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, 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 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.
Exhibit index on page 10.
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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 June 30, 1997 and
December 31, 1996 ..................................... 3
Statements of Operations for the three and six
months ended June 30, 1997 and 1996....................... 4
Statement of Partners' Capital for the six months
ended June 30, 1997....................................... 5
Statements of Cash Flows for the six months ended
June 30, 1997 and 1996.................................... 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
Item 6. Exhibits and Reports on Form 8-K............................ 10
27. Financial Data Schedule
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
June 30, December 31,
1997 1996
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $251,411 at June 30
and $200,661 at December 31 $ 251,647 $ 202,546
Accounts receivable - oil and gas sales 138,774 234,215
---------- ----------
Total current assets 390,421 436,761
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,658,379 9,653,538
Accumulated depletion (5,973,385) (5,800,421)
---------- ----------
Net oil and gas properties 3,684,994 3,853,117
---------- ----------
$ 4,075,415 $ 4,289,878
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 50,353 $ 35,361
Partners' capital:
Managing general partner 40,294 42,588
Limited partners (11,620 interests) 3,984,768 4,211,929
---------- ----------
4,025,062 4,254,517
---------- ----------
$ 4,075,415 $ 4,289,878
========== ==========
The financial information included as of June 30, 1997 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 Six months ended
June 30, June 30,
--------------------- ---------------------
1997 1996 1997 1996
--------- --------- --------- ---------
Revenues:
Oil and gas $ 337,759 $ 385,363 $ 736,541 $ 735,201
Interest 3,967 2,399 7,042 4,716
-------- -------- -------- --------
341,726 387,762 743,583 739,917
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 133,035 132,782 257,576 283,695
General and administrative 14,930 13,538 24,119 24,033
Depletion 88,717 92,177 172,964 180,908
-------- -------- -------- --------
236,682 238,497 454,659 488,636
-------- -------- -------- --------
Net income $ 105,044 $ 149,265 $ 288,924 $ 251,281
======== ======== ======== ========
Allocation of net income:
Managing general partner $ 1,050 $ 1,492 $ 2,889 $ 2,513
======== ======== ======== ========
Limited partners $ 103,994 $ 147,773 $ 286,035 $ 248,768
======== ======== ======== ========
Net income per limited
partnership interest $ 8.95 $ 12.72 $ 24.62 $ 21.41
======== ======== ======== ========
Distribution per limited
partnership interest $ 20.61 $ 17.04 $ 44.16 $ 32.54
======== ======== ======== ========
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, 1997 $ 42,588 $4,211,929 $4,254,517
Distributions (5,183) (513,196) (518,379)
Net income 2,889 286,035 288,924
-------- --------- ---------
Balance at June 30, 1997 $ 40,294 $3,984,768 $4,025,062
======== ========= =========
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)
STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
June 30,
-----------------------
1997 1996
---------- ----------
Cash flows from operating activities:
Net income $ 288,924 $ 251,281
Adjustment to reconcile net income to net cash
provided by operating activities:
Depletion 172,964 180,908
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 95,441 (1,915)
Increase (decrease) in accounts payable 14,992 (33,912)
--------- ---------
Net cash provided by operating activities 572,321 396,362
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (4,841) (1,771)
Cash flows from financing activities:
Cash distributions to partners (518,379) (381,929)
--------- ---------
Net increase in cash and cash equivalents 49,101 12,662
Cash and cash equivalents at beginning of period 202,546 174,500
--------- ---------
Cash and cash equivalents at end of period $ 251,647 $ 187,162
========= =========
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
<PAGE>
PARKER & PARSLEY 91-A, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 1997
(Unaudited)
Note 1. Basis of presentation
In the opinion of management, the unaudited financial statements of Parker &
Parsley 91-A, L.P. (the "Partnership") as of June 30, 1997 and for the three and
six months ended June 30, 1997 and 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. 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 Partnership's Report on Form 10-K for the year ended
December 31, 1996, as filed with the Securities and Exchange Commission, a copy
of which is available upon request by writing to Rich Dealy, Controller, 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, 1997 compared with six months ended
June 30, 1996
Revenues:
The Partnership's oil and gas revenues increased to $736,541 from $735,201 for
the six months ended June 30, 1997 as compared to the six months ended June 30,
1996. The increase in revenues resulted from an 11% increase in the average
price received per mcf of gas, a 3% increase in mcf of gas produced and sold,
and a slight increase in the average price received per barrel of oil, offset by
a 4% decrease in barrels of oil produced and sold. For the six months ended June
30, 1997, 26,912 barrels of oil were sold compared to 28,055 for the same period
in 1996, a decrease of 1,143 barrels. For the six months ended June 30, 1997,
75,037 mcf of gas were sold compared to 73,026 for the same period in 1996, an
increase of 2,011 mcf. The decrease in barrels of oil produced and sold was due
to the decline characteristics of the Partnership's oil and gas properties. The
increase in mcf of gas produced and sold was due to operational changes on
several wells. Because of the decline characteristics of the Partnership's
7
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properties, management expects a certain amount of decline in production in the
future until the Partnership's economically recoverable reserves are fully
depleted.
