10-Q 1 d01211e10vq.txt FORM 10-Q 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 September 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 Part I -- Financial Information Page No. Item 1. Financial Statements Balance Sheets -- 3 September 30, 2002 and December 31, 2001 Statements of Income(loss) -- 4 For the three and nine months ended September 30, 2002 and 2001 Statements of Cash Flows - 5 For the nine months ended September 30, 2002 and 2001 Statement of Changes In Partners' Capital - 6 For the nine months ended September 30, 2002 Notes to Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Item 4. Disclosure Controls and Procedures 11 Part II -- Other Information Item 1. Legal Proceedings 11 Item 6. Exhibits and Reports on Form 8-K 11 2 MEWBOURNE ENERGY PARTNERS 00-A, L. P. Part I - Financial Information Item 1. Financial Statements BALANCE SHEETS September 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 (LOSS) For the three and nine months ended September 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 nine months ended September 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 nine months ended September 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 September 30, 2002 and December 31, 2001, 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. The Partnership participated in the drilling of 32 wells. 30 wells were productive and 2 wells were abandoned. Of the 30 productive wells, 27 were producing and 3 were plugged and abandoned at September 30, 2002. 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 $94,202 at September 30, 2002. During the nine months ended September 30, 2002, the Partnership made cash distributions to the investor partners in the amount of $1,155,995 as compared to $2,480,000 for the nine months ended September 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 September 30, 2002 as compared to the three months ended September 30, 2001: Oil and gas revenues. Oil and gas revenues during the three months ended September 30, 2002 totaled $340,617. Production volumes during the period were approximately 721 bbls of oil and 122,820 mcf of gas at a corresponding average realized price of $25.95 per bbl of oil and $2.62 per mcf of gas. Oil and gas revenues for the three months ended September 30, 2001 totaled $842,577. Production volumes during the period were approximately 1,927 bbls of oil and 323,797 mcf of gas at a corresponding average realized price of $24.19 per bbl of oil and $2.46 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 rate is beginning to stabilize, therefore, future oil and gas revenues should also begin to stabilize subject to more normal declines and price variations. Interest Income. Interest income was $1,044 during the three month period ended September 30, 2002 as compared to $6,236 during the three months ended September 30, 2001. The decrease is primarily due to the decrease in capital available for investment. 9 Lease operating expense and production taxes. Lease operating expense during the period ended September 30, 2002 totaled $53,136 compared to $74,581 at September 30, 2001. Production taxes during the period ended September 30, 2002 totaled $26,550 compared to $62,732 at September 30, 2001. The decrease is primarily due to the decline in production volumes. Depreciation, depletion and amortization and cost ceiling write-down. Depreciation, depletion and amortization was $152,751 for the three month period ended September 30, 2002 compared to $512,226 for the three month period ended September 30, 2001. The decrease is primarily due to the decline in production volumes. Cost ceiling write-down was $0 for the three month period ended September 30, 2002 compared to $2,294,594 for the three month period ended September 30, 2001. Administrative and general expense. Administrative and general expense during the period ended September 30, 2002 totaled $17,813 compared to $63,032 at September 30, 2001. The decrease is primarily due to the decline in oil and gas sales. Nine months ended September 30, 2002 as compared to the nine months ended September 30, 2001: Oil and gas revenues. Oil and gas revenues during the nine months ended September 30, 2002 totaled $1,220,469. Production volumes during the period were approximately 2,414 bbls of oil and 441,908 mcf of gas at a corresponding average realized price of $22.74 per bbl of oil and $2.64 per mcf of gas. Oil and gas revenues for the nine months ended September 30, 2001 totaled $4,038,067. Production volumes during the period were approximately 6,372 bbls of oil and 926,479 mcf of gas at a corresponding average realized price of $25.74 per bbl of oil and $4.18 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 rate is beginning to stabilize, therefore, future oil and gas revenues should also begin to stabilize subject to normal more 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 $4,558 during the nine month period ended September 30, 2002 as compared to $45,963 during the nine months ended September 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 nine month period ended September 30, 2002 totaled $277,140 compared to $190,694 at September 30, 2001. Lease operating expenses increased primarily due to workover operations on two wells. Production taxes during the nine month period ended September 30, 2002 totaled $92,667 compared to $306,717 at September 30, 2001. The decrease is primarily due to the decline in production volumes. Depreciation, depletion and amortization and cost ceiling write-down. Depreciation, depletion and amortization was $496,563 for the nine month period ended September 30, 2002 compared to $1,558,482 for the nine month period ended September 30, 2001. The decrease is primarily due to the decline in production volumes. Cost ceiling write-down was $0 for the nine month period ended September 30, 2002 compared to $2,294,594 for the nine month period ended September 30, 2001. Administrative and general expense. Administrative and general expense during the nine months ended September 30, 2002 totaled $57,549 compared to $113,919 at September 30, 2001. The decrease is primarily due to the decline in oil and gas sales. 10 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 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. Item 4. Disclosure Controls and Procedures Mewbourne Development Corporation ("MDC"), the Managing General Partner of the Partnership, maintains a system of controls and procedures designed to provide reasonable assurance as to the reliability of the financial statements and other disclosures included in this report, as well as to safeguard assets from unauthorized use or disposition. Within 90 days prior to the filing of this report, MDC's Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the design and operation of our disclosure controls and procedures with the assistance and participation of other members of management. Based upon that evaluation, MDC's Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective for gathering, analyzing and disclosing the information the Partnership is required to disclose in the reports it files under the Securities Exchange Act of 1934 within the time periods specified in the SEC's rules and forms. There have been no significant changes in MDC's internal controls or in other factors which could significantly affect internal controls subsequent to the date MDC carried out its evaluation. 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: November 12, 2002 By: /s/ Alan Clark --------------------------- Alan Clark, Treasurer 12 CERTIFICATIONS I, Curtis W. Mewbourne, Chief Executive Officer of Mewbourne Development Corporation, Managing General Partner of Mewbourne Energy Partners 00-A, L.P. (the "Registrant"), certify that: 1. I have reviewed this quarterly report on Form 10-Q of Mewbourne Energy Partners, 00-A, L.P. 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d- 14) for the registrant and we have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b. evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c. presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a. all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report 13 financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 12, 2002. /s/ Curtis W. Mewbourne ------------------------------------------ Curtis W. Mewbourne Chief Executive Officer Mewbourne Development Corporation, Managing General Partner of the Registrant 14 CERTIFICATIONS I, J. Roe Buckley, Chief Financial Officer of Mewbourne Development Corporation, Managing General Partner of Mewbourne Energy Partners 00-A, L.P. (the "Registrant"), certify that: 1. I have reviewed this quarterly report on Form 10-Q of Mewbourne Energy Partners, 00-A, L.P. 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b. evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c. presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a. all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and 15 b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 12, 2002. /s/ J. Roe Buckley ------------------------------------------ J. Roe Buckley Chief Financial Officer Mewbourne Development Corporation, Managing General Partner of the Registrant 16

MEWBOURNE ENERGY PARTNERS 00-A LP 10-Q