FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(MARK ONE)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
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 Number 33-47667-01
SOUTHWEST OIL & GAS 1992-93 INCOME PROGRAM
Southwest Oil & Gas Income Fund XI-A, L.P.
(Exact name of registrant as specified
in its limited partnership agreement)
Delaware 75-2427267
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
407 N. Big Spring, Suite 300
Midland, Texas 79701
(Address of principal executive offices)
(915) 686-9927
(Registrant's telephone number,
including area code)
Indicate by check mark whether 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
The total number of pages contained in this report is 14.
<PAGE>
PART I. - FINANCIAL INFORMATION
Item 1. Financial Statements
The unaudited condensed financial statements included herein have been
prepared by the Registrant (herein also referred to as the "Partnership") in
accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01
of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all adjustments
necessary for a fair presentation have been included and are of a normal
recurring nature. The financial statements should be read in conjunction
with the audited financial statements and the notes thereto for the year
ended December 31, 1995 which are found in the Registrant's Form 10-K Report
for 1995 filed with the Securities and Exchange Commission. The December 31,
1995 balance sheet included herein has been taken from the Registrant's 1995
Form 10-K Report. Operating results for the three and six month periods
ended June 30, 1996 are not necessarily indicative of the results that may be
expected for the full year.
<PAGE>
Southwest Oil & Gas Income Fund XI-A, L.P.
Balance Sheets
June 30, December 31,
1996 1995
--------- ------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 6,013 28,968
Receivable from Managing
General Partner 63,066 44,235
--------- ---------
Total current assets 69,079 73,203
--------- ---------
Oil and gas properties - using the
full cost method of accounting 1,088,431 1,091,320
Less accumulated depreciation,
depletion and amortization 247,000 181,000
--------- ---------
Net oil and gas properties 841,431 910,320
--------- ---------
Organization costs, net 11,574 15,084
--------- ---------
$ 922,084 998,607
========= =========
Liabilities and Partners' Equity
Partners' equity:
General partners $ (4,771) (4,318)
Limited partners 926,855 1,002,925
--------- ---------
Total partners' equity 922,084 998,607
--------- ---------
$ 922,084 998,607
========= =========
<PAGE>
Southwest Oil & Gas Income Fund XI-A, L.P.
Statements of Operations
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Revenues
Oil and gas $ 128,283 133,342 262,220 239,659
Interest 243 602 420 602
------- ------- ------- -------
128,526 133,944 262,640 240,261
------- ------- ------- -------
Expenses
Production 52,875 57,567 108,047 112,849
General and administrative 7,371 7,930 20,125 19,752
Depreciation, depletion and
amortization 35,755 37,755 69,510 71,510
------- ------- ------- -------
96,001 103,252 197,682 204,111
------- ------- ------- -------
Net income $ 32,525 30,692 64,958 36,150
======= ======= ======= =======
Net income allocated to:
Managing General Partner $ 6,145 6,160 12,102 9,689
======= ======= ======= =======
General Partner $ 683 684 1,345 1,077
======= ======= ======= =======
Limited Partners $ 25,697 23,848 51,511 25,384
======= ======= ======= =======
Per limited partner
unit $ 9.11 8.45 18.26 9.00
======= ======= ======= =======
<PAGE>
<PAGE>
Southwest Oil & Gas Income Fund XI-A, L.P.
Statements of Cash Flows
(unaudited)
Six Months Ended
June 30,
1996 1995
Cash flows from operating activities:
Cash received from oil and gas sales $ 245,986 157,532
Cash paid to suppliers (130,769) (113,132)
Interest received 420 602
------- -------
Net cash provided by operating
activities 115,637 45,002
------- -------
Cash flows from investing activities:
Additions of oil and gas properties (3,056) (3,489)
Sale of oil and gas properties 5,945 127,506
------- -------
Net cash provided by investing
activities 2,889 124,017
------- -------
Cash flows used in financing activities:
Distributions to partners (141,481) (89,374)
------- -------
Net increase (decrease) in cash and
cash equivalents (22,955) 79,645
Beginning of period 28,968 190
------- -------
End of period $ 6,013 79,835
======= =======
(continued)
PAGE
<PAGE>
Southwest Oil & Gas Income Fund XI-A, L.P.
