-----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, D0ZXR8v7YDYNWF61OGT6S4h9Yuw16l6ql4BcNQNzgXqJRFNGUeXgRlJHRy6ov5gp /124AJo7QXwjqYguUnS4DA== 0000950134-98-000971.txt : 19980212 0000950134-98-000971.hdr.sgml : 19980212 ACCESSION NUMBER: 0000950134-98-000971 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980211 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: 98530181 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 12/31/97 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 DECEMBER 31, 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 December 31, 1997 ---------------------------- -------------------------------------- UNITS OF BENEFICIAL INTEREST 2,000,000
================================================================================ 2 PART I. FINANCIAL INFORMATION MARINE PETROLEUM TRUST AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS DECEMBER 31, 1997 AND JUNE 30, 1997 (UNAUDITED) ASSETS
DECEMBER 31, JUNE 30, 1997 1997 ------------- ---------- Current Assets: Cash and cash equivalents................................. $2,206,850 $1,759,718 Oil and gas royalties receivable.......................... 308,736 835,230 Receivable from affiliate................................. 215,022 64,580 ---------- ---------- Total current assets.............................. 2,730,608 2,659,528 ---------- ---------- Investment in affiliate..................................... 290,730 285,478 Office equipment, at cost less accumulated depreciation..... 1,110 272 Producing oil and gas properties............................ 7 7 ---------- ---------- $3,022,455 $2,945,285 ========== ========== LIABILITIES AND TRUST EQUITY Current Liabilities: Accounts payable.......................................... $ 895,724 $ 895,724 Income taxes payable...................................... 4,458 4,758 ---------- ---------- Total current liabilities......................... 900,182 900,482 Trust Equity: Corpus -- authorized 2,000,000 units of beneficial interest, issued 2,000,000 units at nominal value................ 8 8 Undistributed income...................................... 2,122,265 2,044,795 ---------- ---------- Total trust equity................................ 2,122,273 2,044,803 ---------- ---------- $3,022,455 $2,945,285 ========== ==========
2 3 MARINE PETROLEUM TRUST AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 1997 AND 1996 (UNAUDITED)
THREE MONTHS SIX MONTHS ---------------------- ------------------------ 1997 1996 1997 1996 -------- ---------- ---------- ---------- Income: Oil and gas royalties.................... $825,162 $1,085,760 $1,433,372 $1,946,771 Equity in earnings of affiliate.......... 133,285 79,284 250,232 150,696 Interest income of subsidiary............ 22,607 22,794 47,900 48,878 -------- ---------- ---------- ---------- $981,054 $1,187,838 $1,731,504 $2,146,345 -------- ---------- ---------- ---------- Expenses: General and administrative............... 37,135 47,881 72,840 75,739 -------- ---------- ---------- ---------- Income before Federal income taxes....... 943,919 1,139,957 1,658,664 2,070,606 Federal income taxes of subsidiary....... 3,300 2,500 5,700 5,500 -------- ---------- ---------- ---------- Net income....................... $940,619 $1,137,457 $1,652,964 $2,065,106 ======== ========== ========== ========== Net income per unit........................ $ 0.47 $ 0.57 $ 0.83 $ 1.03 ======== ========== ========== ========== Distributions per unit..................... $ 0.35 $ 0.49 $ 0.79 $ 0.99 ======== ========== ========== ==========
3 4 MARINE PETROLEUM TRUST AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED DECEMBER 31, 1997 AND 1996 (UNAUDITED)
1997 1996 ----------- ----------- Cash flows from operating activities: Net income................................................ $ 1,652,964 $ 2,065,106 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation........................................... 1,381 349 Changes in assets and liabilities: Decrease (increase) in Royalties receivable.......... 526,494 (136,590) Receivable from affiliate............................ (150,442) 23,311 Employment tax payable............................... (324) Federal income taxes payable......................... (300) 1,700 ----------- ----------- Net cash provided by operating activities......... 2,030,097 1,953,552 ----------- ----------- Cash flows provided by (used in) investing activities: Purchase of office equipment......................... (2,219) Decrease (increase) in undistributed earnings of affiliate........................................... (5,252) 14,105 Cash flows from financing activities -- distributions to unitholders............................................... (1,575,494) (1,972,357) ----------- ----------- Net increase (decrease) in cash and cash equivalents.................................... 447,132 (4,700) ----------- ----------- Cash and cash equivalents at beginning of period............ 1,759,718 2,020,695 ----------- ----------- Cash and cash equivalents at end of period.................. $ 2,206,850 $ 2,015,995 =========== ===========
4 5 MARINE PETROLEUM TRUST AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 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 December 31, 1997 includes $1,410,194 applicable to the Trust and $712,071 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. 5 6 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 Distributable income declined in each of the last four quarters due mainly to a decrease in the production and sale of oil and gas. Oil production included in distributable income declined to 184 barrels per day in the quarter ended December 31, 1997 from 312 barrels per day in the quarter ended December 31, 1996. Likewise gas production included in distributable income declined to 1807 mcf per day in the quarter ended December 31, 1997 from 2889 mcf per day in the quarter ended December 31, 1996. The following table compares the quarterly distributable income per unit for the past two years.
