UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2000
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)
1400 Williams Square West, 5205 N. O'Connor Blvd., Irving, Texas 75039
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(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code : (972) 444-9001
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 / /
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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, 2000 and
December 31, 1999..................................... 3
Statements of Operations for the three and nine
months ended September 30, 2000 and 1999............... 4
Statement of Partners' Capital for the nine months
ended September 30, 2000............................... 5
Statements of Cash Flows for the nine months ended
September 30, 2000 and 1999............................ 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
27.1 Financial Data Schedule
Signatures............................................... 11
2
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PARKER & PARSLEY 91-B, L.P.
(A Delaware Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
<TABLE>
BALANCE SHEETS
<CAPTION>
September 30, December 31,
2000 1999
------------ ------------
ASSETS (Unaudited)
------
<S> <C> <C>
Current assets:
Cash $ 252,127 $ 213,165
Accounts receivable - oil and gas sales 283,005 197,204
----------- -----------
Total current assets 535,132 410,369
----------- -----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 9,756,912 9,748,898
Accumulated depletion (8,375,734) (8,315,464)
----------- -----------
Net oil and gas properties 1,381,178 1,433,434
----------- -----------
$ 1,916,310 $ 1,843,803
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 58,619 $ 37,188
Partners' capital:
Managing general partner 15,545 15,034
Limited partners (11,249 interests) 1,842,146 1,791,581
----------- -----------
1,857,691 1,806,615
----------- -----------
$ 1,916,310 $ 1,843,803
=========== ===========
</TABLE>
The financial information included as of September 30, 2000 has been prepared by
the managing general partner 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)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
---------------------- -----------------------
2000 1999 2000 1999
--------- --------- ---------- ---------
<S> <C> <C> <C> <C>
Revenues:
Oil and gas $ 560,600 $ 322,197 $1,514,941 $ 755,192
Interest 5,907 2,759 13,377 6,618
Gain on disposition of assets - - 2,273 -
-------- -------- --------- --------
566,507 324,956 1,530,591 761,810
-------- -------- --------- --------
Costs and expenses:
Oil and gas production 144,855 109,839 424,874 330,329
General and administrative 17,415 24,341 54,878 51,335
Depletion 18,260 24,737 60,270 121,065
-------- -------- --------- --------
180,530 158,917 540,022 502,729
-------- -------- --------- --------
Net income $ 385,977 $ 166,039 $ 990,569 $ 259,081
======== ======== ========= ========
Allocation of net income:
Managing general partner $ 3,860 $ 1,661 $ 9,906 $ 2,591
======== ======== ========= ========
Limited partners $ 382,117 $ 164,378 $ 980,663 $ 256,490
======== ======== ========= ========
Net income per limited partnership
interest $ 33.97 $ 14.61 $ 87.18 $ 22.80
======== ======== ========= ========
</TABLE>
The financial information included herein has been prepared by
the managing general partner 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)
<TABLE>
<CAPTION>
Managing
general Limited
partner partners Total
--------- ---------- ----------
<S> <C> <C> <C>
Balance at January 1, 2000 $ 15,034 $1,791,581 $1,806,615
Distributions (9,395) (930,098) (939,493)
Net income 9,906 980,663 990,569
-------- --------- ---------
Balance at September 30, 2000 $ 15,545 $1,842,146 $1,857,691
======== ========= =========
</TABLE>
The financial information included herein has been prepared by
the managing general partner 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)
<TABLE>
<CAPTION>
Nine months ended
September 30,
------------------------
2000 1999
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 990,569 $ 259,081
Adjustments to reconcile net income to
net cash provided by operating activities:
Depletion 60,270 121,065
Gain on disposition of assets (2,273) -
Changes in assets and liabilities:
Accounts receivable (85,801) (72,028)
Accounts payable 21,431 32,682
--------- ---------
Net cash provided by operating activities 984,196 340,800
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (8,113) (18,397)
Proceeds from asset dispositions 2,372 -
--------- ---------
Net cash used in investing activities (5,741) (18,397)
--------- ---------
Cash flows used in financing activities:
Cash distributions to partners (939,493) (278,891)
--------- ---------
Net increase in cash 38,962 43,512
Cash at beginning of period 213,165 165,231
--------- ---------
Cash at end of period $ 252,127 $ 208,743
========= =========
</TABLE>
The financial information included herein has been prepared by
the managing general partner 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
September 30, 2000
(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 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 of the
Partnership as of September 30, 2000 and for the three and nine months ended
September 30, 2000 and 1999 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 reclassifications may
have been made to the September 30, 1999 financial statements to conform to the
September 30, 2000 financial statement presentations.
Certain information and footnote disclosures 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, 1999, as filed with the Securities and Exchange Commission, a copy
of which is available upon request by writing to Rich Dealy, Vice President and
Chief Accounting Officer, 5205 North O'Connor Boulevard, 1400 Williams Square
West, Irving, Texas 75039-3746.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (1)
Results of Operations
Nine months ended September 30, 2000 compared with nine months ended September
30, 1999
Revenues:
The Partnership's oil and gas revenues increased 101% to $1,514,941 for the nine
months ended September 30, 2000 as compared to $755,192 for the same period in
1999. The increase in revenues resulted from higher average prices received and
an increase in production. For the nine months ended September 30, 2000, 36,648
7
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barrels of oil, 16,876 barrels of natural gas liquids ("NGLs") and 66,057 mcf of
gas were sold, or 64,534 barrel of oil equivalents ("BOEs"). For the nine months
ended September 30, 1999, 34,451 barrels of oil, 14,022 barrels of NGLs and
54,447 mcf of gas were sold, or 57,548 BOEs.
