Exhibit 99.1
ATP Reports Second Quarter Results and
Operational Update
HOUSTON--(BUSINESS WIRE)--Aug. 8, 2007--ATP Oil & Gas Corporation
(NASDAQ:ATPG) today announced second quarter 2007 results and an
operational update:
-- Achieved quarterly production of 160.3 MMcfe per day resulting
in revenue of $132.2 million;
-- Achieved net income of $6.1 million or $0.20 per basic and
diluted share;
-- Drilled and completed Wenlock W1 well in the U.K. sector North
Sea with a company record 3,900' horizontal completion and
flowed at the limit of the test equipment;
-- Placed two wells on production at Ship Shoal 351 in the Gulf
of Mexico and expanded the development plan to include two
additional extension wells;
-- Successful well test of the Mississippi Canyon 711 #8 well
which flowed at the limit of the test equipment;
-- Increasing throughput capacity of Gomez Hub to approximately
200 MMcfe per day, gross;
-- Finalizing the tie-in of the fourth and fifth wells at our
Gomez Hub.
Results of Operations
During the second quarter of 2007, production increased 8% to 14.6
Bcfe (160.3 MMcfe per day) from the comparative period in 2006 while
revenues from production increased 21% to $132.2 million during this
same period. Price realizations reflect an overall 12% increase in our
average sales price per Mcfe from $8.05 for the second quarter 2006 to
$9.05 for the second quarter 2007. For the first half of 2007 compared
to the same period in 2006, production increased 57% to 30.5 Bcfe,
revenue increased 79% to $276.6 million, and price realizations have
risen 15% to $9.07 per Mcfe.
Lease operating expenses ("LOE") for the second quarter of 2007
decreased to $20.1 million ($1.38 per Mcfe) from $21.3 million ($1.57
per Mcfe) in the second quarter of 2006. The 2006 period included
costs related to hurricane repairs performed on certain of our oil and
gas properties in the Gulf of Mexico. The 2007 period included
increased costs primarily attributable to the production gains noted
above, higher insurance premiums and costs associated with our
increased ownership in the Canyon Express Pipeline. For the first six
months of 2007 compared to the same period in 2006, LOE per Mcfe has
decreased from $1.64 to $1.35.
General and administrative expense ("G&A") decreased 11% to $6.6
million for the second quarter of 2007 compared to $7.4 million for
the same period of 2006, primarily due to noncash compensation,
related charges and professional fees, partially offset by higher
general office costs. Included in G&A is noncash stock-based
compensation expense of $1.7 million and $3.3 million for the three
months ended June 30, 2007 and 2006, respectively.
ATP recorded a net tax benefit of $1.1 million during the quarter
ended June 30, 2007 related to our foreign jurisdictions, based on the
expected 2007 effective tax rate of each jurisdiction. The rates were
determined based on the projected results of operations for the year,
the valuation allowance released and permanent differences affecting
the overall tax rate in each foreign jurisdiction. In the comparable
quarter of 2006, we recorded a tax provision of $3.3 million related
to our foreign jurisdictions. In the U.S., the tax provision recorded
on our book income for both periods was offset by a partial release of
the valuation allowance.
For the second quarter 2007, ATP reported net income available to
common shareholders of $6.1 million, or $0.20 per basic and diluted
share, as compared with a net income available to common shareholders
of $6.4 million, or $0.21 per basic and diluted share for the second
quarter 2006.
Second quarter net income available to common shareholders was
impacted by a previously announced exploration expense of $10.6
million. In addition, ATP recorded impairment expense of $5.8 million.
Research analysts typically exclude the nonrecurring impairment charge
from their published estimates. Accordingly, after adjusting for
impairment expense, ATP had net income available to common
shareholders of $11.9 million or $0.40 and $0.39 per basic and diluted
share. A reconciliation of non-GAAP net income for the quarter can be
found near the end of this press release.
The company's selected operating statistics and financial
information included within this press release contains additional
information on activities for the second quarter and the comparable
2006 period.
