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. 33-38582-02
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.
Exhibit index on page 10.
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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 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-B, L.P.
(A Delaware Limited Partnership)
Part 1. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
June 30, December 31,
1997 1996
----------- -----------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $232,854 at June 30
and $236,894 at December 31 $ 232,973 $ 237,013
Accounts receivable - oil and gas sales 128,601 225,511
---------- ----------
Total current assets 361,574 462,524
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,691,009 9,696,907
Accumulated depletion (7,202,401) (7,107,967)
---------- ----------
Net oil and gas properties 2,488,608 2,588,940
---------- ----------
$ 2,850,182 $ 3,051,464
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 37,892 $ 20,648
Partners' capital:
Managing general partner 25,090 27,275
Limited partners (11,249 interests) 2,787,200 3,003,541
---------- ----------
2,812,290 3,030,816
---------- ----------
$ 2,850,182 $ 3,051,464
========== ==========
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-B, 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 $ 304,753 $ 376,815 $ 666,802 $ 749,052
Interest 3,567 3,131 6,440 5,768
-------- -------- -------- --------
308,320 379,946 673,242 754,820
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 132,923 132,132 261,165 243,377
General and administrative 9,143 11,978 20,529 23,145
Depletion 45,761 49,651 94,434 104,527
Abandoned property - 420 - 420
Loss on abandonment - 1,221 - 1,221
-------- -------- -------- --------
187,827 195,402 376,128 372,690
-------- -------- -------- --------
Net income $ 120,493 $ 184,544 $ 297,114 $ 382,130
======== ======== ======== ========
Allocation of net income:
Managing general partner $ 1,205 $ 1,845 $ 2,971 $ 3,821
======== ======== ======== ========
Limited partners $ 119,288 $ 182,699 $ 294,143 $ 378,309
======== ======== ======== ========
Net income per limited
partnership interest $ 10.61 $ 16.24 $ 26.15 $ 33.63
======== ======== ======== ========
Net distribution per limited
partnership interest $ 19.58 $ 19.20 $ 45.38 $ 37.20
======== ======== ======== ========
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 (5,156) (510,484) (515,640)
Net income 2,971 294,143 297,114
-------- --------- ---------
Balance at June 30, 1997 $ 25,090 $2,787,200 $2,812,290
======== ========= =========
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)
STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
June 30,
-------------------------
1997 1996
---------- -----------
Cash flows from operating activities:
Net income $ 297,114 $ 382,130
Adjustment to reconcile net income to net cash
provided by operating activities:
Depletion 94,434 104,527
Loss on abandonment - 1,221
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 96,910 (4,402)
Increase (decrease) in accounts payable 17,244 (30,702)
--------- ---------
Net cash provided by operating activities 505,702 452,774
--------- ---------
Cash flows from investing activities:
(Additions to) disposal of oil and gas properties 5,898 (1,224)
Proceeds from equipment salvage on abandoned
property - 54
--------- ---------
Net cash provided by (used in) investing
activities 5,898 (1,170)
--------- ---------
Cash flows from financing activities:
Cash distributions to partners (515,640) (422,690)
--------- ---------
Net increase (decrease) in cash and cash equivalents (4,040) 28,914
Cash and cash equivalents at beginning of period 237,013 189,076
--------- ---------
Cash and cash equivalents at end of period $ 232,973 $ 217,990
========= =========
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-B, 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-B, 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 decreased 11% to $666,802 from $749,052
for the six months ended June 30, 1997 as compared to the six months ended June
30, 1996. The decrease in revenues resulted from decreases in barrels of oil and
mcf of gas produced and sold, offset by higher average prices received per
barrel of oil and mcf of gas. For the six months ended June 30, 1997, 25,308
barrels of oil were produced and sold compared to 29,426 for the same period in
1996, a decrease of 4,118 barrels, or 14%. For the six months ended June 30,
1997, 52,607 mcf of gas were produced and sold compared to 60,796 for the same
period in 1996, a decrease of 8,189 mcf, or 13%. The decreases in production
volumes were primarily due 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
<PAGE>
The average price received per barrel of oil increased slightly from $20.33 for
the six months ended June 30, 1996 to $20.75 for the same period in 1997. The
average price received per mcf of gas increased 8% from $2.48 during the six
months ended June 30, 1996 to $2.69 for the same period in 1997.
Costs and Expenses:
Total costs and expenses increased to $376,128 for the six months ended June 30,
1997 as compared to $372,690 for the same period in 1996, an increase of $3,438.
This increase was due to an increase in production costs, offset by declines in
depletion, general and administrative expenses ("G&A"), loss on abandonment and
abandoned property costs.
Production costs were $261,165 for the six months ended June 30, 1997 and
$243,377 for the same period in 1996 resulting in a $17,788 increase, or 7%.
