-----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, ELoS3s2hZSUEDI1Sh9UUYrN0wDipecMn8pXcpG5WT6g6fmO/DiqDFhWrgcxSlvdX Umlz95rXdLdWaN0xaHu7/w== /in/edgar/work/20000808/0000828191-00-000006/0000828191-00-000006.txt : 20000921 0000828191-00-000006.hdr.sgml : 20000921 ACCESSION NUMBER: 0000828191-00-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000808 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PARKER & PARSLEY 88 B L P CENTRAL INDEX KEY: 0000828191 STANDARD INDUSTRIAL CLASSIFICATION: [1311 ] IRS NUMBER: 752240121 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-17671 FILM NUMBER: 688029 BUSINESS ADDRESS: STREET 1: 303 W WALL STE 101 CITY: MIDLAND STATE: TX ZIP: 79701 BUSINESS PHONE: 9156834768 MAIL ADDRESS: STREET 1: 303 W WALL SUITE 101 CITY: MIDLAND STATE: TX ZIP: 79701 10-Q 1 0001.txt UNITED STATES 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 quarterly period ended June 30, 2000 Commission File No. 33-19659-02 PARKER & PARSLEY 88-B, L.P. (Exact name of Registrant as specified in its charter) Delaware 75-2240121 ------------------------------------------ --------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 1400 Williams Square West, 5205 N. O'Connor Blvd., Irving, Texas 75039 - ---------------------------------------------------------------- --------- (Address of principal executive offices) (Zip code) Registrant's Telephone Number, including area code : (972) 444-9001 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 / / PARKER & PARSLEY 88-B, L.P. TABLE OF CONTENTS Page Part I. Financial Information Item 1. Financial Statements Balance Sheets as of June 30, 2000 and December 31, 1999..................................... 3 Statements of Operations for the three and six months ended June 30, 2000 and 1999.................... 4 Statement of Partners' Capital for the six months ended June 30, 2000.................................... 5 Statements of Cash Flows for the six months ended June 30, 2000 and 1999................................. 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......................... 10 27.1 Financial Data Schedule Signatures............................................... 11 2 PARKER & PARSLEY 88-B, L.P. (A Delaware Limited Partnership) Part I. Financial Information Item 1. Financial Statements BALANCE SHEETS June 30, December 31, 2000 1999 ----------- ----------- (Unaudited) ASSETS Current assets: Cash $ 153,405 $ 129,430 Accounts receivable - oil and gas sales 148,381 138,030 ---------- ---------- Total current assets 301,786 267,460 ---------- ---------- Oil and gas properties - at cost, based on the successful efforts accounting method 7,134,510 7,129,071 Accumulated depletion (6,118,884) (6,083,367) ---------- ---------- Net oil and gas properties 1,015,626 1,045,704 ---------- ---------- $ 1,317,412 $ 1,313,164 ========== ========== LIABILITIES AND PARTNERS' CAPITAL Current liabilities: Accounts payable - affiliate $ 30,291 $ 21,245 Partners' capital: Managing general partner 12,840 12,888 Limited partners (8,954 interests) 1,274,281 1,279,031 ---------- ---------- 1,287,121 1,291,919 ---------- ---------- $ 1,317,412 $ 1,313,164 ========== ==========
The financial information included as of June 30, 2000 has been prepared by the managing general partner without audit by independent public accountants. The accompanying notes are an integral part of these financial statements. 3 PARKER & PARSLEY 88-B, L.P. (A Delaware Limited Partnership) STATEMENTS OF OPERATIONS (Unaudited) Three months ended Six months ended June 30, June 30, --------------------- --------------------- 2000 1999 2000 1999 --------- --------- --------- --------- Revenues: Oil and gas $ 302,734 $ 163,695 $ 591,346 $ 271,361 Interest 3,085 1,334 5,177 2,531 Gain on disposition of assets 8,845 - 8,845 - -------- -------- -------- -------- 314,664 165,029 605,368 273,892 -------- -------- -------- -------- Costs and expenses: Oil and gas production 114,842 86,811 205,053 168,666 General and administrative 8,802 4,911 17,740 8,141 Depletion 15,809 22,195 35,517 66,463 -------- -------- -------- -------- 139,453 113,917 258,310 243,270 -------- -------- -------- -------- Net income $ 175,211 $ 51,112 $ 347,058 $ 30,622 ======== ======== ======== ======== Allocation of net income: Managing general partner $ 1,753 $ 511 $ 3,471 $ 306 ======== ======== ======== ======== Limited partners $ 173,458 $ 50,601 $ 343,587 $ 30,316 ======== ======== ======== ======== Net income per limited partnership interest $ 19.37 $ 5.66 $ 38.37 $ 3.39 ======== ======== ======== ========
The financial information included herein has been prepared by the managing general partner without audit by independent public accountants. The accompanying notes are an integral part of these financial statements. 4 PARKER & PARSLEY 88-B, L.P. (A Delaware Limited Partnership) STATEMENT OF PARTNERS' CAPITAL (Unaudited) Managing general Limited partner partners Total --------- ---------- ---------- Balance at January 1, 2000 $ 12,888 $1,279,031 $1,291,919 Distributions (3,519) (348,337) (351,856) Net income 3,471 343,587 347,058 -------- --------- --------- Balance at June 30, 2000 $ 12,840 $1,274,281 $1,287,121 ======== ========= =========