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2007 2006 2007 2006
------------------ ------------------
Selected Operating Statistics
Production
Natural gas (MMcf) 8,426 8,621 18,250 13,654
Gulf of Mexico 6,937 5,142 13,074 9,568
North Sea 1,489 3,479 5,176 4,086
Oil and condensate (MBbls) 1,027 816 2,039 966
Gulf of Mexico 1,024 808 2,029 957
North Sea 3 8 10 9
Natural gas equivalents
(MMcfe) 14,590 13,518 30,486 19,452
Gulf of Mexico 13,082 9,989 25,251 15,315
North Sea 1,508 3,529 5,235 4,137
Average Prices (includes effect
of cash flow hedges)
Natural gas (per Mcf) $ 8.24 $ 7.06 $ 8.74 $ 7.28
Gulf of Mexico 8.47 7.48 8.47 7.44
North Sea 7.19 6.44 9.40 6.89
Oil and condensate (per Bbl) 60.80 58.85 57.48 56.64
Natural gas, oil and
condensate (per Mcfe) 9.05 8.05 9.07 7.92
Other Expenses, per Mcfe
Lease operating expense (per
Mcfe) $ 1.38 $ 1.57 $ 1.35 $ 1.64
Gulf of Mexico 1.25 1.65 1.26 1.72
North Sea 2.45 1.35 1.77 1.35
Depreciation, depletion and
amortization (DD&A) 3.61 3.20 3.48 3.11
Gulf of Mexico 3.52 3.15 3.32 3.04
North Sea 4.32 3.34 4.22 3.38
Selected Financial Data
(In Thousands, Except Per Share
Data)
Oil and gas revenues, including
settled derivatives (1) $131,919 $108,877 $276,593 $154,102
Net income (loss) 6,125 17,360 33,559 14,315
Preferred dividends - (10,986) - (17,804)
Net income (loss) available to
common shareholders 6,125 6,374 33,559 (3,489)
Net income (loss) per common
share - basic $ 0.20 $ 0.21 $ 1.12 $ (0.12)
================== ==================
Net income (loss) per common
share - diluted 0.20 0.21 1.10 (0.12)
================== ==================
Average number of common shares
outstanding
Basic 30,058 29,715 30,031 29,576
================== ==================
Diluted 30,639 30,396 30,612 30,302
================== ==================
(1) See oil and gas revenue reconciliation toward the end of this
press release.
Operations and Development
Gulf of Mexico
Mississippi Canyon ("MC") 711 (Gomez - 100% Working Interest) -
During the second quarter, we successfully drilled the MC 711 #8 well.
The well encountered high quality sands in the 3750B and 3750C
interval. The well flowed at the limit of the testing equipment, 28
MMcfe per day. We anticipate booking additional proved reserves at
year end Gomez because of the results of this well.
ATP is currently upgrading processing and compression capacity on
the ATP Innovator to approximately 200 MMcfe per day, gross. The
capacity upgrade began at the end of May with a complete shut-down of
the facility for 18 days. For the remainder of June and the beginning
of July, the ATP Innovator handled production from Gomez at a reduced
rate. A second complete shut-down of the facility began on July 18th
and ended on August 5th when Gomez was placed back on production. In
total the ATP Innovator was shut-down for 37 days, a period shorter
than our expected shut-down of 45 days. During the third quarter of
2007, the MC 755 (Anduin) #2 and MC 711 #8 wells will be tied back and
brought on production.
In the second half of 2008, the operator of MC 800 and MC 754 is
planning to drill exploratory targets in these blocks. If successful,
these exploratory targets will be brought on production through the
ATP Innovator. ATP owns a 50% W.I. in MC 754 and a 25% W.I. in MC 800.
Ship Shoal ("SS") 351 (100% Working Interest) - ATP achieved
successful drilling results in two wells at SS 351 and expanded its
drilling program at this property from two wells to four wells. The
first two wells at SS 351 are currently producing. The third well, SS
351 #A4, is expected to start producing in the third quarter, bringing
net field production from approximately 10 MMcfe per day to
approximately 17 MMcfe per day.
High Island ("HI") A-589 (100% Working Interest) - ATP is
currently developing HI A-589 using a fixed production platform. The
company completed construction of the jacket and deck in the second
quarter 2007 and installation was completed in July of this year. ATP
is planning to drill up to two wells at this location and we expect
first production in the first quarter of 2008.
Telemark Hub - MC 941/942 and Atwater Valley ("AT") 63 (100 %
Working Interest) - ATP commenced the construction of a MinDOC (Deep
Draft Floating Platform) for use at MC 941/942 and AT 63. Drilling at
MC 941/942 will occur via a platform rig to be located on the MinDOC.
