ATP Announces Record Earnings and Operating Results For First Quarter 2008

ATP Oil & Gas Corporation (NASDAQ:ATPG) today announced first quarter 2008 results which include record production, record revenues and record earnings. Highlights include: 3.6 MMBoe (21.6 Bcfe) of production, a 36% increase over first quarter 2007; $226.0 million of oil and gas revenue, a 56% increase over first quarter 2007; $46.8 million of net income, a 71% increase over first quarter 2007; Net income of $1.29 per diluted share. Oil and gas production increased 36% to 3.6 MMBoe (21.6 Bcfe) for the first quarter of 2008, compared to 2.6 MMBoe (15.9 Bcfe) for the first quarter of 2007. Oil production was 1.6 MMBbls and natural gas production was 11.8 Bcf for the first quarter of 2008, compared to 1.0 MMBbls and 9.8 Bcfe for the first quarter of 2007. Revenue from oil and gas production totaled $226.0 million for the first quarter of 2008, compared to $144.7 million for the first quarter of 2007. Revenue from oil and condensate sales was $119.9 million and revenue from and natural gas sales was $106.1 million for the first quarter of 2008. Revenue from oil and condensate sales was $54.7 million and revenue from natural gas sales was $89.9 million for the first quarter of 2007. ATP recorded net income of $46.8 million or $1.31 per basic and $1.29 per diluted share for the first quarter of 2008, compared to $27.4 million or $0.92 per basic and $0.89 per diluted share for the first quarter of 2007. Net income for the first quarter of 2008 was impacted by one item research analysts typically exclude from their published estimates, a loss on abandonment of $0.4 million. Accordingly, net income before this item, a non-GAAP measure, in the first quarter of 2008 was $47.2 million or $1.32 per basic and $1.30 per diluted share. For the same metric in the first quarter of 2007, ATP recorded $27.5 million or $0.92 per basic and $0.90 per diluted share. A non-GAAP reconciliation is provided near the end of this press release. ATP's selected operating statistics and financial information, included within this press release, contain additional information on the company’s activities for the first quarter of 2008 and the comparable period of 2007.   Three Months Ended March 31, 2008   2007 Selected Operating Statistics     Production Natural gas (MMcf) 11,844 9,825 Gulf of Mexico 6,465 6,138 North Sea 5,379 3,687   Oil and condensate (MBbls) 1,622 1,012 Gulf of Mexico 1,610 1,005 North Sea 12 7   Natural gas equivalents (MMcfe) 21,574 15,896 Gulf of Mexico 16,122 12,170 North Sea 5,451 3,727   Average Prices (includes effect of cash flow hedges) Natural gas (per Mcf) $ 8.96 $ 9.15 Gulf of Mexico 9.28 8.47 North Sea 8.57 10.29 Oil and condensate (per Bbl) 73.96 54.09 Natural gas, oil and condensate (per Mcfe) 10.48 9.11   Other Expenses, per Mcfe Lease operating expense (per Mcfe) $ 1.14 $ 1.33 Gulf of Mexico 1.09 1.27 North Sea 1.28 1.49 Depreciation, depletion and amortization (DD&A) 4.14 3.36 Gulf of Mexico 3.48 3.11 North Sea 6.09 4.18   Selected Financial Data (In Thousands, Except Per Share Data)   Oil and gas revenues, including settled derivatives(1) $ 226,037 $ 144,675 Net income 46,845 27,434   Net income per share: Basic $ 1.31   $ 0.92 Diluted $ 1.29   $ 0.89   Weighted average shares outstanding: Basic   35,824     29,969 Diluted   36,247     30,702   (1) See oil and gas revenue reconciliation toward the end of this press release. 1st Quarter 2008 Conference Call ATP Oil & Gas Corporation (NASDAQ: ATPG) will host a live conference call on Thursday, May 8 at 9:30 am central time to discuss the company’s record first quarter results, followed by a Q&A session. Date: Thursday, May 8, 2008 Time: 10:30 am ET; 9:30 am CT; 8:30 am MT and 7:30 am PT ATP invites interested persons to listen to the live Internet webcast on the company’s website, www.atpog.com, linking through the Investor Info page and the Conference Calls link. Phone participants should dial (800) 533-7619. A digital replay of the conference call will be available at (888) 203-1112, ID number 6226994, for a period of 24 hours beginning at 12:00 pm CT, and the webcast will be archived for 30 business days at www.atpog.com. About ATP Oil & Gas Corporation ATP Oil & Gas is focused on development and production of oil and natural gas in the Gulf of Mexico and the North Sea. The Company trades publicly as ATPG on the Nasdaq Global Select Market. For more information about ATP Oil & Gas Corporation, visit www.atpog.com. 