-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Mp7feFDdetQYjXVOW93zgXkZfokIBMn3sz5G+E7k05I0JZW+PhOmHzXQc61MkdDm ibyw8ELVBRRuudOsQfy9/A== 0000950134-02-009702.txt : 20020813 0000950134-02-009702.hdr.sgml : 20020813 20020813142447 ACCESSION NUMBER: 0000950134-02-009702 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020630 FILED AS OF DATE: 20020813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEWBOURNE ENERGY PARTNERS 01-A LP CENTRAL INDEX KEY: 0001136529 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-57156 FILM NUMBER: 02729134 BUSINESS ADDRESS: STREET 1: PO BOX 7698 CITY: TYLER STATE: TX ZIP: 75711 BUSINESS PHONE: 9035612900 MAIL ADDRESS: STREET 1: PO BOX 7698 CITY: TYLER STATE: TX ZIP: 75711 10-Q 1 d98928e10vq.txt FORM 10-Q FOR QUARTER ENDED JUNE 30, 2002 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 June 30, 2002 or [ ] TRANSITION REPORT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to -------- -------- Commission File No. 333-57156 MEWBOURNE ENERGY PARTNERS 01-A, L.P. Delaware 75-2926279 - ------------------------- ------------------ (State or jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 3901 South Broadway, Tyler, Texas 75701 - ------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's Telephone Number, including area code:(903) 561-2900 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. [X] Yes [ ] No 1 MEWBOURNE ENERGY PARTNERS 01-A, L. P. INDEX Part I - Financial Information Page No. Item 1. Financial Statements Balance Sheets - 3 June 30, 2002 and December 31, 2001 Statements of Income (Loss) - 4 For the three months ended June 30, 2002 and 2001, the six months ended June 30, 2002 and the period from February 23, 2001 (date of inception) through June 30, 2001 Statements of Cash Flows - 5 For the six months ended June 30, 2002 and the period from February 23, 2001 (date of inception) through June 30, 2001 Statement of Changes In Partners' Capital - 6 For the six months ended June 30, 2002 Notes to Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Part II-Other Information Item 1. Legal Proceedings 10 Item 6. Exhibits and Reports on Form 8-K 10
2 MEWBOURNE ENERGY PARTNERS 01-A, L. P. Part I - Financial Information Item 1. Financial Statements BALANCE SHEETS June 30, 2002 and December 31, 2001
June 30, December 31, 2002 2001 ---------- ----------- (Unaudited) ASSETS Cash and cash equivalents $ 1,860,253 $ 4,976,657 ----------- ----------- Prepaid well cost 0 59,719 ----------- ----------- Accounts receivable, affiliate 704,698 128,812 ----------- ----------- Oil and gas properties at cost, full cost method 13,386,051 10,049,549 Less accumulated depreciation, depletion and amortization (5,106,464) (2,231,065) ----------- ----------- 8,279,587 7,818,484 ----------- ----------- Total assets $10,844,538 $12,983,672 =========== =========== LIABILITIES AND PARTNERS' CAPITAL Accounts payable, affiliate $ 239,013 $ 10,754 ----------- ----------- Partners' capital General partners 9,554,158 11,686,869 Limited partners 1,051,367 1,286,049 ----------- ---------- Total partners' capital 10,605,525 12,972,918 ----------- ---------- Total liabilities and partners' capital $10,844,538 $12,983,672 =========== ===========
The accompanying notes are an integral part of the financial statements. 3 MEWBOURNE ENERGY PARTNERS 01-A, L. P. STATEMENTS OF INCOME (LOSS) For the three months ended June 30, 2002 and 2001, the six months ended June 30, 2002 and the period from February 23, 2001 (date of inception) through June 30, 2001 (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, ------------------ ---------------- 2002 2001 2002 2001 ------- ------ ------ ----- Revenues: Oil and gas sales $1,141,537 $ 0 $1,528,443 $ 0 Interest income 9,729 0 29,309 0 ---------- ----- ---------- ---- 1,151,266 0 1,557,752 0 ---------- ----- ---------- ---- Expenses: Lease operating expense 68,731 0 119,380 0 Production taxes 90,638 0 122,074 0 Administrative and general expense 19,032 0 28,291 0 Depreciation, depletion and amortization 420,507 0 722,709 0 Cost ceiling write-down 0 0 2,152,691 0 --------- ---- --------- ---- 598,908 0 3,145,145 0 --------- ---- --------- ---- Net income (loss) $ 552,358 $ 0 $(1,587,393) $ 0 ========== ===== ============ ===== Allocation of net income (loss): General partners $ 497,602 $ 0 $(1,430,033) $ 0 ========== ===== ============ ===== Limited partners $ 54,756 $ 0 $ (157,360) $ 0 ========== ===== ============ ===== Basic and diluted net income (loss)per limited and general partner interest (15,000 outstanding) $ 36.82 $ 0 $ (105.83) $ 0 ========== ===== ============ =====
The accompanying notes are an integral part of the financial statements. 4 MEWBOURNE ENERGY PARTNERS 01-A, L. P. STATEMENTS OF CASH FLOWS For the six months ended June 30, 2002 and the period from February 23, 2001 (date of inception) through June 30, 2001 (Unaudited)
2002 2001 ------ ------ Cash flows from financing activities: Net loss $(1,587,393) $ 0 Adjustment to reconcile net loss to net cash provided by operating activities: Depreciation depletion and amortization 722,709 0 Cost ceiling write-down 2,152,691 0 Changes in operating assets and liabilities: Accounts receivables, affiliate (575,886) 0 Accounts payable, affiliate 228,259 0 --------- ------- Net cash provided by operating activities 940,380 0 --------- ------- Cash flows from investing activities: Purchase of oil and gas properties (3,276,784) 0 ----------- ------- Net cash used in investing activities (3,276,784) 0 ----------- ------- Cash flows from financing activities: Cash distributions to partners (780,000) 0 ----------- ------- Net cash used in financing activities (780,000) 0 ----------- ------- Net decrease in cash (3,116,404) 0 Cash and cash equivalents, beginning of period 4,976,657 0 ---------- ------- Cash and cash equivalents, end of period $1,860,253 $ 0 ========== =======
