10-Q

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 March 31, 2019
	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 Number 0-19279

EVERFLOW EASTERN PARTNERS, L.P.

(Exact name of registrant as specified in its charter)

Delaware	34-1659910
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

585 West Main Street P.O. Box 629 Canfield, Ohio	44406
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (330) 533-2692

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             

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes    X         No _____

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	Accelerated filer
Non-accelerated filer	Smaller reporting company             X
Emerging growth company        ________

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ______

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes           No     X     

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
	None

There were 5,549,355 Units of limited partnership interest of the registrant as of May 10, 2019. The Units generally do not have any voting rights, but, in certain circumstances, the Units are entitled to one vote per Unit.

Except as otherwise indicated, the information contained in this report is as of March 31, 2019.

EVERFLOW EASTERN PARTNERS, L.P.

INDEX

	DESCRIPTION		PAGE NO.
Part I.	Financial Information
	Item 1.	Financial Statements
		Consolidated Balance Sheets March 31, 2019 and December 31, 2018	F-1
		Consolidated Statements of Operations Three Months Ended March 31, 2019 and 2018	F-3
		Consolidated Statements of Partners’ Equity Three Months Ended March 31, 2019 and 2018	F-4
		Consolidated Statements of Cash Flows Three Months Ended March 31, 2019 and 2018	F-5
		Notes to Unaudited Consolidated Financial Statements	F-6
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	7
	Item 4.	Controls and Procedures	7
Part II.	Other Information
	Item 6.	Exhibits	8
		Signature	9

2

Part I:  FINANCIAL INFORMATION

Item 1.  FINANCIAL STATEMENTS

EVERFLOW EASTERN PARTNERS, L.P.

CONSOLIDATED BALANCE SHEETS

March 31, 2019 and December 31, 2018

	March 31,		December 31,
	2019		2018
	(Unaudited)		(Audited)
ASSETS
CURRENT ASSETS
Cash and equivalents	$	13,564,149	$	12,566,868
Investments		17,229,650		17,064,136
Production accounts receivable		1,974,569		1,661,669
Other		8,150		64,681
Total current assets		32,776,518		31,357,354
PROPERTY AND EQUIPMENT
Proved properties (successful efforts accounting method)		175,004,277		175,062,777
Pipeline and support equipment		770,520		762,440
Corporate and other		2,094,423		2,094,423
Gross property and equipment		177,869,220		177,919,640
Less accumulated depreciation, depletion, amortization and write down		168,828,622		168,754,778
Net property and equipment		9,040,598		9,164,862
OTHER ASSETS		126,144		125,796
TOTAL ASSETS	$	41,943,260	$	40,648,012

See notes to unaudited consolidated financial statements.

F-1

EVERFLOW EASTERN PARTNERS, L.P.

CONSOLIDATED BALANCE SHEETS

March 31, 2019 and December 31, 2018

	March 31,		December 31,
	2019		2018
	(Unaudited)		(Audited)
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	2,084,538	$	1,869,885
Accrued expenses		590,162		1,084,347
Total current liabilities		2,674,700		2,954,232
DEFERRED INCOME TAXES		40,700		40,700
OPERATIONAL ADVANCES		2,267,913		2,135,632
ASSET RETIREMENT OBLIGATIONS		16,876,086		16,807,486
COMMITMENTS AND CONTINGENCIES
LIMITED PARTNERS' EQUITY, SUBJECT TO REPURCHASE RIGHT
Authorized - 8,000,000 Units
Issued and outstanding - 5,549,355 Units		19,843,925		18,486,440
GENERAL PARTNER'S EQUITY		239,936		223,522
Total partners' equity		20,083,861		18,709,962
TOTAL LIABILITIES AND PARTNERS' EQUITY	$	41,943,260	$	40,648,012

See notes to unaudited consolidated financial statements.

F-2

EVERFLOW EASTERN PARTNERS, L.P. 

CONSOLIDATED STATEMENTS OF OPERATIONS 

Three Months Ended March 31, 2019 and 2018

 (Unaudited) 

	2019		2018
REVENUES
Crude oil and natural gas sales	$	2,741,196	$	2,056,179
Well management and operating		149,822		147,636
Other		2,294		2,227
Total revenues		2,893,312		2,206,042
DIRECT COST OF REVENUES
Production costs		857,175		733,780
Well management and operating		87,899		86,186
Depreciation, depletion and amortization		114,544		139,973
Accretion expense		74,700		86,600
Total direct cost of revenues		1,134,318		1,046,539
GENERAL AND ADMINISTRATIVE EXPENSE		602,864		586,801
Total cost of revenues		1,737,182		1,633,340
INCOME FROM OPERATIONS		1,156,130		572,702
OTHER INCOME
Interest and dividend income		179,169		56,358
Gain on disposal of property and equipment		38,600		127,465
Total other income		217,769		183,823
NET INCOME	$	1,373,899	$	756,525
Allocation of Partnership Net Income:
Limited Partners	$	1,357,485	$	747,548
General Partner		16,414		8,977
Net income	$	1,373,899	$	756,525
Net income per unit	$	0.24	$	0.13

See notes to unaudited consolidated financial statements.

F-3

EVERFLOW EASTERN PARTNERS, L.P.

CONSOLIDATED STATEMENTS OF PARTNERS' EQUITY

Three Months Ended March 31, 2019 and 2018

(Unaudited)

	2019		2018
PARTNERS' EQUITY - BEGINNING OF PERIOD	$	18,709,962	$	14,273,208
Net income		1,373,899		756,525
PARTNERS' EQUITY - END OF PERIOD	$	20,083,861	$	15,029,733

See notes to unaudited consolidated financial statements.

F-4

EVERFLOW EASTERN PARTNERS, L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2019 and 2018

(Unaudited)

	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	1,373,899		$	756,525
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		132,344			159,473
Accretion expense		74,700			86,600
Gain on disposal of property and equipment		(38,600	)		(127,465	)
Changes in assets and liabilities:
Production accounts receivable		(312,900	)		(123,650	)
Other current assets		56,531			1,846
Other assets		(348	)		-
Accounts payable		214,653			(66,053	)
Accrued expenses		(494,285	)		(492,099	)
Operational advances		132,281			128,288
Total adjustments		(235,624	)		(433,060	)
Net cash provided by operating activities		1,138,275			323,465
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments		(165,514	)		(3,547,866	)
Payments received on receivables from employees		-			31,709
Purchase of property and equipment		(8,080	)		-
Proceeds from disposal of property and equipment		32,600			32,400
Net cash used in investing activities		(140,994	)		(3,483,757	)
NET CHANGE IN CASH AND EQUIVALENTS		997,281			(3,160,292	)
CASH AND EQUIVALENTS - BEGINNING OF PERIOD		12,566,868			11,883,725
CASH AND EQUIVALENTS - END OF PERIOD	$	13,564,149		$	8,723,433
Supplemental disclosures of cash flow information and non-cash activities:
Cash paid during the period for income taxes	$	11,135		$	3,600

See notes to unaudited consolidated financial statements.

F-5

EVERFLOW EASTERN PARTNERS, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization and Summary of Significant Accounting Policies

A. Interim Financial Statements - The interim consolidated financial statements included herein have been prepared by the management of Everflow Eastern Partners, L.P., without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position and results of operations have been made.

The accompanying condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the disclosures normally required by GAAP, or those normally made in an Annual Report on Form 10-K, although the Company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto which are incorporated in Everflow Eastern Partners, L.P.’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 27, 2019.

The results of operations for the interim periods may not necessarily be indicative of the results to be expected for the full year.

B. Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates impacting the Company’s financial statements include revenue and expense accruals and oil and gas reserve quantities. In the oil and gas industry, and especially as related to the Company’s natural gas sales, the processing of actual transactions generally occurs 60-90 days after the month of delivery of its product. Consequently, accounts receivable from production and oil and gas sales are recorded using estimated production volumes and market or contract prices. Differences between estimated and actual amounts are recorded in subsequent period’s financial results. As is typical in the oil and gas industry, a significant portion of the Company’s accounts receivable from production and oil and gas sales consists of unbilled receivables. Oil and gas reserve quantities are utilized in the calculation of depreciation, depletion and amortization and the impairment of oil and gas wells and also impact the timing and costs associated with asset retirement obligations. The Company’s estimates, especially those related to oil and gas reserves, could change in the near term and could significantly impact the Company’s results of operations and financial position.

F-6

EVERFLOW EASTERN PARTNERS, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization and Summary of Significant Accounting Policies

C. Organization - Everflow Eastern Partners, L.P. (“Everflow”) is a Delaware limited partnership which was organized in September 1990 to engage in the business of oil and gas acquisition, exploration, development and production. Everflow was formed to consolidate the business and oil and gas properties of Everflow Eastern, Inc. (“EEI”) and subsidiaries and the oil and gas properties owned by certain limited partnership and working interest programs managed or sponsored by EEI (“EEI Programs” or the “Programs”).

Everflow Management Limited, LLC (“EML”), an Ohio limited liability company, is the general partner of Everflow and, as such, is authorized to perform all acts necessary or desirable to carry out the purposes and conduct of the business of Everflow. The members of EML are Everflow Management Corporation ("EMC"); two individuals who are officers and directors of EEI; one individual who is the Chairman of the Board of EEI; one individual who is an employee of EEI; and one private limited liability company. EMC is an Ohio corporation formed in September 1990 and is the managing member of EML.

D. Principles of Consolidation - The consolidated financial statements include the accounts of Everflow, its wholly-owned subsidiaries, including EEI, and interests with joint venture partners (collectively, the “Company”), which are accounted for under the proportional consolidation method. All significant accounts and transactions between the consolidated entities have been eliminated.

E. Cash and Equivalents - The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.  The Company maintains, at various financial institutions, cash and equivalents which may exceed federally insured amounts and which may, at times, significantly exceed balance sheet amounts due to float. 

F. Investments – The Company’s investments consist of shares held in a mutual fund that invests primarily in investment grade, U.S. dollar denominated short-term fixed and floating rate debt securities. The mutual fund seeks current income while seeking to maintain a low volatility of principal.

F-7

EVERFLOW EASTERN PARTNERS, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization and Summary of Significant Accounting Policies

F. Investments (continued)

The Financial Accounting Standards Board established a framework for measuring fair value and expanded disclosures about fair value measurements by establishing a fair value hierarchy that prioritizes the inputs and defines valuation techniques used to measure fair value. The hierarchy gives highest priority to Level I inputs and lowest priority to Level III inputs. The three levels of the fair value hierarchy are described below:

Level I – Quoted prices are available in active markets for identical financial instruments as of the reporting date.

Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies.

Level III – Pricing inputs are unobservable for the financial instrument and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation.

The Company’s investments are carried at fair market value based on quoted prices available in active markets and are therefore classified as Level 1.

G. Operational Advances - The Company collects and maintains funds on behalf of joint venture partners who own working interests in wells of which the Company operates for their anticipated share of future plugging and abandonment costs. As of March 31, 2019 and December 31, 2018, cash and equivalents include $2,267,913 and $2,135,632, respectively, of operational advances. Operational advances held on behalf of employees, including officers, and directors were approximately $380,200 and $307,800 as of March 31, 2019 and December 31, 2018, respectively.

H. Asset Retirement Obligations - GAAP requires the fair value of a liability for an asset retirement obligation to be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. For the Company, these obligations include dismantlement, plugging and abandonment of oil and gas wells and associated pipelines and equipment. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depleted over the estimated useful life of the related asset.

F-8

EVERFLOW EASTERN PARTNERS, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization and Summary of Significant Accounting Policies

H. Asset Retirement Obligations (continued)

The estimated liability is based on historical experience in dismantling, plugging and abandoning wells, estimated remaining lives of those wells based on reserves estimates, estimates of the external cost to dismantle, plug and abandon the wells in the future and federal and state regulatory requirements. The liability is discounted using an assumed credit-adjusted, risk-free interest rate.

Gain on disposal of property and equipment includes approximately $6,000 and $110,100 associated with non-cash settlements of asset retirement obligations during the three month periods ended March 31, 2019 and 2018, respectively.

I. Revenue Recognition – The Company accounts for revenue from contracts in accordance with Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. Revenues from contracts with customers are recognized when performance obligations are satisfied in accordance with contractual terms.

For the sale of crude oil and natural gas from operated properties, the Company generally considers each unit (BBL or MCF) to be a separate performance obligation. The transaction price may consist of fixed and variable consideration, in which the variable amount is determinable each production period and is recognized as revenue upon pickup/delivery of the crude oil or natural gas, which is the point in time that the customer obtains control of the crude oil or natural gas and the Company's performance obligation is satisfied.

Crude oil and natural gas sales derived from third party operated wells are recognized under similar terms as sales of crude oil and natural gas from operated properties and revenue is recognized at a point in time when the product is delivered, the purchaser obtains control and the Company's performance obligation is satisfied.

Crude oil and natural gas sales represent the Company's share of revenues, net of royalties and other revenue interests owned by other parties. When settling crude oil and natural gas on behalf of royalty owners or working interest owners, the Company is acting as an agent and thus reports the revenue on a net basis.

Based on the Company's judgment, the Company's performance obligations have been satisfied and an unconditional right to consideration exists at March 31, 2019 and December 31, 2018, respectively; therefore, the Company recognized amounts due from contracts with customers as production accounts receivable within the Company’s consolidated balance sheets at March 31, 2019 and December 31, 2018, respectively.

F-9

EVERFLOW EASTERN PARTNERS, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization and Summary of Significant Accounting Policies

I. Revenue Recognition (continued)

The Company utilizes the sales method to account for gas production volume imbalances. Under this method, revenue is recognized only when gas is produced and sold on the Company’s behalf. The Company had no material gas imbalances at March 31, 2019 and December 31, 2018, respectively.

The Company participates (and may act as drilling contractor) with unaffiliated and affiliated joint venture partners, employees, including officers, and directors in the drilling, development and operation of jointly owned oil and gas properties. Each owner, including the Company, has an undivided interest in the jointly owned properties. Generally, the joint venture partners, employees and directors participate on the same drilling/development cost basis as the Company and, therefore, no revenue, expense or income is recognized on the drilling and development of the properties. Well management and operating revenues are derived from a variety of both verbal and written operating agreements with joint venture partners, and are recognized monthly as services are provided and properties are managed and operated. Other revenues consist of miscellaneous revenues that are recognized at the time services are rendered, the Company has a contractual right to such revenue and collection is reasonably assured.

J. Income Taxes - Everflow is not a tax-paying entity and the net taxable income or loss, other than the taxable income or loss allocable to EEI, which is a C corporation owned by Everflow, will be allocated directly to its respective partners. The Company is not able to determine the net difference between the tax bases and the reported amounts of Everflow’s assets and liabilities due to separate elections that were made by owners of the working interests and limited partnership interests that comprised the Programs.

The Company believes that it has appropriate support for any tax positions taken and, as such, does not have any uncertain tax positions that are material to the financial statements. 

K. Allocation of Income and Per Unit Data - Under the terms of the limited partnership agreement, initially, 99% of revenues and costs were allocated to the Unitholders (the limited partners) and 1% of revenues and costs were allocated to the General Partner. Such allocation has changed and may change in the future due to Unitholders electing to exercise the Repurchase Right and select officers and employees electing to exercise options (see Note 3).

Earnings per limited partner Unit have been computed based on the weighted average number of Units outstanding during each period presented.

