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 quarter ended June 30, 2002
Commission File Number:
II-A: 0-16388 II-D: 0-16980 II-G: 0-17802
II-B: 0-16405 II-E: 0-17320 II-H: 0-18305
II-C: 0-16981 II-F: 0-17799
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
---------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
II-A 73-1295505 II-B 73-1303341
II-C 73-1308986 II-D 73-1329761
II-E 73-1324751 II-F 73-1330632
Oklahoma II-G 73-1336572 II-H 73-1342476
- ---------------------------- -------------------------------
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(918) 583-1791
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
------ ------
-1-
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 565,892 $ 414,467
Accounts receivable:
Oil and gas sales 587,329 396,257
General Partner (Note 2) 208,096 130,610
---------- ----------
Total current assets $1,361,317 $ 941,334
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,041,063 2,204,572
DEFERRED CHARGE 668,468 695,623
---------- ----------
$4,070,848 $3,841,529
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 192,440 $ 153,728
Accrued liability - other (Note 1) 26,672 73,800
Gas imbalance payable 96,299 96,299
---------- ----------
Total current liabilities $ 315,411 $ 323,827
ACCRUED LIABILITY $ 243,327 $ 243,327
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 235,447) ($ 285,152)
Limited Partners, issued and
outstanding, 484,283 units 3,747,557 3,559,527
---------- ----------
Total Partners' capital $3,512,110 $3,274,375
---------- ----------
$4,070,848 $3,841,529
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
REVENUES:
Oil and gas sales $ 979,840 $1,452,896
Interest income 854 9,603
Gain on sale of oil and gas
properties 193,272 43
---------- ----------
$1,173,966 $1,462,542
COSTS AND EXPENSES:
Lease operating $ 286,907 $ 303,840
Production tax 52,425 85,290
Depreciation, depletion, and
amortization of oil and gas
properties 80,362 83,678
General and administrative
(Note 2) 134,300 132,498
---------- ----------
$ 553,994 $ 605,306
---------- ----------
NET INCOME $ 619,972 $ 857,236
========== ==========
GENERAL PARTNER - NET INCOME $ 69,144 $ 92,294
========== ==========
LIMITED PARTNERS - NET INCOME $ 550,828 $ 764,942
========== ==========
NET INCOME per unit $ 1.14 $ 1.58
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
REVENUES:
Oil and gas sales $1,767,496 $3,139,007
Interest income 2,350 21,627
Gain on sale of oil and gas
properties 193,272 3,277
---------- ----------
$1,963,118 $3,163,911
COSTS AND EXPENSES:
Lease operating $ 708,631 $ 548,075
Production tax 94,335 195,681
Depreciation, depletion, and
amortization of oil and gas
properties 161,495 163,777
General and administrative
(Note 2) 289,402 283,580
---------- ----------
$1,253,863 $1,191,113
---------- ----------
NET INCOME $ 709,255 $1,972,798
========== ==========
GENERAL PARTNER - NET INCOME $ 85,225 $ 209,566
========== ==========
LIMITED PARTNERS - NET INCOME $ 624,030 $1,763,232
========== ==========
NET INCOME per unit $ 1.29 $ 3.64
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $709,255 $1,972,798
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 161,495 163,777
Gain on sale of oil and gas
properties ( 193,272) ( 3,277)
(Increase) decrease in accounts
receivable - oil and gas sales ( 191,072) 251,359
Decrease in deferred charge 27,155 -
Increase (decrease) in accounts
payable 38,712 ( 81,839)
Decrease in accrued liability -
other ( 47,128) -
Decrease in gas imbalance payable - ( 11,273)
Decrease in accrued liability - ( 10,552)
-------- ----------
Net cash provided by operating
activities $505,145 $2,280,993
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 16,591) ($ 129,049)
Proceeds from sale of oil and
gas properties 134,391 9,654
-------- ----------
Net cash provided (used) by investing
activities $117,800 ($ 119,395)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($471,520) ($2,181,799)
-------- ----------
Net cash used by financing activities ($471,520) ($2,181,799)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $151,425 ($ 20,201)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 414,467 1,070,734
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $565,892 $1,050,533
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 318,209 $ 262,153
Accounts receivable:
Oil and gas sales 438,966 323,116
General Partner (Note 2) 21,292 -
---------- ----------
Total current assets $ 778,467 $ 585,269
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,705,177 1,821,517
DEFERRED CHARGE 214,754 214,754
---------- ----------
$2,698,398 $2,621,540
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 148,375 $ 126,662
Gas imbalance payable 48,060 48,060
---------- ----------
Total current liabilities $ 196,435 $ 174,722
ACCRUED LIABILITY $ 47,436 $ 47,436
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 271,076) ($ 302,054)
Limited Partners, issued and
outstanding, 361,719 units 2,725,603 2,701,436
---------- ----------
Total Partners' capital $2,454,527 $2,399,382
---------- ----------
$2,698,398 $2,621,540
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $672,842 $1,103,829
Interest income 256 5,814
Gain on sale of oil and gas
properties 20,525 -
-------- ----------
$693,623 $1,109,643
COSTS AND EXPENSES:
Lease operating $202,113 $ 190,302
Production tax 39,825 59,608
Depreciation, depletion, and
amortization of oil and gas
properties 62,456 53,926
General and administrative
(Note 2) 101,499 99,312
-------- ----------
$405,893 $ 403,148
-------- ----------
NET INCOME $287,730 $ 706,495
======== ==========
GENERAL PARTNER - NET INCOME $ 34,369 $ 74,921
======== ==========
LIMITED PARTNERS - NET INCOME $253,361 $ 631,574
======== ==========
NET INCOME per unit $ .70 $ 1.75
======== ==========
UNITS OUTSTANDING 361,719 361,719
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
REVENUES:
Oil and gas sales $1,253,187 $2,433,197
Interest income 992 12,960
Gain on sale of oil and gas
properties 20,525 -
---------- ----------
$1,274,704 $2,446,157
COSTS AND EXPENSES:
Lease operating $ 518,793 $ 340,582
Production tax 71,435 136,606
Depreciation, depletion, and
amortization of oil and gas
properties 124,817 101,579
General and administrative
(Note 2) 220,435 216,031
---------- ----------
$ 935,480 $ 794,798
---------- ----------
NET INCOME $ 339,224 $1,651,359
========== ==========
GENERAL PARTNER - NET INCOME $ 45,057 $ 172,982
========== ==========
LIMITED PARTNERS - NET INCOME $ 294,167 $1,478,377
========== ==========
NET INCOME per unit $ .81 $ 4.09
========== ==========
UNITS OUTSTANDING 361,719 361,719
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $339,224 $1,651,359
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 124,817 101,579
Gain on sale of oil and gas
properties ( 20,525) -
(Increase) decrease in accounts
receivable - oil and gas sales ( 115,850) 184,181
Increase (decrease) in accounts
payable 21,713 ( 68,424)
-------- ----------
Net cash provided by operating
activities $349,379 $1,868,695
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 14,102) ($ 348,135)
Proceeds from sale of properties 4,858 -
-------- ----------
Net cash used by investing activities ($ 9,244) ($ 348,135)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($284,079) ($1,512,124)
-------- ----------
Net cash used by financing activities ($284,079) ($1,512,124)
-------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 56,056 $ 8,436
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 262,153 714,162
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $318,209 $ 722,598
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 188,875 $ 115,201
Accounts receivable:
Oil and gas sales 202,286 137,952
---------- ----------
Total current assets $ 391,161 $ 253,153
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 796,691 856,666
DEFERRED CHARGE 128,827 128,827
---------- ----------
$1,316,679 $1,238,646
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 57,854 $ 50,950
Gas imbalance payable 29,876 29,876
---------- ----------
Total current liabilities $ 87,730 $ 80,826
ACCRUED LIABILITY $ 29,477 $ 29,477
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 114,809) ($ 130,178)
Limited Partners, issued and
outstanding, 154,621 units 1,314,281 1,258,521
---------- ----------
Total Partners' capital $1,199,472 $1,128,343
---------- ----------
$1,316,679 $1,238,646
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- --------
REVENUES:
Oil and gas sales $336,986 $519,745
Interest income 202 3,478
Gain on sale of oil and
gas properties 1,014 739
-------- --------
$338,202 $523,962
COSTS AND EXPENSES:
Lease operating $ 72,453 $ 65,747
Production tax 21,016 32,767
Depreciation, depletion, and
amortization of oil and gas
properties 32,478 26,975
General and administrative
(Note 2) 46,076 43,363
-------- --------
$172,023 $168,852
-------- --------
NET INCOME $166,179 $355,110
======== ========
GENERAL PARTNER - NET INCOME $ 19,521 $ 37,591
======== ========
LIMITED PARTNERS - NET INCOME $146,658 $317,519
======== ========
NET INCOME per unit $ .95 $ 2.05
======== ========
UNITS OUTSTANDING 154,621 154,621
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $604,759 $1,117,021
Interest income 506 7,753
Gain on sale of oil and
gas properties 1,014 739
-------- ----------
$606,279 $1,125,513
COSTS AND EXPENSES:
Lease operating $199,907 $ 140,489
Production tax 37,538 74,244
Depreciation, depletion, and
amortization of oil and gas
properties 62,331 51,337
General and administrative
(Note 2) 103,926 102,139
-------- ----------
$403,702 $ 368,209
-------- ----------
NET INCOME $202,577 $ 757,304
======== ==========
GENERAL PARTNER - NET INCOME $ 25,817 $ 79,575
======== ==========
LIMITED PARTNERS - NET INCOME $176,760 $ 677,729
======== ==========
NET INCOME per unit $ 1.14 $ 4.38
======== ==========
UNITS OUTSTANDING 154,621 154,621
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $202,577 $757,304
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 62,331 51,337
Gain on sale of oil and gas
properties ( 1,014) ( 739)
(Increase) decrease in accounts
receivable - oil and gas sales ( 64,334) 86,001
Increase in accounts payable 6,904 1,816
Decrease in accrued liability - ( 10,837)
-------- --------
Net cash provided by operating
activities $206,464 $884,882
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 2,944) ($ 52,276)
Proceeds from sale of oil and
gas properties 1,602 739
-------- --------
Net cash used by investing
