CONFORMED COPY
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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 and Exchange Act of 1934
For the period ended September 30, 1997
or
[ ] Transition Report Pursuant to Section 13 of 15(d) of
the Securities and Exchange Act of 1934
For the transition period from to
Commission file number 033-70568
I.R.S. Employer Identification Number 55-0737400
PDC 1994-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
103 East Main Street
Bridgeport, WV 26330
Telephone: (304) 842-6256
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 XX No
<PAGE>
PDC 1994-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
INDEX
PART I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheets September 30, 1997 and December 31, 1996 1
Statements of Operations -
Three Months and Nine Months Ended
September 30, 1997 and 1996 2
Statement of Partners' Equity -
Nine Months Ended September 30, 1997 3
Statements of Cash Flows -
Nine Months Ended September 30, 1997 and 1996 4
Notes to Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
PART II OTHER INFORMATION
Item 1. Legal Proceedings 7
Item 6. Exhibits and Reports on Form 8-K 7
<PAGE>
PDC 1994-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Balance Sheets
September 30, 1997 and December 31, 1996
<TABLE>
<S> <S> <S>
Assets 1997 1996
(unaudited)
Current assets:
Cash $ 1,195 $ 920
Accounts receivable - oil and gas revenues 137,234 195,829
Total current assets 138,429 196,749
Oil and gas properties,
successful efforts method
Oil and gas properties 7,174,936 7,174,936
Less accumulated depreciation, depletion,
and amortization 1,516,666 1,165,600
5,658,270 6,009,336
$5,796,699 $6,206,085
Current Liabilities and Partners' Equity
Current liabilities:
Accrued expenses $ 18,723 $ 36,277
Total current liabilities 18,723 36,277
Partners' equity 5,777,976 6,169,808
$5,796,699 $6,206,085
</TABLE>
See accompanying notes to financial statements.
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<PAGE>
PDC 1994-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statements of Operations
Three Months and Nine Months Ended September 30, 1997 and 1996
(Unaudited)
<TABLE>
<S> <S> <S> <S> <S>
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Revenues:
Sales of oil and gas $185,389 $ 209,173 $628,019 $875,752
Transportation revenue 476 917 927 2,799
Interest income 406 576 2,139 2,192
186,271 210,666 631,085 880,743
Expenses:
Lifting cost 50,989 67,564 138,200 191,587
Direct administrative cost 47 15 1,863 30
Depreciation, depletion and amortization 113,366 140,433 351,066 443,813
164,402 208,012 491,129 635,430
Net income $ 21,869 $ 2,654 $ 139,956 $245,313
Net income per limited and
additional general partner unit $ 50 $ 6 $ 309 $ 520
</TABLE>
See accompanying notes to financial statements.
-2-
<PAGE>
PDC 1994-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statement of Partners' Equity
Nine months ended September 30, 1997
(Unaudited)
<TABLE>
<S> <S> <S> <S>
Limited and
additional Managing
general partners general partner Total
Balance, December 31, 1996 $4,935,814 $1,233,994 $6,169,808
Net income 116,501 23,455 139,956
Distribution to partners (430,343) (101,445) (531,788)
Balance, September 30, 1997 $4,621,972 $1,156,004 $5,777,976
</TABLE>
See accompanying notes to financial statements.
-3-
<PAGE>
PDC 1994-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Statements of Cash Flows
Nine Months ended September 30, 1997 and 1996
(Unaudited)
<TABLE><S> <S> <S>
1997 1996
Cash flows from operating activities:
Net income $139,956 $245,313
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion, and amortization 351,066 443,813
Changes in operating assets and liabilities:
Increase (decrease) in accounts receivable
- oil and gas revenues 58,595 (7,767)
Decrease in accrued expenses (17,554) (23,012)
Net cash provided from
operating activities 532,063 658,347
Cash flows from financing activities:
Distributions to partners (531,788) (665,443)
Net cash used by
financing activities (531,788) (665,443)
Net increase (decrease) in cash 275 (7,096)
Cash at beginning of period 920 7,752
Cash at end of period $ 1,195 $ 656
</TABLE>
See accompanying notes to financial statements.