F-10

EVERFLOW EASTERN PARTNERS, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization and Summary of Significant Accounting Policies

L. New Accounting Standards - The Company has reviewed all recently issued accounting standards in order to determine their effects, if any, on the consolidated financial statements. Based on that review, the Company believes that none of these standards will have a significant effect on current or future earnings or results of operations

Note 2. Current Liabilities

The Company’s current liabilities consist of the following at March 31, 2019 and December 31, 2018:

	March 31,		December 31,
	2019		2018
Accounts Payable:
Production and related other	$	1,739,980	$	1,522,106
Other		295,929		299,150
Joint venture partner deposits		48,629		48,629
Total accounts payable	$	2,084,538	$	1,869,885
Accrued Expenses:
Current portion of asset retirement obligations	$	196,000	$	196,000
Other		137,800		55,100
Payroll and retirement plan contributions		137,707		692,083
Drilling		106,100		106,100
Federal, state and local taxes		12,555		35,064
Total accrued expenses	$	590,162	$	1,084,347

F-11

EVERFLOW EASTERN PARTNERS, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 3. Partners’ Equity

Units represent limited partnership interests in Everflow. The Units are transferable subject to the approval of EML and to the laws governing the transfer of securities. The Units are not listed for trading on any securities exchange nor are they quoted in the automated quotation system of a registered securities association. However, Unitholders may have an opportunity to require Everflow to repurchase their Units pursuant to the Repurchase Right.

The partnership agreement provides that Everflow will repurchase for cash up to 10% of the then outstanding Units, to the extent Unitholders offer Units to Everflow for repurchase pursuant to the Repurchase Right. The Repurchase Right entitles any Unitholder, between May 1 and June 30 of each year, to notify Everflow that the Unitholder elects to exercise the Repurchase Right and have Everflow acquire certain or all Units. The price to be paid for any such Units is calculated based upon the audited financial statements of the Company as of December 31 of the year prior to the year in which the Repurchase Right is to be effective and independently prepared reserve reports. The price per Unit equals 66% of the adjusted book value of the Company allocable to the Units, divided by the number of Units outstanding at the beginning of the year in which the applicable Repurchase Right is to be effective less interim cash distributions received by a Unitholder. The adjusted book value is calculated by adding partners’ equity, the Standardized Measure of Discounted Future Net Cash Flows and the tax effect included in the Standardized Measure and subtracting from that sum the carrying value of oil and gas properties (net of undeveloped lease costs). If more than 10% of the then outstanding Units are tendered during any period during which the Repurchase Right is to be effective, the Investors’ Units tendered shall be prorated for purposes of calculating the actual number of Units to be acquired during any such period. The price associated with the 2019 Repurchase Right, based upon the December 31, 2018 calculation, is expected to be $1.50 per Unit, net of a $0.30 per Unit distribution made in April 2019.

In June 2018, the Company repurchased 68,261 Units pursuant to the Repurchase Right at a price of $0.11 per Unit. The Company did not offer to repurchase any Units pursuant to the Repurchase Right during 2017 or 2016 because the price associated with the Repurchase Rights for both years was negative.

The Company has an Option Repurchase Plan (the “Option Plan”) which permits the grant of options to select officers and employees to purchase certain Units acquired by the Company pursuant to the Repurchase Right. The purpose of the Option Plan is to assist the Company to attract and retain officers and other key employees and to enable those individuals to acquire or increase their ownership interest in the Company in order to encourage them to promote the growth and profitability of the Company. The Option Plan is designed to align directly the financial interests of the participants with the financial interests of the Unitholders. In June 2018, the Company granted 30,000 options to officers and key employees. All options granted were exercised on the same date. The Company did not grant any options in 2017 or 2016.

F-12

EVERFLOW EASTERN PARTNERS, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 3. Partners’ Equity (continued)

All Units repurchased pursuant to the Repurchase Right are retired except for those Units issued through the exercise of options pursuant to the Option Plan. There were 5,549,355 outstanding Units following the Company’s repurchase of Units and issuance of options in June 2018. There were no instruments outstanding at March 31, 2019 or 2018 that would potentially dilute net income per Unit.

Note 4. Commitments and Contingencies

The Company operates exclusively in Ohio and Pennsylvania of the United States in the business of oil and gas acquisition, exploration, development and production. The Company operates in an environment with many financial risks, including, but not limited to, the ability to acquire additional economically recoverable oil and gas reserves, the inherent risks of the search for, development of and production of oil and gas, the ability to sell oil and gas at prices which will provide attractive rates of return, the volatility and seasonality of oil and gas production and prices, and the highly competitive and, at times, seasonal nature of the industry and worldwide economic conditions. The Company’s ability to expand its reserve base and diversify its operations is also dependent upon the Company’s ability to obtain the necessary capital through operating cash flow, borrowings or equity offerings. Various federal, state and governmental agencies are considering, and some have adopted, laws and regulations regarding environmental protection which could adversely affect the proposed business activities of the Company. The Company cannot predict what effect, if any, current and future regulations may have on the operations of the Company.

The Company has multiple contracts with Dominion Field Services (“Dominion”) which obligate Dominion to purchase, and the Company to sell and deliver, certain quantities of natural gas production from the Company’s oil and gas properties throughout the contract periods. Management believes the Company can meet its delivery commitments based on estimated production.

The Company is party to various legal proceedings and claims in the ordinary course of its business. The Company believes that the outcome of these matters will not have a material adverse effect on its consolidated financial position, results of operations, or liquidity.

F-13

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion is intended to assist in the understanding of the Company’s liquidity, capital resources and results of operations. It is suggested that this information be read in conjunction with the Company’s interim consolidated financial statements, the related notes to consolidated financial statements and the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 27, 2019.

Liquidity and Capital Resources

The following table summarizes the Company's financial position at March 31, 2019 and December 31, 2018:

	March 31, 2019					December 31, 2018
	Amount		%			Amount		%
	(Amounts in Thousands)					(Amounts in Thousands)
Working capital	$	30,102		77	%	$	28,403		76	%
Property and equipment (net)		9,041		23			9,165		24
Other		126		-			126		-
Total	$	39,269		100	%	$	37,694		100	%
Deferred income taxes	$	41		-	%	$	41		-	%
Long-term liabilities		19,144		49			18,943		50
Partners' equity		20,084		51			18,710		50
Total	$	39,269		100	%	$	37,694		100	%

Working capital of $30.1 million as of March 31, 2019 represented an increase of $1.7 million from December 31, 2018, due primarily to increases in cash and equivalents, investments and production accounts receivable, as well as a decrease in accrued expenses; offset somewhat by an increase in accounts payable. The increase in investments was primarily the result of additional purchases of shares in a mutual fund during the three months ended March 31, 2019 that invests primarily in investment grade, short-term fixed and floating rate debt securities. The increase in production accounts receivable is primarily the result of additional natural gas and crude oil volumes produced during the current receivable period as compared to the prior comparable receivable period. The increase in volumes produced is primarily the result of additional wells producing during the current receivable period that were otherwise shut-in during the prior comparable receivable period. There were also additional natural gas and crude oil volumes recognized from third party operators during the current receivable period as compared to the prior comparable receivable period. The decrease in accrued expenses is primarily the result of all payroll and retirement contributions accrued at December 31, 2018 being paid during the three months ended March 31, 2019. The increase in accounts payable is primarily the result of additional production and related other payables outstanding at March 31, 2019 as compared to the comparable reporting date.    

3

The Company funds its operations with cash generated by operations and/or existing cash and equivalent balances. The Company has had no borrowings since 2003 and no principal indebtedness was outstanding as of May 10, 2019. The Company used cash on-hand to fund the payment of a distribution amounting to approximately $1.7 million in April 2019.

