ATP Announces Annual Financials and 2007 Record Results

HOUSTON--(Business Wire)--
ATP Oil & Gas Corporation (NASDAQ:ATPG) today announced annual and
fourth quarter 2007 results which include record revenues, record
production and record reserves.

Highlights include:

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-- $599.3 million of 2007 oil and gas revenue, a 45% increase
over previous year, of which 48% was derived from oil and
condensate;
-- Annual net income available to common shareholders of $48.6
million;
-- Annual production increase of 26%;
-- Pre-tax PV-10 of $3.5 billion of proved reserves, with an
estimated 63% of future revenues from oil and condensate sales
(see non-GAAP reconciliation toward the end of this press
release);
-- 119.3 MMBoe (715.6 Bcfe) of proved reserves, a 12%
increase over previous year;
-- 41.3 MMBoe (247.8 Bcfe) of proved developed reserves, a
16% increase over previous year;
-- 6.7 MMBoe (40.4 Bcfe) net upward proved reserve revisions
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Results of Operations

Oil and gas production increased 26% to 10.7 MMBoe (64.0 Bcfe) for
2007, compared to 8.5 MMBoe (50.9 Bcfe) for 2006. Oil and gas
production increased 31% to 3.4 MMBoe (20.2 Bcfe) in the fourth
quarter 2007, compared to 2.5 MMBoe (15.4 Bcfe) for the fourth quarter
2006.

Revenue from oil and gas production totaled $599.3 million for
2007, compared to $414.2 million for 2006. Revenue from oil and gas
production totaled $205.7 million for the fourth quarter 2007,
compared to $127.2 million for the fourth quarter 2006.

ATP recorded net income available to common shareholders of $48.6
million or $1.58 per basic and $1.55 per diluted share for 2007,
compared to a net loss available to common shareholders of $39.3
million or $1.33 per basic and $1.33 per diluted share for 2006. ATP
recorded net income available to common shareholders of $12.7 million
or $0.39 per basic and $0.38 per diluted share for the fourth quarter
2007, compared to a net loss available to common shareholders of $37.0
million or $1.24 per basic and $1.24 per diluted share for the fourth
quarter 2006.

Net income available to common shareholders for the fourth quarter
2007 was impacted by three non-recurring items research analysts
typically exclude from their published estimates, including impairment
of oil and gas properties of $24.5 million, loss on abandonment of
$18.3 million and revenues from insurance of $7.0 million related to
loss of production income insurance claims realized. Accordingly, net
income before these three nonrecurring items, a non-GAAP measure, in
the fourth quarter 2007 was $48.5 million or $1.47 per basic and $1.45
per diluted share. For the same metric in 2007, ATP recorded $93.0
million or $3.02 per basic and $2.97 per diluted share. A non-GAAP
reconciliation is provided near the end of this press release.

ATP's selected operating statistics and financial information,
included within this press release, contain additional information on
the company's activities for annual and fourth quarter 2007 and the
comparable periods in 2006.

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Three Months Ended Year Ended
December 31, December 31,
------------------ ------------------
2007 2006 2007 2006
-------- --------- -------- ---------
Selected Operating Statistics

Production
Natural gas (MMcf) 10,742 8,844 37,013 31,224
Gulf of Mexico 6,478 5,031 24,926 19,195
North Sea 4,264 3,813 12,087 12,029

Oil and condensate (MBbls) 1,572 1,091 4,498 3,273
Gulf of Mexico 1,564 1,086 4,475 3,250
North Sea 7 5 23 23

Natural gas equivalents
(MMcfe) 20,172 15,392 64,002 50,860
Gulf of Mexico 15,864 11,545 51,776 38,696
North Sea 4,308 3,846 12,225 12,164

Average Prices (includes effect
of cash flow hedges)
Natural gas (per Mcf) $ 8.65 $ 8.29 $ 8.39 $ 7.57
Gulf of Mexico 8.51 7.90 8.30 7.59
North Sea 8.87 8.80 8.57 7.35
Oil and condensate (per Bbl) 71.74 49.28 64.20 54.25
Natural gas, oil and
condensate (per Mcfe) 10.20 8.26 9.36 8.14

