ATPG's Growth Is Slow Until New Wells Come Online

ATP Oil & Gas Corp. (NASDAQ: ATPG) reported a lower than expected 2Q due to lower production and higher interest expense than anticipated, according to Wunderlich.

More wells will bring production and higher cash flow, but as of right now only one more well will be added to the operation later this quarter, and earnings will depend on how many wells ATP can bring into its network within the next year.

ATP posted $205M in cash on hand at the end of 2Q and is expected to generate around $60M/quarter, leaving the company with just enough cash to get by until production increases next year.

Wunderlich maintains its $10 price target for ATP Oil & Gas Corp, which closed yesterday at $11.08.