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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-KSB/A
AMENDMENT III
(Mark One)
[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1995
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from...............to...............
Commission file number 33-34348-04
ENEX OIL & GAS INCOME PROGRAM V - Series 4, L.P.
(Name of small business issuer in its charter)
New Jersey 76-0303885
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
800 Rockmead Drive
Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (713) 358-8401
Securities registered under Section 12(b) of the Exchange Act: None
Securities registered under Section 12(g) of the Exchange Act:
Limited Partnership Interest
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
Check if there is no disclosure of delinquent filers in response to
Item 405 of Regulation S-B is not contained in this form, and no disclosure will
be contained, to the best of the registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB.[x]
State issuer's revenues for its most recent fiscal year. $897,673
State the aggregate market value of the voting stock held by
non-affiliates computed by reference to the price at which the stock was sold,
or the average bid and asked prices of such stock as of a specified date within
the past 60 days (See definition of affiliate in Rule 12b-2 of the Exchange
Act):
Not Applicable
Documents Incorporated By Reference:
None
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<PAGE>
PART II
Item 5. Market for Common Equity and Related Security Holder Matters
Market Information
There is no established public trading market for the Company's
outstanding limited partnership interests.
Number of Equity Security Holders
Number of Record Holders
Title of Class (as of March 1, 1996)
----------------- ----------------------------------
General Partner's Interests 1
Limited Partnership Interests 365
Dividends
The Company paid cash distributions to partners of $62 and $42 per
$500 investment in 1995 and 1994, respectively. The payment of future
distributions will depend on the Company's earnings, financial condition,
working capital requirements and other factors, although it is anticipated that
regular quarterly distributions will continue through 1996.
II-1
<PAGE>
Item 6. Management's Discussion and Analysis or Plan of Operation
Results of Operations
This discussion should be read in conjunction with the financial
statements of the Company and the notes thereto included in this Form 10-KSB.
Oil and gas sales totalled $897,673 in 1995 as compared with
$960,840 in 1994. This represents a decrease of $63,167 or 7%. Oil revenues
decreased by $53,132 or 6%. A 7% decrease in oil production reduced sales by
$61,799. This decrease was partially offset by a 1% increase in the average oil
sales price. Gas sales decreased by $10,035 or 8%. A 16% decrease in the average
gas sales price reduced sales by $22,437. This decrease was partially offset by
a 10% increase in gas production. The decline in oil production was primarily
the result of natural production declines. The increase in the average oil sales
price was primarily a result of higher prices in the overall market for the sale
of oil, partially offset by lower expenses incurred on the Charlotte acquisition
on which the Company pays a net profits royalty. The increase in gas production
was due to the Company obtaining additional interests in the South Midway
acquisition from farmouts which achieved payout in the fourth quarter of 1994.
The decrease in the average gas sales price corresponds with lower prices in the
overall market for the sale of gas.
Lease operating expenses were $572,672 in 1995 as compared with
$608,556 in 1994. This decrease of $35,884 or 6% was primarily due to the
changes in production, noted above.
Depreciation and depletion was $113,880 in 1995 and $120,976 in
1994. This represents a decrease of $7,096 or 6%. The changes in production,
noted above, reduced depreciation and depletion expense by $3,031. A 3% decrease
in the depletion rate reduced depreciation and depletion expense by an
additional $4,065. The rate decrease was primarily a result of an upward
revision of the oil and gas reserves during 1995.
General and administrative expenses were $56,130 in 1995 as compared
with $48,358 in 1994. The increase of $7,772 or 16% was primarily due to more
staff time being required to manage the Company's operations, partially offset
by a $5,280 decrease in direct costs incurred by the Company.
Capital Resources and Liquidity
The Company's cash flows from operations is a direct result of the
amount of net proceeds from the sale of oil and gas production. Accordingly, the
changes in cash flows are primarily due to the oil and gas sales, described
above and the repayment of a note to the general partner for $89,558 in 1994. It
is the general partners intention to distribute substantially all of the
Company's available net cash flows provided by operating, financing and
investing activities 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 debt obligations. The Company plans to repay the
amount owed to the general partner in 1996. Distributions increased from 1994 to
1995 due to the debt repayment of $89,558 in 1994, partially offset by the lower
revenues in 1995, as noted above. 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 flows to fund
operations and to maintain a regular pattern of distributions.