-4-
<PAGE>
PDC 1994-D LIMITED PARTNERSHIP
(A West Virginia Limited Partnership)
Notes to Financial Statements
(Unaudited)
1. Accounting Policies
Reference is hereby made to the Partnership's Annual Report on Form 10-K
for 1996, which contains a summary of major accounting policies followed by
the Partnership in the preparation of its financial statements. These
policies were also followed in preparing the quarterly report included
herein.
2. Basis of Presentation
The Management of the Partnership believes that all adjustments (consisting
of only normal recurring accruals) necessary to a fair statement of the
results of such periods have been made. The results of operations for the
nine months ended September 30, 1997 are not necessarily indicative of the
results to be expected for the full year.
3. Oil and Gas Properties
Oil and Gas Properties are reported on the successful efforts method.
-5-<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
The Partnership was funded on December 30, 1994 with initial Limited
and Additional General Partner contributions of $7,548,761 and the Managing
General Partner contributed $1,651,292. Offering, organization and legal
costs of $943,595 were incurred leaving available capital of $8,256,458 for
Partnership activities.
The Partnership began exploration and development activities
subsequent to the funding of the Partnership and completed well drilling
activities by March 31, 1995. Forty-two wells have been drilled, of which
thirty-eight have been completed as producing wells.
Operations will be conducted with available funds and revenues
generated from oil and gas activities. No bank borrowings are anticipated.
The Partnership had net working capital at September 30, 1997 of
$119,706.
The Partnership's revenues from oil and gas will be affected by
changes in prices. As a result of changes in federal regulations, gas
prices are highly dependent on the balance between supply and demand. The
Partnership's gas sales prices are subject to increase and decrease based
on various market sensitive indices.
Results of Operations
Three Months Ended September 30, 1997 Compared with 1996
Natural gas sales decreased approximately 11.4% during the third
quarter of 1997 compared with the same period in 1996 due to lower sales
volumes offset in part by higher average sales prices. While the
Partnership experienced a modest net income of $21,869, depreciation,
depletion and amortization is a non-cash expense and therefore the
Partnership distributed $117,802 to the partners during the third quarter
of 1997.
Nine Months Ended September 30, 1997 Compared with 1996
Natural gas sales decreasd approximately 28.3% during the first nine
months of 1997 compared with the same period in 1996 due to lower sales
volumes and lower average sales prices. While the Partnership experienced
a net income of $139,956, depreciation, depletion and amortization is a
non-cash expense and therefore the Partnership distributed $531,788 to the
partners during the first nine months of 1997.
-6-<PAGE>
CONFORMED COPY
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 6. Exhibits and Reports on Form 8-K
(a) None.
(b) No reports on Form 8-K have been filed during the quarter ended
September 30, 1997.
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.
PDC 1994-D Limited Partnership
(Registrant)
By its Managing General Partner
Petroleum Development Corporation
Date: November 4, 1997 /s/ Steven R. Williams
Steven R. Williams
President
Date: November 4, 1997 /s/ Dale G. Rettinger
Dale G. Rettinger
Executive Vice President
and Treasurer
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 1,195
<SECURITIES> 0
<RECEIVABLES> 137,234
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 138,429
<PP&E> 7,174,936
<DEPRECIATION> 1,516,666
<TOTAL-ASSETS> 5,796,699
<CURRENT-LIABILITIES> 18,723
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 5,796,699
<SALES> 628,019
<TOTAL-REVENUES> 631,085
<CGS> 138,200
<TOTAL-COSTS> 491,129
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 139,956
<INCOME-TAX> 0
<INCOME-CONTINUING> 139,956
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 139,956
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
