<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 1996
Commission File Number: P-7: 0-20265 P-8: 0-20264
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
-------------------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
P-7: 73-1367186
Oklahoma P-8: 73-1378683
- -------------------------------- --------------------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
Two West Second Street, Tulsa, Oklahoma 74103
---------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (918) 583-1791
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 the filing requirements for the past 90
days.
Yes X No
---- ----
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1996 1995
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 363,570 $ 270,118
Accounts receivable:
Net profits and royalty interests
in oil and gas sales 426,859 309,444
---------- ----------
Total current assets $ 790,429 $ 579,562
NET PROFITS AND ROYALTY INTERESTS IN
OIL AND GAS PROPERTIES, net,
utilizing the successful efforts
method 7,886,553 8,395,716
---------- ----------
$8,676,982 $8,975,278
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 74,616) ($ 45,524)
Limited Partners, issued and
outstanding, 188,702 units 8,751,598 9,020,802
---------- ----------
Total Partners' capital $8,676,982 $8,975,278
---------- ----------
$8,676,982 $8,975,278
========== ==========
The accompanying notes are an integral part of
these financial statements.
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GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
--------- ---------
REVENUES:
Net profits and royalty interests
in oil and gas sales $429,411 $502,424
Interest income 2,821 2,722
Gain (loss) on sale of net profits
and royalty interests in oil and
gas properties 86,293 ( 6,360)
-------- --------
$518,525 $498,786
COSTS AND EXPENSES:
Depletion of net profits and
royalty interests in oil and
gas properties $306,687 $524,987
General and administrative 56,071 69,301
-------- --------
$362,758 $594,288
-------- --------
NET INCOME (LOSS) $155,767 ($ 95,502)
======== ========
GENERAL PARTNER - NET INCOME $ 19,915 $ 16,224
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $135,852 ($111,726)
======== ========
NET INCOME (LOSS) per unit $ .72 ($ .59)
======== ========
UNITS OUTSTANDING 188,702 188,702
======== ========
The accompanying notes are an integral part of
these financial statements.
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GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
----------- -----------
REVENUES:
Net profits and royalty interests
in oil and gas sales $1,019,252 $ 918,547
Interest income 4,740 4,831
Gain on sale of net profits and
royalty interests in oil and
gas properties 91,064 12,952
---------- ----------
$1,115,056 $ 936,330
COSTS AND EXPENSES:
Depletion of net profits and
royalty interests in oil and
gas properties $ 638,476 $1,075,934
General and administrative 117,529 129,036
---------- ----------
$ 756,005 $1,204,970
---------- ----------
NET INCOME (LOSS) $ 359,051 ($ 268,640)
========== ==========
GENERAL PARTNER - NET INCOME $ 43,255 $ 29,605
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 315,796 ($ 298,245)
========== ==========
NET INCOME (LOSS) per unit $ 1.67 ($ 1.58)
========== ==========
UNITS OUTSTANDING 188,702 188,702
========== ==========
The accompanying notes are an integral part of
these financial statements.
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GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
--------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $359,051 ($ 268,640)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of net profits and
royalty interests in oil and
gas properties 638,476 1,075,934
Gain on sale of net profits and
royalty interests in oil and
gas properties ( 91,064) ( 12,952)
Increase in accounts receivable ( 117,415) ( 87,976)
-------- ----------
Net cash provided by operating
activities $789,048 $ 706,366
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($129,313) ($ 59,653)
Proceeds from sale of net profits
and royalty interests in oil and
gas properties 91,064 24,489
-------- ----------
Net cash used by investing activities ($ 38,249) ($ 35,164)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($657,347) ($ 610,000)
-------- ----------
Net cash used by financing activities ($657,347) ($ 610,000)
-------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 93,452 $ 61,202
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 270,118 282,045
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $363,570 $ 343,247
======== ==========
The accompanying notes are an integral part of
these financial statements.