Statements of Cash Flows, continued
(unaudited)
Six Months Ended
June 30,
1996 1995
Reconciliation of net income to
net cash provided by operating
activities:
Net income $ 64,958 36,150
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion and
amortization 69,510 71,510
Increase in receivables (16,234) (82,127)
Increase (decrease) in payables (2,597) 19,469
------- -------
Net cash provided by operating
activities $ 115,637 45,002
======= =======
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
General
Southwest Oil & Gas Income Fund XI-A, L.P. was organized as a Delaware
limited partnership on May 5, 1992. The offering of such limited partnership
interests began August 20, 1992 as part of a shelf offering registered under
the name Southwest Oil & Gas 1992-93 Income Program. Minimum capital
requirements for the Partnership were met on March 17, 1993, with the
offering of limited partnership interests concluding April 30, 1993. At the
conclusion of the offering of limited partnership interests, 122 limited
partners had purchased 2,821 units for $1,410,500.
The Partnership was formed to acquire interests in producing oil and gas
properties, to produce and market crude oil and natural gas produced from
such properties, and to distribute the net proceeds from operations to the
limited and general partners. Net revenues from producing oil and gas
properties will not be reinvested in other revenue producing assets except to
the extent that production facilities and wells are improved or reworked or
where methods are employed to improve or enable more efficient recovery of
oil and gas reserves.
Increases or decreases in Partnership revenues and, therefore, distributions
to partners will depend primarily on changes in the prices received for
production, changes in volumes of production sold, lease operating expenses,
enhanced recovery projects, offset drilling activities pursuant to farmout
arrangements, sales of properties, and the depletion of wells. Since wells
deplete over time, production can generally be expected to decline from year
to year.
Well operating costs and general and administrative costs usually decrease
with production declines; however, these costs may not decrease
proportionately. Net income available for distribution to the partners is
therefore expected to fluctuate in later years based on these factors.
PAGE
<PAGE>
Results of Operations
A. General Comparison of the Quarters Ended June 30, 1996 and 1995
The following table provides certain information regarding performance
factors for the quarters ended June 30, 1996 and 1995:
Three Months
Ended Percentage
June 30, Increase
1996 1995 (Decrease)
---- ---- ----------
Average price per barrel of oil $ 20.26 17.71 14%
Average price per mcf of gas $ 2.27 1.60 42%
Oil production in barrels 3,100 3,800 (18%)
Gas production in mcf 29,100 41,200 (29%)
Gross oil and gas revenue $ 128,283 133,342 (4%)
Net oil and gas revenue $ 75,408 75,775 -
Partnership distributions $ 70,481 80,000 (12%)
Limited partner distributions $ 63,681 74,000 (14%)
Per unit distribution to limited
partners $ 22.57 26.23 (14%)
Number of limited partner units 2,821 2,821
Revenues
The Partnership's oil and gas revenues decreased to $128,283 from $133,342
for the quarters ended June 30, 1996 and 1995, respectively, a decrease of
4%. The principal factors affecting the comparison of the quarters ended
June 30, 1996 and 1995 are as follows:
1. The average price for a barrel of oil received by the Partnership
increased during the quarter ended June 30, 1996 as compared to the
quarter ended June 30, 1995 by 14%, or $2.55 per barrel, resulting in an
increase of approximately $9,700 in revenues. Oil sales represented 48%
of total oil and gas sales during the quarter ended June 30, 1996 as
compared to 51% during the quarter ended June 30, 1995.
The average price for an mcf of gas received by the Partnership increased
during the same period by 42%, or $.67 per mcf, resulting in an increase
of approximately $27,600 in revenues.
The total increase in revenues due to the change in prices received from
oil and gas production is approximately $37,300. The market price for
oil and gas has been extremely volatile over the past decade, and
management expects a certain amount of volatility to continue in the
foreseeable future.
PAGE
<PAGE>
2. Oil production decreased approximately 700 barrels or 18% during the
quarter ended June 30, 1996 as compared to the quarter ended June 30,
1995, resulting in a decrease of approximately $14,200 in revenues.
