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, 2003
Commission File Number:
I-D: 0-15831 I-E: 0-15832 I-F: 0-15833
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
--------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
I-D 73-1265223
I-E 73-1270110
Oklahoma I-F 73-1292669
- ---------------------------- -------------------------------
(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
------ ------
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).
Yes No X
------ ------
-1-
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2003 2002
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $272,830 $171,131
Accounts receivable:
Oil and gas sales 171,184 110,658
-------- --------
Total current assets $444,014 $281,789
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 427,871 393,450
DEFERRED CHARGE 89,670 89,670
-------- --------
$961,555 $764,909
======== ========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 17,631 $ 28,784
Gas imbalance payable 27,206 27,206
-------- --------
Total current liabilities $ 44,837 $ 55,990
LONG-TERM LIABILITIES:
Accrued liability $ 39,024 $ 39,024
Asset retirement obligation
(Note 1) 28,810 -
-------- --------
Total long-term liabilities $ 67,834 $ 39,024
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 12,769) ($ 22,566)
Limited Partners, issued and
outstanding, 7,195 units 861,653 692,461
-------- --------
Total Partners' capital $848,884 $669,895
-------- --------
$961,555 $764,909
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
-------- --------
REVENUES:
Oil and gas sales $296,147 $202,124
Interest income 266 248
Loss on abandonment ( 498) -
-------- --------
$295,915 $202,372
COSTS AND EXPENSES:
Lease operating $ 25,744 $ 29,303
Production tax 19,457 11,784
Depreciation, depletion, and
amortization of oil and gas
properties 7,158 13,178
General and administrative
(Note 2) 29,318 25,003
-------- --------
$ 81,677 $ 79,268
-------- --------
NET INCOME $214,238 $123,104
======== ========
GENERAL PARTNER - NET INCOME $ 33,168 $ 20,274
======== ========
LIMITED PARTNERS - NET INCOME $181,070 $102,830
======== ========
NET INCOME per unit $ 25.16 $ 14.30
======== ========
UNITS OUTSTANDING 7,195 7,195
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
-------- --------
REVENUES:
Oil and gas sales $564,851 $354,471
Interest income 548 731
Gain on abandonment 20 -
-------- --------
$565,419 $355,202
COSTS AND EXPENSES:
Lease operating $ 73,988 $ 75,776
Production tax 37,950 21,156
Depreciation, depletion, and
amortization of oil and gas
properties 16,692 26,232
General and administrative
(Note 2) 61,076 59,512
-------- --------
$189,706 $182,676
-------- --------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $375,713 $172,526
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) 1,099 -
-------- --------
NET INCOME $376,812 $172,526
======== ========
GENERAL PARTNER - NET INCOME $ 58,620 $ 29,442
======== ========
LIMITED PARTNERS - NET INCOME $318,192 $143,084
======== ========
NET INCOME per unit $ 44.22 $ 19.89
======== ========
UNITS OUTSTANDING 7,195 7,195
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $376,812 $172,526
Adjustments to reconcile net
income to net cash provided
by operating activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) ( 1,099) -
Depreciation, depletion, and
amortization of oil and gas
properties 16,692 26,232
Gain on abandonments ( 20) -
Increase in accounts receivable -
oil and gas sales ( 60,526) ( 48,690)
Increase (decrease) in accounts
payable ( 11,153) 6,422
-------- --------
Net cash provided by operating
activities $320,706 $156,490
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 21,184) ($ 6,241)
Proceeds from sale of oil and
gas properties - 50,250
-------- --------
Net cash provided (used) by investing
activities ($ 21,184) $ 44,009
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($197,823) ($223,457)
-------- --------
Net cash used by financing activities ($197,823) ($223,457)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $101,699 ($ 22,958)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 171,131 148,852
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $272,830 $125,894
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2003 2002
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,864,033 $1,098,557
Accounts receivable:
Oil and gas sales 1,027,062 700,458
---------- ----------
Total current assets $2,891,095 $1,799,015
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,465,531 2,206,391
DEFERRED CHARGE 480,060 480,060
---------- ----------
$5,836,686 $4,485,466
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 152,347 $ 228,879
Accrued liability - other (Note 1) 88,892 88,892
Gas imbalance payable 105,422 105,422
---------- ----------
Total current liabilities $ 346,661 $ 423,193
LONG-TERM LIABILITIES:
Accrued liability $ 204,802 $ 204,802
Asset retirement obligation
(Note 1) 278,494 -
---------- ----------
Total long-term liabilities $ 483,296 $ 204,802
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 31,148) ($ 92,930)
Limited Partners, issued and
outstanding, 41,839 units 5,037,877 3,950,401
---------- ----------
Total Partners' capital $5,006,729 $3,857,471
---------- ----------
$5,836,686 $4,485,466
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- ----------
REVENUES:
Oil and gas sales $1,966,923 $1,162,692
Interest income 2,025 1,536
---------- ----------
$1,968,948 $1,164,228
COSTS AND EXPENSES:
Lease operating $ 210,589 $ 202,597
Production tax 116,754 67,699
Depreciation, depletion, and
amortization of oil and gas
properties 39,761 91,905
General and administrative
(Note 2) 128,332 122,776
---------- ----------
$ 495,436 $ 484,977
---------- ----------
NET INCOME $1,473,512 $ 679,251
========== ==========
GENERAL PARTNER - NET INCOME $ 226,290 $ 114,524
========== ==========
LIMITED PARTNERS - NET INCOME $1,247,222 $ 564,727
========== ==========
NET INCOME per unit $ 29.81 $ 13.50
========== ==========
UNITS OUTSTANDING 41,839 41,839
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- ----------
REVENUES:
Oil and gas sales $3,549,374 $2,068,984
Interest income 3,903 4,062
---------- ----------
$3,553,277 $2,073,046
COSTS AND EXPENSES:
Lease operating $ 540,217 $ 540,957
Production tax 218,502 111,944
