Exhibit 99.1
ATP Announces Record Earnings and Operating Results For First Quarter 2008
HOUSTON--(BUSINESS WIRE)--ATP Oil & Gas Corporation (NASDAQ:ATPG) today announced first quarter 2008 results which include record production, record revenues and record earnings.
Highlights include:
- 3.6 MMBoe (21.6 Bcfe) of production, a 36% increase over first quarter 2007;
- $226.0 million of oil and gas revenue, a 56% increase over first quarter 2007;
- $46.8 million of net income, a 71% increase over first quarter 2007;
- Net income of $1.29 per diluted share.
Oil and gas production increased 36% to 3.6 MMBoe (21.6 Bcfe) for the first quarter of 2008, compared to 2.6 MMBoe (15.9 Bcfe) for the first quarter of 2007. Oil production was 1.6 MMBbls and natural gas production was 11.8 Bcf for the first quarter of 2008, compared to 1.0 MMBbls and 9.8 Bcfe for the first quarter of 2007.
Revenue from oil and gas production totaled $226.0 million for the first quarter of 2008, compared to $144.7 million for the first quarter of 2007. Revenue from oil and condensate sales was $119.9 million and revenue from and natural gas sales was $106.1 million for the first quarter of 2008. Revenue from oil and condensate sales was $54.7 million and revenue from natural gas sales was $89.9 million for the first quarter of 2007.
ATP recorded net income of $46.8 million or $1.31 per basic and $1.29 per diluted share for the first quarter of 2008, compared to $27.4 million or $0.92 per basic and $0.89 per diluted share for the first quarter of 2007.
Net income for the first quarter of 2008 was impacted by one item research analysts typically exclude from their published estimates, a loss on abandonment of $0.4 million. Accordingly, net income before this item, a non-GAAP measure, in the first quarter of 2008 was $47.2 million or $1.32 per basic and $1.30 per diluted share. For the same metric in the first quarter of 2007, ATP recorded $27.5 million or $0.92 per basic and $0.90 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 the first quarter of 2008 and the comparable period of 2007.
| | Three Months Ended |
| | March 31, |
| | 2008 | | 2007 |
| Selected Operating Statistics | | | | |
| | | | |
| Production | | | | |
| Natural gas (MMcf) | | | 11,844 | | | 9,825 |
| Gulf of Mexico | | | 6,465 | | | 6,138 |
| North Sea | | | 5,379 | | | 3,687 |
| | | | | | |
| Oil and condensate (MBbls) | | | 1,622 | | | 1,012 |
| Gulf of Mexico | | | 1,610 | | | 1,005 |
| North Sea | | | 12 | | | 7 |
| | | | | | |
| Natural gas equivalents (MMcfe) | | | 21,574 | | | 15,896 |
| Gulf of Mexico | | | 16,122 | | | 12,170 |
| North Sea | | | 5,451 | | | 3,727 |
| | | | |
Average Prices (includes effect of cash flow hedges) | | | | |
| Natural gas (per Mcf) | | $ | 8.96 | | $ | 9.15 |
| Gulf of Mexico | | | 9.28 | | | 8.47 |
| North Sea | | | 8.57 | | | 10.29 |
| Oil and condensate (per Bbl) | | | 73.96 | | | 54.09 |
| Natural gas, oil and condensate (per Mcfe) | | | 10.48 | | | 9.11 |
| | | | |
| Other Expenses, per Mcfe | | | | |
| Lease operating expense (per Mcfe) | | $ | 1.14 | | $ | 1.33 |
| Gulf of Mexico | | | 1.09 | | | 1.27 |
| North Sea | | | 1.28 | | | 1.49 |
| Depreciation, depletion and amortization (DD&A) | | | 4.14 | | | 3.36 |
| Gulf of Mexico | | | 3.48 | | | 3.11 |
| North Sea | | | 6.09 | | | 4.18 |
| | | | |
| Selected Financial Data | | | | |
| (In Thousands, Except Per Share Data) | | | | |
| | | | |
Oil and gas revenues, including settled derivatives(1) | | $ | 226,037 | | $ | 144,675 |
| Net income | | | 46,845 | | | 27,434 |
| | | | |
| Net income per share: | | | | |
| Basic | | $ | 1.31 | | $ | 0.92 |
| Diluted | | $ | 1.29 | | $ | 0.89 |
| | | | |
| Weighted average shares outstanding: | | | | |
| Basic | | | 35,824 | | | 29,969 |
| Diluted | | | 36,247 | | | 30,702 |
| | | | |
| (1) See oil and gas revenue reconciliation toward the end of this press release. |
1st Quarter 2008 Conference Call
ATP Oil & Gas Corporation (NASDAQ: ATPG) will host a live conference call on Thursday, May 8 at 9:30 am central time to discuss the company’s record first quarter results, followed by a Q&A session.
| Date: Thursday, May 8, 2008 |
| Time: 10:30 am ET; 9:30 am CT; 8:30 am MT and 7:30 am PT |
ATP invites interested persons to listen to the live 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 (800) 533-7619. A digital replay of the conference call will be available at (888) 203-1112, ID number 6226994, for a period of 24 hours beginning at 12:00 pm CT, and the webcast will be archived for 30 business days at www.atpog.com.