-5-
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GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1996 1995
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 189,476 $ 208,319
Accounts receivable:
Net profits and royalty interests
in oil and gas sales 203,809 136,877
---------- ----------
Total current assets $ 393,285 $ 345,196
NET PROFITS AND ROYALTY INTERESTS IN
OIL AND GAS PROPERTIES, net,
utilizing the successful efforts
method 4,608,218 4,927,730
---------- ----------
$5,001,503 $5,272,926
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 39,106) ($ 20,601)
Limited Partners, issued and
outstanding, 116,168 units 5,040,609 5,293,527
---------- ----------
Total Partners' capital $5,001,503 $5,272,926
---------- ----------
$5,001,503 $5,272,926
========== ==========
The accompanying notes are an integral part of
these financial statements.
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GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
--------- ---------
REVENUES:
Net profits and royalty interests
in oil and gas sales $291,805 $375,922
Interest and other income 1,377 1,977
Gain (loss) on sale of net profits
and royalty interests in oil and
gas properties 27,697 ( 3,203)
-------- --------
$320,879 $374,696
COSTS AND EXPENSES:
Depletion of net profits and
royalty interests in oil and
gas properties $186,322 $373,402
General and administrative 34,643 42,085
-------- --------
$220,965 $415,487
-------- --------
NET INCOME (LOSS) $ 99,914 ($ 40,791)
======== ========
GENERAL PARTNER - NET INCOME $ 12,380 $ 12,897
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $ 87,534 ($ 53,688)
======== ========
NET INCOME (LOSS) per unit $ .75 ($ .46)
======== ========
UNITS OUTSTANDING 116,168 116,168
======== ========
The accompanying notes are an integral part of
these financial statements.
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GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
REVENUES:
Net profits and royalty interests
in oil and gas sales $629,079 $676,827
Interest and other income 2,834 3,378
Gain on sale of net profits and
royalty interests in oil and
gas properties 30,139 4,512
-------- --------
$662,052 $684,717
COSTS AND EXPENSES:
Depletion of net profits and
royalty interests in oil and
gas properties $372,912 $810,039
General and administrative 72,449 78,222
-------- --------
$445,361 $888,261
-------- --------
NET INCOME (LOSS) $216,691 ($203,544)
======== ========
GENERAL PARTNER - NET INCOME $ 25,609 $ 22,224
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $191,082 ($225,768)
======== ========
NET INCOME (LOSS) per unit $ 1.64 ($ 1.94)
======== ========
UNITS OUTSTANDING 116,168 116,168
======== ========
The accompanying notes are an integral part of
these financial statements.
-8-
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GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $216,691 ($203,544)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion of net profits and
royalty interests in oil and
gas properties 372,912 810,039
Gain on sale of net profits and
royalty interests in oil and
gas properties ( 30,139) ( 4,512)
Increase in accounts receivable ( 66,932) ( 25,474)
Decrease in accounts payable - ( 77,959)
-------- --------
Net cash provided by operating
activities $492,532 $498,550
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 69,864) ($ 37,870)
Proceeds from sale of net profits
and royalty interests in oil and
gas properties 46,603 13,378
-------- --------
Net cash used by investing activities ($ 23,261) ($ 24,492)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($488,114) ($425,500)
-------- --------
Net cash used by financing activities ($488,114) ($425,500)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 18,843) $ 48,558
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 208,319 198,756
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $189,476 $247,314
======== ========
The accompanying notes are an integral part of
these financial statements.
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GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME PROGRAM II PARTNERSHIPS
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 1996, statements of operations
for the six months ended June 30, 1996 and 1995 and the statements of
cash flows for the six months ended June 30, 1996 and 1995 have been
prepared by Geodyne Resources, Inc., the general partner (the "General
Partner") of the Geodyne Institutional/Pension Energy Income Program
II Limited Partnerships (individually, the "P-7 Partnership" or the
"P-8 Partnership", as the case may be, or, collectively, the
"Partnerships"), and are unaudited. In the opinion of management the
financial statements referred to above include all necessary
adjustments, consisting of normal recurring adjustments, to present
fairly the financial position at June 30, 1996, the results of
operations for the three and six months ended June 30, 1996 and 1995
and cash flows for the six months ended June 30, 1996 and 1995.
