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 March 31, 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. 33-26097-10
PARKER & PARSLEY 90-C CONV., L.P.
(Exact name of Registrant as specified in its charter)
Delaware 75-2347264
(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 10 pages.
-There are no exhibits-
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PARKER & PARSLEY 90-C CONV., L.P.
TABLE OF CONTENTS
Page
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets as of March 31, 1997 and
December 31, 1996......................................... 3
Statements of Operations for the three months
ended March 31, 1997 and 1996............................. 4
Statement of Partners' Capital for the three months
ended March 31, 1997...................................... 5
Statements of Cash Flows for the three months
ended March 31, 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............................ 9
27. Financial Data Schedule
Signatures.................................................. 10
2
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PARKER & PARSLEY 90-C CONV., L.P.
(A Delaware Limited Partnership)
Part I. Financial Information
Item 1. Financial Statements
BALANCE SHEETS
March 31, December 31,
1997 1996
----------- ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including interest
bearing deposits of $97,428 at March 31
and $79,483 at December 31 $ 97,428 $ 79,564
Accounts receivable - oil and gas sales 80,132 124,287
---------- ----------
Total current assets 177,560 203,851
---------- ----------
Oil and gas properties - at cost, based on the
successful efforts accounting method 5,747,606 5,744,947
Accumulated depletion (4,313,112) (4,287,671)
---------- ----------
Net oil and gas properties 1,434,494 1,457,276
---------- ----------
$ 1,612,054 $ 1,661,127
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 19,190 $ 17,442
Partners' capital:
Managing general partner 15,898 16,406
Limited partners (7,531 interests) 1,576,966 1,627,279
---------- ----------
1,592,864 1,643,685
---------- ----------
$ 1,612,054 $ 1,661,127
========== ==========
The financial information included as of March 31, 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 90-C CONV., L.P.
(A Delaware Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
--------------------------
1997 1996
----------- -----------
Revenues:
Oil and gas $ 188,025 $ 190,916
Interest 1,380 983
--------- ---------
189,405 191,899
--------- ---------
Costs and expenses:
Oil and gas production 88,063 83,533
General and administrative 6,160 5,727
Depletion 25,441 33,668
--------- ---------
119,664 122,928
--------- ---------
Net income $ 69,741 $ 68,971
========= =========
Allocation of net income:
Managing general partner $ 697 $ 690
========= =========
Limited partners $ 69,044 $ 68,281
========= =========
Net income per limited partnership interest $ 9.17 $ 9.07
========= =========
Distributions per limited partnership interest $ 15.85 $ 10.52
========= =========
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 90-C CONV., L.P.
(A Delaware Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
---------- ----------- -----------
Balance at January 1, 1997 $ 16,406 $ 1,627,279 $ 1,643,685
Distributions (1,205) (119,357) (120,562)
Net income 697 69,044 69,741
--------- ---------- ----------
Balance at March 31, 1997 $ 15,898 $ 1,576,966 $ 1,592,864
========= ========== ==========
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
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PARKER & PARSLEY 90-C CONV., L.P.
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
March 31,
------------------------
1997 1996
---------- ----------
Cash flows from operating activities:
Net income $ 69,741 $ 68,971
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 25,441 33,668
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 44,155 (10,668)
Increase (decrease) in accounts payable 1,748 (26,527)
--------- ---------
Net cash provided by operating activities 141,085 65,444
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (2,659) (891)
Cash flows from financing activities:
Cash distributions to partners (120,562) (79,995)
--------- ---------
Net increase (decrease) in cash and cash equivalents 17,864 (15,442)
Cash and cash equivalents at beginning of period 79,564 82,151
--------- ---------
Cash and cash equivalents at end of period $ 97,428 $ 66,709
========= =========
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
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PARKER & PARSLEY 90-C CONV., L.P.
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
(Unaudited)
Note 1. Organization and nature of operations
Parker & Parsley 90-C Conv., L.P. (the "Partnership") was organized as a general
partnership in 1990 under the laws of the State of Texas and was converted to a
Delaware limited partnership on August 1, 1991.
The Partnership engages primarily 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 as of March 31,
1997 of the Partnership 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. However, these interim results are not
necessarily indicative of results for a full year.
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
Steven L. Beal, Senior Vice President, 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
Revenues:
The Partnership's oil and gas revenues decreased to $188,025 from $190,916 for
the three months ended March 31, 1997 and 1996, respectively, a decrease of
$2,891. The decrease in revenues resulted from a 17% decline in barrels of oil
produced and sold and an 18% decline in mcf of gas produced and sold, offset by
a 15% increase in the average price received per barrel of oil and a 31%
increase in the average price received per mcf of gas. For the three months
ended March 31, 1997, 6,596 barrels of oil were sold compared to 7,904 for the
same period in 1996, a decrease of 1,308 barrels. For the three months ended
March 31, 1997, 14,606 mcf of gas were sold compared to 17,794 for the same
period in 1996, a decrease 3,188 mcf. Of the decrease, 750 mcf, or 4%, was
attributable to the sale of one gas well during 1996, with the remaining 2,438
7
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mcf, or 14% due to production declines. Due to the decline characteristics of
the Partnership's oil and gas properties, management expects a certain amount of
decline in production to continue in the future until the Partnership's
economically recoverable reserves are fully depleted.
The average price received per barrel of oil increased $2.89 from $19.10 for the
three months ended March 31, 1996 to $21.99 for the same period in 1997, while
the average price received per mcf of gas increased from $2.25 during the three
months ended March 31, 1996 to $2.94 for the same period in 1997. 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 three months ended
March 31, 1997.
Costs and Expenses:
Total costs and expenses decreased to $119,664 for the three months ended March
31, 1997 as compared to $122,928 for the same period in 1996, a decrease of
$3,264, or 3%. This decrease was due to a decline in depletion, offset by
increases in production costs and general and administrative expenses ("G&A").
Production costs were $88,063 for the three months ended March 31, 1997 and
$83,533 for the same period in 1996, resulting in an increase of $4,530, or 5%.
The increase was due to additional well repair and maintenance costs, offset by
lower ad valorem taxes.
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, 8% from $5,727 for the three months ended March 31,
1996 to $6,160 for the same period in 1997.
Depletion was $25,441 for the three months ended March 31, 1997 compared to
$33,668 for the same period in 1996. This represented a decrease in depletion of
$8,227, or 24%, primarily attributable to an upward revision in oil and gas
reserves and a decline in oil production of 1,308 barrels for the three months
ended March 31, 1997 compared to the same period in 1996.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $75,641 during the three
months ended March 31, 1997 from the same period in 1996. This increase was due
to an increase in oil and gas sales receipts and a decline in expenditures for
production costs.
Net Cash Used in Investing Activities
The Partnership's principal investing activities during the three months ended
March 31, 1997 and 1996 related to the addition of oil and gas equipment on
active properties.
8
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Net Cash Used in Financing Activities
Cash was sufficient for the three months ended March 31, 1997 to cover
distributions to the partners of $120,562 of which $119,357 was distributed to
the limited partners and $1,205 to the managing general partner. For the same
period ended March 31, 1996, cash was sufficient for distributions to the
partners of $79,995 of which $79,196 was distributed to the limited partners and
$799 to the managing general partner.
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) Form 8-K - none
9
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PARKER & PARSLEY 90-C CONV., 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 90-C CONV., L.P.
By: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: May 8, 1997 By: /s/ Steven L. Beal
-------------------------------------
Steven L. Beal, Senior Vice President
and Chief Financial Officer of PPUSA
10
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