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. 33-38582-02
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 10 pages.
-There are no exhibits-
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PARKER & PARSLEY 91-B, 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 $217,871 at June 30
and $189,032 at December 31 $ 217,990 $ 189,076
Accounts receivable - oil and gas sales 154,131 149,729
---------- ----------
Total current assets 372,121 338,805
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,697,351 9,698,832
Accumulated depletion (7,010,931) (6,906,614)
---------- ----------
Net oil and gas properties 2,686,420 2,792,218
---------- ----------
$ 3,058,541 $ 3,131,023
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 33,281 $ 65,203
Partners' capital:
Limited partners (11,249 interests) 2,998,040 3,038,195
Managing general partner 27,220 27,625
---------- ----------
3,025,260 3,065,820
---------- ----------
$ 3,058,541 $ 3,131,023
========== ==========
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-B, 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 $ 376,815 $ 379,550 $ 749,052 $ 737,273
Interest income 3,131 2,817 5,768 5,090
-------- -------- -------- --------
Total revenues 379,946 382,367 754,820 742,363
Costs and expenses:
Production costs 132,132 112,209 243,377 286,729
General and administrative
expenses 11,978 7,939 23,145 18,671
Depletion 49,651 73,745 104,527 145,571
Abandoned property costs 420 - 420 -
Loss on abandonment 1,221 - 1,221 -
-------- -------- -------- --------
Total costs and expenses 195,402 193,893 372,690 450,971
-------- -------- -------- --------
Net income $ 184,544 $ 188,474 $ 382,130 $ 291,392
======== ======== ======== ========
Allocation of net income:
Managing general partner $ 1,845 $ 1,885 $ 3,821 $ 2,914
======== ======== ======== ========
Limited partners $ 182,699 $ 186,589 $ 378,309 $ 288,478
======== ======== ======== ========
Net income per limited
partnership interest $ 16.24 $ 16.58 $ 33.63 $ 25.64
======== ======== ======== ========
Net distribution per limited
partnership interest $ 19.20 $ 18.03 $ 37.20 $ 34.24
======== ======== ======== ========
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-B, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
--------- ---------- ----------
Balance at January 1, 1995 $ 30,859 $3,349,475 $3,380,334
Distributions (3,890) (385,156) (389,046)
Net income 2,914 288,478 291,392
-------- --------- ---------
Balance at June 30, 1995 $ 29,883 $3,252,797 $3,282,680
======== ========= =========
Balance at January 1, 1996 $ 27,625 $3,038,195 $3,065,820
Distributions (4,226) (418,464) (422,690)
Net income 3,821 378,309 382,130
-------- --------- ---------
Balance at June 30, 1996 $ 27,220 $2,998,040 $3,025,260
======== ========= =========
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-B, 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 $ 382,130 $ 291,392
Adjustment to reconcile net income to net cash
provided by operating activities:
Depletion 104,527 145,571
Loss on abandonment 1,221 -
Changes in assets and liabilities:
Increase in accounts receivable (4,402) (3,463)
Increase (decrease) in accounts payable (30,702) 34,372
-------- --------
Net cash provided by operating activities 452,774 467,872
Cash flows from investing activities:
Additions to oil and gas properties (1,224) (20,486)
Proceeds from equipment salvage on abandoned property 54 -
- -
-------- --------
Net cash used in investing activities (1,170) (20,486)
Cash flows from financing activities:
Cash distributions to partners (422,690) (389,046)
-------- --------
Net increase in cash and cash equivalents 28,914 58,340
Cash and cash equivalents at beginning of period 189,076 123,155
-------- --------
Cash and cash equivalents at end of period $ 217,990 $ 181,495
======== ========
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-B, L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 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 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 $749,052 from $737,273 for
the six months ended June 30, 1996 and 1995, respectively, an increase of
$11,779. The increase in revenues resulted from higher average prices received
per barrel of oil and mcf of gas, offset by decreases in barrels of oil produced
and sold and in mcf of gas produced and sold. For the six months ended June 30,
1996, 29,426 barrels of oil were produced and sold compared to 33,989 for the
same period in 1995, a decrease of 4,563 barrels, or 13%. For the six months
ended June 30, 1996, 60,796 mcf of gas were produced and sold compared to 64,429
for the same period in 1995, a decrease of 3,633 mcf, or 6%. The decreases in
production volumes were primarily due to the decline characteristics of the
6
<PAGE>
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 $2.39, or 13%, from
$17.94 for the six months ended June 30, 1995 to $20.33 for the same period in
1996. The average price received per mcf of gas increased 25% from $1.98 during
the six months ended June 30, 1995 to $2.48 for the same period in 1996.
