EXHIBIT 99.1
[ATP OIL & GAS CORPORATION LOGO]
News Release
For Immediate Release
Company contacts:
T. Paul Bulmahn, Chairman and President
Albert L. Reese Jr., SVP and Chief Financial Officer
713-622-3311 www.atpog.com
ATP Oil & Gas Corporation Reports First Quarter 2003 Results
HOUSTON - May 15, 2003 - (PRNewswire) - ATP Oil & Gas Corporation (NASDAQ: ATPG)
today announced first quarter 2003 net income of $2.4 million ($0.12 per share).
ATP further announced a 32% increase in proved developed producing reserves
during the quarter. ATP additionally achieved previously announced production
guidance of 5 Bcfe with actual natural gas and oil production of 5 Bcfe.
ATP Oil & Gas Corporation 4600 Post Oak Place Suite 200 Houston, TX 77027
www.atpog.com
Page 1 of 11
[ATP OIL AND GAS CORPORATION LOGO]
Three Months Ended
March 31,
-----------------------------
2003 2002
------------- -------------
(unaudited)
Selected Operating Statistics
Production
Natural gas, MMcf 2,934 4,476
Oil and condensate, MBbls 343 427
Natural gas equivalents, MMcfe 4,995 7,035
Average Prices (includes effect of settled derivatives)
Natural gas, per Mcf $ 3.01 $ 2.68
Oil and condensate, per Bbl $ 28.95 $ 18.54
Natural gas equivalents, per Mcfe $ 3.75 $ 2.83
Expenses, per Mcfe
Lease operating expense $ 0.73 $ 0.54
General and administrative $ 0.64 $ 0.35
Depreciation, depletion and amortization $ 1.55 $ 1.69
Selected Financial Data
(In Thousands, Except Per Share Data)
Oil and gas revenues including the effects of settled derivatives $18,765 $19,887
Net income (loss) ................................................. $ 2,398 $(6,363)
Per share, basic and diluted $ 0.12 $ (0.31)
Average shares outstanding - basic 20,332 20,332
Average shares outstanding - diluted 20,521 20,313
ATP Oil & Gas Corporation 4600 Post Oak Place Suite 200 Houston, TX 77027
www.atpog.com
Page 2 of 11
[ATP OIL AND GAS CORPORATION LOGO]
Operating Revenues and Expenses
Oil and gas production revenues were $20.5 million for the first quarter
compared to $18.6 million in the same period in 2002. Lease operating expense
(LOE) for the first quarter was $3.6 million ($0.73 per Mcfe) compared to $3.8
million ($0.54 per Mcfe) in the first quarter 2002. LOE guidance for the year,
$0.60 - $0.65 per Mcfe, remains unchanged with lower planned workover activity
and higher production rates expected. General and administrative expense (G&A)
for the first quarter was $3.2 million, compared to $2.5 million in the
comparable period in 2002. G&A was higher due to increased compensation expense
and professional fees. Depreciation, depletion and amortization (DD&A) for the
first quarter was $7.8 million ($1.55 per Mcfe), compared to $11.9 million
($1.69 per Mcfe) in the first quarter 2002. DD&A benefited from reduced finding
and development costs associated with our 2002 capital program.
Developments and Acquisitions
Gulf of Mexico:
Progress on our Gulf of Mexico development program by the end of the first
quarter increased proved developed producing reserves 32% compared to year-end
2002. The Company completed two developments, Eugene Island 71 and West Cameron
101, and placed them on production during the latter part of March. The combined
production from these two fields led to an exit production rate on March 31,
2003 of 70 MMcfe per day, compared to first quarter average production of 56
MMcfe per day.
The Company's third Gulf of Mexico development in 2003, West Cameron 284, is
underway and on schedule for first production near the end of the second
quarter. The Company developed this field by installing a caisson and drilling
and completing a horizontal and a vertical well. With first production from West
Cameron 284 in the second quarter and successful execution of our Gulf of Mexico
developments in the second half of this year, the Company anticipates continued
growth in proved developed producing reserves throughout the remainder of the
year.
ATP was the apparent high bidder on West Cameron 663 at the annual OCS Central
Gulf of Mexico Offshore Lease Sale held March 19, 2003 in New Orleans by the
Minerals Management Service (MMS). ATP will own a 100% working interest in West
Cameron 663 and serve as operator if ATP's high bid is approved by the MMS. The
block, with proved reserves, is located in approximately 366 feet of water and
is in close proximity to the Company's Matia and Cabrito project. The discovery
well on West Cameron
ATP Oil & Gas Corporation 4600 Post Oak Place Suite 200 Houston, TX 77027
www.atpog.com
Page 3 of 11
[ATP OIL AND GAS CORPORATION LOGO]
663 was drilled to a depth of 9063 feet in 1985 with proved hydrocarbons at
approximately 7800 feet measured depth.
