-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CDcZvOl90JwRoktwdUGk4LgJZC4HlZx5sl51zwfTI3k6NNvAzfm5iKmqHgHyWpHA aEQVOL+Ye9noEyE8FjDZSA== 0001042413-99-000007.txt : 19990819 0001042413-99-000007.hdr.sgml : 19990819 ACCESSION NUMBER: 0001042413-99-000007 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990818 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ATLAS ENERGY FOR THE NINETIES PUBLIC NO 7 LTD CENTRAL INDEX KEY: 0001067662 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 251814688 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 333-62167 FILM NUMBER: 99695627 BUSINESS ADDRESS: STREET 1: 311 ROUSER ROAD CITY: MOON TOWNSHIP STATE: PA ZIP: 15108 BUSINESS PHONE: 4122622830 MAIL ADDRESS: STREET 1: 311 ROUSER ROAD CITY: MOON TOWNSHIP STATE: PA ZIP: 15108 10QSB 1 U.S. Securities and Exchange Commission Washington, D.C. 20549 Form 10-QSB (Mark One) [ X ] QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1999 [ ] TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 333-62167 Atlas-Energy for the Nineties-Public #7 Ltd. (Name of small business issuer in its charter) Pennsylvania 25-1814688 (State or other jurisdiction of ( I.R.S. Employer identification No.) incorporated or organization) 311 Rouser Road, Moon Township, Pennsylvania 15108 (Address of principal executive offices) (Zip Code) Issuer's telephone (412) 262-2830 (Former name, former address and former fiscal year, if changed since last report) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Transitional Small Business Disclosure Format (check one): Yes X No - ----------------------------------------------------------------------------- PART I Item 1. Financial Statements The unaudited Financial Statements of Atlas-Energy for the Nineties-Public #6 Ltd. (the "Partnership") for the period January 1, 1999 to June 30, 1999 Item 2. Description of Business The Partnership has placed into production 57.5 net wells to the Clinton/Medina formation in Mercer and Lawrence counties, Pennsylvania and Stark and Trumbull counties in Ohio. As of June 30, 1999, all 57.5 net wells are in production. The first quarterly distribution was on July 10, 1999 for natural gas production during January, February, March and April, 1999. Natural gas sales revenue for the three months was $507,244 which includes landowner royalties. Expenses for this period include $75.00 per month per well for administrative costs and $275.00 per month per well for pumpers fees. For the next twelve months management believes that the Partnership has adequate capital. No other wells will be drilled and, therefore, no additional funds will be required. Although management does not anticipate that the Partnership will have to do so, any additional funds which may be required will be obtained from production revenues from Partnership wells or from borrowings by the Partnership from Atlas or its affiliates, although Atlas is not contractually committed to make such a loan. No borrowings will be obtained from third parties. PART II Item 1. Legal Proceeding None Item 2. Changes in Securities None Item 3. Defaults Upon Senior Securities None Item 4. Submission of Matters to a Vote of Securities Holders None Item 5. Other Matters None Item 6. Reports on Form 8-K The registrant filed no reports on Form 8-K during the last quarter of the period covered by this report. - ----------------------------------------------------------------------------- UNAUDITED FINANCIAL STATEMENTS ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD. A PENNSYLVANIA LIMITED PARTNERSHIP BALANCE SHEET As of June 30, 1999 and December 31, 1998 BALANCE SHEET ASSETS 06/30/99 12/31/98 Increase (unaudited) (decrease) Cash $ 89,385 $ - $ 89,385 Accounts receivable 425,029 29,592 395,437 ------- ------- --------- TOTAL CURRENT ASSETS 514,414 29,592 484,822 Oil and gas drilling contracts/leases ,net of accum. depl. & amort. 