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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
 
FORM 10-Q
 
þ    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended September 30, 2002
 
OR
 
¨    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Commission file number: 000-32261
 
ATP OIL & GAS CORPORATION
(Exact name of registrant as specified in its charter)
 
Texas
(State or other jurisdiction of
incorporation or organization)
  
76-0362774
(I.R.S. Employer
Identification No.)
 
4600 Post Oak Place, Suite 200
Houston, Texas 77027
(Address of principal executive offices)
(Zip Code)
 
(713) 622-3311
(Registrant’s telephone number, including area code)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
 
The number of shares outstanding of Registrant’s common stock, par value $0.001, as of November 13, 2002, was 20,316,267.
 

Table of Contents
 
ATP OIL & GAS CORPORATION
TABLE OF CONTENTS
 
        
Page
PART I.
  
FINANCIAL INFORMATION
     
ITEM 1.
  
FINANCIAL STATEMENTS
     
      
3
      
4
      
5
      
6
ITEM 2.
     
12
ITEM 3.
     
19
ITEM 4.
     
20
PART II.
     
21

2

Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ATP OIL & GAS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Amounts)
 
    
September 30, 2002
     
December 31, 2001
  
    
(unaudited)
  
Assets
                  
Current assets
                  
Cash and cash equivalents
   
$
5,494
 
   
$
5,294
 
Restricted cash
   
 
1,609
 
   
 
–  
 
Accounts receivable (net of allowance of $1,430 and $1,423, respectively)
   
 
26,057
 
   
 
10,371
 
Derivative asset
   
 
–  
 
   
 
1,936
 
Deferred tax asset
   
 
993
 
   
 
–  
 
Other current assets
   
 
3,930
 
   
 
1,754
 
    
  
Total current assets
   
 
38,083
 
   
 
19,355
 
    
  
Oil and gas properties
                  
Oil and gas properties (using the successful efforts method of accounting)
   
 
337,759
 
   
 
319,506
 
Less: Accumulated depreciation, depletion, impairment and amortization
   
 
(221,424
)
   
 
(186,473
)
    
  
Oil and gas properties, net
   
 
116,335
 
   
 
133,033
 
    
  
Furniture and fixtures (net of accumulated depreciation)
   
 
847
 
   
 
794
 
Deferred tax asset
   
 
20,089
 
   
 
19,228
 
Other assets, net
   
 
5,240
 
   
 
5,154
 
    
  
Total assets
   
$
180,594
 
   
$
177,564
 
    
  
Liabilities and Shareholders’ Equity
                  
Current liabilities
                  
Accounts payable and accruals
   
$
25,505
 
   
$
26,426
 
Current maturities of long-term debt
   
 
4,000
 
   
 
22,000
 
Derivative liability
   
 
8,048
 
   
 
–  
 
    
  
Total current liabilities
   
 
37,553
 
   
 
48,426
 
Long-term debt
   
 
84,314
 
   
 
78,111
 
Derivative liability
   
 
541
 
   
 
671
 
Deferred revenue
   
 
1,158
 
   
 
1,296
 
Other long-term liabilities and deferred obligations
   
 
14,499
 
   
 
4,068
 
    
  
Total liabilities
   
 
138,065
 
   
 
132,572
 
    
  
Shareholders’ equity
                  
Preferred stock: $0.001 par value, 10,000,000 shares authorized; none issued
   
 
–  
 
   
 
–  
 
Common stock: $0.001 par value, 100,000,000 shares authorized; 20,392,107 issued and 20,316,267 outstanding at September 30, 2002; 20,388,488 issued and 20,312,648 outstanding at December 31, 2001
   
 
20
 
   
 
20
 
Additional paid in capital
   
 
80,936
 
   
 
80,478
 
Accumulated deficit
   
 
(36,141
)
   
 
(34,614
)
Accumulated other comprehensive income (loss)
   
 
(1,375
)
   
 
19
 
Treasury stock
   
 
(911
)
   
 
(911
)
    
  
Total shareholders’ equity
   
 
42,529
 
   
 
44,992
 
    
  
Total liabilities and shareholders’ equity
   
$
180,594
 
   
$
177,564
 
    
  
 
See accompanying notes to consolidated financial statements.

