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 September 30, 2003
Commission File Number: P-7: 0-20265 P-8: 0-20264
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
---------------------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
P-7 73-1367186
Oklahoma P-8 73-1378683
---------------------------- -------------------------------
(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 INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2003 2002
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,362,342 $ 857,086
Accounts receivable:
Net Profits 80,267 188,969
---------- ----------
Total current assets $1,442,609 $1,046,055
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 3,074,371 2,611,743
---------- ----------
$4,516,980 $3,657,798
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 81,772) ($ 102,748)
Limited Partners, issued and
outstanding, 188,702 units 4,598,752 3,760,546
---------- ----------
Total Partners' capital $4,516,980 $3,657,798
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-2-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(Unaudited)
2003 2002
-------- --------
REVENUES:
Net Profits $590,062 $537,608
Interest income 1,436 1,295
Gain on sale of Net Profits
Interests 368,610 -
-------- --------
$960,108 $538,903
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 80,031 $ 45,764
General and administrative
(Note 2) 56,320 53,988
-------- --------
$136,351 $ 99,752
-------- --------
NET INCOME $823,757 $439,151
======== ========
GENERAL PARTNER - NET INCOME $ 44,317 $ 23,723
======== ========
LIMITED PARTNERS - NET INCOME $779,440 $415,428
======== ========
NET INCOME per unit $ 4.13 $ 2.20
======== ========
UNITS OUTSTANDING 188,702 188,702
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-3-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- ----------
REVENUES:
Net Profits $1,910,436 $1,290,855
Interest income 3,854 2,159
Gain on sale of Net Profits
Interests 368,610 -
---------- ----------
$2,282,900 $1,293,014
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 224,781 $ 193,558
General and administrative
(Note 2) 178,531 176,239
---------- ----------
$ 403,312 $ 369,797
---------- ----------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $1,879,588 $ 923,217
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) 400 -
---------- ----------
NET INCOME $1,879,988 $ 923,217
========== ==========
GENERAL PARTNER - NET INCOME $ 102,782 $ 53,795
========== ==========
LIMITED PARTNERS - NET INCOME $1,777,206 $ 869,422
========== ==========
NET INCOME per unit $ 9.42 $ 4.61
========== ==========
UNITS OUTSTANDING 188,702 188,702
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-4-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(Unaudited)
2003 2002
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,879,988 $923,217
Adjustments to reconcile net income
to net cash provided by
operating activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) ( 400) -
Depletion of Net Profits
Interests 224,781 193,558
Gain on sale of Net Profits
Interests ( 368,610) -
Increase in accounts receivable -
Net Profits ( 213,033) ( 190,824)
---------- --------
Net cash provided by operating
activities $1,522,726 $925,951
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 392,375) ($ 56,752)
Proceeds from sale of Net Profits
Interests 395,711 -
---------- --------
Net cash provided (used) by investing
activities $ 3,336 ($ 56,752)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,020,806) ($588,735)
---------- --------
Net cash used by financing
activities ($1,020,806) ($588,735)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 505,256 $280,464
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 857,086 349,737
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,362,342 $630,201
========== ========
The accompanying condensed notes are an integral part of
these financial statements.