13,587,753 14,042,536 (454,783) Organizational/syndication costs (note 3) -0- 1,798,253 (1,798,253) ---------- ---------- ---------- TOTAL ASSETS $14,102,167 $15,870,381 $(1,768,214) ========== ========== ========== LIABILITIES AND PARTNERS' CAPITAL Accounts payable $ 23,162 $ - $ 23,162 Partners' capital 14,079,005 15,870,381 (1,791,376) ---------- ---------- ---------- TOTAL LIABILITIES AND PARTNERS CAPITAL $14,102,167 $15,870,381 $(1,768,214) ========== ========== ========== The notes to Financial Statements are an integral part of this statement. - -------------------------------------------------------------------------- ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD. A PENNSYLVANIA LIMITED PARTNERSHIP STATEMENT OF INCOME (Unaudited) For the six months ended June 30, 1999 and 1998 Six Months Ended Second Quarter Ended June 30, June 30, 1999 1998 1999 1998 ------------------ ------------------- REVENUE Natural gas sales $610,607 $- $507,244 $- Interest Income 436 - 344 - Total Revenue 611,043 - 507,588 - EXPENSES Well operating expense 96,587 - 82,214 - Depletion and depreciation of oil and gas wells and leases 454,783 - 373,313 - General and administ. fees 14,052 - 11,108 - Professional fees 8,191 - 2,932 - Amortiza. of organ/synd costs -0- - - - Other 960 - 371 - ---------- ------- ------- ------- Total Expenses 574,573 - 469,938 - ---------- ------- ------- ------- Earnings before cumulative effect of chg. in acctg. principle 36,470 - 37,649 - Cumulative effect of chg. in acctg. principle(Note3) (1,798,253) -0- -0- -0- ----------- ------ -------- ------- Net Earnings (Loss) $(1,761,783) $ - $37,649 $ - ============ ========= ======== ========= The notes to Financial Statements are an integral part of this statement. - ----------------------------------------------------------------------------- ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD. A PENNSYLVANIA LIMITED PARTNERSHIP STATEMENT OF CASH FLOWS (UNAUDITED) For the six months ended June 30, 1999 and 1998 Six Months Ended June 30, 1999 1998 -------------------- Increase (Decrease) in Cash Cash flows from operating activities Net Earnings ($ 1,761,783) $- Adjustments to reconcile net earnings to net cash provided by operating activities: Cumulative effect of change in acctg. principle 1,798,253 -0- Depletion and depreciation 454,783 0 Amortization of organizational/synd.costs -0- 0 (Increase) accounts receivable (395,437) 0 Increase in accounts payable 23,162 0 ----------- ---------- Cash provided by operating activities 118,978 0 Cash flows used in financing activities: Distributions to Partners (29,593) 0 ---------- --------- Net Increase in Cash 89,385 0 Cash at beginning of period 0 0 ---------- --------- Cash at end of period $ 89,385 $ 0 ========== ========= The notes to Financial Statements are an integral part of this statement. - ----------------------------------------------------------------------------- ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD. A PENNSYLVANIA LIMITED PARTNERSHIP STATEMENT OF CHANGES IN PARTNERS' CAPITAL ACCOUNTS (Unaudited) For the three months ended June 30, 1999 MANAGING GENERAL OTHER PARTNER PARTNERS TOTAL BALANCE AT JANUARY 1, 1999 $3,852,439 $12,017,942 $15,870,381 Participation in revenue and expenses: Net production revenues 159,346 354,674 514,020 Interest 135 301 436 Depletion and depreciation ( 66,594) ( 388,189) (454,783) Amortization 0 0 0 Other costs ( 7,193) ( 16,010) (23,203) ----------- ---------- -------- Earnings before cumulative effect of change in acctg. principle 85,694 (49,224) 36,470 Cumulative effect of chg. in acctg. principle (1,798,253) -0- (1,798,253) Distributions 0 ( 29,593) (29,593) ----------- ----------- ---------- BALANCE AT June 30, 1999 $ 2,139,880 $11,939,125 $14,079,005 =========== ========== ============= The notes to Financial Statements are an integral part of this statement. - ----------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) ATLAS-ENERGY FOR THE NINETIES--PUBLIC #7 LTD. A PENNSYLVANIA LIMITED PARTNERSHIP June 30, 1999 1. INTERIM FINANCIAL STATEMENTS The financial statements as of June 30, 1999 and for the six months then ended have been prepared by the management of the Partnership without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations, although the Partnership believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited December 31, 1998 financial statements. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for presentation have been included. 2. SIGNIFICANT ACCOUNTING POLICIES The Partnership uses the successful efforts method of accounting for oil and gas activities. Costs to acquire mineral interests in oil and gas properties and drill and equip wells are capitalized. Oil and gas properties are periodically assessed and when unamortized costs exceed expected future net cash flows, a loss is recognized by a charge to income. Capitalized costs of oil and gas wells and leases are depreciated, depleted and amortized by the unit of production method. 3. REPORTING ON THE COSTS OF START-UP ACTIVITIES In 1998, the AICPA issued Statement of Position 98-5 ("SOP 98-5"), Reporting on the Costs of Start-Up Activities. This statement requires costs of start-up activities and organization costs, as defined, to be expensed as incurred. The partnership was required to adopt the provisions of SOP 98-5 effective January 1, 1999 and as a result has written-off the unamortized balance of Organizational/Syndication costs as of that date. In its previously-filed Form 10QSB for the quarter ended March 31, 1999, the Partnership incorrectly recorded the impact of the adoption of SOP 98-5 as a direct charge to Partners' capital. Although the balance sheet at March 31, 1999 included in such Form 10QSB is correct, the Statement of Income for the three months ended March 31, 1999 should have included the following captions and amounts: Loss before cumulative effect of change in acctg. principle $ (1,180) Cumulative effect of change in accounting principle (1,798,253) ----------- Net Los $ (1.799,433) This non-cash charge has no effect on reported cash flows. No Organizational/ Syndication costs were recorded by the Partnership during the six months June 30, 1999. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION ATLAS-ENERGY FOR THE NINETIES-PUBLIC #7 LTD. Management's discussion and analysis should be read in conjunction with the financial statements and notes thereto. Results of Operations - --------------------- Six Months Ended June 30, 1999 - ------------------------------------------- The Partnership commenced production in January, 1999. Natural gas sales revenue for the six months ended June 30,1999 amounted to $610,607 based on gas production of 324,844 Mcf. The average sales price for gas production during this period was $2.15/Mcf. Quarter Ended June 30, 1999 Natural gas sales revenue for the three months ended June 30, 1999 amounted to $507,244. Gas production was 266,651 Mcf; and the average sales price was $2.18/Mcf. Financial Condition - ------------------- Liquidity - --------- Cash provided by operating activities during the six months ended June 30, 1999 results primarily from sales of natural gas. The partnership's working capital increased from $29,592 at December 31, 1998 to $491,252 at June 30, 1999. The increase is attributable to the commencement of natural gas production for new wells turned on-line during the current quarter, which resulted in higher receivables in connection with sales of gas produced. Capital Resources - ----------------- There were no new material commitments for capital expenditures during the period and the Partnership does not expect any in the foreseeable future. By (Signature and Title): /s/ James R. O'Mara James R. O'Mara President, Chief Executive Officer and a Director Date: June 30, 1999 In Accordance with the Exchange Act, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title): /s/ James R. O'Mara James R. O'Mara President, Chief Executive Officer and a Director Date: June 30, 1999 By (Signature and Title): /S/ Tony C. Banks Tony C. Banks Vice President and Chief Financial Officer Date: June 30, 1999 - ------------------------------------------------------------------------ EX-27 2
5 3-MOS DEC-31-1999 JUN-30-1999 89,385 0 425,029 0 0 514,414 14,042,536 (454,783) 14,102,167 23,162 0 0 0 0 0 14,102,167 698,491 698,928 87,885 87,885 574,573 0 0 36,470 0 36,470 0 0 (1,798,253) (1,761,783) 0 0
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