ATP Oil & Gas Corporation

Transcription

1 ATP Oil & Gas Corporation Investor Presentations West Coast USA June 13-17, 2005 Albert L. Reese Jr., Chief Financial Officer

2 Forward Looking Statement This presentation contains projections and other forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of These projections and statements reflect the Company s current view with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved, and actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in the Company documents filed with the Securities and Exchange Commission. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, or the solicitation of a proxy or an attempt to influence any voting of securities, by any person. 2

3 ATP s Goals Since 1991 ATP has focused its strategy on: Acquiring Developing Operating Producing 2004 Offshore Energy Achievement Innovation/Technology Award 3

4 Areas of Operation Gulf of Mexico (1) 59 blocks 1991 Shelf 2000 Off the Shelf to 1, Deeper water to 3,000 North Sea 12 blocks 2000 United Kingdom Sector 2003 Dutch Sector Gulf of Mexico North Sea (1) Blocks as of 6/13/05. 4

5 Strong Reserve Position Proved reserves of 275 Bcfe at 12/31/04 SEC pre-tax PV 10% of $733 million Positive reserve revisions in 2003 and 2004 Reserve Engineers Ryder Scott (Gulf of Mexico and Dutch Sector- North Sea) Troy Ikoda (UK Sector- North Sea) Not yet included in proved reserves Cheviot in the North Sea 17 properties (1) in the Gulf of Mexico, many of which have well penetrations with logged pay in oil and/or gas reservoirs 5 (1) Includes 8 blocks acquired in 2005

6 Superb Execution 97% Success Rate 38 of 39 non-producing properties with PUD s converted to commercial production 200+ Bcfe of proved undeveloped reserves scheduled for development in Additional properties with well penetrations with logged pay in oil and/or gas reservoirs will also be developed The same strategy has been proven in all areas 6

7 2005 Acquisitions Gulf of Mexico March Lease Sale Seven blocks including Mississippi Canyon 667 and 668 contiguous to the northern boundary of Gomez Private party transaction SMI 166 North Sea Private party transaction Additional interest at the Tors increasing ownership to 100% The above acquisitions will become part of the development programs 7

8 2005 Development Programs Working Expected 1st Prospect Interest Production Region Operator Full Scale Development Mississippi Canyon % 2005 Gulf of Mexico ATP Tors 100% 2006 North Sea ATP Venture 50% 2006 North Sea ATP South Marsh Island 189/190 75% 2005 Gulf of Mexico ATP L-06d 50% 2005 North Sea ATP High Island 74 (1) 75% On Production Gulf of Mexico ATP Brazos 578 (1) 100% 2005 Gulf of Mexico ATP West Cameron 101 (1) 75% 2005 Gulf of Mexico ATP Additional Development West Cameron % On Production Gulf of Mexico ATP East Cameron % 2005 Gulf of Mexico ATP Matagorda Island % 2005 Gulf of Mexico ATP Eugene Island 71 75% On Production Gulf of Mexico ATP Garden Banks % On Production Gulf of Mexico ATP West Cameron 462/ % 2005 Gulf of Mexico ATP Brazos % 2005 Gulf of Mexico ATP (1) Properties or reservoirs not included in ATP's 12/31/04 reserve report. Red Recent add to 2005 development program 8

9 Representative 2005 Gulf of Mexico Development Projects High Island 74 8,900 Rob L reservoir, first production 2Q05, not yet included in proved reserves West Cameron 432 Late 2004 development targeted 2,900 sand, placed on production January 2005 Marg A-3 Matagorda Island 704/709 First production in 1998, third well added in 2005 and placed on production in May developments will notably increase production and proved developed reserves 9

10 Representative 2005 North Sea Development Projects Tors (UK Sector) Two platform development, well tests on four previously drilled wells, first production estimate 2006, recently increased ownership to 100% Venture (UK Sector) Begin development late 2005, two well tests, initial production late 2006 Top of reservoir L6d (Dutch Sector) Originally drilled in 1990 with a well test at 40 MMcf/d, PUD target for developments will notably increase production and proved developed reserves 10

11 Mississippi Canyon Gomez Key Features ~100 Bcfe proved reserves at 12/31/04 5 wells encountered hydrocarbons; 4 can be re-entered Tested at 134 MMcfe/d in 4Q04 ATP operates with a 100% W.I. Development Plans 2005 Complete two wells in Southern section, lay pipeline and retrofit platform Initial production projected in 4Q05 Future Complete two additional wells Develop the two proved and evaluate five other identified reservoirs MC 711 has the potential to add 100 MMcfe/d net to ATP s current daily production rate 11

12 Mississippi Canyon Gomez June Development Plan Update 1Q05 and 2Q05 Facility throughput upsized: 20,000 Bbls per day 60,000 Mcf per day Facilities under construction All pipe ordered and in place Drilling rig under contract Facilities under construction New Iberia May 2005 June 2005 Cal Dive International selected to lay the two 27 mile oil and gas pipelines 12

