ATP Oil & Gas Corporation

Transcription

1 ATP Oil & Gas Corporation CEO Energy/Power Conference Investor Presentation New York, New York September 6-8, 2005 T. Paul Bulmahn, President and Chairman Albert L. Reese Jr., Chief Financial Officer 2005 CEO Energy/Power Conference 2005 CEO Energy/Power Conference

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 Philosophy ATP Core Areas Gulf of Mexico U.K. North Sea Dutch North Sea Offices in each core area have: Expert technical teams Regional know-how based on decades of experience Entrepreneurial, find-a-way to make it work attitudes Willingness to share technology and best practices across core areas 3

4 ATP Steps Step 1: Initial Operations 1991 ATP formed 1994 Two simultaneous operations in Gulf of Mexico Step 2: Expansion 1998 Acquisition of Statoil's GOM shelf properties 2000 Entered North Sea 2001 IPO 2003 First international development Step 3: Rapid Production Growth 2005 Simultaneous operations in 3 countries 4

5 2005 Areas of Operation Houston (1991) Gulf of Mexico North Sea Guildford (2000) IJmuiden (2003) ATP will soon have production in its three core areas (US, UK, and Netherlands) 5

6 2005 Capital Program Diversified project portfolio provides exposure Domestic and international Traditional shelf and deep water Oil and gas 90+% capital investment is development related Shelf developments are vital to strategy Deepwater and international presence is growing 2005 Capex $350 - $400 Million 54% 39% 7% Gulf of Mexico UK North Sea Dutch North Sea 6

7 Step Change in Project Size Material Project has taken on a whole new meaning at ATP as measured by CAPEX and production impact Ladybug (GB 409) and Helvellyn enabled ATP to develop larger projects at Mississippi Canyon 711 and Tors Material Projects CAPEX $175+ MM $175+ MM $30 MM $49 MM Ladybug ('00-'01) Helvellyn ('02-'03) MC 711 ('05-'06) Tors ('05-'06) 7

8 Step Change in Production Mississippi Canyon 711, Tors, and L-06d will more than double and possibly triple current daily production North Sea will be a significant contributor to production increase Production Impact 160+ (MMcfe/d) H05 Material Projects 8

9 Step Change in Revenue and EBITDAX Revenue and EBITDAX are expected to increase Market estimates: Revenue (2005E 2006E) 141% increase EBITDAX (2005E 2006E) 173% increase ATP is not aware of another E&P with a Market Capitalization of approximately $1 billion that expects Production, Revenue and EBITDAX to more than double within a year Revenue EBITDAX $421 $358 $88 $80 $70 $116 $175 $63 $54 $41 $79 $ E 2006E E 2006E (1) Source: I/B/E/S Estimates August 23, 2005 Actual Analysts estimates (1) 9

10 Step Change in Cash Flow Per Share (1) Cash flow per share estimates indicate ATP will grow dramatically faster than its Peers (2) ATP trading at discount to Peers 2006 Price / Cash Flow Per Share ATP 3.3x Peers 4.1x ATP-Cash Flow Per Share $9.77 PEERS (2) -Cash Flow Per Share $ % $ % $ Analysts estimates (1) (1) Source: I/B/E/S Estimates August 23, 2005 (2) Peers include Lehman s small and mid capitalization coverage universe. 10

11 Share Performance as a Public Company Since our IPO February 7, 2001, a $1.0 million investment in ATP s stock is now worth $2.3 million ($ millions) $3.0 $2.5 $ % +78% $1.5 $ % -9% $0.5 $- ATP Oil&Gas Small & Mid Cap Peers OSX S&P Feb Aug-05 ATP has returned 128% to its investors since February 7, 2001, substantially outperforming its Peer Group, OSX and S&P 500 Note: Peers include Lehman s small and mid capitalization coverage universe 11