The Company’s cash flow provided by operations before the change in working capital was $1.7 million during the three months ended March 31, 2019, an increase of $671,000 as compared to $1.0 million of cash flow provided by operations before the change in working capital during the prior comparable period. Changes in working capital from operations other than cash and equivalents decreased cash by $536,000 during the three months ended March 31, 2019. Cash flows provided by operating activities was $1.1 million for the three months ended March 31, 2019.

Management of the Company believes cash flows and existing cash and equivalents should be sufficient to meet the current funding requirements of ongoing operations, capital investments to develop and/or purchase oil and gas properties and the repurchase of Units pursuant to the 2019 repurchase right.

The Company has multiple contracts with Dominion Field Services (“Dominion”) which obligate Dominion to purchase, and the Company to sell and deliver, certain quantities of natural gas production from the Company’s oil and gas properties throughout the contract periods. Management believes the Company can meet its delivery commitments based on estimated production.

4

Results of Operations

The following table and discussion is a review of the results of operations of the Company for the three month periods ended March 31, 2019 and 2018. All items in the table are calculated as a percentage of total revenues. This table should be read in conjunction with the discussions of select items below:

	Three Months
	Ended March 31,
	2019			2018
Revenues:
Crude oil and natural gas sales		95	%		93	%
Well management and operating		5			7
Total revenues		100	%		100	%
Expenses:
Production costs		30			33
Well management and operating		3			4
Depreciation, depletion and amortization		4			6
Accretion expense		3			4
General and administrative		20			27
Total expenses		60	%		74	%
Other income		7			8
Net income		47	%		34	%

Revenues for the three month period ended March 31, 2019 increased $687,000, or 31%, as compared to the prior comparable period. The increase was primarily the result of an increase in crude oil and natural gas sales.

Crude oil and natural gas sales increased $685,000, or 33%, during the three months ended March 31, 2019 as compared to the prior comparable period. The increase was primarily the result of additional natural gas and crude oil volumes produced, as well as higher average natural gas prices received, during the three months ended March 31, 2019 as compared to the prior comparable period. The increase in volumes produced during the three month period ended March 31, 2019 as compared to the prior comparable period was primarily the result of less Company operated properties being voluntarily shut-in, as well as additional production recognized from third party operated properties, during the three months ended March 31, 2019 as compared to the prior comparable period. The effect of increased production volumes and higher average natural gas prices received was offset somewhat by the effect of lower average crude oil prices received during the three months ended March 31, 2019 as compared to the prior comparable period.

5

Production costs increased $123,000, or 17%, during the three months ended March 31, 2019 as compared to the prior comparable period. The increase was primarily the result of additional costs associated with less Company operated properties being voluntarily shut-in during the three month period ended March 31, 2019, as well as higher ad valorem taxes and additional production costs recognized in association with third party operated properties during the three month period ended March 31, 2019, each as compared to the prior comparable period.

Other income increased $34,000, or 18%, during the three months ended March 31, 2019 as compared to prior comparable period. The primary reason for the increase was the result of additional interest and dividend income recognized during the three months ended March 31, 2019 as compared to the prior comparable period, offset somewhat by a decrease in gain on disposal of property and equipment during the three months ended March 31, 2019 as compared to the prior comparable period. The increase in interest and dividend income was primarily the result of additional investments held and the related dividends yielded on investments during the three month period ended March 31, 2019 as compared to the prior comparable period. The decrease in gain on disposal of property and equipment was primarily the result of less oil and gas properties disposed of during the three month period ended March 31, 2019 as compared to the prior comparable period. The majority of the gain on disposal of property and equipment during the three month period ended March 31, 2018 was associated with settlements of the properties’ related asset retirement obligations.

The Company reported net income of $1.4 million and $757,000 during the three months ended March 31, 2019 and 2018, respectively, representing 47% and 34% of total revenues during the three month periods ended March 31, 2019 and 2018, respectively. The increase in net income was primarily the result of increases in crude oil and natural gas sales and other income, offset somewhat by an increase in production costs.

Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The critical accounting policies that affect the Company’s more complex judgments and estimates are described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018.

Forward-Looking Statements

Except for historical financial information contained in this Form 10-Q, the statements made in this report are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). In addition, words such as “expects,” “anticipate,” “intends,” “plans,” “believes,” “estimates,” variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actual results to differ materially from those in the forward-looking statements include price fluctuations in the gas market in the Appalachian Basin, actual oil and gas production and the ability to locate economically productive oil and gas prospects for development by the Company. In addition, any forward-looking statements speak only as of the date on which such statement is made and the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

6

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

This information has been omitted, as the Company qualifies as a smaller reporting company.

Item 4. CONTROLS AND PROCEDURES

(a)     Disclosure Controls and Procedures. As of the end of the period covered by this report, management performed, with the participation of our Principal Executive Officer (the “CEO”) and Principal Financial and Accounting Officer (the “CFO”), an evaluation of the effectiveness of our disclosure controls and procedures as defined in Exchange Act Rules 13a-15 (the “evaluation”). Our disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our CEO and CFO, to allow timely decisions regarding required disclosures. Based on the evaluation, management, including our CEO and CFO, concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

The certifications of the Company’s CEO and CFO are attached as Exhibits 31.1 and 31.2 to this Quarterly Report on Form 10-Q and include, in paragraph 4 of such certifications, information concerning the Company’s disclosure controls and procedures and internal control over financial reporting. Such certifications should be read in conjunction with the information contained in this Item 4., including the information incorporated by reference to our filing on Form 10-K for the year ended December 31, 2018, for a more complete understanding of the matters covered by such certifications.

(b)     Changes in internal control over financial reporting. No change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) occurred during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

7

Part II: OTHER INFORMATION

Item 6. EXHIBITS

Exhibit 31.1 Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 31.2 Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32.1 Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS Instance Document

101.SCH XBRL Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF XBRL Taxonomy Definition Linkbase Document

8

SIGNATURE

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.

	EVERFLOW EASTERN PARTNERS, L.P.
	By:	everflow management limited, llc
		General Partner
	By:	everflow management corporation
		Managing Member
Dated: May 13, 2019	By:	/s/ Brian A. Staebler
		Brian A. Staebler
		Vice President, Secretary-Treasurer and Principal Financial and Accounting Officer (Duly Authorized Officer)

9

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, William A. Siskovic, certify that:

1.     I have reviewed this Quarterly Report on Form 10-Q of Everflow Eastern Partners, L.P.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.     Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.     The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(c) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a)     designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b)     designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     evaluated the effectiveness of the registrant’s disclosure controls and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report, based on such evaluation; and

d)     disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a)     all significant deficiencies and material weaknesses in the design or operation of internal control which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)     any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 13, 2019

/s/ William A. Siskovic                                            

William A. Siskovic

President and Principal Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Brian A. Staebler, certify that:

1.     I have reviewed this Quarterly Report on Form 10-Q of Everflow Eastern Partners, L.P.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.     Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.     The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(c) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a)     designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b)     designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     evaluated the effectiveness of the registrant’s disclosure controls and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report, based on such evaluation; and

d)     disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a)     all significant deficiencies and material weaknesses in the design or operation of internal control which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)     any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 13, 2019

/s/ Brian A. Staebler                                                 

Brian A. Staebler

Vice President, Secretary-Treasurer and Principal

Financial and Accounting Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), each of the undersigned, William A. Siskovic, President and Principal Executive Officer of Everflow Eastern Partners, L.P. (the “Company”), and Brian A. Staebler, Vice President, Secretary-Treasurer and Principal Financial and Accounting Officer of the Company, hereby certify that, to his knowledge:

(1)     the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)     the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of, and for, the periods presented in the Report.

