atp oil & gas corporation
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1
ATP Oil & Gas Corporation
NYSSA 2nd Annual
Oil Exploration
Industry Conference
November 21, 2002
NASDAQ: ATPG
ATPOil & Gas
Corporation
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 1934. 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.
ATPOil & Gas
Corporation
Area of Operations
Over 50 blocks in Gulf of Mexico7 blocks in North Sea
ATPOil & Gas
Corporation
4
Company Overview
• Development and production company
• Offshore solution
provider for exploration
oriented majors and
independents
• Unique, repeatable strategy
ATPOil & Gas
Corporation
SMI 189/190
5
Our D&P Strategy Works ATPOil & Gas
Corporation
For the Sellers
Eliminates future capital risk
Allows them to recover some sunk
costs
Diverts capital to other core projects
For ATP
Eliminates exploration risk
Reduces acquisition &
development costs
Shortens duration of risked capital
6
Company History ATPOil & Gas
Corporation
1995 2002200219971991
ATP incorporated on August 8th
ATP completes its first sub-sea development
ATP acquires all Statoil’s properties
on the Outer-Continental Shelf
ATP is one of the first companies to utilize horizontal drilling offshore
1998
ATP awarded UKCS Blocks by DTI in a rare Out- of-Round license
ATP was founded in 1991 and completed an initial public offering in February 2001
7
Company Profile
• Production:• 2001 Actual: 25.7
Bcfe• 2002 Guidance: 26.5 Bcfe• Actual Through 9/30/02: 21.4
Bcfe
• Proven reserves 2001: 235 Bcfe
• 3-year reserve replacement: 374%
• 3-year F&D costs:$0.96/Mcfe
ATPOil & Gas
Corporation
8
Recent Focus ATPOil & Gas
Corporation
• Increasing financial flexibility – Reduced bank debt $14 million in 2002– Increased working capital $30 million in 2002– Discretionary cash flow increased from $4 to $48 million
(‘97-’01)– Profitable in second and third quarter 2002
• Exceeding operating goals– Beat first, second, and third quarter production guidance
• Developing North Sea reserves– Pipeline installed and well drilling at Helvellyn– First production in 2003
9
2002 Development Activity
Gulf of Mexico ATP is moving 32 Bcfe from
non-producing to proven developed producing properties (PDP) for less than $20 million
ATPOil & Gas
Corporation
10
3Q02 Production and Development Highlights
3Q02 Production 6.536 Bcfe
• an increase over the same period in 2001 • an increase over previously announced
production guidance of 6.500 Bcfe. ATP achieved this production increase in spite of curtailments due to Hurricanes Isidore and Lili.
2002 YTD Production 21.5 Bcfe
• an increase of 16% over the same period in 2001
• a company record for first nine months production
2002 YTD Development
• 25 Bcfe moved to PDP• Larger PDP component of reserves at 9/30/02
than 12/31/01
ATPOil & Gas
Corporation
11
Near Term 2002 Development ATPOil & Gas
Corporation
• Q3 Activity– Recompletion of EC 240, SM 7 and WC 462– Production to contribute in 4Q02
• Q4 Development of 7 projects– 3 Drilling: EI 71, WC 101, WC 284– 4 recompletions and stimulations– Production to contribute in 1Q 03
Production on schedule for the 7th consecutive year of increase
4th Quarter 2002Development Operations
ATPOil & Gas
Corporation
WC 101
WC 284 EI 71
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West Cameron 101 ATPOil & Gas
Corporation
Water Depth: 43’Working Interest: 100%Net Revenue Interest: 73.33%Platform/Wells: One well caisson.Producing Sands: Miocene Marg A 53 thru 55 Sands at
13,000’ TVD
Current Status:
Caisson waiting on completion
Location:Offset Mobil L-2 well -555 MBO2 BCFGSuperior C-3, C-7 wells also
prod. 53 and 55 sands.
