Business Services Industry
ATP Oil & Gas Corporation Announces Record Production and Second Quarter 2006 Results
Business Wire, August 3, 2006
CONSOLIDATED BALANCE SHEETS
(In Thousands)
June 30, December 31,
2006 2005
---------- -----------
Assets
Current assets:
Cash and cash equivalents $ 202,809 $ 65,566
Restricted cash 12,753 12,209
Accounts receivable (net of allowances of
$348 and $367) 100,975 83,571
Derivative asset 3,123 -
Other current assets 8,704 4,454
---------- -----------
Total current assets 328,364 165,800
---------- -----------
Oil and gas properties:
Oil and gas properties (using the
successful efforts
method of accounting) 1,162,404 899,284
Less: Accumulated depletion, impairment
and amortization (333,103) (271,863)
---------- -----------
Oil and gas properties, net 829,301 627,421
---------- -----------
Furniture and fixtures, net 1,179 1,175
Deferred tax asset 5,004 4,025
Deferred financing costs, net 26,383 17,922
Other assets, net 11,639 7,420
---------- -----------
44,205 30,542
---------- -----------
Total assets $1,201,870 $ 823,763
========== ===========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accruals $ 168,243 $ 144,675
Current maturities of long-term debt 5,250 3,500
Current maturities of long-term capital
lease 22,247 8,679
Asset retirement obligation 17,082 7,097
Derivative liability - 1,282
Deferred tax liability 987 -
---------- -----------
Total current liabilities 213,809 165,233
Long-term debt 514,182 337,489
Long-term capital lease - 34,437
Asset retirement obligation 76,296 60,267
Deferred tax liability 2,093 -
Other long-term liabilities and deferred
obligations - 8,826
---------- -----------
Total liabilities 806,380 606,252
---------- -----------
Shareholders' equity:
Preferred stock: $0.001 par value 352,662 184,858
Common stock: $0.001 par value 30 29
Additional paid-in capital 144,780 149,267
Accumulated deficit (104,822) (101,333)
Accumulated other comprehensive income 3,751 (4,693)
Unearned compensation - (9,706)
Treasury stock, at cost (911) (911)
---------- -----------
Total shareholders' equity 395,490 217,511
---------- -----------
Total liabilities and shareholders'
equity $1,201,870 $ 823,763
========== ===========
CONSOLIDATED INCOME STATEMENTS
(In Thousands, Except Per Share Amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2006 2005 2006 2005
-------- ------- -------- --------
Oil and gas revenues $108,885 $33,488 $154,130 $ 70,468
-------- ------- -------- --------
Costs and operating expenses:
Lease operating 21,259 6,007 31,952 10,581
Exploration 367 2,173 508 2,507
General and administrative 4,078 5,163 9,834 9,354
Stock-based compensation 3,297 - 5,526 -
Depreciation, depletion and
amortization 43,249 15,201 60,519 35,704
Accretion 1,671 600 3,218 1,179
(Gain) loss on abandonment 3,451 76 3,506 76
-------- ------- -------- --------
Total costs and operating
expenses 77,372 29,220 115,063 59,401
-------- ------- -------- --------
Income from operations 31,513 4,268 39,067 11,067
-------- ------- -------- --------
Other income (expense):
Interest income 1,207 998 1,780 1,488
Interest expense (12,097) (8,595) (23,269) (14,884)
Other income - 7 8
-------- ------- -------- --------
Total other income (expense) (10,890) (7,590) (21,489) (13,388)
-------- ------- -------- --------
Income (loss) before income
taxes 20,623 (3,322) 17,578 (2,321)
Provision for income taxes (3,263) - (3,263) -
-------- ------- -------- --------
Net income (loss) $ 17,360 $(3,322) $ 14,315 $ (2,321)
======== ======= ======== ========
Preferred dividends (10,986) - (17,804) -
-------- ------- -------- --------
Net income (loss) available to
common shareholders $ 6,374 $(3,322) $ (3,489) $ (2,321)
======== ======= ======== ========
Net income (loss) per common
share - basic and diluted $ 0.21 $ (0.11) $ (0.12) $ (0.08)
======== ======= ======== ========
Weighted average number of
common shares:
Basic 29,715 28,979 29,576 28,952
======== ======= ======== ========
Diluted 30,396 29,794 30,302 29,788
======== ======= ======== ========
CONSOLIDATED CASH FLOW DATA
(In Thousands)
Six Months Ended
June 30,
--------------------
2006 2005
--------- ---------
Cash flows from operating activities:
Net income (loss) $ 14,315 $ (2,321)
Adjustments to operating activities 76,799 41,505
Changes in assets and liabilities (44,527) (414)
--------- ---------
Net cash provided by operating activities 46,587 38,770
--------- ---------
Cash flows from investing activities:
