ITEM 1. BUSINESS
General
The Geodyne Energy Income Limited Partnership I-D (the "I-D Partnership"), Geodyne Energy Income Limited Partnership I-E (the "I-E Partnership"), and Geodyne Energy Income Limited Partnership I-F (the "I-F Partnership") (collectively, the "Partnerships") are limited partnerships formed under the Oklahoma Revised Uniform Limited Partnership Act. Each Partnership is composed of public investors as limited partners (the "Limited Partners") and Geodyne Resources, Inc. ("Geodyne"), a Delaware corporation, as the general partner. The Partnerships commenced operations on the dates set forth below:
Date of Partnership Activation ----------- ------------------
I-D March 4, 1986 I-E September 10, 1986 I-F December 16, 1986
Immediately following activation, each Partnership invested as a general partner in a separate Oklahoma general partnership which actually conducts the Partnerships' production operations. Geodyne serves as managing partner of such general partnerships. Unless the context indicates otherwise, all references to any single Partnership or all of the Partnerships in this Annual Report on Form 10-K405 ("Annual Report") are references to the Partnership and its related general partnership, collectively. In addition, unless the context indicates otherwise, all references to the "General Partner" in this Annual Report are references to Geodyne as the general partner of the Partnerships, and as the managing partner of the related general partnerships.
The General Partner currently serves as general partner of 26 limited partnerships, including the Partnerships. The General Partner is a wholly-owned subsidiary of Samson Investment Company. Samson Investment Company and its various corporate subsidiaries, including the General Partner (collectively "Samson"), are primarily engaged in the production and development of and exploration for oil and gas reserves and the acquisition and operation of producing properties. At December 31, 2000, Samson owned interests in approximately 13,500 oil and gas wells located in 19 states of the United States and the countries of Canada, Venezuela, and Russia. At December 31, 2000, Samson operated approximately 2,700 oil and gas wells located in 14 states of the United States, as well as Canada, Venezuela, and Russia.
The Partnerships are currently engaged in the business of owning interests in producing oil and gas properties located in the continental United States. The Partnerships may also engage to a limited extent in development drilling on producing oil and gas properties as required for the prudent management of the Partnerships.
As limited partnerships, the Partnerships have no officers, directors, or employees. They rely instead on the personnel of the General Partner and Samson. As of February 15, 2001, Samson employed approximately 965 persons. No employees are covered by collective bargaining agreements, and management believes that Samson provides a sound employee relations environment. For information regarding the executive officers of the General Partner, see "Item 10. Directors and Executive Officers of the General Partner."
The General Partner's and the Partnerships' principal place of business is located at Samson Plaza, Two West Second Street, Tulsa, Oklahoma 74103, and their telephone number is (918) 583-1791 or (888) 436-3963 [(888) GEODYNE].
Pursuant to the terms of the partnership agreements for the Partnerships (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 Partnerships for the first two year extension period to December 31, 2001.
Funding
Although the Partnership Agreements permit each Partnership to incur borrowings, operations and expenses are currently funded out of each Partnership's revenues from oil and gas sales. The General Partner may, but is not required to, advance funds to a Partnership for the same purposes for which Partnership borrowings are authorized.
Principal Products Produced and Services Rendered
The Partnerships' sole business is the production of, and related incidental development of, oil and gas. The Partnerships do not refine or otherwise process crude oil and condensate. The Partnerships do not hold any patents, trademarks, licenses, or concessions and are not a party to any government contracts. The Partnerships have no backlog of orders and do not participate in research and development activities. The Partnerships are not presently encountering shortages of oilfield tubular goods, compressors, production material, or other equipment.
Competition and Marketing
The Partnerships' revenues, net income or loss, cash flows, carrying value of oil and gas properties, and amount of oil and gas which can be economically produced depend substantially upon the prevailing prices for oil and gas. Oil and gas prices (and consequently the Partnerships' profitability) depend on a number of factors that are beyond the control of the Partnerships. These factors include worldwide political instability (especially in oil-producing regions), United Nations export embargoes, the supply and price of foreign imports of oil and gas, the level of consumer product demand (which can be heavily influenced by weather patterns), the level of domestic oil and gas production, government regulations and taxes, the price and availability of alternative fuels, the overall economic environment, and the availability and capacity of transportation and processing facilities. The effect of these factors on future oil and gas industry trends cannot be accurately predicted or anticipated. In addition, the domestic oil and gas industry is highly competitive, with a large number of companies and individuals engaged in the exploration and development of oil and gas properties. Predicting future prices is not possible. Concerning past trends, oil and gas prices in the United States have been highly volatile for many years.
Over the past ten years average yearly wellhead gas prices have generally been in the $1.40 to $2.40 per Mcf range. However, due to unusual supply and demand circumstances gas prices are currently substantially higher than the upper end of this range. Substantially all of the Partnerships' gas reserves are being sold on the "spot market." Prices on the spot market are subject to wide seasonal and regional pricing fluctuations due to the highly competitive nature of the spot market. In addition, such spot market sales are generally short-term in nature and are dependent upon the obtaining of transportation services provided by pipelines. Spot prices for the Partnerships' gas increased from approximately $2.24 per Mcf at December 31, 1999 to approximately $6.03 per Mcf at December 31, 2000. Such prices were on an MMBTU basis and differ from the prices actually received by the Partnerships due to transportation and marketing costs, BTU adjustments, and regional price and quality differences.
For the past ten years, average oil prices have generally been in the $16.00 to $24.00 per barrel range, but have been extremely volatile over the past three years. Due to global consumption and supply trends as well as a slowdown in Asian energy demand, oil prices in late 1997 and early 1998 reached historically low levels, dropping to as low as approximately $9.25 per barrel. However, production curtailment agreements among major oil producing nations and other supply and demand factors have caused recent oil prices to climb to over $30.00 per barrel in some markets. It is not known whether this trend will
continue. Prices for the Partnerships' oil increased from approximately $22.75 per barrel at December 31, 1999 to approximately $27.52 per barrel at December 31, 2000.
Future prices for both oil and gas will likely be different from the prices in effect on December 31, 2000. While it is impossible to predict whether future oil and gas prices will (i) stabilize, (ii) increase, or (iii) decrease, management believes it is possible that average oil and gas prices for the near future may be somewhat higher than the prices experienced over the past 10 years.
Significant Customers
The following customers accounted for ten percent or more of the Partnerships' oil and gas sales during the year ended December 31, 2000:
Partnership Customer Percentage ----------- -------- ----------
I-D El Paso Energy Marketing Company ("El Paso") 34.1% Sid Richardson Carbon & Gas 15.2% Hallwood Petroleum 11.0% Duke Energy Field Services, Inc. 10.7%
I-E El Paso 37.3% Sid Richardson Carbon & Gas 16.8% Amoco Production Co. 10.0%
I-F El Paso 29.5% Amoco Production Co. 12.5%
In the event of interruption of purchases by one or more of the Partnerships' significant customers or the cessation or material change in availability of open access transportation by the Partnerships' pipeline transporters, the Partnerships may encounter difficulty in marketing their gas and in maintaining historic sales levels. Management does not expect any of its open access transporters to seek authorization to terminate their transportation services. Even if the services were terminated, management believes that alternatives would be available whereby the Partnerships would be able to continue to market their gas.
The Partnerships' principal customers for crude oil production are refiners and other companies which have pipeline facilities near the producing properties of the Partnerships. In the event pipeline facilities are not conveniently available to production areas, crude oil is usually trucked by purchasers to storage facilities.
Oil, Gas, and Environmental Control Regulations
Regulation of Production Operations -- The production of oil and gas is subject to extensive federal and state laws and regulations governing a wide variety of matters, including the drilling and spacing of wells, allowable rates of production, prevention of waste and pollution, and protection of the environment. In addition to the direct costs borne in complying with such regulations, operations and revenues may be impacted to the extent that certain regulations limit oil and gas production to below economic levels.
Regulation of Sales and Transportation of Oil and Gas -- Sales of crude oil and condensate are made by the Partnerships at market prices and are not subject to price controls. The sale of gas may be subject to both federal and state laws and regulations. The provisions of these laws and regulations are complex and affect all who produce, resell, transport, or purchase gas, including the Partnerships. Although virtually all of the Partnerships' gas production is not subject to price regulation, other regulations affect the availability of gas transportation services and the ability of gas consumers to continue to purchase or use gas at current levels. Accordingly, such regulations may have a material effect on the Partnerships' operations and projections of future oil and gas production and revenues.
Future Legislation -- Legislation affecting the oil and gas industry is under constant review for amendment or expansion. Because such laws and regulations are frequently amended or reinterpreted, management is unable to predict what additional energy legislation may be proposed or enacted or the future cost and impact of complying with existing or future regulations.
Regulation of the Environment -- The Partnerships' operations are subject to numerous laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection. Compliance with such laws and regulations, together with any penalties resulting from noncompliance may increase the cost of the Partnerships' operations or may affect the Partnerships' ability to timely complete existing or future activities. Management anticipates that various local, state, and federal environmental control agencies will have an increasing impact on oil and gas operations.
Insurance Coverage
The Partnerships are subject to all of the risks inherent in the exploration for and production of oil and gas, including blowouts, pollution, fires, and other casualties. The Partnerships maintain insurance coverage as is customary for entities of a similar size engaged in operations similar to that of the Partnerships, but losses can occur from uninsurable risks or in amounts in excess of existing insurance coverage. The occurrence of an event which is not fully covered by insurance could have a material adverse effect on the Partnerships' financial condition and results of operations.
ITEM 2.
ITEM 2. PROPERTIES
Well Statistics
The following table sets forth the number of productive wells of the Partnerships as of December 31, 2000.
Well Statistics(1) As of December 31, 2000
P/ship Number of Gross Wells(2) Number of Net Wells(3) - ------ ------------------------- -------------------------- Total Oil Gas Total Oil Gas ----- ----- ----- ----- ----- -----
I-D 508 402 106 3.34 .68 2.66 I-E 785 640 145 28.80 13.51 15.29 I-F 777 640 137 12.58 5.61 6.97
- ----------
(1) The designation of a well as an oil well or gas well is made by the General Partner based on the relative amount of oil and gas reserves for the well. Regardless of a well's oil or gas designation, it may produce oil, gas, or both oil and gas. (2) As used in this Annual Report, "gross well" refers to a well in which a working interest is owned, accordingly, the number of gross wells is the total number of wells in which a working interest is owned. (3) As used in this Annual Report, "net well" refers to the sum of the fractional working interests owned in gross wells. For example, a 15% working interest in a well represents one gross well, but 0.15 net well.
Drilling Activities
During the year ended December 31, 2000, the Partnerships indirectly participated in the drilling of the following wells. The Partnerships do not own working interests in any of the wells; therefore, they did not incur any costs associated with the drilling activity:
Revenue P/ship Well Name County St. Interest Type Status - ------ ------------ ------ --- -------- ---- ---------
I-D Hutton No. 1 Colusa CA .00005 Gas Producing I-E Hutton No. 1 Colusa CA .00020 Gas Producing I-F Hutton No. 1 Colusa CA .00009 Gas Producing
Oil and Gas Production, Revenue, and Price History
The following tables set forth certain historical information concerning the oil (including condensates) and gas production, net of all royalties, overriding royalties, and other third party interests, of the Partnerships, revenues attributable to such production, and certain price and cost information. As used in the following tables, direct operating expenses include lease operating expenses and production taxes. In addition, gas production is converted to oil equivalents at the rate of six Mcf per barrel, representing the estimated relative energy content of gas and oil, which rate is not necessarily indicative of the relationship of oil and gas prices. The respective prices of oil and gas are affected by market and other factors in addition to relative energy content.
