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FORM 10-Q.--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
Exchange Act of 1934
For the period ended March 31, 1996
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from _______________ to _____________________
Commission File Number: 1-100
CROFF OIL COMPANY
(Exact name of registrant as specified in its charter)
Utah 87-0233535
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1433 Seventeenth Street, Suite 220, Denver, CO 80202
(Address of principal executive offices) (Zip Code)
(303) 297-3383
(Registrant's telephone number, including area code)
_______________________________________________________________________
(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 has required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
X Yes ______ No
APPLICABLE ONLY TO ISSUERS INVOLVED
IN BANKRUPTCY PROCEEDINGS DURING
THE PRECEDING FIVE YEARS:
Indicate by check mark whether the Registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of
securities under a plan confirmed by a court.
___X____ Yes ______ No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date: 516,515 shares, one
class only.
INDEX
INDEX TO INFORMATION INCLUDED IN THE QUARTERLY REPORT (FORM 10-Q)
TO THE SECURITIES AND EXCHANGE COMMISSION FOR THE THREE MONTHS
ENDED MARCH 31, 1996 (UNAUDITED).
_________________________________________________________________
PART I. FINANCIAL INFORMATION Page Number
Balance Sheets as of December 31, 1995
and March 31, 1996 3
Statements of Operations for
the Three Months Ended March 31, 1996 and 1995 5
Statements of Cash Flows
for the Three Months
Ended March 31, 1996 and 1995 6
Notes to Financial Statements 7
Managements' Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II. OTHER INFORMATION
Reports on Form 8-K 9
Signatures. 10
_________________________________________________________________
The condensed financial statements included herein are for the
Registrant, Croff Oil Company. The financial statements for the
three months ended March 31, 1996 and 1995 are unaudited; however,
they reflect all adjustments which, in the opinion of management,
are necessary to present fairly the results of the interim periods.
All adjustments necessary to a fair representation of the financial
statements are of a normal recurring nature.
PART I: FINANCIAL INFORMATION
CROFF OIL COMPANY
BALANCE SHEET
Dec 31, March 31,
1995 1996
CURRENT ASSETS:
Cash and Cash Equivalents: $ 37,933 $ 10,321
Marketable equity securities 15,500 8,125
Accounts receivable:
Oil and gas purchasers 28,425 28,425
Refundable income taxes 4,290 5,289
Note receivable, secured by interests
in oil and gas properties, including
accrued interest 4,800 3,300
Total current assets $ 90,948 $ 55,460
PROPERTY AND EQUIPMENT, AT COST:
Oil & gas properties, successful
efforts method:
Proved properties 457,874 457,874
Unproved properties 110,051 110,051
567,925 567,925
Less accumulated depletion and
depreciation (249,154) (256,654)
Net Property Value 318,771 311,271
Furniture, fixtures & equipment 0 0
Less accumulated depreciation 0 0
-- --
Net property and equipment 318,771 311,271
Coal investment 95,299 95,299
Total Assets $ 505,018 $ 462,030
============= ==============
PART I: FINANCIAL INFORMATION
CROFF OIL COMPANY
BALANCE SHEET
Dec 31, March 31,
1995 1996
Current Liabilities:
Accounts payable $ 10,829 $ 9,830
Accrued liabilities 3,662 3,644
Bank note to finance coal
investment 50,000 0
-------------- --------------
Total current liabilities 64,491 13,474
Stockholders' equity :
Common stock, $.10 par value
20,000,000 share authorized
579,143 shares issued 57,914 57,914
Capital in excess of par value 909,983 909,983
Accumulated deficit (444,724) (436,695)
-------------- --------------
523,173 531,202
Less treasury stock at cost,
52,788 shares in 1994 and 62,628
in 1995 (82,646) (82,646)
Total stockholders' equity 440,527 448,556
Total Liabilities & Stockholder's Equity $ 505,018 $ 462,030
============= ==============
CROFF OIL COMPANY
Statement of Operations
For the Three Months Ended March 31
1995 1996
Revenue:
Oil and gas sales.............. $ 45,077 $ 47,485
Other income (loss)............ 3,720 988
Total revenue 48,797 48,473
Costs and expenses:
Lease operating expense........ $ 10,531 $ 10,629
Depreciation and depletion..... 7,500 7,500
General and administrative..... 19,137 19,152
Rent Expense - Related Party... 2,940 2,940
40,108 40,444
Net income (loss) $ 8,689 $ 8,029
========= =========
Earnings (Loss) Per Share $ .02 $ .02
========= =========
CROFF OIL COMPANY
Statement of Cash Flows
For the Three
Months Ended
March 31,
1995 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 8,689 $ 8,029
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and depletion 7,500 7,500
Change in assets and liabilities:
Decrease in accounts receivable 6,457 500
Decrease/(increase) in other assets (2,000) 0
Increase/(decrease) in accounts payable 2,847 (605)
Increase/(decrease) in accrued liabilities 2,047 (17)
Gain-sale of Marketable Equity Securities (660) (637)
Total adjustments 16,191 6,741
Net cash provided by
operating activities: 24,880 14,770
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of marketable equity security 8,410 7,618
Coal investment (100,000) 0
(91,590) 7,618
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of Treasury Stock 0 0
Note payable 50,000 (50,000)
--------- ---------
50,000 (50,000)
Increase (decrease) in cash: (16,710) (27,613)
