ATP Oil & Gas Slips To Loss In Q3

11/5/2009 3:34 AM ET

(RTTNews) - ATP Oil & Gas Corp. (ATPG: News ) reported Thursday a loss for the third quarter, reflecting sharp declines in both production and prices of oil and gas. Meanwhile, the company raised its estimated capital expenses budget for fiscal 2009.

For the third quarter, net loss attributable to common shareholders was $9.12 million or $0.20 per share, compared to net income of $36.48 million or $1.02 per share in the previous year.

On average, 10 analysts polled by Thomson Reuters expected the company to report a loss of $0.08 per share for the third quarter. Analysts' estimate typically excludes special items.

For the latest quarter, net income attributable to the redeemable non-controlling interest was $3.55 million.

Income from operations dropped year-over-year to $2.37 million from $26.58 million.

Oil and gas revenues for the period plunged to $75.01 million from $118.35 million in the third quarter of the prior fiscal year. Seven analysts were expecting revenue of $85.82 for the third quarter.

Oil and gas production for the three-month period was 1.4 million barrels of oil equivalent, or MMBoe, constituting 56% oil, down from 2.0 MMBoe, constituting 40% oil, in the year-ago period.

Average prices of natural gas, oil and condensate slid to $46.50 per barrel of oil equivalent from $52.02 per barrel of oil equivalent.

ATP noted that in the North Sea, the partial sale of producing properties along with the cut-back of production on lower than anticipated gas prices resulted in lower volumes in 2009 compared with the previous periods. Further, in the Gulf of Mexico, unplanned maintenance on the turbine-compressors at Gomez and normal dip in production rates led to lower production volumes in the same comparable periods.

Interest expense came down sharply to $9.00 million from $26.61 million, while the company recorded derivative expense of $3.46 million compared with income of $40.96 million in comparable quarter of fiscal 2008.

For the nine-month period, net loss attributable to common shareholders was $11.85 million or $0.30 per share, compared to profit of $71.55 million or $1.99 per share in fiscal 2008. Total revenue plunged to $237.83 million from $537.09 million in the same period last year.

Total capital expenditures for the first three quarters of 2009 were $559.6 million, including capitalized interest of about $71.5 million and foreign exchange gains and other noncash additions of $23.5 million. These costs were incurred mainly at the Telemark Hub, the Gomez Hub and the Canyon Express Hub in the Gulf of Mexico and the Cheviot development in the North Sea.