cibc world markets annual global energy conference march 19-21, 2002
TRANSCRIPT
CIBC World Markets Annual Global Energy
Conference
March 19-21, 2002
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 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.
Area of Operations
Over 50 blocks in Gulf of Mexico
7 blocks in North Sea
WC 152
WC 101
Company Overview
Founded in 1991
A “D & P” company– Development and Production– Offshore solution provider for exploration-oriented majors and
independents
Win/win for ATP and seller
Company history
ATP was founded in 1991 and completed an initial public offering in February 2001
1995 200220021997 199919961993 1994
ATP forms its first limited partnership to provide funding
for operations
1991
The Company is
incorporated
on August 8th
ATP forms a second
partnership and commences development
activities in the Gulf of Mexico
ATP acquires the third-party
interests from its two partnerships and enters into a
new financing arrangement
The Company completes its first sub-sea
development
ATP wins numerous awards for its outstanding
technological achievements and
growth record
ATP acquires all properties of
Statoil (US) on the outer-
Continental Shelf of the Gulf
of Mexico
The Company completes its initial
public offering in February and
acquires its first properties in the UK
North Sea
ATP becomes one of the first independent development companies to
utilize horizontal drilling in offshore
operations
ATP opens the U.K. office commencing operations in the
Southern Gas Basin of the UK North Sea
1998 2000 2001
ATP awarded UKCS Blocks 42/25a and
43/21a by DTI as an Out of
Round License
E&P Valuation Table Sorted by Enterprise Value to 2002 EBITDAWachovia Securities Master E&P Valuation Table - Sorted By Enterprise Value To 2002 EBITDA (EV / EBITDA)
Market Enterprise Debt To Debt Price/ Price/ EV / Total Reserve 3-Yr AvgStock 52-Week Cap Value Capital Per Price Performance EPS CFPS EBITDA EV / EV / Reserves % North Life F&D Costs Recycle
As of 2/28/02 (Close) Ticker Price High Low ($MM) ($MM) Ratio Boe YTD WTD 02E 02E 2002E BOE MCFE (MMBOE) Amer. Gas (Years) ($/MCFE) Ratio
ATP Oil & Gas Corporation ATPG $1.70 $14.13 $1.47 $34.5 $114.6 59.5% $2.29 (43.0%) 1.2% NM 0.8x 2.2x $3.25 $0.54 35.0 85.0% 8.6 $1.26 1.2xClayton Williams Energy, Inc. CWEI 9.61 22.35 8.10 90.4 147.4 39.0% 3.23 (26.6%) (5.2%) NM 1.9x 2.4x 6.90 1.15 17.6 26.8% 4.7 1.51 1.4xEnergy Partners, Ltd. EPL 8.15 14.00 5.60 219.0 244.5 13.2% 0.71 7.9% 1.2% NM 3.2x 3.5x 6.85 1.14 35.7 22.9% 9.5 0.84 2.6xThe Meridian Resource Corporation TMR 