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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
 FORM 10-Q þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2004 or o
    
    TRANSITION REPORT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to Commission File No. 333-85994-01 MEWBOURNE ENERGY PARTNERS 03-A, L.P. Delaware
    
    27-0055431(State or jurisdiction of
incorporation or organization)
    
    (I.R.S. Employer
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 
   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.     þ  Yes          o  No    1




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Mewbourne Energy Partners 03-A, L. P. INDEX Page No.Part I  Financial InformationItem 1. Financial StatementsBalance Sheets -
    
    
    3June 30, 2004 (Unaudited) and December 31, 2003Statements of Operations (Unaudited) -
    
    
    4For the three months ended June 30, 2004 and 2003 and
the six months ended June 30, 2004 and the period from
February 19, 2003 (date of inception) through
June 30, 2003Statements of Cash Flows (Unaudited) -
    
    
    5For the six months ended June 30, 2004 and
the period from February 19, 2003 (date of inception)
through June 30, 2003Statement of Changes In Partners Capital (Unaudited) -
    
    
    6For the six months ended June 30, 2004Notes to Financial Statements
    
    
    7Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    9Item 4. Disclosure Controls and Procedures
    
    
    11Part II-Other InformationItem 1. Legal Proceedings
    
    
    11Item 6. Exhibits and Reports on Form 8-K
    
    
    13Certification of CEO Pursuant to Section 302Certification of CFO Pursuant to Section 302Certification of CEO Pursuant to Section 906Certification of CFO Pursuant to Section 906
  2




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Mewbourne Energy Partners 03-A, L. P. 
 Part I  Financial Information 
 Item 1. Financial Statements 
 BALANCE SHEETS
June 30, 2004 and December 31, 2003 June 30,
    
    December 31,2004
    
    2003(Unaudited)ASSETSCash and cash equivalents
    
    $
    1,746,079
    
    
    $
    5,551,936Accounts receivable, affiliate
    
    
    3,467,617
    
    
    
    307,252Total current assets
    
    
    5,213,696
    
    
    
    5,859,188Prepaid well cost
    
    
    
    
    
    
    4,128,424Oil and gas properties at cost,
full cost method
    
    
    15,878,391
    
    
    
    8,661,943Less accumulated depreciation,
depletion and amortization
    
    
    (1,503,048
    )
    
    
    (256,734
    )14,375,343
    
    
    
    8,405,209Total assets
    
    $
    19,589,039
    
    
    $
    18,392,821LIABILITIES AND PARTNERS CAPITALAccounts payable, affiliate
    
    $
    1,378,074
    
    
    $
    328,517Asset retirement obligation plugging liability
    
    
    318,172
    
    
    
    145,139Partners capitalGeneral partners
    
    
    16,011,072
    
    
    
    16,034,671Limited partners
    
    
    1,881,721
    
    
    
    1,884,494Total partners capital
    
    
    17,892,793
    
    
    
    17,919,165Total liabilities and partners capital
    
    $
    19,589,039
    
    
    $
    18,392,821
 The accompanying notes are an integral
part of the financial statements. 3




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Mewbourne Energy Partners 03-A, L. P. 
 STATEMENTS OF OPERATIONS For the three months ended June 30, 2004 and 2003, and
the six months ended June 30, 2004 and the period from
February 19, 2003 (date of inception) through June 30, 2003
(Unaudited) Three Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2004
    
    2003
    
    2004
    
    2003Revenues and other income:Oil and gas sales
    
    $
    2,260,063
    
    
    $
    0
    
    
    $
    3,373,690
    
    
    $
    0Interest income
    
    
    6,833
    
    
    
    0
    
    
    
    16,067
    
    
    
    0Total revenues and other income
    
    
    2,266,896
    
    
    
    0
    
    
    
    3,389,757
    
    
    
    0Expenses:Lease operating expense
    
    
    90,056
    
    
    
    0
    
    
    
    146,382
    
    
    
    0Production taxes
    
    
    179,082
    
    
    
    0
    
    
    
    275,837
    
    
    
    0Administrative and general expense
    
    
    47,619
    
    
    
    0
    
    
    
    67,418
    
    
    
    0Depreciation, depletion and amortization
    
    
    768,476
    
    
    
    0
    
    
    
    1,246,314
    
    
    
    0Asset retirement obligation accretion
    
    
    5,260
    
    
    
    0
    
    
    
    10,178
    
    
    