Information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. The
accompanying interim financial statements should be read in
conjunction with the Partnerships' Annual Report on Form 10-K filed
for the year ended December 31, 1995. The results of operations for
the period ended June 30, 1996 are not necessarily indicative of the
results to be expected for the full year.
The Limited Partners' net income or loss per unit is based upon
each $100 initial capital contribution.
NET PROFITS AND ROYALTY INTERESTS IN OIL AND GAS PROPERTIES
-----------------------------------------------------------
The Partnerships follow the successful efforts method of
accounting for their net profits and royalty interests in oil and gas
properties ("oil and gas properties"). Under the successful efforts
method, the Partnerships capitalize all acquisition costs. Property
acquisition costs include costs incurred by the Partnerships or the
General Partner to acquire a net profits interest or other non-
operating interest in producing properties, including related title
insurance or examination costs, commissions, engineering, legal and
accounting fees, and similar costs directly related to the
acquisitions. The acquisition cost to the Partnerships of net profits
and royalty interests in properties acquired by the General Partner is
adjusted to reflect the net cash results of operations, including
interest incurred to finance the acquisition, for the period of time
the properties are held by the General Partner prior to their transfer
to the Partnerships. Impairment of net profits and royalty interests
in oil and gas properties is recognized based upon an individual
property assessment.
Depletion of the costs of net profits and royalty interests in
producing oil and gas properties is computed on the unit-of-production
method.
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Effective October 1, 1995, the Partnerships adopted the
requirements of Statement of Financial Accounting Standards ("SFAS")
No. 121, "Accounting for the Impairment of Long Lived Assets and
Assets Held for Disposal. SFAS No. 121 provides that if the
unamortized costs of net profits and royalty interests in oil and gas
properties for each field exceed the expected undiscounted future cash
flows from such properties, the cost of the properties is written down
to fair value, which is determined by using the discounted future cash
flows from the properties. Under the Partnerships' prior impairment
policy if the unamortized costs of net profits and royalty interests
in oil and gas properties as a whole exceeded the estimated
undiscounted future net revenues of the properties, a valuation
allowance would be recorded for the excess amount. The risk that the
Partnerships will be required to record such impairment provisions in
the future increases when oil and gas prices are depressed.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' Partnership Agreements provide for
reimbursement to the General Partner for all direct general and
administrative expenses and for the general and administrative
overhead applicable to the Partnerships based on an allocation of
actual costs incurred by the General Partner. During the six months
ended June 30, 1996 the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------ --------------
P-7 $18,211 $99,318
P-8 11,309 61,140
An affiliated company is the operator of certain of the
Partnerships' properties and its policy is to bill the Partnerships
for all customary charges and cost reimbursements associated with its
activities, together with any compressor rental, consulting, or other
services provided.
The Partnerships receive Net Profits and Royalty Interests
distributions on a monthly basis from affiliated partnerships managed
by the General Partner. These distributions are reflected as Revenue,
"Net Profits and Royalty Interests in Oil and Gas Sales", in the
accompanying statements of operations. The Net Profits and Royalty
Interests Receivable represents amounts due from these affiliated
partnerships.
-11-
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Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
GENERAL
-------
The Partnerships were formed for the purpose of acquiring net
profits interests and royalty interests in producing oil and gas
properties located in the continental United States. In general, each
Partnership acquired passive interests in producing properties and
does not directly engage in development drilling or enhanced recovery
projects. Therefore, the economic life of each Partnership is limited
to the period of time required to fully produce its acquired oil and
gas reserves. A net profits interest in oil and gas properties
entitles the Partnerships to a portion of the oil and gas sales less
operating and production expenses and development costs generated by
the owner of the working interest in the oil and gas properties. The
net proceeds from the oil and gas operations are distributed to the
Limited Partners and General Partner in accordance with the terms of
the Partnerships' Partnership Agreements.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
The Partnerships began operations and investors were assigned
their rights as Limited Partners, having made capital contributions in
the amounts and on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
P-7 February 28, 1992 $18,870,200
P-8 February 28, 1992 11,616,800
In general, the amount of funds available for acquisition of
producing properties was equal to the capital contributions of the
Limited Partners, less 15% for sales commissions and organization and
management fees. The Partnerships have fully invested their capital
contributions.