This increase was 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 and managing
general partner personnel costs. During this period, G&A decreased, in
aggregate, 11%, from $23,145 for the six months ended June 30, 1996 to $20,529
for the same period in 1997.
Depletion was $94,434 for the six months ended June 30, 1997 compared to
$104,527 for the same period in 1996. This represented a decrease in depletion
of $10,093, or 10%, primarily attributable to a decline in oil production of
4,118 barrels for the six months ended June 30, 1997, as compared to the same
period in 1996.
A loss on abandonment of $1,221 was recognized during the six months ended June
30, 1996. This loss resulted from the abandonment of a saltwater disposal well.
Abandoned property costs associated with the abandonment of this well totaled
$420.
Three months ended June 30, 1997 compared with three months ended
June 30, 1996
Revenues:
The Partnership's oil and gas revenues decreased 19% to $304,753 from $376,815
for the three months ended June 30, 1997 as compared to the three months ended
June 30, 1996. The decrease in revenues resulted from declines in barrels of oil
and mcf of gas produced and sold and declines in the average prices received per
barrel of oil and mcf of gas. For the three months ended June 30, 1997, 12,438
barrels of oil were sold compared to 13,864 for the same period in 1996, a
decrease of 1,426 barrels, or 10%. For the three months ended June 30, 1997,
26,861 mcf of gas were sold compared to 29,116 for the same period in 1996, a
decrease of 2,255 mcf, or 8%. The decreases in production volumes were primarily
due to the decline characteristics of the Partnership's oil and gas properties.
8
<PAGE>
The average price received per barrel of oil decreased $2.53, or 12%, from
$21.57 for the three months ended June 30, 1996 to $19.04 for the same period in
1997. The average price received per mcf of gas decreased 5% from $2.67 during
the three months ended June 30, 1996 to $2.53 in 1997.
Costs and Expenses:
Total costs and expenses decreased to $187,827 for the three months ended June
30, 1997 as compared to $195,402 for the same period in 1996, a decrease of
$7,575, or 4%. This decrease was due to declines in depletion, G&A, loss on
abandonment, and abandoned property costs, offset by an increase in production
costs.
Production costs were $132,923 for the three months ended June 30, 1997 and
$132,132 for the same period in 1996 resulting in a $791 increase. This increase
was primarily due to additional well repair and maintenance costs incurred in an
effort to stimulate well production, offset by a decline in production taxes.
G&A's components are independent accounting and engineering fees and managing
general partner personnel and operating costs. During this period, G&A
decreased, in aggregate, 24% from $11,978 for the three months ended June 30,
1996 to $9,143 for the same period in 1997.
Depletion was $45,761 for the three months ended June 30, 1997 compared to
$49,651 for the same period in 1996. This represented a decrease in depletion of
$3,890, or 8%, attributable to a decline in oil production of 1,426 barrels for
the three months ended June 30, 1997 from the same period in 1996.
A loss on abandonment of $1,221 was recognized during the three months ended
June 30, 1996. This loss resulted from the abandonment of a saltwater disposal
well. Abandoned property costs associated with the abandonment of this well
totaled $420.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $52,928 during the six
months ended June 30, 1997 from the same period ended June 30, 1996. This
increase was due to a decline in production costs paid and an increase in oil
and gas sales receipts, offset by higher G&A expenses paid.
Net Cash Provided by (Used in) Investing Activities
The Partnership's investing activities for the six months ended June 30, 1997
and 1996 were related to the addition or disposal of oil and gas equipment on
active properties.
9
<PAGE>
Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1997 to cover
distributions to the partners of $515,640 of which $5,156 was distributed to the
managing general partner and $510,484 to the limited partners. For the same
period ended June 30, 1996, cash was sufficient for distributions to the
partners of $422,690 of which $4,226 was distributed to the managing general
partner and $418,464 to the limited partners.
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
<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: August 8, 1997 By: /s/ Rich Dealy
--------------------------------
Rich Dealy, Controller of PPUSA
11
<PAGE>
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<ARTICLE> 5
<CIK> 0000871367
<NAME> 91B.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 232,973
<SECURITIES> 0
<RECEIVABLES> 128,601
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 361,574
<PP&E> 9,691,009
<DEPRECIATION> 7,202,401
<TOTAL-ASSETS> 2,850,182
<CURRENT-LIABILITIES> 37,892
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,812,290
<TOTAL-LIABILITY-AND-EQUITY> 2,850,182
<SALES> 666,802
<TOTAL-REVENUES> 673,242
<CGS> 0
<TOTAL-COSTS> 376,128
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 297,114
<INCOME-TAX> 0
<INCOME-CONTINUING> 297,114
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 297,114
<EPS-PRIMARY> 26.15
<EPS-DILUTED> 0
</TABLE>