Dated:     May 13, 2019          

/s/ William A. Siskovic                                 

William A. Siskovic

President and Principal Executive Officer

/s/ Brian A. Staebler                                       

Brian A. Staebler

Vice President, Secretary-Treasurer and Principal Financial and Accounting Officer

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 10, 2019
Document Information [Line Items]
Entity Registrant Name	EVERFLOW EASTERN PARTNERS LP
Entity Central Index Key	0000868082
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		5,549,355
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
CURRENT ASSETS
Cash and equivalents	$ 13,564,149	$ 12,566,868
Investments	17,229,650	17,064,136
Production accounts receivable	1,974,569	1,661,669
Other	8,150	64,681
Total current assets	32,776,518	31,357,354
PROPERTY AND EQUIPMENT
Proved properties (successful efforts accounting method)	175,004,277	175,062,777
Pipeline and support equipment	770,520	762,440
Corporate and other	2,094,423	2,094,423
Gross property and equipment	177,869,220	177,919,640
Less accumulated depreciation, depletion, amortization and write down	168,828,622	168,754,778
Net property and equipment	9,040,598	9,164,862
OTHER ASSETS	126,144	125,796
TOTAL ASSETS	41,943,260	40,648,012
CURRENT LIABILITIES
Accounts payable	2,084,538	1,869,885
Accrued expenses	590,162	1,084,347
Total current liabilities	2,674,700	2,954,232
DEFERRED INCOME TAXES	40,700	40,700
OPERATIONAL ADVANCES	2,267,913	2,135,632
ASSET RETIREMENT OBLIGATIONS	16,876,086	16,807,486
COMMITMENTS AND CONTINGENCIES
LIMITED PARTNERS' EQUITY, SUBJECT TO REPURCHASE RIGHT
Authorized - 8,000,000 Units Issued and outstanding - 5,549,355 Units	19,843,925	18,486,440
GENERAL PARTNER'S EQUITY	239,936	223,522
Total partners' equity	20,083,861	18,709,962
TOTAL LIABILITIES AND PARTNERS' EQUITY	$ 41,943,260	$ 40,648,012

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - shares	Mar. 31, 2019	Dec. 31, 2018
Limited partner's equity, units authorized (in shares)	8,000,000	8,000,000
Limited partner's equity, units issued (in shares)	5,549,355	5,549,355
Limited partner's equity, units outstanding (in shares)	5,549,355	5,549,355

XML

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
REVENUES
Total revenues	$ 2,893,312	$ 2,206,042
DIRECT COST OF REVENUES
Production costs	857,175	733,780
Depreciation, depletion and amortization	114,544	139,973
Accretion expense	74,700	86,600
Total direct cost of revenues	1,134,318	1,046,539
GENERAL AND ADMINISTRATIVE EXPENSE	602,864	586,801
Total cost of revenues	1,737,182	1,633,340
INCOME FROM OPERATIONS	1,156,130	572,702
OTHER INCOME
Interest and dividend income	179,169	56,358
Gain on disposal of property and equipment	38,600	127,465
Total other income	217,769	183,823
NET INCOME	1,373,899	756,525
Allocation of Partnership Net Income:
Limited Partners	1,357,485	747,548
General Partner	16,414	8,977
Net income	$ 1,373,899	$ 756,525
Net income per unit (in dollars per share)	$ 0.24	$ 0.13
Oil and Gas [Member]
REVENUES
Total revenues	$ 2,741,196	$ 2,056,179
Oil and Gas Service [Member]
REVENUES
Total revenues	149,822	147,636
DIRECT COST OF REVENUES
Well management and operating	87,899	86,186
Product and Service, Other [Member]
REVENUES
Total revenues	$ 2,294	$ 2,227

XML

Consolidated Statements of Partners' Equity (unaudited)	USD ($)
PARTNERS' EQUITY - BEGINNING OF PERIOD at Dec. 31, 2017	$ 14,273,208
Net income	756,525
PARTNERS' EQUITY - END OF PERIOD at Mar. 31, 2018	15,029,733
PARTNERS' EQUITY - BEGINNING OF PERIOD at Dec. 31, 2018	18,709,962
Net income	1,373,899
PARTNERS' EQUITY - END OF PERIOD at Mar. 31, 2019	$ 20,083,861

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,373,899	$ 756,525
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	132,344	159,473
Accretion expense	74,700	86,600
Gain on disposal of property and equipment	(38,600)	(127,465)
Changes in assets and liabilities:
Production accounts receivable	(312,900)	(123,650)
Other current assets	56,531	1,846
Other assets	(348)
Accounts payable	214,653	(66,053)
Accrued expenses	(494,285)	(492,099)
Operational advances	132,281	128,288
Total adjustments	(235,624)	(433,060)
Net cash provided by operating activities	1,138,275	323,465
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments	(165,514)	(3,547,866)
Payments received on receivables from employees		31,709
Purchase of property and equipment	(8,080)
Proceeds from disposal of property and equipment	32,600	32,400
Net cash used in investing activities	(140,994)	(3,483,757)
NET CHANGE IN CASH AND EQUIVALENTS	997,281	(3,160,292)
CASH AND EQUIVALENTS - BEGINNING OF PERIOD	12,566,868	11,883,725
CASH AND EQUIVALENTS - END OF PERIOD	13,564,149	8,723,433
Supplemental disclosures of cash flow information and non-cash activities:
Cash paid during the period for income taxes	$ 11,135	$ 3,600

XML

Note 1 - Organization and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

Note 1. Organization and Summary of Significant Accounting Policies

A. Interim Financial Statements - The interim consolidated financial statements included herein have been prepared by the management of Everflow Eastern Partners, L.P., without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position and results of operations have been made.

The accompanying condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form

10

-Q and Article

8

-

03

of Regulation S-

X.

Accordingly, they do

not

include all of the disclosures normally required by GAAP, or those normally made in an Annual Report on Form

10

-K, although the Company believes that the disclosures made are adequate to make the information

not

misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto which are incorporated in Everflow Eastern Partners, L.P.’s annual report on Form

10

-K filed with the Securities and Exchange Commission (“SEC”) on

March 27, 2019.

The results of operations for the interim periods

may

not

necessarily be indicative of the results to be expected for the full year.

B. Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates impacting the Company’s financial statements include revenue and expense accruals and oil and gas reserve quantities. In the oil and gas industry, and especially as related to the Company’s natural gas sales, the processing of actual transactions generally occurs 60 - 90 days after the month of delivery of its product. Consequently, accounts receivable from production and oil and gas sales are recorded using estimated production volumes and market or contract prices. Differences between estimated and actual amounts are recorded in subsequent period’s financial results. As is typical in the oil and gas industry, a significant portion of the Company’s accounts receivable from production and oil and gas sales consists of unbilled receivables. Oil and gas reserve quantities are utilized in the calculation of depreciation, depletion and amortization and the impairment of oil and gas wells and also impact the timing and costs associated with asset retirement obligations. The Company’s estimates, especially those related to oil and gas reserves, could change in the near term and could significantly impact the Company’s results of operations and financial position.

C. Organization - Everflow Eastern Partners, L.P. (“Everflow”) is a Delaware limited partnership which was organized in September 1990 to engage in the business of oil and gas acquisition, exploration, development and production. Everflow was formed to consolidate the business and oil and gas properties of Everflow Eastern, Inc. (“EEI”) and subsidiaries and the oil and gas properties owned by certain limited partnership and working interest programs managed or sponsored by EEI (“EEI Programs” or the “Programs”).

Everflow Management Limited, LLC (“EML”), an Ohio limited liability company, is the general partner of Everflow and, as such, is authorized to perform all acts necessary or desirable to carry out the purposes and conduct of the business of Everflow. The members of EML are Everflow Management Corporation ("EMC");

two

individuals who are officers and directors of EEI;

one

individual who is the Chairman of the Board of EEI;

one

individual who is an employee of EEI; and

one

private limited liability company. EMC is an Ohio corporation formed in

September 1990

and is the managing member of EML.