14
West Cameron 101 #2 Log ATPOil & Gas
Corporation
15
Future Development (2003 – 2005)
Future developments
100% of properties ATP operated
ATPOil & Gas
Corporation
North Sea Developments ATPOil & Gas
Corporation
17
Southern Gas Basin of North Sea ATPOil & Gas
Corporation
The Tors
Helvellyn
Venture
2002 Out of Round Award
18
HelvellynATPOil & Gas
Corporation
Water Depth: 90’Working Interest: 50%Net Revenue Interest: 50%Platform/Wells: SubseaFirst Production:Projected 2003
Producing Sands: Rotliegend/Carboniferous
First well drilled: 1985First well tested: 47/10-1 well tested at 29.4
MMcfepd
Current Status: Well drilling at 10,000 +/- feet(measured depth) Target depth 14,270 feet
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Helvellyn Development ATPOil & Gas
Corporation
Development 2002Projected production
2003
20
Helvellyn Development August 2002 Pipeline Lay
ATPOil & Gas
Corporation
21
Helvellyn DevelopmentWellhead Protection Structure
ATPOil & Gas
Corporation
Well Spudded September 8, 2002
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Venture ATPOil & Gas
Corporation
Development 2003Projected production
2004
23
The Tors 1 - Garrow ATPOil & Gas
Corporation
Development 2004Projected production
2005
24
The Tors 2 - Kilmar ATPOil & Gas
Corporation
Development 2004Projected production
2005
25
Third Quarter 2002 Financial Overview
ATPOil & Gas
Corporation
26
Debt Reduction Program ATPOil & Gas
Corporation
$86
$116
$100$90
$88
$0
$20
$40
$60
$80
$100
$120
$140
2000 2001 2Q02 3Q02 Nov-02
($ in millions)
27
First Nine Months 2002 Liquidity Improvement
ATPOil & Gas
Corporation
Working Capital Increased $30 million
+Bank and Subordinated Debt Decreased $12 million
=Overall Capital LiquidityImprovement $42 million
28
2002 Operating Performance
ATPOil & Gas
Corporation
($6)
$3 $2
$13
$22
$11
$18
$26
$20
($10)
($5)
$0
$5
$10
$15
$20
$25
$30
1Q02 2Q02 3Q02
Net Income
Discretionary Cash Flow
Revenue
($ in millions)
Gross Margin
82% YTD ‘02
Note: Revenues reflect the effects of settled hedging activity
29
Financial Strength ATPOil & Gas
Corporation
• Bank & subordinated debt/proven reserves(1)
$0.40 / Mcfe
• LTM EBITDA / Interest Expense 6.6x
• Bank & subordinated debt / LTM EBITDA 1.5x
• YTD 3Q02 Discretionary cash flow $42
million
(1) At September 30, 2002
30
Why Should ATP Be In Your Portfolio?
ATPOil & Gas
Corporation
• Comparable to larger offshore operators
31
Our Peers ATPOil & Gas
Corporation
Ticker Company % GOM % Gas % GOM % Gas
ATPG ATP Oil & Gas Corp. 66% 83% 100% 68%
EPL Energy Partners Ltd. 100% 29% 100% 54%
NFX Newfield Exploration Co. 58% 77% 66% 79%
PQUE Petroquest Energy, Inc. 52% 55% 52% 51%
REM Remington Oil & Gas Corp. 82% 57% 80% 58%
SGY Stone Energy Corp. 91% 57% 92% 65%
Median 74% 57% 86% 61%
3Q02 ProductionProven Reserves
32
Why Should ATP Be In Your Portfolio?
ATPOil & Gas
Corporation
• Comparable to larger offshore operators
• Attractive valuation
33
Attractive ValuationP/CFPS significantly below peers
ATPOil & Gas
Corporation
2002E P/CFPS 1.4X vs. Median 4.0X
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
ATPG SGY EPL Median NFX REM PQUE
Note: FC-CFPS $2.40; Price 11/06/02 $3.42
34
Attractive ValuationEV trades at a discount to NAV
ATPOil & Gas
Corporation
Enterprise Value / Proven Reserves ($/Mcfe)
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
ATPG EPL SGY Median REM PQUE NFX
Note: Debt as of 9/30/02; share price as of 11/8/02
35
Why Should ATP Be In Your Portfolio?
ATPOil & Gas
Corporation
• Comparable to larger offshore operators
• Attractive valuation
• Efficient offshore operator
36
Efficient Offshore OperatorLowest production costs in the
group
ATPOil & Gas
Corporation
Production Costs(1) / Mcfe
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
REM ATPG NFX Median PQUE EPL
(1) 3Q02 YTD 2002 LOE / 3Q02 YTD 2002 Production
37
Why Should ATP Be In Your Portfolio?
ATPOil & Gas
Corporation
• Comparable to larger offshore operators
• Attractive valuation
• Efficient offshore operator
• Rate of return focused
38
Rate of Return Focused3-year F&D costs under $1/Mcf
ATPOil & Gas
Corporation
($/Mcfe) = (Costs - divestitures - cap int. - cap g&a)
delta proven reserves + prod.
3-Year F&D Costs 1999-2001
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
ATPG EPL REM Median PQUE NFX SGY
39
Rate of Return FocusedCapital Efficiency
ATPOil & Gas
Corporation
Dollars Invested vs. EBITDA Returned(1)
0%
50%
100%
150%
200%
250%
300%
NFX EPL Median PQUE ATPG REM
(1) 3Q02 EBITDA per unit of production divided by 3 yr. ('99-'01) F&D costs.
40
Why Should ATP Be In Your Portfolio?
ATPOil & Gas
Corporation
• Comparable to larger offshore operators
• Attractive valuation
• Efficient offshore operator
• Rate of return focused
• History of producing results
41
History of Producing Results6 years of cash flow and revenue
growth
ATPOil & Gas
Corporation
Discretionary Cash Flow
2
49+4843
17
74
Revenue
90+
3
8884
43
208
($ in millions)
42
ATPOil & Gas
Corporation
261+235
126104
504739
Production (BCFE) Proven Reserves (BCFE)
26.5+
1 3
10
17
24 26
History of Producing Results6 years of production and reserve
growthOILGAS
43
ATP Oil & Gas Corporation ATPOil & Gas
Corporation
NASDAQ: ATPG
ATP Oil & Gas Corporation4600 Post Oak Place,
Suite 200Houston, TX 77027-9726
713-622-3311
ATP Oil & Gas (UK) LimitedVictoria House, London Square, Cross
LanesGuildford, Surrey GU1 1UJ
United Kingdom44 (0) 1483 307200
www.atpog.com
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