United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 0-19626
ENEX 90-91 INCOME AND RETIREMENT FUND - SERIES 3, L.P.
(Exact name of small business issuer as specified in its charter)
New Jersey 76-0299900
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 200, Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices)
Issuer's telephone number:
(713) 358-8401
Check whether the issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 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
Transitional Small Business Disclosure Format (Check one):
Yes No x
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
ENEX 90-91 INCOME AND RETIREMENT FUND - SERIES 3, L.P.
BALANCE SHEET
- -----------------------------------------------------------------------
JUNE 30,
ASSETS 1996
------------------
(Unaudited)
CURRENT ASSETS:
<S> <C>
Cash .......................................... $ 54,106
Accounts receivable - oil & gas sales ......... 41,941
--------
Total current assets ............................ 96,047
--------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests ............................ 962,796
Less accumulated depletion ................... 454,877
--------
Property, net ................................... 507,919
--------
ORGANIZATION COSTS
(Net of accumulated amortization of $41,331) .... 2,171
--------
TOTAL ........................................... $606,137
========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable ............................. $ 52
Payable to general partner ................... 1,969
--------
Total current liabilities ....................... 2,021
--------
PARTNERS' CAPITAL:
Limited partners ............................. 593,785
General partner .............................. 10,331
--------
Total partners' capital ......................... 604,116
--------
TOTAL ........................................... $606,137
========
</TABLE>
See accompanying notes to financial statements.
- ---------------------------------------------------------------------------
I-1
<PAGE>
<TABLE>
<CAPTION>
ENEX 90-91 INCOME AND RETIREMENT FUND - SERIES 3, L.P.
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------
(UNAUDITED) QUARTER ENDED SIX MONTHS ENDED
-------------------- -------------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1996 1995 1996 1995
--------- -------- -------- --------
REVENUES:
<S> <C> <C> <C> <C>
Oil and gas sales ........ $ 64,627 $ 39,406 $133,204 $ 79,093
-------- -------- -------- --------
EXPENSES:
Depletion and amortization 20,292 21,818 42,111 43,135
General and administrative 9,075 8,330 20,334 13,294
-------- -------- -------- --------
Total expenses ............. 29,367 30,148 62,445 56,429
-------- -------- -------- --------
NET INCOME ................. $ 35,260 $ 9,258 $ 70,759 $ 22,664
======== ======== ======== ========
</TABLE>
See accompanying notes to financial statements.
- ---------------------------------------------------------------------------
I-2
<PAGE>
<TABLE>
<CAPTION>
ENEX 90-91 INCOME AND RETIREMENT FUND - SERIES 3, L.P.
STATEMENTS OF CASH FLOWS
- ---------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED
----------------------
JUNE 30, JUNE 30,
1996 1995
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income .................................... $ 70,759 $ 22,664
--------- ---------
Adjustments to reconcile net income to net cash provided by operating
activities:
Depletion and amortization .................. 42,111 43,135
(Increase) in:
Accounts receivable - oil & gas sales ....... (5,310) (8,770)
Increase (decrease) in:
Accounts payable ........................... (1,300) (2,859)
Payable to general partner ................. (5,514) 1,412
--------- ---------
Total adjustments ............................. 29,987 32,918
--------- ---------
Net cash provided by operating activities ..... 100,746 55,582
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ........................ (68,625) (52,375)
--------- ---------
NET INCREASE IN CASH .......................... 32,121 3,207
CASH AT BEGINNING OF YEAR ..................... 21,985 7,599
--------- ---------
CASH AT END OF PERIOD ......................... $ 54,106 $ 10,806
========= =========
</TABLE>
See accompanying notes to financial statements.
- -------------------------------------------------------------------------
I-3
<PAGE>
ENEX 90-91 INCOME AND RETIREMENT FUND - SERIES 3, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
1. The interim financial information included herein is unaudited;
however, such information reflects all adjustments (consisting solely
of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of results for the
interim periods. The Company has presented its cash flow using the
indirect method and considers all highly liquid investments with a
maturity of three months or less to be cash equivalents.
2. A cash distribution was made to the limited partners of the Company in
the amount of $37,304, representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on April 30, 1996.
3. On August 9, 1996, the Company's General Partner submitted preliminary
proxy material to the Securities Exchange Commission with respect to a
proposed consolidation of the Company with 33 other managed limited
partnerships. The terms and conditions of the proposed consolidation
are set forth in such preliminary proxy material.
I-4
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation.