ATP was nominated for the National Safety Award of Excellence (SAFE) for a
second consecutive year. The MMS administers the SAFE program, which recognizes
exemplary performance by Outer Continental Shelf oil and gas operators.
Nomination for the SAFE award placed ATP as one of the 6 finalists for this
award out of 41 companies that operate in the Gulf of Mexico in the same
category.
U.K.-Sector North Sea:
Final preparations are underway at the Helvellyn field. The pipeline is being
dewatered, and final production and system testing is ongoing. The well, which
tested in excess of 60 MMcf per day in January 2003, is expected to be placed on
production during the second quarter 2003. ATP is the operator and has a net
revenue interest of 50% in Helvellyn.
Dutch-Sector North Sea:
In February 2003, ATP expanded its North Sea operations by acquiring the L-06d
block, located in the Dutch sector of the North Sea. On behalf of the Dutch
State, Energie Beheer Nederland B.V. (EBN) elected to join ATP and received a
50% working interest in L-06d in consideration for its share of prior costs and
50% of all future development costs. The L-06d block, located in 115 feet of
water, contains proved reserves from a gas discovery in 1990. First production
is expected in 2004. ATP is the operator of the L-06d block.
Capital Resources and Liquidity
ATP's first quarter cash flow was used primarily for development activities
(discussed in the previous section) and to reduce bank debt. During the quarter,
the company reduced bank debt $1.5 million to $54.5 million. This reduction
continued into the second quarter further reducing the outstanding balance on
our bank revolver to $50 million. On May 13, 2003, the Company and its lenders
concluded a regularly scheduled borrowing base redetermination. The borrowing
base was set at $50 million with no further scheduled amortization. The next
regularly scheduled redetermination is set for July 2003, at which time the
borrowing base and scheduled amortizations may be reset.
ATP Oil & Gas Corporation 4600 Post Oak Place Suite 200 Houston, TX 77027
www.atpog.com
Page 4 of 11
[ATP OIL AND GAS CORPORATION LOGO]
ATP reported a working capital deficit of $34.0 million at March 31, 2003,
compared to $13.7 million at December 31, 2002. The Company had a smaller
working capital deficit as calculated by its lenders. A calculation of ATP's
working capital per our lenders can be found at the end of this press release.
On May 13, 2003 amendments were executed with our lenders that removed the
requirement for a positive working capital for the period ending March 31, 2003
and eliminated the non-compliance with working capital covenants under both
agreements as of that date. The working capital covenant under our bank credit
facility will be reinstated as of June 30, 2003. Interest expense in the first
quarter was $2.3 million, compared to $2.7 in the comparable 2002 period. The
cash portion of interest expense was $1.4 million, compared to $1.6 million in
the first quarter 2002. The decrease in interest expense is attributable to a
17% decrease in bank debt over the comparable period.
During the second quarter, the Company improved its financial flexibility with
the receipt of $19.2 million that is not reflected in the financial statements
for the quarter ending March 31, 2003. Of this amount, $8.1 million relates to
the Company's agreement to develop a property during the next 60 months. If the
property is not developed, the amounts will be returned with interest. The
remaining $11.1 million was raised through an offering of 4,000,000 shares of
common stock.
Conference Call
ATP will host a conference call to discuss first quarter 2003 results on May 15,
2003 at 10:30 a.m. CT. To participate in the live webcast, log on to
www.atpog.com ten minutes prior to the start of the call and click on Investor
Info/Conference Calls. To listen to the conference call via telephone, contact
Isabel Plume at 713-403-5517 for the dial-in number and conference
identification number. If you are unable to participate during the live webcast,
the call will be archived on our Web site, www.atpog.com. A recorded replay can
be accessed 24 hours after the call. The rebroadcast number is 1-800-428-6051
and id code 294488.
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 National Market.
ATP Oil & Gas Corporation 4600 Post Oak Place Suite 200 Houston, TX 77027
www.atpog.com
Page 5 of 11
[ATP OIL AND GAS CORPORATION LOGO]
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. More information about the risks and uncertainties relating to
ATP's forward-looking statements are found in our SEC filings.