activities ($ 1,342) ($ 51,537)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($131,448) ($855,485)
-------- --------
Net cash used by financing
activities ($131,448) ($855,485)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 73,674 ($ 22,140)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 115,201 412,356
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $188,875 $390,216
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 453,501 $ 170,516
Accounts receivable:
Oil and gas sales 441,424 315,910
---------- ----------
Total current assets $ 894,925 $ 486,426
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,459,843 1,561,694
DEFERRED CHARGE 370,412 370,412
---------- ----------
$2,725,180 $2,418,532
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 119,817 $ 84,721
Payable to General Partner (Note 2) - 65,905
Gas imbalance payable 55,098 55,098
---------- ----------
Total current liabilities $ 174,915 $ 205,724
ACCRUED LIABILITY $ 112,500 $ 112,500
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 208,027) ($ 238,692)
Limited Partners, issued and
outstanding, 314,878 units 2,645,792 2,339,000
---------- ----------
Total Partners' capital $2,437,765 $2,100,308
---------- ----------
$2,725,180 $2,418,532
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $798,184 $1,115,535
Interest income 479 8,709
Gain on sale of oil and gas
properties 11,014 8,162
-------- ----------
$809,677 $1,132,406
COSTS AND EXPENSES:
Lease operating $158,759 $ 219,148
Production tax 45,894 72,072
Depreciation, depletion, and
amortization of oil and gas
properties 73,842 44,982
General and administrative
(Note 2) 88,945 86,744
-------- ----------
$367,440 $ 422,946
-------- ----------
NET INCOME $442,237 $ 709,460
======== ==========
GENERAL PARTNER - NET INCOME $ 50,822 $ 74,123
======== ==========
LIMITED PARTNERS - NET INCOME $391,415 $ 635,337
======== ==========
NET INCOME per unit $ 1.24 $ 2.02
======== ==========
UNITS OUTSTANDING 314,878 314,878
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
REVENUES:
Oil and gas sales $1,335,760 $2,441,111
Interest income 1,103 22,836
Gain on sale of oil and gas
properties 11,014 8,162
---------- ----------
$1,347,877 $2,472,109
COSTS AND EXPENSES:
Lease operating $ 418,082 $ 381,100
Production tax 76,772 166,149
Depreciation, depletion, and
amortization of oil and gas
properties 133,712 93,888
General and administrative
(Note 2) 194,071 190,565
---------- ----------
$ 822,637 $ 831,702
---------- ----------
NET INCOME $ 525,240 $1,640,407
========== ==========
GENERAL PARTNER - NET INCOME $ 64,448 $ 170,207
========== ==========
LIMITED PARTNERS - NET INCOME $ 460,792 $1,470,200
========== ==========
NET INCOME per unit $ 1.46 $ 4.67
========== ==========
UNITS OUTSTANDING 314,878 314,878
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $525,240 $1,640,407
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 133,712 93,888
Gain on sale of oil and gas
properties ( 11,014) ( 8,162)
(Increase) decrease in accounts
receivable - oil and gas sales ( 125,514) 193,103
Increase in accounts payable 35,096 6,772
Decrease in payable to General
Partner ( 65,905) -
Decrease in accrued liability - ( 13,406)
-------- ----------
Net cash provided by operating
activities $491,615 $1,912,602
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 37,663) ($ 32,100)
Proceeds from sale of oil and gas
properties 16,816 8,162
-------- ----------
Net cash used by investing activities ($ 20,847) ($ 23,938)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($187,783) ($2,397,636)
-------- ----------
Net cash used by financing activities ($187,783) ($2,397,636)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $282,985 ($ 508,972)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 170,516 1,432,990
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $453,501 $ 924,018
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 165,693 $ 242,032
Accounts receivable:
Oil and gas sales 305,163 244,365
General Partner (Note 2) 22,189 -
---------- ----------
Total current assets $ 493,045 $ 486,397
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,454,969 1,391,297
DEFERRED CHARGE 206,554 206,554
---------- ----------
$2,154,568 $2,084,248
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 74,287 $ 56,002
Payable to General Partner (Note 2) - 115,045
Gas imbalance payable 28,035 28,035
---------- ----------
Total current liabilities $ 102,322 $ 199,082
ACCRUED LIABILITY $ 26,344 $ 26,344
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 136,883) ($ 162,380)
Limited Partners, issued and
outstanding, 228,821 units 2,162,785 2,021,202
---------- ----------
Total Partners' capital $2,025,902 $1,858,822
---------- ----------
$2,154,568 $2,084,248
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $473,556 $757,605
Interest income 27 5,792
Gain (loss) on sale of oil and
gas properties 20,604 ( 924)
-------- --------
$494,187 $762,473
COSTS AND EXPENSES:
Lease operating $ 94,630 $112,848
Production tax 36,153 54,018
Depreciation, depletion, and
amortization of oil and gas
properties 57,585 50,944
General and administrative
(Note 2) 67,074 63,452
-------- --------
$255,442 $281,262
-------- --------
NET INCOME $238,745 $481,211
======== ========
GENERAL PARTNER - NET INCOME $ 29,054 $ 52,127
======== ========
LIMITED PARTNERS - NET INCOME $209,691 $429,084
======== ========
NET INCOME per unit $ .92 $ 1.88
======== ========
UNITS OUTSTANDING 228,821 228,821
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- -----------
REVENUES:
Oil and gas sales $872,051 $1,690,610
Interest income 775 11,830
Gain (loss) on sale of oil and
gas properties 20,604 ( 999)
-------- ----------
$893,430 $1,701,441
COSTS AND EXPENSES:
Lease operating $221,437 $ 216,890
Production tax 66,512 125,566
Depreciation, depletion, and
amortization of oil and gas
properties 118,352 96,703
General and administrative
(Note 2) 148,066 142,992
-------- ----------
$554,367 $ 582,151
-------- ----------
NET INCOME $339,063 $1,119,290
======== ==========
GENERAL PARTNER - NET INCOME $ 44,480 $ 119,449
======== ==========
LIMITED PARTNERS - NET INCOME $294,583 $ 999,841
======== ==========
NET INCOME per unit $ 1.29 $ 4.37
======== ==========
UNITS OUTSTANDING 228,821 228,821
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $339,063 $1,119,290
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 118,352 96,703
(Gain) loss on sale of oil and gas
properties ( 20,604) 999
(Increase) decrease in accounts
receivable - oil and gas sales ( 60,798) 147,740
Increase in accounts payable 18,285 5,898
Decrease in payable to General
Partner ( 115,045) -
Decrease in accrued liability - ( 3,955)
-------- ----------
Net cash provided by operating
activities $279,253 $1,366,675
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($183,609) ($ 12,268)
-------- ----------
Net cash used by investing activities ($183,609) ($ 12,268)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($171,983) ($1,279,318)
-------- ----------
Net cash used by financing activities ($171,983) ($1,279,318)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 76,339) $ 75,089
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 242,032 511,025
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $165,693 $ 586,114
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 252,381 $ 278,738
Accounts receivable:
Oil and gas sales 293,199 229,071
General Partner (Note 2) 54,227 -
---------- ----------
Total current assets $ 599,807 $ 507,809
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,361,115 1,424,064
DEFERRED CHARGE 38,188 38,188
---------- ----------
$1,999,110 $1,970,061
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 51,056 $ 49,662
Gas imbalance payable 7,953 7,953
---------- ----------
Total current liabilities $ 59,009 $ 57,615
ACCRUED LIABILITY $ 13,875 $ 13,875
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 98,140) ($ 118,848)
Limited Partners, issued and
outstanding, 171,400 units 2,024,366 2,017,419
---------- ----------
Total Partners' capital $1,926,226 $1,898,571
---------- ----------
$1,999,110 $1,970,061
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-22-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $426,001 $778,828
Interest income 372 4,874
Gain (loss) on sale of oil and
gas properties 50,440 ( 978)
-------- --------
$476,813 $782,724
COSTS AND EXPENSES:
Lease operating $ 67,941 $ 72,829
Production tax 25,653 51,894
Depreciation, depletion, and
amortization of oil and gas
properties 45,298 61,846
General and administrative
(Note 2) 50,854 47,100
-------- --------
$189,746 $233,669
-------- --------
NET INCOME $287,067 $549,055
======== ========
GENERAL PARTNER - NET INCOME $ 32,747 $ 59,984
======== ========
LIMITED PARTNERS - NET INCOME $254,320 $489,071
======== ========
NET INCOME per unit $ 1.49 $ 2.86
======== ========
UNITS OUTSTANDING 171,400 171,400
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $842,559 $1,599,714
Interest income 1,107 9,949
Gain (loss) on sale of oil and
gas properties 50,440 ( 1,162)
-------- ----------
$894,106 $1,608,501
COSTS AND EXPENSES:
Lease operating $182,047 $ 155,604
Production tax 53,096 106,455
Depreciation, depletion, and
amortization of oil and gas
properties 98,801 113,913
General and administrative
(Note 2) 114,908 110,589
-------- ----------
$448,852 $ 486,561
-------- ----------
NET INCOME $445,254 $1,121,940
======== ==========
GENERAL PARTNER - NET INCOME $ 53,307 $ 121,451
======== ==========
LIMITED PARTNERS - NET INCOME $391,947 $1,000,489
======== ==========
NET INCOME per unit $ 2.29 $ 5.84
======== ==========
UNITS OUTSTANDING 171,400 171,400
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-24-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $445,254 $1,121,940
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 98,801 113,913
(Gain) loss on sale of oil and
gas properties ( 50,440) 1,162
(Increase) decrease in accounts
receivable - oil and gas sales ( 64,128) 81,361
Decrease in deferred charge - 2,422
Increase in accounts payable 1,394 3,793
-------- ----------
Net cash provided by operating
activities $430,881 $1,324,591
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 40,130) ($ 60,753)
Proceeds from sale of oil and
gas properties 491 -
-------- ----------
Net cash used by investing
activities ($ 39,639) ($ 60,753)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($417,599) ($1,116,828)
-------- ----------
Net cash used by financing