The average price received per barrel of oil increased slightly from $20.43 for
the six months ended June 30, 1996 to $20.51 for the same period ended June 30,
1997, while the average price received per mcf of gas increased from $2.22
during the six months ended June 30, 1996 to $2.46 in 1997. 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 Partnership 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,
1997.
Costs and Expenses:
Total costs and expenses decreased to $454,659 for the six months ended June 30,
1997 as compared to $488,636 for the same period in 1996, a decrease of $33,977,
or 7%. 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 $257,576 for the six months ended June 30, 1997 and
$283,695 for the same period in 1996 resulting in a $26,119 decrease, or 9%.
This decrease resulted from a decline in well repair and maintenance costs.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A increased
from $24,033 for the six months ended June 30, 1996 to $24,119 for the same
period in 1997.
Depletion was $172,964 for the six months ended June 30, 1997 compared to
$180,908 for the same period in 1996. This represented a decrease in depletion
of $7,944, or 4%.
Three months ended June 30, 1997 compared with three months ended
June 30, 1996
Revenues:
The Partnership's oil and gas revenues decreased 12% to $337,759 from $385,363
for the three months ended June 30, 1997 as compared to the three months ended
June 30, 1996. The decrease in revenues resulted from a 14% decrease in the
average price received per barrel of oil and 7% decrease in barrels of oil
produced and sold, offset by an 18% increase in mcf of gas produced and sold and
a 3% increase in the average price received per mcf of gas. For the three months
ended June 30, 1997, 13,426 barrels of oil were sold compared to 14,452 for the
same period in 1996, a decrease of 1,026 barrels. For the three months ended
June 30, 1997, 39,571 mcf of gas were sold compared to 33,548 for the same
period in 1996, an increase of 6,023 mcf. The decrease in barrels of oil
produced and sold was due to the decline characteristics of the Partnership's
oil and gas properties. The increase in the mcf of gas produced and sold was due
to operational changes on several wells.
8
<PAGE>
The average price received per barrel of oil decreased $3.00 from $21.87 during
the three months ended June 30, 1996 to $18.87 in 1997, while the average price
received per mcf of gas increased from $2.06 for the three months ended June 30,
1996 to $2.13 for the same period in 1997.
Costs and Expenses:
Total costs and expenses decreased slightly to $236,682 for the three months
ended June 30, 1997 as compared to $238,497 for the same period in 1996, a
decrease of $1,815. This decline was due to a decrease in depletion, offset by
increases in G&A and production costs.
Production costs were $133,035 for the three months ended June 30, 1997 and
$132,782 for the same period in 1996 resulting in a $253 increase. This increase
was primarily due to additional well repair and maintenance costs.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A
increased, in aggregate, 10% from $13,538 for the three months ended June 30,
1996 to $14,930 for the same period in 1997.
Depletion was $88,717 for the three months ended June 30, 1997 compared to
$92,177 for the same period in 1996. This represented a decrease in depletion of
$3,460, or 4%.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $175,959 during the six
months ended June 30, 1997 from same period ended June 30, 1996. This increase
was primarily the result of an increase in oil and gas sales receipts and a
decrease in production costs paid.
Net Cash Used in Investing Activities
The Partnership's principal investing activities during the six months ended
June 30, 1997 and 1996 included expenditures related to equipment replacement on
various oil and gas properties.
Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1997 to cover
distributions to the partners of $518,379 of which $5,183 was distributed to the
managing general partner and $513,196 to the limited partners. For the same
period ended June 30, 1996, cash was sufficient for distributions to the
partners of $381,929 of which $3,820 was distributed to the managing general
partner and $378,109 to the limited partners.
9
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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
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K - 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: August 8, 1997 By: /s/ Rich Dealy
---------------------------------
Rich Dealy, Controller of PPUSA
11
<PAGE>
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<CIK> 0000871364
<NAME> 91A.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 251,647
<SECURITIES> 0
<RECEIVABLES> 138,774
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 390,421
<PP&E> 9,658,379
<DEPRECIATION> 5,973,385
<TOTAL-ASSETS> 4,075,415
<CURRENT-LIABILITIES> 50,353
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,025,062
<TOTAL-LIABILITY-AND-EQUITY> 4,075,415
<SALES> 736,541
<TOTAL-REVENUES> 743,583
<CGS> 0
<TOTAL-COSTS> 454,659
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 288,924
<INCOME-TAX> 0
<INCOME-CONTINUING> 288,924
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 288,924
<EPS-PRIMARY> 24.62
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