Gas production decreased approximately 12,100 mcf or 29% during the same
period, resulting in a decrease of approximately $27,500 in revenues.
The total decrease in revenues due to the change in production is
approximately $41,700. The decrease is a result of property sales and
surface problems.
Costs and Expenses
Total costs and expenses decreased to $96,001 from $103,252 for the quarters
ended June 30, 1996 and 1995, respectively, a decrease of 7%. The decrease
is the result of lower lease operating costs, general and administrative
expense and depletion expense.
1. Lease operating costs and production taxes were 8% lower, or
approximately $4,700 less during the quarter ended June 30, 1996 as
compared to the quarter ended June 30, 1995.
2. General and administrative costs consist of independent accounting and
engineering fees, computer services, postage, and Managing General
Partner personnel costs. General and administrative costs decreased 7%
or approximately $600 during the quarter ended June 30, 1996 as compared
to the quarter ended June 30, 1995.
3. Depletion expense decreased to $34,000 for the quarter ended June 30,
1996 from $36,000 for the same period in 1995. This represents a
decrease of 6%. Depletion is calculated using the gross revenue method
of amortization based on a percentage of current period gross revenues to
total future gross oil and gas revenues, as estimated by the
Partnership's independent petroleum consultants. Consequently, depletion
will generally fluctuate in direct relation to oil and gas revenues. As
noted above, oil and gas revenues declined due to a decrease in
production for the quarter ended June 30, 1996 as compared to the same
period for 1995. Depletion reflected a comparable decline.
PAGE
<PAGE>
B. General Comparison of the Six Month Periods Ended June 30, 1996 and 1995
The following table provides certain information regarding performance
factors for the six month periods ended June 30, 1996 and 1995:
Six Months
Ended Percentage
June 30, Increase
1996 1995 (Decrease)
---- ---- ----------
Average price per barrel of oil $ 19.19 17.29 11%
Average price per mcf of gas $ 2.30 1.54 49%
Oil production in barrels 6,500 6,800 (4%)
Gas production in mcf 60,100 79,500 (24%)
Gross oil and gas revenue $ 262,220 239,659 9%
Net oil and gas revenue $ 154,173 126,810 22%
Partnership distributions $ 141,481 89,305 58%
Limited partner distributions $ 127,581 82,655 54%
Per unit distribution to limited
partners $ 45.23 29.30 54%
Number of limited partner units 2,821 2,821
Revenues
The Partnership's oil and gas revenues increased to $262,220 from $239,659
for the six months ended June 30, 1996 and 1995, respectively, an increase of
9%. The principal factors affecting the comparison of the six months ended
June 30, 1996 and 1995 are as follows:
1. The average price for a barrel of oil received by the Partnership
increased during the six months ended June 30, 1996 as compared to the
six months ended June 30, 1995 by 11%, or $1.90 per barrel, resulting in
an increase of approximately $12,900 in revenues. Oil sales represented
47% of total oil and gas sales during the six months ended June 30, 1996
as compared to 49% during the six months ended June 30, 1995.
The average price for an mcf of gas received by the Partnership increased
during the same period by 49%, or $.76 per mcf, resulting in an increase
of approximately $60,400 in revenues.
The total increase in revenues due to the change in prices received from
oil and gas production is approximately $73,300. The market price for
oil and gas has been extremely volatile over the past decade, and
management expects a certain amount of volatility to continue in the
foreseeable future.
PAGE
<PAGE>
2. Oil production decreased approximately 300 barrels or 4% during the six
months ended June 30, 1996 as compared to the six months ended June 30,
1995, resulting in a decrease of approximately $5,800 in revenues.
Gas production decreased approximately 19,400 mcf or 24% during the same
period, resulting in a decrease of approximately $44,600 in revenues.
The total decrease in revenues due to the change in production is
approximately $50,400. The decrease is a result of property sales and
surface problems.
Costs and Expenses
Total costs and expenses decreased to $197,682 from $204,111 for the six
months ended June 30, 1996 and 1995, respectively, a decrease of 3%. The
decrease is the result of a decline in lease operating costs and depletion
expense, offset by an increase in general and administrative expense.
1. Lease operating costs and production taxes were 4% lower, or
approximately $4,800 less during the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995.