12 Step Change in Financial Strength June 30, 2005 Pro Forma ($ millions) Actual Preferred Offering (1) Working Capital $ 80.3 $ Cash $ $ Long-term Debt $ $ Net Long-term Debt $ $ 54.0 Shareholder's Equity $ 50.3 $ Net Debt/Book Capitalization 82% 20% Proved Reserves (2) (Bcfe) Net Debt/Proved Reserves ($/Mcfe) $ 0.81 $ 0.20 SEC PV 10 (2) $ $ Net Debt/SEC PV 10 30% 7% (2) As of December 31, $175 million Preferred Equity issuance substantially improves credit metrics (1) Received net proceeds of $169.5 million from a $175 million perpetual preferred offering on August 3,

13 Mississippi Canyon Gomez Property Synopsis ~100 Bcfe proved reserves at 12/31/04 Tested at 134 MMcfe/d in 4Q04 Initial production projected 4Q05 September Update Impact of Katrina Pipelines: ~90% complete Facilities: Rowan Midland modifications underway Well Operations: Nearing completion MC 711 has the potential to add 100 MMcfe/d net to ATP s current daily production rate 13

14 Tors Property Synopsis ~84 Bcfe proved reserves at 12/31/04 4 well tests, combined 82 MMcf/d: Kilmar: 12 and 33 MMcf/d Garrow: 18 and 19 MMcf/d Initial production projected early 2006/very late 2005 September Update Pipelines: ~50% complete Facilities: Kilmar jacket and deck installed Well Operations: ENSCO 70 rig on location Tors has the potential to add MMcf/d net to ATP s current daily production rate 14

15 L-06d Property Synopsis ~14 Bcfe proved reserves at 12/31/04 Well test 3Q05 53 MMcf/d Initial production projected 4Q05 September Update Pipelines: Installation complete Facilities: Host platform installed. Hook-up underway Well Operations: Perforation and completion of the well complete L-06d has the potential to add 20 MMcf/d net to ATP s current daily production rate 15

16 Cheviot Property Synopsis Acquired in 2003 with 100% W.I. Old Emerald Field Original oil and gas in place Oil MMbbls Gas 59 Bcf Produced 16 million barrels from with less than 8% recovered of original oil in place of 232 MMBbls Expect to book reserves in 2005 Undeveloped locations with well penetrations Identified exploration opportunity Development Progress to Date Proprietary 3-D seismic shoot completed 4Q04 Evaluating 3-D seismic and engineering data Cheviot, potentially ATP s largest field, not yet included in ATP s reserve report 16

17 Investment Highlights ATP organization designed to leverage extensive offshore experience and technical knowledge Incentivized management & employees Every employee an owner (37% inside ownership) The Volvo Challenge Financial strength to fund development program Material step changes Production (Gomez and Tors) Reserves (Cheviot) Substantial inventory North Sea (Cheviot and Venture) Gulf of Mexico (10 Blocks acquired at Lease Sale in 2005, including 6 with well penetrations, addtl GOM properties) Exceptional growth projected in Production, Revenue, EBITDAX, and Cash Flow Compelling valuation 17

18 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)

19 Hedges 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 2,160 1,183 1, ,942 Price ($/MMbtu) $ 5.60 $ 6.23 $ 6.27 $ 6.54 $ 6.15 $ 8.08 $ 8.35 $ 8.35 $ 8.35 $ 8.23 Crude Oil Volumes (MBbls) Price ($/bbl) $ $ $ $ $ $ $ $ $ Equivalents Volumes (MMMBtue) 3,222 3,108 3,100 2,901 12,331 2,808 1,565 1, ,745 Price ($/MMbtue) $ 5.77 $ 6.40 $ 6.56 $ 6.76 $ 6.36 $ 8.03 $ 8.28 $ 8.28 $ 8.21 $ 8.17 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 August 31, 2005 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 Gas Fixed Forwards: August 26, 2005: 5000 MMBtu/d January - March 2006 at $10.75/MMBtu August 26, 2005: 5000 MMBtu/d April - October 2006 at $8.85/MMBtu August 26, 2005: 5000 MMBtu/d April - October 2006 at $8.85/MMBtu August 29, 2005: 3000 MMBtu/d April - October 2006 at $9.25/MMBtu (1) Swap for 1Q05 liquidated January 13, 2005 for approximately $710,000 in favor of the Company. 19

