ATP Announces Record Earnings and Operating Results For First Quarter 2008

HOUSTON--(Business Wire)--
ATP Oil & Gas Corporation (NASDAQ:ATPG) today announced first
quarter 2008 results which include record production, record revenues
and record earnings.

Highlights include:

-- 3.6 MMBoe (21.6 Bcfe) of production, a 36% increase over first
quarter 2007;

-- $226.0 million of oil and gas revenue, a 56% increase over
first quarter 2007;

-- $46.8 million of net income, a 71% increase over first quarter
2007;

-- Net income of $1.29 per diluted share.

Oil and gas production increased 36% to 3.6 MMBoe (21.6 Bcfe) for
the first quarter of 2008, compared to 2.6 MMBoe (15.9 Bcfe) for the
first quarter of 2007. Oil production was 1.6 MMBbls and natural gas
production was 11.8 Bcf for the first quarter of 2008, compared to 1.0
MMBbls and 9.8 Bcfe for the first quarter of 2007.

Revenue from oil and gas production totaled $226.0 million for the
first quarter of 2008, compared to $144.7 million for the first
quarter of 2007. Revenue from oil and condensate sales was $119.9
million and revenue from and natural gas sales was $106.1 million for
the first quarter of 2008. Revenue from oil and condensate sales was
$54.7 million and revenue from natural gas sales was $89.9 million for
the first quarter of 2007.

ATP recorded net income of $46.8 million or $1.31 per basic and
$1.29 per diluted share for the first quarter of 2008, compared to
$27.4 million or $0.92 per basic and $0.89 per diluted share for the
first quarter of 2007.

Net income for the first quarter of 2008 was impacted by one item
research analysts typically exclude from their published estimates, a
loss on abandonment of $0.4 million. Accordingly, net income before
this item, a non-GAAP measure, in the first quarter of 2008 was $47.2
million or $1.32 per basic and $1.30 per diluted share. For the same
metric in the first quarter of 2007, ATP recorded $27.5 million or
$0.92 per basic and $0.90 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 the first quarter of 2008 and the
comparable period of 2007.

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Three Months Ended
March 31,
------------------
2008 2007
------------------
Selected Operating Statistics

Production
Natural gas (MMcf) 11,844 9,825
Gulf of Mexico 6,465 6,138
North Sea 5,379 3,687

Oil and condensate (MBbls) 1,622 1,012
Gulf of Mexico 1,610 1,005
North Sea 12 7

Natural gas equivalents (MMcfe) 21,574 15,896
Gulf of Mexico 16,122 12,170
North Sea 5,451 3,727

Average Prices (includes effect of cash flow
hedges)
Natural gas (per Mcf) $ 8.96 $ 9.15
Gulf of Mexico 9.28 8.47
North Sea 8.57 10.29
Oil and condensate (per Bbl) 73.96 54.09
Natural gas, oil and condensate (per Mcfe) 10.48 9.11

Other Expenses, per Mcfe
Lease operating expense (per Mcfe) $ 1.14 $ 1.33
Gulf of Mexico 1.09 1.27
North Sea 1.28 1.49
Depreciation, depletion and amortization (DD&A) 4.14 3.36
Gulf of Mexico 3.48 3.11
North Sea 6.09 4.18

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

Oil and gas revenues, including settled
derivatives(1) $226,037 $144,675
Net income 46,845 27,434

Net income per share:
Basic $ 1.31 $ 0.92
==================
Diluted $ 1.29 $ 0.89
==================

Weighted average shares outstanding:
Basic 35,824 29,969
==================
Diluted 36,247 30,702
==================

---------------------------------------------------
(1) See oil and gas revenue reconciliation toward the end of this
press release.
*T

1st Quarter 2008 Conference Call

ATP Oil & Gas Corporation (NASDAQ: ATPG) will host a live
conference call on Thursday, May 8 at 9:30 am central time to discuss
the company's record first quarter results, followed by a Q&A session.

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Date: Thursday, May 8, 2008
Time: 10:30 am ET; 9:30 am CT; 8:30 am MT and 7:30 am PT
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ATP invites interested persons to listen to the live 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 (800) 533-7619. A digital replay of the conference call
will be available at (888) 203-1112, ID number 6226994, for a period
of 24 hours beginning at 12:00 pm CT, and the webcast will be archived
for 30 business days at www.atpog.com.

