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. 33-38582-02
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
March 31, December 31,
1996 1995
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $189,349 at March 31
and $189,032 at December 31 $ 189,393 $ 189,076
Accounts receivable - oil and gas sales 153,335 149,729
---------- ----------
Total current assets 342,728 338,805
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,698,205 9,698,832
Accumulated depletion (6,961,490) (6,906,614)
---------- ----------
Net oil and gas properties 2,736,715 2,792,218
---------- ----------
$ 3,079,443 $ 3,131,023
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 20,564 $ 65,203
Partners' capital:
Limited partners (11,249 interests) 3,031,323 3,038,195
Managing general partner 27,556 27,625
---------- ----------
3,058,879 3,065,820
---------- ----------
$ 3,079,443 $ 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
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PARKER & PARSLEY 91-B, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
1996 1995
---------- ----------
Revenues:
Oil and gas sales $ 372,237 $ 357,723
Interest income 2,637 2,273
--------- ---------
Total revenues 374,874 359,996
Costs and expenses:
Production costs 111,245 174,520
General and administrative expenses 11,167 10,732
Depletion 54,876 71,826
--------- ---------
Total costs and expenses 177,288 257,078
--------- ---------
Net income $ 197,586 $ 102,918
========= =========
Allocation of net income:
Managing general partner $ 1,976 $ 1,029
========= =========
Limited partners $ 195,610 $ 101,889
========= =========
Net income per limited partnership interest $ 17.39 $ 9.06
========= =========
Distributions per limited partnership interest $ 18.00 $ 16.21
========= =========
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
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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 (1,841) (182,357) (184,198)
Net income 1,029 101,889 102,918
---------- ---------- ----------
Balance at March 31, 1995 $ 30,047 $ 3,269,007 $ 3,299,054
========== ========== ==========
Balance at January 1, 1996 $ 27,625 $ 3,038,195 $ 3,065,820
Distributions (2,045) (202,482) (204,527)
Net income 1,976 195,610 197,586
---------- ---------- ----------
Balance at March 31, 1996 $ 27,556 $ 3,031,323 $ 3,058,879
========== ========== ==========
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)
Three months ended
March 31,
1996 1995
---------- ----------
Cash flows from operating activities:
Net income $ 197,586 $ 102,918
Adjustment to reconcile net income to net cash
provided by operating activities:
Depletion 54,876 71,826
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (3,606) 1,181
Increase (decrease) in accounts payable (43,418) 30,766
--------- ---------
Net cash provided by operating activities 205,438 206,691
Cash flows from investing activities:
Additions to oil and gas properties (594) (16,643)
Cash flows from financing activities:
Cash distributions to partners (204,527) (184,198)
--------- ---------
Net increase in cash and cash equivalents 317 5,850
Cash and cash equivalents at beginning of period 189,076 123,155
--------- ---------
Cash and cash equivalents at end of period $ 189,393 $ 129,005
========= =========
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)
NOTES TO FINANCIAL STATEMENTS
March 31, 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 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 December 31, 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 continues to serve as
the sole general partner; however, its name has been 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 limited
and general partners contributed $11,249,000 representing 11,249 interests
($1,000 per interest) sold to a total of 682 limited and general partners.
Since its formation, the Registrant has invested $9,698,205 in various prospects
that were drilled and completed in Texas. At March 31, 1996, the Registrant had
29 producing oil and gas wells.
6
<PAGE>
Results of Operations
Revenues:
The Registrant's oil and gas revenues increased to $372,237 from $357,723 for
the three months ended March 31, 1996 and 1995, respectively, an increase of
$14,514, or 4%. The increase in revenues resulted from a 3% increase in mcf of
gas produced and sold, as well as increases in the average prices received per
barrel of oil and mcf of gas, offset by a 7% decline in barrels of oil produced
and sold. For the three months ended March 31, 1996, 15,562 barrels of oil were
produced and sold compared to 16,726 for the same period in 1995, a decrease of
1,164 barrels. For the three months ended March 31, 1996, 31,684 mcf of gas were
produced and sold compared to 30,912 mcf of gas for the same period in 1995, an
increase of 772 mcf due to operational changes on several wells. Oil production
decreased due to the decline characteristics of the Registrant's oil and gas
properties. Management expects a certain amount of decline in production in the
future until the Registrant's economically recoverable reserves are fully
depleted.
The average price received per barrel of oil increased $1.69, or 10%, from
$17.54 for the three months ended March 31, 1995 to $19.23 for the same period
in 1996. The average price received per mcf of gas increased 11% from $2.08 for
the three months ended March 31, 1995 to $2.30 for the same period 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 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 $177,288 for the three months ended March
31, 1996 as compared to $257,078 for the same period in 1995, a decrease of
$79,790, or 31%. This decrease was due to decreases in production costs and
depletion, offset by an increase in general and administrative expenses ("G&A").
Production costs were $111,245 for the three months ended March 31, 1996 and
$174,520 for the same period in 1995, resulting in a $63,275 decrease, or 36%.
The 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 increased, in aggregate, 4% from $10,732 for the three months ended
March 31, 1995 to $11,167 for the same period in 1996. The Partnership agreement
limits G&A to 3% of gross oil and gas revenues.
Depletion was $54,876 for the three months ended March 31, 1996 compared to
$71,826 for the same period in 1995. This represented a decrease in depletion of
$16,950, or 24%, 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 1,164 barrels
for the three months ended March 31, 1996 from the same period in 1995, while
oil reserves of barrels were revised upward by 181,794 barrels, or 26%.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities decreased to $205,438 during the three
months ended March 31, 1996, a $1,253 decrease from the same period ended March
31, 1995. This decrease was due to an increase in expenditures for production
costs, offset by an increase in oil and gas sales receipts. The increase in
production cost expenditures was due to additional well repair and maintenance
costs incurred in an effort to stimulate production. The increase in oil and gas
sales receipts was primarily due to an increase in the average prices received
per barrel of oil and mcf of gas.
Net Cash Used in Investing Activities
The Registrant's principal investing activities during the three months ended
March 31, 1996 were 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 $204,527 of which $202,482 was distributed to
the limited partners and $2,045 to the managing general partner. For the same
period ended March 31, 1995, cash was sufficient for distributions to the
partners of $184,198 of which $182,357 was distributed to the limited partners
and $1,841 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-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: May 13, 1996 By: /s/ Steven L. Beal
--------------------------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
10
<PAGE>
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<NAME> 91B.TXT
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 189,393
<SECURITIES> 0
<RECEIVABLES> 153,335
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 342,728
<PP&E> 9,698,205
<DEPRECIATION> 6,961,490
<TOTAL-ASSETS> 3,079,443
<CURRENT-LIABILITIES> 20,564
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 3,058,879
<TOTAL-LIABILITY-AND-EQUITY> 3,079,443
<SALES> 372,237
<TOTAL-REVENUES> 374,874
<CGS> 0
<TOTAL-COSTS> 177,288
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 197,586
<INCOME-TAX> 0
<INCOME-CONTINUING> 197,586
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 197,586
<EPS-PRIMARY> 17.39
<EPS-DILUTED> 0
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