About ATP Oil & Gas Corporation
ATP Oil & Gas is focused on development and production of oil and natural gas 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) |
| | | | | | | |
| | | | March 31, | | December 31, |
| | | | 2008 | | 2007 |
| Assets | | | | |
| | | | | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 104,572 | | | $ | 199,449 | |
| Restricted cash | | | 13,966 | | | | 13,981 | |
| Accounts receivable (net of allowance of $382 and $382) | | | 122,237 | | | | 127,891 | |
| Deferred tax asset | | | 54,887 | | | | 84,110 | |
| Derivative asset | | | 444 | | | | 1,286 | |
| Other current assets | | | 20,541 | | | | 15,934 | |
| | Total current assets | | | 316,647 | | | | 442,651 | |
| | | | | | |
| Oil and gas properties: | | | | |
| Oil and gas properties (using the successful efforts method of accounting) | | | 2,748,975 | | | | 2,556,938 | |
| Less: Accumulated depletion, impairment and amortization | | | (817,488 | ) | | | (726,358 | ) |
| | Oil and gas properties, net | | | 1,931,487 | | | | 1,830,580 | |
| | | | | | |
| Furniture and fixtures, net | | | 778 | | | | 860 | |
| Derivative asset | | | 491 | | | | 673 | |
| Deferred financing costs, net | | | 17,569 | | | | 19,873 | |
| Other assets, net | | | 12,604 | | | | 12,496 | |
| | Total assets | | $ | 2,279,576 | | | $ | 2,307,133 | |
| | | | | | |
| Liabilities and Shareholders' Equity | | | | |
| | | | | | |
| Current liabilities: | | | | |
| Accounts payable and accruals | | $ | 208,673 | | | $ | 270,557 | |
| Current maturities of long-term debt | | | 12,165 | | | | 12,165 | |
| Asset retirement obligation | | | 26,417 | | | | 28,194 | |
| Derivative liability | | | 37,621 | | | | 11,335 | |
| Other current liabilities | | | 20,475 | | | | 23,512 | |
| | Total current liabilities | | | 305,351 | | | | 345,763 | |
| | | | | | |
| Long-term debt | | | 1,390,588 | | | | 1,391,846 | |
| Asset retirement obligation | | | 163,331 | | | | 158,577 | |
| Deferred tax liability | | | 58,213 | | | | 85,256 | |
| Derivative liability | | | 11,956 | | | | 13,242 | |
| Other liabilities | | | 2,581 | | | | 2,583 | |
| | Total liabilities | | | 1,932,020 | | | | 1,997,267 | |
| | | | | | |
| Shareholders' equity: | | | | |
| Preferred stock: $0.001 par value | | | - | | | | - | |
| Common stock: $0.001 par value | | | 36 | | | | 36 | |
| Additional paid-in capital | | | 391,199 | | | | 388,250 | |
| Accumulated deficit | | | (45,216 | ) | | | (92,061 | ) |
| Accumulated other comprehensive income | | | 2,448 | | | | 14,552 | |
| Treasury stock, at cost | | | (911 | ) | | | (911 | ) |
| | Total shareholders' equity | | | 347,556 | | | | 309,866 | |
| | Total liabilities and shareholders' equity | | $ | 2,279,576 | | | $ | 2,307,133 | |
| CONSOLIDATED INCOME STATEMENTS |
| (In Thousands, Except Per Share Amounts) |
| | | | |
| | Three Months Ended |
| | March 31, |
| | 2008 | | 2007 |
| | | | |
| Oil and gas revenues | | $ | 226,037 | | | $ | 144,749 | |
| Other revenues | | | 897 | | | | 1,598 | |
| Total revenues | | | 226,934 | | | | 146,347 | |
| | | | |
| Costs, operating expenses and other: | | | | |
| Lease operating | | | 24,618 | | | | 21,069 | |
| Exploration | | | 141 | | | | 731 | |
| General and administrative | | | 9,236 | | | | 8,768 | |
| Depreciation, depletion and amortization | | | 89,399 | | | | 53,400 | |
| Accretion of asset retirement obligation | | | 4,300 | | | | 2,960 | |
| Loss on abandonment | | | 377 | | | | 77 | |
| Other, net | | | (27 | ) | | | - | |