activities ($417,599) ($1,116,828)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 26,357) $ 147,010
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 278,738 441,154
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $252,381 $ 588,164
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 538,971 $ 625,720
Accounts receivable:
Oil and gas sales 621,855 484,681
General Partner (Note 2) 113,404 -
---------- ----------
Total current assets $1,274,230 $1,110,401
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,927,683 3,065,609
DEFERRED CHARGE 83,736 83,736
---------- ----------
$4,285,649 $4,259,746
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 108,995 $ 105,862
Gas imbalance payable 17,264 17,264
---------- ----------
Total current liabilities $ 126,259 $ 123,126
ACCRUED LIABILITY $ 31,820 $ 31,820
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 102,440) ($ 146,206)
Limited Partners, issued and
outstanding, 372,189 units 4,230,010 4,251,006
---------- ----------
Total Partners' capital $4,127,570 $4,104,800
---------- ----------
$4,285,649 $4,259,746
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-26-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ------------
REVENUES:
Oil and gas sales $ 905,139 $1,659,073
Interest income 868 10,539
Gain (loss) on sale of oil and
gas properties 105,409 ( 2,350)
---------- ----------
$1,011,416 $1,667,262
COSTS AND EXPENSES:
Lease operating $ 144,832 $ 156,314
Production tax 54,832 111,179
Depreciation, depletion, and
amortization of oil and gas
properties 97,606 131,785
General and administrative
(Note 2) 104,586 101,425
---------- ----------
$ 401,856 $ 500,703
---------- ----------
NET INCOME $ 609,560 $1,166,559
========== ==========
GENERAL PARTNER - NET INCOME $ 69,654 $ 127,463
========== ==========
LIMITED PARTNERS - NET INCOME $ 539,906 $1,039,096
========== ==========
NET INCOME per unit $ 1.45 $ 2.79
========== ==========
UNITS OUTSTANDING 372,189 372,189
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-27-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ------------
REVENUES:
Oil and gas sales $1,786,842 $3,403,123
Interest income 2,639 21,417
Gain (loss) on sale of oil and
gas properties 105,409 ( 2,735)
---------- ----------
$1,894,890 $3,421,805
COSTS AND EXPENSES:
Lease operating $ 387,951 $ 333,117
Production tax 113,061 227,356
Depreciation, depletion, and
amortization of oil and gas
properties 212,791 242,833
General and administrative
(Note 2) 227,874 221,171
---------- ----------
$ 941,677 $1,024,477
---------- ----------
NET INCOME $ 953,213 $2,397,328
========== ==========
GENERAL PARTNER - NET INCOME $ 114,209 $ 259,446
========== ==========
LIMITED PARTNERS - NET INCOME $ 839,004 $2,137,882
========== ==========
NET INCOME per unit $ 2.25 $ 5.74
========== ==========
UNITS OUTSTANDING 372,189 372,189
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-28-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $953,213 $2,397,328
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 212,791 242,833
(Gain) loss on sale of oil and gas
properties ( 105,409) 2,735
(Increase) decrease in accounts
receivable - oil and gas sales ( 137,174) 171,414
Decrease in deferred charge - 5,061
Increase in accounts payable 3,133 8,126
-------- ----------
Net cash provided by operating
activities $926,554 $2,827,497
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 83,919) ($ 133,912)
Proceeds from sale of oil and
gas properties 1,059 -
-------- ----------
Net cash used by investing
activities ($ 82,860) ($ 133,912)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($930,443) ($2,381,185)
-------- ----------
Net cash used by financing
activities ($930,443) ($2,381,185)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 86,749) $ 312,400
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 625,720 934,304
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $538,971 $1,246,704
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-29-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 123,951 $ 136,988
Accounts receivable:
Oil and gas sales 146,878 114,762
General Partner (Note 2) 26,230 -
---------- ----------
Total current assets $ 297,059 $ 251,750
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 688,983 721,143
DEFERRED CHARGE 19,936 19,936
---------- ----------
$1,005,978 $ 992,829
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 26,238 $ 25,473
Gas imbalance payable 4,266 4,266
---------- ----------
Total current liabilities $ 30,504 $ 29,739
ACCRUED LIABILITY $ 6,430 $ 6,430
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 54,822) ($ 65,089)
Limited Partners, issued and
outstanding, 91,711 units 1,023,866 1,021,749
---------- ----------
Total Partners' capital $ 969,044 $ 956,660
---------- ----------
$1,005,978 $ 992,829
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-30-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $214,575 $395,727
Interest income 155 2,365
Gain (loss) on sale of oil and
gas properties 24,403 ( 677)
-------- --------
$239,133 $397,415
COSTS AND EXPENSES:
Lease operating $ 34,731 $ 37,945
Production tax 13,104 26,737
Depreciation, depletion, and
amortization of oil and gas
properties 22,738 30,812
General and administrative
(Note 2) 29,528 25,531
-------- --------
$100,101 $121,025
-------- --------
NET INCOME $139,032 $276,390
======== ========
GENERAL PARTNER - NET INCOME $ 15,934 $ 30,175
======== ========
LIMITED PARTNERS - NET INCOME $123,098 $246,215
======== ========
NET INCOME per unit $ 1.35 $ 2.68
======== ========
UNITS OUTSTANDING 91,711 91,711
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-31-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $423,019 $811,088
Interest income 484 4,905
Gain (loss) on sale of oil and
gas properties 24,403 ( 766)
-------- --------
$447,906 $815,227
COSTS AND EXPENSES:
Lease operating $ 93,077 $ 80,470
Production tax 26,926 54,571
Depreciation, depletion, and
amortization of oil and gas
properties 49,484 56,842
General and administrative
(Note 2) 70,061 66,684
-------- --------
$239,548 $258,567
-------- --------
NET INCOME $208,358 $556,660
======== ========
GENERAL PARTNER - NET INCOME $ 25,241 $ 60,291
======== ========
LIMITED PARTNERS - NET INCOME $183,117 $496,369
======== ========
NET INCOME per unit $ 2.00 $ 5.41
======== ========
UNITS OUTSTANDING 91,711 91,711
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-32-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $208,358 $556,660
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 49,484 56,842
(Gain) loss on sale of oil and gas
properties ( 24,403) 766
(Increase) decrease in accounts
receivable - oil and gas sales ( 32,116) 41,293
Decrease in deferred charge - 1,189
Increase in accounts payable 765 1,974
-------- --------
Net cash provided by operating
activities $202,088 $658,724
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 19,409) ($ 33,930)
Proceeds from sale of oil and gas
properties 258 -
-------- --------
Net cash used by investing activities ($ 19,151) ($ 33,930)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($195,974) ($559,011)
-------- --------
Net cash used by financing activities ($195,974) ($559,011)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 13,037) $ 65,783
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 136,988 229,651
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $123,951 $295,434
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-33-
GEODYNE ENERGY INCOME PROGRAM II LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
JUNE 30, 2002
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of June 30, 2002, combined statements of
operations for the three and six months ended June 30, 2002 and 2001, and
combined statements of cash flows for the six months ended June 30, 2002
and 2001 have been prepared by Geodyne Resources, Inc., the General
Partner of the limited partnerships, without audit. Each limited
partnership is a general partner in the related Geodyne Production
Partnership in which Geodyne Resources, Inc. serves as the managing
partner. Unless the context indicates otherwise, all references to a
"Partnership" or the "Partnerships" are references to the limited
partnership and its related production partnership, collectively, and all
references to the "General Partner" are references to the general partner
of the limited partnerships and the managing partner of the production
partnerships, collectively. In the opinion of management the financial
statements referred to above include all necessary adjustments, consisting
of normal recurring adjustments, to present fairly the combined financial
position at June 30, 2002, the combined results of operations for the six
months ended June 30, 2002 and 2001, and the combined cash flows for the
six months ended June 30, 2002 and 2001.
Information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The accompanying interim
financial statements should be read in conjunction with the Partnerships'
Annual Report on Form 10-K filed for the year ended December 31, 2001. The
results of operations for the period ended June 30, 2002 are not
necessarily indicative of the results to be expected for the full year.
The Limited Partners' net income or loss per unit is based upon each $100
initial capital contribution.
-34-
OIL AND GAS PROPERTIES
----------------------
The Partnerships follow the successful efforts method of accounting for
their oil and gas properties. Under the successful efforts method, the
Partnerships capitalize all property acquisition costs and development
costs incurred in connection with the further development of oil and gas
reserves. Property acquisition costs include costs incurred by the
Partnerships or the General Partner to acquire producing properties,
including related title insurance or examination costs, commissions,
engineering, legal and accounting fees, and similar costs directly related
to the acquisitions, plus an allocated portion, of the General Partner's
property screening costs. The acquisition cost to the Partnerships of
properties acquired by the General Partner is adjusted to reflect the net
cash results of operations, including interest incurred to finance the
acquisition, for the period of time the properties are held by the General
Partner prior to their transfer to the Partnerships. Leasehold impairment
is recognized based upon an individual property assessment and exploratory
experience. Upon discovery of commercial reserves, leasehold costs are
transferred to producing properties.
