ATP Oil & Gas Corporation (ATPG) is small ($178 million market cap.) oil and natural gas acquisition, development, and production company engaged (mostly) in the Gulf of Mexico. It also has a significant presence in the North Sea.
Competitors in the Gulf include Apache (APA), Forest Oil (FST) and Newfield (NFX).
Reserves: ATP Oil & Gas Corporation’s estimated net proved reserves on December 31, 2008 were 713.6 billion cubic feet equivalent. At $4 per 1000 cubic feet this works out to a reserve value of $2,582 billion or roughly $70 a share. The reserves were “comprised of 321.7 billion cubic feet of natural gas and 65.3 million barrels of crude oil.” or approximately 2/3 oil and 1/3 natural gas by value. For more detailed reserve reports see the Ryder Scott reports for the Gulf area here and the North Sea area here (pdf formats). A press release on March 2, 2009 claimed that ATPG replaced 214% of its oil and gas production in 2008 (see here).
Financials: Total cash is $215 million or $5.97/share. Note, that as of March 25 cash per share is more than the share price. Total debt is $1.37 billion. Trailing PE is 1.46 and forward PE is 5.37. Of course, forward PE’s are only estimates and can be wildly off. $472 million in recent asset sales have boosted the cash position, so debt should be manageable in today’s low oil and gas price environment.
Insiders: According to Yahoo Finance there are no publicly reported insider sales since the first of the year. There has been over $900,000 acquisitions and purchases since the first of the year.
Summary: Reserve data, financials, and insider transactions all look bullish to me. Both oil and gas have been rising the last few weeks. Even as I write this post, ATPG is on a tear. The stock bottomed at $2.75 in early March. Now, on March 25, at over $5 a share, it is up over 80%. With close to $70/share in reserve value, the stock still seems significantly undervalued. This could be both a resource and momentum play.
The company seems to have weathered to the 2008 oil and gas price downturn well with asset sales and decreased production.
It should be noted that, due its large Gulf of Mexico presence, ATP Oil & Gas is susceptible to hurricane damage. The company claimed that Hurricane Ike in 2008 had “minimal impact”.
Disclosure: Long ATPG
Competitors in the Gulf include Apache (APA), Forest Oil (FST) and Newfield (NFX).
Reserves: ATP Oil & Gas Corporation’s estimated net proved reserves on December 31, 2008 were 713.6 billion cubic feet equivalent. At $4 per 1000 cubic feet this works out to a reserve value of $2,582 billion or roughly $70 a share. The reserves were “comprised of 321.7 billion cubic feet of natural gas and 65.3 million barrels of crude oil.” or approximately 2/3 oil and 1/3 natural gas by value. For more detailed reserve reports see the Ryder Scott reports for the Gulf area here and the North Sea area here (pdf formats). A press release on March 2, 2009 claimed that ATPG replaced 214% of its oil and gas production in 2008 (see here).
Financials: Total cash is $215 million or $5.97/share. Note, that as of March 25 cash per share is more than the share price. Total debt is $1.37 billion. Trailing PE is 1.46 and forward PE is 5.37. Of course, forward PE’s are only estimates and can be wildly off. $472 million in recent asset sales have boosted the cash position, so debt should be manageable in today’s low oil and gas price environment.
Insiders: According to Yahoo Finance there are no publicly reported insider sales since the first of the year. There has been over $900,000 acquisitions and purchases since the first of the year.
Summary: Reserve data, financials, and insider transactions all look bullish to me. Both oil and gas have been rising the last few weeks. Even as I write this post, ATPG is on a tear. The stock bottomed at $2.75 in early March. Now, on March 25, at over $5 a share, it is up over 80%. With close to $70/share in reserve value, the stock still seems significantly undervalued. This could be both a resource and momentum play.
The company seems to have weathered to the 2008 oil and gas price downturn well with asset sales and decreased production.
It should be noted that, due its large Gulf of Mexico presence, ATP Oil & Gas is susceptible to hurricane damage. The company claimed that Hurricane Ike in 2008 had “minimal impact”.
Disclosure: Long ATPG
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