Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and natural gas producer ATP Oil & Gas (Nasdaq: ATPG ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at ATP's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Houston (1991)|
|Market Cap||$342.5 million|
|Industry||Oil and gas exploration and production|
|Trailing-12-Month Revenue||$651.3 million|
|Management||Founder/Chairman/CEO T. Paul Bulmahn CFO Albert Reese, Jr.|
|Return on Equity (Average, Past 3 Years)||(30.4%)|
|Cash/Debt||$172.2 million / $2.0 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
Earlier this week , MajorBob04 tapped ATP as a stock priced for imperfection: "Oil prices are climbing and any shred of good news for this company will send this stock even higher."
In fact, ATP sports a particularly paltry price-to-cash flow of 4. That represents a discount to much larger energy plays like BP (NYSE: BP ) (8), ExxonMobil (NYSE: XOM ) (7), and PetroChina (NYSE: PTR ) (5).
In a reply pitch to MajorBob04, Saratogahawk elaborates on the bargain opportunity:
Leaseholds are in areas with large proven reserves. Octabuoy, Titan and Innovator are special drilling rigs with lots of market value. Israel and Cheviot are not figured in at all yet. Worst possible scenario that plays out is that ATPG gets bought out at a significant price based on reserve estimates. That probably makes any current holder some money. Long term by beginning of 2013 production will be up around 50k boe per day. That gives ATPG lots of free cash flow to develop the other leaseholds and open Cheviot. 2 years out this could easily be a $30-50 play.
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