atp oil & gas: modefinance credit report

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modeFinanceTM HeadquarterBuilding A - AREA Science ParkPadriciano 99 - 34149 Trieste - ItalyPh.: +39 040 375 5337Fax: +39 040 375 [email protected]

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ATP OIL & GAS CORPMonday, 20 August 2012

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D C CC CCC B BB BBB A AA AAA

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D C CC CCC B BB BBB A AA AAAnot

available

non return extremlypathological

pathological highdanger

weak sufficient adequate good very

strongextremely

strong

Company name ATP OIL & GAS CORP

Identification number US760362774

Country United States of America

ZIP code and city 77027 - HOUSTON

Address SUITE 200

+1 713 622 3311

www.atpog.com

[email protected]

Legal form Not available

Account Consolidated

Incorporation date 1991

NACE 2 Sector 0610 - Extraction of crude petroleum

Listed

Status Active

MORE Credit limit 2,100,000 e

31/12/2011 31/12/2010 31/12/2009

Turnover (th e) 531,114 327,622 216,683

Rating CCC CC CCC

Probability of default 16.00% 42.00% 16.00%

Confidence Level 100% 100% 100%

Solvency ratios

Leverage ratio 19.37 12.06 3.70

Total asset/Total liabilities 1.05 1.08 1.27

Liquidity ratios

Current Ratio 0.35 0.75 0.92

Quick Ratio 0.35 0.75 0.92

Profitability and economic equili-

brium ratios

Return on investement ROI (%) 5.29 -4.14 -0.61

Return on equity ROE (%) -126.50 -138.42 -8.70

Asset turnover 0.20 0.13 0.11

Interest paid weight 1.82 -1.63 -2.37

Gross Profit/Operating revenue 0.82 0.69 0.73

Interest Coverage ratios

EBIT interest coverage ratio 0.53 -0.07 -0.42

Analysis and trend of financial

strength


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modeFinance TM srlVAT number [email protected]

Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741

Sector Analysis

Company Healthy Balanced Vulnerable Risky

Solvency ratios

Leverage ratio 19.37 0.45 1.24 1.10 -1.57

Total asset/Total liabilities 1.05 3.23 1.79 1.80 0.87

Liquidity ratios

Current Ratio 0.35 2.51 1.04 0.77 0.55

Quick Ratio 0.35 2.07 0.89 0.74 0.55

Profitability and economic equilibrium ratios

Return on investement ROI (%) 5.29 18.12 7.21 -5.32 -87.48

Return on equity ROE (%) -126.50 17.84 10.77 -12.36 -183.70

Asset turnover 0.20 0.40 0.31 0.25 0.23

Interest paid weight 1.82 0.02 0.14 -0.05 -0.12

Gross Profit/Operating revenue 0.82 0.74 0.67 0.55 0.62

Interest Coverage ratios

EBIT interest coverage ratio 0.53 46.61 5.61 -4.73 -1.58

Cash Conversion Cycle (days)

Days Sales Of Inventory (DIO) 0 13 13 11 NaN

Days Sales Outstanding (DSO) 38 36 48 36 83

Days Payable Outstanding (DPO) 0 22 31 40 245

Cash Conversion Cycle (DIO + DSO - DPO) 38 28 24 15 NaN

Numer of analyzed companies - 42 110 49 3

(Average) Rating CCC A BBB B CC

The sector has been chosen according to:

international companies in the sector NACE 2 0610with financial data of year 2011.