-5-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2003 2002
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,171,223 $ 611,298
Accounts receivable:
Net Profits 46,996 137,849
---------- ----------
Total current assets $1,218,219 $ 749,147
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,839,850 1,529,804
---------- ----------
$3,058,069 $2,278,951
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 19,748) ($ 43,633)
Limited Partners, issued and
outstanding, 116,168 units 3,077,817 2,322,584
---------- ----------
Total Partners' capital $3,058,069 $2,278,951
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-6-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(Unaudited)
2003 2002
-------- --------
REVENUES:
Net Profits $404,883 $357,781
Interest income 1,125 948
Gain on sale of Net Profits
Interests 482,658 -
-------- --------
$888,666 $358,729
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 48,138 $ 30,359
General and administrative
(Note 2) 34,913 33,808
-------- --------
$ 83,051 $ 64,167
-------- --------
NET INCOME $805,615 $294,562
======== ========
GENERAL PARTNER - NET INCOME $ 42,150 $ 15,895
======== ========
LIMITED PARTNERS - NET INCOME $763,465 $278,667
======== ========
NET INCOME per unit $ 6.57 $ 2.40
======== ========
UNITS OUTSTANDING 116,168 116,168
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-7-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- --------
REVENUES:
Net Profits $1,332,840 $889,618
Interest income 2,930 1,843
Gain on sale of Net Profits
Interests 482,658 -
---------- --------
$1,818,428 $891,461
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 134,166 $119,493
General and administrative
(Note 2) 117,273 115,190
---------- --------
$ 251,439 $234,683
---------- --------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $1,566,989 $656,778
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) 4,862 -
---------- --------
NET INCOME $1,571,851 $656,778
========== ========
GENERAL PARTNER - NET INCOME $ 83,618 $ 37,526
========== ========
LIMITED PARTNERS - NET INCOME $1,488,233 $619,252
========== ========
NET INCOME per unit $ 12.81 $ 5.33
========== ========
UNITS OUTSTANDING 116,168 116,168
========== ========
The accompanying condensed notes are an integral part of
these financial statements.
-8-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(Unaudited)
2003 2002
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,571,851 $656,778
Adjustments to reconcile net income
to net cash provided by operating
activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) ( 4,862) -
Depletion of Net Profits
Interests 134,166 119,493
Gain on sale of Net Profits
Interests ( 482,658) -
Increase in accounts receivable -
Net Profits ( 145,209) ( 120,848)
---------- --------
Net cash provided by operating
activities $1,073,288 $655,423
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 238,801) ($ 36,473)
Proceeds from sale of Net Profits
Interests 518,171 -
---------- --------
Net cash provided (used) by investing
activities $ 279,370 ($ 36,473)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 792,733) ($438,309)
---------- --------
Net cash used by financing activities ($ 792,733) ($438,309)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 559,925 $180,641
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 611,298 280,416
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,171,223 $461,057
========== ========
The accompanying condensed notes are an integral part of
these financial statements.
-9-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME PROGRAM II LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2003
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 2003, statements of operations for
the three and nine months ended September 30, 2003 and 2002, and
statements of cash flows for the nine months ended September 30, 2003 and
2002 have been prepared by Geodyne Resources, Inc., the General Partner
(the "General Partner") of the Geodyne Institutional/Pension Energy Income
Program II Limited Partnerships (individually, the "P-7 Partnership" or
the "P-8 Partnership", as the case may be, or, collectively, the
"Partnerships"), without audit. In the opinion of management the financial
statements referred to above include all necessary adjustments, consisting
of normal recurring adjustments, to present fairly the financial position
at September 30, 2003, the results of operations for the three and nine
months ended September 30, 2003 and 2002, and the cash flows for the nine
months ended September 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 September 30, 2003 are not
necessarily indicative of the results to be expected for the full year.
As used in these financial statements, the Partnerships' net profits and
royalty interests in oil and gas sales are referred to as "Net Profits"
and the Partnerships' net profits and royalty interests in oil and gas
properties are referred to as "Net Profits Interests". The working
interests from which Partnerships' Net Profits Interests are carved are
referred to as "Working Interests".
The Limited Partners' net income or loss per unit is based upon each $100
initial capital contribution.
-10-
NET PROFITS INTERESTS
---------------------
The Partnerships follow the successful efforts method of accounting for
their Net Profits Interests. Under the successful efforts method, the
Partnerships capitalize all acquisition costs. Property acquisition costs
include costs incurred by the Partnerships or the General Partner to
acquire a net profits interest or other non-operating interest in
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 Net Profits Interests 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.
Depletion of the costs of Net Profits Interests is computed on the
unit-of-production method. The Partnerships' calculation of depletion of
its Net Profits Interests includes estimated dismantlement and abandonment
costs and estimated salvage value of the equipment.
The Partnerships do not directly bear capital costs. However, the
Partnerships indirectly bear certain capital costs incurred by the owners
of the Working Interests to the extent such capital costs are charged
against the applicable oil and gas revenues in calculating the Net Profits
payable to the Partnerships. For financial reporting purposes only, such
capital costs are reported as capital expenditures in the Partnerships'
Statements of Cash Flows.