The AT 63 well is expected to be drilled from a floating drilling
unit. The subsea well at AT 63 will be tied into the MinDOC and the
MinDOC will serve as the primary production facility for MC 941/942
and AT 63. Construction of the hull is underway in Texas and
construction of the topside is progressing in Louisiana. The MinDOC
sail-out is currently scheduled for the summer of 2008 with first
production late in the same year.
North Sea
Tors - Kilmar & Garrow (85% Working Interest) - ATP produces from
three wells at Tors, the most recent of which (G1) was placed on
production in February of 2007. ATP is currently drilling a fourth
well (K3) at Tors. The K3 well is expected to be completed and on
production in the fourth quarter 2007 and is expected to initially
expand production at the Tors field to 60-80 MMcfe per day, net.
Production at the Tors field was voluntarily curtailed during the
second quarter due to seasonally low natural gas prices in the U.K. As
favorable prices return during the third and fourth quarters, Tors
production should increase to 60-80 MMcfe per day, net.
Wenlock (100% Working Interest) - ATP successfully completed and
tested the W1 well in July 2007 with a company record 3,900'
horizontal completion. The W1 well encountered additional sands in an
exploratory target across a fault and tested at the limit of the test
equipment with a flow rate of 58 MMcf per day. In the coming months,
ATP will dewater, hydrostatically test and tie-in the 27-kilometer
pipeline to bring the field onto production. First production is
scheduled for the fourth quarter of 2007 at a rate of approximately 60
MMcfe per day, net. Beyond the existing well, further upside is
expected from two additional drilling opportunities which are
currently under evaluation in the vicinity of Wenlock.
Helvellyn (50% Working Interest) - Helvellyn was returned to
production at 9 MMcfe per day, net, in July following its planned
summer shut-in and should remain on production through next winter.
Production Update
Production for the second quarter averaged approximately 160 MMcfe
per day, a rate higher than had been expected. In spite of the
complete shut-down for 18 days of Gomez during the quarter due to the
ATP Innovator expansion, Gulf of Mexico oil production from the first
quarter 2007 to the second quarter 2007 increased from 11.1 MBbls per
day to 11.3 MBbls per day. ATP previously forecasted production of
approximately 10 MMcf per day in the North Sea due to voluntary
curtailments. Natural gas volumes produced during the quarter exceeded
volumes hedged at the end of the first quarter, rising to 16.5 MMcf
per day. Production was increased to take advantage of new hedges in
the North Sea and a higher-than-forecast natural gas price. Based on
the company's current production capacity, including the ATP Innovator
capacity upgrade and the new wells scheduled to commence production
during the second half 2007, estimated production for the third and
fourth quarters of 2007 is expected to exceed production for each of
the previous quarters in 2007. ATP is on target to exit 2007 at a
production rate in excess of 300 MMcfe per day, net.
Acquisitions Update
Since the beginning of 2007, ATP has closed transactions covering
8 blocks in the Gulf of Mexico. In July 2007, ATP acquired the
remaining 22% interest in South Timbalier 77 and the remaining 44%
interest in High Island 74, both producing properties operated by ATP.
ATP also acquired a 100% interest in Ship Shoal 350 adjacent to the
previously discussed Ship Shoal 351. Future development plans for each
of these properties are currently being finalized. Additionally, ATP
is in discussions with parties regarding potential acquisitions and
divestitures of other properties, including the sell down of a portion
of ATP's working interest in certain properties, in both the Gulf of
Mexico and the North Sea. ATP expects to continue to pursue
opportunities that meet its acquisition and divestiture strategy.
Coupled with extension well discoveries at existing locations, ATP
estimates these acquisitions have added approximately 80 Bcfe of
recoverable hydrocarbons to its portfolio of properties in 2007.
Proved and probable reserves associated with these acquisitions and
extension well discoveries are being evaluated by ATP's independent
reserve engineers and will be reported in conjunction with the annual
2007 year-end reserve report.
Hedging Update
In total for the second half of 2007, and for 2008 and 2009, ATP
has 103 Bcfe hedged at an average price of $9.09 per Mcfe,
representing potential future revenue of $938 million. Since its first
quarter earnings press release dated May 10, 2007, ATP has hedged an
additional 8.8 Bcfe for 2007 and 2008. Included in these hedges are
548 thousand barrels of crude oil fixed forward sales at prices
ranging from $73.00 per Bbl to $73.45 per Bbl and 5.5 Bcf of U.K.
natural gas swaps at prices ranging from $6.12 to $10.20 per Mcf. A
detailed listing of all of our hedges is provided near the end of this
press release.
