-----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, VcXZutrQbyAYJ2qcqCDgDLBfRy/a3OU0F5DFMri3RRQ5xFdtZ20uuYe00/3OlGZM lOIylg4XfeMx+BHna7sAOA== 0000950134-97-008451.txt : 19971115 0000950134-97-008451.hdr.sgml : 19971115 ACCESSION NUMBER: 0000950134-97-008451 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971113 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARINE PETROLEUM TRUST CENTRAL INDEX KEY: 0000062362 STANDARD INDUSTRIAL CLASSIFICATION: OIL ROYALTY TRADERS [6792] IRS NUMBER: 756008017 STATE OF INCORPORATION: TX FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-08565 FILM NUMBER: 97717400 BUSINESS ADDRESS: STREET 1: NATIONSBANK OF TEXAS N A STREET 2: P O BOX 831402 CITY: DALLAS STATE: TX ZIP: 75283-1402 BUSINESS PHONE: 2145081796 MAIL ADDRESS: STREET 1: P O BOX 831402 CITY: DALLAS STATE: TX ZIP: 75283-1402 10-Q 1 FORM 10-Q FOR PERIOD ENDED 09/30/97 1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 --------------------- FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM ________ TO ________ . COMMISSION FILE NUMBER 0-8565 MARINE PETROLEUM TRUST (Exact name of registrant as specified in its charter) TEXAS 75-6008017 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) NATIONSBANK OF TEXAS, N.A. 75283-0241 P.O. BOX 830241, DALLAS, TEXAS (Zip Code) (Address of principal executive offices)
Registrant's telephone number, including area code (800) 985-0794 None (Former name, former address and former fiscal year if changed since last report) --------------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No _____ Indicate number of units of beneficial interest outstanding as of the last practicable date.
Title of Each Class of Units Number of Units of Beneficial Interest of Beneficial Interest September 30, 1997 ---------------------------- -------------------------------------- UNITS OF BENEFICIAL INTEREST 2,000,000
================================================================================ 2 PART I. FINANCIAL INFORMATION MARINE PETROLEUM TRUST AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 1997 AND JUNE 30, 1997 (UNAUDITED) ASSETS
SEPTEMBER 30, JUNE 30, 1997 1997 ------------- ---------- Current Assets: Cash and cash equivalents................................. $1,799,157 $1,759,718 Oil and gas royalties receivable.......................... 567,720 835,230 Receivable from affiliate................................. 51,844 64,580 ---------- ---------- Total current assets.............................. 2,418,722 2,659,528 ---------- ---------- Investment in affiliate..................................... 362,883 285,478 Office equipment, at cost less accumulated depreciation..... 1,761 272 Producing oil and gas properties............................ 7 7 ---------- ---------- $2,783,372 $2,945,285 ========== ========== LIABILITIES AND TRUST EQUITY Current Liabilities: Accounts payable.......................................... $ 895,724 $ 895,724 Income taxes payable...................................... 4,158 4,758 ---------- ---------- Total current liabilities......................... 899,882 900,482 Trust Equity: Corpus -- authorized 2,000,000 units of beneficial interest, issued 2,000,000 units at nominal value................ 8 8 Undistributed income...................................... 1,883,482 2,044,795 ---------- ---------- Total trust equity................................ 1,883,490 2,044,803 ---------- ---------- $2,783,372 $2,945,285 ========== ==========
2 3 MARINE PETROLEUM TRUST AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996 (UNAUDITED)
THREE MONTHS -------------------- 1997 1996 -------- -------- Income: Oil and gas royalties..................................... $608,210 $861,011 Equity in earnings of affiliate........................... 116,947 71,412 Interest income of subsidiary............................. 25,293 26,084 -------- -------- $750,450 $958,507 -------- -------- Expenses: General and administrative................................ 35,705 27,858 -------- -------- Income before Federal income taxes........................ 714,745 930,649 Federal income taxes of subsidiary........................ 2,400 3,000 -------- -------- Net income........................................ $712,345 $927,649 ======== ======== Net income per unit......................................... $ .36 $ .46 ======== ======== Distributions per unit...................................... $ .44 $ .50 ======== ========
3 4 MARINE PETROLEUM TRUST AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996 (UNAUDITED)
1997 1996 ---------- ---------- Cash flows from operating activities: Net income................................................ $ 712,345 $ 927,649 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation........................................... 731 174 Changes in assets and liabilities: Royalties receivable................................. 267,509 27,105 Receivable from affiliate............................ 12,736 6,248 Employment tax payable............................... (995) Federal income taxes payable......................... (600) 1,101 ---------- ---------- Net cash provided by operating activities......... 992,721 961,282 ---------- ---------- Cash flows provided by (used in) investing activities: Purchase of office equipment......................... (2,219) Decrease (increase) in undistributed earnings of affiliate........................................... (77,405) 19,349 Cash flows from financing activities -- distributions to unitholders............................................... (873,658) (991,896) ---------- ---------- Net increase (decrease) in cash and cash equivalents..................................... 39,439 (11,265) ---------- ---------- Cash and cash equivalents at beginning of period............ 1,759,718 2,020,695 ---------- ---------- Cash and cash equivalents at end of period.................. $1,799,157 $2,009,430 ========== ==========