Depreciation, depletion, and
amortization of oil and gas
properties 108,544 191,851
General and administrative
(Note 2) 261,366 264,552
---------- ----------
$1,128,629 $1,109,304
---------- ----------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $2,424,648 $ 963,742
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) 4,178 -
---------- ----------
NET INCOME $2,428,826 $ 963,742
========== ==========
GENERAL PARTNER - NET INCOME $ 378,350 $ 170,811
========== ==========
LIMITED PARTNERS - NET INCOME $2,050,476 $ 792,931
========== ==========
NET INCOME per unit $ 49.01 $ 18.95
========== ==========
UNITS OUTSTANDING 41,839 41,839
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,428,826 $963,742
Adjustments to reconcile net
income to net cash provided
by operating activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) ( 4,178) -
Depreciation, depletion, and
amortization of oil and gas
properties 108,544 191,851
Increase in accounts receivable -
oil and gas sales ( 326,604) ( 217,420)
Increase (decrease) in accounts
payable ( 76,532) 46,611
Decrease in accrued liability -
other (Note 1) - ( 157,093)
---------- --------
Net cash provided by operating
activities $2,130,056 $827,691
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 85,012) ($ 42,569)
Proceeds from the sale of oil and
gas properties - 163,982
---------- --------
Net cash provided (used) by investing
activities ($ 85,012) $121,413
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,279,568) ($949,753)
---------- --------
Net cash used by financing activities ($1,279,568) ($949,753)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 765,476 ($ 649)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,098,557 780,235
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,864,033 $779,586
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2003 2002
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 520,440 $ 316,892
Accounts receivable:
Oil and gas sales 319,497 240,861
---------- ----------
Total current assets $ 839,937 $ 557,753
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 803,569 683,746
DEFERRED CHARGE 345,903 345,903
---------- ----------
$1,989,409 $1,587,402
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 67,379 $ 91,775
Accrued liability - other (Note 1) 62,225 62,225
Gas imbalance payable 34,038 34,038
---------- ----------
Total current liabilities $ 163,642 $ 188,038
LONG-TERM LIABILITIES:
Accrued liability $ 159,521 $ 159,521
Asset retirement obligation
(Note 1) 121,658 -
---------- ----------
Total long-term liabilities $ 281,179 $ 159,521
PARTNERS' CAPITAL (DEFICIT):
General Partner $ 2,218 ($ 15,418)
Limited Partners, issued and
outstanding, 14,321 units 1,542,370 1,255,261
---------- ----------
Total Partners' capital $1,544,588 $1,239,843
---------- ----------
$1,989,409 $1,587,402
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
-------- --------
REVENUES:
Oil and gas sales $555,719 $375,956
Interest income 657 429
-------- --------
$556,376 $376,385
COSTS AND EXPENSES:
Lease operating $ 97,710 $101,219
Production tax 30,210 21,670
Depreciation, depletion, and
amortization of oil and gas
properties 13,283 23,525
General and administrative
(Note 2) 49,686 45,114
-------- --------
$190,889 $191,528
-------- --------
NET INCOME $365,487 $184,857
======== ========
GENERAL PARTNER - NET INCOME $ 56,584 $ 30,958
======== ========
LIMITED PARTNERS - NET INCOME $308,903 $153,899
======== ========
NET INCOME per unit $ 21.57 $ 10.74
======== ========
UNITS OUTSTANDING 14,321 14,321
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- --------
REVENUES:
Oil and gas sales $1,095,381 $618,965
Interest income 1,235 868
---------- --------
$1,096,616 $619,833
COSTS AND EXPENSES:
Lease operating $ 215,369 $191,670
Production tax 63,296 26,583
Depreciation, depletion, and
amortization of oil and gas
properties 35,438 48,096
General and administrative
(Note 2) 102,278 101,693
---------- --------
$ 416,381 $368,042
---------- --------
INCOME BEFORE CUMULATIVE EFFECT
ACCOUNTING CHANGE $ 680,235 $251,791
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) ( 318) -
---------- --------
NET INCOME $ 679,917 $251,791
========== ========
GENERAL PARTNER - NET INCOME $ 106,808 $ 44,372
========== ========
LIMITED PARTNERS - NET INCOME $ 573,109 $207,419
========== ========
NET INCOME per unit $ 40.02 $ 14.48
========== ========
UNITS OUTSTANDING 14,321 14,321
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $679,917 $251,791
Adjustments to reconcile net
income to net cash provided
by operating activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) 318 -
Depreciation, depletion, and
amortization of oil and gas
properties 35,438 48,096
Increase in accounts receivable -
oil and gas sales ( 78,636) ( 64,710)
Increase (decrease) in accounts
payable ( 24,396) 24,601
Decrease in accrued liability -
other (Note 1) - ( 109,965)
-------- --------
Net cash provided by operating
activities $612,641 $149,813
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 33,921) ($ 16,463)
Proceeds from the sale of oil and
gas properties - 57,242
-------- --------
Net cash provided (used) by investing
activities ($ 33,921) $ 40,779
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($375,172) ($ 79,220)
-------- --------
Net cash used by financing activities ($375,172) ($ 79,220)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $203,548 $111,372
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 316,892 114,388
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $520,440 $225,760
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-13-
GEODYNE ENERGY INCOME PROGRAM I LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
JUNE 30, 2003
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of June 30, 2003, combined statements of
operations for the three and six months ended June 30, 2003 and 2002, and
combined statements of cash flows for the six months ended June 30, 2003
and 2002 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 Energy Income
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, 2003, the combined results of operations for the
three and six months ended June 30, 2003 and 2002, and the combined cash
flows for the six months ended June 30, 2003 and 2002.