Net proceeds from operations less necessary operating capital are
distributed to Limited Partners on a quarterly basis. Revenues and
net proceeds of a Partnership are largely dependent upon the volumes
of oil and gas sold and the prices received for such oil and gas.
Over the last several years, the domestic energy industry and the
Partnerships have contended with volatile, but generally low, oil and
gas prices. Over the last few years, the oil and gas market appears
to have moved from periods of relative stability in supply and demand
to excess supply or weakened demand. These trends have led to the
volatility in pricing and demand noted over the past years. While the
General Partner cannot predict future pricing trends, it believes the
working capital available as of June 30, 1996 and the net revenue
generated from future operations will provide sufficient working
capital to meet current and future obligations of the Partnerships.
-12-
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RESULTS OF OPERATIONS
---------------------
P-7 PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1995.
Three Months Ended June 30,
---------------------------
1996 1995
------- --------
Net profits and royalty interests
in oil and gas sales $429,411 $502,424
Barrels produced 33,354 33,219
Mcf produced 171,619 244,458
Average price/Bbl $ 19.64 $ 17.47
Average price/Mcf $ 1.98 $ 1.43
Total net profits and royalty interests in oil and gas sales
decreased $73,013 (14.5%) for the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995. Of this decrease,
(i) $144,221 was related to the decrease in the volumes of natural gas
sold and (ii) $139,401 was related to an increase in operating
expenses incurred by the owners of the underlying working interests,
partially offset by an increase of $206,537 related to increases in
the average prices of oil and natural gas sold. The increase in
operating expenses for the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995 was primarily due to
workover expenses incurred during the three months ended June 30, 1996
in order to improve the recovery of reserves on one well. Volumes of
oil sold increased by 135 barrels for the three months ended June 30,
1996 as compared to the three months ended June 30, 1995. Volumes of
natural gas sold decreased by 72,829 Mcf for the three months ended
June 30, 1996 as compared to the three months ended June 30, 1995.
The decrease in the volumes of natural gas sold for the three months
ended June 30, 1996 as compared to the three months ended June 30,
1995 was primarily due to (i) upward prior period volume adjustments
made by the purchaser on two wells during the three months ended June
30, 1995, (ii) normal production declines due to diminished natural
gas reserves on one significant well, and (iii) negative gas balancing
adjustments made by the purchaser on two significant wells during the
three months ended June 30, 1996. Average oil and natural gas prices
increased to $19.64 per barrel and $1.98 per Mcf, respectively, for
the three months ended June 30, 1996 from $17.47 per barrel and $1.43
per Mcf, respectively, for the three months ended June 30, 1995.
Depletion of net profits and royalty interests in oil and gas
properties decreased $218,300 for the three months ended June 30, 1996
as compared to the three months ended June 30, 1995. This decrease
was primarily due to upward revisions of previous reserve estimates at
December 31, 1995 and the decrease in the volumes of natural gas sold.
As a percentage of net profits and royalty interests in oil and gas
sales, this expense decreased to 71.4% for the three months ended June
30, 1996 from 104.5% for the three months ended June 30, 1995. This
decrease was primarily due to the reserve revisions discussed above
and the increases in the average prices of oil and natural gas sold
during the three months ended June 30, 1996 as compared to the three
months ended June 30, 1995.
General and administrative expenses decreased $13,230 for the
three months ended June 30, 1996 as compared to the three months ended
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June 30, 1995. This decrease was primarily due to decreases in
professional fees and printing and postage fees during the three
months ended June 30, 1996 as compared to the three months ended June
30, 1995. As a percentage of net profits and royalty interests in oil
and gas sales, these expenses remained relatively constant at 13.1%
for the three months ended June 30, 1996 compared to 13.8% for the
three months ended June 30, 1995.
SIX MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1995.