QUARTER 1997 1996 ------- ----- ----- March 31.................................................... $ .52 $ .31 June 30..................................................... .46 .40 September 30................................................ .44 .50 December 31................................................. .35 .49 ----- ----- Total for year.................................... $1.77 $1.70 ===== =====
Income from the Trust's 32.6% equity interest in Tidelands Royalty Trust B increased 68% in the current quarter as compared to the comparable period last year. Tidelands' income has increased as the result of new gas production on Galveston Block 303. The Trust's current fiscal year began on July 1, 1997. Since that date, operators have completed 17 new development wells on leases in which the Trust has an interest. Seven of the wells were not successful or were abandoned, while 10 were completed as either oil or gas producers. At the present time operators have 9 development wells in process and 8 locations for development wells to be drilled in the future. The Trust understands that approximately half of the wells are sidetracked out of existing wells that are no longer producing. 6 7 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 DECEMBER 31, 1997 Net income for the quarter ended December 31, 1997 amounted to $940,619, which was approximately 17% less than the $1,137,457 realized in the comparable period of 1996. The volume of oil sold decreased approximately 3% over the comparable period last year, and the average price per barrel of oil decreased to $18.75 per barrel from $28.98 a year ago. Natural gas volumes sold decreased approximately 2% in the current period from the comparable period last year. Natural gas volumes amounted to 241,932 mcf this period and were 248,056 mcf for the comparable period last year. The average price increased $.08 to $2.50 per mcf, from $2.42 a year ago. Income from the equity interest in Tidelands increased approximately 68% 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 December 31, 1997 and 1996 are presented in the following table:
1997 1996 -------- ------- OIL Barrels sold.............................................. 18,946 19,584 Average price............................................. $ 18.75 $ 28.98 NATURAL GAS Mcf sold.................................................. 241,932 248,056 Average price............................................. $ 2.50 $ 2.42
7 8 RESULTS OF OPERATIONS -- SIX MONTHS ENDED DECEMBER 31, 1997 Net income for the six months ended December 31, 1997 amounted to $1,652,964, which was approximately 20% less than the $2,065,106 realized in the comparable period of 1996. The volume of oil sold decreased approximately 14% over the comparable period last year, and the average price per barrel of oil (based on actual receipts) decreased to $18.21 per barrel from $24.17 a year ago. Natural gas volumes sold decreased approximately 7% in the current period from the comparable period last year. Natural gas volumes amounted to 424,991 mcf this period and were 457,024 mcf for the comparable period last year. The average price increased $.07 to $2.40 per mcf, from $2.33 a year ago. Income from the equity interest in Tidelands increased approximately 66% 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 six month periods ended December 31, 1997 and 1996 are presented in the following table:
1997 1996 -------- -------- OIL Barrels sold.............................................. 36,865 42,685 Average price............................................. $ 18.21 $ 24.17 NATURAL GAS Mcf sold.................................................. 424,991 457,024 Average price............................................. $ 2.40 $ 2.33
PART II. OTHER INFORMATION There were no events reportable under Part II of the Quarterly Report on Form 10-Q. 8 9 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 February 10, 1998 By: /s/ JANE J. SHEA ---------------------------------- Jane J. Shea Vice President February 10, 1998 /s/ R. RAY BELL ------------------------------------ Principal Accounting Officer 9 10 INDEX TO EXHIBITS
EXHIBIT NO. ITEM - ------- ---- 27 Financial Data Schedule
EX-27 2 FINANCIAL DATA SCHEDULE
5 6-MOS JUN-30-1998 JUL-01-1997 DEC-31-1997 2,206,850 0 308,736 0 0 2,730,608 1,117 0 3,022,455 900,182 0 0 0 8 2,122,265 3,022,455 1,433,372 1,731,504 0 0 72,840 0 0 1,658,664 5,700 1,652,964 0 0 0 1,652,964 0.83 0.83
-----END PRIVACY-ENHANCED MESSAGE-----