-----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, V5HbX69TQfXa5BKfXKMoewWC+fP9HSsOcT6BtiwHpnRh5IDawe1/+qKLokMne7rY t3eqkynx45vYH94Squy0og== 0000950134-96-006105.txt : 19961115 0000950134-96-006105.hdr.sgml : 19961115 ACCESSION NUMBER: 0000950134-96-006105 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961113 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: 1934 Act SEC FILE NUMBER: 000-08565 FILM NUMBER: 96662482 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 SEPTEMBER 30, 1995 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, 1996 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, 1996 - -------------------------------------------------------------------------------------------- UNITS OF BENEFICIAL INTEREST 2,000,000
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 2 PART I. FINANCIAL INFORMATION MARINE PETROLEUM TRUST AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 1996 AND JUNE 30, 1996 (UNAUDITED) ASSETS
SEPTEMBER 30, JUNE 30, 1996 1996 ------------- ---------- Current Assets: Cash and cash equivalents........................................ $ 2,009,430 $2,020,695 Oil and gas royalties receivable................................. 560,820 587,925 Receivable from affiliate........................................ 96,478 102,726 ---------- ---------- Total current assets..................................... 2,666,728 2,711,346 ---------- ---------- Investment in affiliate............................................ 247,133 266,482 Office equipment, at cost less accumulated depreciation............ 797 971 Producing oil and gas properties................................... 7 7 ---------- ---------- $ 2,914,665 $2,978,806 ========== ========== LIABILITIES AND TRUST EQUITY Current Liabilities: Accounts payable................................................. $ 895,724 $ 895,724 Employment tax payable........................................... 1,464 2,459 Income taxes payable............................................. 11,771 10,670 ---------- ---------- Total current liabilities................................ 908,959 908,853 Trust Equity: Corpus -- authorized 2,000,000 units of beneficial interest, issued 2,000,000 units at nominal value....................... 8 8 Undistributed income............................................. 2,005,698 2,069,945 ---------- ---------- Total trust equity....................................... 2,005,706 2,069,953 ---------- ---------- $ 2,914,665 $2,978,806 ========== ==========
2 3 MARINE PETROLEUM TRUST AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 (UNAUDITED)
THREE MONTHS --------------------- 1996 1995 -------- -------- Income: Oil and gas royalties................................................ $861,011 $535,806 Equity in earnings of affiliate...................................... 71,412 91,322 Interest income of subsidiary........................................ 26,084 23,421 -------- -------- $958,507 $650,549 -------- -------- Expenses: General and administrative........................................... 27,858 20,636 -------- -------- Income before Federal income taxes................................... 930,649 629,913 Federal income taxes of subsidiary................................... 3,000 -- -------- -------- Net income................................................... $927,649 $629,913 ======== ======== Net income per unit.................................................... $ .46 $ .31 ======== ======== Distributions per unit................................................. $ .50 $ .27 ======== ========
3 4 MARINE PETROLEUM TRUST AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 (UNAUDITED)
1996 1995 ---------- ---------- Cash flows from operating activities: Net income........................................................ $ 927,649 $ 629,913 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation................................................... 174 175 Changes in assets and liabilities: Royalties receivable......................................... 27,105 (15,162) Receivable from affiliate.................................... 6,248 10,793 Employment tax payable....................................... (995) -- Federal income taxes payable................................. 1,101 (1,500) ----------- ----------- Net cash provided by operating activities................. 961,282 624,219 ----------- ----------- Cash flows provided by (used in) investing activities: Decrease (increase) in undistributed earnings of affiliate... 19,349 (20,569) Cash flows from financing activities -- distributions to unitholders....................................................... (991,896) (548,353) ----------- ----------- Net increase (decrease) in cash and cash equivalents...... (11,265) 55,297 ----------- ----------- Cash and cash equivalents at beginning of period.................... 2,020,695 1,661,312 ----------- ----------- Cash and cash equivalents at end of period.......................... $2,009,430 $1,716,609 =========== ===========
4 5 MARINE PETROLEUM TRUST AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 1996 (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, 1996. 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, 1996 includes $1,361,118 applicable to the Trust and $644,580 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 Net income amounted to $.46 per unit in the current quarter ended September 30, 1996. In the comparable period of 1995 net income was $.31 per unit. Net income increased in the current quarter, primarily due to an increase in oil production and an increase in the price of both oil and gas. Since June 30, 1996, the end of the Trust's last fiscal year, operators have drilled 5 new development wells and have re-entered and re-drilled 3 old wells. These operations resulted in 8 new oil or gas wells. The Trust's income from its equity interest in Tidelands Royalty Trust B (Tidelands) was $.036 per unit in the current quarter and for the comparable period last year it amounted to $.046 per unit. Tidelands 5 6 experienced a 22% decline in its income from oil and gas royalties for the quarter ended September 30, 1996 due to a decline in production of both oil and natural gas. 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, 1996 Net income for the quarter ended September 30, 1996 amounted to $927,649, which was approximately 47% more than the $629,913 realized in the comparable period of 1995. The volume of oil sold increased approximately 27% over the comparable period last year, and the average price per barrel of oil increased $3.77 to $20.08 per bbl from $16.31 a year ago. Natural gas volumes sold decreased approximately 1% in the current period from the comparable period last year. Natural gas volumes amounted to 208,969 mcf this period and were 210,632 mcf for the comparable period last year. The average price increased $.67 to $2.24 per mcf, from $1.57 a year ago. The Trust's equity in the income of Tidelands decreased approximately 22% in the current period over the comparable period last year. See "-- General." 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, 1996 and 1995 are presented in the following table:
1996 1995 ------- ------- OIL Barrels sold................................................... 23,102 18,193 Average price.................................................. $20.08 $16.31 NATURAL GAS mcf sold....................................................... 208,969 210,632 Average price.................................................. $2.24 $1.57
6 7 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 12, 1996 By: /s/ PATRICIA COX -------------------------------- Patricia Cox Vice President November 12, 1996 /s/ R. RAY BELL ----------------------------------- 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-30-1997 JUL-01-1996 SEP-30-1996 2,009,430 0 560,820 0 0 2,666,728 0 0 2,914,665 908,959 0 8 0 0 2,005,698 2,914,665 861,011 958,507 0 0 27,858 0 0 930,649 3,000 927,649 0 0 0 927,649 .46 .46
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