3.43 8.60 2.65 185.3 375.3 50.4% 3.72 (14.0%) (0.6%) 22.9x 2.3x 3.8x 7.16 1.19 51.1 56.3% 5.9 1.94 1.0xDenbury Resources Inc. DNR 7.05 12.30 5.84 374.7 489.3 24.4% 1.14 (3.6%) 2.5% 54.2x 3.8x 3.9x 4.86 0.81 100.6 28.5% 12.9 1.08 1.3xStone Energy Corporation SGY 36.87 59.40 29.66 965.4 1,065.4 11.3% 1.50 (6.7%) 4.9% 20.4x 4.0x 4.3x 15.82 2.64 66.7 68.0% 6.3 1.54 1.4xSouthwestern Energy Company SWN 11.20 16.35 8.77 287.0 643.3 67.0% 5.62 7.7% (0.4%) 24.9x 3.7x 4.2x 6.68 1.11 63.4 87.2% 10.7 1.06 NE Houston Exploration Company THX 31.25 38.00 22.20 961.5 1,121.5 22.1% 1.71 (6.9%) 5.5% 30.0x 3.9x 4.5x 11.87 1.98 93.6 94.3% 7.0 1.43 1.4xComstock Resources, Inc. CRK 6.60 13.15 4.95 224.2 448.2 52.4% 3.07 (5.7%) 3.1% 82.5x 2.9x 4.6x 6.64 1.11 67.1 73.9% 10.6 1.18 1.5xRange Resources Corporation RRC 4.66 6.68 3.93 240.9 650.5 60.6% 4.21 2.4% (0.9%) 29.1x 2.4x 4.9x 6.48 1.08 97.3 73.3% 28.9 2.02 1.3xNuevo Energy Company NEV 13.75 21.56 11.10 232.1 641.6 63.0% 1.65 (8.3%) 0.0% NM 2.9x 5.1x 2.50 0.42 247.6 11.2% 12.4 0.75 0.5xChesapeake Energy Corporation CHK 6.27 11.06 4.50 1,068.3 2,336.7 67.4% 4.35 (5.1%) 6.6% 17.9x 3.2x 5.3x 7.75 1.29 291.7 91.0% 13.0 1.05 1.3xNoble Affiliates, Inc. NBL 36.20 51.09 27.50 2,069.6 2,705.2 38.1% 1.61 2.6% 6.0% NM 4.7x 5.4x 6.56 1.09 394.5 31.8% 11.5 1.28 1.4xKey Production Company, Inc. KP 16.68 24.70 10.85 236.2 271.2 17.4% 1.36 (1.9%) 6.6% 21.4x 5.1x 5.6x 10.57 1.76 25.6 63.8% 6.7 1.60 1.4xVintage Petroleum, Inc. VPI 10.50 22.45 7.85 672.7 1,689.1 58.1% 2.08 (27.3%) 21.1% NM 3.7x 5.8x 3.11 0.52 489.1 14.9% 17.0 0.44 2.8xNewfield Exploration Company NFX 36.29 41.75 26.25 1,770.9 2,164.5 34.1% 2.50 2.2% 2.2% 28.6x 4.7x 5.5x 13.72 2.29 157.2 75.4% 6.8 1.48 1.4xUnocal Corporation UCL 35.95 40.00 29.51 8,792.1 11,642.1 47.1% 1.57 (0.3%) 1.2% 31.3x 5.3x 5.5x 5.62 0.94 1,814.1 19.0% 9.5 1.24 0.9xPogo Producing Company PPP 26.92 34.50 20.45 1,628.1 2,385.1 47.6% 2.54 2.5% 6.8% 41.4x 4.3x 5.9x 7.95 1.33 298.2 32.9% 14.8 1.21 1.0xPatina Oil & Gas Corporation POG 27.20 33.80 20.99 616.7 704.4 24.9% 0.73 (1.1%) 1.9% 14.6x 5.3x 5.8x 5.86 0.98 119.9 73.2% 16.5 0.25 6.7xKerr-McGee Corporation KMG 55.33 74.10 46.94 5,543.2 10,117.4 59.0% 3.05 1.0% 0.7% 33.1x 5.0x 5.7x 4.80 0.80 1,500.0 26.1% 13.8 1.06 1.8xMission Resources Corporation MSSN 2.80 9.55 2.55 66.3 332.1 65.9% 3.38 (20.0%) 2.6% NM 2.2x 5.9x 4.09 0.68 78.5 32.0% 10.4 --- --- Prize Energy Corp. PRZ 23.49 24.50 15.00 313.9 564.7 60.6% 2.25 1.6% 2.8% 12.8x 4.5x 6.1x 5.06 0.84 111.6 48.0% 14.9 0.56 --- XTO Energy Inc. XTO 18.80 21.73 12.30 2,346.2 3,156.2 50.7% 