-----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, Ri9dlmZw44pls9YRPEMmR/am54e1W0BPQ88H51JpU17iLCVM6KTbc4EWH//j84DG kiL1KjW7XK6m1YanXO+g3w== 0000828191-97-000007.txt : 19970811 0000828191-97-000007.hdr.sgml : 19970811 ACCESSION NUMBER: 0000828191-97-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970808 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PARKER & PARSLEY 88 B L P CENTRAL INDEX KEY: 0000828191 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [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: 97653482 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 June 30, 1997 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 11 pages. Exhibit index on page 10. PARKER & PARSLEY 88-B, L.P. TABLE OF CONTENTS Page ---- Part I. Financial Information Item 1. Financial Statements Balance Sheets as of June 30, 1997 and December 31, 1996 ...................................... 3 Statements of Operations for the three and six months ended June 30, 1997 and 1996........................ 4 Statement of Partners' Capital for the six months ended June 30, 1997........................................ 5 Statements of Cash Flows for the six months ended June 30, 1997 and 1996..................................... 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. 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, 1997 1996 ----------- ----------- (Unaudited) ASSETS Current assets: Cash and cash equivalents, including interest bearings deposits of $158,650 at June 30 and $106,356 at December 31 $ 159,050 $ 106,856 Accounts receivable - oil and gas sales 108,767 210,757 ---------- ---------- Total current assets 267,817 317,613 ---------- ---------- Oil and gas properties - at cost, based on the successful efforts accounting method 7,111,898 7,107,384 Accumulated depletion (4,670,161) (4,576,529) ---------- ---------- Net oil and gas properties 2,441,737 2,530,855 ---------- ---------- $ 2,709,554 $ 2,848,468 ========== ========== LIABILITIES AND PARTNERS' CAPITAL Current liabilities: Accounts payable - affiliate $ 29,068 $ 22,500 Partners' capital: Managing general partner 26,773 28,229 Limited partners (8,954 interests) 2,653,713 2,797,739 ---------- ---------- 2,680,486 2,825,968 ---------- ---------- $ 2,709,554 $ 2,848,468 ========== ========== The financial information included as of June 30, 1997 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 OPERATIONS (Unaudited) Three months ended Six months ended June 30, June 30, --------------------- --------------------- 1997 1996 1997 1996 --------- --------- --------- --------- Revenues: Oil and gas $ 208,414 $ 251,186 $ 438,420 $ 482,932 Interest 2,475 1,960 4,538 3,572 -------- -------- -------- -------- 210,889 253,146 442,958 486,504 -------- -------- -------- -------- Costs and expenses: Oil and gas production 103,549 96,860 205,440 197,290 General and administrative 6,154 7,536 13,253 14,488 Depletion 48,558 53,911 93,632 110,182 Loss on abandoned property - 951 - 951 Abandoned property - 331 - 331 -------- -------- -------- -------- 158,261 159,589 312,325 323,242 -------- -------- -------- -------- Net income $ 52,628 $ 93,557 $ 130,633 $ 163,262 ======== ======== ======== ======== Allocation of net income: Managing general partner $ 526 $ 935 $ 1,306 $ 1,632 ======== ======== ======== ======== Limited partners $ 52,102 $ 92,622 $ 129,327 $ 161,630 ======== ======== ======== ======== Net income per limited partnership interest $ 5.82 $ 10.34 $ 14.44 $ 18.05 ======== ======== ======== ======== Distributions per limited partnership interest $ 13.82 $ 13.80 $ 30.53 $ 25.41 ======== ======== ======== ======== 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) STATEMENT OF PARTNERS' CAPITAL (Unaudited) Managing general Limited partner partners Total --------- ---------- ---------- Balance at January 1, 1997 $ 28,229 $2,797,739 $2,825,968 Distributions (2,762) (273,353) (276,115) Net income 1,306 129,327 130,633 -------- --------- --------- Balance at June 30, 1997 $ 26,773 $2,653,713 $2,680,486 ======== ========= ========= 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) STATEMENTS OF CASH FLOWS (Unaudited) Six months ended June 30, ------------------------ 1997 1996 ---------- ---------- Cash flows from operating activities: Net income $ 130,633 $ 163,262 Adjustments to reconcile net income to net cash provided by operating activities: Depletion 93,632 110,182 Loss on abandoned property - 951 Changes in