ATP Oil & Gas Corporation 4600 Post Oak Place Suite 200 Houston, TX 77027
www.atpog.com
Page 6 of 11
[ATP OIL AND GAS CORPORATION LOGO]
Balance Sheet
(In Thousands)
March 31, December 31,
2003 2002
----------- ------------
Assets (unaudited)
Current assets
Cash and cash equivalents $ 3,381 $ 6,944
Restricted cash - 414
Accounts receivable (net of allowance of $1,263 and $1,430, respectively) 28,460 24,998
Deferred tax asset 2,078 1,628
Other current assets 3,537 3,245
--------- ---------
Total current assets 37,456 37,229
--------- ---------
Oil and gas properties
Oil and gas properties (using the successful efforts method of accounting) 392,761 355,088
Less: Accumulated depreciation, depletion, impairment and amortization (234,931) (236,052
--------- ---------
Oil and gas properties, net 157,830 119,036
--------- ---------
Furniture and fixtures (net of accumulated depreciation) 784 810
Deferred tax asset 20,289 21,580
Other assets, net 2,549 3,400
--------- ---------
Total assets $ 218,908 $ 182,055
========= =========
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accruals $ 50,245 $ 35,336
Current maturities of long-term debt 4,500 6,000
Asset retirement obligation 7,437 -
Derivative liability 9,232 9,592
--------- ---------
Total current liabilities 71,414 50,928
Long-term debt 80,460 80,387
Asset retirement obligation 15,385 -
Deferred revenue 1,066 1,111
Other long-term liabilities and deferred obligations 10,816 11,082
--------- ---------
Total liabilities 179,141 143,508
--------- ---------
Shareholders' equity
Preferred stock: $0.001 par value, 10,000,000 shares authorized;
none issued - -
Common stock: $0.001 par value, 100,000,000 shares authorized;
20,398,007 issued and 20,322,167 outstanding at December 31, 2002;
20,388,488 issued and 20,312,648 outstanding at December 31, 2001 20 20
Additional paid in capital 81,071 81,087
Accumulated deficit (36,916) (39,314)
Accumulated other comprehensive loss (3,497) (2,335)
Treasury stock (911) (911)
--------- ---------
Total shareholders' equity 39,767 38,547
--------- ---------
Total liabilities and shareholders' equity $ 218,908 $ 182,055
========= =========
ATP Oil & Gas Corporation 4600 Post Oak Place Suite 200 Houston, TX 77027
www.atpog.com
Page 7 of 11
[ATP OIL AND GAS CORPORATION LOGO]
Income Statement
(In Thousands, Except Per Share Amounts)
Three Months Ended
March 31,
----------------------------
2003 2002
------------- -------------
(unaudited)
Revenue
Oil and gas production $ 20,480 $ 18,610
-------- --------
Total revenues 20,480 18,610
-------- --------
Costs and operating expenses
Lease operating expenses 3,627 3,815
Geological and geophysical expenses 154 (43)
General and administrative expenses 3,212 2,478
Non-cash compensation expense (general and administrative) (39) 243
Depreciation, depletion and amortization 7,762 11,860
Accretion expense 729 -
------- --------
Total costs and operating expenses 15,445 18,353
-------- --------
Income from operations 5,035 257
-------- --------
Other income (expense)
Interest income 12 16
Interest expense (2,337) (2,666)
Other 31 44
Loss on derivative instruments (70) (7,440)
-------- --------
Total other income (expense) (2,364) (10,046)
-------- --------
Income (loss) before income taxes and cumulative
effect of change in accounting principle 2,671 (9,789)
Income tax (expense) benefit (935) 3,426
-------- --------
Income (loss) before cumulative effect of change in accounting principle 1,736 (6,363)
Cumulative effect of change in accounting principle 662 -
-------- -------
Net Income (loss) $ 2,398 $ (6,363)
======== ========
Income (loss) per common share:
Basic and diluted $ 0.12 $ (0.31)
======== ========
Weighted average number of common shares:
Basic 20,332 20,313
======== ========
Diluted 20,521 20,313
======== ========
ATP Oil & Gas Corporation 4600 Post Oak Place Suite 200 Houston, TX 77027
www.atpog.com
Page 8 of 11
[ATP OIL AND GAS CORPORATION LOGO]
Cash Flow Data
(In Thousands)
Three Months Ended
March 31,
-----------------------------
2003 2002
------------- --------------
(unaudited)
Cash flows from operating activities:
Net income (loss) $ 2,398 $(6,363)
Adjustments to operating activities 7,956 9,115