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, 2002. The
results of operations for the period ended June 30, 2003 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
$1,000 initial capital contribution.
-14-
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.
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 and estimated
salvage value of the equipment.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss (including the elimination of the asset retirement obligation)
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, 2003 and December 31, 2002 for
the I-E and I-F Partnerships represents a charge accrued for the payment
of a judgment related to plugging liabilities, which judgment is currently
under appeal.
-15-
NEW ACCOUNTING PRONOUNCEMENTS
- -----------------------------
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). On January 1,
2003, the Partnerships adopted FAS No. 143 and recorded an increase in
capitalized cost of oil and gas properties, an increase(decrease) in net
income for the cumulative effect of the change in accounting principle,
and an asset retirement obligation in the following approximate amounts
for each Partnership:
Increase
(Decrease)
Increase in
in Net Income
Capitalized for the
Cost of Oil Change in Asset
and Gas Accounting Retirement
Partnerships Properties Principle Obligation
------------ ----------- ---------- ----------
I-D $ 30,000 $ 1,000 $ 29,000
I-E 278,000 4,000 274,000
I-F 119,000 ( 300) 119,000
These amounts differ significantly from the estimates disclosed in the
Annual Report on Form 10-K for the year ended December 31, 2002 due to a
revision of the methodology used in calculating the change in capitalized
cost of oil and gas properties.
The asset retirement obligation will be adjusted upwards each quarter in
order to recognize accretion of the time-related discount factor. For the
six months ended June 30, 2003, the I-D, I-E, and I-F Partnerships
recognized approximately $1,000, $5,000, and $2,000, respectively, of an
increase in depreciation, depletion, and amortization expense, which was
comprised of accretion of the asset retirement obligation and depletion of
the increase in capitalized cost of oil and gas properties.
If this accounting policy had been in effect January 1, 2002, the proforma
impact for the I-D, I-E, and I-F Partnerships during the six months ended
June 30, 2002 would have been an increase in depreciation, depletion, and
amortization expense of approximately $1,000, $5,000, and $2,000,
respectively.
-16-
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, 2003, the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
I-D $ 9,332 $ 19,986
I-E 12,112 116,220
I-F 9,906 39,780
During the six months ended June 30, 2003, the following payments were
made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
I-D $21,104 $ 39,972
I-E 28,926 232,440
I-F 22,718 79,560
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.
-17-
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.
-18-
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
----------- ------------------ ---------------
I-D March 4, 1986 $ 7,194,700
I-E September 10, 1986 41,839,400
I-F December 16, 1986 14,320,900
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, 2003 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
cash distribution.
The I-D, I-E, and I-F Partnerships' Statements of Cash Flows for the six
months ended June 30, 2002 include proceeds from the sale of certain oil
and gas properties during December 2001. These proceeds were included in
the Partnerships' cash distributions paid in February 2002.
Pursuant to the terms of the Partnerships' partnership agreements (the
"Partnership Agreements"), the Partnerships would have terminated on
December 31, 1999. However, the Partnership Agreements provide that the
General Partner may extend the term of each Partnership for up to five
periods of two years each. The General Partner has extended the terms of
the Partnerships for their second two year extension period to December
31, 2003. The General Partner currently intends to exercise the third
extension option for each Partnership, thereby extending their terms to
December 31, 2005.
-19-
CRITICAL ACCOUNTING POLICIES
- ----------------------------
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 the
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.
Depletion of the cost 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 units-of-production
method. The Partnerships' calculation of depreciation, depletion, and
amortization includes estimated dismantlement and abandonment costs and
estimated salvage value of the equipment. When complete units of
depreciable property are retired or sold, the asset cost and related
accumulated depreciation are eliminated with any gain or loss (including
the elimination of the asset retirement obligation) reflected in income.
When less that complete units of depreciable property are retired or sold,
the proceeds are credited to oil and gas properties.
The Partnerships evaluate the recoverability of the carrying costs of
their proved oil and gas properties for each oil and gas field (rather
than separately for each well). If the unamortized costs of oil and gas
properties within a field exceeds the expected undiscounted future cash
flows from such properties, the cost of the properties is written down to
fair value, which is determined by using the discounted future cash flows
from the properties. The risk that the Partnerships will be required to
record impairment provisions in the future increases as oil and gas prices
decrease.
-20-
The Deferred Charge on the Balance Sheets represents costs deferred for
lease operating expenses incurred in connection with the Partnerships'
underproduced gas imbalance positions. Conversely, the Accrued Liability
represents charges accrued for lease operating expenses incurred in
connection with the Partnerships' overproduced gas imbalance positions.
The rate used in calculating the Deferred Charge and Accrued Liability is
the annual average production costs per Mcf.
The Partnerships' oil and condensate production is sold, title passed, and
revenue recognized at or near the Partnerships' wells under short-term
purchase contracts at prevailing prices in accordance with arrangements
which are customary in the oil and gas industry. Sales of gas applicable
to the Partnerships' interest in producing oil and gas leases are recorded
as revenue when the gas is metered and title transferred pursuant to the
gas sales contracts covering the Partnerships' interest in gas reserves.
During such times as a Partnership's sales of gas exceed its' pro rata
ownership in a well, such sales are recorded as revenues unless total
sales from the well have exceeded the Partnership's share of estimated
total gas reserves underlying the property, at which time such excess is
recorded as a liability. The rates per Mcf used to calculate this
liability are based on the average gas prices received for the volumes at
the time the overproduction occurred. This also approximates the price for
which the Partnerships are currently settling this liability. These
amounts were recorded as gas imbalance payables in accordance with the
sales method. These gas imbalance payables will be settled by either gas
production by the underproduced party in excess of current estimates of
total gas reserves for the well or by negotiated or contractual payment to
the underproduced party.
