Back to GetFilings.com
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2002
or
[ ] TRANSITION REPORT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
-------- --------
Commission File No. 333-76911
MEWBOURNE ENERGY PARTNERS 00-A, L.P.
Delaware 75-2866283
- ------------------------------ ----------------------
(State or jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
3901 South Broadway, Tyler, Texas 75701
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code: (903) 561-2900
Not Applicable
-------------------------------------------------------
(Former name, former address and former fiscal year, if
changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. [X] Yes [ ] No
1
MEWBOURNE ENERGY PARTNERS 00-A, L. P.
INDEX
Part I - Financial Information Page No.
Item 1. Financial Statements
Balance Sheets - 3
June 30, 2002 and December 31, 2001
Statements of Income - 4
For the three months ended June 30, 2002 and 2001
For the six months ended June 30, 2002 and 2001
Statements of Cash Flows - 5
For the six months ended June 30, 2002 and 2001
Statement of Changes In Partners' Capital - 6
For the six months ended June 30, 2002
Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
Part II - Other Information
Item 1. Legal Proceedings 11
Item 6. Exhibits and Reports on Form 8-K 11
2
MEWBOURNE ENERGY PARTNERS 00-A, L. P.
Part I - Financial Information
Item 1. Financial Statements
BALANCE SHEETS
June 30, 2002 and December 31, 2001
June 30, December 31,
2002 2001
------------- -------------
(Unaudited)
ASSETS
Cash $ 282,615 $ 678,281
------------- -------------
Accounts receivable, affiliate 395,553 335,986
------------- -------------
Oil and gas properties at cost,
full cost method 9,654,942 9,554,975
Less accumulated depreciation,
depletion and amortization (5,490,206) (5,146,394)
------------- -------------
4,164,736 4,408,581
------------- -------------
Total assets $ 4,842,904 $ 5,422,848
============= =============
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable, affiliate $ 30,590 $ 24,236
------------- -------------
Partners' capital
General partners 4,580,361 5,138,399
Limited partners 231,953 260,213
------------- -------------
Total partners' capital 4,812,314 5,398,612
------------- -------------
Total liabilities and partners' capital $ 4,842,904 $ 5,422,848
============= =============
The accompanying notes are an integral
part of the financial statements.
3
MEWBOURNE ENERGY PARTNERS 00-A, L. P.
STATEMENTS OF INCOME
For the three months end June 30, 2002 and 2001, and
the six months ended June 30, 2002 and 2001
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
2002 2001 2002 2001
---------- ---------- ---------- ----------
Revenues:
Oil and gas sales $ 545,929 $2,070,872 $ 879,852 $3,195,490
Interest income 1,306 12,535 3,514 39,727
---------- ---------- ---------- ----------
547,235 2,083,407 883,366 3,235,217
---------- ---------- ---------- ----------
Expenses:
Lease operating expense 123,504 67,143 224,004 116,113
Production taxes 41,616 155,558 66,117 243,985
Administrative and general expense 16,114 45,866 39,736 50,887
Depreciation, depletion and amortization 180,360 719,744 343,812 1,046,256
---------- ---------- ---------- ----------
361,594 988,311 673,669 1,457,241
---------- ---------- ---------- ----------
Net income $ 185,641 $1,095,096 $ 209,697 $1,777,976
========== ========== ========== ==========
Allocation of net income:
General partners $ 176,693 $1,042,312 $ 199,590 $1,692,278
========== ========== ========== ==========
Limited partners $ 8,948 $ 52,784 $ 10,107 $ 85,698
========== ========== ========== ==========
Basic and diluted net income per limited and
general partner interest (10,000 outstanding) $ 18.56 $ 109.51 $ 20.97 $ 177.80
========== ========== ========== ==========
The accompanying notes are an integral
part of the financial statements.
4
MEWBOURNE ENERGY PARTNERS 00-A, L. P.
STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2002 and 2001
(Unaudited)
2002 2001
----------- -----------
Cash flows from financing activities:
Net income $ 209,697 $ 1,777,976
Adjustment to reconcile net income to net cash
provided by operating activities:
Depreciation depletion and amortization 343,812 1,046,256
Changes in operating assets and liabilities:
Accounts receivables, affiliate (59,567) (1,195,820)
Accounts payable, affiliate 6,354 89,673
----------- -----------
Net cash provided by operating activities 500,296 1,718,085
----------- -----------
Cash flows from investing activities:
Purchase of oil and gas properties (99,967) (1,747,312)
----------- -----------
Net cash used in investing activities (99,967) (1,747,312)
----------- -----------
Cash flows from financing activities:
Cash distributions to partners (795,995) (1,175,000)
----------- -----------
Net cash used in financing activities (795,995) (1,175,000)
----------- -----------
Net decrease in cash (395,666) (1,204,227)
Cash, beginning of period 678,281 2,572,942
----------- -----------
Cash, end of period $ 282,615 $ 1,368,715
=========== ===========
The accompanying notes are an integral
part of the financial statements.