Cash at beginning of period: $ 19,385 37,933
======== ========
Cash at end of period: $ 2,675 $ 10,321
======== =========
CROFF OIL COMPANY
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 1996
1. BASIS OF PREPARATION.
The condensed financial statements for the three month periods
ended March 31, 1996 and 1995 in this report have been prepared by
the Company without audit pursuant to the rules and regulations of
the Securities and Exchange Commission and reflect, in the opinion
of management, all adjustments necessary to present fairly the
results of the operations of the interim periods presented herein.
Certain reclassifications have been made to the prior years'
financial statements to conform to the 1996 presentation. Certain
information in footnote disclosures normally included in financial
statements prepared in accordance with generally accepted
accounting principles have been omitted pursuant to such rules and
regulations, although the Company believes the disclosures
presented herein are adequate to make the information presented not
misleading. It is suggested that these condensed financial
statements be read in conjunction with the financial statements and
notes thereto included in the Company's Annual Report on Form 10-K
for the year ended December 31, 1995, which report has been filed
with the Securities and Exchange Commission, and is available from
the Company.
MANAGEMENTS' DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS.
Three-Month Period Ended March 31, 1996,
as Compared to the Three-Month Period Ended March 31, 1995.
OIL AND GAS OPERATIONS
Oil and gas income, primarily from royalties, for the three
months ended March 31, 1996 was $47,485 compared to $45,077 for the
quarter ending March 31, 1995. This increase was due primarily to
higher oil prices, and production nearly constant with 1995.
Production costs, which include lease operating expenses and
all production related taxes, for the three months ended March 31,
1996, were constant when compared to the production costs incurred
during the same time period of the prior year, $10,706 during 1996
and $10,531 during 1995. The constant level of cost was due to
lack of significant workovers and the high amount of revenue from
royalty interests, for which costs are taxes only.
OTHER INCOME
During the three month period ended March 31, 1996, the
Company had other income of $988 from interest, capital gains,
dividends, and lease payments. This was a decrease from $3,720 in
the same period in 1995. The decrease was due to gains on
investments and the receipt of a lease bonus in 1995.
GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses for the quarter ending
March 31, 1996, were $19,152 plus rent expense of $2,940 for a
total of $22,092 compared to $19,137 plus $2,940 for a total of
$22,077 in the same period in 1995. The Company expects general
and administrative costs to remain stable this year.
FINANCIAL CONDITION
As of March 31, 1996, the Company's current assets exceeded
current liabilities by $41,986. As of December 31, 1995, the
Company's current assets exceeded current liabilities by $26,457.
This increase was due to the payoff of a $50,000 note in February,
1996. The Company intends to accumulate cash during this calendar
year.
The Company expects to continue to operate at a positive cash
flow for the calendar year as oil prices have risen this year. The
Company intends to resume purchasing oil and gas properties, out of
current assets.
PART II. OTHER INFORMATION
ITEM 6(b). REPORTS ON FORM 8-K.
The registrant has filed no reports on Form 8-K for the period
ending March 31, 1996.
S I G N A T U R E S
Pursuant to the requirements of the Securities Exchange Act of
1934, Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
REGISTRANT: CROFF OIL COMPANY
By_________________________________
Gerald L. Jensen
Chief Executive Officer and
Chief Financial Officer
By_________________________________
M. Ward Smith
Chief Accounting Officer
Date:__________MAY 15___, 1996