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.
-21-
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). On January 1,
2003, the Partnerships adopted FAS No. 143 and recorded an increase in
capitalized cost of oil and gas properties, an increase (decrease) in net
income for the cumulative effect of the change in accounting principle,
and an asset retirement obligation in the following approximate amounts
for each Partnership:
Increase
(Decrease)
Increase in
in Net Income
Capitalized for the
Cost of Oil Change in Asset
and Gas Accounting Retirement
Partnerships Properties Principle Obligation
------------ ----------- ---------- ----------
I-D $ 30,000 $ 1,000 $ 29,000
I-E 278,000 4,000 274,000
I-F 119,000 ( 300) 119,000
These amounts differ significantly from the estimates disclosed in the
Annual Report on Form 10-K for the year ended December 31, 2002 due to a
revision of the methodology used in calculating the change in capitalized
cost of oil and gas properties.
The asset retirement obligation will be adjusted upwards each quarter in
order to recognize accretion of the time-related discount factor. For the
six months ended June 30, 2003, the I-D, I-E, and I-F Partnerships
recognized approximately $1,000, $5,000, and $2,000, respectively, of an
increase in depreciation, depletion, and amortization expense, which was
comprised of accretion of the asset retirement obligation and depletion of
the increase in capitalized cost of oil and gas properties.
PROVED RESERVES AND NET PRESENT VALUE
- -------------------------------------
The process of estimating oil and gas reserves is complex, requiring
significant subjective decisions in the evaluation of available
geological, engineering, and economic data for each reservoir. The data
for a given reservoir may change substantially over time as a result of,
among other things, additional development activity, production history,
and viability of production under varying economic conditions;
consequently, it is reasonably possible that material revisions to
existing reserve estimates may occur in the
-22-
future. Although every reasonable effort has been made to ensure that
these reserve estimates represent the most accurate assessment possible,
the significance of the subjective decisions required and variances in
available data for various reservoirs make these estimates generally less
precise than other estimates presented in connection with financial
statement disclosures.
The following tables summarize changes in net quantities of the
Partnerships' proved reserves, all of which are located in the United
States, for the periods indicated. The proved reserves were estimated by
petroleum engineers employed by affiliates of the Partnerships, and are
annually reviewed by an independent engineering firm. "Proved reserves"
refers to those estimated quantities of crude oil, gas, and gas liquids
which geological and engineering data demonstrate with reasonable
certainty to be recoverable in future years from known oil and gas
reservoirs under existing economic and operating conditions. The following
information includes certain gas balancing adjustments which cause the gas
volume to differ from the reserve reports prepared by the General Partner.
-23-
I-D Partnership
---------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2002 56,533 1,315,719
Production ( 882) ( 41,385)
Revisions of previous
estimates ( 91) ( 39,632)
------ ---------
Proved reserves, March 31, 2003 55,560 1,234,702
Production ( 941) ( 56,157)
Extensions and discoveries 13 1,019
Revisions of previous
estimates 1,825 333,974
------ ---------
Proved reserves, June 30, 2003 56,457 1,513,538
====== =========
I-E Partnership
---------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2002 421,343 6,775,074
Production ( 11,706) ( 213,245)
Revisions of previous
estimates ( 13,711) ( 280,504)
------- ---------
Proved reserves, March 31, 2003 395,926 6,281,325
Production ( 17,762) ( 320,893)
Extensions and discoveries 15,839 20,924
Revisions of previous
estimates 49,424 2,004,537
------- ---------
Proved reserves, June 30, 2003 443,427 7,985,893
======= =========
-24-
I-F Partnership
---------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2002 200,897 2,334,632
Production ( 5,585) ( 70,164)
Revisions of previous
estimates ( 6,180) ( 155,014)
------- ---------
Proved reserves, March 31, 2003 189,132 2,109,454
Production ( 7,648) ( 66,330)
Extensions and discoveries 14 1,124
Revisions of previous
estimates 23,267 606,847
------- ---------
Proved reserves, June 30, 2003 204,765 2,651,095
======= =========
The net present value of the Partnerships' reserves may change
dramatically as oil and gas prices change or as volumes change for the
reasons described above. Net present value represents estimated future
gross cash flow from the production and sale of proved reserves, net of
estimated oil and gas production costs (including production taxes, ad
valorem taxes, and operating expenses) and estimated future development
costs, discounted at 10% per annum.
The following table indicates the estimated net present value of the
Partnerships' proved reserves as of June 30, 2003, March 31, 2003, and
December 31, 2002. Net present value attributable to the Partnerships'
proved reserves was calculated on the basis of current costs and prices as
of the date of estimation. Such prices were not escalated except in
certain circumstances where escalations were fixed and readily
determinable in accordance with applicable contract provisions. The table
also indicates the gas prices in effect on the dates corresponding to the
reserve valuations. Changes in the oil and gas prices cause the estimates
of remaining economically recoverable reserves, as well as the values
placed on said reserves to fluctuate. The prices used in calculating the
net present value attributable to the Partnerships' proved reserves do not
necessarily reflect market prices for oil and gas production subsequent to
June 30, 2003. There can be no assurance that the prices used in
calculating the net present value of the Partnerships' proved reserves at
June 30, 2003 will actually be realized for such production.