The financial information included herein has been prepared by the managing general partner without audit by independent public accountants. The accompanying notes are an integral part of these financial statements. 5 PARKER & PARSLEY 88-B, L.P. (A Delaware Limited Partnership) STATEMENTS OF CASH FLOWS (Unaudited) Six months ended June 30, ------------------------ 2000 1999 ---------- ---------- Cash flows from operating activities: Net income $ 347,058 $ 30,622 Adjustments to reconcile net income to net cash provided by operating activities: Depletion 35,517 66,463 Gain on disposition of assets (8,845) - Changes in assets and liabilities: Accounts receivable (10,351) (34,044) Accounts payable 9,046 7,527 --------- --------- Net cash provided by operating activities 372,425 70,568 --------- --------- Cash flows from investing activities: Additions to oil and gas properties (5,439) (3,237) Proceeds from asset dispositions 8,845 11,382 --------- --------- Net cash provided by investing activities 3,406 8,145 --------- --------- Cash flows used in financing activities: Cash distributions to partners (351,856) (57,163) --------- --------- Net increase in cash 23,975 21,550 Cash at beginning of period 129,430 110,641 --------- --------- Cash at end of period $ 153,405 $ 132,191 ========= =========
The financial information included herein has been prepared by the managing general partner without audit by independent public accountants. The accompanying notes are an integral part of these financial statements. 6 PARKER & PARSLEY 88-B, L.P. (A Delaware Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 2000 (Unaudited) Note 1. Organization and nature of operations Parker & Parsley 88-B, L.P. (the "Partnership") is a limited partnership organized in 1988 under the laws of the State of Delaware. The Partnership engages 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 of the Partnership as of June 30, 2000 and for the three and six months ended June 30, 2000 and 1999 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. These interim results are not necessarily indicative of results for a full year. Certain reclassifications may have been made to the June 30, 1999 financial statements to conform to the June 30, 2000 financial statement presentations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission. 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, 1999, as filed with the Securities and Exchange Commission, a copy of which is available upon request by writing to Rich Dealy, Vice President and Chief Accounting Officer, 5205 North O'Connor Boulevard, 1400 Williams Square West, Irving, Texas 75039-3746. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (1) Results of Operations Six months ended June 30, 2000 compared with six months ended June 30, 1999 Revenues: The Partnership's oil and gas revenues increased 118% to $591,346 for the six months ended June 30, 2000 as compared to $271,361 for the same period in 1999. The increase in revenues resulted from higher average prices received and an increase in production. For the six months ended June 30, 2000, 16,511 barrels of oil, 6,423 barrels of natural gas liquids ("NGLs") and 26,695 mcf of gas were 7 sold, or 27,383 barrel of oil equivalents ("BOEs"). For the six months ended June 30, 1999, 13,613 barrels of oil, 6,704 barrels of NGLs and 27,934 mcf of gas were sold, or 24,973 BOEs. The average price received per barrel of oil increased $13.76, or 105%, from $13.15 for the six months ended June 30, 1999 to $26.91 for the same period in 2000. The average price received per barrel of NGLs increased $6.53, or 86%, from $7.55 during the six months ended June 30, 1999 to $14.08 for the same period in 2000. The average price received per mcf of gas increased 42% from $1.49 during the six months ended June 30, 1999 to $2.12 for the same period in 2000. 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 six months ended June 30, 2000. The volatility of commodity prices has had, and continues to have, a significant impact on the Partnership's revenues and operating cash flow and could result in additional decreases to the carrying value of the Partnership's oil and gas properties. Gain on disposition of assets of $8,845 was recognized during the six months ended June 30, 2000 resulting from equipment credits received on one fully depleted well. Costs and Expenses: Total costs and expenses increased to $258,310 for the six months ended June 30, 2000 as compared to $243,270 for the same period in 1999, an increase of $15,040, or 6%. This increase was due to increases in production costs and general and administrative expenses ("G&A"), offset by a decline in depletion. Production costs were $205,053 for the six months ended June 30, 2000 and $168,666 for the same period in 1999 resulting in a $36,387 increase, or 22%. This increase was the result of higher production taxes due to higher oil and gas prices and additional well maintenance costs incurred to stimulate well production. 