Costs and Expenses:
Total costs and expenses decreased to $372,690 for the six months ended June 30,
1996 as compared to $450,971 for the same period in 1995, a decrease of $78,281,
or 17%. 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 $243,377 for the six months ended June 30, 1996 and
$286,729 for the same period in 1995 resulting in a $43,352 decrease, or 15%.
This decrease was due to a reduction in well repair and maintenance costs.
G&A's components are independent accounting and engineering fees and managing
general partner personnel costs. During this period, G&A increased, in
aggregate, $4,474, or 24%, from $18,671 for the six months ended June 30, 1995
to $23,145 for the same period in 1996.
Depletion was $104,527 for the six months ended June 30, 1996 compared to
$145,571 for the same period in 1995. This represented a decrease in depletion
of $41,044, or 28%, 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 calculated on a property-by-property basis utilizing the unit-of-production
method based upon the dominant mineral produced, generally oil. Oil production
decreased 4,563 barrels for the six months ended June 30, 1996 from the same
period in 1995, while oil reserves of barrels were revised upward by 181,794
barrels, or 26%.
A loss on abandonment of $1,221 was recognized during the six months ended June
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 $420. There was no abandonment activity during
the six months ended June 30, 1995.
7
<PAGE>
Three months ended June 30, 1996 compared with three months ended
June 30, 1995
Revenues:
The Registrant's oil and gas revenues decreased to $376,815 from $379,550 for
the three months ended June 30, 1996 and 1995, respectively, a decrease of
$2,735. The decrease in revenues resulted from declines in barrels of oil and
mcf of gas produced and sold, offset by increases in the average prices received
per barrel of oil and mcf of gas. For the three months ended June 30, 1996,
13,864 barrels of oil were sold compared to 17,263 for the same period in 1995,
a decrease of 3,399 barrels, or 20%. For the three months ended June 30, 1996,
29,116 mcf of gas were sold compared to 33,517 for the same period in 1995, a
decrease of 4,401 mcf, or 13%. 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 $3.25, or 18%, from
$18.32 for the three months ended June 30, 1995 to $21.57 for the same period in
1996. The average price received per mcf of gas increased 41% from $1.89 during
the three months ended June 30, 1995 to $2.67 in 1996.
Costs and Expenses:
Total costs and expenses increased to $195,402 for the three months ended June
30, 1996 as compared to $193,893 for the same period in 1995, an increase of
$1,509. This increase was due to increases in production costs, G&A, abandoned
property costs and loss on abandonment, offset by a decrease in depletion.
Production costs were $132,132 for the three months ended June 30, 1996 and
$112,209 for the same period in 1995 resulting in a $19,923 increase, or 18%.
This increase was primarily due to additional well repair and maintenance costs
incurred in an effort to stimulate well production.
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, 51% from $7,939 for the three months ended
June 30, 1995 to $11,978 for the same period in 1996.
Depletion was $49,651 for the three months ended June 30, 1996 compared to
$73,745 for the same period in 1995. This represented a decrease in depletion of
$24,094, or 33%, primarily attributable to the adoption of the provisions of FAS
121 effective the fourth quarter of 1995, as discussed previously. Oil
production decreased 3,399 barrels for the three months ended June 30, 1996 from
the same period in 1995.
A loss on abandonment of $1,221 was recognized during the three months ended
June 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 $420. There was no abandonment activity
during the three months ended June 30, 1995.
8
<PAGE>
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities decreased during the six months ended
June 30, 1996 $15,098 from the same period ended June 30, 1995. This decrease
was primarily due to an increase in production costs paid, offset by an increase
in oil and gas sales.
Net Cash Used in Investing Activities
The Registrant's investing activities for the six months ended June 30, 1996 and
1995 included expenditures related to equipment replacement on several oil and
gas properties.
Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1996 to cover
distributions to the partners of $422,690 of which $418,464 was distributed to
the limited partners and $4,226 to the managing general partner. For the same
period ended June 30, 1995, cash was sufficient for distributions to the
partners of $389,046 of which $385,156 was distributed to the limited partners
and $3,890 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 d8ifferent 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 - none
(b) Reports on Form 8-K - none
9
<PAGE>
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 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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<ARTICLE> 5
<CIK> 0000871367
<NAME> 91B.TXT
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 217,990
<SECURITIES> 0
<RECEIVABLES> 154,131
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 372,121
<PP&E> 9,697,351
<DEPRECIATION> 7,010,931
<TOTAL-ASSETS> 3,058,541
<CURRENT-LIABILITIES> 33,281
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 3,025,260
<TOTAL-LIABILITY-AND-EQUITY> 3,058,541
<SALES> 749,052
<TOTAL-REVENUES> 754,820
<CGS> 0
<TOTAL-COSTS> 372,690
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 382,130
<INCOME-TAX> 0
<INCOME-CONTINUING> 382,130
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 382,130
<EPS-PRIMARY> 33.63
<EPS-DILUTED> 0
</TABLE>