Net Production Data
I-D Partnership ---------------
Year Ended December 31, ----------------------------------------- 2000 1999 1998 ---------- ---------- ---------- Production: Oil (Bbls) 5,645 8,482 11,249 Gas (Mcf) 296,803 314,010 456,195
Oil and gas sales: Oil $ 176,543 $ 118,848 $ 141,203 Gas 1,101,105 652,470 920,032 --------- -------- --------- Total $1,277,648 $ 771,318 $1,061,235 ========= ======== ========= Total direct operating expenses $ 218,795 $ 159,552 $ 234,481 ========= ======== =========
Direct operating expenses as a percentage of oil and gas sales 17.1% 20.7% 22.1%
Average sales price: Per barrel of oil $31.27 $14.01 $12.55 Per Mcf of gas 3.71 2.08 2.02
Direct operating expenses per equivalent Bbl of oil $ 3.97 $ 2.62 $ 2.69
Net Production Data
I-E Partnership ---------------
Year Ended December 31, -------------------------------------- 2000 1999 1998 ---------- ---------- ---------- Production: Oil (Bbls) 52,169 58,465 64,346 Gas (Mcf) 1,490,003 1,540,061 2,016,034
Oil and gas sales: Oil $1,472,580 $ 972,427 $ 770,895 Gas 5,346,770 3,189,103 3,840,340 --------- --------- --------- Total $6,819,350 $4,161,530 $4,611,235 ========= ========= ========= Total direct operating expenses $1,442,518 $1,153,937 $1,506,844 ========= ========= =========
Direct operating expenses as a percentage of oil and gas sales 21.2% 27.7% 32.7%
Average sales price: Per barrel of oil $28.23 $16.63 $11.98 Per Mcf of gas 3.59 2.07 1.90
Direct operating expenses per equivalent Bbl of oil $ 4.80 $ 3.66 $ 3.76
Net Production Data
I-F Partnership ---------------
Year Ended December 31, ------------------------------------------ 2000 1999 1998 ---------- ---------- ---------- Production: Oil (Bbls) 25,105 27,794 30,203 Gas (Mcf) 347,462 381,318 530,040
Oil and gas sales: Oil $ 712,647 $ 463,545 $ 365,340 Gas 1,310,279 828,532 1,077,378 --------- --------- --------- Total $2,022,926 $1,292,077 $1,442,718 ========= ========= ========= Total direct operating expenses $ 529,553 $ 425,046 $ 668,016 ========= ========= =========
Direct operating expenses as a percentage of oil and gas sales 26.2% 32.9% 46.3%
Average sales price: Per barrel of oil $28.39 $16.68 $12.10 Per Mcf of gas 3.77 2.17 2.03
Direct operating expenses per equivalent Bbl of oil $ 6.38 $ 4.65 $ 5.64
Proved Reserves and Net Present Value
The following table sets forth each Partnership's estimated proved oil and gas reserves and net present value therefrom as of December 31, 2000. The schedule of quantities of proved oil and gas reserves was prepared by the General Partner in accordance with the rules prescribed by the Securities and Exchange Commission (the "SEC"). Certain reserve information was reviewed by Ryder Scott Company, L.P. ("Ryder Scott"), an independent petroleum engineering firm. As used throughout this Annual Report, "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.
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. Net present value attributable to the Partnerships' proved reserves was calculated on the basis of current costs and prices at December 31, 2000. Such prices were not escalated except in certain circumstances where escalations were fixed and readily determinable in accordance with applicable contract provisions. The oil and gas prices at December 31, 2000 have caused the estimates of remaining economically recoverable reserves, as well as the value placed on said reserves, to be substantially higher than in the past several years. Any decrease in these prices would result in a corresponding reduction in the estimate of remaining reserves. 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 December 31, 2000. There can be no assurance that the prices used in calculating the net present value of the Partnerships' proved reserves at December 31, 2000 will actually be realized for such production. The General Partner believes that it is unlikely that prices will remain at their current high levels.
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 near 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.
Proved Reserves and Net Present Values From Proved Reserves As of December 31, 2000(1)
I-D Partnership: - --------------- Estimated proved reserves: Gas (Mcf) 1,444,258 Oil and liquids (Bbls) 57,844
Net present value (discounted at 10% per annum) $ 5,348,101
I-E Partnership: - --------------- Estimated proved reserves: Gas (Mcf) 7,542,594 Oil and liquids (Bbls) 439,075
Net present value (discounted at 10% per annum) $28,865,307
I-F Partnership: - --------------- Estimated proved reserves: Gas (Mcf) 2,598,127 Oil and liquids (Bbls) 210,878
Net present value (discounted at 10% per annum) $ 9,686,392 - ----------
(1) Includes certain gas balancing adjustments which cause the gas volumes and net present values to differ from the reserve reports prepared by the General Partner and reviewed by Ryder Scott.
No estimates of the proved reserves of the Partnerships comparable to those included herein have been included in reports to any federal agency other than the SEC. Additional information relating to the Partnerships' proved reserves is contained in Note 4 to the Partnerships' financial statements, included in Item 8 of this Annual Report.
Significant Properties
The following table sets forth the number and percent of each Partnership's total wells which are operated by affiliates of the Partnerships as of December 31, 2000:
Operated Wells ------------------------------------------- Partnership Number Percent ----------- ------ -------
I-D 22 4% I-E 33 4% I-F 33 4%
The following table sets forth certain well and reserves information as of December 31, 2000 for the basins in which the Partnerships own a significant amount of properties. The table contains the following information for each significant basin: (i) the number of gross and net wells, (ii) the number of wells in which only a non-working interest is owned, (iii) the Partnership's total number of wells, (iv) the number and percentage of wells operated by the Partnership's affiliates, (v) estimated proved oil reserves, (vi) estimated proved gas reserves, and (vii) the present value (discounted at 10% per annum) of estimated future net cash flow.
The Anadarko Basin is located in western Oklahoma and the Texas Panhandle. The Permian Basin straddles west Texas and southeast New Mexico.
- --------------------- (1) Wells in which only a non-working (e.g. royalty) interest is owned. (2) Percent of the Partnership's total wells in the basin which are operated by affiliates of the Partnerships.
Title to Oil and Gas Properties
Management believes that the Partnerships have satisfactory title to their oil and gas properties. Record title to all of the Partnerships' properties is held by either the Partnerships or Geodyne Nominee Corporation, an affiliate of the General Partner.
Title to the Partnerships' properties is subject to customary royalty, overriding royalty, carried, working, and other similar interests and contractual arrangements customary in the oil and gas industry, to liens for current taxes not yet due, and to other encumbrances. Management believes that such burdens do not materially detract from the value of such properties or from the Partnerships' interest therein or materially interfere with their use in the operation of the Partnerships' business.
ITEM 3.
ITEM 3. LEGAL PROCEEDINGS
To the knowledge of the General Partner, neither the General Partner nor the Partnerships or their properties are subject to any litigation, the results of which would have a material effect on the Partnerships' or the General Partner's financial condition or operations.
ITEM 4.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF LIMITED PARTNERS
There were no matters submitted to a vote of the Limited Partners of any Partnership during 2000.
PART II.
ITEM 5.
ITEM 5. MARKET FOR UNITS AND RELATED LIMITED PARTNER MATTERS
As of February 1, 2001, the number of Units outstanding and the approximate number of Limited Partners of record in the Partnerships were as follows:
Number of Number of Limited Partnership Units Partners ----------- --------- ------------ I-D 7,195 690 I-E 41,839 2,536 I-F 14,321 794
Units were initially sold for a price of $1,000. The Units are not traded on any exchange and there is no public trading market for them. The General Partner is aware of certain transfers of Units between unrelated parties, some of which are
facilitated by secondary trading firms and matching services. In addition, as further described below, the General Partner is aware of certain "4.9% tender offers" which have been made for the Units. The General Partner believes that the transfers between unrelated parties have been limited and sporadic in number and volume. Other than trades facilitated by certain secondary trading firms and matching services, no organized trading market for Units exists and none is expected to develop. Due to the nature of these transactions, the General Partner has no verifiable information regarding prices at which Units have been transferred. Further, a transferee may not become a substitute Limited Partner without the consent of the General Partner.
Pursuant to the terms of the Partnership Agreements, the General Partner is obligated to annually issue a repurchase offer which is based on the estimated future net revenues from the Partnerships' reserves and is calculated pursuant to the terms of the Partnership Agreements. Such repurchase offer is recalculated monthly in order to reflect cash distributions to the Limited Partners and extraordinary events. The following table sets forth the General Partner's repurchase offer per Unit as of the periods indicated. For purpose of this Annual Report, a Unit represents an initial subscription of $1,000 to a Partnership.
Repurchase Offer Prices -----------------------
1999 2000 2001 -------------------------- --------------------------- ---- 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st P/ship Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. - ------ ---- ---- ---- ---- ---- ---- ---- ---- ---- I-D $104 $ 93 $160 $140 $119 $108 $207 $175 $147 I-E 137 135 151 137 119 104 192 166 138 I-F 135 135 131 122 108 95 198 179 153
The Partnership Agreements also provide for a right of presentment ("Right of Presentment") whereby the General Partner is required, upon request, to purchase up to 10% of a Partnership's outstanding Units at a price calculated pursuant to the terms of the Partnership Agreements and based on the liquidation value of the limited partnership interest, with a reduction for 70% of cash distributions that have been received prior to the transfer of the partnership interest. The following table sets forth the Right of Presentment price per Unit as of the periods indicated.
Right of Presentment Prices ---------------------------
1999 2000 2001 -------------------------- -------------------------- ---- 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st P/ship Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. - ------ ---- ---- ---- ---- ---- ---- ---- ---- ---- I-D $145 $137 $170 $156 $141 $134 $215 $193 $173 I-E 156 155 156 146 134 123 199 181 161 I-F 153 153 134 128 119 109 203 190 171
In addition to the repurchase offer and Right of Presentment described above, some of the Partnerships have been subject to "4.9% tender offers" from several third parties. The General Partner does not know the terms of these offers or the prices received by the Limited Partners who accepted these offers.
Cash Distributions
Cash distributions are primarily dependent upon a Partnership's cash receipts from the sale of oil and gas production and cash requirements of the Partnership. Distributable cash is determined by the General Partner at the end of each calendar quarter and distributed to the Limited Partners within 45 days after the end of the quarter. Distributions are restricted to cash on hand less amounts required to be retained out of such cash as determined in the sole judgment of the General Partner to pay costs, expenses, or other Partnership obligations whether accrued or anticipated to accrue. In certain instances, the General Partner may not distribute the full amount of cash receipts which might otherwise be available for distribution in an effort to equalize or stabilize the amounts of quarterly distributions. Any available amounts not distributed are invested and the interest or income thereon is for the accounts of the Limited Partners.
The following is a summary of cash distributions paid to the Limited Partners during 1999 and 2000 and the first quarter of 2001:
Cash Distributions ------------------
-------------------------------------------- 1st 2nd 3rd 4th P/ship Qtr. Qtr. Qtr. Qtr. ------ -------- -------- -------- --------
I-D $18.07 $11.12 $13.34 $20.01 I-E - 1.51 26.55 13.65 I-F - - 18.78 8.80
2000 2001 -------------------------------------------- -------- 1st 2nd 3rd 4th 1st P/ship Qtr. Qtr. Qtr. Qtr. Qtr. ------ -------- -------- -------- -------- --------
I-D $21.13 $10.84 $27.80 $31.55 $28.63 I-E 17.73 15.20 18.55 26.48 28.06 I-F 13.62 13.06 13.48 18.64 26.53
ITEM 6.
ITEM 6. SELECTED FINANCIAL DATA
The following tables present selected financial data for the Partnerships. This data should be read in conjunction with the financial statements of the Partnerships, and the respective notes thereto, included elsewhere in this Annual Report. See "Item 8. Financial Statements and Supplementary Data."
ITEM 7.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Use of Forward-Looking Statements and Estimates
This Annual 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 Annual 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, or otherwise indicated.
General Discussion
The following general discussion should be read in conjunction with the analysis of results of operations provided below. As discussed in the "Results of Operations" section below, volumes of oil and gas sold also significantly affect the Partnerships' revenues. Oil and gas wells generally produce the most oil or gas in the earlier years of their lives and, as production continues, the rate of production naturally declines. At some point, production physically ceases or becomes no longer economic. The Partnerships are not acquiring additional oil and gas properties, and the existing properties are not experiencing significant additional production through drilling or other capital projects. Therefore, volumes of oil and gas produced naturally decline from year to year. While it is difficult for management to predict future production from these properties, it is likely that this general trend of declining production will continue.
Despite this general trend of declining production, several factors can cause the volumes of oil and gas sold to increase or decrease at an even greater rate over a given period. These factors include, but are not limited to, (i) geophysical conditions which cause an acceleration of the decline in production, (ii) the shutting in of wells (or the opening of previously shut-in wells) due to low oil and gas prices, mechanical difficulties, loss of a market or transportation, or performance of workovers, recompletions, or other operations in the well, (iii) prior period volume adjustments (either positive or negative) made by purchasers of the production, (iv) ownership adjustments in accordance with agreements governing the operation or ownership of the well (such as adjustments that occur at payout), and (v) completion of enhanced recovery projects which increase production for the well. Many of these factors are very significant as related to a single well or as related to many wells over a short period of time. However, due to the large number of wells owned by the Partnerships, these factors are generally not material as compared to the normal decline in production experienced on all remaining wells.
Results of Operations
An analysis of the change in net oil and gas operations (oil and gas sales, less lease operating expenses and production taxes) is presented in the tables following "Results of Operations" under the heading "Average Sales Prices, Production Volumes, and Average Production Costs." Following is a discussion of each Partnership's results of operations for the year ended December 31, 2000 as compared to the year ended December 31, 1999 and for the year ended December 31, 1999 as compared to the year ended December 31, 1998.