Depletion of the costs of producing oil and gas properties, amortization
of related intangible drilling and development costs, and depreciation of
tangible lease and well equipment are computed on the unit-of-production
method. The Partnerships' depletion, depreciation, and amortization
includes estimated dismantlement and abandonment costs, net of estimated
salvage value.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss reflected in income. When less than complete units of depreciable
property are retired or sold, the proceeds are credited to oil and gas
properties.
ACCRUED LIABILITY - OTHER
-------------------------
The Accrued Liability - Other at June 30, 2002 and December 31, 2001 for
the II-A Partnership represents a charge accrued for the payment of a
judgment related to plugging liabilities, which judgment is currently
under appeal. The decrease in the Accrued Liability - Other from December
31, 2001 to June 30, 2002 was due to a partial settlement of this
judgment, which settlement was paid in June 2002.
-35-
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' Partnership Agreements provide for reimbursement to the
General Partner for all direct general and administrative expenses and for
the general and administrative overhead applicable to the Partnerships
based on an allocation of actual costs incurred. During the three months
ended June 30, 2002, the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
II-A $6,857 $127,443
II-B 6,309 95,190
II-C 5,387 40,689
II-D 6,082 82,863
II-E 6,858 60,216
II-F 5,749 45,105
II-G 6,642 97,944
II-H 5,393 24,135
During the six months ended June 30, 2002, the following payments were
made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
II-A $34,516 $254,886
II-B 30,055 190,380
II-C 22,548 81,378
II-D 28,345 165,726
II-E 27,634 120,432
II-F 24,698 90,210
II-G 31,986 195,888
II-H 21,791 48,270
Affiliates of the Partnerships operate certain of the Partnerships'
properties and their policy is to bill the Partnerships for all customary
charges and cost reimbursements associated with their activities.
ACCOUNTS RECEIVABLE - GENERAL PARTNER
The Accounts Receivable - General Partner at December 31, 2001 for the
II-A Partnership represents accrued proceeds from a related party for the
sale of certain oil and gas properties during December 2001. Such amount
was received in January 2002. In addition, the Accounts Receivable -
-36-
General Partner at June 30, 2002 for the II-A, II-B, II-E, II-F, II-G, and
II-H Partnerships represents accrued proceeds from a related party for the
sale of certain oil and gas properties during the six months ended June
2002. Such amounts were received in July 2002.
PAYABLE TO GENERAL PARTNER
The payable to General Partner at December 31, 2001 for the II-D and II-E
Partnerships represents litigation costs and settlement of a liability.
Such amounts were repaid during the first quarter of 2002.
-37-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
- -----------------------------------------------
This Quarterly Report contains certain forward-looking statements. The
words "anticipate", "believe", "expect", "plan", "intend", "estimate",
"project", "could", "may" and similar expressions are intended to identify
forward-looking statements. Such statements reflect management's current
views with respect to future events and financial performance. This
Quarterly Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions are
management's efforts to accurately reflect the condition and operation of
the Partnerships.
Use of forward-looking statements and estimates and assumptions involve
risks and uncertainties which include, but are not limited to, the
volatility of oil and gas prices, the uncertainty of reserve information,
the operating risk associated with oil and gas properties (including the
risk of personal injury, death, property damage, damage to the well or
producing reservoir, environmental contamination, and other operating
risks), the prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the general
economic climate, the supply and price of foreign imports of oil and gas,
the level of consumer product demand, and the price and availability of
alternative fuels. Should one or more of these risks or uncertainties
occur or should estimates or underlying assumptions prove incorrect,
actual conditions or results may vary materially and adversely from those
stated, anticipated, believed, estimated, and otherwise indicated.
GENERAL
- -------
The Partnerships are engaged in the business of acquiring and operating
producing oil and gas properties located in the continental United States.
In general, a Partnership acquired producing properties and did not engage
in development drilling or enhanced recovery projects, except as an
incidental part of the management of the producing properties acquired.
Therefore, the economic life of each Partnership, and its related
Production Partnership, is limited to the period of time required to fully
produce its acquired oil and gas reserves. The net proceeds from the oil
and gas operations are distributed to the Limited Partners and the General
Partner in accordance with the terms of the Partnerships' partnership
agreements.
-38-
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
II-A July 22, 1987 $48,428,300
II-B October 14, 1987 36,171,900
II-C January 14, 1988 15,462,100
II-D May 10, 1988 31,487,800
II-E September 27, 1988 22,882,100
II-F January 5, 1989 17,140,000
II-G April 10, 1989 37,218,900
II-H May 17, 1989 9,171,100
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
Net proceeds from the operations less necessary operating capital are
distributed to the Limited Partners on a quarterly basis. Revenues and net
proceeds of a Partnership are largely dependent upon the volumes of oil
and gas sold and the prices received for such oil and gas. While the
General Partner cannot predict future pricing trends, it believes the
working capital available as of June 30, 2002 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
Occasional expenditures for new wells or well recompletions or workovers,
however, may reduce or eliminate cash available for a particular quarterly
distribution. During the six months ended June 30, 2002, capital
expenditures for the II-E Partnership totaled $183,609. These expenditures
were primarily due to the drilling of the Ernest Frey #1 and Mordello
Vincent #7 wells located in Acadia Parish, Louisiana, in each of which the
II-E Partnership owns a working interest of approximately 5.8%. During the
six months ended June 30, 2002, capital expenditures for the II-F, II-G,
and II-H Partnerships totaled $40,130, $83,919, and $19,409, respectively.
These expenditures were primarily due to a recompletion of the CH Weir B
well located in Lea County, New Mexico. The II-F, II-G, and II-H
Partnerships own working interests of approximately 4.0%, 8.3%, and 1.9%,
respectively, in this well.
-39-
The II-A Partnership's Statement of Cash Flows for the six months ended
June 30, 2002 includes proceeds from the sale of certain oil and gas
properties during December 2001. These proceeds were included in the
Partnership's cash distributions paid in February 2002.
NEW ACCOUNTING PRONOUNCEMENTS
Below is a brief description of Financial Accounting Standards ("FAS")
recently issued by the Financial Accounting Standards Board ("FASB") which
may have an impact on the Partnerships' future results of operations and
financial position.
In July 2001, the FASB issued FAS No. 143, "Accounting for Asset
Retirement Obligations", which is effective for fiscal years beginning
after June 15, 2002 (January 1, 2003 for the Partnerships). FAS No. 143
will require the recording of the fair value of liabilities associated
with the retirement of long-lived assets (mainly plugging and abandonment
costs for the Partnerships' depleted wells), in the period in which the
liabilities are incurred (at the time the wells are drilled). Management
has not yet determined the effect of adopting this statement on the
Partnerships' financial condition or results of operations.
In August 2001, the FASB issued FAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets", which is effective for
fiscal years beginning after December 15, 2001 (January 1, 2002 for the
Partnerships). This statement supersedes FAS No. 121 "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
Of". The provisions of FAS No. 144, as they relate to the Partnerships,
are essentially the same as FAS No. 121 and thus are not expected to have
a significant effect on the Partnerships financial condition or results of
operations.
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction with the
analysis of results of operations provided below. The most important
variables affecting the Partnerships' revenues are the prices received for
the sale of oil and gas and the volumes of oil and gas produced. The
Partnerships' production is mainly natural gas, so such pricing and
volumes are the most significant factors.
-40-
Historically, oil and gas prices have been volatile and are likely to
continue to be volatile. As a result, forecasting future prices is subject
to great uncertainty and inaccuracy. Substantially all of the
Partnerships' gas reserves are being sold on the "spot market". Prices on
the spot market are subject to wide seasonal and regional pricing
fluctuations due to the highly competitive nature of the spot market. Such
spot market sales are generally short-term in nature and are dependent
upon the obtaining of transportation services provided by pipelines. It is
likewise difficult to predict production volumes. However, oil and gas are
depleting assets, so it can be expected that production levels will
decline over time. Gas prices in early 2001 were significantly higher than
the Partnerships' historical average. This was attributable to the higher
prices for crude oil, a substitute fuel in some markets, and reduced
production due to lower capital investments in 1998 and 1999. However,
prices for both oil and gas soon declined and were relatively lower in
late 2001 and early 2002 as a result of the declining economy and
relatively mild winter weather. Recently, prices of oil and gas have
improved, to some extent due to unrest in the Middle East. It is not
possible to accurately predict future trends.
II-A PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
-------- ----------
Oil and gas sales $979,840 $1,452,896
Oil and gas production expenses $339,332 $ 389,130
Barrels produced 15,756 18,573
Mcf produced 210,636 194,696
Average price/Bbl $ 23.34 $ 24.64
Average price/Mcf $ 2.91 $ 5.11
As shown in the table above, total oil and gas sales decreased $473,056
(32.6%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately (i) $465,000
was related to a decrease in the average price of gas sold and (ii)
$69,000 was related to a decrease in volumes of oil sold. These decreases
were partially offset by an increase of approximately $81,000 related to
an increase in volumes of gas sold. Volumes of oil sold decreased 2,817
barrels, while volumes of gas sold increased 15,940 Mcf for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. The decrease in volumes of oil sold was primarily due to the sale of
several wells during early 2002. Average oil and gas prices decreased to
$23.34 per
-41-
barrel and $2.91 per Mcf, respectively, for the three months ended June
30, 2002 from $24.64 per barrel and $5.11 per Mcf, respectively, for the
three months ended June 30, 2001.