2.16 7.4% 5.5% 13.1x 5.2x 6.2x 8.28 1.38 375.4 78.6% 13.7 0.64 2.0xPure Resources, Inc. PRS 20.00 25.30 15.00 1,032.0 1,567.2 52.3% 2.16 (0.5%) (0.5%) NM 4.8x 6.0x 6.10 1.02 247.7 64.0% 11.0 0.60 2.5xWestport Resources Corporation WRC 18.22 32.09 12.60 948.4 1,406.4 33.7% 2.77 5.0% (3.8%) NM 5.1x 5.9x 7.69 1.28 155.0 55.5% 7.7 1.03 1.5xEncore Acquisition Company EAC 13.05 17.80 11.00 391.9 455.9 19.5% 0.62 (2.0%) (1.5%) 15.7x 5.5x 6.0x 4.42 0.74 102.8 12.2% 21.8 1.08 --- Magnum Hunter Resources, Inc. MHR 7.51 13.90 6.65 276.4 542.5 69.3% 4.35 (9.5%) 1.9% 32.7x 4.2x 6.1x 8.71 1.45 61.2 63.5% 13.4 1.26 2.0x
St. Mary Land & Exploration Company MARY 21.70 25.88 14.58 613.1 627.4 4.8% 0.24 2.4% 3.8% 44.3x 6.3x 6.4x 10.65 1.77 58.6 64.3% 6.7 1.11 1.5xApache Corporation APA 52.77 62.27 34.77 7,610.9 10,229.0 39.0% 1.82 5.8% 2.3% 20.9x 5.7x 6.4x 7.40 1.23 1,209.8 39.2% 13.3 0.90 2.2xUnit Corporation UNT 13.75 23.00 7.41 498.2 538.1 12.9% 0.99 6.6% 6.3% 17.9x 6.7x 7.0x 13.41 2.24 40.1 89.6% 10.8 0.85 2.7xPetroQuest Energy, Inc. PQUE 4.98 8.99 3.95 197.7 207.7 15.8% 0.73 (6.4%) (1.8%) NM 6.1x 5.8x 15.04 2.51 13.7 54.9% 16.7 1.33 1.5xRemington Oil & Gas Corporation ROIL 17.71 19.49 10.03 435.5 482.1 26.5% 1.85 2.4% 0.1% 59.0x 6.2x 6.5x 19.17 3.20 25.1 58.8% 7.4 0.95 2.9xBerry Petroleum Company BRY 13.30 17.75 11.00 295.3 328.3 18.1% 0.31 (15.3%) (6.8%) 12.1x 6.0x 6.2x 3.05 0.51 107.4 0.6% 19.6 0.65 1.8xCabot Oil & Gas Corporation COG 20.10 34.35 16.25 623.1 990.1 50.1% 1.86 (16.4%) 1.8% NM 4.9x 6.8x 5.01 0.84 197.5 89.1% 17.7 1.12 1.3xAbraxas Petroleum Corporation ABP 1.05 5.38 0.64 31.7 302.8 NM 6.66 (20.5%) 1.9% NM 8.1x 6.7x 5.96 0.99 40.7 78.3% 9.5 1.91 0.2x3TEC Energy Corporation TTEN 15.03 21.05 11.95 227.5 346.2 38.1% 2.73 7.4% 0.6% 36.7x 5.1x 6.8x 7.89 1.31 43.5 88.5% 10.6 0.74 2.7xSpinnaker Exploration Company SKE 41.02 48.00 30.00 1,162.3 1,162.3 0.0% --- (0.3%) 4.3% 31.8x 7.8x 7.1x 20.61 3.43 51.2 72.7% 10.2 1.69 1.7xPioneer Natural Resources Company PXD 19.82 23.05 12.62 1,972.5 3,527.1 56.8% 2.32 2.9% 4.4% 38.1x 5.2x 6.9x 5.22 0.87 671.4 48.3% 15.4 0.58 1.8xPlains Resources Inc. PLX 22.48 29.50 19.00 589.6 868.3 53.9% 1.17 (8.7%) (6.8%) 13.7x 5.8x 6.4x 3.43 0.57 238.7 6.5% 26.9 0.41 1.3xEOG Resources, Inc. EOG 35.19 50.70 25.80 4,122.2 4,970.7 35.5% 0.99 (10.0%) 3.4% 73.3x 6.4x 7.2x 7.05 1.18 704.9 62.7% 10.4 0.97 1.7xSwift Energy Company SFY 17.81 37.70 15.39 453.4 703.9 39.8% 2.39 (11.8%) 14.0% 52.4x 6.0x 7.8x 6.62 1.10 104.9 66.5% 15.0 1.54 1.4xForest Oil Corporation FST 25.69 37.85 22.75 1,245.3 1,901.1 40.4% 2.85 (8.9%) 