I-D Partnership ---------------
Year Ended December 31, 2000 Compared to Year Ended December 31, 1999 -------------------------------------
Total oil and gas sales increased $506,330 (65.6%) in 2000 as compared to 1999. Of this increase, approximately $97,000 and $484,000, respectively, were related to increases in the average prices of oil and gas sold. Volumes of oil and gas sold decreased 2,837 barrels and 17,207 Mcf, respectively, in 2000 as compared to 1999. The decrease in volumes of oil sold was primarily due to (i) normal declines in production and (ii) a positive prior period volume adjustment on one significant well during 1999. Average oil and gas prices increased to $31.27 per barrel and $3.71 per Mcf, respectively, in 2000 from $14.01 per barrel and $2.08 per Mcf, respectively, in 1999.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $59,243 (37.1%) in 2000 as compared to 1999. This increase was primarily due to (i) workover expenses incurred on one significant well during 2000 in order to improve the recovery of reserves, (ii) an increase in production taxes associated with the increase in oil and gas sales, and (iii) a negative prior period lease operating expense adjustment made by the operator on one significant well during 1999. As a percentage of oil and gas sales, these expenses decreased to 17.1% in 2000 from 20.7% in 1999. 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 $23,739 (27.8%) in 2000 as compared to 1999. This decrease was primarily due to (i) one significant well being fully depleted in 1999 due to a lack of remaining economically recoverable reserves and (ii) the decreases in volumes of oil and gas sold. As a percentage of oil and gas sales, this expense decreased to 4.8% in 2000 from 11.1% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold.
General and administrative expenses increased $1,925 (2.1%) in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 7.2% in 2000 from 11.7% in 1999. This percentage decrease was primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through December 31, 2000 totaling $15,115,175 or 210.09% of the Limited Partners' capital contributions.
Year Ended December 31, 1999 Compared to Year Ended December 31, 1998 -------------------------------------
Total oil and gas sales decreased $289,917 (27.3%) in 1999 as compared to 1998. Of this decrease, approximately $35,000 and $287,000, respectively, were related to decreases in volumes of oil and gas sold. Volumes of oil and gas sold decreased 2,767 barrels and 142,185 Mcf, respectively, in 1999 as compared to 1998. The decrease in volumes of oil sold was primarily due to production difficulties on one significant well during 1999. The decrease in volumes of gas sold was primarily due to (i) production difficulties on one significant well during 1999, (ii) positive prior period volume adjustments made by the operators on two significant wells during 1998, and (iii) normal declines in production. Average oil and gas prices increased to $14.01 per barrel and $2.08 per Mcf, respectively, in 1999 from $12.55 per barrel and $2.02 per Mcf, respectively, in 1998.
The I-D Partnership sold certain oil and gas properties during 1999 and recognized a $494 gain on such sales. Sales of oil and gas properties during 1998 resulted in the I-D Partnership recognizing similar gains totaling $260,624.
Oil and gas production expenses (including lease operating expenses and production taxes) decreased $74,929 (32.0%) in 1999 as compared to 1998. This decrease was primarily due to (i) a decrease in production taxes associated with the decrease in oil and gas sales, (ii) a decrease in lease operating expenses associated with the decreases in volumes of oil and gas sold, and (iii) a negative prior period lease operating expense adjustment made by the operator on one significant well during 1999. As a percentage of oil and gas sales, these expenses decreased to 20.7% in 1999 from 22.1% in 1998.
Depreciation, depletion, and amortization of oil and gas properties decreased $12,444 (12.7%) in 1999 as compared to 1998. This decrease was primarily due to (i) the decreases in volumes of oil and gas sold and (ii) upward revisions in the estimates of remaining oil and gas reserves at December 31, 1999. These decreases were partially offset by one significant well being fully depleted in 1999 due to the lack of remaining economically recoverable reserves. As a percentage of oil and gas sales, this expense increased to 11.1% in 1999 from 9.2% in 1998. This percentage increase was primarily due to the depreciation, depletion, and amortization expense on the well fully depleted in 1999.
General and administrative expenses remained relatively constant in 1999 as compared to 1998. As a percentage of oil and gas sales, these expenses increased to 11.7% in 1999 from 8.5% in 1998. This percentage increase was primarily due to the decrease in oil and gas sales.
I-E Partnership ---------------
Year Ended December 31, 2000 Compared to Year Ended December 31, 1999 -------------------------------------
Total oil and gas sales increased $2,657,820 (63.9%) in 2000 as compared to 1999. Of this increase, approximately $605,000 and $2,261,000, respectively, were related to increases in the average prices of oil and gas sold. Volumes of oil and gas sold decreased 6,296 barrels and 50,058 Mcf, respectively, in 2000 as compared to 1999. The decrease in volumes of oil sold was primarily due to normal declines in production. Average oil and gas prices increased to $28.23 per barrel and $3.59 per Mcf, respectively, in 2000 from $16.63 per barrel and $2.07 per Mcf, respectively, in 1999.
As discussed in "Liquidity and Capital Resources" below, the I-E Partnership recognized an insurance settlement in the amount of $675,000 during 1999. No similar settlements occurred during 2000.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $288,581 (25.0%) in 2000 as compared to 1999. This increase was primarily due to (i) an increase in production taxes associated with the increase in oil and gas sales, (ii) workover expenses incurred on several wells during 2000 in order to improve the recovery of reserves, and (iii) an increase in legal expenses incurred on one significant well during 2000. As a percentage of oil and gas sales, these expenses decreased to 21.2% in 2000 from 27.7% in 1999. 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 $150,809 (23.1%) in 2000 as compared to 1999. This decrease was primarily due to (i) several wells being fully depleted in 1999 due to a lack of remaining economically recoverable reserves, (ii) upward revisions in the estimates of remaining gas reserves at December 31, 2000, and (iii) the decreases in volumes of oil and gas sold. As a percentage of oil and gas sales, this expense decreased to 7.4% in 2000 from 15.7% in 1999. 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 in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 7.6% in 2000 from 12.5% in 1999. This percentage decrease was primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through December 31, 2000 totaling $58,675,552 or 140.24% of the Limited Partners' capital contributions.
Year Ended December 31, 1999 Compared to Year Ended December 31, 1998 -------------------------------------
Total oil and gas sales decreased $449,705 (9.8%) in 1999 as compared to 1998. Of this decrease, approximately $70,000 and $907,000, respectively, were related to decreases in volumes of oil and gas sold. These decreases were partially offset by increases of approximately $272,000 and $255,000, respectively, related to increases in the average prices of oil and gas sold. Volumes of oil and gas sold decreased 5,881 barrels and 475,973 Mcf, respectively, in 1999 as compared to 1998. The decrease in volumes of gas sold was primarily due to (i) positive prior
period volume adjustments made by the purchasers on several wells during 1998 and (ii) normal declines in production. Average oil and gas prices increased to $16.63 per barrel and $2.07 per Mcf, respectively, in 1999 from $11.98 per barrel and $1.90 per Mcf, respectively, in 1998.
The I-E Partnership sold certain oil and gas properties during 1999 and recognized a $1,587 gain on such sales. Sales of oil and gas properties during 1998 resulted in the I-E Partnership recognizing similar gains totaling $1,154,155.
As discussed in "Liquidity and Capital Resources" below, the I-E Partnership recognized an insurance settlement in the amount of $675,000 during 1999. No similar settlements occurred during 1998.
Oil and gas production expenses (including lease operating expenses and production taxes) decreased $352,907 (23.4%) in 1999 as compared to 1998. This decrease was primarily due to (i) a decrease in lease operating expenses associated with the decreases in volumes of oil and gas sold, (ii) a decrease in production taxes associated with the decrease in oil and gas sales, and (iii) workover expenses incurred on one significant well during 1998 in order to improve the recovery of reserves. As a percentage of oil and gas sales, these expenses decreased to 27.7% in 1999 from 32.7% in 1998. 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 $104,218 (13.8%) in 1999 as compared to 1998. This decrease was primarily due to the decreases in volumes of oil and gas sold, which decrease was partially offset by several wells being fully depleted in 1999 due to a lack of remaining economically recoverable reserves. As a percentage of oil and gas sales, this expense decreased to 15.7% in 1999 from 16.4% in 1998.
The I-E Partnership recognized a non-cash charge against earnings of $547,048 in the fourth quarter of 1998. This charge was necessary due to the unamortized costs of one field exceeding the expected future cash flows from that field. No similar charge was necessary in 1999.
General and administrative expenses remained relatively constant in 1999 as compared to 1998. As a percentage of oil and gas sales, these expenses increased to 12.5% in 1999 from 11.2% in 1998. This percentage increase was primarily due to the decrease in oil and gas sales.
I-F Partnership ---------------
Year Ended December 31, 2000 Compared to Year Ended December 31, 1999 -------------------------------------
Total oil and gas sales increased $730,849 (56.6%) in 2000 as compared to 1999. Of this increase, approximately $294,000 and $555,000, respectively, were related to increases in the average prices of oil and gas sold. These increases were partially offset by a decrease of approximately $74,000 related to a decrease in volumes of gas sold. Volumes of oil and gas sold decreased 2,689 barrels and 33,856 Mcf, respectively, in 2000 as compared to 1999. The decrease in volumes of oil sold was primarily due to normal declines in production. Average oil and gas prices increased to $28.39 per barrel and $3.77 per Mcf, respectively, in 2000 from $16.68 per barrel and $2.17 per Mcf, respectively, in 1999.
As discussed in "Liquidity and Capital Resources" below, the I-F Partnership recognized an insurance settlement in the amount of $472,500 during 1999. No similar settlements occurred during 2000.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $104,507 (24.6%) in 2000 as compared to 1999. This increase was primarily due to (i) an increase in production taxes associated with the increase in oil and gas sales, (ii) workover expenses incurred on several wells during 2000 in order to improve the recovery of reserves, and (iii) an increase in legal expenses incurred on one significant well during 2000. As a percentage of oil and gas sales, these expenses decreased to 26.2% in 2000 from 32.9% in 1999. 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 $68,736 (31.0%) in 2000 as compared to 1999. This decrease was primarily due to (i) several wells being fully depleted in 1999 due to a lack of remaining economically recoverable reserves and (ii) the decreases in volumes of oil and gas sold. As a percentage of oil and gas sales, this expense decreased to 7.6% in 2000 from 17.2% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold
General and administrative expenses increased $1,738 (1.0%) in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 8.9% in 2000 from 13.8% in 1999. This percentage decrease was primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through December 31, 2000 totaling $19,223,664 or 134.24% of the Limited Partners' capital contributions.
Year Ended December 31, 1999 Compared to Year Ended December 31, 1998 -------------------------------------
Total oil and gas sales decreased $150,641 (10.4%) in 1999 as compared to 1998. Of this decrease, approximately $29,000 and $302,000, respectively, were related to decreases in volumes of oil and gas sold. These decreases were partially offset by increases of approximately $127,000 and $53,000, respectively, related to increases in the average prices of oil and gas sold. Volumes of oil and gas sold decreased 2,409 barrels and 148,722 Mcf, respectively, in 1999 as compared to 1998. The decrease in volumes of gas sold was primarily due to (i) positive prior period volume adjustments made by the purchasers on several wells during 1998 and (ii) normal declines in production. Average oil and gas prices increased to $16.68 per barrel and $2.17 per Mcf, respectively, in 1999 from $12.10 per barrel and $2.03 per Mcf, respectively, in 1998.
The I-F Partnership sold certain oil and gas properties during 1999 and recognized a $546 gain on such sales. Sales of oil and gas properties during 1998 resulted in the I-F Partnership recognizing similar gains totaling $380,920.
As discussed in "Liquidity and Capital Resources" below, the I-F Partnership recognized an insurance settlement in the amount of $472,500 during 1999. No similar settlements occurred during 1998.
Oil and gas production expenses (including lease operating expenses and production taxes) decreased $242,970 (36.4%) in 1999 as compared to 1998. This decrease was primarily due to (i) a decrease in lease operating expenses associated with the decreases in volumes of oil and gas sold,(ii) a decrease in production taxes associated with the decrease in oil and gas sales, and (iii) workover expenses incurred on several wells during 1998 in order to improve the recovery of reserves. As a percentage of oil and gas sales, these expenses decreased to 32.9% in 1999 from 46.3% in 1998. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold and the 1998 workover expenses.
Depreciation, depletion, and amortization of oil and gas properties decreased $32,683 (12.8%) in 1999 as compared to 1998. This decrease was primarily due to the decreases in volumes of oil and gas sold, which decrease was partially offset by several wells being fully depleted in 1999 due to a lack of remaining
economically recoverable reserves. As a percentage of oil and gas sales, this expense decreased to 17.2% in 1999 from 17.7% in 1998.
