CONFORMED COPY

 

 

 

 

	QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

	OF THE SECURITIES EXCHANGE ACT OF 1934

	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 and Exchange Act of 1934

	For the period ended September 30, 1999

	or

	[ ] Transition Report Pursuant to Section 13 of 15(d) of 

	the Securities and Exchange Act of  1934

	For the transition period from  to 
 

	
	Commission file number 033-63635-04

	I.R.S. Employer Identification Number 55-0751154

	PDC 1996-D LIMITED PARTNERSHIP

	(A West Virginia Limited Partnership)

	103 East Main Street

	Bridgeport, WV 26330

	Telephone: (304) 842-6256

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 registrantwas required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes     XX       No    
 

	PDC 1996-D LIMITED PARTNERSHIP

	(A West Virginia Limited Partnership)

 

	INDEX
 

 

PART I - FINANCIAL INFORMATION	Page No.
	Item 1.  Financial Statements

		Balance Sheets - September 30, 1999 (unaudited)

		 and December 31, 1998		1

		Statements of Operations - 

		 Three and Nine Months Ended September 30, 

		 1999 and 1998 (unaudited)		2

		Statement of Partners' Equity -

		 Nine Months Ended September 30, 1999 (unaudited) 		3

		Statements of Cash Flows-

		 Nine Months Ended September 30, 1999 and 1998 (unaudited)		4

		Notes to Financial Statements		5

	Item 2.	Management's Discussion and Analysis of Financial 

		Condition and Results of Operations		6

PART II	OTHER INFORMATION

	Item 1.	Legal Proceedings		8

	Item 6.	Exhibits and Reports on Form 8-K		8

 

 

 

 

 

 

 

 

 

 

 

 

 

	PDC 1996-D LIMITED PARTNERSHIP

	(A West Virginia Limited Partnership)

	Balance Sheets

	September 30, 1999 and December 31, 1998

 

 

 

 

	Assets
			1999    	1998
			                                (Unaudited)

Current assets:

	Cash                          	$      838 	     $    6,712

	Accounts receivable - oil and gas revenues	  205,033 	   225,131
	  	Total current assets	205,871 	231,843

Oil and gas properties, successful 

 efforts method	 8,810,568 	 8,810,568

      Less accumulated depreciation, 

	     depletion, and amortization	2,808,533 	2,503,192
			6,002,035 	6,307,376
			$6,207,906 	$6,539,219
 

Current Liabilities and Partners' Equity
Current liabilities:

      Accrued expenses                     	$   18,303 	$   47,071	

		Total current liabilities	18,303 	47,071

 

Partners' Equity	       6,189,603 	6,492,148
			$6,207,906 	 $6,539,219
See accompanying notes to financial statements.

 

 

 

 

 

 

 

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	PDC 1996-D LIMITED PARTNERSHIP

	(A West Virginia Limited Partnership)

	Statements of Operations

	Three Months and Nine Months ended September 30, 1999 and 1998

	(Unaudited)

 

 

   	Three Months Ended 	Nine Months Ended   

 	    September 30,     	     September 30,    
				  1999   	  1998  	   1999  	  1998  
Revenues:

	Sales of oil and gas	$360,231	 $406,175	$  839,637	 $1,309,242

	Interest income	    746	  4,219	    3,278	    6,223
				360,977	410,394	  842,915	1,315,465
Expenses:

	Lifting costs	108,642	127,791	335,585	333,107

	Direct administrative cost	29	36	78	117

	Depreciation, depletion and

	 amortization	 93,703	221,974	  305,341	  765,440
				202,374	349,801	  641,004	1,098,664
		Net income 	$158,603	$ 60,593	$  201,911	$  216,801
		Net income per limited and

		 additional general partner unit	$    184	$     64	$      229	$      227
 

See accompanying notes to financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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	PDC 1996-D LIMITED PARTNERSHIP

	(A West Virginia Limited Partnership)

	Statement of Partners' Equity

	Nine months ended September 30, 1999

	(Unaudited)

 

 

 

 

		Limited and     		 

		additional      	 Managing        	

		general partners	 general partner 	  Total  
Balance, December 31, 1998	$5,193,718 	  $1,298,430 	  $6,492,148 

Net income		              175,572 	      26,339 	     201,911 

Distributions to partners	 (417,531)	  (86,925)	 (504,456)

	Balance, September 30, 1999	$4,951,759 	 $1,237,844 	 $6,189,603

 

See accompanying notes to financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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	PDC 1996-D LIMITED PARTNERSHIP

	(A West Virginia Limited Partnership)

	Statements of Cash Flows

	Nine months ended September 30, 1999 and 1998

	(Unaudited)

			1999  	 1998

Cash flows from operating activities:

	Net income	$  201,911 	$216,801 

	Adjustments to reconcile net 

	 income to net cash provided from

	 operating activities:

	    Depreciation, depletion,

	       and amortization	305,341 	765,440 

	    Changes in operating assets

	       and liabilities:

	    Decrease in accounts

		 receivable - oil and gas revenues	20,098 	129,041 

	    Decrease in accrued expenses	 (28,768)	  (13,447)

		Net cash provided from 

		  operating activities	498,582 	1,097,835 

Cash flows from financing activities:

	Distributions to partners	(504,456)	(1,095,397)

		Net cash used by 

		  financing activities	(504,456)	(1,095,397)

Net change in cash	(5,874)	2,438 

Cash at beginning of period	   6,712 	    2,756

Cash at end of period	$     838 	$    5,194

 

See accompanying notes to financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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	PDC 1996-D LIMITED PARTNERSHIP

	(A West Virginia Limited Partnership)

	Notes to Financial Statements 

	(Unaudited)

 

 

1.	Accounting Policies

	Reference is hereby made to the Partnership's Annual Report on Form 10-K for 1998, which contains a summary of significant accounting policies followed by the Partnership in the preparation of its financial statements.  Thesepolicies were also followed in preparing the quarterly report included herein. 