13 Cheviot (UK North Sea) Key Features Originally drilled and developed on 2D seismic ATP acquired in 21st Licensing Round based on 3D seismic Produced 16 million barrels from with less than 8% recovered of original oil in place of 232 MMBbls 41,800 acres comprised of original Emerald Field, other identified drilled reservoirs and potential exploratory opportunities ATP operates with a 100% W.I. Cheviot, potentially ATP s largest field, not yet included in ATP s reserve report 13

14 Cheviot (UK North Sea) 2005 Program Complete new 3-D seismic interpretation Complete detailed G&G reservoir studies Formulate redevelopment plan Keys to booking proved reserves at year end 2005 Innovative development Surrounding opportunities 14

15 Financial Strength Apr Term loan increased to $350 million, interest rate reduced, flexibility added Dec $53 million equity transaction Sep Term loan increased to $220 million, interest rate reduced, flexibility added Mar $185 million five year term loan Proforma Mar. 31, 2005 cash on hand $200 million 15

16 350% 300% 250% 200% 150% 100% 50% 0% -50% ATP Stock Price Appreciation 18 Month Price Appreciation ATP 273% Peers 33% M-04 A-04 M-04 J-04 J-04 A-04 S-04 O-04 N-04 D-04 J-05 F-05 M-05 A-05 M-05 J J-04 F-04

17 Financial Growth Production Growth Price Realization Growth Future Growth is an E&P Company s Future 17

18 Financial Income Growth Growth 519% (4Q03-1Q05) $13.6 $24.5 $19.0 $22.3 $29.1 $4.7 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 1Q05 1Q04 %Change Production (Bcfe) % Price realizations: Oil ($/bbl) Gas ($/Mcf) 6.32 $ $ 5.11 $ 29% $ 24% Revenue ($millions) $ 37.0 $ % EBITDAX ($millions) $ 28.9 $ % 18

19 Continued Production Growth % annual increase Forecast Over 200 Bcfe of PUD s to be developed SMI 189/190, L-06d, WC 432, etc. Mississippi Canyon 711 (Gomez) Tors New acquisitions 2008 and Beyond Cheviot multi-well developments Future acquisitions Five Years of Production Growth

20 Continued Price Realization Growth Average Annual Hedge Price ($/MMbtue) $8.29 $5.21 $ (13.0 Bcfe) (12.4 Bcfe) (4.1 Bcfe) Hedged contract value of $112 million for , representing 16.4 Bcfe (1) of production (1) Only includes fixed forward and swap contracts. 20

21 Significant PV 10 Value In Excess Of Cost ATP Proved Reserves After Tax PV 10 $520 million $317 61% ATP 22% PEERS $203 39% 78% Net Booked Cost PV10 Value in Excess of Cost Note: Peers include SGY, SKE, REM, and EPL PV10 value after all future development costs, operating expenses, abandonment costs, differentials, and income taxes 21

22 ATP Cash Flow Per Share Estimates ATP $2.49 CAGR 80% $3.61 $ E(1) 2006E(1) CAGR 14% Peers E(1) 2006E(1) Source: First Call Estimates June

23 2005 Estimates Production forecast 2Q05 3Q05 will be roughly flat with 4Q04 and 1Q05, then significantly ramp up in 4Q05 MC 711, L-06d, and SMI 189/190 will be major drivers of production growth in 4Q05 Year end production per day objective 160 MMcfe/d (Volvo Challenge), more than double current rate Expect to add proved reserves at Cheviot and several Gulf of Mexico properties Expect to move an additional Bcfe into the proved developed category in

24 Market Cap Potential What could an exit rate of 160 MMcfe/d mean for ATP? Companies With Production Mmcfe /d Cabot Oil & Gas Stone Energy Spinnaker Exploration Company Magnum Hunter Mean Market Cap. (millions) $1,638 $1,210 $1,093 $1,564 $1,376 ATP s Market Cap is approximately $635 million Note: Market capitalization data as of June 6,

25 Investment Highlights Financial strength to execute 2005 program Attractive market cap entry point Consistent execution 97% completion rate of PUD s to PDP s Positive reserve revisions in 2003 and 2004 Five years ( ) of production increases forecast Positive step changes Production (Gomez) Reserves (Cheviot) Incentivized management & employees Every employee an owner (38% inside ownership) The Volvo Challenge 25

26 ATP Oil & Gas Corporation - NASDAQ: ATPG ATP Oil & Gas Corporation 4600 Post Oak Place, Suite 200 Houston, TX ATP Oil & Gas (UK) Limited Victoria House, London Square, Cross Lanes Guildford, Surrey GU1 1UJ United Kingdom 44 (0) ATP Oil & Gas (Netherlands) B.V. Water-Staete Gebouw Dokweg 31 (B) 1976 CA IJmuiden The Netherlands 31 (0)