The I-F Partnership recognized a non-cash charge against earnings of $382,925 in the fourth quarter of 1998. This charge was necessary due to the unamortized costs of one field exceeding the expected future cash flows from that field. No similar charge was necessary in 1999.
General and administrative expenses remained relatively constant in 1999 as compared to 1998. As a percentage of oil and gas sales, these expenses increased to 13.8% in 1999 from 12.3% in 1998. This percentage increase was primarily due to the decrease in oil and gas sales.
Average Sales Prices, Production Volumes and Average Production Costs
The following tables are comparisons of the annual average oil and gas sales prices, production volumes, and average production costs (lease operating expenses and production taxes) per equivalent unit (one barrel of oil or six Mcf of gas) for 2000, 1999, and 1998.
2000 Compared to 1999 ---------------------
Average Sales Prices - --------------------------------------------------------------------------- P/ship 2000 1999 % Change - ------ ------------------ ------------------ -------------- Oil Gas Oil Gas ($/Bbl) ($/Mcf) ($/Bbl) ($/Mcf) Oil Gas ------- ------- ------- ------- ----- -----
I-D $31.27 $3.71 $14.01 $2.08 123% 78% I-E 28.23 3.59 16.63 2.07 70% 73% I-F 28.39 3.77 16.68 2.17 70% 74%
Production Volumes - ---------------------------------------------------------------------------- P/ship 2000 1999 % Change - -------- -------------------- --------------------- --------------- Oil Gas Oil Gas Oil Gas (Bbls) (Mcf) (Bbls) (Mcf) (Bbls) (Mcf) ------ --------- ------ --------- ------ -----
I-D 5,645 296,803 8,482 314,010 (33%) (5%) I-E 52,169 1,490,003 58,465 1,540,061 (11%) (3%) I-F 25,105 347,462 27,794 381,318 (10%) (9%)
Average Production Costs per Equivalent Barrel of Oil -------------------------------------- P/ship 2000 1999 % Change ------ ----- ----- --------
I-D $3.97 $2.62 52% I-E 4.80 3.66 31% I-F 6.38 4.65 37%
1999 Compared to 1998 ---------------------
Average Sales Prices - --------------------------------------------------------------------------- P/ship 1999 1998 % Change - ------ ------------------ ------------------ ----------- Oil Gas Oil Gas ($/Bbl) ($/Mcf) ($/Bbl) ($/Mcf) Oil Gas ------- ------- ------- ------- --- -----
I-D $14.01 $2.08 $12.55 $2.02 12% 3% I-E 16.63 2.07 11.98 1.90 39% 9% I-F 16.68 2.17 12.10 2.03 38% 7%
Production Volumes - ---------------------------------------------------------------------------- P/ship 1999 1998 % Change - -------- -------------------- --------------------- --------------- Oil Gas Oil Gas Oil Gas (Bbls) (Mcf) (Bbls) (Mcf) (Bbls) (Mcf) ------ --------- ------ --------- ------ -----
I-D 8,482 314,010 11,249 456,195 (25%) (31%) I-E 58,465 1,540,061 64,346 2,016,034 ( 9%) (24%) I-F 27,794 381,318 30,203 530,040 ( 8%) (28%)
Average Production Costs per Equivalent Barrel of Oil -------------------------------------- P/ship 1999 1998 % Change ------ ----- ----- --------
I-D $2.62 $2.69 ( 3%) I-E 3.66 3.76 ( 3%) I-F 4.65 5.64 (18%)
Liquidity and Capital Resources
Net proceeds from operations less necessary operating capital are distributed to the Limited Partners on a quarterly basis. See "Item 5. Market for Units and Related Limited Partner Matters." The net proceeds from production are not reinvested in
productive assets, except to the extent that producing wells are improved, or where methods are employed to permit more efficient recovery of reserves, thereby resulting in a positive economic impact. Assuming 2000 production levels for future years, the Partnerships' proved reserve quantities at December 31, 2000 would have the following remaining lives:
Partnership Gas-Years Oil-Years ----------- --------- ---------
I-D 4.9 10.2 I-E 5.1 8.4 I-F 7.5 8.4
These life of reserves estimates are based on the current estimates of remaining oil and gas reserves. See "Item 2. Properties" for a discussion of these reserve estimates. Any decrease from the high oil and gas prices at December 31, 2000 may cause a decrease in the estimated life of said reserves.
The Partnerships' available capital from the Limited Partners' subscriptions has been spent on oil and gas properties and there should be no further material capital resource commitments for any of the Partnerships in the future. Occasional expenditures by the Partnerships for new wells or well recompletions or workovers, however, may reduce or eliminate cash available for a particular quarterly cash distribution. The Partnerships have no debt commitments. Cash for operational purposes will be provided by current oil and gas production.
The Partnerships sold certain oil and gas properties during 2000, 1999, and 1998. The sale of the Partnerships' properties was made by the General Partner after giving due consideration to both the offer price and the General Partner's estimate of the property's remaining proved reserves and future operating costs. Net proceeds from the sale of any such properties were included in the calculation of the Partnerships' cash distributions for the quarter immediately following the Partnerships' receipt of the proceeds. The amount of such proceeds from the sale of oil and gas properties during 2000, 1999, and 1998, were as follows:
Partnership 2000 1999 1998 ----------- -------- ------ ----------
I-D $ 738 $ 494 $ 272,824 I-E 119,626 2,695 1,265,357 I-F 84,068 2,732 438,200
The General Partner believes that the sale of these properties will be beneficial to the Partnerships in the long-term since the properties sold generally had a higher ratio of
future operating expenses as compared to reserves than the properties not sold.
In August 1999, the I-E and I-F Partnerships received insurance settlement proceeds in the amounts of $675,000 and $472,500, respectively, for the costs incurred to drill the State Lease 8191 No. 4 well in St. Bernard Parish, Louisiana for the purpose of relieving pressure in another well which suffered a blowout during a workover attempt. This new well was completed as a producing gas well in 1998. The insurance proceeds amounts were included in the Partnerships' August 1999 cash distribution.
There can be no assurance as to the amount of the Partnerships' future cash distributions. The Partnerships' ability to make cash distributions depends primarily upon the level of available cash flow generated by the Partnerships' operating activities, which will be affected (either positively or negatively) by many factors beyond the control of the Partnerships, including the price of and demand for oil and gas and other market and economic conditions. Even if prices and costs remain stable, the amount of cash available for distributions will decline over time (as the volume of production from producing properties declines) since the Partnerships are not replacing production through acquisitions of producing properties and drilling. The Partnerships' quantity of proved reserves has been reduced by the sale of oil and gas properties as described above; therefore, it is possible that the Partnerships' future cash distributions will decline as a result of a reduction of the Partnerships' reserve base.
Pursuant to the terms of 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 the first two year extension period to December 31, 2001.
Inflation and Changing Prices
Prices obtained for oil and gas production depend upon numerous factors, including the extent of domestic and foreign production, foreign imports of oil, market demand, domestic and foreign economic conditions in general, and governmental regulations and tax laws. The general level of inflation in the economy did not have a material effect on the operations of the Partnerships in 2000. Oil and gas prices have fluctuated during recent years and generally have not followed the same pattern as inflation. See "Item 2. Properties - Oil and Gas Production, Revenue, and Price History."
ITEM 7A.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The Partnerships do not hold any market risk sensitive instruments.
ITEM 8.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements and supplementary data are indexed in Item 14 hereof.
ITEM 9.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
PART III.
ITEM 10.
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE GENERAL PARTNER
The Partnerships have no directors or executive officers. The following individuals are directors and executive officers of the General Partner. The business address of such director and executive officers is Two West Second Street, Tulsa, Oklahoma 74103.
Name Age Position with Geodyne ---------------- --- -------------------------------- Dennis R. Neill 48 President and Director
Judy K. Fox 49 Secretary
The director will hold office until the next annual meeting of shareholders of Geodyne or until his successor has been duly elected and qualified. All executive officers serve at the discretion of the Board of Directors.
Dennis R. Neill joined Samson in 1981, was named Senior Vice President and Director of Geodyne on March 3, 1993, and was named President of Geodyne and its subsidiaries on June 30, 1996. Prior to joining Samson, he was associated with a Tulsa law firm, Conner and Winters, where his principal practice was in the securities area. He received a Bachelor of Arts degree in political science from Oklahoma State University and a Juris Doctorate degree from the University of Texas. Mr. Neill also serves as Senior Vice President of Samson Investment Company and as President and Director of Samson Properties Incorporated, Samson Hydrocarbons Company, Dyco Petroleum Corporation, Berry
Gas Company, Circle L Drilling Company, Snyder Exploration Company, and Compression, Inc.
Judy K. Fox joined Samson in 1990 and was named Secretary of Geodyne and its subsidiaries on June 30, 1996. Prior to joining Samson, she served as Gas Contract Manager for Ely Energy Company. Ms. Fox is also Secretary of Berry Gas Company, Circle L Drilling Company, Compression, Inc., Dyco Petroleum Corporation, Samson Hydrocarbons Company, Snyder Exploration Company, and Samson Properties Incorporated.
Section 16(a) Beneficial Ownership Reporting Compliance
To the knowledge of the Partnerships and the General Partner, there were no officers, directors, or ten percent owners who were delinquent filers during 2000 of reports required under Section 16 of the Securities Exchange Act of 1934.
ITEM 11.
ITEM 11. EXECUTIVE COMPENSATION
The General Partner and its affiliates are reimbursed for actual general and administrative costs and operating costs incurred and attributable to the conduct of the business affairs and operations of the Partnerships, computed on a cost basis, determined in accordance with generally accepted accounting principles. Such reimbursed costs and expenses allocated to the Partnerships include office rent, secretarial, employee compensation and benefits, travel and communication costs, fees for professional services, and other items generally classified as general or administrative expense. When actual costs incurred benefit other Partnerships and affiliates, the allocation of costs is based on the relationship of the Partnerships' reserves to the total reserves owned by all Partnerships and affiliates. The amount of general and administrative expense allocated to the General Partner and its affiliates which was charged to each Partnership for 2000, 1999, and 1998, is set forth in the table below. Although the actual costs incurred by the General Partner and its affiliates have fluctuated during the three years presented, the amount charged to the Partnerships have not fluctuated every year due to expense limitations imposed by the Partnership Agreements.
Partnership 2000 1999 1998 ----------- -------- -------- -------- I-D $ 79,944 $ 79,944 $ 79,944 I-E 464,880 464,880 464,880 I-F 159,120 159,120 159,120
None of the officers or directors of the General Partner receive compensation directly from the Partnerships. The Partnerships reimburse the General Partner or its affiliates for that portion of such officers' and directors' salaries and expenses attributable to time devoted by such individuals to the
Partnerships' activities based on the allocation method described above. The following tables indicate the approximate amount of general and administrative expense reimbursement attributable to the salaries of the directors, officers, and employees of the General Partner and its affiliates during 2000, 1999, and 1998:
- ---------- (1) The general and administrative expenses paid by the I-D Partnership and attributable to salary reimbursements do not include any salary or other compensation attributable to Mr. Neill. (2) No officer or director of Geodyne or its affiliates provides full-time services to the I-D Partnership and no individual's salary or other compensation reimbursement from the I-D Partnership equals or exceeds $100,000 per annum.
- ---------- (1) The general and administrative expenses paid by the I-E Partnership and attributable to salary reimbursements do not include any salary or other compensation attributable to Mr. Neill. (2) No officer or director of Geodyne or its affiliates provides full-time services to the I-E Partnership and no individual's salary or other compensation reimbursement from the I-E Partnership equals or exceeds $100,000 per annum.
- ---------- (1) The general and administrative expenses paid by the I-F Partnership and attributable to salary reimbursements do not include any salary or other compensation attributable to Mr. Neill. (2) No officer or director of Geodyne or its affiliates provides full-time services to the I-F Partnership and no individual's salary or other compensation reimbursement from the I-F Partnership equals or exceeds $100,000 per annum.
Affiliates of the Partnerships serve as operator of some of the Partnerships' wells. The General Partner contracts with such affiliates for services as operator of the wells. As operator, such affiliates are compensated at rates provided in the operating agreements in effect and charged to all parties to such agreement. Such compensation may occur both prior and subsequent to the commencement of commercial marketing of production of oil or gas. The dollar amount of such compensation paid by the Partnerships to the affiliates is impossible to quantify as of the date of this Annual Report.
Samson maintains necessary inventories of new and used field equipment. Samson may have provided some of this equipment for wells in which the Partnerships have an interest. This equipment was provided at prices or rates equal to or less than those normally charged in the same or comparable geographic area by unaffiliated persons or companies dealing at arm's length. The operators of these wells billed the Partnerships for a portion of such costs based upon the Partnerships' interest in the well.