| Total costs, operating expenses and other | | | 128,044 | | | | 87,005 | |
| Income from operations | | | 98,890 | | | | 59,342 | |
| | | | |
| Other income (expense): | | | | |
| Interest income | | | 1,228 | | | | 2,068 | |
| Interest expense, net | | | (28,127 | ) | | | (26,799 | ) |
| Total other expense | | | (26,899 | ) | | | (24,731 | ) |
| | | | |
| Income before income taxes | | | 71,991 | | | | 34,611 | |
| Income tax (expense) benefit: | | | | |
| Current | | | (12,436 | ) | | | (56 | ) |
| Deferred | | | (12,710 | ) | | | (7,121 | ) |
| Total | | | (25,146 | ) | | | (7,177 | ) |
| | | | |
| Net income | | $ | 46,845 | | | $ | 27,434 | |
| | | | |
| Net income per share: | | | | |
| Basic | | $ | 1.31 | | | $ | 0.92 | |
| Diluted | | $ | 1.29 | | | $ | 0.89 | |
| | | | |
| Weighted average shares outstanding: | | | | |
| Basic | | | 35,824 | | | | 29,969 | |
| Diluted | | | 36,247 | | | | 30,702 | |
| CONSOLIDATED CASH FLOW DATA |
| (In Thousands) |
| | | | | | |
| | | Three Months Ended |
| | | March 31, |
| | | 2008 | | 2007 |
| | | | | |
| Cash flows from operating activities: | | | | |
| Net income | | $ | 46,845 | | | $ | 27,434 | |
| Adjustments to operating activities | | | 115,179 | | | | 68,722 | |
| Changes in assets and liabilities | | | (35,375 | ) | | | (11,973 | ) |
| Net cash provided by operating activities | | | 126,649 | | | | 84,183 | |
| | | | | |
| Cash flows from investing activities: | | | | |
| Additions to oil and gas properties | | | (215,021 | ) | | | (169,485 | ) |
| Additions to furniture and fixtures | | | (47 | ) | | | (154 | ) |
| Increase in restricted cash | | | - | | | | (14 | ) |
| Net cash used in investing activities | | | (215,068 | ) | | | (169,653 | ) |
| | | | | |
| Cash flows from financing activities: | | | | |
| Proceeds from long-term debt | | | - | | | | 375,000 | |
| Principal payments of long-term debt | | | (3,042 | ) | | | (178,184 | ) |
| Net profits interest payments | | | (3,583 | ) | | | - | |
| Deferred financing costs | | | - | | | | (8,445 | ) |
| Principal payments of capital lease | | | - | | | | (23,950 | ) |
| Exercise of stock options | | | 28 | | | | 230 | |
| Net cash (used) provided by financing activities | | | (6,597 | ) | | | 164,651 | |
| | | | | |
| Effect of exchange rate changes on cash | | | 139 | | | | (24 | ) |
| | | | | |
| Net increase (decrease) in cash and cash equivalents | | | (94,877 | ) | | $ | 79,157 | |
| Cash and cash equivalents, beginning of period | | | 199,449 | | | | 182,592 | |
| | | | | |
| Cash and cash equivalents, end of period | | $ | 104,572 | | | $ | 261,749 | |
| Reconciliation of Non-GAAP Measures |
| (In Thousands, except per share data) |
| | | |
| Three Months Ended |
| March 31, |
| 2008 | | 2007 |
| | | |
| Net income | $ | 46,845 | | $ | 27,434 |
| Loss on abandonment | | 377 | | | 77 |
| Adjusted net income | $ | 47,222 | | $ | 27,511 |
| | | |
| Adjusted net income per share: | | | |
| Basic | $ | 1.32 | | $ | 0.92 |
| Diluted | $ | 1.30 | | $ | 0.90 |
| | | |
| Weighted average shares outstanding: | | | |
| Basic | | 35,824 | | | 29,969 |
| Diluted | | 36,247 | | | 30,702 |
Revenue Reconciliation |
| (In thousands) |
| | | | |
| | Three Months Ended |
| | March 31, |
| | 2008 | | 2007 |
| | | | |
Oil and gas revenues, including the effects of settled derivatives | | $ | 226,037 | | $ | 144,675 |
| Hedging ineffectiveness | | | - | | | 74 |
| Revenues from oil and gas production per income statements | | $ | 226,037 | | $ | 144,749 |
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