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Sector Analysis - Graphs


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Balance Sheet

BALANCE SHEET (th e) 31/12/2011 31/12/2010 31/12/2009

Accounting practice Local GAAP Local GAAP Local GAAP

Exchange rate USD - EUR 0.77286 0.748 0.69416

Total assets 2,619,039 2,460,996 1,945,819

Fixed assets 2,474,404 2,226,132 1,747,354

Intangible fixed assets 0 0 0

Tangible fixed assets 2,424,779 2,172,668 1,725,749

Other fixed assets 49,625 53,465 21,606

Current assets 144,635 234,864 198,464

Stocks 0 0 0

Debtors 54,585 69,367 36,479

Other current assets 90,049 165,496 161,986

Cash & cash equivalent 50,760 115,712 75,636

Shareholders funds 128,595 188,486 413,668

Capital 226,283 104,758 97,217

Other shareholders funds -97,688 83,727 316,451

Total liabilities 2,490,444 2,272,511 1,532,150

Non current liabilities 2,077,263 1,958,255 1,315,364

Long term debt 1,527,287 1,389,622 832,880

Other non-current liabilities 549,975 568,633 482,484

Current liabilities 413,181 314,256 216,786

Loans 26,160 16,175 11,688

Creditors 0 0 0

Other current liabilities 387,021 298,080 205,098

Total shareh. funds & liab. 2,619,039 2,460,996 1,945,819

NET DEBT (th e) 31/12/2011 31/12/2010 31/12/2009

Short term debts 26,160 16,175 11,688

Long term debt 1,527,287 1,389,622 832,880

Cash & cash equivalent 50,760 115,712 75,636

Net debt 1,502,687 1,290,086 768,932

31/12/2011 31/12/2010 31/12/2009

Working capital - - -

Net Current Assets -268,546 -79,392 -18,322

31/12/2011 31/12/2010 31/12/2009

Days Sales Of Inventory (DIO) 0 0 0

Days Sales Outstanding (DSO) 38 77 61

Days Payable Outstanding (DPO) 0 0 0

Cash Conversion Cycle (DIO + DSO - DPO) 38 77 61


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Income Statement

INCOME STATEMENT (th e) 31/12/2011 31/12/2010 31/12/2009

Accounting practice Local GAAP Local GAAP Local GAAP

Exchange rate USD - EUR 0.77286 0.748 0.69416

Sales 531,114 327,622 207,198

Revenues growth (%) 62 58 -

Other revenues +/- variation in inventories and contract in progress + Fixed assets

own construction capitalized0 0 9,485

Operating revenue / turnover 531,114 327,622 216,683

Total operating costs 397,885 339,237 228,643

Costs growth (%) 17 48 -

Service costs - - -

Material costs - - -

Costs of employees - - -

EBITDA 411,557 204,372 127,879

Depreciation 278,328 215,987 139,838

EBIT 133,228 -11,616 -11,960

Financial P/L -247,000 -256,407 -28,381

Financial revenue 172 521 493

Financial expenses 247,172 256,928 28,874

Interest paid 252,269 166,134 28,380

P/L before tax -113,772 -268,023 -40,341

Extr. and other P/L -34,937 -20,010 -11,270

Extr. and other revenue - - -

Extr. and other expenses - - -

P/L before tax + Extr. and other P/L -148,709 -288,032 -51,611

Taxation 13,964 -27,132 -15,642

P/L for period -162,673 -260,900 -35,969

31/12/2011 31/12/2010 31/12/2009

Costs of Good Sold 95,412 100,021 59,156

Gross Profit 435,702 227,601 157,527

Other Operating Expenses 302,474 239,216 169,487

31/12/2011 31/12/2010 31/12/2009

Cash flow 115,656 -44,913 103,869

Added value - - -

31/12/2011 31/12/2010 31/12/2009

Number of employees 59 55 63


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Evolutions and trends


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Qualitative information

Full overview The company is engaged in the acquisition, development, and production of oil and natural gas properties in the

Gulf of Mexico, the North Sea, and the United Kingdom. The company has its registered office located in Houston,

United States. It was founded in the year 1991. The company is publicly traded on the NASDAQ National Market

under the trading symbol ATPG. The company’s business strategy is to enhance shareholder value primarily through

the acquisition, development and production of properties that the company contain oil and natural gas in com-

mercial quantities in areas that have: undeveloped reserves or reservoirs; close proximity to developed markets for

oil and natural gas; existing infrastructure of oil and natural gas pipelines and production / processing platforms;

and a relatively stable regulatory environment for offshore oil and natural gas development and production. It

primarily focuses its efforts on oil and natural gas properties where previous drilling has encountered reservoirs

that appear to contain commercially productive quantities of oil and gas. Many of these properties contain proved

undeveloped reserves that are economically attractive to the company but are not strategic to major or exploration

- oriented independent oil and natural gas companies. Its management team has engineering, geological, geophy-

sical, technical and operational expertise in successfully developing and operating properties in both its current and

planned areas of operation. The company sells its oil and natural gas production under price sensitive or market

price contracts. Its revenues, profitability and future growth depend on prevailing prices for oil and natural gas.

As of December 2006, it had leasehold and other interests in 72 offshore blocks, 44 platforms, and 112 wells,

including 14 subsea wells in the Gulf of Mexico, as well as in 11 blocks and 2 company - operated subsea wells in

the North Sea. The company has estimated net proved reserves of 636. 9 billion cubic feet equivalent comprising

329. 2 billion cubic feet of natural gas and 51. 3 million barrels of crude oil. Through its subsidiaries, it is also

present in the Netherlands.