ATP entered into its first currency hedge on July 26, 2007. The
currency swap locks in a $2.049 USD/GBP exchange rate for GBP 33
million, protecting $67.6 million in projected cash flow from our U.K.
subsidiary. A complete listing of the company's currency hedge
positions can be found near the end of this press release.
Capital Resources and Liquidity
Cash flow from operating activities was $177.5 million during the
first six months of 2007, compared to $46.6 million in cash flow from
operating activities for the same 2006 period. Cash flow from
operating activities prior to changes in assets and liabilities, a
non-GAAP measure frequently used by research analysts, was $175.1
million for the first six months of 2007, compared to $91.1 million
for the same 2006 period. A reconciliation of non-GAAP cash flow from
operating activities prior to changes in assets and liabilities can be
found near the end of this press release.
ATP had $132.6 million in cash and cash equivalents on hand at
June 30, 2007, compared to $182.6 million at December 31, 2006. Cash
paid for acquisition and development activities for the six months
ended June 30, 2007 was $390.0 million, compared to $203.4 million for
the same period in 2006. At June 30, 2007, ATP had a GAAP working
capital deficit of $24.9 million, compared to working capital of $77.5
million at December 31, 2006. At June 30, 2007, ATP had positive
working capital per its credit agreement of $49.6 million, which
includes ATP's $50 million fully available and un-drawn revolver.
ATP previously announced that it was evaluating an MLP or similar
partnership structure for certain of its platform and pipeline assets.
ATP completed its preliminary evaluation in June and determined that
this initiative may be achievable and, if successful, might provide
advantages for the Company. ATP continues to work to identify both the
assets and a structure that may be appropriate.
2nd Quarter 2007 Conference Call
ATP Oil & Gas Corporation will host a live conference call on
Thursday, August 9th at 10:00 am central time. Chairman and President
T. Paul Bulmahn, Senior Vice President Gerald W. Schlief, Chief
Operating Officer Leland E. Tate and Chief Financial Officer Albert L.
Reese, Jr. will discuss the company's first quarter results followed
by a Q&A session.
Date: Thursday, August 9, 2007
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 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 (888) 202-2422. The audio download file in MP3 format will be
released within 48 hours of the call. A digital replay of the
conference call will be available at (888) 203-1112, ID number
2875473, 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 an international offshore oil and gas development
and production company with operations 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, 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 our ability to access them, and uncertainties regarding
environmental regulations or litigation and other legal or regulatory
developments affecting our business. The SEC has generally permitted
oil and gas companies, in filings made with the SEC, to disclose only
proved reserves that a company has demonstrated by actual production
or conclusive formation tests to be economically and legally
producible under existing economic and operating conditions. We and
our independent third party reservoir engineers use the terms
"probable" and "possible" and we use the term "recoverable
hydrocarbons" to describe volumes of reserves potentially recoverable
through additional drilling or recovery techniques that the SEC's
guidelines may prohibit us from including in filings with the SEC.
