PDC 2002 B LTD PARTNERSHIP - FORM 8-K - EX-99.1 - PROFORMA FINANCIAL INFORMATION - June 24, 2013

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8-K - ITEM 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS - PDC 2002 B LTD PARTNERSHIPpdc2002-b8kpiceanceclose.htm


Exhibit 99.1

PRO FORMA FINANCIAL INFORMATION


The following unaudited pro forma condensed financial statements are based on the historical consolidated financial statements of PDC 2002-B Limited Partnership (this “Partnership”) and have been adjusted to give effect to the divestiture of its Piceance Basin oil and gas properties (the “Divestiture”). The unaudited pro forma condensed balance sheet as of March 31, 2013 gives effect to the Divestiture as if it had occurred on March 31, 2013. The unaudited pro forma condensed statements of operations for the years ended December 31, 2012 and 2011 and the three month periods ended March 31, 2013 and 2012 give effect to the Divestiture as if it had occurred on January 1, 2011. The unaudited pro forma condensed information has been prepared using estimates based on preliminary amounts and is subject to customary adjustments.

The unaudited pro forma condensed information should be read in conjunction with this Partnership's historical consolidated financial statements and accompanying notes which are included in its Annual Report on Form 10-K for the year ended December 31, 2012, as filed on March 15, 2013 with the U.S. Securities and Exchange Commission (the “SEC”), and its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2013, as filed on May 10, 2013 with the SEC.

The results of operations for the three month periods ended March 31, 2013 and 2012 included in this Partnership's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2013 give effect to the Divestiture as discontinued operations. Therefore, no pro forma adjustments have been reflected in the condensed statements of operations for the three month periods ended March 31, 2013 and 2012.

The pro forma condensed statements of operations for the years ended December 31, 2012 and 2011 include the following adjustments:

•
Natural gas, NGL and crude oil sales have been adjusted downward to reflect the reduction in revenue related to assets being divested; and

•
Natural gas, NGL and crude oil production costs, depreciation, depletion and amortization and accretion of asset retirement obligations have been adjusted downward to reflect the costs and expenses associated with the assets being divested.

The pro forma condensed balance sheet as of March 31, 2013 includes the following adjustments:

•
The sales price, net of selling fees and other preliminary adjustments, is reflected in cash and cash equivalents;

•
The adjustments to assets and liabilities held for sale, other current assets and current liabilities reflect a reduction in the value of the assets and related liabilities being divested; and

•
The net gain on these transactions is reflected as an adjustment to partners' equity.


















PDC 2002-B LIMITED PARTNERSHIP
Pro Forma Condensed Statements of Operations
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March, 31
 
2013
 
2012
 
As Reported
 
Pro Forma Adjustments - Divestiture
 
Pro Forma
 
As Reported
 
Pro Forma Adjustments - Divestiture
 
Pro Forma
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Natural gas, NGL and crude oil sales
$
56,243

 
$
—

 
$
56,243

 
$
75,644

 
$
—

 
$
75,644

Commodity price risk management gain, net
(19,945
)
 
—

 
(19,945
)
 
61,124

 
—

 
61,124

Total revenues
36,298

 
—

 
36,298

 
136,768

 
—

 
136,768

 
 
 
 
 
 
 
 
 
 
 
 
Operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Natural gas, NGLs and crude oil production costs
30,102

 
—

 
30,102

 
22,071

 
—

 
22,071

Direct costs - general and administrative
30,686

 
—

 
30,686

 
28,858

 
—

 
28,858

Depreciation, depletion and amortization
17,574

 
—

 
17,574

 
48,721

 
—

 
48,721

Accretion of asset retirement obligations
2,775

 
—

 
2,775

 
2,578

 
—

 
2,578

Total operating costs and expenses
81,137

 
—

 
81,137

 
102,228

 
—

 
102,228

 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
(44,839
)
 
$
—

 
$
(44,839
)
 
$
34,540

 
$
—

 
$
34,540

 
 
 
 
 
 
 
 
 
 
 
 
Interest income
5

 
—

 
5

 
5

 
—

 
5

 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations
$
(44,834
)
 
$
—

 
$
(44,834
)
 
$
34,545

 
$
—

 
$
34,545

 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) allocated to partners
$
(44,834
)
 
$
—

 
$
(44,834
)
 
$
34,545

 
$
—

 
$
34,545

Less: Managing General Partner interest in net income (loss)
(8,967
)
 
—

 
(8,967
)
 
6,909

 
—

 
6,909

Net income (loss) allocated to Investor Partners
$
(35,867
)
 
$
—

 
$
(35,867
)
 
$
27,636

 
$
—

 
$
27,636

 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per Investor Partner unit
$
(64
)
 

 
$
(64
)
 