5
MEWBOURNE ENERGY PARTNERS 00-A, L. P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
For the six months ended June 30,2002
(Unaudited)
General Limited
Partners Partners Total
--------------- --------------- ---------------
Balance at December 31, 2001 $ 5,138,399 $ 260,213 $ 5,398,612
Cash distributions (757,628) (38,367) (795,995)
Net income 199,590 10,107 209,697
--------------- --------------- ---------------
Balance at June 30, 2002 $ 4,580,361 $ 231,953 $ 4,812,314
=============== =============== ===============
The accompanying notes are an integral
part of the financial statements.
6
MEWBOURNE ENERGY PARTNERS 00-A, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Accounting Policies
Reference is hereby made to the Partnership's Annual Report on Form 10-K for
2001, which contains a summary of significant accounting policies followed by
the partnership in the preparation of its financial statements. These policies
are also followed in preparing the quarterly report included herein.
In the opinion of management, the accompanying unaudited financial statements
contain all adjustments of a normal recurring nature necessary to present fairly
our financial position, results of operations, cash flows and partners' capital
for the periods presented. The results of operations for the interim periods are
not necessarily indicative of the final results expected for the full year.
2. Accounting for Oil and Gas Producing Activities
Mewbourne Energy Partners 00-A, L.P., (the "Partnership"), a Delaware limited
partnership formed on February 15, 2000, is engaged primarily in oil and gas
development and production in Texas, Oklahoma, New Mexico and Kansas. The
offering of limited and general partnership interests began May 5, 2000 as a
part of an offering registered under the name Mewbourne Energy Partners 99-00
Drilling Programs and concluded October 31, 2000, with total investor
contributions of $10,000,000.
The Partnership follows the full-cost method of accounting for its oil and gas
activities. Under the full-cost method, all productive and nonproductive costs
incurred in the acquisition, exploration and development of oil and gas
properties are capitalized. Depreciation, depletion and amortization of oil and
gas properties subject to amortization is computed on the units-of-production
method based on the proved reserves underlying the oil and gas properties. At
June 30, 2002, substantially all capitalized costs were subject to amortization.
Gains and losses on the sale or other disposition of properties are not
recognized unless such adjustments would significantly alter the relationship
between capitalized costs and the proved oil and gas reserves. Capitalized costs
are subject to a periodic ceiling test that limits such costs to the aggregate
of the present value of future net cash flows of proved reserves and the lower
of cost or fair value of unproved properties.
3. Comprehensive Income
Total comprehensive income (loss) equals net income (loss) during each of the
periods presented herein.
4. Recently Issued Accounting Standards
In August 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 143 (FAS 143), Accounting for Asset
Retirement Obligations. This statement changes financial accounting and
reporting for obligations associated with the
7
retirement and disposal of long-lived assets and the associated asset retirement
costs and is effective for the Partnership beginning January 1, 2003. The
Partnership is currently evaluating the effect of adopting FAS 143.
In August 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 144 (FAS 144), Accounting for the Impairment
or Disposal of Long-Lived Assets. This statement changes financial accounting
and reporting for the impairment or disposal of long-lived assets and was
effective for the Partnership beginning January 1, 2002. The adoption of FAS 144
did not have a material impact on the Partnership.
In June 2002, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 146 (FAS 146), Accounting for Costs
Associated with Exit or Disposal Activities. This statement addresses financial
accounting and reporting for costs associated with exit or disposal activities
and is effective for the Partnership beginning January 1, 2003. The Partnership
is currently evaluating the effect of adopting FAS 146.
8
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity and Capital Resources
Mewbourne Energy Partners 00-A, L.P. (the "Partnership") was formed February 15,
2000. The offering of limited and general partnership interests began on May 5,
2000 and concluded on October 31, 2000, with investor partner contributions of
$10,000,000.
The Partnership has acquired interests in oil and gas prospects for the purpose
of development drilling. At June 30, 2002, 28 wells had been drilled and were
productive and 3 wells were drilled and abandoned.
Operations will be conducted with available funds and revenues generated from
oil and gas activities. No bank borrowing is anticipated. The Partnership had
net working capital of $647,578 at June 30, 2002.
During the six months ended June 30, 2002, the Partnership made cash
distributions to the investor partners in the amount of $795,995 as compared to
$1,175,000 for the six months ended June 30, 2001. The Partnership expects that
cash distributions will continue during the remainder of 2002 as additional oil
and gas revenues are received.
The sale of crude oil and natural gas produced by the Partnership will be
affected by a number of factors which are beyond the Partnership's control.
These factors include the price of crude oil and natural gas, the fluctuating
supply of and demand for these products, competitive fuels, refining,
transportation, extensive federal and state regulations governing the production
and sale of crude oil and natural gas, and other competitive conditions. It is
impossible to predict with any certainty the future effect of these factors on
the Partnership.
Results of Operations
Three months ended June 30, 2002 as compared to the three months ended June 30,
2001.