Six Months Ended June 30,
---------------------------
1996 1995
------- --------
Net profits and royalty interests
in oil and gas sales $1,019,252 $918,547
Barrels produced 70,580 68,242
Mcf produced 350,430 485,914
Average price/Bbl $ 18.93 $ 16.84
Average price/Mcf $ 1.90 $ 1.38
Total net profits and royalty interests in oil and gas sales
increased $100,705 (11.0%) for the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995. Of this increase, (i)
$395,301 was related to the increases in the average prices of oil and
natural gas sold and (ii) $44,258 was related to the increase in the
volumes of oil sold, partially offset by (i) a $257,420 decrease
related to the decrease in the volumes of natural gas sold and (ii) a
$71,302 decrease related to an increase in operating expenses incurred
by the owner of the underlying working interests. The increase in
operating expenses for the six months ended June 30, 1996 as compared
to the six months ended June 30, 1995 was primarily due to workover
expenses incurred during the six months ended June 30, 1996 in order
to improve the recovery of reserves on one well. Volumes of oil sold
increased by 2,338 barrels for the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995. Volumes of natural
gas sold decreased by 135,484 Mcf for the six months ended June 30,
1996 as compared to the six months ended June 30, 1995. The decrease
in the volumes of natural gas sold for the six months ended June 30,
1996 as compared to the six months ended June 30, 1995 was primarily
due to (i) normal production declines due to diminished natural gas
reserves on two significant wells and (ii) negative gas balancing
adjustments made by the purchaser on two wells during the six months
ended June 30, 1996. Average oil and natural gas prices increased to
$18.93 per barrel and $1.90 per Mcf, respectively, for the six months
ended June 30, 1996 from $16.84 per barrel and $1.38 per Mcf,
respectively, for the six months ended June 30, 1995.
Depletion of net profits and royalty interests in oil and gas
properties decreased $437,458 for the six months ended June 30, 1996
as compared to the six months ended June 30, 1995. This decrease was
primarily due to upward revisions of previous reserve estimates at
December 31, 1995 and the decrease in the volumes of natural gas sold.
As a percentage of net profits and royalty interests in oil and gas
sales, this expense decreased to 62.6% for the six months ended June
30, 1996 from 117.1% for the six months ended June 30, 1995. This
decrease was primarily due to the reserve revisions discussed above
and the increases in the average prices of oil and natural gas sold
during the six months ended June 30, 1996 as compared to the six
months ended June 30, 1995.
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General and administrative expenses decreased $11,507 for the six
months ended June 30, 1996 as compared to the six months ended June
30, 1995. This decrease was primarily due to decreases in
professional fees and printing and postage fees for the six months
ended June 30, 1996 as compared to the six months ended June 30, 1995.
As a percentage of net profits and royalty interests in oil and gas
sales, these expenses decreased to 11.5% for the six months ended June
30, 1996 from 14.0% for the six months ended June 30, 1995. This
percentage decrease was primarily due to the increases in the average
prices of oil and natural gas sold during the six months ended June
30, 1996 as compared to the six months ended June 30, 1995.
Cumulative cash distributions to the Limited Partners through
June 30, 1996 were $6,335,916 or 33.58% of Limited Partners' capital
contributions.
P-8 PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1995.
Three Months Ended June 30,
---------------------------
1996 1995
------- --------
Net profits and royalty interests
in oil and gas sales $291,805 $375,922
Barrels produced 20,149 19,985
Mcf produced 112,009 172,457
Average price/Bbl $ 19.66 $ 17.48
Average price/Mcf $ 2.10 $ 1.39
Total net profits and royalty interests in oil and gas sales
decreased $84,117 (22.4%) for the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995. Of this decrease
(i) $126,941 was related to the decrease in the volumes of natural gas
sold and (ii) $125,967 was related to the increase in operating
expenses incurred by the owner of the underlying working interests,
partially offset by an increase of $166,011 related to the increases
in the average prices of oil and natural gas sold. The increase in
operating expenses for the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995 was primarily due to
workover expenses incurred during the three months ended June 30, 1996
in order to improve the recovery of reserves on one well. Volumes of
oil sold increased by 164 barrels for the three months ended June 30,
1996 as compared to the three months ended June 30, 1995. Volumes of
natural gas sold decreased by 60,448 Mcf for the three months ended
June 30, 1996 as compared to the three months ended June 30, 1995.
