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. 33-38582-02
PARKER & PARSLEY 91-B, L.P.
(Exact name of Registrant as specified in its charter)
Delaware 75-2397335
(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-B, 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-B, L.P.
(A Delaware Limited Partnership)
Part 1. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
September 30, December 31,
1996 1995
----------- -----------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $267,480 at September 30
and $189,032 at December 31 $ 267,599 $ 189,076
Accounts receivable - oil and gas sales 146,599 149,729
---------- ----------
Total current assets 414,198 338,805
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,698,109 9,698,832
Accumulated depletion (7,057,277) (6,906,614)
---------- ----------
Net oil and gas properties 2,640,832 2,792,218
---------- ----------
$ 3,055,030 $ 3,131,023
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 41,187 $ 65,203
Partners' capital:
Limited partners (11,249 interests) 2,986,738 3,038,195
Managing general partner 27,105 27,625
---------- ----------
3,013,843 3,065,820
---------- ----------
$ 3,055,030 $ 3,131,023
========== ==========
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-B, 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 $ 388,878 $ 333,466 $1,137,930 $1,070,739
Interest 3,436 3,569 9,204 8,659
-------- -------- --------- ---------
392,314 337,035 1,147,134 1,079,398
-------- -------- --------- ---------
Costs and expenses:
Oil and gas production 106,720 116,099 350,097 402,828
General and administrative 12,028 9,503 35,173 28,174
Depletion 46,346 64,875 150,873 210,446
Abandoned property 22 - 442 -
Loss on abandonment - - 1,221 -
-------- -------- --------- ---------
165,116 190,477 537,806 641,448
-------- -------- --------- ---------
Net income $ 227,198 $ 146,558 $ 609,328 $ 437,950
======== ======== ========= =========
Allocation of net income:
Managing general partner $ 2,272 $ 1,466 $ 6,093 $ 4,380
======== ======== ========= =========
Limited partners $ 224,926 $ 145,092 $ 603,235 $ 433,570
======== ======== ========= =========
Net income per limited
partnership interest $ 20.00 $ 12.90 $ 53.63 $ 38.54
======== ======== ========= =========
Distribution per limited
partnership interest $ 21.00 $ 18.50 $ 58.20 $ 52.74
======== ======== ========= =========
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-B, L.P.
(A Delaware Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
--------- ---------- ----------
Balance at January 1, 1996 $ 27,625 $3,038,195 $3,065,820
Distributions (6,613) (654,692) (661,305)
Net income 6,093 603,235 609,328
-------- --------- ---------
Balance at September 30, 1996 $ 27,105 $2,986,738 $3,013,843
======== ========= =========
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-B, 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 $ 609,328 $ 437,950
Adjustments to reconcile net income to
net cash provided by operating activities:
Depletion 150,873 210,446
Loss on abandonment 1,221 -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 3,130 (2,991)
Increase (decrease) in accounts payable (22,795) 39,946
-------- --------
Net cash provided by operating activities 741,757 685,351
-------- --------
Cash flows from investing activities:
Additions to oil and gas properties (1,983) (22,708)
Proceeds from equipment salvage on abandoned
property 54 -
-------- ------
Net cash used in investing activities (1,929) (22,708)
-------- --------
Cash flows from financing activities:
Cash distributions to partners (661,305) (599,346)
-------- --------
Net increase in cash and cash equivalents 78,523 63,297
Cash and cash equivalents at beginning of period 189,076 123,155
-------- --------
Cash and cash equivalents at end of period $ 267,599 $ 186,452
======== ========
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-B, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 30, 1996
(Unaudited)
Note 1.
Parker & Parsley 91-B, 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 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 $1,137,930 from $1,070,739
for the nine months ended September 30, 1996 and 1995, respectively, an increase
of 6%. The increase in revenues resulted from higher average prices received per
barrel of oil and mcf of gas, offset by a 12% decrease in barrels of oil
produced and sold and a 7% decrease in mcf of gas produced and sold. For the
sold. For the nine months ended September 30, 1996, 43,860 barrels of oil were
sold compared to 49,772 for the same period in 1995, a decrease of 5,912
barrels. For the nine months ended September 30, 1996, 93,692 mcf of gas were
sold compared to 100,752 for the same period in 1995, a decrease of 7,060 mcf.