20 Share Price Performance ATP Oil&Gas Average Small & Mid Cap Peers OSX S&P Feb-01 $ $ , Aug-05 $ $ ,219.7 % Change 128% 78% 22% -9% Average Small & 7-Feb-01 Mid Caps CHK CRK DNR FST THX KWK SGY SFY VPI Price $ $ 9.20 $ $ $ $ $ 3.13 $ $ $ Shares $ 436, ,564 34,219 46,352 46,330 28,213 18,467 26,271 21,244 63,963 Market Cap $ 8,538,828 $ 1,394,389 $ 438,345 $ 480,670 $ 1,616,917 $ 983,787 $ 57,802 $ 1,604,633 $ 733,555 $ 1,228, Aug-05 CHK CRK DNR FST THX KWK SGY SFY VPI Price $ $ $ $ $ $ $ $ $ $ Shares $ 710, ,110 40,720 57,130 62,010 28,730 75,910 26,930 28,600 66,980 Market Cap $ 24,753,548 $ 8,740,126 $ 1,064,014 $ 2,528,003 $ 2,644,727 $ 1,608,880 $ 3,065,246 $ 1,414,902 $ 1,262,976 $ 2,424,676 20

21 Analysts Estimates ATPG Peers CHK XEC CRK DNR FST THX PXP KWK SGY SFY VPI WLL EPS 2005 $0.20 $3.53 $2.26 $4.07 $2.20 $2.92 $3.56 $6.52 $1.84 $1.01 $6.79 $3.94 $3.19 $ $2.68 $3.88 $2.39 $3.68 $2.60 $2.98 $4.33 $7.74 $3.92 $1.50 $6.28 $3.47 $3.24 $4.44 CFPS 2005 $3.60 $9.31 $5.83 $10.07 $4.98 $5.41 $12.09 $19.48 $6.14 $2.19 $19.54 $9.77 $6.38 $ $9.77 $10.13 $6.59 $9.86 $4.95 $5.83 $13.74 $22.34 $9.25 $3.13 $18.82 $9.14 $6.62 $11.35 EBITDAX ($MM) 2005 $131 $624 $2,411 $722 $212 $352 $817 $593 $456 $196 $530 $307 $564 $ $358 $727 $2,728 $919 $232 $370 $923 $688 $740 $272 $536 $300 $611 $407 Revenue ($MM) 2005 $175 $933 $3,773 $1,024 $278 $499 $1,120 $752 $855 $300 $710 $429 $952 $ $421 $1,038 $3,998 $1,244 $289 $534 $1,282 $880 $1,110 $390 $692 $429 $985 $625 Source: I/B/E/S Consensus Estimates - International Broker's Estimate System 8/19/05 21

22 EBITDAX ATP Oil & Gas Corporation Rolling EBITDAX Calculation FY FY FY FY ($thousands) Consolidated Net Income (loss) Net income (loss) (21,383) (4,700) (50,801) 1,356 Loss (gain) on disposition of properties - (6,011) Consolidated Net Income (loss) (21,383) (4,700) (50,801) (4,655) Consolidated EBITDAX Add to Consolidated Net Income: Income Taxes (11,510) (2,581) 21, Consolidated Interest Expense 10,039 10,418 9,678 22,262 DD&A 53,428 43,390 29,378 55,637 Exploration - - G&G 1, Impairment 24,891 6,844 11,670 - Non-cash compensation expense 3, (39) - Other non-cash charges: - - Accretion expense 2,752 2,069 (Gain) loss on abandonment 4,973 (251) Extraordinary items: - - Loss on unsuccessful property acquisition 3,147 8,192 - Loss on extinguishment of debt 926 3,352 3,326 Cumulative effect (662) - Consolidated EBITDAX 62,902 53,966 41,075 79,443 22

23 2005 Developments 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 Ship Shoal % 2006 Gulf of Mexico ATP South Marsh Island % 2005 Gulf of Mexico ATP L-06d 50% 2005 North Sea ATP High Island 74 75% On Production Gulf of Mexico ATP Brazos % On Production Gulf of Mexico ATP West Cameron % 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 Red - Recent additions to 2005 development program. 23