Other Expenses, per Mcfe
Lease operating expense (per
Mcfe) $ 1.46 $ 1.15 $ 1.43 $ 1.42
Gulf of Mexico 1.44 0.97 1.41 1.42
North Sea 1.52 1.69 1.55 1.45
Depreciation, depletion and
amortization (DD&A) 4.35 3.52 3.87 3.34
Gulf of Mexico 3.87 3.35 3.57 3.27
North Sea 6.12 4.01 5.12 3.53

Selected Financial Data
(In Thousands, Except Per Share
Data)

Oil and gas revenues, including
settled derivatives (1) $205,684 $127,075 $599,250 $414,072
Net income (loss) 12,740 (20,147) 48,620 6,877
Preferred dividends - (16,885) - (46,225)
Net income (loss) available to
common shareholders 12,740 (37,032) 48,620 (39,348)

Net income (loss) per common
share
Basic $ 0.39 $ (1.24) $ 1.58 $ (1.33)
================== ==================
Diluted $ 0.38 $ (1.24) $ 1.55 $ (1.33)
================== ==================

Weighted average number of
common shares outstanding
Basic 32,967 29,841 30,793 29,693
================== ==================
Diluted 33,472 30,911 31,301 30,402
================== ==================

--------------------------------
(1) See oil and gas revenue reconciliation toward the end of this
press release.
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4th Quarter 2007 Conference Call

ATP management will host a conference call on Monday, March 3 at
10:00 am central time to discuss the company's year-end results
followed by a Q&A session.

4th Quarter and Year-End 2007 Conference Call

Date: Monday, March 3, 2008

Time: 11:00 am ET; 10:00 am CT; 9:00 am MT and 8:00 am PT

ATP invites interested persons to listen to the Internet webcast
on the company's website, www.atpog.com, linking through the Investor
Info page and the Conference Calls link. Phone participants should
dial (877) 723-9511. A digital replay of the conference call will be
available at (888) 203-1112, ID number 4514680, for a period of 24
hours beginning at 1:00 pm CT, and the webcast will be archived for 30
business days at www.atpog.com.

About ATP Oil & Gas

ATP Oil & Gas is focused on development and production of natural
gas and oil in the Gulf of Mexico and the North Sea. The company
trades publicly as ATPG on the NASDAQ Global Select Market. For more
information about ATP Oil & Gas Corporation, visit www.atpog.com.

Forward-looking Statements

Certain statements included in this news release are
"forward-looking statements" under the Private Securities Litigation
Reform Act of 1995. ATP cautions that assumptions, expectations,
projections, intentions, or beliefs about future events may, and often
do, vary from actual results and the differences can be material. Some
of the key factors which could cause actual results to vary from those
ATP expects include changes in natural gas and oil prices, the timing
of planned capital expenditures, availability of acquisitions,
uncertainties in estimating proved reserves and forecasting production
results, operational factors affecting the commencement or maintenance
of producing wells, the condition of the capital markets generally, as
well as ATP's ability to access them, and uncertainties regarding
environmental regulations or litigation and other legal or regulatory
developments affecting our business. More information about the risks
and uncertainties relating to ATP's forward-looking statements are
found in the company's SEC filings.

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CONSOLIDATED BALANCE SHEETS
(In Thousands)

December 31,
-----------------------
2007 2006
----------- -----------
Assets

Current assets:
Cash and cash equivalents $ 199,449 $ 182,592
Restricted cash 13,981 27,497
Accounts receivable (net of allowance of
$382 and $409) 127,891 105,030
Deferred tax asset 84,110 1,113
Derivative asset 1,286 1,170
Other current assets 15,934 9,931
----------- -----------
Total current assets 442,651 327,333
----------- -----------

Oil and gas properties:
Oil and gas properties (using the successful
efforts method of accounting) 2,556,938 1,539,352
Less: Accumulated depletion, impairment and
amortization (726,358) (443,707)
----------- -----------
Oil and gas properties, net 1,830,580 1,095,645
----------- -----------

