Exhibit 99.1
ATP Announces Annual Financials and 2007 Record Results
HOUSTON--(BUSINESS WIRE)--ATP Oil & Gas Corporation (NASDAQ:ATPG) today announced annual and fourth quarter 2007 results which include record revenues, record production and record reserves.
Highlights include:
-- $599.3 million of 2007 oil and gas revenue, a 45% increase over previous year, of which 48% was derived from oil and condensate; |
-- Annual net income available to common shareholders of $48.6 million; |
-- Annual production increase of 26%; |
-- Pre-tax PV-10 of $3.5 billion of proved reserves, with an estimated 63% of future revenues from oil and condensate sales (see non-GAAP reconciliation toward the end of this press release); |
-- 119.3 MMBoe (715.6 Bcfe) of proved reserves, a 12% increase over previous year; |
-- 41.3 MMBoe (247.8 Bcfe) of proved developed reserves, a 16% increase over previous year; |
-- 6.7 MMBoe (40.4 Bcfe) net upward proved reserve revisions |
Results of Operations
Oil and gas production increased 26% to 10.7 MMBoe (64.0 Bcfe) for 2007, compared to 8.5 MMBoe (50.9 Bcfe) for 2006. Oil and gas production increased 31% to 3.4 MMBoe (20.2 Bcfe) in the fourth quarter 2007, compared to 2.5 MMBoe (15.4 Bcfe) for the fourth quarter 2006.
Revenue from oil and gas production totaled $599.3 million for 2007, compared to $414.2 million for 2006. Revenue from oil and gas production totaled $205.7 million for the fourth quarter 2007, compared to $127.2 million for the fourth quarter 2006.
ATP recorded net income available to common shareholders of $48.6 million or $1.58 per basic and $1.55 per diluted share for 2007, compared to a net loss available to common shareholders of $39.3 million or $1.33 per basic and $1.33 per diluted share for 2006. ATP recorded net income available to common shareholders of $12.7 million or $0.39 per basic and $0.38 per diluted share for the fourth quarter 2007, compared to a net loss available to common shareholders of $37.0 million or $1.24 per basic and $1.24 per diluted share for the fourth quarter 2006.
Net income available to common shareholders for the fourth quarter 2007 was impacted by three non-recurring items research analysts typically exclude from their published estimates, including impairment of oil and gas properties of $24.5 million, loss on abandonment of $18.3 million and revenues from insurance of $7.0 million related to loss of production income insurance claims realized. Accordingly, net income before these three nonrecurring items, a non-GAAP measure, in the fourth quarter 2007 was $48.5 million or $1.47 per basic and $1.45 per diluted share. For the same metric in 2007, ATP recorded $93.0 million or $3.02 per basic and $2.97 per diluted share. A non-GAAP reconciliation is provided near the end of this press release.
ATP's selected operating statistics and financial information, included within this press release, contain additional information on the company’s activities for annual and fourth quarter 2007 and the comparable periods in 2006.
Three Months Ended | Year Ended | |||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||
Selected Operating Statistics | ||||||||||||||
Production | ||||||||||||||
Natural gas (MMcf) | 10,742 | 8,844 | 37,013 | 31,224 | ||||||||||
Gulf of Mexico | 6,478 | 5,031 | 24,926 | 19,195 | ||||||||||
North Sea | 4,264 | 3,813 | 12,087 | 12,029 | ||||||||||
Oil and condensate (MBbls) | 1,572 | 1,091 | 4,498 | 3,273 | ||||||||||
Gulf of Mexico | 1,564 | 1,086 | 4,475 | 3,250 | ||||||||||
North Sea | 7 | 5 | 23 | 23 | ||||||||||
Natural gas equivalents (MMcfe) | 20,172 | 15,392 | 64,002 | 50,860 | ||||||||||
Gulf of Mexico | 15,864 | 11,545 | 51,776 | 38,696 | ||||||||||
North Sea | 4,308 | 3,846 | 12,225 | 12,164 | ||||||||||
Average Prices (includes effect of cash flow hedges) | ||||||||||||||
Natural gas (per Mcf) | $ | 8.65 | $ | 8.29 | $ | 8.39 | $ | 7.57 | ||||||
Gulf of Mexico | 8.51 | 7.90 | 8.30 | 7.59 | ||||||||||
North Sea | 8.87 | 8.80 | 8.57 | 7.35 | ||||||||||