At December 31, 1995, the Company had no material commitments for
capital expenditures. The Company does not intend to engage in any significant
developmental drilling activity.
II-2
<PAGE>
Item 7. Financial Statements and Supplementary Data
INDEPENDENT AUDITORS' REPORT
The Partners
Enex Oil & Gas Income
Program V - Series 4, L.P.:
We have audited the accompanying balance sheet of Enex Oil & Gas Income Program
V - Series 4, L.P. (a New Jersey limited partnership) as of December 31, 1995,
and the related statements of operations, changes in partners' capital, and cash
flows for each of the two years in the period ended December 31, 1995. These
financial statements are the responsibility of the general partner of Enex Oil &
Gas Income Program V Series 4, L.P. Our responsibility is to express an opinion
on the financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of Enex Oil & Gas Income Program V - Series 4,
L.P. at December 31, 1995 and the results of its operations and its cash flows
for each of the two years in the period ended December 31, 1995 in conformity
with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Houston, Texas
March 18, 1996
II-3
<PAGE>
<TABLE>
<CAPTION>
ENEX OIL & GAS INCOME PROGRAM V - SERIES 4, L.P.
BALANCE SHEET, DECEMBER 31, 1995
- ------------------------------------------------------------------------------
ASSETS
1995
--------------
CURRENT ASSETS:
<S> <C>
Cash $ 33,580
Accounts receivable - oil & gas sales 106,750
Other current assets 10,201
--------------
Total current assets 150,531
--------------
OIL & GAS PROPERTIES
(Successful efforts accounting method) - Proved
mineral interests and related equipment & facilities 1,451,194
Less accumulated depreciation and depletion 540,909
--------------
Property, net 910,285
--------------
ORGANIZATION COSTS
(Net of accumulated amortization of $51,207) 7,878
-------------
TOTAL $ 1,068,694
==============
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 83,497
Payable to general partner 5,844
--------------
Total current liabilities 89,341
--------------
PARTNERS' CAPITAL (DEFICIT):
Limited partners 954,372
General partner 24,981
--------------
Total partners' capital 979,353
--------------
TOTAL $ 1,068,694
==============
Number of $500 Limited Partner units outstanding 2,954
</TABLE>
See accompanying notes to financial statements.
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II-4
<PAGE>
ENEX OIL & GAS INCOME PROGRAM V - SERIES 4, L.P.
STATEMENTS OF OPERATIONS
FOR THE TWO YEARS ENDED DECEMBER 31, 1995
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<TABLE>
<CAPTION>
1995 1994
------------------ ------------------
REVENUES:
<S> <C> <C>
Oil and gas sales $ 897,673 $ 960,840
------------------ ------------------
EXPENSES:
Depreciation, depletion and amortization 125,697 132,793
Lease operating expenses 572,672 608,556
Production taxes 49,614 54,109
General and administrative:
Allocated from general partner 55,674 42,622
Direct expense 456 5,736
------------------ ------------------
Total expenses 804,113 843,816
------------------ ------------------
INCOME FROM OPERATIONS 93,560 117,024
------------------ ------------------
OTHER INCOME (EXPENSE):
Interest income (expense) 132 (973)
------------------ ------------------
NET INCOME $ 93,692 $ 116,051
================== ==================
</TABLE>
See accompanying notes to financial statements.
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II-5
<PAGE>
ENEX OIL & GAS INCOME PROGRAM V - SERIES 4, L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
FOR THE TWO YEARS ENDED DECEMBER 31, 1995
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<TABLE>
<CAPTION>
PER $500
LIMITED
PARTNER
GENERAL LIMITED UNIT OUT-
TOTAL PARTNER PARTNERS STANDING
----------------- ----------------- ----------------- -------------
<S> <C> <C> <C> <C>
BALANCE, JANUARY 1, 1994 $ 1,111,748 $ 12,372 $ 1,099,376 $ 372
CASH DISTRIBUTIONS (138,037) (13,804) (124,233) (42)
NET INCOME 116,051 24,884 91,167 31
---------------- ----------------- --------------- -----------
BALANCE, DECEMBER 31, 1994 1,089,762 23,452 1,066,310 361
CASH DISTRIBUTIONS (204,101) (20,410) (183,691) (62)
NET INCOME 93,692 21,939 71,753 24
---------------- ---------------- --------------- -----------
BALANCE, DECEMBER 31, 1995 $ 979,353 $ 24,981 $ 954,372 (1) $ 323
================= ================= ================= =============
</TABLE>
(1) Includes 260 units purchased by the general partner as a limited partner.