The II-A Partnership sold certain oil and gas properties during the three
months ended June 30, 2002 and recognized a $193,272 gain on such sales.
No such material sales occurred during the three months ended June 30,
2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $49,798 (12.8%) for the three months ended
June 30, 2002 as compared to the three months ended June 30, 2001. This
decrease was primarily due to (i) workover expenses incurred on several
wells during the three months ended June 30, 2001 and (ii) a decrease in
production taxes associated with the decrease in oil and gas sales. As a
percentage of oil and gas sales, these expenses increased to 34.6% for the
three months ended June 30, 2002 from 26.8% for the three months ended
June 30, 2001. This percentage increase was primarily due to the decreases
in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $3,316 (4.0%) for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. As a percentage of oil
and gas sales, this expense increased to 8.2% for the three months ended
June 30, 2002 from 5.8% for the three months ended June 30, 2001. This
percentage increase was primarily due to decreases in the average prices
of oil and gas sold.
General and administrative expenses increased $1,802 (1.4%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
13.7% for the three months ended June 30, 2002 from 9.1% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
-42-
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
-------------------------
2002 2001
---------- ----------
Oil and gas sales $1,767,496 $3,139,007
Oil and gas production expenses $ 802,966 $ 743,756
Barrels produced 31,367 37,300
Mcf produced 425,067 375,381
Average price/Bbl $ 20.95 $ 25.71
Average price/Mcf $ 2.61 $ 5.81
As shown in the table above, total oil and gas sales decreased $1,371,511
(43.7%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately (i) $149,000
and $1,358,000, respectively, were related to decreases in the average
prices of oil and gas sold and (ii) $153,000 was related to a decrease in
volumes of oil sold. These decreases were partially offset by an increase
of approximately $288,000 related to an increase in volumes of gas sold.
Volumes of oil sold decreased 5,933 barrels, while volumes of gas sold
increased 49,686 Mcf for the six months ended June 30, 2002 as compared to
the six months ended June 30, 2001. The decrease in volumes of oil sold
was primarily due to (i) the sale of several wells during early 2002 and
(ii) normal declines in production. The increase in volumes of gas sold
was primarily due to (i) a negative prior period gas balancing adjustment
on one significant well during the six months ended June 30, 2001, (ii)
the II-A Partnership receiving an increased percentage of sales on another
significant well during the six months ended June 30, 2002 due to gas
balancing, and (iii) a positive prior period gas balancing adjustment on
another significant well during the six months ended June 30, 2002. As of
the date of this Quarterly Report, management expects the increased sales
percentage due to gas balancing to continue for the foreseeable future,
thereby continuing to contribute to an increase in volumes of gas sold for
the II-A Partnership. Average oil and gas prices decreased to $20.95 per
barrel and $2.61 per Mcf, respectively, for the six months ended June 30,
2002 from $25.71 per barrel and $5.81 per Mcf, respectively, for the six
months ended June 30, 2001.
The II-A Partnership sold certain oil and gas properties during the six
months ended June 30, 2002 and recognized a $193,272 gain on such sales.
Sales of oil and gas properties during the six months ended June 30, 2001
resulted in similar gains of $3,277.
-43-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $59,210 (8.0%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. This increase
was primarily due to workover expenses incurred on several wells during
the six months ended June 30, 2002. This increase was partially offset by
(i) a decrease in production taxes associated with the decrease in oil and
gas sales, (ii) workover expenses incurred on several other wells during
the six months ended June 30, 2001, and (iii) a partial reversal during
the six months ended June 30, 2002 of approximately $22,000 (due to a
partial post-judgment settlement) of a charge previously accrued for a
judgment. As a percentage of oil and gas sales, these expenses increased
to 45.4% for the six months ended June 30, 2002 from 23.7% for the six
months ended June 30, 2001. This percentage increase was primarily due to
the decreases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $2,282 (1.4%) for the six months ended June 30, 2002 as compared
to the six months ended June 30, 2001. As a percentage of oil and gas
sales, this expense increased to 9.1% for the six months ended June 30,
2002 from 5.2% for the six months ended June 30, 2001. This percentage
increase was primarily due to the decreases in the average prices of oil
and gas sold.
General and administrative expenses increased $5,822 (2.1%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
16.4% for the six months ended June 30, 2002 from 9.0% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $54,785,357 or 113.13% of the Limited Partners' capital
contributions.
-44-
II-B PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
-------- ----------
Oil and gas sales $672,842 $1,103,829
Oil and gas production expenses $241,938 $ 249,910
Barrels produced 9,894 15,040
Mcf produced 166,381 168,603
Average price/Bbl $ 24.12 $ 25.35
Average price/Mcf $ 2.61 $ 4.29
As shown in the table above, total oil and gas sales decreased $430,987
(39.0%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately (i) $279,000
was related to a decrease in the average price of gas sold and (ii)
$130,000 was related to a decrease in volumes of oil sold. Volumes of oil
and gas sold decreased 5,146 barrels and 2,222 Mcf, respectively, for the
three months ended June 30, 2002 as compared to the three months ended
June 30, 2001. The decrease in volumes of oil sold was primarily due to
(i) a positive prior period volume adjustment made by the operator on one
significant well during the three months ended June 30, 2001 and (ii)
normal declines in production. Average oil and gas prices decreased to
$24.12 per barrel and $2.61 per Mcf, respectively, for the three months
ended June 30, 2002 from $25.35 per barrel and $4.29 per Mcf,
respectively, for the three months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $7,972 (3.2%) for the three months ended June
30, 2002 as compared to the three months ended June 30, 2001. This
decrease was primarily due to (i) positive prior period lease operating
expense adjustments made by the operators on two significant wells during
the three months ended June 30, 2001 and (ii) a decrease in production
taxes associated with the decrease in oil and gas sales. These decreases
were partially offset by workover expenses incurred on two other
significant wells during the three months ended June 30, 2002. As a
percentage of oil and gas sales, these expenses increased to 36.0% for the
three months ended June 30, 2002 from 22.6% for the three months ended
June 30, 2001. This percentage increase was primarily due to the decreases
in the average prices of oil and gas sold.
-45-
Depreciation, depletion, and amortization of oil and gas properties
increased $8,530 (15.8%) for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. This increase was
primarily due to downward revisions in the estimates of remaining oil and
gas reserves. This increase was partially offset by the decreases in
volumes of oil and gas sold. As a percentage of oil and gas sales, this
expense increased to 9.3% for the three months ended June 30, 2002 from
4.9% for the three months ended June 30, 2001. This percentage increase
was primarily due to the decreases in the average prices of oil and gas
sold.
General and administrative expenses increased $2,187 (2.2%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
15.1% for the three months ended June 30, 2002 from 9.0% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
-------------------------
2002 2001
---------- ----------
Oil and gas sales $1,253,187 $2,433,197
Oil and gas production expenses $ 590,228 $ 477,188
Barrels produced 21,334 29,131
Mcf produced 323,141 312,790
Average price/Bbl $ 21.49 $ 25.77
Average price/Mcf $ 2.46 $ 5.38
As shown in the table above, total oil and gas sales decreased $1,180,010
(48.5%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately (i) $943,000
was related to a decrease in the average price of gas sold and (ii)
$201,000 was related to a decrease in volumes of oil sold. Volumes of oil
sold decreased 7,797 barrels, while volumes of gas sold increased 10,351
Mcf for the six months ended June 30, 2002 as compared to the six months
ended June 30, 2001. The decrease in volumes of oil sold was primarily due
to (i) a positive prior period volume adjustment made by the operator on
one significant well during the six months ended June 30, 2001 and (ii)
normal declines in production. Average oil and gas prices decreased to
$21.49 per barrel and $2.46 per Mcf, respectively, for the six months
ended June 30, 2002 from $25.77 per barrel and $5.38 per Mcf,
respectively, for the six months ended June 30, 2001.
-46-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $113,040 (23.7%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. This increase
was primarily due to workover expenses incurred on several wells during
the six months ended June 30, 2002. This increase was partially offset by
(i) a decrease in production taxes associated with the decrease in oil and
gas sales and (ii) positive prior period lease operating expense
adjustments made by the operators on two significant wells during the six
months ended June 30, 2001. As a percentage of oil and gas sales, these
expenses increased to 47.1% for the six months ended June 30, 2002 from
19.6% for the six months ended June 30, 2001. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $23,238 (22.9%) for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. This increase was
primarily due to downward revisions in the estimates of remaining oil and
gas reserves. This increase was partially offset by the decrease in
volumes of oil sold. As a percentage of oil and gas sales, this expense
increased to 10.0% for the six months ended June 30, 2002 from 4.2% for
the six months ended June 30, 2001. This percentage increase was primarily
due to the decreases in the average prices of oil and gas sold.
General and administrative expenses increased $4,404 (2.0%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
17.6% for the six months ended June 30, 2002 from 8.9% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $39,594,916 or 109.46% of the Limited Partners' capital
contributions.