-25-
Net Present Value of Reserves
-----------------------------------------
Partnership 6/30/03 3/31/03 12/31/02
----------- ----------- ----------- -----------
I-D $ 4,073,632 $ 3,633,910 $ 3,647,625
I-E 22,629,019 19,491,697 19,894,751
I-F 7,180,770 6,501,844 6,751,875
Oil and Gas Prices
-----------------------------------------
Pricing 6/30/03 3/31/03 12/31/02
----------- ----------- ----------- -----------
Oil (per barrel) $ 27.00 $ 27.75 $ 28.00
Gas (per Mcf) 5.18 5.06 4.74
The Partnerships had upward revisions in estimated gas reserves and the
related estimated net present value of reserves at June 30, 2003 as
compared to March 31, 2003 due to an increase in the gas price used to run
the reserves and lower rates of decline than originally forecast.
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction with the
analysis of results of operations provided below.
The primary source of liquidity and Partnership cash distributions comes
from the net revenues generated from the sale of oil and gas produced from
the Partnerships' oil and gas properties. The level of net revenues is
highly dependent upon the total volumes of oil and natural gas sold. Oil
and gas reserves are depleting assets and will experience production
declines over time, thereby likely resulting in reduced net revenues. The
level of net revenues is also highly dependent upon the prices received
for oil and gas sales, which prices have historically been very volatile
and may continue to be so.
Additionally, lower oil and natural gas prices may reduce the amount of
oil and gas that is economic to produce and reduce the Partnerships'
revenues and cash flow. Various factors beyond the Partnerships' control
will affect prices for oil and natural gas, such as:
* Worldwide and domestic supplies of oil and natural gas;
* The ability of the members of the Organization of Petroleum Exporting
Countries ("OPEC") to agree to and maintain oil prices and production
quotas;
* Political instability or armed conflict in oil-producing regions or
around major shipping areas;
* The level of consumer demand and overall economic activity;
* The competitiveness of alternative fuels;
* Weather conditions;
* The availability of pipelines for transportation; and
* Domestic and foreign government regulations and taxes.
Recently, while economic factors have been relatively unfavorable for oil
and natural gas demand, oil prices have benefited from the political
uncertainty associated with the increase in terrorist activities in parts
of the world. In the last few years, natural gas prices have varied
significantly, from very high prices in late 2000 and early 2001, to low
prices in late 2001 and early 2002, to rising prices in the later part of
2002 and early 2003. The high natural gas prices were associated with cold
winter weather and decreased supply from reduced capital investment for
new drilling, while the low prices were associated with warm winter
weather and reduced economic activity. The more recent increase in prices
is the result of increased demand from weather patterns, the pricing
effect of relatively high oil prices and increased concern about the
ability of the industry to meet any longer-term demand increases based
upon current drilling activity.
It is not possible to predict the future direction of oil or natural gas
prices or whether the above discussed trends will remain. Operating costs,
including General and Administrative Expenses, may not decline over time
or may experience only a gradual decline, thus adversely affecting net
revenues as either production or oil and natural gas prices decline. In
any particular period, net revenues may also be affected by either the
receipt of proceeds from property sales or the incursion of additional
costs as a result of well workovers, recompletions, new well drilling, and
other events.
-26-
I-D PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2003 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2002.
Three Months Ended June 30,
---------------------------
2003 2002
-------- --------
Oil and gas sales $296,147 $202,124
Oil and gas production expenses $ 45,201 $ 41,087
Barrels produced 941 1,151
Mcf produced 56,157 57,373
Average price/Bbl $ 29.25 $ 24.05
Average price/Mcf $ 4.78 $ 3.04
As shown in the table above, total oil and gas sales increased $94,023
(46.5%) for the three months ended June 30, 2003 as compared to the three
months ended June 30, 2002. Of this increase, approximately $98,000 was
related to an increase in the average price of gas sold. Volumes of oil
and gas sold decreased 210 barrels and 1,216 Mcf, respectively, for the
three months ended June 30, 2003 as compared to the three months ended
June 30, 2002. The decrease in volumes of oil sold was primarily due to
(i) normal declines in production and (ii) a positive prior period volume
adjustment made by the operator on one significant well during the three
months ended June 30, 2002. Average oil and gas prices increased to $29.25
per barrel and $4.78 per Mcf, respectively, for the three months ended
June 30, 2003 from $24.05 per barrel and $3.04 per Mcf, respectively, for
the three months ended June 30, 2002.
Oil and gas production expenses (including lease operating expense and
production taxes) increased $4,114 (10.0%) for the three months ended June
30, 2003 as compared to the three months ended June 30, 2002. This
increase was primarily due to an increase in production taxes associated
with the increase in oil and gas sales. As a percentage of oil and gas
sales, these expenses decreased to 15.3% for the three months ended June
30, 2003 from 20.3% for the three months ended June 30, 2002. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $6,020 (45.7%) for the three months ended June 30, 2003 as
compared to the three months ended June 30, 2002. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at June 30, 2003. As a percentage of oil and gas sales, this
expense decreased to 2.4% for the three months ended June 30, 2003 from
6.5% for the three months ended June 30,
-27-
2002. This percentage decrease was primarily due to (i) the dollar
decrease in depreciation, depletion, and amortization of oil and gas
properties and (ii) the increases in the average prices of oil and gas
sold.
General and administrative expenses increased $4,315 (17.3%) for the three
months ended June 30, 2003 as compared to the three months ended June 30,
2002. This increase was primarily due to a change in the timing of audit
fees paid. As a percentage of oil and gas sales, these expenses decreased
to 9.9% for the three months ended June 30, 2003 from 12.4% for the three
months ended June 30, 2002. This percentage decrease was primarily due to
the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2003 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2002.