3

Table of Contents
ATP OIL & GAS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
 
    
Three Months Ended September 30,
     
Nine Months Ended September 30,
  
    
2002
     
2001
     
2002
     
2001
  
Revenue:
                                    
Oil and gas production
   
$
23,159
 
   
$
19,571
 
   
$
69,511
 
   
$
87,081
 
Gas sold—marketing
   
 
1,509
 
   
 
1,312
 
   
 
4,258
 
   
 
6,280
 
    
  
  
  
Total revenues
   
 
24,668
 
   
 
20,883
 
   
 
73,769
 
   
 
93,361
 
    
  
  
  
Costs and operating expenses:
                                    
Lease operating expenses
   
 
4,908
 
   
 
2,454
 
   
 
12,265
 
   
 
9,707
 
Gas purchased—marketing
   
 
1,461
 
   
 
1,260
 
   
 
4,121
 
   
 
6,127
 
Geological and geophysical expenses
   
 
141
 
   
 
764
 
   
 
152
 
   
 
1,236
 
General and administrative expenses
   
 
2,614
 
   
 
2,663
 
   
 
7,648
 
   
 
6,713
 
Non-cash compensation expense
(general and administrative)
   
 
(34
)
   
 
464
 
   
 
453
 
   
 
2,930
 
Depreciation, depletion and amortization
   
 
10,356
 
   
 
13,399
 
   
 
35,246
 
   
 
38,503
 
Impairment on oil and gas properties
   
 
–
 
   
 
3,655
 
   
 
–
 
   
 
17,838
 
    
  
  
  
Total costs and operating expenses
   
 
19,446
 
   
 
24,659
 
   
 
59,885
 
   
 
83,054
 
    
  
  
  
Income (loss) from operations
   
 
5,222
 
   
 
(3,776
)
   
 
13,884
 
   
 
10,307
 
    
  
  
  
Other income (expense):
                                    
Interest income
   
 
12
 
   
 
60
 
   
 
38
 
   
 
853
 
Interest expense
   
 
(2,673
)
   
 
(2,109
)
   
 
(7,953
)
   
 
(7,130
)
Loss on derivative instruments
   
 
–
 
   
 
(3,334
)
   
 
(8,319
)
   
 
(17,496
)
    
  
  
  
Total other income (expense)
   
 
(2,661
)
   
 
(5,383
)
   
 
(16,234
)
   
 
(23,773
)
    
  
  
  
Income (loss) before income taxes and extraordinary item
   
 
2,561
 
   
 
(9,159
)
   
 
(2,350
)
   
 
(13,466
)
Income tax (expense) benefit:
                                    
Current
   
 
(37
)
   
 
–
 
   
 
(37
)
   
 
–
 
Deferred
   
 
(859
)
   
 
2,660
 
   
 
860
 
   
 
3,907
 
    
  
  
  
Income (loss) before extraordinary item
   
 
1,665
 
   
 
(6,499
)
   
 
(1,527
)
   
 
(9,559
)
Extraordinary item, net of tax
   
 
–
 
   
 
–
 
   
 
–
 
   
 
(602
)
    
  
  
  
Net income (loss)
   
$
1,665
 
   
$
(6,499
)
   
$
(1,527
)
   
$
(10,161
)
    
  
  
  
Basic and diluted earnings (loss) per common share:
                                    
Income (loss) before extraordinary item
   
$
0.08
 
   
$
(0.32
)
   
$
(0.08
)
   
$
(0.49
)
Extraordinary item, net of tax
   
 
–
 
   
 
–
 
   
 
–
 
   
 
(0.03
)
    
  
  
  
Net income (loss) per common share
   
$
0.08
 
   
$
(0.32
)
   
$
(0.08
)
   
$
(0.52
)