10-Q 1 d87060e10-q.txt FORM 10-Q FOR QUARTER ENDED MARCH 31, 2001 1 UNITED STATES 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 March 31, 2001 or [ ] TRANSITION REPORT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to -------- -------- Commission File No. 333-76911 MEWBOURNE ENERGY PARTNERS 00-A, L.P. Delaware 75-2866283 ------------------------- ---------------------- (State or jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 3901 South Broadway, Tyler, Texas 75701 ---------------------------------------- ---------------------- (Address of principal executive offices) (Zip Code) Registrant's Telephone Number, including area code:(903) 561-2900 Not Applicable -------------- (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. [X] Yes [ ] No 2 MEWBOURNE ENERGY PARTNERS 00-A, L. P. INDEX

2 3 MEWBOURNE ENERGY PARTNERS 00-A, L. P. Part I - Financial Information Item 1. Financial Statements BALANCE SHEETS March 31, 2001 and December 31, 2000 (Unaudited)

Theaccompanying notes are an integral part of the financial statements. 3 4 MEWBOURNE ENERGY PARTNERS 00-A, L. P. STATEMENTS OF INCOME For the three months ended March 31,2001 and the period from February 15, 2000 (date of inception) through March 31, 2000 (Unaudited)

The accompanying notes are an integral part of the financial statements. 4 5 MEWBOURNE ENERGY PARTNERS 00-A, L. P. STATEMENT OF CASH FLOWS For the three months ended March 31, 2001 and the period from February 15, 2000 (date of inception) through March 31, 2000 (Unaudited)

The accompanying notes are an integral part of the financial statements. 5 6 MEWBOURNE ENERGY PARTNERS 00-A, L. P. STATEMENT OF CHANGES IN PARTNERS' CAPITAL For the three months ended March 31,2001 (Unaudited)

The accompanying notes are an integral part of the financial statements. 6 7 MEWBOURNE ENERGY PARTNERS 00-A, L.P. NOTES TO FINANCIAL STATEMENTS (Unaudited) 1. Accounting Policies Reference is hereby made to the Partnership's Annual Report on Form 10-K for 2000, which contains a summary of significant accounting policies followed by the partnership in the preparation of its financial statements. These policies are also followed in preparing the quarterly report included herein. In the opinion of management, the accompanying unaudited financial statements contain all adjustments of a normal recurring nature necessary to present fairly our financial position as of March 31, 2001 and the results of operations, cash flows and partners' capital for the three months ended March 31, 2001. The results of operations for the three months ended March 31, 2001 are not necessarily indicative of the final results expected for the full year. 2. Accounting for Oil and Gas Producing Activities Mewbourne Energy Partners 00-A, L.P., (the partnership), a Delaware limited partnership formed on February 15, 2000, is engaged primarily in oil and gas development and production in Texas, Oklahoma, New Mexico and Kansas. The offering of limited and general partnership interests began May 5, 2000 as a part of an offering registered under the name Mewbourne Energy Partners 99-00 Drilling Programs and concluded October 31, 2000, with total investor contributions of $10,000,000. Since the partnership was not funded until October 31, 2000, no business was conducted by the partnership during the period February 15, 2000 (date of inception) though March 31, 2000, therefore, there are no items of income or expense, or cash flow for that reporting period. The partnership follows the full-cost method of accounting for its oil and gas activities. Under the full-cost method, all productive and nonproductive costs incurred in the acquisition, exploration and development of oil and gas properties are capitalized. Depreciation, depletion and amortization of oil and gas properties subject to amortization is computed on the units-of-production method based on the proved reserves underlying the oil and gas properties. At March 31, 2001, all capitalized costs were subject to amortization, while at December 31, 2000, approximately $5.2 million of capitalized cost were excluded from amortization. Gains and losses on the sale or other disposition of properties are not recognized unless such adjustments would significantly alter the relationship between capitalized costs and the proved oil and gas reserves. Capitalized costs are subject to an annual ceiling test that limits such costs to the aggregate of the present value of future net cash flows of proved reserves and the lower of cost or fair value of unproved properties. 7 8 Item 2. Managements's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Mewbourne Energy Partners 00-A, L.P. (the "Partnership")was formed February 15, 2000. The offering of limited and general partnership interests began on May 5, 2000 and concluded on October 31, 2000, with investor partner contributions of $10,000,000. The Partnership has acquired interests in oil and gas prospects for the purpose of development drilling. At March 31, 2001, 26 wells had been drilled and were productive and 2 wells were drilled and abandonded. Operations will be conducted with available funds and revenues generated from oil and gas activities. No bank borrowing is anticipated. The Partnership had net working capital at March 31, 2001 of $1,568,784. The sale of crude oil and natural gas produced by the Partnership will be affected by a number of factors which are beyond the Partnership's control. These factors include the price of crude oil and natural gas, the fluctuating supply of and demand for these products, competitive fuels, refining, transportation, extensive federal and state regulations governing the production and sale of crude oil and natural gas, and other competitive conditions. It is impossible to predict with any certainty the future effect of these factors on the Partnership. Results of Operations Revenues during the period from January 1, 2001 through March 31, 2001 totaled $1,151,810, and consisted of oil and gas sales in the amount of $1,124,618 and interest income in the amount of $27,192. Production volumes during the period ended March 31, 2001 amounted to approximately 2,239 bbls of oil and 160,544 mcf of gas at corresponding average realized prices of $27.89 per bbl of oil and $6.62 per mcf of gas. Expenses totaling $468,930, consisting primarily of lease operating and production taxes in the amount of $137,397 and depreciation, depletion and amortization in the amount of $326,512 resulted in a net income for the period of $682,880. The Partnership's oil and gas production should increase during the remainder of 2001 as additional wells are completed and oil and gas production is sold. Two additional wells are expected to be drilled by October 2001 which should complete the Partnership's drilling activities. Interest income should decrease in 2001 as the remaining wells are drilled and the available cash is utilized for the equipping of such wells. The Partnership expects that drilling and completion costs will decrease during 2001 and that production cost and depletion provisions will increase. 8 9 During the period January 1, 2001 through March 31, 2001, the Partnership made cash distributions to the investor partners in the amount of $150,000. The Partnership expects that cash distributions will increase during 2001 as additional oil and gas revenues are received. The Partnership's operations did not commence until the forth quarter of 2000. No corresponding activities, therefore, occurred during the period February 15, 2000 (date of inception) through March 31, 2000. Part II - Other Information Item 1. Legal Proceedings None. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits - none (b) Reports on Form 8-K - none 9 10 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Partnership has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized. MEWBOURNE ENERGY PARTNERS 00-A, L.P. By: Mewbourne Development Corporation Managing General Partner Date: May 10, 2001 By: /s/ J. Roe Buckley ------------------------------------------ J. Roe Buckley, Vice President and Chief Financial Officer 10

MEWBOURNE ENERGY PARTNERS 00-A LP 10-Q