3.3% NM 6.2x 7.6x 8.27 1.38 229.9 61.2% 7.6 1.16 1.3xMurphy Oil Corporation MUR 86.18 87.85 60.75 3,937.0 4,466.9 26.2% 1.20 2.5% 4.1% 36.2x 7.4x 7.7x 10.00 1.67 442.3 25.0% 11.7 0.87 2.4xOcean Energy, Inc. OEI 18.35 21.72 14.00 3,287.3 4,624.9 48.1% 2.23 (4.4%) 3.9% 31.6x 6.3x 7.7x 7.42 1.24 600.8 43.8% 12.1 1.03 1.4xCallon Petroleum Company CPE 4.35 13.49 3.96 58.3 232.0 52.9% 3.12 (36.5%) (4.2%) NM 3.7x 7.5x 4.03 0.67 55.6 40.0% 21.8 0.75 2.2xTom Brown, Inc. TMBR 27.56 36.75 19.65 1,104.6 1,202.4 14.4% 0.87 2.0% 4.0% NM 8.8x 8.3x 9.84 1.64 113.0 87.6% 10.9 0.87 1.9xDevon Energy Corporation DVN 43.68 66.75 30.55 7,024.7 14,979.2 64.3% 3.91 13.0% 3.0% 23.7x 4.4x 8.2x 7.06 1.18 2,036.2 55.2% 9.8 0.98 2.2xBurlington Resources, Inc. BR 37.58 51.99 31.69 7,703.9 12,186.9 54.8% 2.28 0.1% 1.4% NM 6.8x 8.6x 5.63 0.94 1,968.1 75.4% 13.1 0.92 1.5xQuicksilver Resources KWK 20.16 20.50 10.00 388.8 628.5 72.0% 2.15 5.8% 5.0% 43.8x 9.4x 9.4x 5.50 0.92 111.5 85.3% 19.8 0.54 1.8xPrima Energy Corporation PENG 21.74 37.00 19.10 286.8 286.8 0.0% --- (0.0%) 8.1% 32.9x 10.8x 10.4x 9.42 1.57 29.4 87.3% 15.6 0.54 4.2xAnadarko Petroleum APC 52.10 73.00 43.00 13,025.0 17,854.0 39.9% 2.05 (8.4%) 2.9% 25.9x 7.9x 10.4x 7.76 1.29 2,132.7 49.9% 11.2 1.05 1.8xEvergreen Resources, Inc. EVG 41.70 50.99 30.65 810.9 981.9 35.7% 0.98 8.0% 2.3% 51.5x 19.0x 19.4x 5.61 0.94 175.0 100.0% 32.0 0.40 3.6xPenn Virginia Corporation PVA 36.10 45.40 26.03 325.2 460.2 39.3% 3.46 5.9% 9.9% NM NE NE 10.46 1.74 39.0 88.4% 19.8 1.08 NE Equitable Resources, Inc. EQT 32.68 40.50 26.00 2,142.6 2,684.8 39.3% 1.47 (4.1%) 1.4% 13.6x NE NE 6.62 1.10 367.6 98.1% 24.5 0.71 NE
MEAN: 40.1% 2.17 (4.2%) 2.7% 32.1x 5.4x 6.4x $7.73 $1.29 57.9% 13.3x $1.02 1.9xMEDIAN: 39.8% 2.11 (0.8%) 2.4% 30.0x 5.1x 6.1x $6.87 $1.15 63.1% 11.9x $1.04 1.5x
Wachovia Securities coverage and ratings include TTEN (1), APC (3), APA (2), BR (1), DVN (3), EOG (2), EVG (1), PXD (1), PRS (1) and UCL (3).Source: Bloomberg, First Call, company data and Wachovia Securities estimates. First Call Consensus numbers are used for all EPS and CFPS estimates.
E&P Valuation Table by YTD Stock Price Performance
Wachovia Securities Master E&P Valuation Table - Sorted By YTD Stock Price PerformanceMarket Enterprise Debt To Debt Price/ Price/ EV / Total Reserve 3-Yr Avg
Stock 52-Week Cap Value Capital Per Price Performance EPS CFPS EBITDA EV / EV / Reserves % North Life F&D Costs RecycleAs of 2/28/02 (Close) Ticker Price High Low ($MM) ($MM) Ratio Boe YTD WTD 02E 02E 2002E BOE MCFE (MMBOE) Amer. Gas (Years) ($/MCFE) Ratio