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 Net
Profits Interests cost of oil and gas properties, an increase in net
income for the cumulative effect of the change in accounting principle,
and an asset retirement obligation, resulting in a decrease of accounts
receivable - net profits, in the following approximate amounts for each
Partnership:
-11-
Increase in
Net Income
Increase for the
in Change in Asset
Net Profits Accounting Retirement
Partnerships Interests Principle Obligation
------------ ----------- ---------- ----------
P-7 $311,000 $ 400 $311,000
P-8 234,000 5,000 229,000
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 Net Profits
Interests.
The asset retirement obligation will be adjusted upwards each quarter in
order to recognize accretion of the time-related discount factor. For the
nine months ended September 30, 2003, the P-7 and P-8 Partnerships
recognized approximately $20,000 and $14,000, respectively, of an increase
in depletion of Net Profits Interests, which was comprised of accretion of
the asset retirement obligation and depletion of the increase in Net
Profits Interests.
If this accounting policy had been in effect on January 1, 2002, the
proforma impact for the P-7 and P-8 Partnerships during the nine months
ended September 30, 2002 would have been an increase in depreciation,
depletion, and amortization expense of approximately $20,000 and $13,000,
respectively.
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 September 30, 2003, the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
P-7 $6,661 $49,659
P-8 4,343 30,570
-12-
During the nine months ended September 30, 2003, the following payments
were made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
P-7 $29,554 $148,977
P-8 25,563 91,710
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.
-13-
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 were formed for the purpose of acquiring Net Profits
Interests located in the continental United States. In general, each
Partnership acquired passive interests in producing properties and does
not directly engage in development drilling or enhanced recovery projects.
Therefore, the economic life of each Partnership is limited to the period
of time required to fully produce its acquired oil and gas reserves. A Net
Profits Interest entitles the Partnerships to a portion of the oil and gas
sales less operating and production expenses and development costs
generated by the owner of the underlying Working Interests. The net
proceeds from the oil and gas operations are distributed to the Limited
Partners and General Partner in accordance with the terms of the
Partnerships' Partnership Agreements.
-14-
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
----------- ------------------ ---------------
P-7 February 28, 1992 $18,870,200
P-8 February 28, 1992 11,616,800
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 Partnerships' Net Profits Interests 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 September 30, 2003 and the
net revenue generated from future operations will provide sufficient
working capital to meet current and future obligations.
Occasional expenditures by the Affiliated Programs for new wells or well
recompletions or workovers, however, may reduce or eliminate cash
available for a particular quarterly cash distribution. During the nine
months ended September 30, 2003, capital expenditures affecting the P-7
and P-8 Partnerships' Net Profits Interests totaled $392,375 and $238,801,
respectively. These capital expenditures were indirectly incurred as a
result of drilling activities on one large unitized property, the
Robertson North Unit in Gaines County, Texas. As of the date of this
quarterly report, this drilling is still in progress. In addition, during
the nine months ended September 30, 2002, capital expenditures affecting
the P-7 and P-8 Partnerships' Net Profits Interests totaled $56,752 and
$36,473, respectively. These capital expenditures were indirectly incurred
as a result of drilling and recompletion activities on another large
unitized property, the Pecos Valley Unit in Pecos County, Texas. These
activities were successful leading to an increase in oil and gas reserves
on this property. Any other capital expenditures incurred by the
Partnerships during the nine months ended September 30, 2003 and 2002 were
not material to the Partnerships' cash flows.
-15-
The P-7 and P-8 Partnerships' Statements of Cash Flows for the nine months
ended September 30, 2003 include proceeds from the sale of certain oil and
gas properties during the third quarter of 2003. These proceeds will be
included in the Partnerships' November 2003 cash distributions.
Pursuant to the terms of the Partnerships' partnership agreements (the
"Partnership Agreements"), the Partnerships were scheduled to terminate on
February 28, 2002. 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 first two year extension period to February 28,
2004. The General Partner currently intends to exercise its second
extension option for each Partnership, thereby extending their terms to
February 28, 2006.