D. Principles of Consolidation - The consolidated financial statements include the accounts of Everflow, its wholly-owned subsidiaries, including EEI, and interests with joint venture partners (collectively, the “Company”), which are accounted for under the proportional consolidation method. All significant accounts and transactions between the consolidated entities have been eliminated.

E. Cash and Equivalents - The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.  The Company maintains, at various financial institutions, cash and equivalents which may exceed federally insured amounts and which may, at times, significantly exceed balance sheet amounts due to float. 

F. Investments – The Company’s investments consist of shares held in a mutual fund that invests primarily in investment grade, U.S. dollar denominated short-term fixed and floating rate debt securities. The mutual fund seeks current income while seeking to maintain a low volatility of principal.

The Financial Accounting Standards Board established a framework for measuring fair value and expanded disclosures about fair value measurements by establishing a fair value hierarchy that prioritizes the inputs and defines valuation techniques used to measure fair value. The hierarchy gives highest priority to Level I inputs and lowest priority to Level III inputs. The

three

levels of the fair value hierarchy are described below:

Level I – Quoted prices are available in active markets for identical financial instruments as of the reporting date.

Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies.

Level III – Pricing inputs are unobservable for the financial instrument and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation.

The Company’s investments are carried at fair market value based on quoted prices available in active markets and are therefore classified as Level

1.

G. Operational Advances - The Company collects and maintains funds on behalf of joint venture partners who own working interests in wells of which the Company operates for their anticipated share of future plugging and abandonment costs. As of March 31, 2019 and December 31, 2018, cash and equivalents include $2,267,913 and $2,135,632, respectively, of operational advances. Operational advances held on behalf of employees, including officers, and directors were approximately $380,200 and $307,800 as of March 31, 2019 and December 31, 2018, respectively.

H. Asset Retirement Obligations - GAAP requires the fair value of a liability for an asset retirement obligation to be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. For the Company, these obligations include dismantlement, plugging and abandonment of oil and gas wells and associated pipelines and equipment. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depleted over the estimated useful life of the related asset.

The estimated liability is based on historical experience in dismantling, plugging and abandoning wells, estimated remaining lives of those wells based on reserves estimates, estimates of the external cost to dismantle, plug and abandon the wells in the future and federal and state regulatory requirements. The liability is discounted using an assumed credit-adjusted, risk-free interest rate.

Gain on disposal of property and equipment includes approximately

$6,000

and

$110,100

associated with non-cash settlements of asset retirement obligations during the

three

month periods ended

March 31, 2019

and

2018,

respectively.

I. Revenue Recognition – The Company accounts for revenue from contracts in accordance with Accounting Standards Update No. 2014 - 09, “Revenue from Contracts with Customers (Topic 606 )”. Revenues from contracts with customers are recognized when performance obligations are satisfied in accordance with contractual terms.

For the sale of crude oil and natural gas from operated properties, the Company generally considers each unit (BBL or MCF) to be a separate performance obligation. The transaction price

may

consist of fixed and variable consideration, in which the variable amount is determinable each production period and is recognized as revenue upon pickup/delivery of the crude oil or natural gas, which is the point in time that the customer obtains control of the crude oil or natural gas and the Company's performance obligation is satisfied.

Crude oil and natural gas sales derived from

third

party operated wells are recognized under similar terms as sales of crude oil and natural gas from operated properties and revenue is recognized at a point in time when the product is delivered, the purchaser obtains control and the Company's performance obligation is satisfied.

Crude oil and natural gas sales represent the Company's share of revenues, net of royalties and other revenue interests owned by other parties. When settling crude oil and natural gas on behalf of royalty owners or working interest owners, the Company is acting as an agent and thus reports the revenue on a net basis.

Based on the Company's judgment, the Company's performance obligations have been satisfied and an unconditional right to consideration exists at

March 31, 2019

and

December 31, 2018,

respectively; therefore, the Company recognized amounts due from contracts with customers as production accounts receivable within the Company’s consolidated balance sheets at

March 31, 2019

and

December 31, 2018,

respectively.

The Company utilizes the sales method to account for gas production volume imbalances. Under this method, revenue is recognized only when gas is produced and sold on the Company’s behalf. The Company had

no

material gas imbalances at

March 31, 2019

and

December 31, 2018,

respectively.

The Company participates (and

may

act as drilling contractor) with unaffiliated and affiliated joint venture partners, employees, including officers, and directors in the drilling, development and operation of jointly owned oil and gas properties. Each owner, including the Company, has an undivided interest in the jointly owned properties. Generally, the joint venture partners, employees and directors participate on the same drilling/development cost basis as the Company and, therefore,

no

revenue, expense or income is recognized on the drilling and development of the properties. Well management and operating revenues are derived from a variety of both verbal and written operating agreements with joint venture partners, and are recognized monthly as services are provided and properties are managed and operated. Other revenues consist of miscellaneous revenues that are recognized at the time services are rendered, the Company has a contractual right to such revenue and collection is reasonably assured.

J. Income Taxes - Everflow is not a tax-paying entity and the net taxable income or loss, other than the taxable income or loss allocable to EEI, which is a C corporation owned by Everflow, will be allocated directly to its respective partners. The Company is not able to determine the net difference between the tax bases and the reported amounts of Everflow’s assets and liabilities due to separate elections that were made by owners of the working interests and limited partnership interests that comprised the Programs.

The Company believes that it has appropriate support for any tax positions taken and, as such, does

not

have any uncertain tax positions that are material to the financial statements. 

K. Allocation of Income and Per Unit Data - Under the terms of the limited partnership agreement, initially, 99% of revenues and costs were allocated to the Unitholders (the limited partners) and 1% of revenues and costs were allocated to the General Partner. Such allocation has changed and may change in the future due to Unitholders electing to exercise the Repurchase Right and select officers and employees electing to exercise options (see Note 3 ).

Earnings per limited partner Unit have been computed based on the weighted average number of Units outstanding during each period presented.

L. New Accounting Standards - The Company has reviewed all recently issued accounting standards in order to determine their effects, if any, on the consolidated financial statements. Based on that review, the Company believes that none of these standards will have a significant effect on current or future earnings or results of operations

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Note 2 - Current Liabilities

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

Note 2. Current Liabilities

The Company’s current liabilities consist of the following at

March 31, 2019

and

December 31, 2018:

	March 31,		December 31,
	2019		2018
Accounts Payable:
Production and related other	$	1,739,980	$	1,522,106
Other		295,929		299,150
Joint venture partner deposits		48,629		48,629
Total accounts payable	$	2,084,538	$	1,869,885
Accrued Expenses:
Current portion of asset retirement obligations	$	196,000	$	196,000
Other		137,800		55,100
Payroll and retirement plan contributions		137,707		692,083
Drilling		106,100		106,100
Federal, state and local taxes		12,555		35,064
Total accrued expenses	$	590,162	$	1,084,347

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Note 3 - Partners' Equity

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Partners' Capital Notes Disclosure [Text Block]

Note 3. Partners’ Equity

Units represent limited partnership interests in Everflow. The Units are transferable subject to the approval of EML and to the laws governing the transfer of securities. The Units are

not

listed for trading on any securities exchange nor are they quoted in the automated quotation system of a registered securities association. However, Unitholders

may

have an opportunity to require Everflow to repurchase their Units pursuant to the Repurchase Right.