Changes in assets and liabilities 9,937 4,481
-------- -------
Net cash provided by operating activities 20,291 7,233
-------- -------
Cash flows from investing activities:
Additions and acquisitions of oil and gas properties (22,321) (5,703)
Additions to furniture and fixtures (56) (63)
-------- -------
Net cash used in investing activities (22,377) (5,766)
-------- -------
Cash flows from financing activities:
Payments of long-term debt (1,500) (4,000)
Deferred financing costs - (47)
Other 23 -
-------- -------
Net cash used in financing activities (1,477) (4,047)
-------- -------
Decrease in cash and cash equivalents (3,563) (2,580)
Cash and cash equivalents, beginning of period 6,944 5,294
-------- -------
Cash and cash equivalents, end of period $ 3,381 $ 2,714
======== =======
ATP Oil & Gas Corporation 4600 Post Oak Place Suite 200 Houston, TX 77027
www.atpog.com
Page 9 of 11
[ATP OIL AND GAS CORPORATION LOGO]
Hedges, Derivatives and Fixed Price Contracts
(unaudited)
Previously
Announced New
on Positions Added In Effect
Product and Period 3/24/2003 3/24/2003 to 5/13/2003 5/13/2003
- ------------------ ---------------------- ----------------------- ---------------------
Volume Price $ Volume Price $ Volume Price $
--------- --------- -------- --------- -------- ---------
Gas (MMBtu per day)
- -------------------
1Q03 32,000 3.32 32,000 3.32
2Q03 32,000 3.33 32,000 3.33
3Q03 32,000 3.33 32,000 3.33
4Q03 27,359 3.70 27,359 3.70
1Q04 11,400 4.47 5,000 $5.49 16,400 4.78
2Q04 10,000 4.40 3,000 $5.05 13,000 4.55
3Q04 10,000 4.40 3,000 $5.05 13,000 4.55
4Q04 10,000 4.40 3,000 $5.05 13,000 4.55
ATP also entered into a collar for 3,000 MMBtu per day for the first quarter
2004 with a floor of $4.40 and a ceiling of $5.80 per MMBtu that is not
reflected above.
Oil (Bbl per day)
- -----------------
1Q03 1,828 27.75 1,828 27.75
2Q03 1,165 25.87 1,165 25.87
3Q03 1,000 24.48 1,000 24.48
4Q03 1,000 24.48 1,000 24.48
The above are hedges, derivatives and fixed price contracts in effect at May 13,
2003. Additional hedges, derivatives and fixed price contracts, if any, will be
announced during the year.
ATP Oil & Gas Corporation 4600 Post Oak Place Suite 200 Houston, TX 77027
www.atpog.com
Page 10 of 11
[ATP OIL AND GAS CORPORATION LOGO]
Working Capital Calculation
Per ATP's Lenders
(In Thousands)
(Unaudited)
March 31, December 31,
2003 2002
------------- --------------
Cash and restricted cash $ 3,381 $ 7,358
Accounts receivable 28,460 24,998
Other current assets 3,537 3,245
-------- --------
Total current assets 35,378 35,601
-------- --------
Accounts payable and accruals 50,245 35,336
-------- --------
Working capital (deficit) per bank lenders' calculation (1) $(14,867) $ 265
========= ========
Working capital (deficit) per note payable purchaser (2) $(22,304) $ 265
========= ========
Working capital deficit per financial statements $(33,958) $(13,699)
========= ========
(1) Working capital excludes the current portion of long-term debt, any
receivable or payable associated with the mark-to-market of derivatives
related to future periods, and the current portion of the asset retirement
obligation pursuant to FASB 143.
(2) Working capital excludes the current portion of long-term debt and any
receivable or payable associated with the mark-to-market of derivatives
related to future periods, but includes short-term asset retirement
obligations of $7.4 million.
Oil and Gas Revenue Reconcilation (1)
(In Thousands)
(Unaudited)
March 31,
2003
-----------
Oil and gas revenues, including the effects of settled derivatives $ 18,765
Hedging ineffectiveness(2) for the quarter (235)
Amounts previously recognized in earnings and current
period changes in fair market value of derivatives 1,950
---------
Oil and gas revenues per income statement $ 20,480
==========
- ------------
(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. Oil and gas revenues and oil and gas revenues including the
effects of settled derivative activities are 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 are based on imperfect correlations to benchmark oil and natural gas
prices.
# # #
ATP Oil & Gas Corporation 4600 Post Oak Place Suite 200 Houston, TX 77027
www.atpog.com
Page 11 of 11