Devon Energy Corporation DVN $43.68 $66.75 $30.55 $7,024.7 $14,979.2 64.3% $3.91 13.0% 3.0% 23.7x 4.4x 8.2x $7.06 $1.18 2,036.2 55.2% 9.8 $0.98 2.2xWestport Resources Corporation WRC 18.22 32.09 12.60 948.4 1,406.4 33.7% 2.77 5.0% (3.8%) NM 5.1x 5.9x 7.69 1.28 155.0 55.5% 7.7 1.03 1.5xSouthwestern Energy Company SWN 11.20 16.35 8.77 287.0 643.3 67.0% 5.62 7.7% (0.4%) 24.9x 3.7x 4.2x 6.68 1.11 63.4 87.2% 10.7 1.06 NE 3TEC Energy Corporation TTEN 15.03 21.05 11.95 227.5 346.2 38.1% 2.73 7.4% 0.6% 36.7x 5.1x 6.8x 7.89 1.31 43.5 88.5% 10.6 0.74 2.7xEnergy Partners, Ltd. EPL 8.15 14.00 5.60 219.0 244.5 13.2% 0.71 7.9% 1.2% NM 3.2x 3.5x 6.85 1.14 35.7 22.9% 9.5 0.84 2.6xEvergreen Resources, Inc. EVG 41.70 50.99 30.65 810.9 981.9 35.7% 0.98 8.0% 2.3% 51.5x 19.0x 19.4x 5.61 0.94 175.0 100.0% 32.0 0.40 3.6xApache Corporation APA 52.77 62.27 34.77 7,610.9 10,229.0 39.0% 1.82 5.8% 2.3% 20.9x 5.7x 6.4x 7.40 1.23 1,209.8 39.2% 13.3 0.90 2.2xRange Resources Corporation RRC 4.66 6.68 3.93 240.9 650.5 60.6% 4.21 2.4% (0.9%) 29.1x 2.4x 4.9x 6.48 1.08 97.3 73.3% 28.9 2.02 1.3xRemington Oil & Gas Corporation ROIL 17.71 19.49 10.03 435.5 482.1 26.5% 1.85 2.4% 0.1% 59.0x 6.2x 6.5x 19.17 3.20 25.1 58.8% 7.4 0.95 2.9xXTO Energy Inc. XTO 18.80 21.73 12.30 2,346.2 3,156.2 50.7% 2.16 7.4% 5.5% 13.1x 5.2x 6.2x 8.28 1.38 375.4 78.6% 13.7 0.64 2.0xQuicksilver Resources KWK 20.16 20.50 10.00 388.8 628.5 72.0% 2.15 5.8% 5.0% 43.8x 9.4x 9.4x 5.50 0.92 111.5 85.3% 19.8 0.54 1.8xUnit Corporation UNT 13.75 23.00 7.41 498.2 538.1 12.9% 0.99 6.6% 6.3% 17.9x 6.7x 7.0x 13.41 2.24 40.1 89.6% 10.8 0.85 2.7xKerr-McGee Corporation KMG 55.33 74.10 46.94 5,543.2 10,117.4 59.0% 3.05 1.0% 0.7% 33.1x 5.0x 5.7x 4.80 0.80 1,500.0 26.1% 13.8 1.06 1.8xPure Resources, Inc. PRS 20.00 25.30 15.00 1,032.0 1,567.2 52.3% 2.16 (0.5%) (0.5%) NM 4.8x 6.0x 6.10 1.02 247.7 64.0% 11.0 0.60 2.5xNewfield Exploration Company NFX 36.29 41.75 26.25 1,770.9 2,164.5 34.1% 2.50 2.2% 2.2% 28.6x 4.7x 5.5x 13.72 2.29 157.2 75.4% 6.8 1.48 1.4xEncore Acquisition Company EAC 13.05 17.80 11.00 391.9 455.9 19.5% 0.62 (2.0%) (1.5%) 15.7x 5.5x 6.0x 4.42 0.74 102.8 12.2% 21.8 1.08 --- Prize Energy Corp. PRZ 23.49 24.50 15.00 313.9 564.7 60.6% 2.25 1.6% 2.8% 12.8x 4.5x 6.1x 5.06 0.84 111.6 48.0% 14.9 0.56 --- Burlington Resources, Inc. BR 37.58 51.99 31.69 7,703.9 12,186.9 54.8% 2.28 0.1% 1.4% NM 6.8x 8.6x 5.63 0.94 1,968.1 75.4% 13.1 0.92 1.5xSt. Mary Land & Exploration Company MARY 21.70 25.88 14.58 613.1 627.4 4.8% 0.24 2.4% 3.8% 44.3x 6.3x 6.4x 10.65 1.77 58.6 64.3% 6.7 1.11 1.5xPioneer Natural Resources Company PXD 