CRITICAL ACCOUNTING POLICIES
- ----------------------------
The Partnerships follow the successful efforts method of accounting for
their Net Profits Interests. Under the successful efforts method, the
Partnerships capitalize all acquisition costs. Such acquisition costs
include costs incurred by the Partnerships or the General Partner to
acquire a Net Profits Interest, 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 net
acquisition cost to the Partnerships of the Net Profits Interests in
properties acquired by the General Partner consists of the cost of
acquiring the underlying properties adjusted for the net cash results of
operations, including any interest incurred to finance the acquisition,
for the period of time the properties are held by the General Partner.
Depletion of the cost of Net Profits Interests is computed on the
units-of-production method. The Partnerships' calculation of depletion of
its Net Profits Interests includes estimated dismantlement and abandonment
costs and estimated salvage value of the equipment.
The Partnerships evaluate the recoverability of the carrying costs of
their Net Profits Interests in proved oil and gas properties for each oil
and gas field (rather than separately for each well). If the unamortized
costs of a Net Profits Interest within a field exceeds the expected
undiscounted future cash flows from such Net Profits Interest, the cost of
the Net Profits Interest is written down to fair value, which is
determined by using the estimated discounted future cash flows from the
Net Profits Interest.
-16-
Accounts Receivable (Accounts Payable) - Net Profits
Revenues from a Net Profits Interest consist of a share of the oil and gas
sales of the property, less operating and production expenses. The
partnerships accrue for oil and gas revenues less expenses from the Net
Profits Interests. Sales of gas applicable to the Net Profits Interests
are recorded as revenue when the gas is metered and title transferred
pursuant to the gas sales contracts. During such times as sales of gas
exceed a Partnership's pro rata share of estimated total gas reserves
attributable to the underlying property, such excess is recorded as a
liability. The rates per Mcf used to calculate this liability are based on
the average gas price received for the volumes at the time the
overproduction occurred. This also approximates the price for which the
Partnerships are currently settling this liability. This liability is
recorded as a reduction of accounts receivable.
Included in accounts receivable (payable) - Net Profits are amounts which
represent costs deferred or accrued for Net Profits relating to lease
operating expenses incurred in connection with the net underproduced or
overproduced gas imbalance positions. The rate used in calculating the
deferred charge or accrued liability is the annual average production
costs per Mcf. Also included in accounts receivable (payable) - Net
Profits is the asset retirement obligation.
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). On January 1,
2003, the Partnerships adopted FAS No. 143 and recorded an increase in Net
Profits Interests, an increase in net income for the cumulative effect of
the change in accounting principle, and an asset retirement obligation,
resulting in a decrease of accounts receivable - Net Profits, in the
following approximate amounts for each Partnership:
-17-
Increase in
Net Income
Increase for the
in Change in Asset
Net Profits Accounting Retirement
Partnerships Interests Principle Obligation
------------ ----------- ---------- ----------
P-7 $311,000 $ 400 $311,000
P-8 234,000 5,000 229,000
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 Net Profits
Interests.
The asset retirement obligation will be adjusted upwards each quarter in
order to recognize accretion of the time-related discount factor. For the
nine months ended September 30, 2003, the P-7 and P-8 Partnerships
recognized approximately $20,000 and $14,000, respectively, of an increase
in depletion of Net Profits Interests, 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 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
-18-
includes certain gas balancing adjustments which cause the gas volume to
differ from the reserve reports prepared by the General Partner.