These estimates are by their nature more speculative than estimates of
proved reserves. All estimates of probable and possible reserves in
this news release have been prepared by our independent third party
engineers and all estimates of recoverable hydrocarbons have been
prepared by management. More information about the risks and
uncertainties relating to ATP's forward-looking statements are found
in our SEC filings.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
June 30, December 31,
2007 2006
----------- ------------
Assets
Current assets:
Cash and cash equivalents $ 132,602 $ 182,592
Restricted cash 28,122 27,497
Accounts receivable (net of allowances of
$382 and $409) 73,560 105,030
Deferred tax asset 1,259 1,113
Derivative asset 5,310 1,170
Other current assets 8,401 9,931
----------- ------------
Total current assets 249,254 327,333
----------- ------------
Oil and gas properties:
Oil and gas properties (using the successful
efforts method of accounting) 2,010,936 1,539,352
Less: Accumulated depletion, impairment and
amortization (557,095) (443,707)
----------- ------------
Oil and gas properties, net 1,453,841 1,095,645
----------- ------------
Furniture and fixtures, net 1,013 1,079
Deferred tax asset 1,417 -
Derivative asset 5,902 -
Deferred financing costs, net 18,579 13,272
Other assets, net 7,230 9,729
----------- ------------
34,141 24,080
----------- ------------
Total assets $1,737,236 $ 1,447,058
=========== ============
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accruals $ 220,678 $ 195,846
Current maturities of long-term debt 12,737 8,987
Current maturities of long-term capital
lease - 23,699
Asset retirement obligation 17,064 21,297
Other current liabilities 23,668 -
----------- ------------
Total current liabilities 274,147 249,829
Long-term debt 1,252,335 1,062,454
Asset retirement obligation 104,551 87,092
Deferred tax liability 19,843 11,765
Other long-term liabilities 3,468 -
----------- ------------
Total liabilities 1,654,344 1,411,140
----------- ------------
Shareholders' equity:
Preferred stock: $0.001 par value - -
Common stock: $0.001 par value 30 30
Additional paid-in capital 155,853 151,467
Accumulated deficit (107,122) (140,681)
Accumulated other comprehensive income 35,042 26,013
Treasury stock, at cost (911) (911)
----------- ------------
Total shareholders' equity 82,892 35,918
----------- ------------
Total liabilities and shareholders' equity$1,737,236 $ 1,447,058
=========== ============
CONSOLIDATED INCOME STATEMENTS
(In Thousands, Except Per Share Amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Oil and gas revenues $132,153 $108,885 $276,902 $154,130
Other revenues - - 1,598 -
--------- --------- --------- ---------
Total revenues 132,153 108,885 278,500 154,130
--------- --------- --------- ---------
Costs and operating expenses:
Lease operating 20,105 21,259 41,174 31,952
Exploration 10,605 367 11,336 508
General and administrative 6,572 7,375 15,340 15,360
Depreciation, depletion and
amortization 52,612 43,249 106,012 60,519
Impairment of oil and gas
properties 5,770 - 5,770 -
Accretion of asset
retirement obligation 3,020 1,671 5,980 3,218
Loss on abandonment 2 3,451 79 3,506
--------- --------- --------- ---------
Total costs and operating
expenses 98,686 77,372 185,691 115,063
--------- --------- --------- ---------
Income from operations 33,467 31,513 92,809 39,067
--------- --------- --------- ---------
Other income (expense):
Interest income 2,550 1,207 4,618 1,780
Interest expense (31,025) (12,097) (57,824) (23,269)
--------- --------- --------- ---------
Total other income
(expense) (28,475) (10,890) (53,206) (21,489)
--------- --------- --------- ---------
Income (loss) before income
taxes 4,992 20,623 39,603 17,578
--------- --------- --------- ---------
Income tax expense:
Current 22 (1,841) (34) (1,841)
Deferred 1,111 (1,422) (6,010) (1,422)
--------- --------- --------- ---------
Total 1,133 (3,263) (6,044) (3,263)
--------- --------- --------- ---------
Net income (loss) 6,125 17,360 33,559 14,315
--------- --------- --------- ---------
Preferred dividends - (10,986) - (17,804)
--------- --------- --------- ---------
Net income (loss) available to