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, 118% from $8,141 for the six months ended June 30, 1999 to $17,740 for the same period in 2000 primarily due to a higher allocation of the managing general partner's G&A being allocated (limited to 3% of oil and gas revenues) as a result of increased oil and gas revenues. Depletion was $35,517 for the six months ended June 30, 2000 compared to $66,463 for the same period in 1999, a decrease of $30,946, or 47%. This decrease was due to an increase in proved reserves during the period ended June 30, 2000 due to higher commodity prices, offset by an increase in oil production of 2,898 barrels for the six months ended June 30, 2000 compared to the same period in 1999. 8 Three months ended June 30, 2000 compared with three months ended June 30, 1999 Revenues: The Partnership's oil and gas revenues increased 85% to $302,734 for the three months ended June 30, 2000 as compared to $163,695 for the same period in 1999. The increase in revenues resulted from higher average prices received. For the three months ended June 30, 2000, 8,275 barrels of oil, 3,156 barrels of NGLs and 12,676 mcf of gas were sold, or 13,544 BOEs. For the three months ended June 30, 1999, 6,781 barrels of oil, 4,124 barrels of NGLs and 16,108 mcf of gas were sold, or 13,590 BOEs. The average price received per barrel of oil increased $12.52, or 84%, from $14.90 for the three months ended June 30, 1999 to $27.42 for the same period in 2000. The average price received per barrel of NGLs increased $4.99, or 57%, from $8.82 during the three months ended June 30,1999 to $13.81 for the same period in 2000. The average price received per mcf of gas increased 56% from $1.63 during the three months ended June 30, 1999 to $2.55 for the same period in 2000. Gain on disposition of assets of $8,845 was recognized during the three months ended June 30, 2000 from equipment credits received on one fully depleted well. Costs and Expenses: Total costs and expenses increased to $139,453 for the three months ended June 30, 2000 as compared to $113,917 for the same period in 1999, an increase of $25,536, or 22%. This increase was due to increases in production costs and G&A, offset by a decline in depletion. Production costs were $114,842 for the three months ended June 30, 2000 and $86,811 for the same period in 1999 resulting in a $28,031 increase, or 32%. The increase was due to additional well maintenance costs incurred to stimulate well production and higher production taxes due to higher oil and gas prices. During this period, G&A increased, in aggregate, 79% from $4,911 for the three months ended June 30, 1999 to $8,802 for the same period in 2000 primarily due to a higher allocation of the managing general partner's G&A being allocated (limited to 3% of oil and gas revenues) as a result of increased oil and gas revenues. Depletion was $15,809 for the three months ended June 30, 2000 compared to $22,195 for the same period in 1999, a decrease of $6,386, or 29%. This decrease was attributable to an increase in proved reserves during the period ended June 30, 2000 due to higher commodity prices, offset by an increase in oil production of 1,494 barrels for the three months ended June 30, 2000 compared to the same period in 1999. 9 Liquidity and Capital Resources Net Cash Provided by Operating Activities Net cash provided by operating activities increased $301,857 during the six months ended June 30, 2000 from the same period ended June 30, 1999. This increase was primarily due to an increase in oil and gas sales receipts of $346,324, offset by increases in operating costs paid of $37,299 and G&A expenses paid of $7,168. Net Cash Provided by Investing Activities The Partnership's principal investing activities during the six months ended June 30, 2000 and 1999 were for equipment upgrades on various oil and gas properties. Proceeds of $8,845 recognized during the six months ended June 30, 2000 were from equipment credits on one fully depleted well and $11,382 for the same period in 1999 were due to equipment credits on active properties. Net Cash Used in Financing Activities For the six months ended June 30, 2000, cash distributions to the partners were $351,856, of which $3,519 was distributed to the managing general partner and $348,337 to the limited partners. For the same period ended June 30, 1999, cash distributions to the partners were $57,163, of which $572 was distributed to the managing general partner and $56,591 to the limited partners. - --------------- (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 27.1 Financial Data Schedule (b) Reports on Form 8-K - none 10 PARKER & PARSLEY 88-B, 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 88-B, L.P. By: Pioneer Natural Resources USA, Inc., Managing General Partner Dated: August 8, 2000 By: /s/ Rich Dealy ------------------------------- Rich Dealy, Vice President and Chief Accounting Officer 11 EX-27 2 0002.txt
5 0000828191 88B 1 6-MOS DEC-31-2000 JUN-30-2000 153,405 0 148,381 0 0 301,786 7,134,510 6,118,884 1,317,412 30,291 0 0 0 0 1,287,121 1,317,412 591,346 605,368 0 258,310 0 0 0 347,058 0 347,058 0 0 0 347,058 38.37 0
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