Furniture and fixtures, net 860 1,079
Derivative asset 673 -
Deferred financing costs, net 19,873 13,272
Other assets, net 12,496 9,729
----------- -----------
Total assets $2,307,133 $1,447,058
=========== ===========

Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable and accruals $ 270,557 $ 195,846
Current maturities of long-term debt 12,165 8,987
Current maturities of long-term capital
lease - 23,699
Asset retirement obligation 28,194 21,297
Derivative liability 11,335 -
Other current liabilities 23,512 -
----------- -----------
Total current liabilities 345,763 249,829

Long-term debt 1,391,846 1,062,454
Asset retirement obligation 158,577 87,092
Deferred tax liability 85,256 11,765
Derivative liability 13,242 -
Other liabilities 2,583 -
----------- -----------
Total liabilities 1,997,267 1,411,140
----------- -----------

Shareholders' equity:
Preferred stock: $0.001 par value - -
Common stock: $0.001 par value 36 30
Additional paid-in capital 388,250 151,467
Accumulated deficit (92,061) (140,681)
Accumulated other comprehensive income 14,552 26,013
Treasury stock, at cost (911) (911)
----------- -----------
Total shareholders' equity 309,866 35,918
----------- -----------
Total liabilities and shareholders' equity $2,307,133 $1,447,058
=========== ===========
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CONSOLIDATED INCOME STATEMENTS
(In Thousands, Except Per Share Amounts)

Three Months Ended Year Ended
December 31, December 31,
------------------- --------------------
2007 2006 2007 2006
--------- --------- ---------- ---------

Oil and gas production $205,684 $127,230 $ 599,324 $414,182
Other revenues 7,013 5,639 8,611 5,639
--------- --------- ---------- ---------
Total revenues 212,697 132,869 607,935 419,821
--------- --------- ---------- ---------

Costs, operating expenses and
other:
Lease operating 29,367 17,646 91,693 72,446
Exploration 621 63 13,756 2,231
General and administrative 9,068 9,813 32,018 32,976
Depreciation, depletion and
amortization 87,749 54,159 247,378 169,704
Impairment of oil and gas
properties 24,544 7,760 34,342 19,520
Accretion of asset
retirement obligation 3,098 2,603 12,117 8,076
Loss on abandonment 18,270 5,748 18,649 9,603
Other, net (1,637) (7) (3,706) (7)
--------- --------- ---------- ---------
Total costs, operating
expenses and other 171,080 97,785 446,247 314,549
--------- --------- ---------- ---------
Income from operations 41,617 35,084 161,688 105,272
--------- --------- ---------- ---------

Other income (expense):
Interest income 1,656 1,375 7,603 4,532
Interest expense (33,761) (19,969) (121,302) (58,018)
Loss on extinguishment of
debt - (28,115) - (28,115)
--------- --------- ---------- ---------
Total other expense (32,105) (46,709) (113,699) (81,601)
--------- --------- ---------- ---------

Income (loss) before income
taxes 9,512 (11,625) 47,989 23,671
--------- --------- ---------- ---------
Income tax benefit (expense):
Current (353) 1,508 1,179 (2,528)
Deferred 3,581 (10,030) (548) (14,266)
--------- --------- ---------- ---------
Total 3,228 (8,522) 631 (16,794)
--------- --------- ---------- ---------

Net income 12,740 (20,147) 48,620 6,877
--------- --------- ---------- ---------

Preferred dividends - (16,885) - (46,225)
--------- --------- ---------- ---------

Net income (loss) available
to common shareholders $ 12,740 $(37,032) $ 48,620 $(39,348)
========= ========= ========== =========

Net income (loss) per common
share:
Basic $ 0.39 $ (1.24) $ 1.58 $ (1.33)
========= ========= ========== =========
Diluted $ 0.38 $ (1.24) $ 1.55 $ (1.33)
========= ========= ========== =========

Weighted average common
shares outstanding:
Basic 32,967 29,841 30,793 29,693
========= ========= ========== =========
Diluted 33,472 30,911 31,301 30,402
========= ========= ========== =========
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CONSOLIDATED CASH FLOW DATA
(In Thousands)