The accompanying notes are an integral part of the financial statements. 5 MEWBOURNE ENERGY PARTNERS 01-A, L. P. STATEMENT OF CHANGES IN PARTNERS' CAPITAL For the six months ended June 30,2002 (Unaudited)
General Limited Partners Partners Total ---------- ---------- --------- Balance at December 31, 2001 $11,686,869 $1,286,049 $12,972,918 Cash distributions (702,678) (77,322) (780,000) Net loss (1,430,033) (157,360) (1,587,393) ----------- ---------- ----------- Balance at June 30, 2002 $ 9,554,158 $1,051,367 $10,605,525 =========== ========== ===========
The accompanying notes are an integral part of the financial statements. 6 MEWBOURNE ENERGY PARTNERS 01-A, L.P. NOTES TO FINANCIAL STATEMENTS (Unaudited) 1. Accounting Policies Reference is hereby made to the Partnership's Annual Report on Form 10-K for 2001, which contains a summary of significant accounting policies followed by the partnership in the preparation of its financial statements. These policies are also followed in preparing the quarterly report included herein. In the opinion of management, the accompanying unaudited financial statements contain all adjustments of a normal recurring nature necessary to present fairly our financial position, results of operations, cash flows and partners' capital for the periods presented. The results of operations for the interim periods are not necessarily indicative of the final results expected for the full year. 2. Accounting for Oil and Gas Producing Activities Mewbourne Energy Partners 01-A, L.P., (the "Partnership"), a Delaware limited partnership formed on February 23, 2001, is engaged primarily in oil and gas development and production in Texas, Oklahoma, and New Mexico. The offering of limited and general partnership interests began June 12, 2001 as a part of an offering registered under the name Mewbourne Energy Partners 01-02 Drilling Programs and concluded August 28, 2001, with total investor contributions of $15,000,000. Since the Partnership was not funded until August 28, 2001, no business was conducted by the Partnership during the period February 23, 2001 (date of inception) though June 30, 2001, therefore, there are no items of income or expense for that reporting period. The Partnership follows the full-cost method of accounting for its oil and gas activities. Under the full-cost method, all productive and nonproductive costs incurred in the acquisition, exploration and development of oil and gas properties are capitalized. Depreciation, depletion and amortization of oil and gas properties subject to amortization is computed on the units-of-production method based on the proved reserves underlying the oil and gas properties. At June 30, 2002, substantially all capitalized costs were subject to amortization, while at December 31, 2001, approximately $5.7 million of capitalized cost were excluded from amortization. Gains and losses on the sale or other disposition of properties are not recognized unless such adjustments would significantly alter the relationship between capitalized costs and the proved oil and gas reserves. Capitalized costs are subject to a periodic ceiling test that limits such costs to the aggregate of the present value of future net cash flows of proved reserves and the lower of cost or fair value of unproved properties. 3. Comprehensive Income Total comprehensive income (loss) equals net income (loss) during each of the periods presented herein. 4. Recently Issued Accounting Standards In August 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 143 (FAS 143), Accounting for Asset Retirement Obligations. This statement changes financial accounting and reporting for obligations associated with the 7 retirement and disposal of long-lived assets and the associated asset retirement costs and is effective for the Partnership beginning January 1, 2003. The Partnership is currently evaluating the effect of adopting FAS 143. In August 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 144 (FAS 144), Accounting for the Impairment or Disposal of Long-Lived Assets. This statement changes financial accounting and reporting for the impairment or disposal of long-lived assets and was effective for the Partnership beginning January 1, 2002. The adoption of FAS 144 did not have a material impact on the Partnership. In June 2002, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 146 (FAS 146), Accounting for Costs Associated with Exit or Disposal Activities. This statement addresses financial accounting and reporting for costs associated with exit or disposal activities and is effective for the Partnership beginning January 1, 2003. The Partnership is currently evaluating the effect of adopting FAS 146. 