19.82 23.05 12.62 1,972.5 3,527.1 56.8% 2.32 2.9% 4.4% 38.1x 5.2x 6.9x 5.22 0.87 671.4 48.3% 15.4 0.58 1.8xUnocal Corporation UCL 35.95 40.00 29.51 8,792.1 11,642.1 47.1% 1.57 (0.3%) 1.2% 31.3x 5.3x 5.5x 5.62 0.94 1,814.1 19.0% 9.5 1.24 0.9xMurphy Oil Corporation MUR 86.18 87.85 60.75 3,937.0 4,466.9 26.2% 1.20 2.5% 4.1% 36.2x 7.4x 7.7x 10.00 1.67 442.3 25.0% 11.7 0.87 2.4xTom Brown, Inc. TMBR 27.56 36.75 19.65 1,104.6 1,202.4 14.4% 0.87 2.0% 4.0% NM 8.8x 8.3x 9.84 1.64 113.0 87.6% 10.9 0.87 1.9xPlains Resources Inc. PLX 22.48 29.50 19.00 589.6 868.3 53.9% 1.17 (8.7%) (6.8%) 13.7x 5.8x 6.4x 3.43 0.57 238.7 6.5% 26.9 0.41 1.3xPatina Oil & Gas Corporation POG 27.20 33.80 20.99 616.7 704.4 24.9% 0.73 (1.1%) 1.9% 14.6x 5.3x 5.8x 5.86 0.98 119.9 73.2% 16.5 0.25 6.7xNoble Affiliates, Inc. NBL 36.20 51.09 27.50 2,069.6 2,705.2 38.1% 1.61 2.6% 6.0% NM 4.7x 5.4x 6.56 1.09 394.5 31.8% 11.5 1.28 1.4xPenn Virginia Corporation PVA 36.10 45.40 26.03 325.2 460.2 39.3% 3.46 5.9% 9.9% NM NE NE 10.46 1.74 39.0 88.4% 19.8 1.08 NE
Pogo Producing Company PPP 26.92 34.50 20.45 1,628.1 2,385.1 47.6% 2.54 2.5% 6.8% 41.4x 4.3x 5.9x 7.95 1.33 298.2 32.9% 14.8 1.21 1.0xSpinnaker Exploration Company SKE 41.02 48.00 30.00 1,162.3 1,162.3 0.0% --- (0.3%) 4.3% 31.8x 7.8x 7.1x 20.61 3.43 51.2 72.7% 10.2 1.69 1.7xPetroQuest Energy, Inc. PQUE 4.98 8.99 3.95 197.7 207.7 15.8% 0.73 (6.4%) (1.8%) NM 6.1x 5.8x 15.04 2.51 13.7 54.9% 16.7 1.33 1.5xEquitable Resources, Inc. EQT 32.68 40.50 26.00 2,142.6 2,684.8 39.3% 1.47 (4.1%) 1.4% 13.6x NE NE 6.62 1.10 367.6 98.1% 24.5 0.71 NE Denbury Resources Inc. DNR 7.05 12.30 5.84 374.7 489.3 24.4% 1.14 (3.6%) 2.5% 54.2x 3.8x 3.9x 4.86 0.81 100.6 28.5% 12.9 1.08 1.3xPrima Energy Corporation PENG 21.74 37.00 19.10 286.8 286.8 0.0% --- (0.0%) 8.1% 32.9x 10.8x 10.4x 9.42 1.57 29.4 87.3% 15.6 0.54 4.2xKey Production Company, Inc. KP 16.68 24.70 10.85 236.2 271.2 17.4% 1.36 (1.9%) 6.6% 21.4x 5.1x 5.6x 10.57 1.76 25.6 63.8% 6.7 1.60 1.4xOcean Energy, Inc. OEI 18.35 21.72 14.00 3,287.3 4,624.9 48.1% 2.23 (4.4%) 3.9% 31.6x 6.3x 7.7x 7.42 1.24 600.8 43.8% 12.1 1.03 1.4xNuevo Energy Company NEV 13.75 21.56 11.10 232.1 641.6 63.0% 1.65 (8.3%) 0.0% NM 2.9x 5.1x 2.50 0.42 247.6 11.2% 12.4 0.75 0.5xComstock Resources, Inc. CRK 6.60 13.15 4.95 224.2 448.2 52.4% 3.07 (5.7%) 3.1% 82.5x 2.9x 4.6x 6.64 1.11 67.1 73.9% 10.6 1.18 1.5xBerry Petroleum Company BRY 13.30 17.75 11.00 295.3 328.3 18.1% 0.31 (15.3%) (6.8%) 12.1x 6.0x 6.2x 3.05 0.51 107.4 0.6% 19.6 0.65 1.8xAnadarko Petroleum APC 52.10 73.00 43.00 13,025.0 17,854.0 39.9% 2.05 (8.4%) 2.9% 