The decrease in the volumes of natural gas sold for the three months
ended June 30, 1996 as compared to the three months ended June 30,
1995 was primarily due to (i) upward prior period volume adjustments
made by the purchaser on three wells during the three months ended
June 30, 1995, (ii) normal production declines due to diminished
natural gas reserves on three significant wells, and (iii) a downward
prior period volume adjustment made by the purchaser on one well
during the three months ended June 30, 1996. Average oil and natural
gas prices increased to $19.66 per barrel and $2.10 per Mcf,
respectively, for the three months ended June 30, 1996 from $17.48 per
barrel and $1.39 per Mcf, respectively, for the three months ended
June 30, 1995.
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<PAGE>
Depletion of net profits and royalty interests in oil and gas
properties decreased $187,080 for the three months ended June 30, 1996
as compared to the three months ended June 30, 1995. This decrease
was primarily due to upward revisions of previous reserve estimates at
December 31, 1995 and the decrease in the volumes of natural gas sold.
As a percentage of net profits and royalty interests in oil and gas
sales, this expense decreased to 63.9% for the three months ended June
30, 1996 from 99.3% for the three months ended June 30, 1995. This
decrease was primarily due to the reserve revisions discussed above
and the increases in the average prices of oil and natural gas sold
during the three months ended June 30, 1996 as compared to the three
months ended June 30, 1995.
General and administrative expenses decreased $7,442 for the
three months ended June 30, 1996 as compared to the three months ended
June 30, 1995. This decrease was primarily due to a decrease in
professional fees for the three months ended June 30, 1996 as compared
to the three months ended June 30, 1995. As a percentage of net
profits and royalty interests in oil and gas sales, these expenses
remained relatively constant at 11.9% for the three months ended June
30, 1996 compared to 11.2% for the three months ended June 30, 1995.
SIX MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1995.
Six Months Ended June 30,
---------------------------
1996 1995
------- --------
Net profits and royalty interests
in oil and gas sales $629,079 $676,827
Barrels produced 41,858 41,163
Mcf produced 214,994 347,911
Average price/Bbl $ 18.93 $ 16.81
Average price/Mcf $ 2.04 $ 1.38
Total net profits and royalty interests in oil and gas sales
decreased $47,748 (7.1%) for the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995. Of this decrease, (i)
$271,151 was related to the decrease in the volumes of natural gas
sold and (ii) $105,356 was related to the increase in operating
expenses incurred by the owner of the underlying working interests,
partially offset by (i) a $316,887 increase related to the increases
in the average prices of oil and natural gas sold and (ii) a $13,156
increase related to the increase in the volumes of oil sold. The
increase in operating expenses for the six months ended June 30, 1996
as compared to the six months ended June 30, 1995 was primarily due to
workover expenses incurred during the six months ended June 30, 1996
in order to improve the recovery of reserves on one well. Volumes of
oil sold increased by 695 barrels for the six months ended June 30,
1996 as compared to the six months ended June 30, 1995. Volumes of
natural gas sold decreased by 132,917 Mcf for the six months ended
June 30, 1996 as compared to the six months ended June 30, 1995. The
decrease in the volumes of natural gas sold for the six months ended
June 30, 1996 as compared to the six months ended June 30, 1995 was
primarily due to (i) normal production declines due to diminished
natural gas reserves on three significant wells and (ii) downward
prior period volume adjustments made by the purchaser on three wells
during the six months ended June 30, 1996. Average oil and natural
gas prices increased to $18.93 per barrel and $2.04 per Mcf,
respectively, for the six months ended June 30, 1996 from $16.81 per
barrel and $1.38 per Mcf, respectively, for the six months ended June
30, 1995.