common shareholders $ 6,125 $ 6,374 $ 33,559 $ (3,489)
========= ========= ========= =========
Net income (loss) per common
share:
Basic $ 0.20 $ 0.21 $ 1.12 $ (0.12)
========= ========= ========= =========
Diluted 0.20 0.21 1.10 (0.12)
========= ========= ========= =========
Weighted average common shares
outstanding:
Basic 30,058 29,715 30,031 29,576
========= ========= ========= =========
Diluted 30,639 30,396 30,612 30,302
========= ========= ========= =========
CONSOLIDATED CASH FLOW DATA
(In Thousands)
Six Months Ended
June 30,
---------------------
2007 2006
---------- ----------
Cash flows from operating activities:
Net income (loss) $ 33,559 $ 14,315
Adjustments to operating activities 141,536 76,799
Changes in assets and liabilities 2,434 (44,527)
---------- ----------
Net cash provided by operating activities 177,529 46,587
---------- ----------
Cash flows from investing activities:
Additions to oil and gas properties (389,972) (203,445)
Additions to furniture and fixtures (207) (250)
Increase in restricted cash 1 129
---------- ----------
Net cash used in investing activities (390,178) (203,566)
---------- ----------
Cash flows from financing activities:
Proceeds from long-term debt 375,000 178,500
Principal payments of long-term debt (181,369) (875)
Deferred financing costs (8,445) (11,116)
Issuance of preferred stock, net of related
costs - 145,463
Principal payments of capital lease (23,950) (20,869)
Exercise of stock options 1,140 4,231
---------- ----------
Net cash provided by financing activities 162,376 295,334
---------- ----------
Effect of exchange rate changes on cash 283 (1,112)
---------- ----------
Net increase (decrease) in cash and cash
equivalents (49,990) 137,243
Cash and cash equivalents, beginning of period 182,592 65,566
---------- ----------
Cash and cash equivalents, end of period $ 132,602 $ 202,809
========== ==========
Hedges, Derivatives and Fixed Price Contracts
2007
-----------------------------------
1Q 2Q 3Q 4Q FY
-----------------------------------
Gulf of Mexico
Fixed Forwards
Natural Gas
Volumes (MMMBtu) 2,255 3,175 2,740 3,648 11,818
Price ($/MMBtu) $ 9.81 $ 8.17 $ 8.24 $ 8.40 $ 8.57
Crude Oil
Volumes (MBbls) 297 346 396 580 1,618
Price ($/Bbl) $69.61 $70.74 $70.90 $71.64 $ 70.90
Equivalents
Volumes (MMMBtue) 4,037 5,250 5,114 7,126 21,526
Price ($/MMBtue) $10.60 $ 9.60 $ 9.90 $10.13 $ 10.03
Puts
Crude Oil
Volumes (MBbls) 585 91 92 92 860
Floor Price ($/Bbl) $57.88 $60.00 $60.00 $60.00 $ 58.56
North Sea
Fixed Forwards & Swaps
Natural Gas
Volumes (MMMBtu) 2,700 1,510 2,760 5,830 12,800
Price ($/MMBtu) $12.95 $ 7.36 $ 6.81 $ 9.42 $ 9.36
2008
-----------------------------------
1Q 2Q 3Q 4Q FY
-----------------------------------
Gulf of Mexico
Fixed Forwards
Natural Gas
Volumes (MMMBtu) 4,078 3,625 2,740 2,745 13,188
Price ($/MMBtu) $ 8.45 $ 7.98 $ 8.09 $ 8.43 $ 8.24
Crude Oil
Volumes (MBbls) 455 455 276 276 1,462
Price ($/Bbl) $71.75 $71.75 $70.76 $70.76 $ 71.38
Equivalents
Volumes (MMMBtue) 6,808 6,355 4,396 4,401 21,960
Price ($/MMBtue) $ 9.86 $ 9.69 $ 9.49 $ 9.69 $ 9.70
Puts
Crude Oil
Volumes (MBbls) 619 619 626 626 2,489
Floor Price ($/Bbl) $54.68 $54.68 $54.68 $54.68 $ 54.68
North Sea
Fixed Forwards & Swaps
Natural Gas
Volumes (MMMBtu) 6,970 3,640 3,680 4,784 19,074
Price ($/MMBtu) $ 9.69 $ 6.62 $ 6.62 $ 8.33 $ 8.17
2009
-----------------------------------
1Q 2Q 3Q 4Q FY
-----------------------------------
Gulf of Mexico
Fixed Forwards
Natural Gas
Volumes (MMMBtu) 2,700 1,815 1,830 1,830 8,175
Price ($/MMBtu) $ 8.60 $ 7.56 $ 7.57 $ 8.10 $ 8.03
Crude Oil
Volumes (MBbls) 180 182 184 184 730
Price ($/Bbl) $66.23 $66.23 $66.23 $66.23 $ 66.23
Equivalents
Volumes (MMMBtue) 3,780 2,907 2,934 2,934 12,555
Price ($/MMBtue) $ 9.29 $ 8.87 $ 8.87 $ 9.21 $ 9.08
Puts
Crude Oil
Volumes (MBbls) 369 373 377 377 1,497
Floor Price
($/Bbl) $54.00 $54.00 $54.00 $54.00 $ 54.00
North Sea
Fixed Forwards & Swaps
Natural Gas
Volumes (MMMBtu) 3,780 - - - 3,780
Price ($/MMBtu) $ 8.07 $ - $ - $ - $ 8.07
- ----------------------------------------------------------------------
Exchange rate = 2.04 USD/GBP
The above are hedges, derivatives and fixed price contracts that are
currently in effect or have settled prior to such date.