ITEM 12.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table provides information as to the beneficial ownership of the Units as of February 1, 2001 by (i) each beneficial owner of more than five percent of the issued and outstanding Units, (ii) the directors and officers of the General Partner, and (iii) the General Partner and its affiliates. The address of each of such persons is Samson Plaza, Two West Second Street, Tulsa, Oklahoma 74103.
Number of Units Beneficially Owned (Percent Beneficial Owner of Outstanding) - ------------------------------------ ------------------
I-D Partnership: - --------------- Samson Resources Company 1,417 (19.7%)
All affiliates, directors, and officers of the General Partner as a group and the General Partner (4 persons) 1,417 (19.7%)
I-E Partnership: - --------------- Samson Resources Company 6,133 (14.7%)
All affiliates, directors, and officers of the General Partner as a group and the General Partner (4 persons) 6,133 (14.7%)
I-F Partnership: - --------------- Samson Resources Company 3,644 (25.4%)
All affiliates, directors, and officers of the General Partner as a group and the General Partner (4 persons) 3,644 (25.4%)
ITEM 13.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The General Partner and certain of its affiliates engage in oil and gas activities independently of the Partnerships which result in conflicts of interest that cannot be totally eliminated. The allocation of acquisition and drilling opportunities and the nature of the compensation arrangements between the Partnerships and the General Partner also create potential conflicts of interest. An affiliate of the Partnerships owns some of the Partnerships' Units and therefore has an identity of interest with other Limited Partners with respect to the operations of the Partnerships.
In order to attempt to assure limited liability for Limited Partners as well as an orderly conduct of business, management of the Partnerships is exercised solely by the General Partner. The Partnership Agreements grant the General Partner broad discretionary authority with respect to the Partnerships' participation in drilling prospects and expenditure and control of funds, including borrowings. These provisions are similar to those contained in prospectuses and partnership agreements for other public oil and gas partnerships. Broad discretion as to general management of the Partnerships involves circumstances where the General Partner has conflicts of interest and where it must allocate costs and expenses, or opportunities, among the Partnerships and other competing interests.
The General Partner does not devote all of its time, efforts, and personnel exclusively to the Partnerships. Furthermore, the Partnerships do not have any employees, but instead rely on the personnel of Samson. The Partnerships thus compete with Samson (including other oil and gas partnerships)
for the time and resources of such personnel. Samson devotes such time and personnel to the management of the Partnerships as are indicated by the circumstances and as are consistent with the General Partner's fiduciary duties.
Affiliates of the Partnerships are solely responsible for the negotiation, administration, and enforcement of oil and gas sales agreements covering the Partnerships' leasehold interests. Because affiliates of the Partnerships who provide services to the Partnerships have fiduciary or other duties to other members of Samson, contract amendments and negotiating positions taken by them in their effort to enforce contracts with purchasers may not necessarily represent the positions that the Partnerships would take if they were to administer their own contracts without involvement with other members of Samson. On the other hand, management believes that the Partnerships' negotiating strength and contractual positions have been enhanced by virtue of their affiliation with Samson.
PART IV.
ITEM 14.
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) Financial Statements, Financial Statement Schedules, and Exhibits.
(1) Financial Statements: The following financial statements for the
Geodyne Energy Income Limited Partnership I-D Geodyne Energy Income Limited Partnership I-E Geodyne Energy Income Limited Partnership I-F
as of December 31, 2000 and 1999 and for each of the three years in the period ended December 31, 2000 are filed as part of this report:
Report of Independent Accountants Combined Balance Sheets Combined Statements of Operations Combined Statements of Changes in Partners' Capital (Deficit) Combined Statements of Cash Flows Notes to Combined Financial Statements
(2) Financial Statement Schedules:
None.
(3) Exhibits:
4.1 Amended and Restated Agreement and Certificate of Limited Partnership dated March 4, 1986 for Geodyne Energy Income Limited Partnership I-D filed as Exhibit 4.1 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.2 Amended and Restated Agreement and Certificate of Limited Partnership dated September 10, 1986 for Geodyne Energy Income Limited Partnership I-E filed as Exhibit 4.2 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.3 Amended and Restated Agreement and Certificate of Limited Partnership dated December 17, 1986 for Geodyne Energy Income
Limited Partnership I-F filed as Exhibit 4.3 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.4 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated February 24, 1993 for Geodyne Energy Income Limited Partnership I-D filed as Exhibit 4.4 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.5 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated February 24, 1993 for Geodyne Energy Income Limited Partnership I-E filed as Exhibit 4.5 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.6 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated February 24, 1993 for Geodyne Energy Income Limited Partnership I-F filed as Exhibit 4.6 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.7 Second Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated August 4, 1993 for Geodyne Energy Income Limited Partnership I-D filed as Exhibit 4.7 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.8 Second Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated August 4, 1993 for Geodyne Energy Income Limited Partnership I-E filed as Exhibit 4.8 to Registrant's Annual Report on Form 10-K for the year ended December 31,
1999,filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.9 Second Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated August 4, 1993 for Geodyne Energy Income Limited Partnership I-F filed as Exhibit 4.9 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.10 Third Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated July 1, 1996 for Geodyne Energy Income Limited Partnership I-D filed as Exhibit 4.10 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.11 Third Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated July 1, 1996 for Geodyne Energy Income Limited Partnership I-E filed as Exhibit 4.11 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.12 Third Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated July 1, 1996 for Geodyne Energy Income Limited Partnership I-F filed as Exhibit 4.12 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.13 Fourth Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated December 23, 1999 for Geodyne Energy Income Limited Partnership I-D filed as Exhibit 4.13 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.14 Fourth Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated December 23, 1999 for Geodyne Energy Income Limited Partnership I-E filed as Exhibit 4.14 to Registrant's Annual
Report on Form 10-K for the year ended December 31,1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.15 Fourth Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated December 23, 1999 for Geodyne Energy Income Limited Partnership I-F filed as Exhibit 4.15 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.1 Amended and Restated Agreement of Partnership dated March 4, 1986 for Geodyne Energy Income Production Partnership I-D filed as Exhibit 10.1 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.2 Amended and Restated Agreement of Partnership dated September 10, 1986 for Geodyne Energy Income Production Partnership I-E filed as Exhibit 10.2 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.3 Amended and Restated Agreement of Partnership dated December 17, 1986 for Geodyne Energy Income Production Partnership I-F filed as Exhibit 10.3 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.4 First Amendment to Amended and Restated Agreement of Partnership dated February 26, 1993 for Geodyne Energy Income Production Partnership I-D filed as Exhibit 10.4 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.5 First Amendment to Amended and Restated Agreement of Partnership dated February 26, 1993 for Geodyne Energy Income Production Partnership I-E filed as Exhibit 10.5 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with
the SEC on February 25, 1999 and is hereby incorporated by reference.
10.6 First Amendment to Amended and Restated Agreement of Partnership dated February 26, 1993 for Geodyne Energy Income Production Partnership I-F filed as Exhibit 10.6 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.7 Second Amendment to Amended and Restated Agreement of Partnership dated July 1, 1996 for Geodyne Energy Income Production Partnership I-D filed as Exhibit 10.7 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.8 Second Amendment to Amended and Restated Agreement of Partnership dated July 1, 1996 for Geodyne Energy Income Production Partnership I-E filed as Exhibit 10.8 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.9 Second Amendment to Amended and Restated Agreement of Partnership dated July 1, 1996 for Geodyne Energy Income Production Partnership I-F filed as Exhibit 10.9 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.10 Third Amendment to Amended and Restated Agreement of Partnership dated December 30, 1999 for Geodyne Energy Income Production Partnership I-D filed as Exhibit 10.10 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.11 Third Amendment to Amended and Restated Agreement of Partnership dated December 30, 1999 for Geodyne Energy Income Production Partnership I-E filed as Exhibit 10.11 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with
the SEC on February 25, 1999 and is hereby incorporated by reference.
10.12 Third Amendment to Amended and Restated Agreement of Partnership dated December 30, 1999 for Geodyne Energy Income Production Partnership I-F filed as Exhibit 10.12 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
* 23.1 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership I-D.
* 23.2 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership I-E.
* 23.3 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership I-F.
All other Exhibits are omitted as inapplicable.
----------------------
*Filed herewith.
(b) Reports on Form 8-K filed during the fourth quarter of 2000:
None.
SIGNATURES
Pursuant to the requirements of Sections 13 or 15(d) 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 organized.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F
By: GEODYNE RESOURCES, INC. General Partner
February 28, 2001
By: /s/ Dennis R. Neill ------------------------------ Dennis R. Neill President
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities on the dates indicated.
By: /s/ Dennis R. Neill President and February 28, 2001 ------------------- Director (Principal Dennis R. Neill Executive Officer)
/s/ Dennis R. Neill (Principal February 28, 2001 ------------------- Financial and Patrick M. Hall Accounting Officer)
/s/ Denis R. Neill Secretary February 28, 2001 ------------------- Judy K. Fox
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PARTNERS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D GEODYNE PRODUCTION PARTNERSHIP I-D
In our opinion, the accompanying combined balance sheets and the related combined statements of operations, changes in partners' capital (deficit) and cash flows present fairly, in all material respects, the combined financial position of the Geodyne Energy Income Limited Partnership I-D, an Oklahoma limited partnership, and Geodyne Production Partnership I-D, an Oklahoma general partnership, at December 31, 2000 and 1999, and the combined results of their operations and their cash flows for each of the three years in the period ended December 31, 2000, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Partnerships' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Tulsa, Oklahoma February 19, 2001
-F1-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D Combined Balance Sheets December 31, 2000 and 1999
ASSETS ------
2000 1999 ----------- ---------- CURRENT ASSETS: Cash and cash equivalents $ 238,748 $183,942 Accounts receivable: Oil and gas sales 238,567 130,579 --------- ------- Total current assets $ 477,315 $314,521
NET OIL AND GAS PROPERTIES, utilizing the successful efforts method 465,035 522,300
DEFERRED CHARGE 121,991 85,847 -------- ------- $1,064,341 $922,668 ========= =======
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) -------------------------------------------
CURRENT LIABILITIES: Accounts payable $ 8,646 $ 16,194 Gas imbalance payable 37,628 36,593 -------- ------- Total current liabilities $ 46,274 $ 52,787
ACCRUED LIABILITY $ 41,157 $ 26,398
PARTNERS' CAPITAL (DEFICIT): General Partner ($ 11,358) ($ 31,152) Limited Partners, issued and outstanding, 7,195 Units 988,268 874,635 -------- ------- Total Partners' capital $ 976,910 $843,483 -------- ------- $1,064,341 $922,668 ======== =======
The accompanying notes are an integral part of these combined financial statements.
-F2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D Combined Statements of Operations For the Years Ended December 31, 2000, 1999, and 1998
2000 1999 1998 ---------- ---------- ---------- REVENUES: Oil and gas sales $1,277,648 $ 771,318 $1,061,235 Interest income 10,265 6,129 11,601 Gain on sale of oil and gas properties - 494 260,624 --------- -------- --------- $1,287,913 $ 777,941 $1,333,460 COSTS AND EXPENSES: Lease operating $ 134,453 $ 107,635 $ 162,006 Production tax 84,342 51,917 72,475 Depreciation, depletion, and amortization of oil and gas properties 61,791 85,530 97,974 General and administrative 92,334 90,409 89,722 --------- -------- --------- $ 372,920 $ 335,491 $ 422,177 --------- -------- --------- NET INCOME $ 914,993 $ 442,450 $ 911,283 ========= ======== =========
GENERAL PARTNER - NET INCOME $ 144,360 $ 77,422 $ 148,669 ========= ======== =========
LIMITED PARTNERS - NET INCOME $ 770,633 $ 365,028 $ 762,614 ========= ======== =========
NET INCOME per Unit $ 107.11 $ 50.73 $ 105.99 ========= ======== =========
UNITS OUTSTANDING 7,195 7,195 7,195 ========= ======== =========
The accompanying notes are an integral part of these combined financial statements.
-F3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D Combined Statements of Changes in Partners' Capital (Deficit) For the Years Ended December 31, 2000, 1999, and 1998
Limited General Partners Partner Total ------------ ---------- ------------
Balance, Dec. 31, 1997 $1,290,993 ($ 27,560) $1,263,433 Net income 762,614 148,669 911,283 Cash distributions ( 1,094,000) ( 174,270) ( 1,268,270) --------- ------- ---------
Balance, Dec. 31, 1998 $ 959,607 ($ 53,161) $ 906,446 Net income 365,028 77,422 442,450 Cash distributions ( 450,000) ( 55,413) ( 505,413) --------- ------- ---------
Balance, Dec. 31, 1999 $ 874,635 ($ 31,152) $ 843,483 Net income 770,633 144,360 914,993 Cash distributions ( 657,000) ( 124,566) ( 781,566) --------- ------- ---------
Balance, Dec. 31, 2000 $ 988,268 ($ 11,358) $ 976,910 ========= ======= =========
The accompanying notes are an integral part of these combined financial statements.