-47-
II-C PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
-------- --------
Oil and gas sales $336,986 $519,745
Oil and gas production expenses $ 93,469 $ 98,514
Barrels produced 4,055 3,474
Mcf produced 92,358 88,510
Average price/Bbl $ 23.07 $ 25.63
Average price/Mcf $ 2.64 $ 4.87
As shown in the table above, total oil and gas sales decreased $182,759
(35.2%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately $206,000 was
related to a decrease in the average price of gas sold. This decrease was
partially offset by an increase of approximately $19,000 related to an
increase in volumes of gas sold. Volumes of oil and gas sold increased 581
barrels and 3,848 Mcf, respectively, for the three months ended June 30,
2002 as compared to the three months ended June 30, 2001. The increase in
volumes of oil sold was primarily due to the successful completion of two
new wells during late 2001. Average oil and gas prices decreased to $23.07
per barrel and $2.64 per Mcf, respectively, for the three months ended
June 30, 2002 from $25.63 per barrel and $4.87 per Mcf, respectively, for
the three months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $5,045 (5.1%) for the three months ended June
30, 2002 as compared to the three months ended June 30, 2001. As a
percentage of oil and gas sales, these expenses increased to 27.7% for the
three months ended June 30, 2002 from 19.0% for the three months ended
June 30, 2001. This percentage increase was primarily due to the decreases
in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $5,503 (20.4%) for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. This increase was
primarily due to (i) downward revisions in the estimates of remaining oil
reserves and (ii) the increases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense increased to 9.6% for the
three months ended June 30, 2002 from 5.2% for the three months ended June
30, 2001. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
General and administrative expenses increased $2,713 (6.3%) for the three
months ended June 30, 2002 as compared to the three months ended
June 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 13.7% for the three months ended June 30, 2002 from 8.3% for
the three months ended June 30, 2001. This percentage increase was
primarily due to the decrease in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
-------------------------
2002 2001
-------- ----------
Oil and gas sales $604,759 $1,117,021
Oil and gas production expenses $237,445 $ 214,733
Barrels produced 7,737 7,543
Mcf produced 177,520 162,864
Average price/Bbl $ 21.90 $ 25.81
Average price/Mcf $ 2.45 $ 5.66
As shown in the table above, total oil and gas sales decreased $512,262
(45.9%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately $570,000 was
related to a decrease in the average price of gas sold. This decrease was
partially offset by an increase of approximately $83,000 related to an
increase in volumes of gas sold. Volumes of oil and gas sold increased 194
barrels and 14,656 Mcf, respectively, for the six months ended June 30,
2002 as compared to the six months ended June 30, 2001. Average oil and
gas prices decreased to $21.90 per barrel and $2.45 per Mcf, respectively,
for the six months ended June 30, 2002 from $25.81 per barrel and $5.66
per Mcf, respectively, for the six months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $22,712 (10.6%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. This increase
was primarily due to (i) workover expenses incurred on two significant
wells during the six months ended June 30, 2002 and (ii) an increase in
lease operating expenses associated with the increases in volumes of oil
and gas sold. These increases were partially offset by a decrease in
production taxes associated with the decrease in oil and gas sales. As a
percentage of oil and gas sales, these expenses increased to 39.3% for the
six months ended June 30, 2002 from 19.2% for the six months ended June
30, 2001. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
-48-
Depreciation, depletion, and amortization of oil and gas properties
increased $10,994 (21.4%) for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. This increase was
primarily due to (i) downward revisions in the estimates of remaining oil
reserves and (ii) the increases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense increased to 10.3% for the
six months ended June 30, 2002 from 4.6% for the six months ended June 30,
2001. This percentage increase was primarily due to the decreases in the
average prices of oil and gas sold.
General and administrative expenses increased $1,787 (1.7%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
17.2% for the six months ended June 30, 2002 from 9.1% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $18,294,686 or 118.32% of the Limited Partners' capital
contributions.
II-D PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
-------- ----------
Oil and gas sales $798,184 $1,115,535
Oil and gas production expenses $204,653 $ 291,220
Barrels produced 12,000 2,725
Mcf produced 210,201 179,225
Average price/Bbl $ 21.79 $ 23.89
Average price/Mcf $ 2.55 $ 5.86
As shown in the table above, total oil and gas sales decreased $317,351
(28.4%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately $695,000 was
related to a decrease in the average price of gas sold. This decrease was
partially offset by increases of approximately $222,000 and $182,000,
respectively, related to increases in volumes of oil and gas sold. Volumes
of oil and gas sold increased 9,275 barrels and 30,976 Mcf, respectively,
for the three months ended June 30, 2002 as compared to the three months
ended June 30, 2001. The increase in volumes of oil sold was primarily due
to (i) the successful completion of one new well during late 2001 and (ii)
an increase in production on another significant well due to
-49-
the successful workover of that well during mid 2001. The increase in
volumes of gas sold was primarily due to (i) the successful completion of
two other new wells during late 2001, (ii) an increase in production on
one significant well due to the successful workover of that well during
mid 2001, and (iii) an increase in production on another significant well
following successful repairs made during mid 2001. These increases were
partially offset by the II-D Partnership receiving a reduced percentage of
sales on one significant well during the three months ended June 30, 2002
due to gas balancing. As of the date of this Quarterly Report, management
expects the reduced sales percentage due to gas balancing to continue for
the foreseeable future, thereby continuing to contribute to a decrease in
volumes of gas sold for the II-D Partnership. Average oil and gas prices
decreased to $21.79 per barrel and $2.55 per Mcf, respectively, for the
three months ended June 30, 2002 from $23.89 per barrel and $5.86 per Mcf,
respectively, for the three months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $86,567 (29.7%) for the three months ended
June 30, 2002 as compared to the three months ended June 30, 2001. This
decrease was primarily due to (i) workover expenses incurred on several
wells during the three months ended June 30, 2001 and (ii) a decrease in
production taxes associated with the decrease in oil and gas sales. These
decreases were partially offset by (i) a negative prior period lease
operating expense adjustment made by the operator on one significant well
during the three months ended June 30, 2001 and (ii) workover expenses
incurred on another significant well during the three months ended June
30, 2002. As a percentage of oil and gas sales, these expenses decreased
to 25.6% for the three months ended June 30, 2002 from 26.1% for the three
months ended June 30, 2001.
Depreciation, depletion, and amortization of oil and gas properties
increased $28,860 (64.2%) for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. This increase was
primarily due to (i) the increases in volumes of oil and gas sold and (ii)
downward revisions in the estimates of remaining oil and gas reserves. As
a percentage of oil and gas sales, this expense increased to 9.3% for the
three months ended June 30, 2002 from 4.0% for the three months ended June
30, 2001. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
-50-
General and administrative expenses increased $2,201 (2.5%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
11.1% for the three months ended June 30, 2002 from 7.8% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
-------------------------
2002 2001
---------- ----------
Oil and gas sales $1,335,760 $2,441,111
Oil and gas production expenses $ 494,854 $ 547,249
Barrels produced 18,382 7,787
Mcf produced 400,710 361,489
Average price/Bbl $ 20.97 $ 25.35
Average price/Mcf $ 2.37 $ 6.21
As shown in the table above, total oil and gas sales decreased $1,105,351
(45.3%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately $1,537,000 was
related to a decrease in the average price of gas sold. This decrease was
partially offset by increases of approximately $269,000 and $243,000,
respectively, related to increases in volumes of oil and gas sold. Volumes
of oil and gas sold increased 10,595 barrels and 39,221 Mcf, respectively,
for the six months ended June 30, 2002 as compared to the six months ended
June 30, 2001. The increase in volumes of oil sold was primarily due to
(i) the successful completion of one new well during late 2001 and (ii) an
increase in production on another significant well due to the successful
workover of that well during mid 2001. The increase in volumes of gas sold
was primarily due to (i) the successful completion of two other new wells
during late 2001, (ii) a negative prior period gas balancing adjustment on
one significant well during the six months ended June 30, 2001, and (iii)
an increase in production on another significant well following successful
repairs made during mid 2001. These increases were partially offset by (i)
the II-D Partnership receiving a reduced percentage of sales on one
significant well during the six months ended June 30, 2002 due to gas
balancing and (ii) normal declines in production. As of the date of this
Quarterly Report, management expects the reduced sales percentage due to
gas balancing to continue for the foreseeable future, thereby continuing
to contribute to a decrease in volumes of gas sold for the II-D
Partnership. Average oil and gas prices decreased to $20.97 per barrel and
$2.37 per Mcf, respectively, for the six months ended June 30, 2002 from
$25.35 per barrel and $6.21 per Mcf, respectively, for the six months
ended June 30, 2001.
-51-
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $52,395 (9.6%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. This decrease
was primarily due to (i) a decrease in production taxes associated with
the decrease in oil and gas sales and (ii) workover expenses incurred on
several wells during the six months ended June 30, 2001. These decreases
were partially offset by (i) workover expenses incurred on two other
significant wells during the six months ended June 30, 2002 and (ii) a
positive prior period lease operating expense adjustment made by the
operator on one significant well during the six months ended June 30,
2002. As a percentage of oil and gas sales, these expenses increased to
37.0% for the six months ended June 30, 2002 from 22.4% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $39,824 (42.4%) for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. This increase was
primarily due to (i) the increases in volumes of oil and gas sold and (ii)
downward revisions in the estimates of remaining oil and gas reserves. As
a percentage of oil and gas sales, this expense increased to 10.0% for the
six months ended June 30, 2002 from 3.8% for the six months ended June 30,
2001. This percentage increase was primarily due to the decreases in the
average prices of oil and gas sold.
General and administrative expenses increased $3,506 (1.8%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
14.5% for the six months ended June 30, 2002 from 7.8% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $37,455,903 or 118.95% of Limited Partners' capital
contributions.