History Not available.

Primary business line Engaged in the acquisition, development, and production of oil and natural gas properties in the Gulf of Mexico,

the North Sea, and the United Kingdom.

Secondary business line Not available.

Main activity Services.

Secondary activity Not available.

Main products and services Oil and natural gas properties.

Size estimate Not available.

Strategy, organization and policy To enhance shareholder value primarily through the acquisition, development and production of properties that

the company contain oil and natural gas in commercial quantities in areas that have: Undeveloped reserves or

reservoirs; close proximity to developed markets for oil and natural gas; existing infrastructure of oil and natural

gas pipelines and production / processing platforms; and a relatively stable regulatory environment for offshore oil

and natural gas development and production.

Strategic alliances Not available.

Membership of a network Not available.

Main brand names Not available.


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Main domestic country United States of America.

Main foreign countries or regions Gulf of Mexico; North Sea; United Kingdom; Netherlands.

Main production sites Not available.

Main distribution sites Not available.

Main sales representation sites Not available.

Main customers Not available.

Auditor/Advisor/Bank

name type address

PRICEWATERHOUSECOOPERS LLP Auditor -

American Stock Transfer & Trust Transfer Agent -

Board

name date of birth nationality function

Mr. Burt A Adams - - Independent Director

Mr. Chris A Brisack - - Independent Director

Mr. Arthur H Dilly - - Independent Director

Mr. George R Edwards - - Independent Director

Mr. Robert J Karow - - Independent Director

Mr. Brent M Longnecker - - Independent Director

Mr. Gerard J Swonke - - Independent Director

Mr. Walter Wendlandt - - Independent Director


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Sharehoders (the first twenty shareholders ordered by Direct %))

BULMAHN PAUL T. Rating:

Country ISO code - Operating Revenue (MIL $) -

NACE Rev. 2, Core code - Total Assets (MIL $) -

Direct % 9.27 Number of Employees -

Total % - Information date 2012/04

Address : Not available

ALETHEIA RESEARCH AND MANAGEMENT, INC. via its funds Rating:

Country ISO code US Operating Revenue (MIL $) 0.61


Direct % - Number of Employees 9

Total % 5.54 Information date 2012/03


BLACKROCK, INC. via its funds Rating: BB

Country ISO code US Operating Revenue (MIL $) 9081

NACE Rev. 2, Core code - Total Assets (MIL $) 179896




VANGUARD GROUP, INC. THE via its funds Rating:


NACE Rev. 2, Core code - Total Assets (MIL $) 1830.07




STATE STREET CORPORATION via its funds Rating:






D. E. SHAW & CO., L.P. via its funds Rating:






CREDIT SUISSE GROUP AG via its funds Rating:

Country ISO code CH Operating Revenue (MIL $) 23562.55






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ALTA ADVISERS LIMITED via its funds Rating: BBB

Country ISO code GB Operating Revenue (MIL $) 34.59





SUSQUEHANNA INTL GROUP via its funds Rating:

Country ISO code US Operating Revenue (MIL $) -





BANK OF AMERICA CORPORATION via its funds Rating:






NORTHERN TRUST CORPORATION via its funds Rating:






TEACHERS INSURANCE & ANNUITY ASSOCIATION OF AMERICA via its funds Rating:






ANTHION CAPITAL GP LLC via its funds Rating:






GOLDMAN SACHS GROUP, INC via its funds Rating:







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JP MORGAN CHASE & CO. via its funds Rating:






GOVERNMENT OF NORWAY via its funds Rating:

Country ISO code NO Operating Revenue (MIL $) -


Direct % - Number of Employees -



JACOBS LEVY EQUITY MANAGEMENT, INC. via its funds Rating:






MILLENNIUM MANAGEMENT, LLC via its funds Rating:






BANK OF NEW YORK MELLON CORPORATION via its funds Rating:






ROYAL BANK OF CANADA RBC via its funds Rating:

Country ISO code CA Operating Revenue (MIL $) 24391.89






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Subsidiaries (the first twenty subsidiaries ordered by Direct %)

ATP OIL & GAS (NETHERLANDS) B.V. Rating: A

Country ISO code NL Operating Revenue (MIL $) -


Direct % 100.00 Number of Employees 2


ATP OIL & GAS (UK) LIMITED Rating: C

Country ISO code GB Operating Revenue (MIL $) 20.91


Direct % WO Number of Employees 7

Total % WO Information date 2012/05

ATP ENERGY INC Rating:



Direct % MO Number of Employees 48

Total % - Information date 2012/01


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ASKMORE rating guide

General vision A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of

an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk

factors.