4 5 MARINE PETROLEUM TRUST AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 1997 (UNAUDITED) ACCOUNTING POLICIES The financial statements include the financial statements of Marine Petroleum Trust (the "Trust") and its wholly-owned subsidiary, are condensed, and should be read in conjunction with the annual report for the fiscal year ended June 30, 1997. The financial statements included herein are unaudited, but in the opinion of management include all adjustments necessary for a fair presentation of the results of operations for the periods indicated. UNDISTRIBUTED INCOME Undistributed income on September 30, 1997 includes $1,187,461 applicable to the Trust and $696,022 applicable to Marine Petroleum Corporation, the Trust's wholly-owned subsidiary. Distributions to unitholders are dependent on the volume and price of oil and gas sold by others and will fluctuate from quarter to quarter. ACCOUNTS PAYABLE Marine Petroleum Corporation has provided an account payable of $895,724 to cover possible refunds that may be required upon redetermination of gas prices for royalty payments in prior periods. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FINANCIAL CONDITION -- LIQUIDITY AND CAPITAL RESOURCES The Trust is a "royalty trust" with overriding royalty interests in oil and gas leases in the Gulf of Mexico. The Trust's indenture (and the charter and by-laws of its subsidiary) expressly prohibit the operation of any kind of trade or business. All royalties received by the Trust, less administrative expenses, are distributed quarterly to unitholders. Since the Trust's sole purpose is to collect and distribute cash collected from royalties, there are no requirements for capital. GENERAL Distributions to unitholders for the current quarter amounted to $.44 per unit, down $.02 from the $.46 distributed in the previous quarter ended June 30, 1997. Net income for the current quarter was $.36 per unit, down $.09 per unit from that realized in the previous quarter. Royalties from oil sales were down this quarter as compared to the June 1997 quarter. The quantity of oil sold decreased 7% and the average price decreased 12%. Royalties from gas sales also decreased. The quantity of gas sold decreased 18% and the average price remained about the same. Several factors are involved in these results. The demand for gas typically declines during the summer and some wells were shut in for a few 5 6 days in July due to hurricane Danny. When a hurricane is forecasted to enter the Gulf of Mexico wells typically are shut in and personnel are evacuated. The natural decline of the capability of a well to produce also may affect the volume of product sold. Drilling operations continued at a brisk pace during the current quarter. Since June 30, 1997, 14 drilling operations were in process. Results to date have produced 3 wells that will produce oil or gas, 2 that were dry and abandoned, 7 that still are in process and 2 for which permits for future drilling were obtained. Most of the drilling is being conducted by Chevron in the Eugene Island and South Timbalier areas. Income from the Trust's 32.6% equity in Tidelands Royalty Trust B increased 36% in the current quarter over that of the June 30, 1997 quarter. In July two additional wells went on stream in the Galveston Block 303 Field. The additional income from these wells is largely responsible for the increase. The Trust's revenues are derived from the oil and gas production activities of unrelated parties. The Trust's revenues and distributions fluctuate from period to period based upon factors beyond The Trust's control, including without limitation the number of productive wells drilled and maintained on leases subject to the Trust's interest, the level of production over time from such wells and the prices at which the oil and gas from such wells is sold. The Trust believes that it will continue to have revenues sufficient to permit distributions to be made to unitholders for the foreseeable future, although no assurance can be made regarding the amounts thereof. The foregoing sentence is a forward-looking statement. Factors that might cause actual results to differ from expected results include reductions in prices or demand for oil and gas, which might then lead to decreased production; reductions in production due to depletion of existing wells or disruptions in service, including as the result of storm damage to production facilities, blowouts or other production accidents, and geological changes such as cratering of productive formations; expiration or release of leases subject to the Trust's interests; and the discontinuation by parties subject to the contract dated April 30, 1951 between Tidelands' predecessors and Gulf Oil Corporation of their efforts to obtain leases in the area that is subject to Tidelands' interests. RESULTS OF OPERATIONS -- THREE MONTHS ENDED SEPTEMBER 30, 1997 Net income for the quarter ended September 30, 1997 amounted to $712,345, which was approximately 23% less than the $927,649 realized in the comparable period of 1996. The volume of oil sold decreased approximately 22% over the comparable period last year, and the average price per barrel of oil decreased $2.44 to $17.64 per bbl from $20.08 a year ago. Natural gas volumes sold decreased to 183,059 mcf in the current period from 208,969 mcf for the comparable period last year. The average price increased $.02 to $2.26 per mcf, from $2.24 a year ago. Income from oil royalties for the current quarter (exclusive of the equity in Tidelands) was $300,722 and income from gas royalties was $307,488. In the comparable period a year ago oil royalties amounted to $455,529 and income from gas royalties amounted to $405,482. Income from the equity interest in Tidelands increased approximately 64% to $116,947 in the current quarter and represents approximately 16% of the Trust's net income. In the comparable quarter a year ago income from this source amounted to $71,412 and was approximately 8% of the Trust's net income for that period. See "-- General." 6 7 The quantities of oil and gas sold and the average prices for oil and gas (including the equity in Tidelands) for the three month periods ended September 30, 1997 and 1996 are presented in the following table:
1997 1996 -------- ------- OIL Barrels sold.............................................. 17,919 23,102 Average price............................................. $ 17.64 $ 20.08 NATURAL GAS mcf sold.................................................. 183,059 208,969 Average price............................................. $ 2.26 $ 2.24
PART II. OTHER INFORMATION There were no events reportable under Part II of the Quarterly Report on Form 10-Q. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. MARINE PETROLEUM TRUST NationsBank of Texas, N.A., Trustee November 13, 1997 By: /s/ PATRICIA COX ---------------------------------- Patricia Cox Vice President November 13, 1997 /s/ R. RAY BELL ------------------------------------ Principal Accounting Officer 7 8 INDEX TO EXHIBITS
EXHIBIT NUMBER DESCRIPTION -------------- ----------- 27 -- Financial Data Schedule
EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS JUN-30-1998 JUL-01-1997 SEP-30-1997 1,799,157 0 567,721 0 0 2,418,722 1,768 0 2,783,372 899,882 0 8 0 0 1,883,482 2,783,372 608,210 750,450 0 0 35,705 0 0 714,745 2,400 712,345 0 0 0 712,345 .36 .36
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