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 March 31, 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) 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
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX 90-91 INCOME AND RETIREMENT FUND - SERIES 3, L.P.
BALANCE SHEET
- -------------------------------------------------------------------------------
MARCH 31,
ASSETS 1996
---------------------
(Unaudited)
CURRENT ASSETS:
Cash $ 44,157
Accounts receivable - oil & gas sales 46,721
---------------------
Total current assets 90,878
---------------------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests 962,796
Less accumulated depletion 436,760
---------------------
Property, net 526,036
---------------------
ORGANIZATION COSTS
(Net of accumulated amortization of $39,156) 4,346
---------------------
TOTAL $ 621,260
=====================
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 147
Payable to general partner 4,818
---------------------
Total current liabilities 4,965
---------------------
PARTNERS' CAPITAL:
Limited partners 602,893
General partner 13,402
---------------------
Total partners' capital 616,295
---------------------
TOTAL $ 621,260
=====================
See accompanying notes to financial statements.
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I-4
<PAGE>
ENEX 90-91 INCOME AND RETIREMENT FUND - SERIES 3, L.P.
STATEMENTS OF OPERATIONS
- -----------------------------------------------------------------------------
(UNAUDITED) THREE MONTHS ENDED
------------------------------------------
MARCH 31, MARCH 31,
1996 1995
------------------- -------------------
REVENUES:
Oil and gas sales $ 68,577 $ 39,687
------------------- ------------------
EXPENSES:
Depletion and amortization 21,819 21,317
General and administrative 11,259 4,964
------------------- -------------------
Total expenses 33,078 26,281
------------------- -------------------
NET INCOME $ 35,499 $ 13,406
=================== ===================
See accompanying notes to financial statements.
- ------------------------------------------------------------------------------
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<PAGE>
ENEX 90-91 INCOME AND RETIREMENT FUND - SERIES 3, L.P.
STATEMENTS OF CASH FLOWS
- ---------------------------------------------------------------------------
(UNAUDITED)
THREE MONTHS ENDED
------------------------
MARCH 31, MARCH 31,
1996 1995
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 35,499 $ 13,406
------------ ----------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depletion and amortization 21,819 21,317
(Increase) decrease in:
Accounts receivable - oil & gas sales (10,090) 8,879
Increase (decrease) in:
Accounts payable (1,205) (2,859)
Payable to general partner (2,665) 5,746
------------ ----------
Total adjustments 7,859 33,083
------------ ----------
Net cash provided by operating activities 43,358 46,489
------------ ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions (21,186) (28,711)
------------ ----------
NET INCREASE IN CASH 22,172 17,778
CASH AT BEGINNING OF YEAR 21,985 7,599
------------ ----------
CASH AT END OF PERIOD $ 44,157 $ 25,377
============ ==========
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 $19,067, representing net revenues from the sale of oil
and gas produced from properties owned by the Company. This
distribution was made on January 31, 1996.
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<PAGE>
Item 2. Managements's Discussion and Analysis or Plan of Operation.
First Quarter 1996 Compared to First Quarter 1995
Oil sales for the first quarter increased from $39,687 in 1995 to $68,577 in
1996. This represents an increase of $28,890 (73%). A 64% increase in average
net prices increased sales by $26,818. A 5% increase in production increased
sales by an additional $2,072. The increase in average net prices was a result
of lower operating costs incurred on the Charlotte acquisition, in which the
Company has a net profits interest, coupled 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.
Depletion expense increased from $19,142 in the first quarter of 1995 to $19,644
in the first quarter of 1995. This represents a decrease of $502 or 3%. The
increase in production, noted above, increased depletion expense by $1,000. This
increase was partially offset by a 2% decrease in the depletion rate. 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 from $4,964 in the first quarter
of 1995 to $11,259 in the first quarter of 1996. This increase of $6,295 was
primarily due to more staff time being required to manage the Company's
operations in 1996, coupled with a $1,581 increase in direct expenses incurred
by the Company in 1996.
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 after
payment of its debt obligations 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.
I-5
<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 March 31, 1996.
<PAGE>
SIGNATURES
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 hereunto duly authorized.
ENEX 90-91 INCOME AND RETIREMENT
FUND - SERIES 3, L.P.
(Registrant)
By:ENEX RESOURCES CORPORATION
General Partner
By:
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
May 11, 1996 By:
James A. Klein
Controller and Chief
Accounting Officer
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<FISCAL-YEAR-END> dec-31-1996
<PERIOD-START> jan-01-1996
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