-52-
II-E PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
-------- --------
Oil and gas sales $473,556 $757,605
Oil and gas production expenses $130,783 $166,866
Barrels produced 6,217 6,504
Mcf produced 115,576 127,098
Average price/Bbl $ 23.92 $ 26.55
Average price/Mcf $ 2.81 $ 4.60
As shown in the table above, total oil and gas sales decreased $284,049
(37.5%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately (i) $207,000
was related to a decrease in the average price of gas sold and (ii)
$53,000 was related to a decrease in volumes of gas sold. Volumes of oil
and gas sold decreased 287 barrels and 11,522 Mcf, respectively, for the
three months ended June 30, 2002 as compared to the three months ended
June 30, 2001. Average oil and gas prices decreased to $23.92 per barrel
and $2.81 per Mcf, respectively, for the three months ended June 30, 2002
from $26.55 per barrel and $4.60 per Mcf, respectively, for the three
months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $36,083 (21.6%) for the three months ended
June 30, 2002 as compared to the three months ended June 30, 2001. This
decrease was primarily due to (i) a decrease in production taxes
associated with the decrease in oil and gas sales, (ii) a decrease in
repair and maintenance expenses incurred on one significant well during
the three months ended June 30, 2002 as compared to the three months ended
June 30, 2001, and (iii) workover expenses incurred on another significant
well during the three months ended June 30, 2001. As a percentage of oil
and gas sales, these expenses increased to 27.6% for the three months
ended June 30, 2002 from 22.0% for the three months ended June 30, 2001.
This percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $6,641 (13.0%) for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. This increase was
primarily due to downward revisions in the estimates of remaining oil
reserves. This increase was partially offset by the decreases in volumes
of oil and gas sold. As a percentage of oil and gas sales, this
-53-
expense increased to 12.2% for the three months ended June 30, 2002 from
6.7% for the three months ended June 30, 2001. This percentage increase
was primarily due to the decreases in the average prices of oil and gas
sold.
General and administrative expenses increased $3,622 (5.7%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
14.2% for the three months ended June 30, 2002 from 8.4% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
-------------------------
2002 2001
-------- ----------
Oil and gas sales $872,051 $1,690,610
Oil and gas production expenses $287,949 $ 342,456
Barrels produced 12,856 12,165
Mcf produced 237,069 242,344
Average price/Bbl $ 21.77 $ 27.28
Average price/Mcf $ 2.50 $ 5.61
As shown in the table above, total oil and gas sales decreased $818,559
(48.4%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately $737,000 was
related to a decrease in the average price of gas sold. Volumes of oil
sold increased 691 barrels, while volumes of gas sold decreased 5,275 Mcf
for the six months ended June 30, 2002 as compared to the six months ended
June 30, 2001. Average oil and gas prices decreased to $21.77 per barrel
and $2.50 per Mcf, respectively, for the six months ended June 30, 2002
from $27.28 per barrel and $5.61 per Mcf, respectively, for the six months
ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $54,507 (15.9%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. This decrease
was primarily due to a decrease in production taxes associated with the
decrease in oil and gas sales. This decrease was partially offset by a
negative prior period lease operating expense adjustment on one
significant well during the six months ended June 30, 2001. As a
percentage of oil and gas sales, these expenses increased to 33.0% for the
six months ended June 30, 2002 from 20.3% for the six months ended June
30, 2001. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
-54-
Depreciation, depletion, and amortization of oil and gas properties
increased $21,649 (22.4%) for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. This increase was
primarily due to downward revisions in the estimates of remaining oil
reserves. As a percentage of oil and gas sales, this expense increased to
13.6% for the six months ended June 30, 2002 from 5.7% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold.
General and administrative expenses increased $5,074 (3.5%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
17.0% for the six months ended June 30, 2002 from 8.5% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $26,947,574 or 117.77% of Limited Partners' capital
contributions.
II-F PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
-------- --------
Oil and gas sales $426,001 $778,828
Oil and gas production expenses $ 93,594 $124,723
Barrels produced 6,518 8,389
Mcf produced 101,716 128,069
Average price/Bbl $ 23.50 $ 26.29
Average price/Mcf $ 2.68 $ 4.36
As shown in the table above, total oil and gas sales decreased $352,827
(45.3%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately (i) $171,000
was related to a decrease in the average price of gas sold and (ii)
$49,000 and $115,000, respectively, were related to decreases in volumes
of oil and gas sold. Volumes of oil and gas sold decreased 1,871 barrels
and 26,353 Mcf, respectively, for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. The decrease in volumes
of oil sold was primarily due to a positive prior period volume adjustment
made by the purchaser on one significant well during the three months
ended June 30, 2001. The decrease in volumes of gas sold was primarily due
to (i) positive prior period volume
-55-
adjustments made by the purchasers on two significant wells during the
three months ended June 30, 2001, (ii) a positive prior period gas
balancing adjustment on another significant well during the three months
ended June 30, 2001, and (iii) normal declines in production. Average oil
and gas prices decreased to $23.50 per barrel and $2.68 per Mcf,
respectively, for the three months ended June 30, 2002 from $26.29 per
barrel and $4.36 per Mcf, respectively, for the three months ended June
30, 2001.
The II-F Partnership sold certain oil and gas properties during the three
months ended June 30, 2002 and recognized a $50,440 gain on such sales. No
such material sales occurred during the three months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $31,129 (25.0%) for the three months ended
June 30, 2002 as compared to the three months ended June 30, 2001. This
decrease was primarily due to a decrease in production taxes associated
with the decrease in oil and gas sales. As a percentage of oil and gas
sales, these expenses increased to 22.0% for the three months ended June
30, 2002 from 16.0% for the three months ended June 30, 2001. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $16,548 (26.8%) for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. This decrease was
primarily due to the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense increased to 10.6% for the
three months ended June 30, 2002 from 7.9% for the three months ended June
30, 2001. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
General and administrative expenses increased $3,754 (8.0%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
11.9% for the three months ended June 30, 2002 from 6.0% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
-56-
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
-------------------------
2002 2001
-------- ----------
Oil and gas sales $842,559 $1,599,714
Oil and gas production expenses $235,143 $ 262,059
Barrels produced 14,645 15,079
Mcf produced 219,283 238,121
Average price/Bbl $ 21.08 $ 27.07
Average price/Mcf $ 2.43 $ 5.00
As shown in the table above, total oil and gas sales decreased $757,155
(47.3%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately (i) $88,000
and $563,000, respectively, were related to decreases in the average
prices of oil and gas sold and (ii) $94,000 was related to a decrease in
volumes of gas sold. Volumes of oil and gas sold decreased 434 barrels and
18,838 Mcf, respectively, for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. Average oil and gas prices
decreased to $21.08 per barrel and $2.43 per Mcf, respectively, for the
six months ended June 30, 2002 from $27.07 per barrel and $5.00 per Mcf,
respectively, for the six months ended June 30, 2001.
The II-F Partnership sold certain oil and gas properties during the six
months ended June 30, 2002 and recognized a $50,440 gain on such sales. No
such material sales occurred during the six months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $26,916 (10.3%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. This decrease
was primarily due to a decrease in production taxes associated with the
decrease in oil and gas sales. This decrease was partially offset by
workover expenses incurred on several wells during the six months ended
June 30, 2002. As a percentage of oil and gas sales, these expenses
increased to 27.9% for the six months ended June 30, 2002 from 16.4% for
the six months ended June 30, 2001. This percentage increase was primarily
due to the decreases in the average prices of oil and gas sold.
-57-
Depreciation, depletion, and amortization of oil and gas properties
decreased $15,112 (13.3%) for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. This decrease was
primarily due to (i) upward revisions in the estimates of remaining gas
reserves and (ii) the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense increased to 11.7% for the
six months ended June 30, 2002 from 7.1% for the six months ended June 30,
2001. This percentage increase was primarily due to the decreases in the
average prices of oil and gas sold.
General and administrative expenses increased $4,319 (3.9%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
13.6% for the six months ended June 30, 2002 from 6.9% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $21,327,051 or 124.43% of Limited Partners' capital
contributions.
II-G PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
-------- ----------
Oil and gas sales $905,139 $1,659,073
Oil and gas production expenses $199,664 $ 267,493
Barrels produced 13,676 17,607
Mcf produced 216,741 272,690
Average price/Bbl $ 23.49 $ 26.29
Average price/Mcf $ 2.69 $ 4.39
As shown in the table above, total oil and gas sales decreased $753,934
(45.4%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately (i) $367,000
was related to a decrease in the average price of gas sold and (ii)
$103,000 and $245,000, respectively, were related to decreases in volumes
of oil and gas sold. Volumes of oil and gas sold decreased 3,931 barrels
and 55,949 Mcf, respectively, for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. The decrease in volumes
of oil sold was primarily due to a positive prior period volume adjustment
made by the purchaser on one significant well during the three months
-58-
ended June 30, 2001. The decrease in volumes of gas sold was primarily due
to (i) positive prior period volume adjustments made by the purchasers on
two significant wells during the three months ended June 30, 2001, (ii) a
positive prior period gas balancing adjustment on another significant well
during the three months ended June 30, 2001, and (iii) normal declines in
production. Average oil and gas prices decreased to $23.49 per barrel and
$2.69 per Mcf, respectively, for the three months ended June 30, 2002 from
$26.29 per barrel and $4.39 per Mcf, respectively, for the three months
ended June 30, 2001.
The II-G Partnership sold certain oil and gas properties during the three
months ended June 30, 2002 and recognized a $105,409 gain on such sales.