Six Months Ended June 30,
-------------------------
2003 2002
-------- --------
Oil and gas sales $564,851 $354,471
Oil and gas production expenses $111,938 $ 96,932
Barrels produced 1,823 1,915
Mcf produced 97,542 116,469
Average price/Bbl $ 30.51 $ 22.57
Average price/Mcf $ 5.22 $ 2.67
As shown in the table above, total oil and gas sales increased $210,380
(59.4%) for the six months ended June 30, 2003 as compared to the six
months ended June 30, 2002. Of this increase, approximately $249,000 was
related to an increase in the average price of gas sold, which increase
was partially offset by a decrease of approximately $51,000 related to a
decrease in volumes of gas sold. Volumes of oil and gas sold decreased 92
barrels and 18,927 Mcf, respectively, for the six months ended June 30,
2003 as compared to the six months ended June 30, 2002. The decrease in
volumes of gas sold was primarily due to (i) normal declines in production
and (ii) a positive prior period gas balancing adjustment on one
significant well during the six months ended June 30, 2002. Average oil
and gas prices increased to $30.51 per barrel and $5.22 per Mcf,
respectively, for the six months ended June 30, 2003 from $22.57 per
barrel and $2.67 per Mcf, respectively, for the six months ended June 30,
2002.
Oil and gas production expenses (including lease operating expense and
production taxes) increased $15,006 (15.5%) for the six months ended June
30, 2003 as compared to the six months ended June 30, 2002. This increase
was primarily due to an increase in production taxes associated with the
increase in oil and gas sales. As a percentage of oil and
-28-
gas sales, these expenses decreased to 19.8% for the six months ended June
30, 2003 from 27.3% for the six months ended June 30, 2002. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $9,540 (36.4%) for the six months ended June 30, 2003 as
compared to the six months ended June 30, 2002. This decrease was
primarily due to (i) upward revisions in the estimates of remaining oil
and gas reserves at June 30, 2003 and (ii) the decreases in volumes of oil
and gas sold. As a percentage of oil and gas sales, this expense decreased
to 3.0% for the six months ended June 30, 2003 from 7.4% for the six
months ended June 30, 2002. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold.
General and administrative expenses increased $1,564 (2.6%) for the six
months ended June 30, 2003 as compared to the six months ended June 30,
2002. As a percentage of oil and gas sales, these expenses decreased to
10.8% for the six months ended June 30, 2003 from 16.8% for the six months
ended June 30, 2002. This percentage decrease was primarily due to the
increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2003 totaling $16,425,175 or 228.30% of Limited Partners' capital
contributions.
I-E PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2003 COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 2002.
Three Months Ended June 30,
---------------------------
2003 2002
---------- ----------
Oil and gas sales $1,966,923 $1,162,692
Oil and gas production expenses $ 327,343 $ 270,296
Barrels produced 17,762 12,499
Mcf produced 320,893 287,789
Average price/Bbl $ 26.58 $ 22.93
Average price/Mcf $ 4.66 $ 3.04
As shown in the table above, total oil and gas sales increased $804,231
(69.2%) for the three months ended June 30, 2003 as compared to the three
months ended June 30, 2002. Of this increase, approximately (i) $518,000
was related to an increase in the average price of gas sold and (ii)
$121,000 and $101,000, respectively, were related to increases in volumes
of oil and gas sold. Volumes of oil and gas sold increased 5,263 barrels
and 33,104 Mcf,
-29-
respectively, for the three months ended June 30, 2003 as compared to the
three months ended June 30, 2002. The increase in volumes of oil sold was
primarily due to (i) an increase in production on one significant well due
to the successful recompletion of that well during mid 2002 and (ii) a
positive prior period volume adjustment made by the purchaser on another
significant well during the three months ended June 30, 2003. The increase
in volumes of gas sold was primarily due to a positive prior period volume
adjustment made by the operator on one significant well during the three
months ended June 30, 2003. This increase was partially offset by positive
prior period volume adjustments made by the purchasers on two significant
wells during the three months ended June 30, 2002. Average oil and gas
prices increased to $26.58 per barrel and $4.66 per Mcf, respectively, for
the three months ended June 30, 2003 from $22.93 per barrel and $3.04 per
Mcf, respectively, for the three months ended June 30, 2002.
Oil and gas production expenses (including lease operating expense and
production taxes) increased $57,047 (21.1%) for the three months ended
June 30, 2003 as compared to the three months ended June 30, 2002. This
increase was primarily due to an increase in production taxes associated
with the increase in oil and gas sales. As a percentage of oil and gas
sales, these expenses decreased to 16.6% for the three months ended June
30, 2003 from 23.2% for the three months ended June 30, 2002. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $52,144 (56.7%) for the three months ended June 30, 2003 as
compared to the three months ended June 30, 2002. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at June 30, 2003. As a percentage of oil and gas sales, this
expense decreased to 2.0% for the three months ended June 30, 2003 from
7.9% for the three months ended June 30, 2002. This percentage decrease
was primarily due to (i) the dollar decrease in depreciation, depletion,
and amortization of oil and gas properties and (ii) the increases in the
average prices of oil and gas sold.
General and administrative expenses increased $5,556 (4.5%) for the three
months ended June 30, 2003 as compared to the three months ended June 30,
2002. As a percentage of oil and gas sales, these expenses decreased to
6.5% for the three months ended June 30, 2003 from 10.6% for the three
months ended June 30, 2002. This percentage decrease was primarily due to
the increase in oil and gas sales.
-30-
SIX MONTHS ENDED JUNE 30, 2003 COMPARED TO THE SIX MONTHS ENDED
JUNE 30, 2002.
