ATP Oil & Gas Corporation Sets Company Records for Reserves, Production, Revenues and EBITDA

Apr 05, 2001, 01:00 ET from ATP Oil & Gas Corporation

    HOUSTON, April 5 /PRNewswire/ -- ATP Oil & Gas Corporation (Nasdaq: ATPG)
 today reported its best financial and operational results in its 10-year
 history.  For 2000, when compared to 1999:  reserves were up 20% reaching
 125.4 Bcfe; production increased 41% to 24.5 Bcfe; revenues nearly doubled at
 $84.0 million; and Adjusted EBITDA of $54.6 million was more than two times
 1999's comparable figure.  All of these results are new ATP records.  This is
 ATP's first published annual result as a public reporting entity.  The company
 completed its initial public offering on February 6, 2001.
 
     New Benchmarks Set for Company
     Total revenues for full-year 2000 were $84.0 million, an increase of
 95% from full-year 1999's results.  Since 1996, revenues have grown at a
 compounded annual growth rate (CAGR) of more than 130%.  For full-year 2000,
 Adjusted EBITDA was $54.6 million, up 105%, as compared to 1999.  Adjusted
 EBITDA's five-year CAGR is 122%.
     Year-over-year production increases played an important role in the
 company's results.  Natural gas and oil production for the year totaled
 24.5 Bcfe, or 66.9 MMcfe per day, compared to 17.3 Bcfe, or 47.4 MMcfe per
 day, produced in 1999.  For the five-year period beginning in 1996, ATP
 increased annual production at a CAGR of 115%.  The company previously
 announced its 2001 production target of 33 Bcfe, an increase of 35% over
 2000 production.
 
      Selected Operating Statistics
      Production                                         1999           2000
        Natural gas, MMcf                              16,533         22,410
        Oil, MBbl                                         128            345
        Natural gas equivalents, MMcfe                 17,301         24,477
      Average Prices
        Natural gas, Mcf, includes effect for hedging   $2.00          $3.01
        Oil, Bbl, includes effect for hedging          $15.37         $25.01
        Natural gas equivalents, Mcfe, includes
         effect for hedging                             $2.02          $3.10
      Expenses
        Lease operating, Mcfe                           $0.32          $0.47
        General and administrative, Mcfe                $0.20          $0.22
        DD&A, Mcfe                                      $1.30          $1.66
      Gross margin, Mcfe                                $1.70          $2.63
        Gross margin percentage                           84%            85%
 
     ATP's Growth Strategy
     The company's strategy is to focus on natural gas and oil properties in
 the Gulf of Mexico and in the Southern Gas Basin of the U.K. North Sea with
 proved undeveloped reserves.  We seek to acquire properties that are
 economically attractive, but are not strategic to major or
 exploration-oriented independent oil and gas companies.  At Dec. 31, 2000, ATP
 had estimated net proved reserves of 125.4 Bcfe, an increase of 20% over the
 previous year.  The estimated pre-tax SEC PV-10 of year-end reserves was
 $745 million.  Prices used in these reserve estimates were $9.52 per MMBtu of
 natural gas and $23.75 per barrel of oil.  Natural gas accounts for 81% of
 proved reserves.  As of the end of 2000, the company owns interests in
 47 offshore blocks, 21 platforms and 56 wells in the Gulf of Mexico.  ATP
 operates 53 of the 56 wells, including all of its subsea wells, and 90% of its
 offshore platforms.  The company's average working interest is approximately
 86%.  Over the past three years ATP's production replacement cost has averaged
 $1.29/Mcfe.
     During the year, the company replaced 187% of its 2000 production and from
 1997 to 2000, the company posted an annual reserve replacement ratio of
 259%.  ATP's replacement target for 2001 is 66 Bcfe, or 200% of targeted
 production.  Thus far in 2001 the company has already closed on properties
 totaling 62 Bcfe.  Since year-end, ATP has acquired nine properties in the
 Gulf of Mexico representing 22 Bcfe.  In March, ATP closed on two properties
 in the Southern Gas Basin of the U.K. North Sea.  This portion of the U.K.
 North Sea, which is north of the English Channel, has a similar operating
 environment as the Gulf of Mexico.  In addition to these acquisitions, ATP has
 executed a letter of intent to acquire another property in the Southern Gas
 Basin, was high bidder on two properties at the recent Gulf of Mexico lease
 sale and is in negotiations for additional properties in both the Gulf of
 Mexico and in the Southern Gas Basin.
 