No such material sales occurred during the three months ended June 30,
2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $67,829 (25.4%) for the three months ended
June 30, 2002 as compared to the three months ended June 30, 2001. This
decrease was primarily due to a decrease in production taxes associated
with the decrease in oil and gas sales. As a percentage of oil and gas
sales, these expenses increased to 22.1% for the three months ended June
30, 2002 from 16.1% for the three months ended June 30, 2001. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $34,179 (25.9%) for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. This decrease was
primarily due to the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense increased to 10.8% for the
three months ended June 30, 2002 from 7.9% for the three months ended June
30, 2001. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
General and administrative expenses increased $3,161 (3.1%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
11.6% for the three months ended June 30, 2002 from 6.1% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
-59-
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
-------------------------
2002 2001
---------- ----------
Oil and gas sales $1,786,842 $3,403,123
Oil and gas production expenses $ 501,012 $ 560,473
Barrels produced 30,710 31,623
Mcf produced 467,143 507,390
Average price/Bbl $ 21.07 $ 27.07
Average price/Mcf $ 2.44 $ 5.02
As shown in the table above, total oil and gas sales decreased $1,616,281
(47.5%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately (i) $184,000
and $1,205,000, respectively, were related to decreases in the average
prices of oil and gas sold and (ii) $202,000 was related to a decrease in
volumes of gas sold. Volumes of oil and gas sold decreased 913 barrels and
40,247 Mcf, respectively, for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. Average oil and gas prices
decreased to $21.07 per barrel and $2.44 per Mcf, respectively, for the
six months ended June 30, 2002 from $27.07 per barrel and $5.02 per Mcf,
respectively, for the six months ended June 30, 2001.
The II-G Partnership sold certain oil and gas properties during the six
months ended June 30, 2002 and recognized a $105,409 gain on such sales.
No such material sales occurred during the six months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $59,461 (10.6%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. This decrease
was primarily due to a decrease in production taxes associated with the
decrease in oil and gas sales. This decrease was partially offset by
workover expenses incurred on several wells during the six months ended
June 30, 2002. As a percentage of oil and gas sales, these expenses
increased to 28.0% for the six months ended June 30, 2002 from 16.5% for
the six months ended June 30, 2001. This percentage increase was primarily
due to the decreases in the average prices of oil and gas sold.
-60-
Depreciation, depletion, and amortization of oil and gas properties
decreased $30,042 (12.4%) for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. This decrease was
primarily due to (i) the decreases in volumes of oil and gas sold and (ii)
upward revisions in the estimates of remaining gas reserves. As a
percentage of oil and gas sales, this expense increased to 11.9% for the
six months ended June 30, 2002 from 7.1% for the six months ended June 30,
2001. This percentage increase was primarily due to the decreases in the
average prices of oil and gas sold.
General and administrative expenses increased $6,703 (3.0%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
12.8% for the six months ended June 30, 2002 from 6.5% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $44,437,371 or 119.39% of Limited Partners' capital
contributions.
II-H PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
-------- --------
Oil and gas sales $214,575 $395,727
Oil and gas production expenses $ 47,835 $ 64,682
Barrels produced 3,187 4,094
Mcf produced 51,938 65,181
Average price/Bbl $ 23.46 $ 26.28
Average price/Mcf $ 2.69 $ 4.42
As shown in the table above, total oil and gas sales decreased $181,152
(45.8%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately (i) $90,000
was related to a decrease in the average price of gas sold and (ii)
$24,000 and $59,000, respectively, were related to decreases in volumes of
oil and gas sold. Volumes of oil and gas sold decreased 907 barrels and
13,243 Mcf, respectively, for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. The decrease in volumes
of oil sold was primarily due to a positive prior period volume adjustment
made by the purchaser on one significant well during the three months
-61-
ended June 30, 2001. The decrease in volumes of gas sold was primarily due
to (i) positive prior period volume adjustments made by the purchasers on
two significant wells during the three months ended June 30, 2001, (ii) a
positive prior period gas balancing adjustment on another significant well
during the three months ended June 30, 2001, and (iii) normal declines in
production. Average oil and gas prices decreased to $23.46 per barrel and
$2.69 per Mcf, respectively, for the three months ended June 30, 2002 from
$26.28 per barrel and $4.42 per Mcf, respectively, for the three months
ended June 30, 2001.
The II-H Partnership sold certain oil and gas properties during the three
months ended June 30, 2002 and recognized a $24,403 gain on such sales. No
such material sales occurred during the three months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $16,847 (26.0%) for the three months ended
June 30, 2002 as compared to the three months ended June 30, 2001. This
decrease was primarily due to a decrease in production taxes associated
with the decrease in oil and gas sales. As a percentage of oil and gas
sales, these expenses increased to 22.3% for the three months ended June
30, 2002 from 16.3% for the three months ended June 30, 2001. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $8,074 (26.2%) for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. This decrease was
primarily due to the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense increased to 10.6% for the
three months ended June 30, 2002 from 7.8% for the three months ended June
30, 2001. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
General and administrative expenses increased $3,997 (15.7%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. This increase was primarily due to (i) a change in allocation of
audit fees among the II-H Partnership and other affiliated partnerships
and (ii) an increase in professional fees. As a percentage of oil and gas
sales, these expenses increased to 13.8% for the three months ended June
30, 2002 from 6.5% for the three months ended June 30, 2001. This
percentage increase was primarily due to the decrease in oil and gas
sales.
-62-
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
-------------------------
2002 2001
-------- --------
Oil and gas sales $423,019 $811,088
Oil and gas production expenses $120,003 $135,041
Barrels produced 7,141 7,352
Mcf produced 111,791 121,447
Average price/Bbl $ 21.06 $ 27.07
Average price/Mcf $ 2.44 $ 5.04
As shown in the table above, total oil and gas sales decreased $388,069
(47.8%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately (i) $43,000
and $291,000, respectively, were related to decreases in the average
prices of oil and gas sold and (ii) $49,000 was related to a decrease in
volumes of gas sold. Volumes of oil and gas sold decreased 211 barrels and
9,656 Mcf, respectively, for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. Average oil and gas prices
decreased to $21.06 per barrel and $2.44 per Mcf, respectively, for the
six months ended June 30, 2002 from $27.07 per barrel and $5.04 per Mcf,
respectively, for the six months ended June 30, 2001.
The II-H Partnership sold certain oil and gas properties during the six
months ended June 30, 2002 and recognized a $24,403 gain on such sales. No
such material sales occurred during the six months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $15,038 (11.1%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. This decrease
was primarily due to a decrease in production taxes associated with the
decrease in oil and gas sales. This decrease was partially offset by
workover expenses incurred on several wells during the six months ended
June 30, 2002. As a percentage of oil and gas sales, these expenses
increased to 28.4% for the six months ended June 30, 2002 from 16.6% for
the six months ended June 30, 2001. This percentage increase was primarily
due to the decreases in the average prices of oil and gas sold.
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Depreciation, depletion, and amortization of oil and gas properties
decreased $7,358 (12.9%) for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. This decrease was
primarily due to (i) the decreases in volumes of oil and gas sold and (ii)
upward revisions in the estimates of remaining gas reserves. As a
percentage of oil and gas sales, this expense increased to 11.7% for the
six months ended June 30, 2002 from 7.0% for the six months ended June 30,
2001. This percentage increase was primarily due to the decreases in the
average prices of oil and gas sold.
General and administrative expenses increased $3,377 (5.1%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
16.6% for the six months ended June 30, 2002 from 8.2% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $10,340,364 or 112.75% of Limited Partners' capital
contributions.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
A lawsuit styled Xplor Energy Operating Co. v. The Newton Corp, et al.,
Case No. 99-04-01960-CV was filed on May 12, 1999 in the 284th Judicial District
Court of Montgomery County, Texas against Samson. The Plaintiff had acquired at
auction the interests of the II-A Partnership and other owners in the State
87-S1 well. The lawsuit alleged that Samson and others were the record owners of
the lease when it expired and therefore were responsible for the costs of
plugging and abandoning the well. Plaintiff sought to recover the Defendants'
proportionate share of the costs to plug and abandon the well along with
attorneys' fees and interest. The Defendants denied liability and trial was held
on August 6, 2001. At the conclusion of the trial the Court awarded the
Plaintiff $447,245.55. On January 15, 2002 the Defendants filed an appeal of the
matter with the Court of Appeals, Fifth District of Texas, Dallas, Texas, Case
No. 05-02-00070-CV. Samson, on behalf of the II-A Partnership and others,
intends to vigorously pursue this appeal. In connection with this appeal, the
Defendants filed an appellate bond in the amount of $491,970.10, which consists
of $86,444.12 for damages, $360,801.43 for costs and attorneys' fees, and
$44,724.55 for estimated post-judgment interest. The II-A Partnership had a
working interest in the plugged well and its' portion of the judgment and
estimated post-judgment interest is approximately $74,000.
On April 23, 2002 the II-A Partnership entered into a settlement agreement
with Xplor Energy Operating Company thereby settling for $24,750 the portion of
the judgment which is in favor of Xplor. The appeal is still ongoing with
respect to the portion of the judgment which is in favor of The Newton
Corporation. The II-A Partnership's portion of the remaining judgment and
estimated post-judgment interest are approximately $27,000.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
99.1 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-A Partnership.
99.2 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-B Partnership.
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99.3 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-C Partnership.
99.4 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-D Partnership.
99.5 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-E Partnership.
99.6 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-F Partnership.
99.7 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-G Partnership.
99.8 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-H Partnership.
(b) Reports on Form 8-K.
None.
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SIGNATURES
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.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: August 13, 2002 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: August 13, 2002 By: /s/Craig D. Loseke
--------------------------------
(Signature)
Craig D. Loseke
Chief Accounting Officer
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INDEX TO EXHIBITS
-----------------
Exh.
No. Exhibit
- ---- -------
99.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-A.
99.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-B.
99.3 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-C.
99.4 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-D.
99.5 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-E.
99.6 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-F.
99.7 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-G.
99.8 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-H.
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