$
49

 

 
$
49

 
 
 
 
 
 
 
 
 
 
 
 
Investor Partner units outstanding
559.02

 
 
 
559.02

 
559.02

 
 
 
559.02





PDC 2002-B LIMITED PARTNERSHIP
Pro Forma Condensed Consolidated Statements of Operations
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December, 31
 
2012
 
2011
 
As Reported
 
Pro Forma Adjustments - Divestiture
 
Pro Forma
 
As Reported
 
Pro Forma Adjustments - Divestiture
 
Pro Forma
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Natural gas, NGL and crude oil sales
$
328,029

 
$
(132,222
)
 
$
195,807

 
$
618,793

 
$
(208,227
)
 
$
410,566

Commodity price risk management gain, net
43,298

 
—

 
43,298

 
162,038

 
—

 
162,038

Total revenues
371,327

 
(132,222
)
 
239,105

 
780,831

 
(208,227
)
 
572,604

 
 
 
 
 
 
 
 
 
 
 
 
Operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Natural gas, NGLs and crude oil production costs
263,214

 
(165,911
)
 
97,303

 
253,578

 
(131,857
)
 
121,721

Direct costs - general and administrative
127,801

 
—

 
127,801

 
308,164

 
—

 
308,164

Depreciation, depletion and amortization
208,705

 
(55,450
)
 
153,255

 
345,783

 
(76,189
)
 
269,594

Accretion of asset retirement obligations
14,442

 
(3,839
)
 
10,603

 
9,815

 
(3,609
)
 
6,206

Loss on impairment of natural gas and crude oil properties
1,078,355

 
—

 
1,078,355

 
328,097

 
(328,097
)
 
—

Total operating costs and expenses
1,692,517

 
(225,200
)
 
1,467,317

 
1,245,437

 
(539,752
)
 
705,685

 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
(1,321,190
)
 
$
92,978

 
$
(1,228,212
)
 
$
(464,606
)
 
$
331,525

 
$
(133,081
)
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
21

 
—

 
21

 
86

 
—

 
86

 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations
$
(1,321,169
)
 
$
92,978

 
$
(1,228,191
)
 
$
(464,520
)
 
$
331,525

 
$
(132,995
)
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) allocated to partners
$
(1,321,169
)
 
$
92,978

 
$
(1,228,191
)
 
$
(464,520
)
 
$
331,525

 
$
(132,995
)
Less: Managing General Partner interest in net income (loss)
(264,234
)
 
18,596

 
(245,638
)
 
(92,904
)
 
66,305

 
(26,599
)
Net income (loss) allocated to Investor Partners
$
(1,056,935
)
 
$
74,382

 
$
(982,553
)
 
$
(371,616
)
 
$
265,220

 
$
(106,396
)
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per Investor Partner unit
$
(1,891
)
 


 
$
(1,758
)
 
$
(665
)
 


 
$
(190
)
 
 
 
 
 
 
 
 
 
 
 
 
Investor Partner units outstanding
559.02

 
 
 
559.02

 
559.02

 
 
 
559.02






    
PDC 2002-B LIMITED PARTNERSHIP
Pro Forma Condensed Balance Sheet
(unaudited)
 
 
 
 
 
 
 
March 31, 2013
 
As Reported
 
Pro Forma Adjustments - Divestiture
 
Pro Forma
Assets
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
10,106

 
$
435,290

 
$
445,396

Other current assets
179,892

 
(80,426
)
 
99,466

Total current assets
189,998

 
354,864

 
544,862

Properties and equipment, net
600,661

 
—

 
600,661

Assets held for sale
272,904

 
(272,904
)
 
—

Other assets
51,010

 
—

 
51,010

Total Assets
$
1,114,573

 
$
81,960

 
$
1,196,533

 
 
 
 
 
 
Liabilities and Shareholders' Equity

 
 
 
 
 
Liabilities
 
 
 
 
 
Current liabilities
$
125,037

 
$
(44,435
)
 
$
80,602

Asset retirement obligations
160,955

 
—

 
160,955

Liabilities held for sale
66,082

 
(66,082
)
 
—

Total liabilities
352,074

 
(110,517
)
 
241,557

 
 
 
 
 
 
Commitments and contingent liabilities
 
 
 
 

 
 
 
 
 
 
Partners' equity:
 
 
 
 
 
Managing General Partner
224,231

 
38,496

 
262,727

Limited Partners - 559.02 units issued and outstanding
538,268

 
153,981

 
692,249

Total Partners' equity
762,499

 
192,477

 
954,976

Total Liabilities and Equity

$
1,114,573

 
$
81,960

 
$
1,196,533

 
 
 
 
 
 



PDC 2002 B LTD PARTNERSHIP Reports