    0Net income
    
    $
    1,176,403
    
    
    $
    0
    
    
    $
    1,643,628
    
    
    $
    0Allocation of net income:General partners
    
    $
    1,052,684
    
    
    $
    0
    
    
    $
    1,470,773
    
    
    $
    0Limited partners
    
    $
    123,719
    
    
    $
    0
    
    
    $
    172,855
    
    
    $
    0Basic and diluted net income per
limited and general partner interest
(18,000 interests outstanding)
    
    $
    65.36
    
    
    $
    0.00
    
    
    $
    91.31
    
    
    $
    0.00
 The accompanying notes are an integral
part of the financial statements. 4




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Mewbourne Energy Partners 03-A, L. P. 
 STATEMENTS OF CASH FLOWS For the six months ended June 30, 2004 and
the period from February 19, 2003 (date of inception)
through June 30, 2003
(Unaudited) 2004
    
    2003Cash flows from operating activities:Net income
    
    $
    1,643,628
    
    
    $
    Adjustment to reconcile net income to net cash
used in operating activities:Depreciation, depletion and amortization
    
    
    1,246,314
    
    
    
    Asset retirement obligation accretion
    
    
    10,178
    
    
    
    Changes in operating assets and liabilities:Accounts receivables, affiliate
    
    
    (3,160,365
    )
    
    
    Accounts payable, affiliate
    
    
    1,049,557
    
    
    
    Net cash provided by operating activities
    
    
    789,312
    
    
    
    Cash flows from investing activities:Purchase of oil and gas properties
    
    
    (2,925,169
    )
    
    
    Net cash used in investing activities
    
    
    (2,925,169
    )
    
    
    Cash flows from financing activities:Cash distributions to partners
    
    
    (1,670,000
    )
    
    
    Net cash used in financing activities
    
    
    (1,670,000
    )
    
    
    Net decrease in cash and cash equivalents
    
    
    (3,805,857
    )
    
    
    Cash and cash equivalents, beginning of period
    
    
    5,551,936
    
    
    
    Cash and cash equivalents, end of period
    
    $
    1,746,079
    
    
    $
    
 The accompanying notes are an integral
part of the financial statements. 5




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Mewbourne Energy Partners 03-A, L. P. 
 STATEMENT OF CHANGES IN PARTNERS CAPITAL
For the six months ended June 30, 2004
(Unaudited) General
    
    LimitedPartners
    
    Partners
    
    TotalBalance at December 31, 2003
    
    $
    16,034,671
    
    
    $
    1,884,494
    
    
    $
    17,919,165Cash distributions
    
    
    (1,494,372
    )
    
    
    (175,628
    )
    
    
    (1,670,000
    )Net income
    
    
    1,470,773
    
    
    
    172,855
    
    
    
    1,643,628Balance at June 30, 2004
    
    $
    16,011,072
    
    
    $
    1,881,721
    
    
    $
    17,892,793
 The accompanying notes are an integral
part of the financial statements. 6




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Mewbourne Energy Partners 03-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
2003, 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 six months ended June 30, 2004. The results of operations for
the six months ended June 30, 2004 are not necessarily indicative of the final
results expected for the full year.  2.
    
    Accounting for Oil and Gas Producing Activities Mewbourne Energy Partners 03-A, L.P., (the Partnership), a Delaware limited
partnership formed on February 19, 2003, is engaged primarily in oil and gas
development and production in Texas, Oklahoma, and New Mexico. The offering of
limited and general partnership interests began May 16, 2003 as a part of an
offering registered under the name Mewbourne Energy Partners 02-03 Drilling
Programs and concluded July 9, 2003, with total investor contributions of
$18,000,000. Since the partnership was not funded until July 9, 2003, no
business was conducted by the Partnership during the period February 19, 2003
(date of inception) to June 30, 2003, therefore, there are no items of income
or expense 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 June 30, 2004, approximately $1.0 million of capitalized
costs were excluded from amortization, while at December 31, 2003,
approximately $0.5 million of capitalized costs 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 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. Included in Accounts receivable, affiliate at June 30, 2004 are $1,913,000 of
billings for sale of equipment to Mewbourne Development Corporation. 7




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4.
    
