Sept 22 - ATP Oil & Gas Corp (ATPG.O) lowered its third-quarter production estimates, announced stock offerings and said it would sell some of its oil and gas pipelines to reduce debt.
Shares of the company fell nearly 9 percent at $20.23 in trading after the bell.
The company said the cut in production estimates was due to the delayed approval of its Gomez development plan by a federal agency and voluntary price-related curtailments of natural gas production in the U.K. North Sea.
The company now sees a drop in production of 1 to 2 billion cubic feet of natural gas equivalent for the quarter.
However, ATP expects to ramp up its UK production levels during the fourth quarter due to higher anticipated prices. It has hedged 8.25 million British thermal units per day at 39.5 pence per therm in the UK North Sea, it said.
Separately, ATP said it agreed to sell Gomez pipelines to the affiliates of ArcLight Capital Partners LLC for $78 million as part of its plan to reduce debt.
The pipelines service ATP's Gomez Hub at Mississippi Canyon Block 711 in the deepwater Gulf of Mexico.
With this transaction, ATP will reduce its $600 million asset sale facility by almost $400 million in ten months, the company said in a statement.
The company also began a public offering of 5.3 million shares and a private offering of $125 million convertible stock.
It intends to use the net proceeds to fund capital expenditures, primarily at its Telemark location in the deepwater Gulf of Mexico, reduce debt and for general corporate purposes.
Shares of the company fell nearly 9 percent at $20.23 in trading after the bell.
The company said the cut in production estimates was due to the delayed approval of its Gomez development plan by a federal agency and voluntary price-related curtailments of natural gas production in the U.K. North Sea.
The company now sees a drop in production of 1 to 2 billion cubic feet of natural gas equivalent for the quarter.
However, ATP expects to ramp up its UK production levels during the fourth quarter due to higher anticipated prices. It has hedged 8.25 million British thermal units per day at 39.5 pence per therm in the UK North Sea, it said.
Separately, ATP said it agreed to sell Gomez pipelines to the affiliates of ArcLight Capital Partners LLC for $78 million as part of its plan to reduce debt.
The pipelines service ATP's Gomez Hub at Mississippi Canyon Block 711 in the deepwater Gulf of Mexico.
With this transaction, ATP will reduce its $600 million asset sale facility by almost $400 million in ten months, the company said in a statement.
The company also began a public offering of 5.3 million shares and a private offering of $125 million convertible stock.
It intends to use the net proceeds to fund capital expenditures, primarily at its Telemark location in the deepwater Gulf of Mexico, reduce debt and for general corporate purposes.