The partnership agreement provides that Everflow will repurchase for cash up to

10%

of the then outstanding Units, to the extent Unitholders offer Units to Everflow for repurchase pursuant to the Repurchase Right. The Repurchase Right entitles any Unitholder, between

May 1

and

June 30

of each year, to notify Everflow that the Unitholder elects to exercise the Repurchase Right and have Everflow acquire certain or all Units. The price to be paid for any such Units is calculated based upon the audited financial statements of the Company as of

December 31

of the year prior to the year in which the Repurchase Right is to be effective and independently prepared reserve reports. The price per Unit equals

66%

of the adjusted book value of the Company allocable to the Units, divided by the number of Units outstanding at the beginning of the year in which the applicable Repurchase Right is to be effective less interim cash distributions received by a Unitholder. The adjusted book value is calculated by adding partners’ equity, the Standardized Measure of Discounted Future Net Cash Flows and the tax effect included in the Standardized Measure and subtracting from that sum the carrying value of oil and gas properties (net of undeveloped lease costs). If more than

10%

of the then outstanding Units are tendered during any period during which the Repurchase Right is to be effective, the Investors’ Units tendered shall be prorated for purposes of calculating the actual number of Units to be acquired during any such period. The price associated with the

2019

Repurchase Right, based upon the

December 31, 2018

calculation, is expected to be

$1.50

per Unit, net of a

$0.30

per Unit distribution made in

April 2019.

In

June 2018,

the Company repurchased

68,261

Units pursuant to the Repurchase Right at a price of

$0.11

per Unit. The Company did

not

offer to repurchase any Units pursuant to the Repurchase Right during

2017

or

2016

because the price associated with the Repurchase Rights for both years was negative.

The Company has an Option Repurchase Plan (the “Option Plan”) which permits the grant of options to select officers and employees to purchase certain Units acquired by the Company pursuant to the Repurchase Right. The purpose of the Option Plan is to assist the Company to attract and retain officers and other key employees and to enable those individuals to acquire or increase their ownership interest in the Company in order to encourage them to promote the growth and profitability of the Company. The Option Plan is designed to align directly the financial interests of the participants with the financial interests of the Unitholders. In

June 2018,

the Company granted

30,000

options to officers and key employees. All options granted were exercised on the same date. The Company did

not

grant any options in

2017

or

2016.

All Units repurchased pursuant to the Repurchase Right are retired except for those Units issued through the exercise of options pursuant to the Option Plan. There were

5,549,355

outstanding Units following the Company’s repurchase of Units and issuance of options in

June 2018.

There were

no

instruments outstanding at

March 31, 2019

or

2018

that would potentially dilute net income per Unit.

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Note 4 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Note 4. Commitments and Contingencies

The Company operates exclusively in Ohio and Pennsylvania of the United States in the business of oil and gas acquisition, exploration, development and production. The Company operates in an environment with many financial risks, including, but

not

limited to, the ability to acquire additional economically recoverable oil and gas reserves, the inherent risks of the search for, development of and production of oil and gas, the ability to sell oil and gas at prices which will provide attractive rates of return, the volatility and seasonality of oil and gas production and prices, and the highly competitive and, at times, seasonal nature of the industry and worldwide economic conditions. The Company’s ability to expand its reserve base and diversify its operations is also dependent upon the Company’s ability to obtain the necessary capital through operating cash flow, borrowings or equity offerings. Various federal, state and governmental agencies are considering, and some have adopted, laws and regulations regarding environmental protection which could adversely affect the proposed business activities of the Company. The Company cannot predict what effect, if any, current and future regulations

may

have on the operations of the Company.

The Company has multiple contracts with Dominion Field Services (“Dominion”) which obligate Dominion to purchase, and the Company to sell and deliver, certain quantities of natural gas production from the Company’s oil and gas properties throughout the contract periods. Management believes the Company can meet its delivery commitments based on estimated production.

The Company is party to various legal proceedings and claims in the ordinary course of its business. The Company believes that the outcome of these matters will

not

have a material adverse effect on its consolidated financial position, results of operations, or liquidity.

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Organization Principles of Consolidation [Policy Text Block]

A. Interim Financial Statements - The interim consolidated financial statements included herein have been prepared by the management of Everflow Eastern Partners, L.P., without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position and results of operations have been made.

The accompanying condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form

10

-Q and Article

8

-

03

of Regulation S-

X.

Accordingly, they do

not

include all of the disclosures normally required by GAAP, or those normally made in an Annual Report on Form

10

-K, although the Company believes that the disclosures made are adequate to make the information

not

misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto which are incorporated in Everflow Eastern Partners, L.P.’s annual report on Form

10

-K filed with the Securities and Exchange Commission (“SEC”) on

March 27, 2019.

The results of operations for the interim periods

may

not

necessarily be indicative of the results to be expected for the full year.

Use of Estimates, Policy [Policy Text Block]

B. Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates impacting the Company’s financial statements include revenue and expense accruals and oil and gas reserve quantities. In the oil and gas industry, and especially as related to the Company’s natural gas sales, the processing of actual transactions generally occurs 60 - 90 days after the month of delivery of its product. Consequently, accounts receivable from production and oil and gas sales are recorded using estimated production volumes and market or contract prices. Differences between estimated and actual amounts are recorded in subsequent period’s financial results. As is typical in the oil and gas industry, a significant portion of the Company’s accounts receivable from production and oil and gas sales consists of unbilled receivables. Oil and gas reserve quantities are utilized in the calculation of depreciation, depletion and amortization and the impairment of oil and gas wells and also impact the timing and costs associated with asset retirement obligations. The Company’s estimates, especially those related to oil and gas reserves, could change in the near term and could significantly impact the Company’s results of operations and financial position.

Organization [Policy Text Block]

C. Organization - Everflow Eastern Partners, L.P. (“Everflow”) is a Delaware limited partnership which was organized in September 1990 to engage in the business of oil and gas acquisition, exploration, development and production. Everflow was formed to consolidate the business and oil and gas properties of Everflow Eastern, Inc. (“EEI”) and subsidiaries and the oil and gas properties owned by certain limited partnership and working interest programs managed or sponsored by EEI (“EEI Programs” or the “Programs”).

Everflow Management Limited, LLC (“EML”), an Ohio limited liability company, is the general partner of Everflow and, as such, is authorized to perform all acts necessary or desirable to carry out the purposes and conduct of the business of Everflow. The members of EML are Everflow Management Corporation ("EMC");

two

individuals who are officers and directors of EEI;

one

individual who is the Chairman of the Board of EEI;

one

individual who is an employee of EEI; and

one

private limited liability company. EMC is an Ohio corporation formed in

September 1990

and is the managing member of EML.

Consolidation, Policy [Policy Text Block]

D. Principles of Consolidation - The consolidated financial statements include the accounts of Everflow, its wholly-owned subsidiaries, including EEI, and interests with joint venture partners (collectively, the “Company”), which are accounted for under the proportional consolidation method. All significant accounts and transactions between the consolidated entities have been eliminated.

Cash and Cash Equivalents, Policy [Policy Text Block]

E. Cash and Equivalents - The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.  The Company maintains, at various financial institutions, cash and equivalents which may exceed federally insured amounts and which may, at times, significantly exceed balance sheet amounts due to float. 

Investment, Policy [Policy Text Block]

F. Investments – The Company’s investments consist of shares held in a mutual fund that invests primarily in investment grade, U.S. dollar denominated short-term fixed and floating rate debt securities. The mutual fund seeks current income while seeking to maintain a low volatility of principal.

The Financial Accounting Standards Board established a framework for measuring fair value and expanded disclosures about fair value measurements by establishing a fair value hierarchy that prioritizes the inputs and defines valuation techniques used to measure fair value. The hierarchy gives highest priority to Level I inputs and lowest priority to Level III inputs. The

three

levels of the fair value hierarchy are described below:

Level I – Quoted prices are available in active markets for identical financial instruments as of the reporting date.

Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies.

Level III – Pricing inputs are unobservable for the financial instrument and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation.

The Company’s investments are carried at fair market value based on quoted prices available in active markets and are therefore classified as Level

1.