P-7 Partnership
---------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2002 947,225 4,419,130
Production ( 20,060) ( 107,886)
Extensions and discoveries 947 367
Revisions of previous
estimates 24,012 345,103
--------- ---------
Proved reserves, March 31, 2003 952,124 4,656,714
Production ( 20,107) ( 85,892)
Extensions and discoveries 63,818 20,970
Revisions of previous
estimates 75,054 529,077
--------- ---------
Proved reserves, June 30, 2003 1,070,889 5,120,869
Production ( 22,244) ( 72,847)
Extensions and discoveries - 16,881
Sale of reserves ( 1,797) ( 241,365)
Revisions of previous
estimates ( 7,335) ( 72,235)
--------- ---------
Proved reserves, Sept. 30, 2003 1,039,513 4,751,303
========= =========
-19-
P-8 Partnership
---------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2002 556,658 3,047,476
Production ( 12,300) ( 77,700)
Extensions and discoveries 569 209
Revisions of previous
estimates 13,809 192,809
------- ---------
Proved reserves, March 31, 2003 558,736 3,162,794
Production ( 12,095) ( 63,931)
Extensions and discoveries 39,089 12,832
Revisions of previous
estimates 46,913 381,730
------- ---------
Proved reserves, June 30, 2003 632,643 3,493,425
Production ( 13,228) ( 55,525)
Sale of reserves ( 2,359) ( 316,049)
Revisions of previous
estimates ( 4,208) ( 46,001)
------- ---------
Proved reserves, Sept. 30, 2003 612,848 3,075,850
======= =========
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 September 30, 2003, 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
-20-
and gas production subsequent to September 30, 2003. There can be no
assurance that the prices used in calculating the net present value of the
Partnerships' proved reserves at September 30, 2003 will actually be
realized for such production.
Net Present Value of Reserves (In 000's)
-------------------------------------------------------
Partnership 9/30/03 6/30/03 3/31/03 12/31/02
----------- ------- ------- ------- --------
P-7 $11,480 $13,338 $12,731 $12,899
P-8 7,364 9,006 8,592 8,722
Oil and Gas Prices
-------------------------------------------------------
Pricing 9/30/03 6/30/03 3/31/03 12/31/02
----------- ------- ------- ------- --------
Oil (Bbl) $ 26.00 $ 27.00 $ 27.75 $ 28.00
Gas (Mcf) 4.58 5.18 5.06 4.74
The Partnerships had downward revisions in estimated oil and gas reserves
and the related estimated net present value of reserves at September 30,
2003 as compared to June 30, 2003 primarily due to the sale of several
properties during the three months ended September 30, 2003 and the
decreases in the oil and gas prices used to value the reserves.
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:
-21-
* 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, to an extent, 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.
-22-
P-7 PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2003 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2002.
Three Months Ended September 30,
--------------------------------
2003 2002
-------- --------
Net Profits $590,062 $537,608
Barrels produced 22,244 18,301
Mcf produced 72,847 86,102
Average price/Bbl $ 29.22 $ 27.38
Average price/Mcf $ 3.65 $ 2.90
As shown in the table above, total Net Profits increased $52,454 (9.8%)
for the three months ended September 30, 2003 as compared to the three
months ended September 30, 2002. Of this increase, approximately (i)
$108,000 was related to an increase in volumes of oil sold and (ii)
$41,000 and $55,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately (i) $113,000 related to an increase in
production expenses and (ii) $39,000 related to a decrease in volumes of
gas sold. Volumes of oil sold increased 3,943 barrels, while volumes of
gas sold decreased 13,255 Mcf for the three months ended September 30,
2003 as compared to the three months ended September 30, 2002. The
increase in volumes of oil sold was primarily due to (i) an increase in
production on one large unitized property due to the completion of several
wells within that property during late 2002 and early 2003 and (ii) a
positive prior period volume adjustment made by the purchaser on one
significant well during the three months ended September 30, 2003. The
decrease in volumes of gas sold was primarily due to (i) normal declines
in production and (ii) the shutting-in of one significant well during the
three months ended September 30, 2003 in order to perform a workover on
that well. The shut-in well is expected to return to production in late
2003. These decreases were partially offset by a negative prior period gas
balancing adjustment on one significant well during the three months ended
September 30, 2002. The increase in production expenses was primarily due
to (i) workover expenses incurred on several wells during the three months
ended September 30, 2003 and (ii) a negative prior period lease operating
expense adjustment on one significant well during the three months ended
September 30, 2002. Average oil and gas prices increased to $29.22 per
barrel and $3.65 per Mcf, respectively, for the three months ended
September 30, 2003 from $27.38 per barrel and $2.90 per Mcf, respectively,
for the three months ended September 30, 2002.
-23-
As discussed in "Liquidity and Capital" Resources above, the P-7
Partnership sold certain oil and gas properties during the three months
ended September 30, 2003 and recognized a $368,610 gain on such sales. No
such sales occurred during the three months ended September 30, 2002.