-16-
<PAGE>
<PAGE>
Depletion of net profits and royalty interests in oil and gas
properties decreased $437,127 for the six months ended June 30, 1996
as compared to the six months ended June 30, 1995. This decrease was
primarily due to upward revisions of previous reserve estimates at
December 31, 1995 and the decrease in the volumes of natural gas sold.
As a percentage of net profits and royalty interests in oil and gas
sales, this expense decreased to 59.2% for the six months ended June
30, 1996 from 119.7% for the six months ended June 30, 1995. This
decrease was primarily due to the reserve revisions discussed above
and the increases in the average prices of oil and natural gas sold
during the six months ended June 30, 1996 as compared to the six
months ended June 30, 1995.
General and administrative expenses decreased $5,773 for the six
months ended June 30, 1996 as compared to the six months ended June
30, 1995. This decrease was primarily due to decreases in
professional fees and printing and postage fees during the six months
ended June 30, 1996 as compared to the six months ended June 30, 1995.
As a percentage of net profits and royalty interests in oil and gas
sales, these expenses remained relatively constant at 11.5% for the
six months ended June 30, 1996 compared to 11.6% for the six months
ended June 30, 1995.
Cumulative cash distributions to the Limited Partners through
June 30, 1996 were $3,873,583 or 33.34% of Limited Partners' capital
contributions.
-17-
<PAGE>
<PAGE>
PART II: OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27.1 Financial Data Schedule containing summary financial
information extracted from the P-7 Partnership's
financial statements as of June 30, 1996 and for the
six months ended June 30, 1996, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the P-8 Partnership's
financial statements as of June 30, 1996 and for the
six months ended June 30, 1996, filed herewith.
All other Exhibits are omitted as inapplicable.
(b) Reports on Form 8-K:
None
-18-
<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.
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME
LIMITED PARTNERSHIP P-7
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME
LIMITED PARTNERSHIP P-8
(Registrant)
By: GEODYNE RESOURCES, INC.
General Partner
Date: August 12, 1996 By: /s/Dennis R. Neill
----------------------------------------
(Signature)
Dennis R. Neill
President
Date: August 12, 1996 By: /s/Drew S. Phillips
----------------------------------------
(Signature)
Drew S. Phillips
Principal Accounting Officer
-19-
<PAGE>
<PAGE>
INDEX TO EXHIBITS
-----------------
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Geodyne Institutional/Pension
Energy Income Limited Partnership P-7's financial statements
as of June 30, 1996 and for the six months ended June 30,
1996, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the Geodyne Institutional/Pension
Energy Income Limited Partnership P-8's financial statements
as of June 30, 1996 and for the six months ended June 30,
1996, filed herewith.
All other Exhibits are omitted as inapplicable.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000888240
<NAME> GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LTD PSHP P-7
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 363,570
<SECURITIES> 0
<RECEIVABLES> 426,859
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 790,429
<PP&E> 16,229,401
<DEPRECIATION> 8,342,848
<TOTAL-ASSETS> 8,676,982
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 8,676,982
<TOTAL-LIABILITY-AND-EQUITY> 8,676,982
<SALES> 1,019,252
<TOTAL-REVENUES> 1,115,056
<CGS> 0
<TOTAL-COSTS> 756,005
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 359,051
<INCOME-TAX> 0
<INCOME-CONTINUING> 359,051
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 359,051
<EPS-PRIMARY> 1.67
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000888239
<NAME> GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LTD PSHP P-8
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 189,476
<SECURITIES> 0
<RECEIVABLES> 203,809
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 393,285
<PP&E> 10,028,498
<DEPRECIATION> 5,420,280
<TOTAL-ASSETS> 5,001,503
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 5,001,503
<TOTAL-LIABILITY-AND-EQUITY> 5,001,503
<SALES> 629,079
<TOTAL-REVENUES> 662,052
<CGS> 0
<TOTAL-COSTS> 445,361
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 216,691
<INCOME-TAX> 0
<INCOME-CONTINUING> 216,691
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 216,691
<EPS-PRIMARY> 1.64
<EPS-DILUTED> 0
</TABLE>
