-----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, WyFPE1WXtd/R3hYDuppuvIr59iVzaNZJzohYO8+GTlh1EZFdX+Iy250pS9JeCl2f 6vR/USw4SU7rUU4sekwkDQ== 0000828191-96-000005.txt : 19960619 0000828191-96-000005.hdr.sgml : 19960619 ACCESSION NUMBER: 0000828191-96-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960514 SROS: NONE 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: 1934 Act SEC FILE NUMBER: 000-17671 FILM NUMBER: 96562216 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 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 March 31, 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 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) 303 West Wall, Suite 101, Midland, Texas 79701 (Address of principal executive offices) (Zip code) Registrant's Telephone Number, including area code : (915) 683-4768 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 / / Page 1 of 10 pages. -There are no exhibits- PARKER & PARSLEY 88-B, L.P. (A Delaware Limited Partnership) Part I. Financial Information Item 1. Financial Statements BALANCE SHEETS March 31, December 31, 1996 1995 ----------- ----------- (Unaudited) ASSETS Current assets: Cash and cash equivalents, including interest bearing deposits of $114,274 at March 31 and $125,830 at December 31 $ 114,774 $ 126,330 Accounts receivable - oil and gas sales 115,693 104,938 ---------- ---------- Total current assets 230,467 231,268 Oil and gas properties - at cost, based on the successful efforts accounting method 7,115,661 7,114,609 Accumulated depletion (4,431,659) (4,375,388) ---------- ---------- Net oil and gas properties 2,684,002 2,739,221 ---------- ---------- $ 2,914,469 $ 2,970,489 ========== ========== LIABILITIES AND PARTNERS' CAPITAL Current liabilities: Accounts payable - affiliate $ 31,847 $ 52,562 Partners' capital: Limited partners (8,954 interests) 2,853,827 2,888,779 Managing general partner 28,795 29,148 ---------- ---------- 2,882,622 2,917,927 ---------- ---------- $ 2,914,469 $ 2,970,489 ========== ========== The financial information included herein has been prepared by management without audit by independent public accountants. The accompanying notes are an integral part of these financial statements. 2 PARKER & PARSLEY 88-B, L.P. (A Delaware Limited Partnership) STATEMENTS OF OPERATIONS (Unaudited) Three months ended March 31, 1996 1995 ---------- ---------- Revenues: Oil and gas sales $ 231,746 $ 239,038 Interest income 1,612 1,695 --------- --------- Total revenues 233,358 240,733 Costs and expenses: Production costs 100,430 112,356 General and administrative expenses 6,952 7,171 Depletion 56,271 92,172 --------- --------- Total costs and expenses 163,653 211,699 --------- --------- Net income $ 69,705 $ 29,034 ========= ========= Allocation of net income: Managing general partner $ 697 $ 290 ========= ========= Limited partners $ 69,008 $ 28,744 ========= ========= Net income per limited partnership interest $ 7.71 $ 3.21 ========= ========= Distributions per limited partnership interest $ 11.61 $ 13.80 ========= ========= The financial information included herein has been prepared by management 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 PARTNERS' CAPITAL (Unaudited) Managing general Limited partner partners Total ----------- ----------- ----------- Balance at January 1, 1995 $ 37,530 $ 3,718,508 $ 3,756,038 Distributions (1,248) (123,563) (124,811) Net income 290 28,744 29,034 ---------- ---------- ---------- Balance at March 31, 1995 $ 36,572 $ 3,623,689 $ 3,660,261 ========== ========== ========== Balance at January 1, 1996 $ 29,148 $ 2,888,779 $ 2,917,927 Distributions (1,050) (103,960) (105,010) Net income 697 69,008 69,705 ---------- ---------- ---------- Balance at March 31, 1996 $ 28,795 $ 2,853,827 $ 2,882,622 ========== ========== ========== The financial information included herein has been prepared by management 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) STATEMENTS OF CASH FLOWS (Unaudited) Three months ended March 31, 1996 1995 ---------- ---------- Cash flows from operating activities: Net income $ 69,705 $ 29,034 Adjustments to reconcile net income to net cash provided by operating activities: Depletion 56,271 92,172 Changes in assets and liabilities: Increase in accounts receivable (10,755) (4,484) Increase (decrease) in accounts payable (19,954) 10,675 --------- --------- Net cash provided by operating activities 95,267 127,397 Cash flows from investing activities: Additions to oil and gas properties (1,813) (4,771) Cash flows from financing activities: Cash distributions to partners (105,010) (124,811) ---------- --------- Net decrease in cash and cash equivalents (11,556) (2,185) Cash and cash equivalents at beginning of period 126,330 99,212 ---------- --------- Cash and cash equivalents at end of period $ 114,774 $ 97,027 ========== ========= The financial information included herein has been prepared by management 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) NOTES TO FINANCIAL STATEMENTS March 31, 1996 (Unaudited) NOTE 1. Parker & Parsley 88-B, L.P. (the "Registrant") is a limited partnership organized in 1988 under the laws of the State of Delaware. The Registrant engages primarily in oil and gas development and production in Texas and is not involved in any industry segment other than oil and gas. NOTE 2. In the opinion of management, the unaudited financial statements as of March 31, 1996 of the Registrant 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. However, these interim results are not necessarily indicative of results for a full year. The financial statements should be read in conjunction with the financial statements and the notes thereto contained in the Registrant's Report on Form 10-K for the year ended December 31, 1995, as filed with the Securities and Exchange Commission, a copy of which is available upon request by writing to Steven L. Beal, Senior Vice President, 303 West Wall, Suite 101, Midland, Texas 79701. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations(1) The Registrant was formed November 18, 1988. On January 1, 1995, Parker & Parsley Development L.P. ("PPDLP"), a Texas limited partnership, became the sole managing general partner of the Registrant, by acquiring the rights and assuming the obligations of Parker & Parsley Development Company ("PPDC"). PPDLP acquired PPDC's rights and obligations as managing general partner of the Registrant in connection with the merger of PPDC, P&P Producing, Inc. and Spraberry Development Corporation into MidPar L.P., which survived the merger with a change of name to PPDLP. PPDLP has the power and authority to manage, control and administer all Registrant affairs. The limited partners contributed $8,954,000 representing 8,954 interests ($1,000 per interest) sold to a total of 715 limited partners. Since its formation, the Registrant invested $7,300,938 in various prospects that were drilled in Texas. One well was plugged and abandoned during 1992. At March 31, 1996, the Registrant had 42 producing oil and gas wells. 6 Results of Operations Revenues: The Registrant's oil and gas revenues decreased to $231,746 from $239,038 for the three months ended March 31, 1996 and 1995, respectively, a decrease of 3%. The decrease in revenues resulted from a 12% decline in barrels of oil produced and sold and a 16% decline in mcf of gas produced and sold, offset by an 11% increase in the average price received per barrel of oil and a 15% increase in the average price received per mcf of gas. For the three months ended March 31, 1996, 9,395 barrels of oil were sold compared to 10,697 for the same period in 1995, a decrease of 1,302 barrels. For the three months ended March 31, 1996, 24,278 mcf of gas were sold compared to 28,770 for the same period in 1995, a decrease of 4,492 mcf. The volume decreases are primarily due to the decline characteristics of the Registrant's oil and gas properties. Because of these characteristics, management expects a certain amount of decline in production to continue in the future until the Registrant's economically recoverable reserves are fully depleted. The average price received per barrel of oil increased $1.81 from $17.16 for the three months ended March 31, 1995 to $18.97 for the same period in 1996, while the average price received per mcf of gas increased from $1.93 during the three months ended March 31, 1995 to $2.21 in 1996. 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 Registrant may therefore sell its future oil and gas production at average prices lower or higher than that received during the three months ended March 31, 1996. Costs and Expenses: Total costs and expenses decreased to $163,653 for the three months ended March 31, 1996 as compared to $211,699 for the same period in 1995, a decrease of $48,046, or 23%. The decrease was due to declines in production costs, general and administrative expenses ("G&A") and depletion. Production costs were $100,430 for the three months ended March 31, 1996 and $112,356 for the same period in 1995, resulting in a $11,926 decrease, or 11%. The decrease was primarily due to a decline in well repair and maintenance costs and ad valorem taxes. G&A's components are independent accounting and engineering fees, computer services, postage and managing general partner personnel costs. During this period, G&A decreased, in aggregate, 3% from $7,171 for the three months ended March 31, 1995 to $6,952 for the same period in 1996. The Partnership agreement limits G&A to 3% of gross oil and gas revenues. Depletion was $56,271 for the three months ended March 31, 1996 compared to $92,172 for the same period in 1995. This represented a decrease in depletion of $35,901, or 39%, primarily attributable to the adoption of the provisions of Statement of Financial Accounting Standards No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of" effective for the fourth quarter of 1995 and the reduction of net depletable basis resulting from the charge taken upon such adoption. Depletion was computed 7 property-by-property utilizing the unit-of-production method based upon the dominant mineral produced, generally oil. Oil production decreased 1,302 barrels for the three months ended March 31, 1996 from the same period in 1995, while oil reserves of barrels were revised upward by 22,324 barrels, or 4%. Liquidity and Capital Resources Net Cash Provided by Operating Activities Net cash provided by operating activities decreased to $95,267 during the three months ended March 31, 1996, a $32,130, or 25%, decrease from the same period ended March 31, 1995. This decrease was due to an increase in expenditures for production costs and a decrease in oil and gas sales receipts. The increase in production cost expenditures was due to additional well repair and maintenance costs. The decrease in oil and gas sales receipts was due to declines in barrels of oil and mcf of gas produced and sold. Net Cash Used in Investing Activities The Registrant's principal investing activities during the three months ended March 31, 1996 were for repair and maintenance activity on various oil and gas properties. Net Cash Used in Financing Activities Cash was sufficient for the three months ended March 31, 1996 to cover distributions to the partners of $105,010 of which $103,960 was distributed to the limited partners and $1,050 to the managing general partner. For the same period ended March 31, 1995, cash was sufficient for distributions to the partners of $124,811 of which $123,563 was distributed to the limited partners and $1,248 to the managing general partner. It is expected that future net cash provided by operating activities will be sufficient for any capital expenditures and any distributions. As the production from the properties declines, distributions are also expected to decrease. - - --------------- (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. 8 Part II. Other Information Item 6. Exhibits and Reports on Form 8-K (a) Exhibits - none (b) Reports on Form 8-K - none 9 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: Parker & Parsley Development L.P., Managing General Partner By: Parker & Parsley Petroleum USA, Inc. ("PPUSA"), General Partner Dated: May 13, 1996 By: /s/ Steven L. Beal ---------------------------------------- Steven L. Beal, Senior Vice President and Chief Financial Officer of PPUSA 10 EX-27 2
5 0000828191 88B.TXT 3-MOS DEC-31-1996 MAR-31-1996 114,774 0 115,693 0 0 230,467 7,115,661 4,431,659 2,914,469 31,847 0 0 0 0 2,882,622 2,914,469 231,746 233,358 0 163,653 0 0 0 69,705 0 69,705 0 0 0 69,705 7.71 0
-----END PRIVACY-ENHANCED MESSAGE-----