Depletion of Net Profits Interests increased $34,267 (74.9%) for the three
months ended September 30, 2003 as compared to the three months ended
September 30, 2002. This increase was primarily due to (i) an increase in
depletable Net Profits Interests primarily due to developmental drilling
on one large unitized property during the three months ended September 30,
2003 and (ii) downward revisions in the estimates of remaining oil and gas
reserves for the three months ended September 30, 2003. As a percentage of
Net Profits, this expense increased to 13.6% for the three months ended
September 30, 2003 from 8.5% for the three months ended September 30,
2002. This percentage increase was primarily due to the dollar increase in
depletion of Net Profits Interests.
General and administrative expenses increased $2,332 (4.3%) for the three
months ended September 30, 2003 as compared to the three months ended
September 30, 2002. As a percentage of Net Profits, these expenses
decreased to 9.5% for the three months ended September 30, 2003 from 10.0%
for the three months ended September 30, 2002.
NINE MONTHS ENDED SEPTEMBER 30, 2003 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2002.
Nine Months Ended September 30,
-------------------------------
2003 2002
---------- ----------
Net Profits $1,910,436 $1,290,855
Barrels produced 62,411 65,988
Mcf produced 266,625 254,734
Average price/Bbl $ 29.36 $ 22.77
Average price/Mcf $ 4.44 $ 2.60
As shown in the table above, total Net Profits increased $619,581 (48.0%)
for the nine months ended September 30, 2003 as compared to the nine
months ended September 30, 2002. Of this increase, approximately $411,000
and $492,000, respectively, were related to increases in the average
prices of oil and gas sold. These increases were partially offset by
decreases of approximately (i) $233,000 related to an increase in
production expenses and (ii) $81,000 related to a decrease in volumes of
oil sold. Volumes of oil sold decreased 3,577 barrels, while volumes of
gas sold increased 11,891 Mcf for the nine months ended September 30, 2003
as compared to the nine months ended September 30, 2002. The increase in
volumes of gas sold was primarily due to a positive prior period volume
adjustment on one significant well during the nine months ended September
30, 2003, which increase was partially offset by
-24-
normal declines in production. The increase in production expenses was
primarily due to (i) workover expenses incurred on several wells during
the nine months ended September 30, 2003, (ii) the increase in production
taxes associated with the increase in oil and gas sales, and (iii) a
negative prior period lease operating expense adjustment on one
significant well during the nine months ended September 30, 2002. Average
oil and gas prices increased to $29.36 per barrel and $4.44 per Mcf,
respectively, for the nine months ended September 30, 2003 from $22.77 per
barrel and $2.60 per Mcf, respectively, for the nine months ended
September 30, 2002.
As discussed in "Liquidity and Capital Resources" above, the P-7
Partnership sold certain oil and gas properties during the nine months
ended September 30, 2003 and recognized a $368,610 gain on such sales. No
such sales occurred during the nine months ended September 30, 2002.
Depletion of Net Profits Interests increased $31,223 (16.1%) for the nine
months ended September 30, 2003 as compared to the nine months ended
September 30, 2002. This increase was primarily due to an increase in
depletable Net Profits Interests primarily due to developmental drilling
on one large unitized property during the nine months ended September 30,
2003. As a percentage of Net Profits, this expense decreased to 11.8% for
the nine months ended September 30, 2003 from 15.0% for the nine months
ended September 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 $2,292 (1.3%) for the nine
months ended September 30, 2003 as compared to the nine months ended
September 30, 2002. As a percentage of Net Profits, these expenses
decreased to 9.3% for the nine months ended September 30, 2003 from 13.7%
for the nine months ended September 30, 2002. This percentage decrease was
primarily due to the increase in Net Profits.
Cumulative cash distributions to the Limited Partners through September
30, 2003 were $17,509,916 or 92.79% of Limited Partners' capital
contributions.
-25-
P-8 PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2003 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2002.