      Selected Financial Data
      in thousands, except per share data                1999           2000
      Total revenues                                  $42,971        $83,988
      Net income (loss)                                18,228        (10,398)
        Per share, basic and diluted                   $ 1.28         $(0.73)
      Basic and diluted weighted
       average shares outstanding                      14,286         14,286
      Adjusted EBITDA (1)                              26,643         54,571
        Adjusted EBITDA margin                            62%            65%
 
     (1)  Adjusted EBITDA is defined as net income excluding interest expense,
          taxes, depreciation, amortization, impairment and unrealized
          losses.
 
     About ATP Oil & Gas Corporation
     Houston-based ATP Oil and Gas is one of the fastest growing energy
 companies focused on acquisition, development and production of natural gas in
 the Gulf of Mexico and the Southern Gas Basin of the U.K. North Sea.  The
 company was listed by Inc. 500 as the 5th fastest growing private company in
 2000, up from its ranking of 21st in 1999, and the fastest growing private
 energy company for both years.  The company trades publicly as ATPG on the
 NASDAQ National Market.  ATP filed its Form 10-K on April 5, 2001.  On April
 3, ATP filed Form NT 10-K extending the time necessary for filing the year
 2000 annual report.  Shortly before completion of the year-end 2000 audit of
 the company's financial statements, it was determined that two in a series of
 24 natural gas contracts in the company's hedging program required a different
 accounting treatment than originally used.
 
     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 and 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, 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.
 
     For further information, please contact T. Paul Bulmahn, Chairman and
 President, or Albert L. Reese Jr., SVP and Chief Financial Officer, both of
 ATP Oil & Gas Corporation, 713-622-3311.
 
 

SOURCE ATP Oil & Gas Corporation
    HOUSTON, April 5 /PRNewswire/ -- ATP Oil & Gas Corporation (Nasdaq: ATPG)
 today reported its best financial and operational results in its 10-year
 history.  For 2000, when compared to 1999:  reserves were up 20% reaching
 125.4 Bcfe; production increased 41% to 24.5 Bcfe; revenues nearly doubled at
 $84.0 million; and Adjusted EBITDA of $54.6 million was more than two times
 1999's comparable figure.  All of these results are new ATP records.  This is
 ATP's first published annual result as a public reporting entity.  The company
 completed its initial public offering on February 6, 2001.
 
     New Benchmarks Set for Company
     Total revenues for full-year 2000 were $84.0 million, an increase of
 95% from full-year 1999's results.  Since 1996, revenues have grown at a
 compounded annual growth rate (CAGR) of more than 130%.  For full-year 2000,
 Adjusted EBITDA was $54.6 million, up 105%, as compared to 1999.  Adjusted
 EBITDA's five-year CAGR is 122%.
     Year-over-year production increases played an important role in the
 company's results.  Natural gas and oil production for the year totaled
 24.5 Bcfe, or 66.9 MMcfe per day, compared to 17.3 Bcfe, or 47.4 MMcfe per
 day, produced in 1999.  For the five-year period beginning in 1996, ATP
 increased annual production at a CAGR of 115%.  The company previously
 announced its 2001 production target of 33 Bcfe, an increase of 35% over
 2000 production.
 
