costs 150,913 164,902
General and administrative expenses 10,495 5,423
Depletion 88,731 135,505
--------- ---------
Total costs and expenses 250,139 305,830
--------- ---------
Net income $ 102,016 $ 58,884
========= =========
Allocation of net income:
Managing general partner $ 1,021 $ 589
========= =========
Limited partners $ 100,995 $ 58,295
========= =========
Net income per limited partnership interest $ 8.69 $ 5.02
========= =========
Distributions per limited partnership interest $ 15.50 $ 18.16
========= =========
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 (2,131) (210,964) (213,095)
Net income 589 58,295 58,884
---------- ---------- ----------
Balance at March 31, 1995 $ 58,038 $ 5,736,117 $ 5,794,155
========== ========== ==========
Balance at January 1, 1996 $ 44,378 $ 4,389,079 $ 4,433,457
Distributions (1,820) (180,110) (181,930)
Net income 1,021 100,995 102,016
---------- ---------- ----------
Balance at March 31, 1996 $ 43,579 $ 4,309,964 $ 4,353,543
========== ========== ==========
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)
Three months ended
March 31,
1996 1995
---------- ----------
Cash flows from operating activities:
Net income $ 102,016 $ 58,884
Adjustment to reconcile net income to
net cash provided by operating activities:
Depletion 88,731 135,505
Changes in assets and liabilities:
Decrease in accounts receivable 6,812 944
Increase (decrease) in accounts payable (48,890) 20,715
--------- ---------
Net cash provided by operating activities 148,669 216,048
Cash flows from investing activities:
Additions to oil and gas properties (2,926) (9,719)
Cash flows from financing activities:
Cash distributions to partners (181,930) (213,095)
--------- ---------
Net decrease in cash and cash equivalents (36,187) (6,766)
Cash and cash equivalents at beginning of perio 174,500 110,131
--------- ---------
Cash and cash equivalents at end of period $ 138,313 $ 103,365
========= =========
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
March 31, 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 unaudited financial statements as of March 31,
1996 of the Registrant 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 W. Wall, Suite 101, Midland, Texas
79701.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations(1)
The Registrant was formed September 30, 1991. The managing general partner of
the Registrant at December 31, 1994 was Parker & Parsley Oil & Gas Company
("PPOG"), a Delaware corporation. Effective January 1, 1995, PPOG continued to
serve as the sole general partner; however, its name was changed to Parker &
Parsley Petroleum USA, Inc. ("PPUSA"). The managing general partner has the
power and authority to manage, control and administer all Registrant affairs.
The partners contributed $11,620,000 representing 11,620 interests ($1,000 per
interest) sold to a total of 705 subscribers of which $3,512,000 was sold to 199
subscribers as general partner interests and $8,108,000 was sold to 506
subscribers as limited partner interests.
Since its formation, the Registrant has invested $9,796,264 in various prospects
that were drilled in Texas. One well was plugged and abandoned in 1993. At March
31, 1996, the Registrant had 47 producing oil and gas wells.
6
<PAGE>
Results of Operations
Revenues:
The Registrant's oil and gas revenues decreased to $349,838 from $362,509 for
the three months ended March 31, 1996 and 1995, respectively, a decrease of 3%.
This decrease was due to a 17% decline in barrels of oil produced and sold and
an 11% decline in mcf of gas produced and sold, offset by a 10% increase in the
average price received per barrel of oil and a 31% increase in the average price
received per mcf of gas. For the three months ended March 31, 1996, 13,603
barrels of oil were sold compared to 16,455 for the same period in 1995, a
decrease of 2,852 barrels. For the three months ended March 31, 1996, 39,478 mcf
of gas were sold compared to 44,196 for the same period in 1995, a decrease of
4,718 mcf. The decreases in production volumes were primarily 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 $1.68 from $17.22 for the
three months ended March 31, 1995 to $18.90 for the same period in 1996 while
the average price received per mcf of gas increased from $1.79 during the three
months ended March 31, 1995 to $2.35 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 three months ended March 31, 1996.
Costs and Expenses:
Total costs and expenses decreased to $250,139 for the three months ended March
31, 1996 as compared to $305,830 for the same period in 1995, a decrease of
$55,691, or 18%. 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 $150,913 for the three months ended March 31, 1996 and
$164,902 for the same period in 1995, resulting in a $13,989 decrease, or 8%.
This decrease resulted from reductions 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 increased, in aggregate, from $5,423 for the three months ended
March 31, 1995 to $10,495 for the same period in 1996. The Partnership agreement
limits G&A to 3% of gross oil and gas revenues.
Depletion was $88,731 for the three months ended March 31, 1996 compared to
$135,505 for the same period in 1995. This represented a decrease in depletion
of $46,774, or 35%, primarily attributable to the adoption of the provisions of
Statement of Financial Accounting Standards No. 121, "Accounting for the
7
<PAGE>
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of"
effective for 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 2,852 barrels
for the three months ended March 31, 1996 from the same period in 1995 while oil
reserves of barrels were revised downward by 86,521 barrels, or 10%.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities was $148,669 for the three months
ended March 31, 1996, a 31% decrease from the same period ended March 31, 1995.
This decrease was due to a decline in oil and gas sales receipts and increases
in expenditures for production costs and G&A. The decline in oil and gas sales
receipts was due to decreases in oil and gas production. The increase in
production cost expenditures was due to additional well repair and maintenance
costs. G&A increased due to more allocated expenses by the managing general
partner.
Net Cash Used in Investing Activities
The Registrant's principal investing activities during the three months ended
March 31, 1996 was for repair and maintenance activity on various oil and gas
properties.
Net Cash Used in Financing Activities
Cash was sufficient for the three months ended March 31, 1996 to cover
distributions to the partners of $181,930 of which $180,110 was distributed to
the limited partners and $1,820 to the managing general partner. Cash was
sufficient for the same period ended March 31, 1995 to cover distributions to
the partners of $213,095 of which $210,964 was distributed to the limited
partners and $2,131 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.
8
<PAGE>
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, LTD.
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), Managing General Partner
Dated: May 14, 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 138,313
<SECURITIES> 0
<RECEIVABLES> 132,019
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 270,332
<PP&E> 9,646,411
<DEPRECIATION> 5,535,595
<TOTAL-ASSETS> 4,381,148
<CURRENT-LIABILITIES> 27,605
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,353,543
<TOTAL-LIABILITY-AND-EQUITY> 4,381,148
<SALES> 349,838
<TOTAL-REVENUES> 352,155
<CGS> 0
<TOTAL-COSTS> 250,139
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 102,016
<INCOME-TAX> 0
<INCOME-CONTINUING> 102,016
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 102,016
<EPS-PRIMARY> 8.69
<EPS-DILUTED> 0
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