Net revenue for the 18-month period is estimated to reach $613 million, ATP said today in a regulatory filing. The company sought Chapter 11 protection in Houston on Aug. 17, blaming the 2010 Deepwater Horizon disaster that led to a Gulf of Mexico drilling moratorium. ATP said it has a commitment for $617.6 million in financing from existing lenders to support operations while it restructures.
ATP bonds rose the most in more than two weeks and were the most actively traded high-yield corporate securities by dealers today, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
ATP’s $1.5 billion of 11.875 percent notes due May 2015 rose 2.3 cents to 31.7 cents on the dollar to yield 70 percent as of 3:14 p.m. in New York, according to Trace. That’s the biggest increase since Aug. 3.
ATP shares were at 30 cents at 4 p.m. in New York in Nasdaq Stock Market trading, after reaching a 52-week low today of 20 cents. The year’s high in August 2011 was $14.48. The company listed $3.6 billion in assets and $3.5 billion in debt, in papers filed in U.S. Bankruptcy Court.
ATP received $372 million of its bankruptcy loan this month, and expects to pay $167.5 million to lenders over 18 months, according to today’s filing. Net operating cash flow by February 2014 is projected at $210 million and capital spending at a total of $224 million.
ATP said in the filing that it doesn’t usually publish projections and they shouldn’t be relied on, because actual results depended on factors outside its control, including possible operational and regulatory setbacks. The company plans to start publishing monthly operating reports in bankruptcy court in Houston in September, according to the filing.
During the past three years, ATP lost the equivalent of $1.1 million a day as equipment failures and unforeseen geological hurdles in the Gulf of Mexico frustrated efforts to lift crude output. The specter of lower production spooked investors because it meant a reduction in cash flow needed to make debt payments.
ATP, based in Houston, said in a statement Aug. 17 that the “primary reason” for the bankruptcy began with the explosion at BP Plc (BP/)’s Deepwater Horizon and the government moratorium that halted drilling while safety rules were reviewed.
The bankruptcy case is In re ATP Oil & Gas Corp., 12-36187, U.S. Bankruptcy Court, Southern District of Texas (Houston).
To contact the reporter on this story: Linda Sandler in New York at firstname.lastname@example.org.