Additions to oil and gas properties (203,445) (146,957)
Additions to furniture and fixtures (250) (182)
Decrease in restricted cash 129 -
--------- ---------
Net cash used in investing activities (203,566) (147,139)
--------- ---------
Cash flows from financing activities:
Proceeds from long-term debt 178,500 132,113
Principal payments of long-term debt (875) (1,425)
Deferred financing costs (11,116) (10,416)
Issuance of preferred stock, net of issuance
costs 145,463 -
Principal payments of capital lease (20,869) -
Exercise of stock options 4,231 1,039
Other - (68)
--------- ---------
Net cash provided by financing activities 295,334 121,243
--------- ---------
Effect of exchange rate changes on cash (1,112) (766)
--------- ---------
Net increase (decrease) in cash and cash
equivalents 137,243 12,108
Cash and cash equivalents, beginning of period 65,566 102,774
--------- ---------
Cash and cash equivalents, end of period $ 202,809 $ 114,882
========= =========
Hedges, Derivatives and Fixed Price Contracts
2006
---------------------------------------------
1Q 2Q 3Q 4Q FY
------------ ----------------------------------------------
Gulf of
Mexico:
Fixed
Forwards
and Swaps
------------
Natural Gas
Volumes
(MMMBtu) 2,160.0 1,363.0 1,376.0 1,073.0 5,972.0
Price
($/MMBtu) $ 8.08 $ 8.50 $ 8.50 $ 9.83 $ 8.59
Crude Oil
Volumes
(MBbls) 109.2 78.7 294.4 294.4 776.7
Price
($/Bbl) $ 47.14 $ 51.68 $ 65.21 $ 65.21 $ 61.30
Equivalents
Volumes
(MMMBtue) 2,815.2 1,835.2 3,142.4 2,839.4 10,632.2
Price
($/MMBtue)$ 8.03 $ 8.53 $ 9.83 $ 10.48 $ 9.30
Puts
-----------
Crude Oil
Volumes
(MBbls) 378.5 506.0 506.0 1,390.5
Floor Price
($/Bbl) $ 57.50 $ 57.50 $ 57.50 $ 57.50
North Sea:
Fixed
Forwards
and Swaps
------------
Natural Gas
Volumes
(MMMBtu) 399.0 1,256.0 1,655.0
Price
($/MMBtu)
(1) $ 11.40 $ 15.70 $ 14.69
------------- ------------------------ -------- -----------
2007 2008
-------------------------------------------- --------
1Q 2Q 3Q 4Q FY FY
------------ -------------------------------------------- --------
Gulf of
Mexico:
Fixed
Forwards
and Swaps
------------
Natural Gas
Volumes
(MMMBtu) 1,350.0 1,350.0
Price
($/MMBtu) $ 10.89 $ 10.89
Crude Oil
Volumes
(MBbls) 297.0 345.8 395.6 395.6 1,434.0 366.0
Price
($/Bbl) $ 69.61 $ 70.74 $ 70.90 $ 70.90 $ 70.60 $ 76.55
Equivalents
Volumes
(MMMBtue) 3,132.0 2,074.8 2,373.6 2,373.6 9,954.0 2,196.0
Price
($/MMBtue) $ 11.30 $ 11.79 $ 11.82 $ 11.82 $ 11.65 $ 12.76
Puts
-----------
Crude Oil
Volumes
(MBbls) 585.0 91.0 92.0 92.0 860.0
Floor Price
($/Bbl) $ 57.88 $ 60.00 $ 60.00 $ 60.00 $ 58.56
North Sea:
Fixed
Forwards
and Swaps
------------
Natural Gas
Volumes
(MMMBtu) 1,800.0 1,800.0
Price
($/MMBtu)
(1) $ 15.59 $ 15.59
----------------------------------------------------------------------
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 Gulf of Mexico Crude Oil Fixed Forwards:
August 1, 2006: 500 bopd April 2007 - December 2007 at $78.25/bbl
August 1, 2006: 1,000 bopd January 2008 - December 2008
at $76.55/bbl
July 14, 2006: 200 bopd January 2007 - December 2007 at $80.10/bbl
June 23, 2006: 500 bopd January 2007 - June 2007 at $73.62/bbl
June 23, 2006: 1,000 bopd July 2007 - December 2007 at $72.87/bbl
Recent Gulf of Mexico Crude Oil Puts:
June 23, 2006: 1,000 bopd January 2007 - December 2007
at $60.00/bbl floor
----------------------------------------------------------------------
(1) Assumes $1.86 to GBP 1.00 currency translation rate.
Oil and Gas Revenue Reconciliation (1)
(In Thousands)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------------------
2006 2005 2006 2005
-------- -------- -------- -------
Oil and gas revenues, including
the effects of settled
derivatives (1) $108,877 $33,316 $154,102 $70,295
Hedging ineffectiveness and other
(2) 8 172 28 173
-------- -------- -------- -------
Oil and gas revenue per income
statements $108,885 $33,488 $154,130 $70,468
======== ======== ======== =======
(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,
-----------------
2006 2005
-------- -------
Cash flows from operating activities:
Net income (loss) $ 14,315 $(2,321)
Adjustments to operating activities 76,799 41,505
-------- -------
Cash flows from operating activities
before changes in assets and liabilities 91,114 39,184
Changes in assets and liabilities (44,527) (414)
-------- -------
Net cash provided by operating activities $ 46,587 $38,770
======== =======
COPYRIGHT 2006 Business Wire
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