-F4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-D GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-D Combined Statements of Cash Flows For the Years Ended December 31, 2000, 1999, and 1998
2000 1999 1998 ---------- ---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $914,993 $442,450 $ 911,283 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization of oil and gas properties 61,791 85,530 97,974 Gain on sale of oil and gas properties - ( 494) ( 260,624) (Increase) decrease in accounts receivable - oil and gas sales ( 107,988) 3,898 121,524 (Increase) decrease in deferred charge ( 36,144) ( 19,785) 38,731 Increase (decrease) in accounts payable ( 7,548) 6,924 ( 22,040) Increase (decrease) in gas imbalance payable 1,035 ( 6,928) 3,550 Increase in accrued liability 14,759 11,942 111 ------- ------- --------- Net cash provided by operating activities $840,898 $523,537 $ 890,509 ------- ------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ($ 5,264) ($ 2,037) ($ 1,811) Proceeds from sale of oil and gas properties 738 494 272,824 ------- ------- --------- Net cash provided (used) by investing activities ($ 4,526) ($ 1,543) $ 271,013 ------- ------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES: Cash distributions ($781,566) ($505,413) ($1,268,270) ------- ------- --------- Net cash used by financing activities ($781,566) ($505,413) ($1,268,270) ------- ------- ---------
-F5-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 54,806 $ 16,581 ($ 106,748)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 183,942 167,361 274,109 ------- ------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $238,748 $183,942 $ 167,361 ======= ======= =========
The accompanying notes are an integral part of these combined financial statements.
-F6-
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PARTNERS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E GEODYNE PRODUCTION PARTNERSHIP I-E
In our opinion, the accompanying combined balance sheets and the related combined statements of operations, changes in partners' capital (deficit) and cash flows present fairly, in all material respects, the combined financial position of the Geodyne Energy Income Limited Partnership I-E, an Oklahoma limited partnership, and Geodyne Production Partnership I-E, an Oklahoma general partnership, at December 31, 2000 and 1999, and the combined results of their operations and their cash flows for each of the three years in the period ended December 31, 2000, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Partnerships' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Tulsa, Oklahoma February 19, 2001
-F7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E Combined Balance Sheets December 31, 2000 and 1999
ASSETS ------
2000 1999 ----------- ------------
CURRENT ASSETS: Cash and cash equivalents $1,309,542 $ 891,310 Accounts receivable: Oil and gas sales 1,320,349 772,416 --------- --------- Total current assets $2,629,891 $1,663,726
NET OIL AND GAS PROPERTIES, utilizing the successful efforts method 3,140,757 3,573,231
DEFERRED CHARGE 675,247 622,281 --------- --------- $6,445,895 $5,859,238 ========= =========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) -------------------------------------------
CURRENT LIABILITIES: Accounts payable $ 71,113 $ 104,132 Gas imbalance payable 159,002 174,639 --------- --------- Total current liabilities $ 230,115 $ 278,771
ACCRUED LIABILITY $ 243,815 $ 189,964
PARTNERS' CAPITAL (DEFICIT): General Partner ($ 25,660) ($ 106,782) Limited Partners, issued and outstanding, 41,839 Units 5,997,625 5,497,285 --------- --------- Total Partners' capital $5,971,965 $5,390,503 --------- --------- $6,445,895 $5,859,238 ========= =========
The accompanying notes are an integral part of these combined financial statements.
-F8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E Combined Statements of Operations For the Years Ended December 31, 2000, 1999, and 1998
2000 1999 1998 ---------- ---------- ---------
REVENUES: Oil and gas sales $6,819,350 $4,161,530 $4,611,235 Interest income 53,772 18,059 39,917 Gain on sale of oil and gas properties 91,554 1,587 1,154,155 Insurance settlement - 675,000 - --------- --------- --------- $6,964,676 $4,856,176 $5,805,307 COSTS AND EXPENSES: Lease operating $ 993,562 $ 884,151 $1,182,851 Production tax 448,956 269,786 323,993 Depreciation, depletion, and amortization of oil and gas properties 501,958 652,767 756,985 Impairment provision - - 547,048 General and administrative 520,731 520,070 516,682 --------- --------- --------- $2,465,207 $2,326,774 $3,327,559 --------- --------- --------- NET INCOME $4,499,469 $2,529,402 $2,477,748 ========= ========= =========
GENERAL PARTNER - NET INCOME $ 737,129 $ 468,089 $ 548,239 ======== ========= =========
LIMITED PARTNERS - NET INCOME $3,762,340 $2,061,313 $1,929,509 ========= ========= =========
NET INCOME per Unit $ 89.92 $ 49.27 $ 46.12 ========= ========= =========
UNITS OUTSTANDING 41,839 41,839 41,839 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
-F9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E Combined Statements of Changes in Partners' Capital (Deficit) For the Years Ended December 31, 2000, 1999, and 1998
Limited General Partners Partner Total ------------ ---------- ------------
Balance, Dec. 31, 1997 $7,183,463 ($228,434) $6,955,029 Net income 1,929,509 548,239 2,477,748 Cash distributions ( 3,932,000) ( 551,905) ( 4,483,905) --------- ------- ---------
Balance, Dec. 31, 1998 $5,180,972 ($232,100) $4,948,872 Net income 2,061,313 468,089 2,529,402 Cash distributions ( 1,745,000) ( 342,771) ( 2,087,771) --------- ------- ---------
Balance, Dec. 31, 1999 $5,497,285 ($106,782) $5,390,503 Net income 3,762,340 737,129 4,499,469 Cash distributions ( 3,262,000) ( 656,007) ( 3,918,007) --------- ------- ---------
Balance, Dec. 31, 2000 $5,997,625 ($ 25,660) $5,971,965 ========= ======= =========
The accompanying notes are an integral part of these combined financial statements.
-F10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-E GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-E Combined Statements of Cash Flows For the Years Ended December 31, 2000, 1999, and 1998
2000 1999 1998 ---------- ---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $4,499,469 $2,529,402 $2,477,748 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization of oil and gas properties 501,958 652,767 756,985 Impairment provision - - 547,048 Gain on sale of oil and gas properties ( 91,554) ( 1,587) (1,154,155) (Increase) decrease in accounts receivable - oil and gas sales ( 547,933) ( 120,971) 342,909 Decrease in accounts receivable - other - - 69,917 (Increase) decrease in deferred charge ( 52,966) ( 51,736) 179,824 Decrease in accounts payable ( 33,019) ( 105,354)( 48,038) Increase (decrease) in gas imbalance payable ( 15,637) 58,831 ( 20,076) Increase in accrued liability 53,851 38,474 13,134 --------- --------- --------- Net cash provided by operating activities $4,314,169 $2,999,826 $3,165,296 --------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ($ 97,556) ($ 35,443)($ 762,520) Proceeds from sale of oil and gas properties 119,626 2,695 1,265,357 --------- --------- --------- Net cash provided (used) by investing activities $ 22,070 ($ 32,748) $ 502,837 --------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES: Cash distributions ($3,918,007) ($2,087,771)($4,483,905) --------- --------- ---------
-F11-
Net cash used by financing activities ($3,918,007) ($2,087,771)($4,483,905) --------- --------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 418,232 $ 879,307 ($ 815,772)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 891,310 12,003 827,775 --------- --------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $1,309,542 $ 891,310 $ 12,003 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
-F12-
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PARTNERS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F GEODYNE PRODUCTION PARTNERSHIP I-F
In our opinion, the accompanying combined balance sheets and the related combined statements of operations, changes in partners' capital (deficit) and cash flows present fairly, in all material respects, the combined financial position of the Geodyne Energy Income Limited Partnership I-F, an Oklahoma limited partnership, and Geodyne Production Partnership I-F, an Oklahoma general partnership, at December 31, 2000 and 1999, and the combined results of their operations and their cash flows for each of the three years in the period ended December 31, 2000, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Partnerships' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Tulsa, Oklahoma February 19, 2001
-F13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F Combined Balance Sheets December 31, 2000 and 1999
ASSETS ------
2000 1999 ------------ ------------
CURRENT ASSETS: Cash and cash equivalents $ 437,623 $ 254,500 Accounts receivable: Oil and gas sales 359,478 250,188 --------- --------- Total current assets $ 797,101 $ 504,688
NET OIL AND GAS PROPERTIES, utilizing the successful efforts method 1,000,652 1,110,525
DEFERRED CHARGE 464,191 375,691 --------- --------- $2,261,944 $1,990,904 ========= =========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) -------------------------------------------
CURRENT LIABILITIES: Accounts payable $ 32,992 $ 33,956 Gas imbalance payable 67,508 68,901 --------- --------- Total current liabilities $ 100,500 $ 102,857
ACCRUED LIABILITY $ 185,520 $ 122,086
PARTNERS' CAPITAL (DEFICIT): General Partner $ 7,531 ($ 9,232) Limited Partners, issued and outstanding, 14,321 Units 1,968,393 1,775,193 --------- --------- Total Partners' capital $1,975,924 $1,765,961 --------- --------- $2,261,944 $1,990,904 ========= =========
The accompanying notes are an integral part of these combined financial statements.
-F14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F Combined Statements of Operations For the Years Ended December 31, 2000, 1999, and 1998
2000 1999 1998 ---------- ---------- ---------- REVENUES: Oil and gas sales $2,022,926 $1,292,077 $1,442,718 Interest income 16,111 3,902 12,630 Gain on sale of oil and gas properties 64,487 546 380,920 Insurance settlement - 472,500 - --------- --------- --------- $2,103,524 $1,769,025 $1,836,268 COSTS AND EXPENSES: Lease operating $ 401,239 $ 345,710 $ 571,401 Production tax 128,314 79,336 96,615 Depreciation, depletion, and amortization of oil and gas properties 153,255 221,991 254,674 Impairment provision - - 382,925 General and administrative 180,435 178,697 177,383 --------- --------- --------- $ 863,243 $ 825,734 $1,482,998 --------- --------- --------- NET INCOME $1,240,281 $ 943,291 $ 353,270 ========= ========= =========
GENERAL PARTNER - NET INCOME $ 205,081 $ 171,987 $ 140,360 ========= ========= =========
LIMITED PARTNERS - NET INCOME $1,035,200 $ 771,304 $ 212,910 ========= ========= =========
NET INCOME per Unit $ 72.29 $ 53.86 $ 14.87 ========= ========= =========
UNITS OUTSTANDING 14,321 14,321 14,321 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
-F15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F Combined Statements of Changes in Partners' Capital (Deficit) For the Years Ended December 31, 2000, 1999, and 1998
Limited General Partners Partner Total ------------ ---------- ------------
Balance, Dec. 31, 1997 $2,409,979 ($ 59,811) $2,350,168 Net income 212,910 140,360 353,270 Cash distributions ( 1,224,000) ( 175,096) ( 1,399,096) --------- ------- ---------
Balance, Dec. 31, 1998 $1,398,889 ($ 94,547) $1,304,342 Net income 771,304 171,987 943,291 Cash distributions ( 395,000) ( 86,672) ( 481,672) --------- ------- ---------
Balance, Dec. 31, 1999 $1,775,193 ($ 9,232) $1,765,961 Net income 1,035,200 205,081 1,240,281 Cash distributions ( 842,000) ( 188,318) ( 1,030,318) --------- ------- ---------
Balance, Dec. 31, 2000 $1,968,393 $ 7,531 $1,975,924 ========= ======= =========
The accompanying notes are an integral part of these combined financial statements.
-F16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP I-F GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP I-F Combined Statements of Cash Flows For the Years Ended December 31, 2000, 1999, and 1998
2000 1999 1998 ------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $1,240,281 $ 943,291 $353,270 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization of oil and gas properties 153,255 221,991 254,674 Impairment provision - - 382,925 Gain on sale of oil and gas properties ( 64,487) ( 546) (380,920) (Increase) decrease in accounts receivable - oil and gas sales ( 109,290) ( 54,744) 112,290 Decrease in accounts receivable - other - - 48,942 (Increase) decrease in deferred charge ( 88,500) ( 28,987) 154,312 Increase (decrease) in accounts payable ( 964) ( 372,784) 353,535 Increase (decrease) in gas imbalance payable ( 1,393) 30,163 ( 8,308) Increase (decrease) in accrued liability 63,434 12,933 ( 7,248) --------- --------- --------- Net cash provided by operating activities $1,192,336 $ 751,317 $1,263,472 --------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ($ 62,963) ($ 23,334) ($548,339) Proceeds from sale of oil and gas properties 84,068 2,732 438,200 --------- --------- --------- Net cash provided (used) by investing activities $ 21,105 ($ 20,602) ($110,139) --------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES: Cash distributions ($1,030,318) ($ 481,672) ($1,399,096) --------- --------- ---------
-F17-
Net cash used by financing activities ($1,030,318) ($ 481,672) ($1,399,096) --------- -------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 183,123 $ 249,043 ($245,763)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 254,500 5,457 251,220 --------- -------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 437,623 $ 254,500 $ 5,457 ========= ======== =========
The accompanying notes are an integral part of these combined financial statements.