Oil and condensate (per Bbl) | 71.74 | 49.28 | 64.20 | 54.25 | ||||||||||
Natural gas, oil and condensate (per Mcfe) | 10.20 | 8.26 | 9.36 | 8.14 | ||||||||||
Other Expenses, per Mcfe | ||||||||||||||
Lease operating expense (per Mcfe) | $ | 1.46 | $ | 1.15 | $ | 1.43 | $ | 1.42 | ||||||
Gulf of Mexico | 1.44 | 0.97 | 1.41 | 1.42 | ||||||||||
North Sea | 1.52 | 1.69 | 1.55 | 1.45 | ||||||||||
Depreciation, depletion and amortization (DD&A) | 4.35 | 3.52 | 3.87 | 3.34 | ||||||||||
Gulf of Mexico | 3.87 | 3.35 | 3.57 | 3.27 | ||||||||||
North Sea | 6.12 | 4.01 | 5.12 | 3.53 | ||||||||||
Selected Financial Data | ||||||||||||||
(In Thousands, Except Per Share Data) | ||||||||||||||
Oil and gas revenues, including settled derivatives (1) | $ | 205,684 | $ | 127,075 | $ | 599,250 | $ | 414,072 | ||||||
Net income (loss) | 12,740 | (20,147 | ) | 48,620 | 6,877 | |||||||||
Preferred dividends | - | (16,885 | ) | - | (46,225 | ) | ||||||||
Net income (loss) available to common shareholders | 12,740 | (37,032 | ) | 48,620 | (39,348 | ) | ||||||||
Net income (loss) per common share | ||||||||||||||
Basic | $ | 0.39 | $ | (1.24 | ) | $ | 1.58 | $ | (1.33 | ) | ||||
Diluted | $ | 0.38 | $ | (1.24 | ) | $ | 1.55 | $ | (1.33 | ) | ||||
Weighted average number of common shares outstanding | ||||||||||||||
Basic | 32,967 | 29,841 | 30,793 | 29,693 | ||||||||||
Diluted | 33,472 | 30,911 | 31,301 | 30,402 | ||||||||||
| ||||||||||||||
(1) See oil and gas revenue reconciliation toward the end of this press release. |
4th Quarter 2007 Conference Call
ATP management will host a conference call on Monday, March 3 at 10:00 am central time to discuss the company’s year-end results followed by a Q&A session.
4th Quarter and Year-End 2007 Conference Call
Date: Monday, March 3, 2008
Time: 11:00 am ET; 10:00 am CT; 9:00 am MT and 8:00 am PT
ATP invites interested persons to listen to the Internet webcast on the company’s website, www.atpog.com, linking through the Investor Info page and the Conference Calls link. Phone participants should dial (877) 723-9511. A digital replay of the conference call will be available at (888) 203-1112, ID number 4514680, for a period of 24 hours beginning at 1:00 pm CT, and the webcast will be archived for 30 business days at www.atpog.com.
About ATP Oil & Gas
ATP Oil & Gas is focused on development and production of natural gas and oil in the Gulf of Mexico and the North Sea. The company trades publicly as ATPG on the NASDAQ Global Select Market. For more information about ATP Oil & Gas Corporation, visit www.atpog.com.
Forward-looking Statements
Certain statements included in this news release are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. ATP cautions that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those ATP expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as ATP’s ability to access them, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business. More information about the risks and uncertainties relating to ATP’s forward-looking statements are found in the company’s SEC filings.
CONSOLIDATED BALANCE SHEETS | ||||||||||
(In Thousands) | ||||||||||
December 31, | ||||||||||
2007 | 2006 | |||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 199,449 | $ | 182,592 | ||||||
Restricted cash | 13,981 | 27,497 | ||||||||
Accounts receivable (net of allowance of $382 and $409) | 127,891 | 105,030 | ||||||||
Deferred tax asset | 84,110 | 1,113 | ||||||||
Derivative asset | 1,286 | 1,170 | ||||||||
Other current assets | 15,934 | 9,931 | ||||||||
Total current assets | 442,651 | 327,333 | ||||||||
Oil and gas properties: | ||||||||||
Oil and gas properties (using the successful efforts method of accounting) | 2,556,938 | 1,539,352 | ||||||||
Less: Accumulated depletion, impairment and amortization | (726,358 | ) | (443,707 | ) | ||||||
Oil and gas properties, net | 1,830,580 | 1,095,645 | ||||||||
Furniture and fixtures, net | 860 | 1,079 | ||||||||
Derivative asset | 673 | - | ||||||||
Deferred financing costs, net | 19,873 | 13,272 | ||||||||