      Selected Operating Statistics
      Production                                         1999           2000
        Natural gas, MMcf                              16,533         22,410
        Oil, MBbl                                         128            345
        Natural gas equivalents, MMcfe                 17,301         24,477
      Average Prices
        Natural gas, Mcf, includes effect for hedging   $2.00          $3.01
        Oil, Bbl, includes effect for hedging          $15.37         $25.01
        Natural gas equivalents, Mcfe, includes
         effect for hedging                             $2.02          $3.10
      Expenses
        Lease operating, Mcfe                           $0.32          $0.47
        General and administrative, Mcfe                $0.20          $0.22
        DD&A, Mcfe                                      $1.30          $1.66
      Gross margin, Mcfe                                $1.70          $2.63
        Gross margin percentage                           84%            85%
 
     ATP's Growth Strategy
     The company's strategy is to focus on natural gas and oil properties in
 the Gulf of Mexico and in the Southern Gas Basin of the U.K. North Sea with
 proved undeveloped reserves.  We seek to acquire properties that are
 economically attractive, but are not strategic to major or
 exploration-oriented independent oil and gas companies.  At Dec. 31, 2000, ATP
 had estimated net proved reserves of 125.4 Bcfe, an increase of 20% over the
 previous year.  The estimated pre-tax SEC PV-10 of year-end reserves was
 $745 million.  Prices used in these reserve estimates were $9.52 per MMBtu of
 natural gas and $23.75 per barrel of oil.  Natural gas accounts for 81% of
 proved reserves.  As of the end of 2000, the company owns interests in
 47 offshore blocks, 21 platforms and 56 wells in the Gulf of Mexico.  ATP
 operates 53 of the 56 wells, including all of its subsea wells, and 90% of its
 offshore platforms.  The company's average working interest is approximately
 86%.  Over the past three years ATP's production replacement cost has averaged
 $1.29/Mcfe.
     During the year, the company replaced 187% of its 2000 production and from
 1997 to 2000, the company posted an annual reserve replacement ratio of
 259%.  ATP's replacement target for 2001 is 66 Bcfe, or 200% of targeted
 production.  Thus far in 2001 the company has already closed on properties
 totaling 62 Bcfe.  Since year-end, ATP has acquired nine properties in the
 Gulf of Mexico representing 22 Bcfe.  In March, ATP closed on two properties
 in the Southern Gas Basin of the U.K. North Sea.  This portion of the U.K.
 North Sea, which is north of the English Channel, has a similar operating
 environment as the Gulf of Mexico.  In addition to these acquisitions, ATP has
 executed a letter of intent to acquire another property in the Southern Gas
 Basin, was high bidder on two properties at the recent Gulf of Mexico lease
 sale and is in negotiations for additional properties in both the Gulf of
 Mexico and in the Southern Gas Basin.
 
      Selected Financial Data
      in thousands, except per share data                1999           2000
      Total revenues                                  $42,971        $83,988
      Net income (loss)                                18,228        (10,398)
        Per share, basic and diluted                   $ 1.28         $(0.73)
      Basic and diluted weighted
       average shares outstanding                      14,286         14,286
      Adjusted EBITDA (1)                              26,643         54,571
        Adjusted EBITDA margin                            62%            65%
 
     (1)  Adjusted EBITDA is defined as net income excluding interest expense,
          taxes, depreciation, amortization, impairment and unrealized
          losses.
 
     About ATP Oil & Gas Corporation
     Houston-based ATP Oil and Gas is one of the fastest growing energy
 companies focused on acquisition, development and production of natural gas in
 the Gulf of Mexico and the Southern Gas Basin of the U.K. North Sea.  The
 company was listed by Inc. 500 as the 5th fastest growing private company in
 2000, up from its ranking of 21st in 1999, and the fastest growing private
 energy company for both years.  The company trades publicly as ATPG on the
 NASDAQ National Market.  ATP filed its Form 10-K on April 5, 2001.  On April
 3, ATP filed Form NT 10-K extending the time necessary for filing the year
 2000 annual report.  Shortly before completion of the year-end 2000 audit of
 the company's financial statements, it was determined that two in a series of
 24 natural gas contracts in the company's hedging program required a different
 accounting treatment than originally used.
 
     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 and 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, 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.
 
     For further information, please contact T. Paul Bulmahn, Chairman and
 President, or Albert L. Reese Jr., SVP and Chief Financial Officer, both of
 ATP Oil & Gas Corporation, 713-622-3311.
 
 SOURCE  ATP Oil & Gas Corporation