7
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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 $3.15, or 18%, from
$17.60 for the nine months ended September 30, 1995 to $20.75 for the same
period in 1996 while the average price received per mcf of gas increased 26%
from $1.93 during the nine months ended September 30, 1995 to $2.43 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 $537,806 for the nine months ended
September 30, 1996 as compared to $641,448 for the same period in 1995, a
decrease of $103,642, or 16%. This decrease was due to declines in production
costs and depletion, offset by increases in general and administrative expenses
("G&A"), abandoned property costs and loss on abandonment.
Production costs were $350,097 for the nine months ended September 30, 1996 and
$402,828 for the same period in 1995, resulting in a $52,731 decrease, or 13%.
The decrease consisted of reductions in well repair and maintenance costs and
workover expenses.
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, 25% from $28,174 for the nine months ended
September 30, 1995 to $35,173 for the same period in 1996.
Depletion was $150,873 for the nine months ended September 30, 1996 compared to
$210,446 for the same period in 1995, representing a decrease of $59,573, or
28%. 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 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 5,912 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.
A loss on abandonment of $1,221 was recognized during the nine months ended
September 30, 1996. This loss resulted from the write-off of capitalized well
costs of $1,275 on the abandonment of a saltwater disposal well, less proceeds
received from equipment salvage of $54. Abandoned property costs associated with
the abandonment of this well totaled $442. There was no abandonment activity
during the nine months ended September 30, 1995.
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 $388,878 from $333,466 for
the three months ended September 30, 1996 and 1995, respectively, an increase of
17%. The increase in revenues resulted from higher average prices received per
barrel of oil and mcf of gas, offset by a 9% decrease in barrels of oil produced
and sold and a 9% decrease in mcf of gas produced and sold. For the three months
ended September 30, 1996, 14,434 barrels of oil were sold compared to 15,783 for
the same period in 1995, a decrease of 1,349 barrels. For the three months ended
September 30, 1996, 32,896 mcf of gas were sold compared to 36,323 for the same
period in 1995, a decrease of 3,427 mcf. The decreases in production volumes
were primarily due to the decline characteristics of the Registrant's oil and
gas properties.
The average price received per barrel of oil increased $4.74, or 28%, from
$16.86 for the three months ended September 30, 1995 to $21.60 for the same
period in 1996. The average price received per mcf of gas increased 26% from
$1.85 during the three months ended September 30, 1995 to $2.34 in 1996.
Costs and Expenses:
Total costs and expenses decreased to $165,116 for the three months ended
September 30, 1996 as compared to $190,477 for the same period in 1995, a
decrease of $25,361, or 13%. This decrease was due to declines in production
costs and depletion, offset by increased G&A and abandoned property costs.
Production costs were $106,720 for the three months ended September 30, 1996 and
$116,099 for the same period in 1995, resulting in a $9,379 decrease, or 8%.
This decrease was due to a reduction in workover expense, offset by an increase
in well repair and maintenance costs.
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 27% from $9,503 for the three months ended September 30,
1995 to $12,028 for the same period in 1996.
Depletion was $46,346 for the three months ended September 30, 1996 compared to
$64,875 for the same period in 1995, representing a decrease of $18,529, or 29%,
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 1,349 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.
For the three months ended September 30, 1996, abandoned property costs
associated with the abandonment of one saltwater disposal well totaled $22.
9
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Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $56,406 during the nine
months ended September 30, 1996 from the same period in 1995, resulting from an
increase in oil and gas sales, offset by an increase in G&A.
Net Cash Used in Investing Activities
The Registrant's principal 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 $661,305 of which $654,692 was distributed to
the limited partners and $6,613 to the managing general partner. For the same
period ended September 30, 1995, cash was sufficient for distributions to the
partners of $599,346 of which $593,264 was distributed to the limited partners
and $6,082 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-B, 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-B, L.P.
By: Parker & Parsley Petroleum USA, Inc.,
("PPUSA"), Managing General Partner
Dated: November 11, 1996 By: Steven L. Beal
----------------------------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
11
<PAGE>
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<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 267,599
<SECURITIES> 0
<RECEIVABLES> 146,599
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 414,198
<PP&E> 9,698,109
<DEPRECIATION> 7,057,277
<TOTAL-ASSETS> 3,055,030
<CURRENT-LIABILITIES> 41,187
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 3,013,843
<TOTAL-LIABILITY-AND-EQUITY> 3,055,030
<SALES> 1,137,930
<TOTAL-REVENUES> 1,147,134
<CGS> 0
<TOTAL-COSTS> 537,806
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 609,328
<INCOME-TAX> 0
<INCOME-CONTINUING> 609,328
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 609,328
<EPS-PRIMARY> 53.63
<EPS-DILUTED> 0
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