The average price received per barrel of oil increased $13.63, or 86%, from
$15.92 for the nine months ended September 30, 1999 to $29.55 for the same
period in 2000. The average price received per barrel of NGLs increased $6.83,
or 77%, from $8.85 during the nine months ended September 30, 1999 to $15.68 for
the same period in 2000. The average price received per mcf of gas increased 67%
from $1.52 during the nine months ended September 30, 1999 to $2.54 for the same
period in 2000. 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 Partnership 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, 2000.
Gain on disposition of assets of $2,273 was recognized during the nine months
ended September 30, 2000 from equipment credits received on one well.
Costs and Expenses:
Total costs and expenses increased to $540,022 for the nine months ended
September 30, 2000 as compared to $502,729 for the same period in 1999, an
increase of $37,293, or 7%. This increase was due to increases in production
costs and general and administrative expenses ("G&A"), offset by a decline in
production.
Production costs were $424,874 for the nine months ended September 30, 2000 and
$330,329 for the same period in 1999, resulting in a $94,545 increase, or 29%.
The increase was primarily due to higher production taxes of $49,276 associated
with higher oil and gas prices and additional well maintenance costs of $27,629
and $10,736 in workover expenses incurred 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, in aggregate, 7% from $51,335 for the nine months ended September 30,
1999 to $54,878 for the same period in 2000 primarily due to a higher allocation
of the managing general partner's G&A being allocated (limited to 3% of oil and
gas revenues) as a result of increased oil and gas revenues.
Depletion was $60,270 for the nine months ended September 30, 2000 compared to
$121,065 for the same period in 1999, representing a decrease of $60,795, or
50%. This decrease was the result of an increase in proved reserves due to
higher commodity prices as compared to the same period in 1999, offset by an
increase in oil production of 2,197 barrels for the nine months ended September
30, 2000 compared to the same period in 1999.
8
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Three months ended September 30, 2000 compared with three months ended September
30, 1999
Revenues:
The Partnership's oil and gas revenues increased 74% to $560,600 for the three
months ended September 30, 2000 as compared to $322,197 for the same period in
1999. The increase in revenues resulted from higher average prices received and
an increase in production. For the three months ended September 30, 2000, 12,181
barrels of oil, 5,860 barrels of NGLs and 23,229 mcf of gas were sold, or 21,913
BOEs. For the three months ended September 30, 1999, 11,599 barrels of oil,
5,021 barrels of NGLs and 18,535 mcf of gas were sold, or 19,709 BOEs.
The average price received per barrel of oil increased $11.39, or 57%, from
$20.10 for the three months ended September 30, 1999 to $31.49 for the same
period in 2000. The average price received per barrel of NGLs increased $6.15,
or 55%, from $11.10 during the three months ended September 30, 1999 to $17.25
for the same period in 2000. The average price received per mcf of gas increased
82% from $1.80 during the three months ended September 30, 1999 to $3.27 for the
same period in 2000.
Costs and Expenses:
Total costs and expenses increased to $180,530 for the three months ended
September 30, 2000 as compared to $158,917 for the same period in 1999, an
increase of $21,613, or 14%. This increase was due to an increase in production
costs, offset by decreases in G&A and depletion.
Production costs were $144,855 for the three months ended September 30, 2000 and
$109,839 for the same period in 1999, resulting in a $35,016 increase, or 32%.
This increase was primarily due to higher production taxes of $16,463 associated
with higher oil and gas prices and additional well maintenance costs of $7,778
incurred to stimulate well production.
During this period, G&A decreased, in aggregate, 28% from $24,341 for the three
months ended September 30, 1999 to $17,415 for the same period in 2000.
Depletion was $18,260 for the three months ended September 30, 2000 compared to
$24,737 for the same period in 1999, representing a decrease of $6,477, or 26%.
This decrease was attributable to an increase in proved reserves as a result of
higher commodity prices as compared to the same period in 1999, offset by an
increase in oil production of 582 barrels for the three months ended September
30, 2000 compared to the same period in 1999.
9
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Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $643,396 during the nine
months ended September 30, 2000 from the same period in 1999. The increase was
due to an increase in oil and gas sales receipts of $752,735, offset by
increases in production costs paid of $87,502 and G&A expenses paid of $21,837.
Net Cash Used in Investing Activities
The Partnership's principal investing activities during the nine months ended
September 30, 2000 and 1999 included expenditures related to upgrades of
equipment on various oil and gas properties.
Proceeds from asset dispositions of $2,372 recognized during the nine months
ended September 30, 2000 were related to equipment credits on two wells.
Net Cash Used in Financing Activities
For the nine months ended September 30, 2000, cash distributions to the partners
were $939,493 of which $9,395 was distributed to the managing general partner
and $930,098 to the limited partners. For the same period ended September 30,
1999, cash distributions to the partners were $278,891, of which $2,789 was
distributed to the managing general partner and $276,102 to the limited
partners.
---------------
(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
27.1 Financial Data Schedule
(b) Reports on Form 8-K - 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: Pioneer Natural Resources USA, Inc.,
Managing General Partner
Dated: November 9, 2000 By: /s/ Rich Dealy
---------------------------------
Rich Dealy, Vice President and
Chief Accounting Officer
11
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