Shares of ATP Oil & Gas (ATPG) are rebounding from a recent three year low of $3.68. The stock slid some 40%, from $5.93, within days of CEO Matt McCarroll’s recent resignation. McCarroll was named CEO on June 1 of this year, and the announcement of his resignation citing the parties’ inability “to reach a mutually agreeable employment agreement” was made only a week later, on June 8. McCarroll was to replace CEO T. Paul Bulhman, who is now stepping back in as acting CEO until a second replacement can be found.
Prior to this leadership debacle, ATP was already a struggling company. Shareholder perception over McCarroll’s temporary tenure at the helm of this once-promising producer and the company’s poor growth prospects are bound to keep share prices suppressed for the near future.
Dependence on GOM Contributing to Struggle
ATP resumed production at its Titan platform in the Gulf of Mexico earlier this week, which was halted due to Shell’s (RDS.A) temporary closure of the rig’s pipeline, enacted so that Shell could connect a new platform to the same infrastructure. ATP is now expecting completion on its nearby Mississippi Canyon 941 A-2 well by the end of June, and is indicating that the well will be placed into production immediately. ATP counts heavily on its Gulf of Mexico production for its revenues, so much so that the company is bringing a lawsuit against the U.S. for “improperly and illegally” suspending offshore drilling in the wake of BP’s (BP) Macando blowout.To continue reading, click here.