Year Ended
December 31,
---------------------
2007 2006
---------- ----------

Cash flows from operating activities:
Net income $ 48,620 $ 6,877
Adjustments to operating activities 335,237 259,444
Changes in assets and liabilities (54,469) (7,807)
---------- ----------
Net cash provided by operating activities 329,388 258,514
---------- ----------

Cash flows from investing activities:
Additions to oil and gas properties (849,491) (577,012)
Proceeds from disposition of assets 650 -
Additions to furniture and fixtures (348) (381)
(Increase) decrease in restricted cash 14,096 (13,290)
---------- ----------
Net cash used in investing activities (835,093) (590,683)
---------- ----------

Cash flows from financing activities:
Proceeds from long-term debt 574,500 728,500
Principal payments of long-term debt (244,287) (4,435)
Deferred financing costs (14,148) (24,551)
Issuance of preferred stock, net of related
costs - 145,463
Issuance of common stock, net of related costs 226,706 -
Redemption of preferred stock - (381,083)
Principal payments of capital lease (23,950) (20,869)
Exercise of stock options 2,974 4,966
---------- ----------
Net cash provided by financing activities 521,795 447,991
---------- ----------

Effect of exchange rate changes on cash 767 1,204
---------- ----------

Net increase in cash and cash equivalents 16,857 117,026
Cash and cash equivalents, beginning of period 182,592 65,566
---------- ----------

Cash and cash equivalents, end of period $ 199,449 $ 182,592
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Reconciliation of PV-10 to Standardized Measure
(In thousands)

Net present value of future net cash flows, before income
taxes, or PV-10 $3,497,262
Future income taxes, discounted at 10% (857,295)
----------
Standardized measure of discounted future net cash flows $2,639,967
==========

Note: PV-10 is not a substitute for the standardized measure. Our PV-
10 measure and the standardized measure of discounted future net cash
flows do not purport to present the fair value of our natural gas and
oil reserves. We include it herein because we believe analysts
typically use this measure to compare companies in the oil and gas
industry.
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Pro Forma Net Income Before Significant Nonrecurring Items
(In thousands, except per share amounts)

Three Months Ended Year Ended
December 31, December 31,
------------------ ------------------
2007 2006 2007 2006
-------- --------- -------- ---------
Net income (loss) available to
common shareholders $12,740 $(37,032) $48,620 $(39,348)
Insurance recoveries (7,013) (5,639) (8,611) (5,639)
Impairment of oil and gas
properties 24,544 7,760 34,342 19,520
Loss on debt extinguishment - 28,115 - 28,115
Loss on abandonment 18,270 5,748 18,649 9,603
-------- --------- -------- ---------
Pro forma net income (loss)
available to common
shareholders before significant
non-recurring items $48,541 $ (1,048) $93,000 $ 12,251
======== ========= ======== =========

Pro forma net income (loss) per
common share:
Basic $ 1.47 $ (0.04) $ 3.02 $ 0.41
======== ========= ======== =========
Diluted $ 1.45 $ (0.03) $ 2.97 $ 0.40
======== ========= ======== =========

Weighted average number of
common shares outstanding:
Basic 32,967 29,841 30,793 29,693
======== ========= ======== =========
Diluted 33,472 30,911 31,301 30,402
======== ========= ======== =========
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Revenue Reconcilation
(In thousands)

Three Months Ended Year Ended
December 31, December 31,
------------------- -----------------
2007 2006 2007 2006
--------- --------- -------- --------

Oil and gas revenues, including
the effects of settled
derivatives $ 205,684 $ 127,075 $599,250 $414,072
Hedging ineffectiveness - 155 74 110
--------- --------- -------- --------
Revenues from oil and gas
production per income
statements $ 205,684 $ 127,230 $599,324 $414,182
========= ========= ======== ========
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ATP Oil & Gas Corporation, Houston
T. Paul Bulmahn, 713-622-3311
Chairman and President
or
Albert L. Reese Jr., 713-622-3311
Chief Financial Officer
www.atpog.com

Copyright Business Wire 2008