    Asset Retirement Obligations In accordance with FAS 143, the Partnership has recognized an estimated
liability for future oil and gas well plugging and abandonment costs. The
estimated liability is based on historical experience and
estimated well lives. The liability is discounted using the credit-adjusted
risk-free rate. Revisions to the liability could occur due to changes in well
plugging and abandonment costs or well useful lives, or if federal or state
regulators enact new well restoration requirements. A reconciliation of the Partnerships liability for well plugging and
abandonment costs for the six months ended June 30, 2004 and the period from
February 19, 2003 (date of inception) through December 31, 2003, is as follows: 2004
    
    2003Balance, beginning of period
    
    $
    145,139
    
    
    $
    Liabilities incurred
    
    
    162,855
    
    
    
    136,420Accretion expense
    
    
    10,178
    
    
    
    8,719Balance, end of period
    
    $
    318,172
    
    
    $
    145,139
 8




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Item 2
    Managements Discussion and Analysis of Financial Condition and
Results of Operations Liquidity and Capital Resources Mewbourne Energy Partners
03-A, L.P. (the Partnership) was formed February 19,
2003. The offering of limited and general partnership interests began on May
16, 2003 and concluded on July 9, 2003, with investor partner contributions of
$18,000,000. The Partnership has acquired interests in oil and gas prospects for the purpose
of development drilling. At June 30, 2004, 53 wells had been drilled and were
productive and 7 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 $3,835,622 at June 30, 2004. During the six months ended June 30, 2004, the Partnership made cash
distributions to the investor partners in the amount of $1,670,000. The
Partnership expects that cash distributions will continue during 2004 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. Included in Accounts receivable, affiliate at June 30, 2004 are $1,913,000 of
billings for sale of equipment to Mewbourne Development Corporation. Results of Operations Revenues and other income during the three months ended June 30, 2004 totaled
$2,266,896, and consisted of oil and gas sales of $2,260,063 and interest
income of $6,833. Production volumes during the three month period ended June
30, 2004 were approximately 8,078 bbls of oil and 359,700 mcf of gas at
corresponding average realized prices of $36.87 per bbl of oil and $5.46 per
mcf of gas. Expenses totaling $1,090,493, consisting primarily of lease
operating expenses in the amount of $90,056, production taxes in the amount of
$179,082, and depreciation, depletion, and amortization in the amount of
$768,476 resulted in net income for the period of $1,176,403. Revenues and other income during the period from January 1, 2004 to June 30,
2004 totaled $3,389,757, and consisted of oil and gas sales of $3,373,390 and
interest income of $16,067. Production volumes during the period ended June
30, 2004 were approximately 11,630 bbls of oil and 555,066 mcf of gas at
corresponding average realized prices of $35.87 per bbl of oil and $5.33 per
mcf of gas. Expenses totaling $1,746,129, consisting primarily of lease
operating expenses in the amount of $146,382, production taxes in the amount of
$275,837, and depreciation, depletion, and amortization in the amount of
$1,246,314 resulted in net income for the period of $1,643,628. The
Partnerships oil and gas production should increase during the remainder of
2004 as additional wells are completed and oil and gas production is sold.
Interest income should decrease in 2004 as the available cash is utilized for
drilling and equipping of wells. The Partnership expects that drilling and
completion costs will decrease during 2004 and that production costs, operating
expenses and depletion provisions will increase. 9




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The Partnerships operations did not commence until the third quarter of 2003.
No corresponding activities, therefore, occurred during the period from
February 19, 2003 (date of inception) through June 30, 2003. Asset Retirement Obligation In accordance with FAS 143, the Partnership has recognized an estimated
liability for future oil and gas well plugging and abandonment costs (see Note
4). The estimated liability is based on historical experience and estimated
well lives. The liability is discounted using the credit-adjusted risk-free
rate. Revisions to the liability could occur due to changes in well plugging
and abandonment costs or well useful lives, or if federal or state regulators
enact new well restoration requirements. A reconciliation of the Partnerships liability for well plugging and
abandonment costs for the six months ended June 30, 2004 and the period from
February 19, 2003 (date of inception) through December 31, 2003, is as follows: 2004
    
    2003Balance, beginning of period
    
    $
    145,139
    
    
    $
    Liabilities incurred
    
    
    162,855
    
    
    
    136,420Accretion expense
    
    
    10,178
    
    
    