Six Months Ended June 30,
---------------------------
2003 2002
---------- ----------
Oil and gas sales $3,549,374 $2,068,984
Oil and gas production expenses $ 758,719 $ 652,901
Barrels produced 29,468 23,492
Mcf produced 534,138 616,357
Average price/Bbl $ 27.93 $ 19.99
Average price/Mcf $ 5.10 $ 2.59
As shown in the table above, total oil and gas sales increased $1,480,390
(71.6%) for the six months ended June 30, 2003 as compared to the six
months ended June 30, 2002. Of this increase, approximately $234,000 and
$1,340,000, respectively, were related to increases in the average prices
of oil and gas sold. These increases were partially offset by a decrease
of approximately $213,000 related to a decrease in volumes of gas sold.
Volumes of oil sold increased 5,976 barrels, while volumes of gas sold
decreased 82,219 Mcf for the six months ended June 30, 2003 as compared to
the six months ended June 30, 2002. The increase in volumes of oil sold
was primarily due to (i) an increase in production on one significant well
due to the successful recompletion of that well during mid 2002 and (ii) a
positive prior period volume adjustment made by the purchaser on another
significant well during the six months ended June 30, 2003. The decrease
in volumes of gas sold was primarily due to (i) normal declines in
production, (ii) positive prior period volume adjustments made by the
purchasers on several wells during the six months ended June 30, 2002, and
(iii) a positive prior period gas balancing adjustment on another
significant well during the six months ended June 30, 2002. Average oil
and gas prices increased to $27.93 per barrel and $5.10 per Mcf,
respectively, for the six months ended June 30, 2003 from $19.99 per
barrel and $2.59 per Mcf, respectively, for the six months ended June 30,
2002.
Oil and gas production expenses (including lease operating expense and
production taxes) increased $105,818 (16.2%) for the six months ended June
30, 2003 as compared to the six months ended June 30, 2002. This increase
was primarily due to (i) an increase in production taxes associated with
the increase in oil and gas sales and (ii) a partial reversal during the
six months ended June 30, 2002 of approximately $75,000 (due to a partial
post-judgment settlement) of a charge previously accrued for this
judgment. As a percentage of oil and gas sales, these expenses decreased
to 21.4% for the six months ended June 30, 2003 from 31.6% for
-31-
the six months ended June 30, 2002. This percentage decrease was primarily
due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $83,307 (43.4%) for the six months ended June 30, 2003 as
compared to the six months ended June 30, 2002. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at June 30, 2003. As a percentage of oil and gas sales, this
expense decreased to 3.1% for the six months ended June 30, 2003 from 9.3%
for the six months ended June 30, 2002. This percentage decrease was
primarily due to (i) the dollar decrease in deprecation, depletion, and
amortization of oil and gas properties and (ii) the increases in the
average prices of oil and gas sold.
General and administrative expenses decreased $3,186 (1.2%) for the six
months ended June 30, 2003 as compared to the six months ended June 30,
2002. As a percentage of oil and gas sales, these expenses decreased to
7.4% for the six months ended June 30, 2003 from 12.8% for the six months
ended June 30, 2002. This percentage decrease was primarily due to the
increase in oil and gas sales.
The Limited Partners have received cash distribution through June 30, 2003
totaling $66,026,552 or 157.81% of Limited Partners' capital
contributions.
I-F PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2003 COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 2002.
Three Months Ended June 30,
---------------------------
2003 2002
-------- --------
Oil and gas sales $555,719 $375,956
Oil and gas production expenses $127,920 $122,889
Barrels produced 7,648 6,083
Mcf produced 66,330 72,079
Average price/Bbl $ 26.65 $ 22.83
Average price/Mcf $ 5.31 $ 3.29
As shown in the table above, total oil and gas sales increased $179,763
(47.8%) for the three months ended June 30, 2003 as compared to the three
months ended June 30, 2002. Of this increase, approximately (i) $29,000
and $134,000, respectively, were related to increases in the average
prices of oil and gas sold and (ii) $36,000 was related to an increase in
volumes of oil sold. These increases were partially offset by a decrease
of approximately $19,000 related to a decrease in volumes of
-32-
gas sold. Volumes of oil sold increased 1,565 barrels, while volumes of
gas sold decreased 5,749 Mcf for the three months ended June 30, 2003 as
compared to the three months ended June 30, 2002. The increase in volumes
of oil sold was primarily due to (i) an increase in production on one
significant well due to the successful recompletion of that well during
mid 2002 and (ii) a positive prior period volume adjustment made by the
purchaser on another significant well during the three months ended June
30, 2003. 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, 2002 and (ii)
normal declines in production. These decreases were partially offset by
(i) a positive prior period gas balancing adjustment on one significant
well during the three months ended June 30, 2003 and (ii) an increase in
production on another significant well due to the successful workover of
that well during late 2002. Average oil and gas prices increased to $26.65
per barrel and $5.31 per Mcf, respectively, for the three months ended
June 30, 2003 from $22.83 per barrel and $3.29 per Mcf, respectively, for
the three months ended June 30, 2002.
Oil and gas production expenses (including lease operating expense and
production taxes) increased $5,031 (4.1%) for the three months ended June
30, 2003 as compared to the three months ended June 30, 2002. As a
percentage of oil and gas sales, these expenses decreased to 23.0% for the
three months ended June 30, 2003 from 32.7% for the three months ended
June 30, 2002. This percentage decrease was primarily due to the increases
in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $10,242 (43.5%) for the three months ended June 30, 2003 as
compared to the three months ended June 30, 2002. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at June 30, 2003. As a percentage of oil and gas sales, this
expense decreased to 2.4% for the three months ended June 30, 2003 from
6.3% for the three months ended June 30, 2002. This percentage decrease
was primarily due to (i) the dollar decrease in depreciation, depletion,
and amortization of oil and gas properties and (ii) the increases in the
average prices of oil and gas sold.