See accompanying notes to financial statements.
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II-6
<PAGE>
ENEX OIL AND GAS INCOME PROGRAM V - SERIES 4, L.P.
STATEMENTS OF CASH FLOWS
FOR THE TWO YEARS ENDED DECEMBER 31, 1995
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<PAGE>
<TABLE>
<CAPTION>
1995 1994
------------------- -------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 93,692 $ 116,051
------------------- -------------------
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation, depletion and amortization 125,697 132,793
(Increase) decrease in:
Accounts receivable - oil & gas sales (5,313) (64,124)
Receivable from affiliated limited partnership - 17,044
Other current assets (7,289) 132,054
Increase (decrease) in:
Accounts payable (15,462) 48,898
Payable to general partner (6,390) 7,675
------------------- -------------------
Total adjustments 91,243 274,340
------------------- -------------------
Net cash provided by operating activities 184,935 390,391
------------------- -------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions - development costs (33,298) (104,696)
------------------- -------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of note payable to General Partner - (89,558)
Cash distributions (204,101) (138,037)
------------------- -------------------
Net cash used by investing activities (204,101) (227,595)
------------------- -------------------
NET INCREASE (DECREASE) IN CASH (52,464) 58,100
CASH AT BEGINNING OF YEAR 86,044 27,944
------------------- -------------------
CASH AT END OF YEAR $ 33,580 $ 86,044
=================== ===================
Cash paid for interest during the year $ - $ 973
=================== ===================
</TABLE>
See accompanying notes to financial statements.
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II-7
<PAGE>
ENEX OIL & GAS INCOME PROGRAM V - SERIES 4, L.P.
NOTES TO FINANCIAL STATEMENTS
FOR THE TWO YEARS ENDED DECEMBER 31, 1995
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1. PARTNERSHIP ORGANIZATION
Enex Oil & Gas Income Program V - Series 4, L.P. (the "Company"), a
New Jersey limited partnership, commenced operations on August 8,
1991, for the purpose of acquiring proved oil and gas properties.
Total limited partner contributions were $1,477,116, of which
$14,771 was contributed by Enex Resources Corporation ("Enex"), the
general partner.
In accordance with the partnership agreement, the Company paid
commissions and due diligence expenses of $140,849 for solicited
subscriptions to Enex Securities Corporation, a subsidiary of Enex,
and reimbursed Enex for organization expenses of approximately
$59,000.
Information relating to the allocation of costs and revenues
between Enex, as general partner, and the limited partners is as
follows:
Limited
Enex Partners
Commissions and selling expenses 100%
Company reimbursement of organization
expense 100%
Company property acquisition 100%
General and administrative costs 10% 90%
Costs of drilling and completing
development wells 10% 90%
Revenues from temporary investment of
partnership capital 100%
Revenues from producing properties 10% 90%
Operating costs (including general and
administrative costs associated with
operating producing properties) 10% 90%
At the point in time when the cash distributions to the limited
partners equal their subscriptions ("payout"), the costs of
drilling and completing development wells, revenues from producing
properties, general and administrative costs and operating costs
will be allocated 15% to the general partner and 85% to the limited
partners.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Oil and Gas Properties - The Company uses the successful efforts
method of accounting for its oil and gas operations. Under this
method, the costs of all development wells are capitalized.
Capitalized costs are amortized on the units-of-production method
based on estimated total proved reserves. The acquisition costs of
improved oil and gas properties are capitalized and periodically
assessed for impairment.
II-8
<PAGE>
The Financial Accounting Standards Board has issued Statement of
Financial Accounting Standards No. 121, "Accounting for the
Impairment of Long Lived Assets and for Long-Lived Assets to Be
Disposed Of." This statement requires that long-lived assets and
certain identifiable intangibles held and used by the Company be
reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be
recoverable.
The Company has not determined the effect, if any, on its financial
position or results of operations which may result from the
adoption of this statement in the first quarter of 1996.