Three Months Ended September 30,
--------------------------------
2003 2002
-------- --------
Net Profits $404,883 $357,781
Barrels produced 13,228 11,277
Mcf produced 55,525 66,669
Average price/Bbl $ 29.25 $ 27.52
Average price/Mcf $ 3.70 $ 2.84
As shown in the table above, total Net Profits increased $47,102 (13.2%)
for the three months ended September 30, 2003 as compared to the three
months ended September 30, 2002. Of this increase, approximately (i)
$23,000 and $48,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $54,000 was related to an
increase in volumes of oil sold. These increases were partially offset by
decreases of approximately (i) $46,000 related to an increase in
production expenses and (ii) $32,000 related to a decrease in volumes of
gas sold. Volumes of oil sold increased 1,951 barrels, while volumes of
gas sold decreased 11,144 Mcf for the three months ended September 30,
2003 as compared to the three months ended September 30, 2002. The
increase in volumes of oil sold was primarily due to (i) an increase in
production on one large unitized property due to the completion of several
wells during late 2002 and early 2003 and (ii) a positive prior period
volume adjustment made by the purchaser on one significant well during the
three months ended September 30, 2003. The decrease in volumes of gas sold
was primarily due to (i) normal declines in production and (ii) the
shutting-in of one significant well during the three months ended
September 20, 2003 in order to perform a workover on that well. The
shut-in well is expected to return to production in late 2003. These
decreases were partially offset by a negative prior period gas balancing
adjustment on one significant well during the three months ended September
30, 2002. The increase in production expenses was primarily due to (i)
workover expenses incurred on several wells during the three months ended
September 30, 2003 and (ii) a negative prior period lease operating
expense adjustment on one significant well during the three months ended
September 30, 2002. Average oil and gas prices increased to $29.25 per
barrel and $3.70 per Mcf, respectively, for the three months ended
September 30, 2003 from $27.52 per barrel and $2.84 per Mcf, respectively,
for the three months ended September 30, 2002.
-26-
As discussed in "Liquidity and Capital Resources" above, the P-8
Partnership sold certain oil and gas properties during the three months
ended September 30, 2003 and recognized a $482,658 gain on such sales. No
such sales occurred during the three months ended September 30, 2002.
Depletion of Net Profits Interests increased $17,779 (58.6%) for the three
months ended September 30, 2003 as compared to the three months ended
September 30, 2002. This increase was primarily due to (i) an increase in
depletable Net Profits Interests primarily due to developmental drilling
on one large unitized property during the three months ended September 30,
2003 and (ii) downward revisions in the estimates of remaining oil and gas
reserves for the three months ended September 30, 2003. As a percentage of
Net Profits, this expense increased to 11.9% for the three months ended
September 30, 2003 from 8.5% for the three months ended September 30,
2002. This percentage increase was primarily due to the dollar increase in
depletion of Net Profits Interests.
General and administrative expenses increased $1,105 (3.3%) for the three
months ended September 30, 2003 as compared to the three months ended
September 30, 2002. As a percentage of Net Profits, these expenses
decreased to 8.6% for the three months ended September 30, 2003 from 9.4%
for the three months ended September 30, 2002.
NINE MONTHS ENDED SEPTEMBER 30, 2003 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2002.
Nine Months Ended September 30,
-------------------------------
2003 2002
---------- --------
Net Profits $1,332,840 $889,618
Barrels produced 37,623 40,523
Mcf produced 197,156 209,527
Average price/Bbl $ 29.36 $ 22.83
Average price/Mcf $ 4.53 $ 2.58
As shown in the table above, total Net Profits increased $443,222 (49.8%)
for the nine months ended September 30, 2003 as compared to the nine
months ended September 30, 2002. Of this increase, approximately $246,000
and $385,000, respectively, were related to increases in the average
prices of oil and gas sold. These increases were partially offset by
decreases of approximately (i) $90,000 related to an increase in
production expenses and (ii) $66,000 related to a decrease in volumes of
oil sold. Volumes of oil and gas sold decreased 2,900 barrels and 12,371
Mcf, respectively, for the nine months ended September 30, 2003 as
compared to the nine months ended September 30, 2002. The decrease in
volumes of gas sold was primarily due to normal declines in production.