Other assets, net | 12,496 | 9,729 | ||||||||
Total assets | $ | 2,307,133 | $ | 1,447,058 | ||||||
Liabilities and Shareholders' Equity | ||||||||||
Current liabilities: | ||||||||||
Accounts payable and accruals | $ | 270,557 | $ | 195,846 | ||||||
Current maturities of long-term debt | 12,165 | 8,987 | ||||||||
Current maturities of long-term capital lease | - | 23,699 | ||||||||
Asset retirement obligation | 28,194 | 21,297 | ||||||||
Derivative liability | 11,335 | - | ||||||||
Other current liabilities | 23,512 | - | ||||||||
Total current liabilities | 345,763 | 249,829 | ||||||||
Long-term debt | 1,391,846 | 1,062,454 | ||||||||
Asset retirement obligation | 158,577 | 87,092 | ||||||||
Deferred tax liability | 85,256 | 11,765 | ||||||||
Derivative liability | 13,242 | - | ||||||||
Other liabilities | 2,583 | - | ||||||||
Total liabilities | 1,997,267 | 1,411,140 | ||||||||
Shareholders' equity: | ||||||||||
Preferred stock: $0.001 par value | - | - | ||||||||
Common stock: $0.001 par value | 36 | 30 | ||||||||
Additional paid-in capital | 388,250 | 151,467 | ||||||||
Accumulated deficit | (92,061 | ) | (140,681 | ) | ||||||
Accumulated other comprehensive income | 14,552 | 26,013 | ||||||||
Treasury stock, at cost | (911 | ) | (911 | ) | ||||||
Total shareholders' equity | 309,866 | 35,918 | ||||||||
Total liabilities and shareholders' equity | $ | 2,307,133 | $ | 1,447,058 |
CONSOLIDATED INCOME STATEMENTS | ||||||||||||||||
(In Thousands, Except Per Share Amounts) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Oil and gas production | $ | 205,684 | $ | 127,230 | $ | 599,324 | $ | 414,182 | ||||||||
Other revenues | 7,013 | 5,639 | 8,611 | 5,639 | ||||||||||||
Total revenues | 212,697 | 132,869 | 607,935 | 419,821 | ||||||||||||
Costs, operating expenses and other: | ||||||||||||||||
Lease operating | 29,367 | 17,646 | 91,693 | 72,446 | ||||||||||||
Exploration | 621 | 63 | 13,756 | 2,231 | ||||||||||||
General and administrative | 9,068 | 9,813 | 32,018 | 32,976 | ||||||||||||
Depreciation, depletion and amortization | 87,749 | 54,159 | 247,378 | 169,704 | ||||||||||||
Impairment of oil and gas properties | 24,544 | 7,760 | 34,342 | 19,520 | ||||||||||||
Accretion of asset retirement obligation | 3,098 | 2,603 | 12,117 | 8,076 | ||||||||||||
Loss on abandonment | 18,270 | 5,748 | 18,649 | 9,603 | ||||||||||||
Other, net | (1,637 | ) | (7 | ) | (3,706 | ) | (7 | ) | ||||||||
Total costs, operating expenses and other | 171,080 | 97,785 | 446,247 | 314,549 | ||||||||||||
Income from operations | 41,617 | 35,084 | 161,688 | 105,272 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 1,656 | 1,375 | 7,603 | 4,532 | ||||||||||||
Interest expense | (33,761 | ) | (19,969 | ) | (121,302 | ) | (58,018 | ) | ||||||||
Loss on extinguishment of debt | - | (28,115 | ) | - | (28,115 | ) | ||||||||||
Total other expense | (32,105 | ) | (46,709 | ) | (113,699 | ) | (81,601 | ) | ||||||||
Income (loss) before income taxes | 9,512 | (11,625 | ) | 47,989 | 23,671 | |||||||||||
Income tax benefit (expense): | ||||||||||||||||
Current | (353 | ) | 1,508 | 1,179 | (2,528 | ) | ||||||||||
Deferred | 3,581 | (10,030 | ) | (548 | ) | (14,266 | ) | |||||||||
Total | 3,228 | (8,522 | ) | 631 | (16,794 | ) | ||||||||||
Net income | 12,740 | (20,147 | ) | 48,620 | 6,877 | |||||||||||
Preferred dividends | - | (16,885 | ) | - | (46,225 | ) | ||||||||||
Net income (loss) available to common shareholders | $ | 12,740 | $ | (37,032 | ) | $ | 48,620 | $ | (39,348 | ) | ||||||
Net income (loss) per common share: | ||||||||||||||||
Basic | $ | 0.39 | $ | (1.24 | ) | $ | 1.58 | $ | (1.33 | ) | ||||||
Diluted | $ | 0.38 | $ | (1.24 | ) | $ | 1.55 | $ | (1.33 | ) | ||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 32,967 | 29,841 | 30,793 | 29,693 | ||||||||||||
Diluted | 33,472 | 30,911 | 31,301 | 30,402 |
CONSOLIDATED CASH FLOW DATA | ||||||||||
(In Thousands) | ||||||||||
Year Ended | ||||||||||
December 31, | ||||||||||
2007 | 2006 | |||||||||
Cash flows from operating activities: | ||||||||||
