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, 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. 33-38582-02
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.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of March 31, 1997 and
December 31, 1996......................................... 3
Statements of Operations for the three months
ended March 31, 1997 and 1996............................. 4
Statement of Partners' Capital for the three months
ended March 31, 1997...................................... 5
Statements of Cash Flows for the three months
ended March 31, 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............................ 9
27. Financial Data Schedule
Signatures.................................................. 10
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
March 31, December 31,
1997 1996
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $182,838 at March 31
and $236,894 at December 31 $ 182,957 $ 237,013
Accounts receivable - oil and gas sales 225,786 225,511
---------- ----------
Total current assets 408,743 462,524
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,690,568 9,696,907
Accumulated depletion (7,156,640) (7,107,967)
---------- ----------
Net oil and gas properties 2,533,928 2,588,940
---------- ----------
$ 2,942,671 $ 3,051,464
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 28,345 $ 20,648
Partners' capital:
Managing general partner 26,111 27,275
Limited partners (11,249 interests) 2,888,215 3,003,541
---------- ----------
2,914,326 3,030,816
---------- ----------
$ 2,942,671 $ 3,051,464
========== ==========
The financial information included as of March 31, 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-B, L.P.
(A Delaware Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
--------------------------
1997 1996
---------- ----------
Revenues:
Oil and gas $ 362,049 $ 372,237
Interest 2,873 2,637
--------- ---------
364,922 374,874
--------- ---------
Costs and expenses:
Oil and gas production 128,242 111,245
General and administrative 11,386 11,167
Depletion 48,673 54,876
--------- ---------
188,301 177,288
--------- ---------
Net income $ 176,621 $ 197,586
========= =========
Allocation of net income:
Managing general partner $ 1,766 $ 1,976
========= =========
Limited partners $ 174,855 $ 195,610
========= =========
Net income per limited partnership interest $ 15.54 $ 17.39
========= =========
Distributions per limited partnership interest $ 25.80 $ 18.00
========= =========
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, 1997 $ 27,275 $ 3,003,541 $ 3,030,816
Distributions (2,930) (290,181) (293,111)
Net income 1,766 174,855 176,621
--------- ---------- ----------
Balance at March 31, 1997 $ 26,111 $ 2,888,215 $ 2,914,326
========= ========== ==========
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)
Three months ended
March 31,
------------------------
1997 1996
---------- ----------
Cash flows from operating activities:
Net income $ 176,621 $ 197,586
Adjustment to reconcile net income to net cash
provided by operating activities:
Depletion 48,673 54,876
Changes in assets and liabilities:
Increase in accounts receivable (275) (3,606)
Increase (decrease) in accounts payable 7,697 (43,418)
--------- ---------
Net cash provided by operating activities 232,716 205,438
--------- ---------
Cash flows from investing activities:
(Additions to) deletions of oil and gas properties 6,339 (594)
Cash flows from financing activities:
Cash distributions to partners (293,111) (204,527)
--------- ---------
Net increase (decrease) in cash and cash equivalents (54,056) 317
Cash and cash equivalents at beginning of period 237,013 189,076
--------- ---------
Cash and cash equivalents at end of period $ 182,957 $ 189,393
========= =========
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
March 31, 1997
(Unaudited)
Note 1. Organization and nature of operations
Parker & Parsley 91-B, L.P. (the "Partnership") is a limited partnership
organized in 1991 under the laws of the State of Delaware.
The Partnership 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. Basis of presentation
In the opinion of management, the unaudited financial statements as of March 31,
1997 of the Partnership 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 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
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
Revenues:
The Partnership's oil and gas revenues decreased to $362,049 from $372,237 for
the three months ended March 31, 1997 and 1996, respectively, a decrease of
$10,188, or 3%. The decrease in revenues resulted from a 17% decline in barrels
of oil produced and sold and a 19% decline in mcf of gas produced and sold,
offset by higher average prices received per barrel of oil and mcf of gas. For
the three months ended March 31, 1997, 12,871 barrels of oil were produced and
sold compared to 15,562 for the same period in 1996, a decrease of 2,691
barrels. For the three months ended March 31, 1997, 25,746 mcf of gas were
produced and sold compared to 31,684 mcf of gas for the same period in 1996, a
decrease of 5,938 mcf. The declines in production volumes were primarily
attributable to the decline characteristics of the Partnership'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
Partnership's economically recoverable reserves are fully depleted.
7
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The average price received per barrel of oil increased $3.17, or 16%, from
$19.23 for the three months ended March 31, 1996 to $22.40 for the same period
in 1997. The average price received per mcf of gas increased 25% from $2.30 for
the three months ended March 31, 1996 to $2.87 for the same period 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 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 three months ended March
31, 1997.
Costs and Expenses:
Total costs and expenses increased to $188,301 for the three months ended March
31, 1997 as compared to $177,288 for the same period in 1996, an increase of
$11,013, or 6%. This increase was due to increases in production costs and
general and administrative expenses ("G&A"), offset by a decline in depletion.
Production costs were $128,242 for the three months ended March 31, 1997 and
$111,245 for the same period in 1996, resulting in a $16,997 increase, or 15%.
The increase resulted from an increase in well repair and maintenance costs
incurred in an effort to stimulate well production.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A increased
slightly from $11,167 for the three months ended March 31, 1996 to $11,386 for
the same period in 1997.
Depletion was $48,673 for the three months ended March 31, 1997 compared to
$54,876 for the same period in 1996. This represented a decrease in depletion of
$6,203, or 11%. The decrease was attributable to a decline in oil production
of 2,691 barrels for the three months ended March 31, 1997 compared to the same
period in 1996, offset by a downward revision of oil and gas reserves.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $27,278 during the three
months ended March 31, 1997 from the same period ended March 31, 1996. This
increase was due to declines in production cost expenditures and G&A paid,
offset by a decline in oil and gas sales receipts.
Net Cash Provided by (Used in) Investing Activities
The Partnership's investing activities during the three months ended March 31,
1997 and 1996 were related to the addition or disposal of oil and gas equipment
on active properties.
Net Cash Used in Financing Activities
Cash was sufficient for the three months ended March 31, 1997 to cover
distributions to the partners of $293,111 of which $290,181 was distributed to
8
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the limited partners and $2,930 to the managing general partner. For the same
period ended March 31, 1996, cash was sufficient for 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.
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
9
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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: May 8, 1997 By: /s/ Steven L. Beal
-------------------------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
10
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<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 182,957
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<RECEIVABLES> 225,786
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<INCOME-CONTINUING> 176,621
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