-F18-
GEODYNE ENERGY INCOME PROGRAM I LIMITED PARTNERSHIPS Notes to the Combined Financial Statements For the Years Ended December 31, 2000, 1999, and 1998
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Nature of Operations
The Geodyne Energy Income Limited Partnerships (the "Partnerships") were formed pursuant to a public offering of depositary units ("Units"). Upon formation, investors became limited partners (the "Limited Partners") and held Units issued by each Partnership. Geodyne Resources, Inc. is the general partner of the Partnerships. Each Partnership is a general partner in the related Geodyne Energy Income Production Partnership (collectively, the "Production Partnership") in which Geodyne Resources, Inc. serves as the managing partner. Limited Partner capital contributions were contributed to the related Production Partnerships for investment in producing oil and gas properties. The Partnerships were activated on the following dates with the following Limited Partner capital contributions:
Limited Partner Date of 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
The Partnerships' original termination date under their partnership agreements was December 31, 1999. The General Partner has extended the terms of the Partnerships for a two year period to December 31, 2001 pursuant to its right to extend the term of each Partnership for up to five periods of two years each.
For purposes of these financial statements, the Partnerships and Production Partnerships are collectively referred to as the "Partnerships" and the general partner and managing partner are collectively referred to as the "General Partner."
An affiliate of the General Partner owned the following Units at December 31, 2000:
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Number of Percent of Partnership Units Owned Outstanding Units ----------- ----------- ----------------- I-D 1,417 19.7% I-E 6,133 14.7% I-F 3,644 25.4%
The Partnerships' sole business is the development and production of oil and gas. Substantially all of the Partnerships' gas reserves are being sold regionally on the "spot market." Due to the highly competitive nature of the spot market, prices on the spot market are subject to wide seasonal and regional pricing fluctuations. In addition, such spot market sales are generally short-term in nature and are dependent upon obtaining transportation services provided by pipelines. The Partnerships' oil is sold at or near the Partnerships' wells under short-term purchase contracts at prevailing arrangements which are customary in the oil industry. The prices received for the Partnerships' oil and gas are subject to influences such as global consumption and supply trends.
Allocation of Costs and Revenues
The combination of the allocation provisions in each Partnership's limited partnership agreement and each Production Partnership's partnership agreement (collectively, the "Partnership Agreement") results in allocations of costs and income between the Limited Partners and General Partner as follows:
Before Payout(1) After Payout(1) -------------------- -------------------- General Limited General Limited Partner Partners Partner Partners Costs(2) -------- -------- -------- -------- - ------------------------ Sales commissions, pay- ment for organization and offering costs and management fee 1% 99% - - Property acquisition costs 1% 99% 1% 99% Identified development drilling 1% 99% 1% 99% Development drilling 10% 90% 15% 85% General and administra- tive costs, direct administrative costs and operating costs(3) 10% 90% 15% 85%
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Income(2) - ------------------------ Temporary investments of Limited Partners' capital contributions 1% 99% 1% 99% Income from oil and gas production(3) 10% 90% 15% 85% Sale of producing pro- perties (3) 10% 90% 15% 85% All other income 10% 90% 15% 85%
- ---------- (1) Payout occurs when total distributions to Limited Partners equal total original Limited Partner subscriptions. (2) The allocations in the table result generally from the combined effect of the allocation provisions in the Partnership Agreements. For example, the costs incurred in development drilling are allocated 90.9091% to the limited partnership and 9.0909% to the managing partner. The 90.9091% portion of these costs allocated to the limited partnership, when passed through the limited partnership, is further allocated 99% to the limited partners and 1% to the general partner. In this manner the Limited Partners are allocated 90% of such costs and the General Partner is allocated 10% of such costs. (3) Distributions of cash and the above allocation of income and costs of the General Partner are subject to subordination during the first two twelve-month "allocation periods". The first twelve-month "allocation period" commenced on the last day of the first full fiscal quarter after the earlier of (i) the date on which 90% of a limited partnership's capital contribution to a Production Partnership has been expended or (ii) two years after activation of a Production Partnership. The second twelve-month "allocation period" commenced at the end of the first allocation period. To the extent that the amount of cash distributed in the allocation periods is insufficient to permit the Limited Partners to receive a 15% cumulative (but not compounded) twelve-month return on their capital contributions, up to one-half of the managing partners' share of distributable cash after each such allocation period, and a corresponding amount of their allocable share of income and costs, shall thereafter be allocated to permit the Limited Partners to receive, to the extent available, the aggregate amount of such deficiency. After the allocation periods, the managing partner may recoup amounts previously allocated to the Limited Partners pursuant to this subordination provision to the extent income is otherwise sufficient to permit Limited Partners to receive at least a 15% cumulative (but not compounded) twelve-month return since the commencement of the allocation periods.
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The I-D Partnership achieved payout in late 1991 and the I-E and I-F Partnerships achieved payout during the second quarter of 1995. After payout, operations were allocated using the after payout percentages set forth in the table above.
Basis of Presentation
These financial statements reflect the combined accounts of each Partnership after the elimination of all inter-partnership transactions and balances.
Cash and Cash Equivalents
The Partnerships consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents are not insured, which cause the Partnerships to be subject to risk.
Credit Risk
Accrued oil and gas sales which are due from a variety of oil and gas purchasers subject the Partnerships to a concentration of credit risk. Some of these purchasers are discussed in Note 3 - Major Customers.
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. Leasehold impairment of unproved properties is recognized based upon an individual property assessment and exploratory experience. Upon discovery of commercial reserves, leasehold costs are transferred to producing properties.
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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' depletion, depreciation, and amortization includes dismantlement and abandonment costs, net of estimated salvage value. The depreciation, depletion, and amortization rates per equivalent barrel of oil produced during the years ended December 31, 2000, 1999, and 1998, were as follows:
Partnership 2000 1999 1998 ----------- ------ ------ ------
I-D $1.12 $1.41 $1.12 I-E 1.67 2.07 1.89 I-F 1.85 2.43 2.15
When complete units of depreciable property are retired or sold, the asset cost and related accumulated depreciation are eliminated with any gain or loss reflected in income. When less than complete units of depreciable property are retired or sold, the proceeds are credited to oil and gas properties.
The Partnerships evaluate the recoverability of the carrying costs of their proved oil and gas properties at the field level. If the unamortized costs of oil and gas properties within a field exceed 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. During 1998, the I-E and I-F Partnerships recorded non-cash charges against earnings (impairment provisions) of $547,048 and $382,925, respectively. No other impairment provisions were recorded by the Partnerships during the three years ended December 31, 2000. The risk that the Partnerships will be required to record similar impairment provisions in the future increases as oil and gas prices decrease.
Deferred Charge
The Deferred Charge represents costs deferred for lease operating expenses incurred in connection with the Partnerships' underproduced gas imbalance positions. The rate used in calculating the deferred charge is the average of the annual production costs per Mcf. At December 31, 2000 and 1999, cumulative total gas sales volumes for underproduced wells were less than the Partnerships' pro-rata share of total gas production from these wells by the following amounts:
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2000 1999 ---------------------- ---------------------- Partnership Mcf Amount Mcf Amount ----------- --------- -------- --------- --------
I-D 232,319 $121,991 233,407 $ 85,847 I-E 1,013,580 675,247 1,067,927 622,281 I-F 378,345 464,191 396,006 375,691
Accrued Liability
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 accrued liability is the average of the annual production costs per Mcf. At December 31, 2000 and 1999, cumulative total gas sales volumes for overproduced wells exceeded the Partnerships' pro-rata share of total gas production from these wells by the following amounts:
2000 1999 ---------------------- -------------------- Partnership Mcf Amount Mcf Amount ----------- ------- -------- ------- --------
I-D 78,379 $ 41,157 71,772 $ 26,398 I-E 365,979 243,815 326,006 189,964 I-F 151,210 185,520 128,688 122,086
Oil and Gas Sales and Gas Imbalance Payable
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 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 revenue 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. At December 31, 2000 and 1999 total sales exceeded the Partnerships' share of estimated total gas reserves as follows:
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2000 1999 ------------------- ------------------- Partnership Mcf Amount Mcf Amount ----------- ------- ------- ------- --------
I-D 25,085 $ 37,628 24,395 $ 36,593 I-E 106,001 159,002 116,426 174,639 I-F 45,005 67,508 45,934 68,901
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 a negotiated or contractual payment to the underproduced party.
General and Administrative Overhead
The General Partner and its affiliates are reimbursed for actual general and administrative costs incurred and attributable to the conduct of the business affairs and operations of the Partnerships.
Use of Estimates in Financial Statements
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Further, the deferred charge, the gas imbalance payable, and the accrued liability all involve estimates which could materially differ from the actual amounts ultimately realized or incurred in the near term. Oil and gas reserves (see Note 4) also involve significant estimates which could materially differ from the actual amounts ultimately realized.
Income Taxes
Income or loss for income tax purposes is includable in the income tax returns of the partners. Accordingly, no recognition has been given to income taxes in these financial statements.
2. TRANSACTIONS WITH RELATED PARTIES
The Partnerships reimburse the General Partner for the general and administrative overhead applicable to the
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Partnerships, based on an allocation of actual costs incurred by the General Partner. When actual costs incurred benefit other Partnerships and affiliates, the allocation of costs is based on the relationship of the Partnerships' reserves to the total reserves owned by all Partnerships and affiliates. The General Partner believes this allocation method is reasonable. Although the actual costs incurred by the General Partner and its affiliates have fluctuated during the three years presented, the amounts charged to the Partnerships have not fluctuated every year due to expense limitations imposed by the Partnership Agreements. The following is a summary of payments made to the General Partner or its affiliates by the Partnerships for general and administrative overhead costs for the years ended December 31, 2000, 1999, and 1998:
Partnership 2000 1999 1998 ----------- -------- -------- --------
I-D $ 79,944 $ 79,944 $ 79,944 I-E 464,880 464,880 464,880 I-F 159,120 159,120 159,120
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 these activities, together with any compressor rentals, consulting, or other services provided. Such charges are comparable to third party charges in the area where the wells are located and are the same as charged to other working interest owners in the wells.
3. MAJOR CUSTOMERS
The following table sets forth purchasers who individually accounted for ten percent or more of each Partnership's combined oil and gas sales for the years ended December 31, 2000, 1999, and 1998:
Partnership Purchaser Percentage - ----------- --------------------- -------------------------- 2000 1999 1998 ----- ----- -----
I-D El Paso Energy Marketing Company ("El Paso") 34.1% 48.4% 41.5% Sid Richardson Carbon & Gas ("Richardson") 15.2% - - Hallwood Petroleum 11.0% 11.7% 20.0% Duke Energy Field Services 10.7% - - Conoco, Inc. ("Conoco") - 18.8% -
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I-E El Paso 37.3% 54.6% 55.5% Richardson 16.8% - - Amoco Production Co. 10.0% - -
I-F El Paso 29.5% 30.7% 35.6% Amoco Production Co. 12.5% 11.7% - Conoco - 10.8% -
In the event of interruption of purchases by one or more of these significant customers or the cessation or material change in availability of open-access transportation by the Partnerships' pipeline transporters, the Partnerships may encounter difficulty in marketing their gas and in maintaining historic sales levels. Alternative purchasers or transporters may not be readily available.
4. SUPPLEMENTAL OIL AND GAS INFORMATION
The following supplemental information regarding the oil and gas activities of the Partnerships is presented pursuant to the disclosure requirements promulgated by the SEC.