Operational Advances [Policy Text Block]

G. Operational Advances - The Company collects and maintains funds on behalf of joint venture partners who own working interests in wells of which the Company operates for their anticipated share of future plugging and abandonment costs. As of March 31, 2019 and December 31, 2018, cash and equivalents include $2,267,913 and $2,135,632, respectively, of operational advances. Operational advances held on behalf of employees, including officers, and directors were approximately $380,200 and $307,800 as of March 31, 2019 and December 31, 2018, respectively.

Asset Retirement Obligation [Policy Text Block]

H. Asset Retirement Obligations - GAAP requires the fair value of a liability for an asset retirement obligation to be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. For the Company, these obligations include dismantlement, plugging and abandonment of oil and gas wells and associated pipelines and equipment. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depleted over the estimated useful life of the related asset.

The estimated liability is based on historical experience in dismantling, plugging and abandoning wells, estimated remaining lives of those wells based on reserves estimates, estimates of the external cost to dismantle, plug and abandon the wells in the future and federal and state regulatory requirements. The liability is discounted using an assumed credit-adjusted, risk-free interest rate.

Gain on disposal of property and equipment includes approximately

$6,000

and

$110,100

associated with non-cash settlements of asset retirement obligations during the

three

month periods ended

March 31, 2019

and

2018,

respectively.

Revenue from Contract with Customer [Policy Text Block]

I. Revenue Recognition – The Company accounts for revenue from contracts in accordance with Accounting Standards Update No. 2014 - 09, “Revenue from Contracts with Customers (Topic 606 )”. Revenues from contracts with customers are recognized when performance obligations are satisfied in accordance with contractual terms.

For the sale of crude oil and natural gas from operated properties, the Company generally considers each unit (BBL or MCF) to be a separate performance obligation. The transaction price

may

consist of fixed and variable consideration, in which the variable amount is determinable each production period and is recognized as revenue upon pickup/delivery of the crude oil or natural gas, which is the point in time that the customer obtains control of the crude oil or natural gas and the Company's performance obligation is satisfied.

Crude oil and natural gas sales derived from

third

party operated wells are recognized under similar terms as sales of crude oil and natural gas from operated properties and revenue is recognized at a point in time when the product is delivered, the purchaser obtains control and the Company's performance obligation is satisfied.

Crude oil and natural gas sales represent the Company's share of revenues, net of royalties and other revenue interests owned by other parties. When settling crude oil and natural gas on behalf of royalty owners or working interest owners, the Company is acting as an agent and thus reports the revenue on a net basis.

Based on the Company's judgment, the Company's performance obligations have been satisfied and an unconditional right to consideration exists at

March 31, 2019

and

December 31, 2018,

respectively; therefore, the Company recognized amounts due from contracts with customers as production accounts receivable within the Company’s consolidated balance sheets at

March 31, 2019

and

December 31, 2018,

respectively.

The Company utilizes the sales method to account for gas production volume imbalances. Under this method, revenue is recognized only when gas is produced and sold on the Company’s behalf. The Company had

no

material gas imbalances at

March 31, 2019

and

December 31, 2018,

respectively.

The Company participates (and

may

act as drilling contractor) with unaffiliated and affiliated joint venture partners, employees, including officers, and directors in the drilling, development and operation of jointly owned oil and gas properties. Each owner, including the Company, has an undivided interest in the jointly owned properties. Generally, the joint venture partners, employees and directors participate on the same drilling/development cost basis as the Company and, therefore,

no

revenue, expense or income is recognized on the drilling and development of the properties. Well management and operating revenues are derived from a variety of both verbal and written operating agreements with joint venture partners, and are recognized monthly as services are provided and properties are managed and operated. Other revenues consist of miscellaneous revenues that are recognized at the time services are rendered, the Company has a contractual right to such revenue and collection is reasonably assured.

Income Tax, Policy [Policy Text Block]

J. Income Taxes - Everflow is not a tax-paying entity and the net taxable income or loss, other than the taxable income or loss allocable to EEI, which is a C corporation owned by Everflow, will be allocated directly to its respective partners. The Company is not able to determine the net difference between the tax bases and the reported amounts of Everflow’s assets and liabilities due to separate elections that were made by owners of the working interests and limited partnership interests that comprised the Programs.

The Company believes that it has appropriate support for any tax positions taken and, as such, does

not

have any uncertain tax positions that are material to the financial statements. 

Earnings Per Share, Policy [Policy Text Block]

K. Allocation of Income and Per Unit Data - Under the terms of the limited partnership agreement, initially, 99% of revenues and costs were allocated to the Unitholders (the limited partners) and 1% of revenues and costs were allocated to the General Partner. Such allocation has changed and may change in the future due to Unitholders electing to exercise the Repurchase Right and select officers and employees electing to exercise options (see Note 3 ).

Earnings per limited partner Unit have been computed based on the weighted average number of Units outstanding during each period presented.

New Accounting Pronouncements, Policy [Policy Text Block]

L.

New Accounting Standards - The Company has reviewed all recently issued accounting standards in order to determine their effects, if any, on the consolidated financial statements. Based on that review, the Company believes that

none

of these standards will have a significant effect on current or future earnings or results of operations

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Note 2 - Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Notes Tables

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

	March 31,		December 31,
	2019		2018
Accounts Payable:
Production and related other	$	1,739,980	$	1,522,106
Other		295,929		299,150
Joint venture partner deposits		48,629		48,629
Total accounts payable	$	2,084,538	$	1,869,885
Accrued Expenses:
Current portion of asset retirement obligations	$	196,000	$	196,000
Other		137,800		55,100
Payroll and retirement plan contributions		137,707		692,083
Drilling		106,100		106,100
Federal, state and local taxes		12,555		35,064
Total accrued expenses	$	590,162	$	1,084,347

XML

Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Cash and Equivalents Maturity Period	90 days
OPERATIONAL ADVANCES	$ 2,267,913		$ 2,135,632
Related Party Deposit Liabilities	380,200		307,800
Noncash Settlements of Asset Retirement Obligations	6,000	$ 110,100
Gas Balancing Payable	$ 0		$ 0
Number of Uncertain Tax Positions	0
Limited Partner [Member]
Initial Percentage of Revenue and Cost Allocation	99.00%
General Partner [Member]
Initial Percentage of Revenue and Cost Allocation	1.00%
Minimum [Member]
Actual Processing Time for Sales Transaction	60 days
Maximum [Member]
Actual Processing Time for Sales Transaction	90 days

XML

Note 2 - Current Liabilities - Components of Accounts Payable and Accrued (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Accounts Payable:
Production and related other	$ 1,739,980	$ 1,522,106
Other	295,929	299,150
Joint venture partner deposits	48,629	48,629
Total accounts payable	2,084,538	1,869,885
Accrued Expenses:
Current portion of asset retirement obligations	196,000	196,000
Other	137,800	55,100
Payroll and retirement plan contributions	137,707	692,083
Drilling	106,100	106,100
Federal, state and local taxes	12,555	35,064
Total accrued expenses	$ 590,162	$ 1,084,347

XML

Note 3 - Partners' Equity (Details Textual) - $ / shares	1 Months Ended		6 Months Ended	12 Months Ended
	Apr. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Maximum percentage of units to be repurchased						10.00%
Percentage of Adjusted Book Value of Company Allocable to the Repurchase Right Per Unit						66.00%
Minimum Percentage of Outstanding Units Tendered to Use Prorated Method for Calculating Actual Number of Units Acquired						10.00%
Net Repurchase Price of Partner Unit		$ 0.11
Partners' Capital Account, Units, Treasury Units Purchased		68,261
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		30,000		0	0
Limited Partners' Capital Account, Units Outstanding		5,549,355				5,549,355	5,549,355
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance						0		0
Subsequent Event [Member]
Partners Equity Interim Distributions	$ 0.30
Forecast [Member]
Net Repurchase Price of Partner Unit			$ 1.50