27 The 2005 Volvo Challenge If in 2005 ATP: Achieves a 2005 production exit rate of 160 MMcfe/d Replaces 200% of 2005 Production Completes the development of Mississippi Canyon 711 Completes a number of projects in the North Sea and Gulf of Mexico ATP will achieve a dramatic increase in producing properties, production and reserves ATP will award each of its 52 employees a 2006 Volvo S-60 VOLVO S-60S 27

28 Hedged Production Volumes Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Gulf of Mexico: Fixed Forwards and Swaps Natural Gas Volumes (MMMBtu) 2,520 2,425 2,300 2,239 9,484 1, ,710 Price ($/MMbtu) $ 5.60 $ 6.23 $ 6.27 $ 6.54 $ 6.15 $ 7.38 $ - $ - $ - $ 7.38 Crude Oil Volumes (MBbls) Price ($/bbl) $ $ $ $ $ $ $ $ $ Equivalents Volumes (MMMBtue) 3,222 3,108 2,990 2,791 12,111 2, ,513 Price ($/MMbtue) $ 5.77 $ 6.40 $ 6.43 $ 6.63 $ 6.29 $ 7.51 $ 8.07 $ 8.07 $ 8.07 $ 7.69 Puts Natural Gas Volumes (MMMBtu) Floor Price ($/MMBtu) $ 5.01 $ 5.01 $ 5.01 $ 5.01 North Sea: Swaps Natural Gas (1) Volumes (MMMBtu) Price ( /MMBtu) The above are hedges, derivatives and fixed price contracts that are in effect at June 7, 2005 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 9, 2005: 2000 MMBtu/d January - March 2006 at 6.32/MMBtu 6.32/MMBtu approximates $12.01/MMBtu using the translation rate of $1.90 to June 8, 2005: 2000 MMBtu/d January - March 2006 at 6.32/MMBtu 7.31/MMBtu approximates $13.89/MMBtu using the translation rate of $1.90 to (1) Swap for 1Q05 liquidated January 13, 2005 for approximately $710,000 in favor of the Company Avg. Hedge Price Calculation US UK* Consolidated MMcfe $/MMbtue MMcfe $/MMbtue MMcfe $/MMbtue 12,111 $ $ ,381 $ 6.34 * Assumes a translation rate of $ to at December 31, Avg. Hedge Price Calculation US UK* Consolidated MMcfe $/MMbtue MMcfe $/MMbtue MMcfe $/MMbtue 3,513 $ $ ,053 $ 8.29 * Assumes a translation rate of $ to

29 Reconciliation of Non-GAAP Financial Items ATP Oil & Gas Corporation Rolling EBITDAX Calculation Consolidated Quarter Quarter Quarter Quarter Quarter Quarter ($thousands) 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Consolidated Net Income (loss) Net income (loss) (38,636) (2,393) 6, (3,774) 1,000 Loss (gain) on disposition of properties - (2,982) (3,029) Consolidated Net Income (loss) (38,636) (5,375) 3, (3,774) 1,000 Consolidated EBITDAX Add to Consolidated Net Income: Income Taxes 20, Consolidated Interest Expense 2,806 3,749 6,010 6,179 6,324 6,289 DD&A 9,144 11,583 13,961 11,697 18,396 20,502 G&G Impairment 1, Non-cash compensation expense Other non-cash charges: Accretion expense (Gain) loss on abandonment 564 (256) (17) Extraordinary items: Loss on unsuccessful property acquisition 8, Loss on extinguishment of debt - 3, Cumulative effect Consolidated EBITDAX 4,716 13,603 24,529 19,004 22,307 29,116 29

30 CSFB Amendment Key features of $350 million facility include Over $120 million in additional liquidity Elimination of 2nd Lien: $35 million at LIBOR+10.0% Overall interest rate reduced Previous LIBOR + 6.8% New LIBOR + 5.5% Spread reduction 20% Substantially more flexible covenant package Maturity extended 1 year to April

31 PV 10 Excess of Book Value After tax After Tax PV 10 Value Book Value PV 10 Book/ 12/31/ /31/2005 Excess of PV 10 % Book Value ATP $ 520,283 $ 202,690 $ 317,593 39% Peer Average $ 907,946 $ 704,550 $ 203,396 76% Peers: EPL, REM, SGY, and SKE 31

32 Estimated Cash Flow Cash Flow E (1) 2006E (1) # Shares CAGR ATP $2.49 $3.61 $ ,966,000 80% Peer Average $8.00 $10.16 $ ,323,750 14% Peers: EPL, REM, SGY, and SKE (1). Source: First Call Estimates June 3,

33 Stock Price Appreciation ATPG Peer Average J-04 $ 5.75 $ F-04 $ % $ % M-04 $ % $ % A-04 $ % $ % M-04 $ % $ % J-04 $ % $ % J-04 $ % $ % A-04 $ % $ % S-04 $ % $ % O-04 $ % $ % N-04 $ % $ % D-04 $ % $ % J-05 $ % $ % F-05 $ % $ % M-05 $ % $ % A-05 $ % $ % M-05 $ % $ % J-05 $ % $ % 33 Peers: EPL, REM, SGY, and SKE