This decrease was partially offset by a positive prior period volume
adjustment on one significant well during the nine
-27-
months ended September 30, 2003. Average oil and gas prices increased to
$29.36 per barrel and $4.53 per Mcf, respectively, for the nine months
ended September 30, 2003 from $22.83 per barrel and $2.58 per Mcf,
respectively, for the nine months ended September 30, 2002.
As discussed in "Liquidity and Capital Resources" above, the P-8
Partnership sold certain oil and gas properties during the nine months
ended September 30, 2003 and recognized a $482,658 gain on such sales. No
such sales occurred during the nine months ended September 30, 2002.
Depletion of Net Profits Interests increased $14,673 (12.3%) for the nine
months ended September 30, 2003 as compared to the nine months ended
September 30, 2002. This increase was primarily due to an increase in
depletable Net Profits Interests primarily due to developmental drilling
on one large unitized property during the nine months ended September 30,
2003. As a percentage of Net Profits, this expense decreased to 10.1% for
the nine months ended September 30, 2003 from 13.4% for the nine months
ended September 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 $2,083 (1.8%) for the nine
months ended September 30, 2003 as compared to the nine months ended
September 30, 2002. As a percentage of Net Profits, these expenses
decreased to 8.8% for the nine months ended September 30, 2003 from 12.9%
for the nine months ended September 30, 2002. This percentage decrease was
primarily due to the increase in Net Profits.
Cumulative cash distributions to the Limited Partners through September
30, 2003 were $11,464,583 or 98.69% of Limited Partners' capital
contributions. Management anticipates that the P-8 Partnership should
achieve payout with the cash distributions to be paid in November 2003.
After payout, operations and revenues for the P-8 Partnership will be
allocated using after payout percentages included in the P-8 Partnership's
Partnership Agreement. After payout percentages allocate operating income
and expenses 10% to the General Partner and 90% to the Limited Partners.
Before payout, operating income and expenses were allocated 5% to the
General Partner and 95% to the Limited Partners.
-28-
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
As of the end of this period covered by this report, the principal
executive officer and principal financial officer conducted an
evaluation of the Partnerships' disclosure controls and procedures
(as defined in Rules 13a-15(e) and 15d-15(e) under the Securities
and Exchange Act of 1934). Based on this evaluation, such officers
concluded that the Partnerships' disclosure controls and procedures
are effective to ensure that information required to be disclosed by
the Partnerships in reports filed under the Exchange Act is
recorded, processed, summarized, and reported accurately and within
the time periods specified in the Securities and Exchange Commission
rules and forms.
-29-
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
31.1 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the P-7 Partnership.
31.2 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the P-7 Partnership.
31.3 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the P-8 Partnership.
31.4 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the P-8 Partnership.
32.1 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 for the P-7 Partnership.
32.2 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 for the P-8 Partnership.
(b) Reports on Form 8-K.
None.
-30-
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 INSTITUTIONAL/PENSION ENERGY
INCOME LIMITED PARTNERSHIP P-7
GEODYNE INSTITUTIONAL/PENSION ENERGY
INCOME LIMITED PARTNERSHIP P-8
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: November 13, 2003 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: November 13, 2003 By: /s/Craig D. Loseke
--------------------------------
(Signature)
Craig D. Loseke
Chief Accounting Officer
-31-
INDEX TO EXHIBITS
-----------------
Exh.
No. Exhibit
- ---- -------
31.1 Certification by Dennis R. Neill required by Rule 13a-14(a)/15d-
14(a) for the Geodyne Institutional/Pension Energy Income Limited
Partnership P-7.
31.2 Certification by Craig D. Loseke required by Rule 13a-14(a)/15d-
14(a) for the Geodyne Institutional/Pension Energy Income Limited
Partnership P-7.
31.3 Certification by Dennis R. Neill required by Rule 13a-14(a)/15d-
14(a) for the Geodyne Institutional/Pension Energy Income Limited
Partnership P-8.
31.4 Certification by Craig D. Loseke required by Rule 13a-14(a)/15d-
14(a) for the Geodyne Institutional/Pension Energy Income Limited
Partnership P-8.
32.1 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 Institutional/Pension Energy Income Limited Partnership P-7.
32.2 Certification pursuant to 18 U.S.C. Sesction 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Institutional/Pension Energy Income Limited Partnership P-8.
-32-