assets and liabilities: (Increase) decrease in accounts receivable 101,990 (12,447) Increase (decrease) in accounts payable 6,568 (13,109) --------- --------- Net cash provided by operating activities 332,823 248,839 --------- --------- Cash flows from investing activities: Additions to oil and gas properties (4,514) (2,071) Proceeds from equipment salvage on abandoned property - 42 --------- --------- Net cash used in investing activities (4,514) (2,029) --------- --------- Cash flows from financing activities: Cash distributions to partners (276,115) (229,819) --------- --------- Net increase in cash and cash equivalents 52,194 16,991 Cash and cash equivalents at beginning of period 106,856 126,330 --------- --------- Cash and cash equivalents at end of period $ 159,050 $ 143,321 ========= ========= 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. 6 PARKER & PARSLEY 88-B, L.P. (A Delaware Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 1997 (Unaudited) Note 1. Basis of presentation In the opinion of management, the unaudited financial statements of Parker & Parsley 88-B, L.P. (the "Partnership") as of June 30, 1997 and for the three and six months ended June 30, 1997 and 1996 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 information and footnote disclosure 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, 1996, as filed with the Securities and Exchange Commission, a copy of which is available upon request by writing to Rich Dealy, Controller, 303 West Wall, Suite 101, Midland, Texas 79701. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (1) Results of Operations Six months ended June 30, 1997 compared with six months ended June 30, 1996 Revenues: The Partnership's oil and gas revenues decreased 9% to $438,420 from $482,932 for the six months ended June 30, 1997 as compared to the six months ended June 30, 1996. The decrease in revenues resulted from a 13% decrease in mcf of gas produced and sold, an 11% decrease in barrels of oil produced and sold and a lower average price received per barrel of oil, offset by a higher average price received per mcf of gas. For the six months ended June 30, 1997, 16,275 barrels of oil were sold compared to 18,337 for the same period in 1996, a decrease of 2,062 barrels. For the six months ended June 30, 1997, 42,074 mcf of gas were sold compared to 48,232 for the same period in 1996, a decrease of 6,158 mcf. The volume decreases were primarily due to the decline characteristics of the Partnership'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 Partnership's economically recoverable reserves are fully depleted. 7 The average price received per barrel of oil decreased slightly from $20.27 for the six months ended June 30, 1996 to $20.19 for the same period in 1997, while the average price received per mcf of gas increased 13% from $2.31 during the six months ended June 30, 1996 to $2.61 in 1997. 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, 1997. Costs and Expenses: Total costs and expenses decreased to $312,325 for the six months ended June 30, 1997 as compared to $323,242 for the same period in 1996, a decrease of $10,917, or 3%. This decrease was due to declines in depletion, general and administrative expenses ("G&A"), loss on abandoned property and abandoned property costs, offset by an increase in production costs. Production costs were $205,440 for the six months ended June 30, 1997 and $197,290 for the same period in 1996 resulting in a $8,150 increase, or 4%. The increase was due to an increase in well repair and maintenance costs and workover expenses incurred in an effort to stimulate well production, offset by declines in ad valorem taxes and production taxes. G&A's components are independent accounting and engineering fees and managing general partner personnel and operating costs. During this period, G&A decreased, in aggregate, 9% from $14,488 for the six months ended June 30, 1996 to $13,253 for the same period in 1997. Depletion was $93,632 for the six months ended June 30, 1997 compared to $110,182 for the same period in 1996. This represented a decrease in depletion of $16,550, or 15%, primarily attributable to a decline in oil production of 2,062 barrels for the six months ended June 30, 1997 from the same period in 1996. A loss on abandoned property of $951 was recognized during the six months ended June 30, 1996. This loss resulted from the abandonment of a saltwater disposal well. Abandoned property