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, 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, as well as ATP’s ability to access them, 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 the Company’s SEC filings. CONSOLIDATED BALANCE SHEETS (In Thousands)         March 31, December 31, 2008 2007 Assets   Current assets: Cash and cash equivalents $ 104,572 $ 199,449 Restricted cash 13,966 13,981 Accounts receivable (net of allowance of $382 and $382) 122,237 127,891 Deferred tax asset 54,887 84,110 Derivative asset 444 1,286 Other current assets   20,541     15,934   Total current assets   316,647     442,651     Oil and gas properties: Oil and gas properties (using the successful efforts method of accounting) 2,748,975 2,556,938 Less: Accumulated depletion, impairment and amortization   (817,488 )   (726,358 ) Oil and gas properties, net   1,931,487     1,830,580     Furniture and fixtures, net 778 860 Derivative asset 491 673 Deferred financing costs, net 17,569 19,873 Other assets, net   12,604     12,496   Total assets $ 2,279,576   $ 2,307,133     Liabilities and Shareholders' Equity   Current liabilities: Accounts payable and accruals $ 208,673 $ 270,557 Current maturities of long-term debt 12,165 12,165 Asset retirement obligation 26,417 28,194 Derivative liability 37,621 11,335 Other current liabilities   20,475     23,512   Total current liabilities 305,351 345,763   Long-term debt 1,390,588 1,391,846 Asset retirement obligation 163,331 158,577 Deferred tax liability 58,213 85,256 Derivative liability 11,956 13,242 Other liabilities   2,581     2,583   Total liabilities   1,932,020     1,997,267     Shareholders' equity: Preferred stock: $0.001 par value - - Common stock: $0.001 par value 36 36 Additional paid-in capital 391,199 388,250 Accumulated deficit (45,216 ) (92,061 ) Accumulated other comprehensive income 2,448 14,552 Treasury stock, at cost   (911 )   (911 ) Total shareholders' equity   347,556     309,866   Total liabilities and shareholders' equity $ 2,279,576   $ 2,307,133   CONSOLIDATED INCOME STATEMENTS (In Thousands, Except Per Share Amounts)     Three Months Ended March 31, 2008 2007   Oil and gas revenues $ 226,037 $ 144,749 Other revenues   897     1,598   Total revenues   226,934     146,347     Costs, operating expenses and other: Lease operating 24,618 21,069 Exploration 141 731 General and administrative 9,236 8,768 Depreciation, depletion and amortization 89,399 53,400 Accretion of asset retirement obligation 4,300 2,960 Loss on abandonment 377 77 Other, net   (27 )   -   Total costs, operating expenses and other   128,044     87,005   Income from operations   98,890     59,342     Other income (expense): Interest income 1,228 2,068 Interest expense, net   (28,127 )   (26,799 ) Total other expense   (26,899 )   (24,731 )   Income before income taxes   71,991     34,611   Income tax (expense) benefit: Current (12,436 ) (56 ) Deferred   (12,710 )   (7,121 ) Total   (25,146 )   (7,177 )   Net income $ 46,845   $ 27,434     Net income per share: Basic $ 1.31   $ 0.92   Diluted $ 1.29   $ 0.89     Weighted average shares outstanding: Basic   35,824     29,969   Diluted   36,247     30,702   CONSOLIDATED CASH FLOW DATA (In Thousands)       Three Months Ended March 31, 2008 2007   Cash flows from operating activities: Net income $ 46,845 $ 27,434 Adjustments to operating activities 115,179 68,722 Changes in assets and liabilities   (35,375 )   (11,973 ) Net cash provided by operating activities   126,649     84,183     Cash flows from investing activities: Additions to oil and gas properties (215,021 ) (169,485 ) Additions to furniture and fixtures (47 ) (154 ) Increase in restricted cash   -     (14 ) Net cash used in investing activities   (215,068 )   (169,653 )   Cash flows from financing activities: Proceeds from long-term debt - 375,000 Principal payments of long-term debt (3,042 ) (178,184 ) Net profits interest payments (3,583 ) - Deferred financing costs - (8,445 ) Principal payments of capital lease - (23,950 ) Exercise of stock options   28     230   Net cash (used) provided by financing activities   (6,597 )   164,651     Effect of exchange rate changes on cash   139     (24 )   Net increase (decrease) in cash and cash equivalents (94,877 ) $ 79,157 Cash and cash equivalents, beginning of period   199,449     182,592     Cash and cash equivalents, end of period $ 104,572   $ 261,749   Reconciliation of Non-GAAP Measures (In Thousands, except per share data)   Three Months Ended March 31, 2008 2007   Net income $ 46,845 $ 27,434 Loss on abandonment   377   77 Adjusted net income $ 47,222 $ 27,511   Adjusted net income per share: Basic $ 1.32 $ 0.92 Diluted $ 1.30 $ 0.90   Weighted average shares outstanding: Basic   35,824   29,969 Diluted   36,247   30,702 Revenue Reconciliation (In thousands)     Three Months Ended March 31, 2008 2007   Oil and gas revenues, including the effects of settled derivatives $ 226,037 $ 144,675 Hedging ineffectiveness   -   74 Revenues from oil and gas production per income statements $ 226,037 $ 144,749