General and administrative costs consist of independent accounting and
engineering fees, computer services, postage, and Managing General
Partner personnel costs. General and administrative costs increased 2%
or approximately $400 during the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995.
3. Depletion expense decreased to $66,000 for the six months ended June 30,
1996 from $68,000 for the same period in 1995. This represents a
decrease of 3%. Depletion is calculated using the gross revenue method
of amortization based on a percentage of current period gross revenues to
total future gross oil and gas revenues, as estimated by the
Partnership's independent petroleum consultants.
PAGE
<PAGE>
Liquidity and Capital Resources
The primary source of cash is from operations, the receipt of income from
interests in oil and gas properties. The Partnership knows of no material
change, nor does it anticipate any such change.
Cash flows provided by operating activities were approximately $115,600 in
the six months ended June 30, 1996 as compared to approximately $45,000 in
the six months ended June 30, 1995. The primary source of the 1996 cash flow
from operating activities was profitable operations.
Cash flows provided by investing activities were approximately $2,900 in the
six months ended June 30, 1996 as compared to approximately $124,000 in the
six months ended June 30, 1995. The principle source of the 1996 cash flow
from investing activities was the sale of oil and gas properties, offset by
the additions to oil and gas properties.
Cash flows used in financing activities were approximately $141,500 in the
six months ended June 30, 1996 as compared to approximately $89,400 in the
six months ended June 30, 1995. The only use in financing activities was the
distributions to partners.
Total distributions during the six months ended June 30, 1996 were $141,481
of which $127,581 was distributed to the limited partners and $13,900 to the
general partners. The per unit distribution to limited partners during the
six months ended June 30, 1996 was $45.23. Total distributions during the
six months ended June 30, 1995 were $89,305 of which $82,655 was distributed
to the limited partners and $6,650 to the general partners. The per unit
distribution to limited partners during the six months ended June 30, 1995
was $29.30.
The sources for the 1996 distributions of $141,481 were oil and gas
operations of approximately $115,600 and the sale of oil and gas properties
of approximately $5,900, offset by additions to oil and gas properties of
approximately $3,100, with the balance from available cash on hand at the
beginning of the period. The sources for the 1995 distributions of $89,305
were oil and gas operations of approximately $45,000 and the sale of oil and
gas properties of approximately $127,500, offset by additions to oil and gas
properties of approximately $3,500, resulting in excess cash for
contingencies or subsequent distributions.
Since inception of the Partnership, cumulative monthly cash distributions of
$453,142 have been made to the partners. As of June 30, 1996, $413,892 or
$146.72 per limited partner unit has been distributed to the limited
partners, representing a 29% return of the capital contributed.
As of June 30, 1996, the Partnership had approximately $69,100 in working
capital. The Managing General Partner knows of no unusual contractual
commitments and believes the revenues generated from operations are adequate
to meet the needs of the Partnership.
<PAGE>
<PAGE>
PART II. - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matter to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) None
(b) No reports on Form 8-K were filed during the quarter for which
this report is filed.
PAGE
<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 thereunto duly authorized.
SOUTHWEST OIL & GAS
INCOME FUND XI-A, L.P.
a Delaware limited partnership
By: Southwest Royalties, Inc.
Managing General Partner
By: /s/ Bill E. Coggin
Bill E. Coggin, Vice President
and Chief Financial Officers
Date: August 12, 1996
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Balance
Sheet at June 30, 1996 (Unaudited) and the Statement of Operations for the Six
Months Ended June 30, 1996 (Unaudited) and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 6,013
<SECURITIES> 0
<RECEIVABLES> 63,066
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 69,079
<PP&E> 1,088,431
<DEPRECIATION> 247,000
<TOTAL-ASSETS> 922,084
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 922,084
<TOTAL-LIABILITY-AND-EQUITY> 922,084
<SALES> 262,220
<TOTAL-REVENUES> 262,640
<CGS> 108,047
<TOTAL-COSTS> 108,047
<OTHER-EXPENSES> 89,635
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 64,958
<INCOME-TAX> 0
<INCOME-CONTINUING> 64,958
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 64,958
<EPS-PRIMARY> 18.26
<EPS-DILUTED> 18.26
</TABLE>