    8,719Balance, end of period
    
    $
    318,172
    
    
    $
    145,139
 10




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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 1. Faulconer Resources 2000, LP, et al. v. Mewbourne Oil Company; No.
CV-2004-56 JWF; In the Fifth Judicial District Court, Eddy County New Mexico Plaintiffs Faulconer filed suit February 13, 2004 for Declaratory Judgment,
Tortious Interference with Leasehold Interest, Temporary Restraining Order and
Preliminary Injunction, seeking direct and consequential damages for breach of
duties, attorneys fees and punitive damages for tortious interference with
malice. Plaintiffs sought an injunction to deny Mewbourne Oil Company (MOC)
the opportunity to drill its La Huerta 30 Fee Com. No. 1-Y well, in which
the Partnership owns a working interest. Plaintiffs claim that MOC had no right to cause the wellbore of the La Huerta
well to traverse the underground rock strata in the SE/4 of Section 19 and the
NE/4 of Section 30 on its way to a bottom hole location in the SE/4 of Section
30, all in Township 21 South, Range 27 East, Eddy County, New Mexico.
Plaintiffs own no interest in the SE/4 of Section 30, but do own oil and gas
leasehold interests in the SE/4 of Section 19 and the NE/4 of Section 30,
subject to a current Farmout Agreement with MOC as Farmee and Plaintiffs as
Farmor. Plaintiffs claim the right to exclude MOCs La Huerta wellbore from
proceeding through the underground rock strata where Plaintiffs own oil and gas
leasehold interests. Plaintiffs assert MOCs wellbore would constitute a
permanent trespass, causing Plaintiffs irreparable injury and sought to enjoin
the drilling of the well. Plaintiffs claim MOCs filing of an application to
drill the well with regulatory bodies constituted a deliberate and malicious
interference with the contractual relationships between Plaintiffs and their
lessors. MOC believes it had the right to drill its La Huerta well. The bottom hole
location for the well is within a residential area nearby the city of Carlsbad,
New Mexico. A surface location for the well within the SE/4 of Section 30 was
not feasible or appropriate due to the proximity of residences and the
inability to construct and use a natural gas pipeline to gather and transport
natural gas produced by the well. Thus, MOC applied to the New Mexico Oil
Conservation Division and received a permit to drill 11




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a deviated well from a
surface location within the SE/4 of Section 19, for which MOC had acquired a
surface use easement and agreement. The wellbore traversed the SE/4 of
Section 19 and the NE/4 of Section 30 before entering MOCs leasehold area in
the S/2 of Section 30. After MOC notified Plaintiffs of MOCs plans,
Plaintiffs asserted that MOC did not have authority to execute its plans
without Plaintiffs consent and sued MOC. Plaintiffs refused to consent to
MOCs wellbore path unless MOC were to give Plaintiffs a substantial working
interest in the La Huerta well. Plaintiffs presented their application for preliminary injunction to the court
on March 3, 2004. MOC vigorously contested Plaintiffs claims. MOC believes
that Plaintiffs have no right to block the drilling of the La Huerta well
unless Plaintiffs can show that their leasehold rights in the SE/4 of Section
19 and the NE/4 of Section 30 would be interfered with unreasonably by MOCs
well. MOC further believes Plaintiffs failed to prove such unreasonable
interference would occur as a result of the drilling of the La Huerta well. By
Order dated March 17, 2004, the court denied Plaintiffs application for
injunctive relief, finding that MOC would not be trespassing upon Plaintiffs
oil and
gas leasehold estates, that MOCs operations would not interfere with operation
of Plaintiffs oil and gas leasehold interests, either surface or subsurface,
and that Plaintiffs would not suffer irreparable damage in any respect.
Plaintiffs advised MOC that they would appeal the courts ruling, but have not
done so. MOC does not believe the courts order will be reversed on appeal.
Accordingly, MOC drilled and completed the La Huerta 30 No. 1-Y well as a
commercial gas well in keeping with the courts order and to prevent drainage
and protect its correlative rights. The drilling and completion of the well
proceeded without incident or injury to Plaintiffs existing wells in the area.
MOC understands that Plaintiffs do not intend to pursue their claims further
at this time, but Plaintiffs have not dismissed the case. 12




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Item 6.
    Exhibits and Reports on Form 8-K  (a)
    
    Exhibits filed herewith.  31.1
    
    Certification of CEO Pursuant to Section 302 of
Sarbanes-Oxley Act of 2002.31.2
    
    Certification of CFO Pursuant to Section 302 of
Sarbanes-Oxley Act of 2002.32.1
    
    Certification of CEO Pursuant to Section 906 of
Sarbanes-Oxley Act of 2002.32.2
    
    Certification of CFO Pursuant to Section 906 of
Sarbanes-Oxley Act of 2002.  (b)
    
    Reports on Form 8-K  none 13




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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 03-A, L.P.By:
    
    Mewbourne Development Corporation
Managing General PartnerDate: August 13, 2004
    
    By:
    
    /s/ Alan ClarkAlan Clark, Treasurer
 14




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INDEX TO EXHIBITS EXHIBITNUMBER
    
    DESCRIPTION31.1
    
    Certification of CEO Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.31.2
    
    Certification of CFO Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.32.1
    
    Certification of CEO Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.32.2
    
    Certification of CFO Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
 15