10-Q 1 d98927e10vq.txt FORM 10-Q FOR QUARTER ENDED JUNE 30, 2002 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 June 30, 2002 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 1 MEWBOURNE ENERGY PARTNERS 00-A, L. P. INDEX

2 MEWBOURNE ENERGY PARTNERS 00-A, L. P. Part I - Financial Information Item 1. Financial Statements BALANCE SHEETS June 30, 2002 and December 31, 2001

The accompanying notes are an integral part of the financial statements. 3 MEWBOURNE ENERGY PARTNERS 00-A, L. P. STATEMENTS OF INCOME For the three months end June 30, 2002 and 2001, and the six months ended June 30, 2002 and 2001 (Unaudited)

The accompanying notes are an integral part of the financial statements. 4 MEWBOURNE ENERGY PARTNERS 00-A, L. P. STATEMENTS OF CASH FLOWS For the six months ended June 30, 2002 and 2001 (Unaudited)

The accompanying notes are an integral part of the financial statements. 5 MEWBOURNE ENERGY PARTNERS 00-A, L. P. STATEMENT OF CHANGES IN PARTNERS' CAPITAL For the six months ended June 30,2002 (Unaudited)

The accompanying notes are an integral part of the financial statements. 6 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 2001, 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, results of operations, cash flows and partners' capital for the periods presented. The results of operations for the interim periods 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. 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 June 30, 2002, substantially all capitalized costs were subject to 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 a periodic 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. 3. Comprehensive Income Total comprehensive income (loss) equals net income (loss) during each of the periods presented herein. 4. Recently Issued Accounting Standards In August 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 143 (FAS 143), Accounting for Asset Retirement Obligations. This statement changes financial accounting and reporting for obligations associated with the 7 retirement and disposal of long-lived assets and the associated asset retirement costs and is effective for the Partnership beginning January 1, 2003. The Partnership is currently evaluating the effect of adopting FAS 143. In August 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 144 (FAS 144), Accounting for the Impairment or Disposal of Long-Lived Assets. This statement changes financial accounting and reporting for the impairment or disposal of long-lived assets and was effective for the Partnership beginning January 1, 2002. The adoption of FAS 144 did not have a material impact on the Partnership. In June 2002, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 146 (FAS 146), Accounting for Costs Associated with Exit or Disposal Activities. This statement addresses financial accounting and reporting for costs associated with exit or disposal activities and is effective for the Partnership beginning January 1, 2003. The Partnership is currently evaluating the effect of adopting FAS 146. 8 Item 2. Management'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 June 30, 2002, 28 wells had been drilled and were productive and 3 wells were drilled and abandoned. 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 of $647,578 at June 30, 2002. During the six months ended June 30, 2002, the Partnership made cash distributions to the investor partners in the amount of $795,995 as compared to $1,175,000 for the six months ended June 30, 2001. The Partnership expects that cash distributions will continue during the remainder of 2002 as additional oil and gas revenues are received. 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 Three months ended June 30, 2002 as compared to the three months ended June 30, 2001. Oil and gas revenues. Oil and gas revenues during the three months ended June 30, 2002 totaled $545,929. Production volumes during the period were approximately 732 bbls of oil and 164,891 mcf of gas at a corresponding average realized price of $25.86 per bbl of oil and $3.20 per mcf of gas. Oil and gas revenues for the three months ended June 30, 2001 totaled $2,070,872. Production Volumes during the period were approximately 2,206 bbls of oil and 442,138 mcf of gas at a corresponding average realized price of $24.91 per bbl of oil and $4.56 per mcf of gas. Oil and Gas revenues declined primarily due to one well located in western Oklahoma. The well began producing at a high rate of production and rapidly declined. The production has now stabilized therefore, future oil and gas revenues should remain stable subject to normal declines and price variations. A decrease in the price of gas also contributed significantly to the decline in oil and gas revenues. Interest Income. Interest income was $1,306 during the three month period ended June 30, 2002 as compared to $12,535 during the three months ended June 30, 2001. The decrease is primarily due to the decrease in capital available for investment. Lease operating expense and production taxes. Lease operating expense during the period ended June 30, 2002 totaled $123,504 compared to $67,143 at June 30, 2001. Lease operating expenses increased primarily due to workover operations on two wells, Production taxes during the period ended June 30, 2002 totaled $41,616 compared to $155,558 at June 30, 2001. The decrease is primarily due to the decline in production volumes. 9 Depreciation, depletion and amortization. Depreciation, depletion and amortization was $180,360 for the three month period ended June 30, 2002 compared to $719,744 for the three month period ended June 30, 2001. The decrease is primarily due to the decline in production volumes. Six months ended June 30, 2002 as compared to the six months ended June 30, 2001. Oil and gas revenues. Oil and gas revenues during the six months ended June 30, 2002 totaled $879,852. Production volumes during the period were approximately 1,693 bbls of oil and 319,088 mcf of gas at a corresponding average realized price of $21.37 per bbl of oil and $2.64 per mcf of gas. Oil and gas revenues for the six months ended June 30, 2001 totaled $3,195,490. Production Volumes during the period were approximately 4,445 bbls of oil and 602,682 mcf of gas at a corresponding average realized price of $26.41 per bbl of oil and $5.11 per mcf of gas. Oil and Gas revenues declined primarily due to one well located in western Oklahoma. The well began producing at a high rate of production and rapidly declined. The production has now stabilized therefore, future oil and gas revenues should remain stable subject to normal declines and price variations. A decrease in the price of gas also contributed significantly to the decline in oil and gas revenues. Interest Income. Interest income was $3,514 during the six month period ended June 30, 2002 as compared to $39,727 during the six months ended June 30, 2001. The decrease is primarily due to the decrease in capital available for investment. Lease operating expense and production taxes. Lease operating expense during the six month period ended June 30, 2002 totaled $224,004 compared to $116,113 at June 30, 2001. Lease operating expenses increased primarily due to workover operations on two wells. Production taxes during the six month period ended June 30, 2002 totaled $66,117 compared to $243,985 at June 30, 2001. The decrease is primarily due to the decline in production volumes. Depreciation, depletion and amortization. Depreciation, depletion and amortization was $343,812 for the six month period ended June 30, 2002 compared to $1,046,256 for the six month period ended June 30, 2001. The decrease is primarily due to the decline in production volumes. Recently Issued Accounting Standards In August 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 143 (FAS 143), Accounting for Asset Retirement Obligations. This statement changes financial accounting and reporting for obligations associated with the retirement and disposal of long-lived assets and the associated asset retirement costs and is effective for the Partnership beginning January 1, 2003. The Partnership is currently evaluating the effect of adopting FAS 143. In August 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 144 (FAS 144), Accounting for the Impairment or Disposal of Long-Lived Assets. This statement changes financial accounting and reporting for the impairment or disposal of long-lived assets and is effective for the Partnership beginning January 1, 2002. The adoption of FAS 144 will not have a material impact on the Partnership. In June 2002, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 146 (FAS 146), Accounting for Costs Associated with Exit or Disposal Activities. This statement addresses financial accounting and reporting for costs associated with exit or disposal activities and is effective for the Partnership 10 beginning January 1, 2003. The Partnership is currently evaluating the effect of adopting FAS 146. 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 11 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: August 12, 2002 By: /s/ Alan Clark ------------------------------------- Alan Clark, Treasurer 12

MEWBOURNE ENERGY PARTNERS 00-A LP 10-Q