Capitalized Costs
Capitalized costs and accumulated depreciation, depletion, amortization, and valuation allowance at December 31, 2000 and 1999 were as follows:
I-D Partnership ---------------
2000 1999 ------------ ------------
Proved properties $ 4,611,546 $4,607,189
Less accumulated depreciation, depletion, amorti- zation, and valua- tion allowance ( 4,146,511) ( 4,084,889) ---------- ---------
Net oil and gas properties $ 465,035 $ 522,300 ========== =========
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I-E Partnership ---------------
2000 1999 ------------ ------------
Proved properties $26,510,750 $26,692,096
Less accumulated depreciation, depletion, amorti- zation, and valua- tion allowance ( 23,369,993) ( 23,118,865) ---------- ----------
Net oil and gas properties $ 3,140,757 $ 3,573,231 ========== ==========
I-F Partnership ---------------
2000 1999 ----------- -----------
Proved properties $7,914,602 $8,044,032
Less accumulated depreciation, depletion, amorti- zation, and valua- tion allowance ( 6,913,950) ( 6,933,507) --------- ---------
Net oil and gas properties $1,000,652 $1,110,525 ========= =========
Costs Incurred
The Partnerships incurred no costs in connection with oil and gas acquisition or exploration activities during 2000, 1999, and 1998. Costs incurred by the Partnerships in connection with oil and gas property development activities during 2000, 1999, and 1998 were as follows:
Partnership 2000 1999 1998 ----------- -------- -------- -------- I-D $ 5,264 $ 2,037 $ 1,811 I-E 97,556 35,443 762,520 I-F 62,963 23,334 548,339
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Quantities of Proved Oil and Gas Reserves - Unaudited
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 at December 31, 2000, 1999, and 1998, were estimated by petroleum engineers employed by affiliates of the Partnerships. Certain reserve information was reviewed by Ryder Scott Company, L.P., an independent petroleum engineering firm. The following information includes certain gas balancing adjustments which cause the gas volume to differ from the reserve reports prepared by the General Partner and reviewed by Ryder Scott.
I-D Partnership ---------------
Crude Natural Oil Gas (Barrels) (Mcf) --------- -----------
Proved reserves, Dec. 31, 1997 40,998 1,939,247 Production ( 11,249) ( 456,195) Sales of minerals in place ( 1,568) ( 134,605) Extensions and discoveries 7,889 76,181 Revisions of previous estimates 1,706 210,269 ------- ---------
Proved reserves, Dec. 31, 1998 37,776 1,634,897 Production ( 8,482) ( 314,010) Revisions of previous estimates 80,895 272,928 ------- ---------
Proved reserves, Dec. 31, 1999 110,189 1,593,815 Production ( 5,645) ( 296,803) Revisions of previous estimates ( 46,700) 147,246
------- ---------
Proved reserves, Dec. 31, 2000 57,844 1,444,258 ======= =========
PROVED DEVELOPED RESERVES:
December 31, 1998 37,776 1,634,897 ======= ========= December 31, 1999 110,166 1,593,084 ======= ========= December 31, 2000 57,844 1,444,258 ======= =========
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I-E Partnership ---------------
Crude Natural Oil Gas (Barrels) (Mcf) --------- ------------ Proved reserves, Dec. 31, 1997 399,673 10,551,009 Production ( 64,346) ( 2,016,034) Sales of minerals in place ( 6,928) ( 687,223) Extensions and discoveries 35,494 491,481 Revisions of previous estimates ( 45,323) 1,040,638 ------- ----------
Proved reserves, Dec. 31, 1998 318,570 9,379,871 Production ( 58,465) ( 1,540,061) Extensions and discoveries 67 16,189 Revisions of previous estimates 467,644 435,563 ------- ----------
Proved reserves, Dec. 31, 1999 727,816 8,291,562 Production ( 52,169) ( 1,490,003) Sales of minerals in place ( 31,935) ( 23,549) Extensions and discoveries - 23,214 Revisions of previous estimates (204,637) 741,370 ------- ---------- Proved reserves, Dec. 31, 2000 439,075 7,542,594
======= ==========
PROVED DEVELOPED RESERVES:
December 31, 1998 318,570 9,379,871 ======= ========== December 31, 1999 727,565 8,283,990 ======= ========== December 31, 2000 439,075 7,542,594 ======= ==========
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I-F Partnership ---------------
Crude Natural Oil Gas (Barrels) (Mcf) --------- -----------
Proved reserves, Dec. 31, 1997 197,431 3,330,621 Production ( 30,203) ( 530,040) Sales of minerals in place ( 2,473) ( 248,611) Extensions and discoveries 16,858 262,256 Revisions of previous estimates ( 32,096) 220,951 ------- ---------
Proved reserves, Dec. 31,1998 149,517 3,035,177 Production ( 27,794) ( 381,318) Extensions and discoveries 46 11,332 Revisions of previous estimates 229,882 105,148 ------- ---------
Proved reserves, Dec. 31,1999 351,651 2,770,339 Production ( 25,105) ( 347,462) Sales of minerals in place ( 22,359) ( 16,485) Extensions and discoveries - 16,250 Revisions of previous estimates ( 93,309) 175,485 ------- ---------
Proved reserves, Dec. 31, 2000 210,878 2,598,127 ======= =========
PROVED DEVELOPED RESERVES:
December 31, 1998 149,517 3,035,177 ======= ========= December 31, 1999 351,522 2,766,466 ======= ========= December 31, 2000 210,878 2,598,127 ======= =========
Standardized Measure of Discounted Future Net Cash Flows of Proved Oil and Gas Reserves - Unaudited
The following tables set forth each of the Partnerships' estimated future net cash flows as of December 31, 2000 relating to proved oil and gas reserves based on the standardized measure as prescribed in SFAS No. 69:
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Partnership ---------------------------------- I-D I-E ------------ -------------
Future cash inflows $10,146,140 $55,738,221 Future production and development costs ( 1,746,187) ( 11,583,815) ---------- ----------
Future net cash flows $ 8,399,953 $44,154,406
10% discount to reflect timing of cash flows ( 3,051,852) ( 15,289,099) ---------- ----------
Standardized measure of discounted future net cash flows $ 5,348,101 $28,865,307 ========== ==========
I-F ---------------
Future cash inflows $20,988,369 Future production and development costs ( 4,981,637) ----------
Future net cash flows $16,006,732
10% discount to reflect timing of cash flows ( 6,320,340) ----------
Standardized measure of discounted future net cash flows $ 9,686,392 ==========
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
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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 near future. Although every reasonable effort has been made to ensure that the reserve estimates reported herein 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 Partnerships' estimated future cash inflows as of December 31, 2000 were determined using the following year end prices:
Partnership Oil (per Bbl) Gas (per Mcf) ----------- ------------- ------------- I-D $31.78 $5.75 I-E 30.69 5.60 I-F 30.72 5.58
5. QUARTERLY FINANCIAL DATA (Unaudited)
Summarized unaudited quarterly financial data for 2000 and 1999 are as follows:
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I-D Partnership ---------------
----------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter -------- -------- -------- --------
Total Revenues $220,463 $372,089 $372,965 $322,396 Gross Profit (1) 136,327 327,090 320,163 285,538 Net Income 93,033 284,790 280,330 256,840 Limited Partners' Net Income Per Unit 10.71 33.29 32.84 30.27
---------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter -------- -------- -------- --------
Total Revenues $133,632 $191,341 $252,428 $200,540 Gross Profit (1) 80,148 168,471 213,270 156,500 Net Income 36,318 133,689 176,929 95,514 Limited Partners' Net Income Per Unit 3.98 15.57 20.64 10.54
- -------------------- (1) Total revenues less oil and gas production expenses.
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I-E Partnership ---------------
--------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter --------- ---------- ---------- ---------
Total Revenues $1,332,130 $1,669,636 $2,013,576 $1,949,334 Gross Profit (1) 990,403 1,357,401 1,683,533 1,490,821 Net Income 686,385 1,093,650 1,418,832 1,300,602 Limited Partners' Net Income Per Unit 13.48 21.78 28.41 26.25
--------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter --------- ---------- ---------- ---------
Total Revenues $ 705,239 $1,626,967 $1,260,660 $1,263,310 Gross Profit (1) 406,788 1,368,073 990,726 936,652 Net Income 114,693 1,104,915 713,570 596,224 Limited Partners' Net Income Per Unit 1.87 21.99 14.00 11.41
- -------------------- (1) Total revenues less oil and gas production expenses.
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I-F Partnership ---------------
--------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter --------- --------- --------- ---------
Total Revenues $441,901 $506,349 $589,601 $565,673 Gross Profit (1) 299,143 375,661 458,548 440,619 Net Income 207,208 297,904 381,221 353,948 Limited Partners' Net Income Per Unit 11.95 17.37 22.34 20.63
--------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter --------- --------- --------- ---------
Total Revenues $214,466 $769,989 $409,976 $374,594 Gross Profit (1) 107,257 668,575 287,115 281,032 Net Income 14,656 581,075 195,536 152,024 Limited Partners' Net Income Per Unit .48 34.06 11.13 8.19
- -------------------- (1) Total revenues less oil and gas production expenses.
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INDEX TO EXHIBITS -----------------
Number Description - ------ ----------- 4.1 Amended and Restated Agreement and Certificate of Limited Partnership dated March 4, 1986 for Geodyne Energy Income Limited Partnership I-D filed as Exhibit 4.1 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.2 Amended and Restated Agreement and Certificate of Limited Partnership dated September 10, 1986 for Geodyne Energy Income Limited Partnership I-E filed as Exhibit 4.2 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.3 Amended and Restated Agreement and Certificate of Limited Partnership dated December 17, 1986 for Geodyne Energy Income Limited Partnership I-F filed as Exhibit 4.3 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.4 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated February 24, 1993 for Geodyne Energy Income Limited Partnership I-D filed as Exhibit 4.4 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.5 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated February 24, 1993 for Geodyne Energy Income Limited Partnership I-E filed as Exhibit 4.5 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.6 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated February 24, 1993 for Geodyne Energy Income Limited Partnership I-F filed as Exhibit 4.6 to Registrant's Annual Report on Form 10-K for the year
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ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.7 Second Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated August 4, 1993 for Geodyne Energy Income Limited Partnership I-D filed as Exhibit 4.7 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.8 Second Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated August 4, 1993 for Geodyne Energy Income Limited Partnership I-E filed as Exhibit 4.8 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.9 Second Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated August 4, 1993 for Geodyne Energy Income Limited Partnership I-F filed as Exhibit 4.9 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.10 Third Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated July 1, 1996 for Geodyne Energy Income Limited Partnership I-D filed as Exhibit 4.10 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.11 Third Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated July 1, 1996 for Geodyne Energy Income Limited Partnership I-E filed as Exhibit 4.11 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.12 Third Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated July 1, 1996 for Geodyne Energy Income Limited Partnership I-F filed as Exhibit 4.12 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.13 Fourth Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated December 23, 1999 for Geodyne Energy Income Limited Partnership I-D
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filed as Exhibit 4.13 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.14 Fourth Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated December 23, 1999 for Geodyne Energy Income Limited Partnership I-E filed as Exhibit 4.14 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
4.15 Fourth Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated December 23, 1999 for Geodyne Energy Income Limited Partnership I-F filed as Exhibit 4.15 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.1 Amended and Restated Agreement of Partnership dated March 4, 1986 for Geodyne Energy Income Production Partnership I-D filed as Exhibit 10.1 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.2 Amended and Restated Agreement of Partnership dated September 10, 1986 for Geodyne Energy Income Production Partnership I-E filed as Exhibit 10.2 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.3 Amended and Restated Agreement of Partnership dated December 17, 1986 for Geodyne Energy Income Production Partnership I-F filed as Exhibit 10.3 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.4 First Amendment to Amended and Restated Agreement of Partnership dated February 26, 1993 for Geodyne Energy Income Production Partnership I-D filed as Exhibit 10.4 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.5 First Amendment to Amended and Restated Agreement of Partnership dated February 26, 1993 for Geodyne Energy Income Production Partnership I-E filed as Exhibit 10.5 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February
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25, 1999 and is hereby incorporated by reference.
10.6 First Amendment to Amended and Restated Agreement of Partnership dated February 26, 1993 for Geodyne Energy Income Production Partnership I-F filed as Exhibit 10.6 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.7 Second Amendment to Amended and Restated Agreement of Partnership dated July 1, 1996 for Geodyne Energy Income Production Partnership I-D filed as Exhibit 10.7 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.8 Second Amendment to Amended and Restated Agreement of Partnership dated July 1, 1996 for Geodyne Energy Income Production Partnership I-E filed as Exhibit 10.8 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.9 Second Amendment to Amended and Restated Agreement of Partnership dated July 1, 1996 for Geodyne Energy Income Production Partnership I-F filed as Exhibit 10.9 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.10 Third Amendment to Amended and Restated Agreement of Partnership dated December 30, 1999 for Geodyne Energy Income Production Partnership I-D filed as Exhibit 10.10 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.11 Third Amendment to Amended and Restated Agreement of Partnership dated December 30, 1999 for Geodyne Energy Income Production Partnership I-E filed as Exhibit 10.11 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
10.12 Third Amendment to Amended and Restated Agreement of Partnership dated December 30, 1999 for Geodyne Energy Income Production Partnership I-F filed as Exhibit 10.12 to Registrant's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the SEC on February 25, 1999 and is hereby incorporated by reference.
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*23.1 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership I-D.
*23.2 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership I-E.
*23.3 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership I-F.
All other Exhibits are omitted as inapplicable.
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* Filed herewith.
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