2.	Basis of Presentation
	The Management of the Partnership believes that all adjustments (consisting of only normal recurring accruals) necessary to a fair statement of the results of such periods have been made.  The results of operations for the ninemonths ended September 30, 1999 are not necessarily indicative of the results to be expected for the full year. 

3.	Oil and Gas Properties
	Oil and Gas Properties are reported on the succesful efforts method. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
	Liquidity and Capital Resources
		The Partnership was funded on December 31, 1996 with initial Limited and Additional General Partner contributions of $15,301,726 and the Managing General Partner, Petroleum Development Corporation (PDC), contributed $3,328,126in accordance with the Agreement.  Syndication and management fee costs of $1,989,224 were incurred leaving available capital of $16,640,628 for Partnership activities.

		The Partnership began exploration and development activities subsequent to the funding of the Partnership and completed well drilling activities by March 31, 1997.  Eighty-four wells have been drilled, of which seventy-nine havebeen completed as producing wells.

		Operations will be conducted with available funds and revenues generated from oil and gas activities.  No bank borrowings are anticipated.  

		The Partnership had net working capital at September 30, 1999 of $187,568.

		The Partnership's revenues from oil and gas will be affected by changes in prices.  As a result of changes in federal regulations, gas prices are highly dependent on the balance between supply and demand.  The Partnership's gassales prices are subject to increase and decrease based on various market sensitive indices.  

	Results of Operations
	Three Months Ended September 30, 1999 Compared with 1998
		Natural gas sales decreased approximately 11.3% during the third quarter of 1999 compared with the same period in 1998 due to lower sales volumes of natural gas offset in part by higher average sales prices.  While thePartnership experienced a modest net income, depreciation, depletion and amortization is a non-cash expense and therefore the Partnership distributed $202,355 to the partners during the third quarter of 1999.

	Nine Months Ended September 30, 1999 Compare with 1998
		Natural gas sales decreased approximately 35.9% during the first nine months of 1999 compared with the same period in 1998 primarily due to lower sales volumes of natural gas and lower average sales price.  While the Partnershipexperienced a modest net income, depreciation, depletion and amortization is a non-cash expense and therefore the Partnership distributed $504,456 to the partners during the first nine months of 1999.

	Year 2000 Issue
	State of Readiness
		The Year 2000 Issue is the risk that computer programs using two-digit data fields will fail to properly recognize the year 2000, with

 

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	the result being business interruption due to computer system failures by PDC's software or hardware or that of government entities, service providers and vendors.  PDC, who administers all aspects of the Partnership, has assessedthe extent of the Year 2000 Issues affecting PDC and the Partnership.  PDC believes that the new computer system including operating software installed during 1998 along with modifications made by PDC's computer technicians have addressed the dating systemf
		PDC has initiated communications with its significant suppliers and service providers to determine the extent to which PDC may be vulnerable to their failure to correct their own Year 2000 issues.  To the extent that responsesto Year 2000 readiness are unsatisfactory, PDC intends to take appropriate action, including identifying alternative suppliers and service providers who have demonstrated Year 2000 readiness.

	Cost of Readiness
		PDC does not currently expect to charge the Partnership for any portion of PDC's cost to become Year 2000 Complaint.

	Risks of Year 2000 Issues
		PDC presently believes that upon remediation of its business software and hardware applications, the Year 2000 Issue will not present a materially adverse risk to PDC's or the Partnership's future consolidated results ofoperations, liquidity, and capital resources.  However, if such remediation is not completed in a timely manner or the level of the timely compliance by key suppliers or service providers is not sufficient, the Year 2000 Issue could have a material impacton PDC's
	Contingency Plan
		PDC has a contingency plan, and will implement it on any system that remains non-complaint at December 31, 1999, if any.

	New Accounting Standard
		Statement of Accounting Standards No. 133, *Accounting for Derivative Instruments and Hedging Activities* (SFAS No. 133), was issued by the Financial Accounting Standards Board in June, 1998.  Statement 133 standardized theaccounting for derivative instruments, including certain derivative instruments embedded in other contracts.  SFAS No. 133 is effective for years beginning after June 15, 2000; however, early adoption is permitted.  On adoption, the provisions of SFAS No. 
 

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	CONFORMED COPY

	PART II - OTHER INFORMATION 

 

Item 1.	Legal Proceedings
		None.

Item 6.  Exhibits and Reports on Form 8-K
		(a) None.

		(b) No reports on Form 8-K have been filed during the quarter ended

			September 30, 1999.

 

 

	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.

 

				PDC 1996-D Limited Partnership 				

				        (Registrant)

 				By its Managing General Partner

				Petroleum Development Corporation

				         

 

 

Date:  November 8, 1999	  /s/ Steven R. Williams        
				      Steven R. Williams

				         President

 

Date:  November 8, 1999	  /s/ Dale G. Rettinger         
  				      Dale G. Rettinger

				   Executive Vice President

				       and Treasurer

	

 

 

 

 

 

 

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