Additional hedges, derivatives and fixed price contracts, if any, will
be announced during the year.
- ----------------------------------------------------------------------
Recent North Sea Gas Swaps:
May 17, 2007: 20,000 MMBtu/d June 2007 to September 2007 at GBP
3.00/MMBtu ($6.12/MMBtu)
May 17, 2007: 7,000 MMBtu/d October 2008 to March 2009 at GBP
3.00/MMBtu ($6.12/MMBtu)
July 11, 2007: 10,000 MMBtu/d January 2008 to March 2008 at GBP
4.71/MMBtu ($9.61/MMBtu)
July 24, 2007: 10,000 MMBtu/d December 2007 to February 2008 at GBP
5.00/MMBtu ($10.20/MMBtu)
Recent Gulf of Mexico Oil Fixed Forwards:
July 11, 2007: 1,000 Bbls/d October 2007 to June 2008 at $73.00 /Bbl
July 11, 2007: 1,000 Bbls/d October 2007 to June 2008 at $73.45 /Bbl
2007 2008
------------------------- ------------------------
(Currency in
thousands) October November December January February March
- ------------------- ------------------------- ------------------------
Exchange rate
(USD/GBP) 2.049 2.049 2.049 2.049 2.049 2.049
Notional amount
(GBP) 4,000 5,000 6,000 6,000 6,000 6,000
Dollars hedged
(USD) $8,196 $10,245 $12,294 $12,294 $12,294 $12,294
Recent exchange rate hedges:
July 26, 2007: GBP 4 million October 2007 at 2.049 USD/GBP
July 26, 2007: GBP 5 million November 2007 at 2.049 USD/GBP
July 26, 2007: GBP 6 million December 2007 to March 2008 at 2.049
USD/GBP
Oil and Gas Revenue Reconciliation (1)
(In Thousands)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2007 2006 2007 2006
--------- -------- -------- --------
Oil and gas revenues, including
the effects of settled
derivatives (1) $ 131,919 $108,877 $276,593 $154,102
Hedging ineffectiveness and other
(2) 234 8 309 28
--------- -------- -------- --------
Oil and gas revenue per income
statements $ 132,153 $108,885 $276,902 $154,130
========= ======== ======== ========
(1) Oil and gas revenues including the effects of settled derivative
activities differ from our reported revenues from oil and gas
production because such numbers omit the effects of previously
recognized changes in the fair market value of derivatives
settled during the period. Set forth above is a table
reconciling the presented information with revenues from oil and
gas production. The total of oil and gas revenues, including the
effects of settled derivative activities, is presented because
of its acceptance as an indicator of the Company's realized cash
flow from its oil and gas production during the period for which
it is presented.
(2) Hedging ineffectiveness is the portion of gains (losses) on
derivatives that is based on imperfect correlations to benchmark
oil and natural gas prices.
Cash Flow From Operating Activities
(In Thousands)
Six Months Ended
June 30,
--------------------
2007 2006
--------- ----------
Cash flows from operating activities:
Net income (loss) $ 33,559 $ 14,315
Adjustments to operating activities 141,536 76,799
--------- ----------
Cash flows from operating activities before
changes in assets and liabilities 175,095 91,114
Changes in assets and liabilities 2,434 (44,527)
--------- ----------
Net cash provided by operating activities $ 177,529 $ 46,587
========= ==========
Net Income Before Significant Nonrecurring Charges
(In Thousands, except per share data)
Three Months Ended
June 30,
------------------
2007 2006
-------- --------
Net income (loss) available to common shareholders $ 6,125 $ 6,374
Impairment of oil and gas properties 5,770 -
Loss on abandonment 2 3,451
-------- --------
Pro forma net income (loss) available to common
shareholders before significant nonrecurring
charges $ 11,897 $ 9,825
Pro forma net income (loss) per common share:
Basic $ 0.40 $ 0.33
======== ========
Diluted $ 0.39 $ 0.32
======== ========
Weighted average number of common shares:
Basic 30,058 29,715
======== ========
Diluted 30,639 30,396
======== ========
CONTACT: ATP Oil & Gas Corporation
T. Paul Bulmahn, 713-622-3311
(Chairman and President)
Albert L. Reese Jr., 713-622-3311
(Chief Financial Officer)
www.atpog.com