Second Quarter 1995 Compared to Second Quarter 1996
Oil and gas sales for the second quarter increased to $64,627 in 1996 from
$39,406 in 1995. This represents an increase of $25,221 (64%). A 68% increase in
the average net oil sales price increased sales by $26,199. This increase was
partially offset by a 2% decrease in oil production. The increase in average net
sales price corresponds with higher prices in the overall market for the sale of
oil. The decrease in production was due to natural production declines.
Depletion expense decreased to $18,117 in the second quarter of 1996 from
$19,642 in the second quarter of 1995. This represents a decrease of $1,525
(8%). The decrease in production, noted above, caused depletion expense to
decrease by $487, while a 5% decrease in the depletion rate reduced depletion
expense by an additional $1,038. The decrease in the depletion rate was
primarily a result of relatively higher production from properties with a lower
depletion rate, partially offset by a downward revision of the oil reserves
during December 1995.
General and administrative expenses increased to $9,075 in 1996 from $8,330 in
1995. This increase of $745 is primarily due to more staff time being required
to manage the Company's operations.
First Six Months in 1995 Compared to the First Six Months in 1996
- ------------------------------------------------------------------
Oil and gas sales for the first six months increased to $133,204 in 1996 from
$79,093 in 1995. This represents an increase of $40,486 (105%). A 66% increase
in the average net sales price increased sales by $53,017. A 1% increase in oil
production increased sales by an additional $1,094. The increase in average net
sales price corresponds with higher prices in the overall market for the sale of
oil. The increase in production was a result of higher production from the
Charlotte acquisition, which was partially shut-in for workovers in the first
quarter of 1995, partially offset by natural production declines.
Depletion expense decreased to $37,761 in the first six months of 1996 from
$38,784 in the first six months of 1995. This represents a decrease of $1,023
(3%). A 4% decrease in the depletion rate reduced depletion expense by $1,559.
This decrease was partially offset by the changes in production, noted above.
The decrease in the depletion rate was primarily a result of relatively higher
production from properties with a lower depletion rate, partially offset by a
downward revision of the oil reserves during December 1995.
General and administrative expenses increased to $20,334 in 1996 from $13,294 in
1995. This increase of $7,040 is primarily due to less staff time being required
to manage the Company's operations.
I-5
<PAGE>
CAPITAL RESOURCES AND LIQUIDITY
The Company's cash flow from operations is a direct result of the amount of net
proceeds realized from the sale of oil and gas production. Accordingly, the
changes in cash flow from 1995 to 1996 are primarily due to the changes in oil
and gas sales described above. It is the general partner's intention to
distribute substantially all of the Company's available cash flow to the
Company's partners.
The Company will continue to recover its reserves and distribute to the limited
partners the net proceeds realized from the sale of oil and gas production.
Distribution amounts are subject to change if net revenues are greater or less
than expected. Nonetheless, the general partner believes the Company will
continue to have sufficient cash flow to fund operations and to maintain a
regular pattern of distributions.
On August 9, 1996, the Company's General Partner submitted preliminary proxy
material to the Securities Exchange Commission with respect to a proposed
consolidation of the Company with 33 other managed limited partnerships. The
terms and conditions of the proposed consolidation are set forth in such
preliminary proxy material.
I-6
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5. Other Information.
Not Applicable
Item 6. Exhibits and Reports on Form 8-K.
(a) There are no exhibits to this report.
(b) The Company filed no reports on Form 8-K during the quarter
ended June 30, 1996.
II-1
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
ENEX 90-91 INCOME AND RETIREMENT
FUND - SERIES 3, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By: /s/ R. E. Densford
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
August 13, 1996 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000880580
<NAME> Enex 90-91 Income & Retirement Fund - Sr 3, L.P.
<S> <C>
<PERIOD-TYPE> 6-mos
<FISCAL-YEAR-END> dec-31-1996
<PERIOD-START> jan-01-1996
<PERIOD-END> jun-30-1996
<CASH> 54106
<SECURITIES> 0
<RECEIVABLES> 41941
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 96047
<PP&E> 962796
<DEPRECIATION> 454877
<TOTAL-ASSETS> 507919
<CURRENT-LIABILITIES> 2021
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 604116
<TOTAL-LIABILITY-AND-EQUITY> 606137
<SALES> 133204
<TOTAL-REVENUES> 133204
<CGS> 0
<TOTAL-COSTS> 42111
<OTHER-EXPENSES> 20334
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 70759
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