Net income | $ | 48,620 | $ | 6,877 | ||||||
Adjustments to operating activities | 335,237 | 259,444 | ||||||||
Changes in assets and liabilities | (54,469 | ) | (7,807 | ) | ||||||
Net cash provided by operating activities | 329,388 | 258,514 | ||||||||
Cash flows from investing activities: | ||||||||||
Additions to oil and gas properties | (849,491 | ) | (577,012 | ) | ||||||
Proceeds from disposition of assets | 650 | - | ||||||||
Additions to furniture and fixtures | (348 | ) | (381 | ) | ||||||
(Increase) decrease in restricted cash | 14,096 | (13,290 | ) | |||||||
Net cash used in investing activities | (835,093 | ) | (590,683 | ) | ||||||
Cash flows from financing activities: | ||||||||||
Proceeds from long-term debt | 574,500 | 728,500 | ||||||||
Principal payments of long-term debt | (244,287 | ) | (4,435 | ) | ||||||
Deferred financing costs | (14,148 | ) | (24,551 | ) | ||||||
Issuance of preferred stock, net of related costs | - | 145,463 | ||||||||
Issuance of common stock, net of related costs | 226,706 | - | ||||||||
Redemption of preferred stock | - | (381,083 | ) | |||||||
Principal payments of capital lease | (23,950 | ) | (20,869 | ) | ||||||
Exercise of stock options | 2,974 | 4,966 | ||||||||
Net cash provided by financing activities | 521,795 | 447,991 | ||||||||
Effect of exchange rate changes on cash | 767 | 1,204 | ||||||||
Net increase in cash and cash equivalents | 16,857 | 117,026 | ||||||||
Cash and cash equivalents, beginning of period | 182,592 | 65,566 | ||||||||
Cash and cash equivalents, end of period | $ | 199,449 | $ | 182,592 |
Reconciliation of PV-10 to Standardized Measure | |||
(In thousands) | |||
Net present value of future net cash flows, before income taxes, or PV-10 | $ | 3,497,262 | |
Future income taxes, discounted at 10% | (857,295) | ||
Standardized measure of discounted future net cash flows | $ | 2,639,967 | |
Note: PV-10 is not a substitute for the standardized measure. Our PV-10 measure and the standardized measure of discounted future net cash flows do not purport to present the fair value of our natural gas and oil reserves. We include it herein because we believe analysts typically use this measure to compare companies in the oil and gas industry. |
Pro Forma Net Income Before Significant Nonrecurring Items | |||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2007 | 2006 | 2007 | 2006 | ||||||||||||||
Net income (loss) available to common shareholders | $ | 12,740 | $ | (37,032 | ) | $ | 48,620 | $ | (39,348 | ) | |||||||
Insurance recoveries | (7,013 | ) | (5,639 | ) | (8,611 | ) | (5,639 | ) | |||||||||
Impairment of oil and gas properties | 24,544 | 7,760 | 34,342 | 19,520 | |||||||||||||
Loss on debt extinguishment | - | 28,115 | - | 28,115 | |||||||||||||
Loss on abandonment | 18,270 | 5,748 | 18,649 | 9,603 | |||||||||||||
Pro forma net income (loss) available to common shareholders before significant non-recurring items | $ | 48,541 | $ | (1,048 | ) | $ | 93,000 | $ | 12,251 | ||||||||
Pro forma net income (loss) per common share: | |||||||||||||||||
Basic | $ | 1.47 | $ | (0.04 | ) | $ | 3.02 | $ | 0.41 | ||||||||
Diluted | $ | 1.45 | $ | (0.03 | ) | $ | 2.97 | $ | 0.40 | ||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||
Basic | 32,967 | 29,841 | 30,793 | 29,693 | |||||||||||||
Diluted | 33,472 | 30,911 | 31,301 | 30,402 |
Revenue Reconcilation | ||||||||||||
(In thousands) | ||||||||||||
Three Months Ended | Year Ended | |||||||||||
December 31, | December 31, | |||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||
Oil and gas revenues, including the effects of settled derivatives | $ | 205,684 | $ | 127,075 | $ | 599,250 | $ | 414,072 | ||||
Hedging ineffectiveness | - | 155 | 74 | 110 | ||||||||
Revenues from oil and gas production per income statements | $ | 205,684 | $ | 127,230 | $ | 599,324 | $ | 414,182 |
CONTACT:
ATP Oil & Gas Corporation, Houston
T. Paul Bulmahn, 713-622-3311
Chairman and President
or
Albert L. Reese Jr., 713-622-3311
Chief Financial Officer
www.atpog.com