About ATP Oil & Gas Corporation

ATP Oil & Gas is focused on development and production of oil and
natural gas 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)

March 31, December 31,
2008 2007
----------- ------------
Assets

Current assets:
Cash and cash equivalents $ 104,572 $ 199,449
Restricted cash 13,966 13,981
Accounts receivable (net of allowance of
$382 and $382) 122,237 127,891
Deferred tax asset 54,887 84,110
Derivative asset 444 1,286
Other current assets 20,541 15,934
----------- ------------
Total current assets 316,647 442,651
----------- ------------

Oil and gas properties:
Oil and gas properties (using the
successful efforts method of accounting) 2,748,975 2,556,938
Less: Accumulated depletion, impairment and
amortization (817,488) (726,358)
----------- ------------
Oil and gas properties, net 1,931,487 1,830,580
----------- ------------

Furniture and fixtures, net 778 860
Derivative asset 491 673
Deferred financing costs, net 17,569 19,873
Other assets, net 12,604 12,496
----------- ------------
Total assets $2,279,576 $2,307,133
=========== ============

Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable and accruals $ 208,673 $ 270,557
Current maturities of long-term debt 12,165 12,165
Asset retirement obligation 26,417 28,194
Derivative liability 37,621 11,335
Other current liabilities 20,475 23,512
----------- ------------
Total current liabilities 305,351 345,763

Long-term debt 1,390,588 1,391,846
Asset retirement obligation 163,331 158,577
Deferred tax liability 58,213 85,256
Derivative liability 11,956 13,242
Other liabilities 2,581 2,583
----------- ------------
Total liabilities 1,932,020 1,997,267
----------- ------------

Shareholders' equity:
Preferred stock: $0.001 par value - -
Common stock: $0.001 par value 36 36
Additional paid-in capital 391,199 388,250
Accumulated deficit (45,216) (92,061)
Accumulated other comprehensive income 2,448 14,552
Treasury stock, at cost (911) (911)
----------- ------------
Total shareholders' equity 347,556 309,866
----------- ------------
Total liabilities and shareholders'
equity $2,279,576 $2,307,133
=========== ============
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CONSOLIDATED INCOME STATEMENTS
(In Thousands, Except Per Share Amounts)

Three Months Ended
March 31,
-------------------
2008 2007
--------- ---------

Oil and gas revenues $226,037 $144,749
Other revenues 897 1,598
--------- ---------
Total revenues 226,934 146,347
--------- ---------

Costs, operating expenses and other:
Lease operating 24,618 21,069
Exploration 141 731
General and administrative 9,236 8,768
Depreciation, depletion and amortization 89,399 53,400
Accretion of asset retirement obligation 4,300 2,960
Loss on abandonment 377 77
Other, net (27) -
--------- ---------
Total costs, operating expenses and other 128,044 87,005
--------- ---------
Income from operations 98,890 59,342
--------- ---------

Other income (expense):
Interest income 1,228 2,068
Interest expense, net (28,127) (26,799)
--------- ---------
Total other expense (26,899) (24,731)
--------- ---------

Income before income taxes 71,991 34,611
--------- ---------
Income tax (expense) benefit:
Current (12,436) (56)
Deferred (12,710) (7,121)
--------- ---------
Total (25,146) (7,177)
--------- ---------

Net income $ 46,845 $ 27,434
========= =========

Net income per share:
Basic $ 1.31 $ 0.92
========= =========
Diluted $ 1.29 $ 0.89
========= =========

Weighted average shares outstanding:
Basic 35,824 29,969
========= =========
Diluted 36,247 30,702
========= =========
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CONSOLIDATED CASH FLOW DATA
(In Thousands)

Three Months Ended
March 31,
---------------------
2008 2007
---------- ----------

Cash flows from operating activities:
Net income $ 46,845 $ 27,434
Adjustments to operating activities 115,179 68,722
Changes in assets and liabilities (35,375) (11,973)
---------- ----------
Net cash provided by operating activities 126,649 84,183
---------- ----------

Cash flows from investing activities:
Additions to oil and gas properties (215,021) (169,485)
Additions to furniture and fixtures (47) (154)
Increase in restricted cash - (14)
---------- ----------
Net cash used in investing activities (215,068) (169,653)
---------- ----------

Cash flows from financing activities:
Proceeds from long-term debt - 375,000
Principal payments of long-term debt (3,042) (178,184)
Net profits interest payments (3,583) -
Deferred financing costs - (8,445)
Principal payments of capital lease - (23,950)
Exercise of stock options 28 230
---------- ----------
Net cash (used) provided by financing activities (6,597) 164,651
---------- ----------

Effect of exchange rate changes on cash 139 (24)
---------- ----------

Net increase (decrease) in cash and cash
equivalents (94,877) $ 79,157
Cash and cash equivalents, beginning of period 199,449 182,592
---------- ----------

Cash and cash equivalents, end of period $ 104,572 $ 261,749
========== ==========
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Reconciliation of Non-GAAP Measures
(In Thousands, except per share data)

Three Months Ended
March 31,
------------------
2008 2007
-------- --------

Net income $ 46,845 $ 27,434
Loss on abandonment 377 77
-------- --------
Adjusted net income $ 47,222 $ 27,511
======== ========

Adjusted net income per share:
Basic $ 1.32 $ 0.92
======== ========
Diluted $ 1.30 $ 0.90
======== ========

Weighted average shares outstanding:
Basic 35,824 29,969
======== ========
Diluted 36,247 30,702
======== ========
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Revenue Reconciliation
(In thousands)

Three Months Ended
March 31,
------------------
2008 2007
-------- --------

Oil and gas revenues, including the effects of
settled derivatives $226,037 $144,675
Hedging ineffectiveness - 74
-------- --------
Revenues from oil and gas production per income
statements $226,037 $144,749
======== ========
*T

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