The Company's operating interests in oil and gas properties are
recorded using the pro rata consolidation method pursuant to
Interpretation 2 of Accounting Principles Board Opinion 18.
Organization Costs - Organization costs are being amortized on a
straight-line basis over a five-year period.
Cash Flows - The Company has presented its cash flows using the
indirect method and considers all highly liquid investments with an
original maturity of three months or less to be cash equivalents.
General and Administrative Expenses - The Company reimburses the
General Partner for direct costs and administrative costs incurred
on its behalf. Administrative costs allocated to the Company are
computed on a cost basis in accordance with standard industry
practices by allocating the time spent by the General Partner's
personnel among all projects and by allocating rent and other
overhead on the basis of the relative direct time charges.
Uses of Estimates - The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contigent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during
the reporting periods. Actual results could differ from these
estimates.
3. FEDERAL INCOME TAXES
General - The Company is not a taxable entity for federal income
tax purposes. Such taxes are liabilities of the individual partners
and the amounts thereof will vary depending on the individual
situation of each partner. Accordingly, there is no provision for
income taxes in the accompanying financial statements.
II-9
<PAGE>
Set forth below is a reconciliation of net income as reflected in the
accompanying financial statements and net income for federal income tax purposes
for the year ended December 31, 1995:
<TABLE>
<CAPTION>
Allocable to Per $500 Limited
-------------------------------------
General Limited Partner Unit
TOTAL Partner Partners Outstanding
------------------ ------------------ ----------------- ---------------------
Net income as reflected in the
<S> <C> <C> <C> <C>
accompanying finanical statements $ 93,692 $ 21,939 $ 71,753 $ 24
Reconciling items:
Intangible drilling costs
capitalized for financial
reporting purposes which
were charged-off for federal
income tax purposes (9,081) (908) (8,173) (3)
Difference in depreciation,
depletion and amortization
computed for federal income
tax purposes and the amount
computed for financial
reporting purposes (37,750) - (37,750) (13)
------------------ ------------------ ----------------- ---------------------
Net income for federal
income tax purposes $ 46,861 $ 21,031 $ 25,830 $ 8
================== ================== ================= =====================
</TABLE>
Net income for income tax purposes is a summation of ordinary income, portfolio
income, cost depletion and intangible drilling costs as presented in the
Company's federal income tax return.
Set forth below is a reconciliation between partners' capital as reflected in
the accompanying financial statements and partners' capital for federal income
tax purposes as of December 31, 1995:
<TABLE>
<CAPTION>
Allocable to Per $500 Limited
-------------------------------------
General Limited Partner Unit
TOTAL Partner Partners Outstanding
------------------ ------------------ ----------------- ---------------------
Partners' capital as reflected in the
<S> <C> <C> <C> <C>
accompanying financial statements $ 979,353 $ 24,981 954,372 323
Reconciling items:
Intangible drilling costs
capitalized for financial
reporting purposes which
were charged-off for federal
income tax purposes (83,932) (8,393) (75,539) (26)
Difference in accumulated
depreciation, depletion and
amortization for financial
reporting and federal income
tax purposes (179,850) - (179,850) (61)
Commissions and syndication
fees capitalized for federal
income tax purposes 140,849 - 140,849 48
------------------ ------------------ ----------------- ---------------------
Partners' capital for federal
income tax purposes $ 856,420 $ 16,588 839,832 284
================== ================== ================= =====================
</TABLE>
II-10
<PAGE>
4. NOTE PAYABLE TO GENERAL PARTNER
On December 1, 1993, in order to finance drilling costs, the
Company borrowed $95,690 from the general partner. In 1994, the
Company made principal payments of $89,558 which completely repaid
the note. The weighted average principal outstanding in 1994 of
$13,682 bore interest at an average rate of 7.11%, which was the
general partner's borrowing rate of prime plus three-fourths of one
percent.
5. SIGNIFICANT PURCHASERS
Enron Oil Trading & Transportation Company and Arcadia Exploration
Corporation accounted for 73% and 20%, respectively, of the
Company's total sales in 1995. Enron Oil Trading & Transportation
Company and Michael Petroleum Co. accounted for 73% and 21%,
respectively, of the Company's total sales in 1994. No other
purchaser individually accounted for more than 10% of such sales.