costs incurred on this well totaled $331 for the six months ended June 30, 1996. Three months ended June 30, 1997 compared with three months ended June 30, 1996 Revenues: The Partnership's oil and gas revenues decreased 17% to $208,414 from $251,186 for the three months ended June 30, 1997 as compared to the three months ended June 30, 1996. The decrease in revenues resulted from lower average prices received per barrel of oil and mcf of gas, a 7% decline in barrels of oil 8 produced and sold and a 5% decline in mcf of gas produced and sold. For the three months ended June 30, 1997, 8,342 barrels of oil were sold compared to 8,942 for the same period in 1996, a decrease of 600 barrels. For the three months ended June 30, 1997, 22,677 mcf of gas were sold compared to 23,954 for the same period in 1996, a decrease of 1,277 mcf. The production volume decreases were due to the decline characteristics of the Partnership's oil and gas properties. The average price received per barrel of oil decreased $2.96, or 14%, from $21.64 for the three months ended June 30, 1996 to $18.68 for the same period in 1997, while the average price received per mcf decreased 4% from $2.41 during the three months ended June 30, 1996 to $2.32 for the same period in 1997. Costs and Expenses: Total costs and expenses decreased to $158,261 for the three months ended June 30, 1997 as compared to $159,589 for the same period in 1996, a decrease of $1,328. This decrease was due to declines in depletion, G&A, loss on abandoned property and abandoned property costs, offset by an increase in production costs. Production costs were $103,549 for the three months ended June 30, 1997 and $96,860 for the same period in 1996 resulting in a $6,689 increase, or 7%. The increase was due to an increase in well repair and maintenance costs and workover expenses incurred in an effort to stimulate well production, offset by declines in production taxes and ad valorem taxes. G&A's components are independent accounting and engineering fees and managing general partner personnel and operating costs. During this period, G&A decreased, in aggregate, 18% from $7,536 for the three months ended June 30, 1996 to $6,154 for the same period in 1997. Depletion was $48,558 for the three months ended June 30, 1997 compared to $53,911 for the same period in 1996, a decrease of $5,353, or 10%, primarily due to a decline in oil production of 600 barrels for the three months ended June 30, 1997 from the same period in 1996. A loss on abandoned property of $951 was recognized during the three months ended June 30, 1996. This loss resulted from the abandonment of a saltwater disposal well. Abandoned property costs incurred on this well totaled $331 for the three months ended June 30, 1996. Liquidity and Capital Resources Net Cash Provided by Operating Activities Net cash provided by operating activities increased $83,984 during the six months ended June 30, 1997 from the same period ended June 30, 1996. This increase was primarily due to an increase in oil and gas sales receipts and a decrease in production costs paid. 9 Net Cash Used in Investing Activities The Partnership's principal investing activities during the six months ended June 30, 1997 and 1996 were for equipment replacement on various oil and gas properties. Net Cash Used in Financing Activities Cash was sufficient for the six months ended June 30, 1997 to cover distributions to the partners of $276,115 of which $2,762 was distributed to the managing general partner and $273,353 to the limited partners. For the same period ended June 30, 1996, cash was sufficient for distributions to the partners of $229,819 of which $2,298 was distributed to the managing general partner and $227,521 to the limited partners. 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. Part II. Other Information Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 27. 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: Parker & Parsley Development L.P., Managing General Partner By: Parker & Parsley Petroleum USA, Inc. ("PPUSA"), General Partner Dated: August 7, 1997 By: /s/ Rich Dealy -------------------------------- Rich Dealy, Controller of PPUSA 11 EX-27 2
5 0000828191 88B. 1 6-MOS DEC-31-1997 JUN-30-1997 159,050 0 108,767 0 0 267,817 7,111,898 4,670,161 2,709,554 29,068 0 0 0 0 2,680,486 2,709,554 438,420 442,958 0 312,325 0 0 0 130,633 0 130,633 0 0 0 130,633 14.44 0
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