8 Item 2 Managements's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Mewbourne Energy Partners 01-A, L.P. (the "Partnership")was formed February 23, 2001. The offering of limited and general partnership interests began on June 12, 2001 and concluded on August 28, 2001, with investor partner contributions of $15,000,000. The Partnership has acquired interests in oil and gas prospects for the purpose of development drilling. At June 30, 2002, 34 wells had been drilled and were productive and 7 wells were drilled and abandoned. Operations will be conducted with available funds and revenues generated from oil and gas activities. No bank borrowing is anticipated. The Partnership had net working capital at June 30, 2002 of $2,325,938. During the six months ended June 30, 2002, the Partnership made cash distributions to the investor partners in the amount of $780,000. The Partnership expects that cash distributions will increase during 2002 as additional oil and gas revenues are received. The sale of crude oil and natural gas produced by the Partnership will be affected by a number of factors which are beyond the Partnership's control. These factors include the price of crude oil and natural gas, the fluctuating supply of and demand for these products, competitive fuels, refining, transportation, extensive federal and state regulations governing the production and sale of crude oil and natural gas, and other competitive conditions. It is impossible to predict with any certainty the future effect of these factors on the Partnership. Results of Operations Revenues during the three months ended June 30, 2002 totaled $1,151,266, and consisted of oil and gas sales in the amount of $1,141,537 and interest income in the amount of $9,729. Production volumes during the period ended June 30, 2002 amounted to approximately 1,201 bbls of oil and 368,176 mcf of gas at corresponding average realized prices of $24.42 per bbl of oil and $3.02 per mcf of gas. Expenses totaling $598,908, consisting primarily of lease operating expense in the amount of $68,731, production taxes in the amount of $90,638, and depreciation, depletion and amortization in the amount of $420,507 resulted in a net income for the period of $552,358. Revenues during the six months ended June 30, 2002 totaled $1,557,752, and consisted of oil and gas sales in the amount of $1,528,443 and interest income in the amount of $29,309. Production volumes during the period ended June 30, 2002 amounted to approximately 1,455 bbls of oil and 569,248 mcf of gas at corresponding average realized prices of $23.32 per bbl of oil and $2.63 per mcf of gas. Expenses totaling $3,145,145, consisting primarily of lease operating expense in the amount of $119,380, production taxes in the amount of $122,074, depreciation, depletion and amortization in the amount of $722,709, and a cost ceiling write-down in the amount of $2,152,691 resulted in a net loss for the period of $1,587,393. The Partnership's oil and gas production should increase during the remainder of 2002 as additional wells are completed and oil and gas production is sold. Interest income should decrease in 2002 as the remaining wells are drilled and the available cash is utilized for the equipping of such wells. The Partnership expects that drilling and completion costs will decrease during 2002 and that production cost and depletion provisions will increase. 9 During the six months ended June 30, 2002, the Partnership made cash distributions to the investor partners in the amount of $780,000. The Partnership expects that cash distributions will increase during 2002 as additional oil and gas revenues are received. The Partnership's operations did not commence until the third quarter of 2001. No corresponding activities, therefore, occurred during the period February 23, 2001 (date of inception) through June 30, 2001. Recently Issued Accounting Standards In August 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 143 (FAS 143), Accounting for Asset Retirement Obligations. This statement changes financial accounting and reporting for obligations associated with the retirement and disposal of long-lived assets and the associated asset retirement costs and is effective for the Partnership beginning January 1, 2003. The Partnership is currently evaluating the effect of adopting FAS 143. In August 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 144 (FAS 144), Accounting for the Impairment or Disposal of Long-Lived Assets. This statement changes financial accounting and reporting for the impairment or disposal of long-lived assets and is effective for the Partnership beginning January 1, 2002. The adoption of FAS144 will not have a material impact on the Partnership. In June 2002, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 146 (FAS 146), Accounting for Costs Associated with Exit or Disposal Activities. This statement addresses financial accounting and reporting for costs associated with exit or disposal activities and is effective for the Partnership beginning January 1, 2003. The Partnership is currently evaluating the effect of adopting FAS 146. Part II - Other Information Item 1. Legal Proceedings None. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits - none (b) Reports on Form 8-K - none 10 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Partnership has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized. MEWBOURNE ENERGY PARTNERS 01-A, L.P. By: Mewbourne Development Corporation Managing General Partner Date: August 12, 2002 By: /s/ Alan Clark --------------------------- Alan Clark, Treasurer 11 -----END PRIVACY-ENHANCED MESSAGE-----