6. PAYABLE TO GENERAL PARTNER
The payable to general partner primarily consists of general and
administrative expenses allocated to the Company by Enex for its
ongoing operations. The Company plans to repay the amounts owed to
the general partner during 1996.
II-11
<PAGE>
ENEX OIL & GAS INCOME PROGRAM V - SERIES 4, L.P.
SUPPLEMENTARY OIL AND GAS INFORMATION
FOR THE TWO YEARS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------
Proved Oil and Gas Reserve Quantities (Unaudited)
The following presents an estimate of the Company's proved oil and gas reserve
quantities and changes therein for each of the two years in the period ended
December 31, 1995. Oil reserves are stated in barrels (BBLS) and natural gas in
thousand cubic feet ("MCF"). The amounts per $500 limited partner unit do not
include a potentail 5% reduction after payout. All of the Company's reserves are
located within the United States.
<TABLE>
<CAPTION>
Per $500 Per $500
Limited Natural Limited
Oil Partner Unit Gas Partner Unit
(BBLS) Outstanding (MCF) Outstanding
----------------- ----------------- ----------------- -----------------
PROVED DEVELOPED AND
UNDEVELOPED RESERVES:
<S> <C> <C> <C> <C>
January 1, 1994 183,660 56 412,482 126
Revisions of previous estimates 55,212 17 153,695 47
Production (27,533) (8) (65,918) (21)
----------------- ----------------- ----------------- -----------------
December 31, 1994 211,339 65 500,259 152
Revisions of previous estimates 976 - 227,059 69
Production (25,492) (8) (72,377) (21)
----------------- ----------------- ----------------- -----------------
December 31, 1995 186,823 57 654,941 200
================= ================= ================= =================
PROVED DEVELOPED RESERVES
January 1, 1994 183,660 56 412,482 126
================= ================= ================= =================
December 31, 1994 211,339 65 500,259 152
================= ================= ================= =================
December 31, 1995 186,823 57 654,941 200
================= ================= ================= =================
</TABLE>
II-12
<PAGE>
Item 8. Changes In and Disagreements With Accountants on Accounting and
Financial Disclosure
Not Applicable
II-13
<PAGE>
SIGNATURES
In accordance with Section 13 or 15 (d) of the Exchange Act,
the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
ENEX OIL AND GAS INCOME PROGRAM V -
SERIES 4, L.P.
By: ENEX RESOURCES CORPORATION
the General Partner
December 23, 1996 By: /s/ G. B. Eckley
-------------------
G. B. Eckley, President
In accordance with the Exchange Act, this report has been
signed below on December 23, 1996, by the following persons in the capacities
indicated.
ENEX RESOURCES CORPORATION General Partner
By: /s/ G. B. Eckley
------------------------
G. B. Eckley, President
/s/ G. B. Eckley
President, Chief Executive
------------------ Officer and Director
G. B. Eckley
/s/ R. E. Densford Vice President, Secretary, Treasurer,
Chief Financial Officer and Director
-------------------
R. E. Densford
/s/ James A. Klein Controller and Chief Accounting Officer
-----------------
James A. Klein
S-1
<PAGE>
/s/ Robert D. Carl, III
--------------------------
Robert D. Carl, III Director
/s/ Martin J. Freedman
--------------------------
Martin J. Freedman Director
/s/ William C. Hooper, Jr.
--------------------------
William C. Hooper, Jr. Director
/s/ Tom Shorney
--------------------------
Tom Shorney Director
/s/ Stuart Strasner
--------------------------
Stuart Strasner Director
S-2
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000881757
<NAME> ENEX OIL & GAS INCOME PROGRAM V - SERIES 4, L.P.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> dec-31-1996
<PERIOD-START> jan-01-1996
<PERIOD-END> dec-31-1996
<CASH> 33580
<SECURITIES> 0
<RECEIVABLES> 106750
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 150531
<PP&E> 1451194
<DEPRECIATION> 540909
<TOTAL-ASSETS> 1068694
<CURRENT-LIABILITIES> 89341
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 979353
<TOTAL-LIABILITY-AND-EQUITY> 1068694
<SALES> 897673
<TOTAL-REVENUES> 897673
<CGS> 747983
<TOTAL-COSTS> 804113
<OTHER-EXPENSES> 56130
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 93692
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