25.9x 7.9x 10.4x 7.76 1.29 2,132.7 49.9% 11.2 1.05 1.8xStone Energy Corporation SGY 36.87 59.40 29.66 965.4 1,065.4 11.3% 1.50 (6.7%) 4.9% 20.4x 4.0x 4.3x 15.82 2.64 66.7 68.0% 6.3 1.54 1.4xChesapeake Energy Corporation CHK 6.27 11.06 4.50 1,068.3 2,336.7 67.4% 4.35 (5.1%) 6.6% 17.9x 3.2x 5.3x 7.75 1.29 291.7 91.0% 13.0 1.05 1.3xMagnum Hunter Resources, Inc. MHR 7.51 13.90 6.65 276.4 542.5 69.3% 4.35 (9.5%) 1.9% 32.7x 4.2x 6.1x 8.71 1.45 61.2 63.5% 13.4 1.26 2.0xHouston Exploration Company THX 31.25 38.00 22.20 961.5 1,121.5 22.1% 1.71 (6.9%) 5.5% 30.0x 3.9x 4.5x 11.87 1.98 93.6 94.3% 7.0 1.43 1.4xForest Oil Corporation FST 25.69 37.85 22.75 1,245.3 1,901.1 40.4% 2.85 (8.9%) 3.3% NM 6.2x 7.6x 8.27 1.38 229.9 61.2% 7.6 1.16 1.3xEOG Resources, Inc. EOG 35.19 50.70 25.80 4,122.2 4,970.7 35.5% 0.99 (10.0%) 3.4% 73.3x 6.4x 7.2x 7.05 1.18 704.9 62.7% 10.4 0.97 1.7xThe Meridian Resource Corporation TMR 3.43 8.60 2.65 185.3 375.3 50.4% 3.72 (14.0%) (0.6%) 22.9x 2.3x 3.8x 7.16 1.19 51.1 56.3% 5.9 1.94 1.0xCabot Oil & Gas Corporation COG 20.10 34.35 16.25 623.1 990.1 50.1% 1.86 (16.4%) 1.8% NM 4.9x 6.8x 5.01 0.84 197.5 89.1% 17.7 1.12 1.3xAbraxas Petroleum Corporation ABP 1.05 5.38 0.64 31.7 302.8 NM 6.66 (20.5%) 1.9% NM 8.1x 6.7x 5.96 0.99 40.7 78.3% 9.5 1.91 0.2xMission Resources Corporation MSSN 2.80 9.55 2.55 66.3 332.1 65.9% 3.38 (20.0%) 2.6% NM 2.2x 5.9x 4.09 0.68 78.5 32.0% 10.4 --- --- Clayton Williams Energy, Inc. CWEI 9.61 22.35 8.10 90.4 147.4 39.0% 3.23 (26.6%) (5.2%) NM 1.9x 2.4x 6.90 1.15 17.6 26.8% 4.7 1.51 1.4xSwift Energy Company SFY 17.81 37.70 15.39 453.4 703.9 39.8% 2.39 (11.8%) 14.0% 52.4x 6.0x 7.8x 6.62 1.10 104.9 66.5% 15.0 1.54 1.4xCallon Petroleum Company CPE 4.35 13.49 3.96 58.3 232.0 52.9% 3.12 (36.5%) (4.2%) NM 3.7x 7.5x 4.03 0.67 55.6 40.0% 21.8 0.75 2.2xVintage Petroleum, Inc. VPI 10.50 22.45 7.85 672.7 1,689.1 58.1% 2.08 (27.3%) 21.1% NM 3.7x 5.8x 3.11 0.52 489.1 14.9% 17.0 0.44 2.8xATP Oil & Gas Corporation ATPG 1.70 14.13 1.47 34.5 114.6 59.5% 2.29 (43.0%) 1.2% NM 0.8x 2.2x 3.25 0.54 35.0 85.0% 8.6 1.26 1.2x
MEAN: 40.1% 2.17 (4.2%) 2.7% 32.1x 5.4x 6.4x $7.73 $1.29 57.9% 13.3x $1.02 1.9xMEDIAN: 39.8% 2.11 (0.8%) 2.4% 30.0x 5.1x 6.1x $6.87 $1.15 63.1% 11.9x $1.04 1.5x
Wachovia Securities coverage and ratings include TTEN (1), APC (3), APA (2), BR (1), DVN (3), EOG (2), EVG (1), PXD (1), PRS (1) and UCL (3). S&P 500 Index performance is 0.0% YTD and 0.0% WOW.Source: Bloomberg, First Call, company data and Wachovia Securities estimates. First Call Consensus numbers are used for all EPS and CFPS estimates.