The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial

companies by using data included in financial statements.

The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy

model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the

model are obtained by applying newly developed numerical methodologies, drawing together financial theory,

data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective

algorithm that produces a classification of each company, by taking into account any attributes (such as sector and

country) characterizing a firm.

The model gives the opportunity to assign a rating to a company even without considering a complete data analysis

and allows to process quality information. It induces a better understanding of a company’s strength and weakness

thanks to sophisticated data mining tools and taking into account the analyst knowledge.

The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the

rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium

between the different aspects, better will be the final rating.

This is done studying, evaluating and aggregating the most important sections of the financial and economic

behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.


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Rating scale

Rating class Rating macro class Assessment

AAA

Healthy

The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent

economic and financial flow and fund equilibrium.

AAThe company has very strong creditworthiness. It also has a good capital structure and economic and financial

equilibrium. Difference from AAA is slight.

AThe company has a high solvency. The company is however more susceptible to the adverse effects of changes in

circumstances and economic conditions than companies in higher rated categories.

BBB

Balanced

Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial

commitments could be affected by serious unfavourable events.

BBA company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing

uncertainties or exposure to adverse business, financial, or economic conditions.

B

Vulnerable

The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic

conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.

CCC

A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial

fundamentals. Adverse market events and an inadequate management could affect with high probability the

company’s solvency.

CC

Risky

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the

company’s strong disequilibrium could increase.

CThe company shows considerable pathological situations. The company’s capacity to meet its financial

commitments is very low.

D The company has not any longer the capacity to meet its financial commitments.


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Fundamental Credit Rating Ratios

Analysis area Ratio Assessment

Solvency ratios

Leverage ratioThis measures the level of total liabilities of the company in comparison

with equity.

Assets to debtThis indicates company’s solvency. The company shows a level of deficit

when the value of this ratio is under one unit.

Financial ratios Fixed Assets coverage ratioThis is calculated only for holdings. It measures the capital structure i.e.

whether a company covers the fixed assets with long term capital.

Liquidity ratios

Current ratioThis measures whether a company has sufficient short-term assets to cover

its short-term liabilities.

Quick ratioThis compares current liabilities only to those assets that can be readily

turned into cash.

Profitability and economic ratios

Return on Investement(ROI)This measures the profitability of company investments without regard to

the way the investment is financed.

Return on Equity(ROE) This measures the profitability of the equity.

Asset turnover

This indicates the investments turnover with regards to sales. The level

assumed from the ratio depends on the sector in which the company

operates.

Profit margin This indicates the profitability of sales.

Interest coverage ratio Interest Paid coverage

This indicate the ability of the company to cover interest expenses through

the economic margins (Gross profit and EBIT) and through the cash flow

from operating activities.


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MORE Credit Limit, Probability of default and Confidence Level

MORE Credit Limit MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial

relationship with the analyzed company with an outlook of one year.

modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size;

• Years in Business;

• Average number of suppliers;

• Liquidity of the company and the comparison with its sector;

• The funds dedicated to be paid to suppliers;

• The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual

public data. This value should be reviewed by paying attention to the Confidence Level value and by using other

information such as other business information, news... etc; and private information such as the relationship with

client, history of payments, guarantees and the knowledge of the sector.

Probability of default e Confidence

Level

In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of

confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go

into default.

As the probability of default is strongly affected by the economic climate that the company is operating in,

companies in the same MORE class will not necessarily have the same probability of default.

The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:

Confidence =

∑Available Information∑

Total Information

The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in

availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the

MORE rating is able to take into account for each company.

For companies with fully populated records a confidence level of 100% would be applied: companies where no

financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.


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Notes and disclaimer

NOTES modeFinance has based the present analysis on the company available financial statements, coming from one or

more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s

database etc.

DISCLAIMER All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any

form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of

the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot

be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will

be based on information gathered in good faith from both primary and secondary sources, whose accuracy we

are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken

based on any information that may subsequently prove to be incorrect.

Contacts

Company modeFinance

Products MORE rating

Where AREA Science Park

34149 Trieste, via Padriciano 99 - ITALY

Info [email protected]

web www.modefinance.com

Phone +39 040 3755337

atp oil & gas: modefinance credit report

Documents

quick ratio

levelof credit risk

liquidity ratioscurrent

asset turnover

aa aaanotavailablenon

report type

investement roi

total assettotal liabilities