General and administrative expenses increased $4,572 (10.1%) for the three
months ended June 30, 2003 as compared to the three months ended June 30,
2002. This increase was primarily due to a change in the timing of audit
fees paid. As a percentage of oil and gas sales, these expenses decreased
to 8.9% for the three months ended June 30, 2003 from 12.0% for the three
months ended June 30, 2002. This percentage decrease was primarily due to
the increase in oil and gas sales.
-33-
SIX MONTHS ENDED JUNE 30, 2003 COMPARED TO THE SIX MONTHS ENDED
JUNE 30, 2002.
Six Months Ended June 30,
-------------------------
2003 2002
---------- --------
Oil and gas sales $1,095,381 $618,965
Oil and gas production expenses $ 278,665 $218,253
Barrels produced 13,233 11,520
Mcf produced 136,494 152,861
Average price/Bbl $ 28.07 $ 19.39
Average price/Mcf $ 5.30 $ 2.59
As shown in the table above, total oil and gas sales increased $476,416
(77.0%) for the six months ended June 30, 2003 as compared to the six
months ended June 30, 2002. Of this increase, approximately $115,000 and
$371,000, respectively, were related to increases in the average prices of
oil and gas sold. Volumes of oil sold increased 1,713 barrels, while
volumes of gas sold decreased 16,367 Mcf for the six months ended June 30,
2003 as compared to the six months ended June 30, 2002. The increase in
volumes of oil sold was primarily due to (i) an increase in production on
one significant well due to the successful recompletion of that well
during mid 2002 and (ii) a positive prior period volume adjustment made by
the purchaser on another significant well during the six months ended June
30, 2003. The decrease in volumes of gas sold was primarily due to (i)
normal declines in production, (ii) positive prior period volume
adjustments made by the purchasers on several wells during the six months
ended June 30, 2002, and (iii) a positive prior period gas balancing
adjustment on another significant well during the six months ended June
30, 2002. Average oil and gas prices increased to $28.07 per barrel and
$5.30 per Mcf, respectively, for the six months ended June 30, 2003 from
$19.39 per barrel and $2.59 per Mcf, respectively, for the six months
ended June 30, 2002.
Oil and gas production expenses (including lease operating expense and
production taxes) increased $60,412 (27.7%) for the six months ended June
30, 2003 as compared to the six months ended June 30, 2002. This increase
was primarily due to (i) a partial reversal during the six months ended
June 30, 2002 of approximately $52,000 (due to a partial post-judgment
settlement) of a charge previously accrued for this judgment and (ii) an
increase in production taxes associated with the increase in oil and gas
sales. As a percentage of oil and gas sales, these expenses decreased to
25.4% for the six months ended June 30, 2003 from 35.3% for the six months
ended June 30, 2002. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
-34-
Depreciation, depletion, and amortization of oil and gas properties
decreased $12,658 (26.3%) for the six months ended June 30, 2003 as
compared to the six months ended June 30, 2002. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at June 30, 2003. As a percentage of oil and gas sales, this
expense decreased to 3.2% for the six months ended June 30, 2003 from 7.8%
for the six months ended June 30, 2002. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2003 and 2002. As a percentage of oil and gas
sales, these expenses decreased to 9.3% for the six months ended June 30,
2003 from 16.4% for the six months ended June 30, 2002. This percentage
decrease was primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distribution through June 30, 2003
totaling $20,991,664 or 146.58% of Limited Partners' capital
contributions.
-35-
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
ITEM 4. EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Within the 90 days prior to the date of this report, the
Partnerships carried out an evaluation under the supervision and
with the participation of the Partnerships' management, including
their chief executive officer and chief financial officer, of the
effectiveness of the design and operation of the Partnerships'
disclosure controls and procedures pursuant to Rule 13a-14 of the
Securities Exchange Act of 1934. Based upon that evaluation, the
Partnerships' chief executive officer and chief financial officer
concluded that the Partnerships' disclosure controls and procedures
are effective in timely alerting them to material information
relating to the Partnerships required to be included in the
Partnerships' periodic filings with the SEC. There have been no
significant changes in the Partnerships' internal controls or in
other factors which could significantly affect the Partnerships'
internal controls subsequent to the date the Partnerships carried
out this evaluation.
-36-
PART II. OTHER INFORMATION
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 I-D
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 I-E
Partnership.
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 I-F
Partnership.
(b) Reports on Form 8-K.
None.
-37-
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 I-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: August 13, 2003 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: August 13, 2003 By: /s/Craig D. Loseke
--------------------------------
(Signature)
Craig D. Loseke
Chief Accounting Officer
-38-
CERTIFICATION
-------------
I, Dennis R. Neill, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership I-D;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-39-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 13th day of August, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Chief Executive Officer)
-40-
CERTIFICATION
-------------
I, Craig D. Loseke, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership I-D;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-41-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 13th day of August, 2003.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Accounting Officer
(Principal Financial Officer)
-42-
CERTIFICATION
-------------
I, Dennis R. Neill, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership I-E;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-43-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 13th day of August, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Chief Executive Officer)
-44-
CERTIFICATION
-------------
I, Craig D. Loseke, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership I-E;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-45-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 13th day of August, 2003.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Accounting Officer
(Principal Financial Officer)
-46-
CERTIFICATION
-------------
I, Dennis R. Neill, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership I-F;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-47-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 13th day of August, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Chief Executive Officer)
-48-
CERTIFICATION
-------------
I, Craig D. Loseke, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership I-F;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-49-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 13th day of August, 2003.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Accounting Officer
(Principal Financial Officer)
-50-
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 I-D.
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 I-E.
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 I-F.
-51-