Events Affecting ATP in 2001
2001 National Events
Missed Production Target
Liquidity Deficit
Garden Banks 409 (Ladybug)
5 Bcfe and concurrent revenues deferred from 2001 to 2002
Liquidity
Late Q2 of 2001, ATP withdrew, due to market conditions, a $150 million public debt offering. – Natural gas price falling reduced revenues– Service industry and rig costs rose during the same period – Working capital deficit:
June 30, 2001 $45 million
ATP management and control – ATP as operator controls all 12 projects under development– ATP reduced development activity after June 30, 2001
Result – Working capital deficit :
2001 2Q $45 million2001 3Q $33 million2001 4Q $9 million (1)
2002 Positive working capital (1)
1 Company estimates
2001 Benchmarks
Production
Reserves
Reserve Replacement
Debt
Revenues
EBITDA
Cash Flow
2001 Benchmarks
Production
Reserves
Reserve Replacement
Debt
Revenues
EBITDA
Cash Flow
ATP Record
Almost Doubled
527%
Reduced 14%
Grew by 5+%
Over 62% for 6 straight years
Grew by 10+%
Production
0
5
10
15
20
25
30
1999 2000 2001
Natural Gas Oil
17
25.724
Bcfe
0
50
100
150
200
250
1999 2000 2001
Natural Gas Oil
Reserves
104125
235
Bcfe
Proved Reserves Per Share
11.6
8.8
7.3
0.0
2.0
4.0
6.0
8.0
10.0
12.0
1999 2000 2001
Mcfe per share
Reserve Replacement
Average Reserve Replacement:
1997-2000 259%
2001 527%
Debt Reduction
$100 million
$116 million
$0$20$40$60$80
$100$120$140
2000 2001
Historical operating performance
$5
$15
$27
$55
$8
$20
$43
$84
$57+
$88+
1997 1998 1999 2000 2001E(1)
EBITDA Revenues
Dollars in millions
1 Company estimates
EBITDA to Revenue Margin
68% 72% 62% 65% 64+%
Cash Flow
$17
$43
$47
$0
$10
$20
$30
$40
$50
1999 2000 2001E
Dollars in millions
1 Company estimates
1
Operational Expertise of Senior Officers
Name Age BackgroundLeland E Tate 54 - President, ARCO North Africa Senior Vice President - Director General, ARCO Joint Ventures Operations - Director of Operations, ARCO British Ltd, North Sea
- VP Engineering, ARCO International - Vice President, ARCO Gulf of Mexico
Adrian Turner 47 - President, ARCO Middle East Managing Director - Managing Director, ARCO Asia Pacific ATP Oil & Gas (UK) Ltd. - Commercial Vice President, BP Amoco
- Commercial Negotiator, ARCO UK and Conoco, North Sea
G. Ross Frazer 46 - Operations and Engineering Manager, British-Borneo Exploration, Inc. Vice President - - Chairman, American Petroleum Institute Houston Chapter Advisory Board Engineering - Member, American Petroleum Institute Houston Chapter – Deep Water
Operations Steering Committee
Robert M. Shivers 44 - Commercial/Development Manager – Deepwater Gulf of Mexico, Texaco Vice President - - Asset and Project Team Manager – UK North Sea, Texaco Projects - Drilling Engineering Manager – Gulf of Mexico/North Sea, Texaco
Strong development track record
Inception (1991) – December 31, 2001PUD’s taken to production 28PUD’s in development planning 12
Extensive Subsea ExpertiseSubsea Wells Operated 10Subsea Development Wells Planned 7Industry Leader in Long Reach Subsea Tiebacks - Ladybug 18 miles
100% of properties under development are operated, allowing control of the timing and amount of capital expenditure
2002 Production Guidance
2002 26.0 Bcfe
1Q02 6.2 Bcfe
Recent Development
South Marsh Island 189
Projected Start Date April 2002
Actual First Production March 18, 2002
ATP Upside
Outer Continental Shelf
Shallow Deepwater GOM
North Sea
Strategy and property overview
Company StrategyAcquire, develop and produce proved reserves
WC 152
WC 101
Garden Banks 409 (Ladybug)
WC 152
WC 101
Ladybug
•ATP Operated
•1 million barrels produced after 135 days
North Sea - Southern Gas Basin
North Sea Southern Gas Basin
ATP Acquisition Blocks
Other Opportunities
Investment Considerations
Six straight years of increases in
ProductionReservesRevenuesEBITDACash flow
ATP UpsideNorth SeaShallow Deepwater GOMOuter Continental Shelf
Investment Considerations
2001 per share amounts– Cash flow estimate per share $2.40+/-– Proved reserves per share 11.6 Mcfe
Stock price March 15, 2002 $3.45
Stock price to cash flow 1 .43X
Stock price to proved reserves $0.30X
Recipient of numerous oil & gas industry and business awards
Oil & Gas World 1999 Best Field Improvement
Gulf of Mexico
T. Paul BulmahnEntrepreneur of Year 2000Energy & Energy Services
Ernst & Young
Financial Times of London2000 Finalist: Best Oil and Gas Company
2000 Inc./CiscoGrowing with Technology Award
Inc. 5003 Consecutive Years
1999-2001Fastest Growing Energy Company
Each Year
NASDAQ: ATPGATP Oil & Gas Corporation
4600 Post Oak Place, Suite 200Houston, TX 77027-9726
713-622-3311www.atpog.com