Oil and gas revenues. Oil and gas revenues during the three months ended June
30, 2002 totaled $545,929. Production volumes during the period were
approximately 732 bbls of oil and 164,891 mcf of gas at a corresponding average
realized price of $25.86 per bbl of oil and $3.20 per mcf of gas. Oil and gas
revenues for the three months ended June 30, 2001 totaled $2,070,872. Production
Volumes during the period were approximately 2,206 bbls of oil and 442,138 mcf
of gas at a corresponding average realized price of $24.91 per bbl of oil and
$4.56 per mcf of gas. Oil and Gas revenues declined primarily due to one well
located in western Oklahoma. The well began producing at a high rate of
production and rapidly declined. The production has now stabilized therefore,
future oil and gas revenues should remain stable subject to normal declines and
price variations. A decrease in the price of gas also contributed significantly
to the decline in oil and gas revenues.
Interest Income. Interest income was $1,306 during the three month period ended
June 30, 2002 as compared to $12,535 during the three months ended June 30,
2001. The decrease is primarily due to the decrease in capital available for
investment.
Lease operating expense and production taxes. Lease operating expense during the
period ended June 30, 2002 totaled $123,504 compared to $67,143 at June 30,
2001. Lease operating expenses increased primarily due to workover operations on
two wells, Production taxes during the period ended June 30, 2002 totaled
$41,616 compared to $155,558 at June 30, 2001. The decrease is primarily due to
the decline in production volumes.
9
Depreciation, depletion and amortization. Depreciation, depletion and
amortization was $180,360 for the three month period ended June 30, 2002
compared to $719,744 for the three month period ended June 30, 2001. The
decrease is primarily due to the decline in production volumes.
Six months ended June 30, 2002 as compared to the six months ended June 30,
2001.
Oil and gas revenues. Oil and gas revenues during the six months ended June 30,
2002 totaled $879,852. Production volumes during the period were approximately
1,693 bbls of oil and 319,088 mcf of gas at a corresponding average realized
price of $21.37 per bbl of oil and $2.64 per mcf of gas. Oil and gas revenues
for the six months ended June 30, 2001 totaled $3,195,490. Production Volumes
during the period were approximately 4,445 bbls of oil and 602,682 mcf of gas at
a corresponding average realized price of $26.41 per bbl of oil and $5.11 per
mcf of gas. Oil and Gas revenues declined primarily due to one well located in
western Oklahoma. The well began producing at a high rate of production and
rapidly declined. The production has now stabilized therefore, future oil and
gas revenues should remain stable subject to normal declines and price
variations. A decrease in the price of gas also contributed significantly to the
decline in oil and gas revenues.
Interest Income. Interest income was $3,514 during the six month period ended
June 30, 2002 as compared to $39,727 during the six months ended June 30, 2001.
The decrease is primarily due to the decrease in capital available for
investment.
Lease operating expense and production taxes. Lease operating expense during the
six month period ended June 30, 2002 totaled $224,004 compared to $116,113 at
June 30, 2001. Lease operating expenses increased primarily due to workover
operations on two wells. Production taxes during the six month period ended June
30, 2002 totaled $66,117 compared to $243,985 at June 30, 2001. The decrease is
primarily due to the decline in production volumes.
Depreciation, depletion and amortization. Depreciation, depletion and
amortization was $343,812 for the six month period ended June 30, 2002 compared
to $1,046,256 for the six month period ended June 30, 2001. The decrease is
primarily due to the decline in production volumes.
Recently Issued Accounting Standards
In August 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 143 (FAS 143), Accounting for Asset
Retirement Obligations. This statement changes financial accounting and
reporting for obligations associated with the retirement and disposal of
long-lived assets and the associated asset retirement costs and is effective for
the Partnership beginning January 1, 2003. The Partnership is currently
evaluating the effect of adopting FAS 143.
In August 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 144 (FAS 144), Accounting for the Impairment
or Disposal of Long-Lived Assets. This statement changes financial accounting
and reporting for the impairment or disposal of long-lived assets and is
effective for the Partnership beginning January 1, 2002. The adoption of FAS 144
will not have a material impact on the Partnership.
In June 2002, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 146 (FAS 146), Accounting for Costs
Associated with Exit or Disposal Activities. This statement addresses financial
accounting and reporting for costs associated with exit or disposal activities
and is effective for the Partnership
10
beginning January 1, 2003. The Partnership is currently evaluating the effect of
adopting FAS 146.
Part II - Other Information
Item 1. Legal Proceedings
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - none
(b) Reports on Form 8-K - none
11
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Partnership has duly caused this report to be signed on its behalf by the
undersigned thereto duly authorized.
MEWBOURNE ENERGY PARTNERS 00-A, L.P.
By: Mewbourne Development Corporation
Managing General Partner
Date: August 12, 2002 By: /s/ Alan Clark
-------------------------------------
Alan Clark, Treasurer
12