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8-K - ROSETTA RESOURCES INC 8-K 12-1-2009 - NBL Texas, LLC | form8k.htm |
Exhibit
99.1
2009
FBR
Energy Conference
Michael
J. Rosinski, EVP & CFO
December
1, 2009
2
Tangible evidence of
successful transformation by experienced team
Inflection point on
performance
Expect growth in
production and reserves
Early stages of
Eagle Ford discoveries
Potential catalyst
in Alberta Basin Bakken
Ongoing effort to
enter new plays
Product balance
shifting to more oil
Inventory potential
from core assets provides backstop
Shareholder-friendly
stewardship
Rigorous financial
approach balances growth AND returns
Bias for living
within means
Management
alignment
Attractive
valuation
Trades at
significant discount to other resource players
Still undiscovered,
but that is changing!
Why
Rosetta and Why Now?
3
2009
Accomplishments
Not Missing a Beat…
Not Missing a Beat…
Refinanced existing
debt
Increased Eagle Ford
acreage almost 90% to 47,000 net acres
Drilled 3 Eagle Ford
wells
Springer Ranch #1H
produced 39 MMcf during first seven days
Gates 05D#9H
produced 25 MMcf and 2,200 Bbls of condensate during first seven
days
Vela #1 set up for
horizontal drilling
Drilled 2 Bakken
Wells; 2 additional wells permitted
Tribal Gunsight #31
drilled horizontally and being completed
Tribal Riverbend #12
spud
Added 2010-2011
hedges
5 BBtu/d Rocky
Mountain hedges at $5.72
10 BBtu/d collars at
$5.75-$7.55
Completed non-core
asset sales of $20MM
4
Additional
Initiatives
Gas marketing
function insourced
South Texas
compressor sale and leaseback completed
DJ Basin salt water
disposal wells in service
Sacramento Basin
gathering de-bottlenecking completed
5
Gulf
of Mexico &
State Waters
27 Bcfe
27 Bcfe
Sacramento
Basin
111 Bcfe
111 Bcfe
Other
Areas
22 Bcfe
22 Bcfe
Proved
Reserves
398 Bcfe
398 Bcfe
2008
Year End Reserves
LEGEND
|
|
Major Activity
Areas
|
|
|
Other
Producing Areas
|
|
Offices
|
|
Headquarters
|
Rockies
78 Bcfe
78 Bcfe
South
Texas
160 Bcfe
160 Bcfe
6
Rockies
164 Bcfe
164 Bcfe
South
Texas
74 Bcfe
74 Bcfe
Gulf
of Mexico
10 Bcfe
10 Bcfe
State
Waters
3 Bcfe
3 Bcfe
Sacramento
Basin
41 Bcfe
41 Bcfe
Other
Areas
7 Bcfe
7 Bcfe
2008
Year End Capital Inventory
LEGEND
|
|
Major Activity
Areas
|
|
|
Other
Producing Areas
|
|
Offices
|
|
Headquarters
|
71
|
BCFE
PUD
|
228
|
BCFE
Probable & Possible
|
299
|
Total
BCFE
|
7
Blocking
& Tackling
Sacramento Basin
“By-Passed” Resources
Economies
of Scale
Denver Julesburg
Basin Niobrara Chalk
Opportunistic
Growth
South Texas Eagle
Ford Shale
Creative
Growth
Alberta Basin Bakken
Shale
Additional Resource
Potential
Beyond Reserves & Inventory
Beyond Reserves & Inventory
8
Blocking &
Tackling
Sacramento Basin: “The ideal basin for resource assessments…”
Sacramento Basin: “The ideal basin for resource assessments…”
Rio
Vista Gas Unit
Key
Statistics
Discovery Date: 1936
Aerial
Extent:
30,500 acres
Gross
Cumulative Production:
3.6 TCFE
Number
of Producing Horizons: 16
Number
of Wells: 303
Producing:
143
Idle
160
Depth
Range
2,500 -
13,000’
9
MIDDLE
CAPAY
Tight
Sand Example
Blocking &
Tackling
The Game: “By-Passed” Resources Through Identification and Technology Applications
The Game: “By-Passed” Resources Through Identification and Technology Applications
10
ACTUAL
PROGRAM RESULTS
|
|
Group
1
(6
well program)
|
|
Well
|
IP
(Mcfe/d)
|
RVGU
242
|
475
|
RVGU
222
|
200
|
RVGU
296
|
130
|
RVGU
299
|
1300
|
Jordan
8
|
1250
|
RVGU
269U
|
550
|
Group
1 Average
|
651
|
Group
2
(14
well program)
|
|
Well
|
IP
(Mcfe/d)
|
RVGU
294
|
660
|
RVGU
208
|
1282
|
RVGU
167
|
450
|
RVGU
295
|
892
|
Welch
17
|
1046
|
Welch
14
|
1041
|
RVGU
301
|
536
|
Detering
2
|
1265
|
Detering
7
|
1299
|
RVGU
247
|
1200
|
RVGU
200
|
50
|
RVGU
299
|
300
|
Welch
18
|
1100
|
Emigh
17
|
184
|
Group
2 Average
|
808
|
Blocking &
Tackling
The Results: “New production yielding unique reserves…”
The Results: “New production yielding unique reserves…”
11
30
miles
Denver
Denver
Julesburg Basin Niobrara Play
Rosetta
Resources’ Position:
Net
Undeveloped Acreage: 90,000
acres
Net
Projects: 1750
wells*
Net
Resource Potential: 350
Bcfe
*
Not including the 500 locations already in inventory
Economies of
Scale
DJ Basin: Niobrara Chalk Resource Play
DJ Basin: Niobrara Chalk Resource Play
12
Economies of
Scale
DJ Basin: Niobrara Chalk Resource Play
DJ Basin: Niobrara Chalk Resource Play
NIOBRARA
INFILL PILOT PROGRAM
160
acre Block
Typical
well results
$180,000
CWC
300 MMCF
EUR
100%
AVG. WI; 80% AVG.
NRI
200
MCFPD initial rate
>20%
AFIT IRR @ $5.00 NYMEX
Optimizing
Future Development
Resource
potential (advanced open hole logging)
Drainage
patterns (effective tighter spacing)
Stimulation
orientation (micro-seismic)
Pressure
drawdown (pressure observation wells)
Optimum
stimulation (differing technical designs)
13
Houston
Gulf
of Mexico
Mexico
Rosetta
Oil Gas Oil
Opportunistic
Growth
South Texas Eagle Ford Shale Resource Play
South Texas Eagle Ford Shale Resource Play
Cretaceous
Time (80ma)
Gates
Ranch Area
16,000
net acres
Springer
Ranch Area
15,000
net acres
Net
Acreage
Gates
Ranch Area: 16,000
net
Springer Ranch
Area: 15,000
net
Undisclosed: 16,000
net
Total 47,000
net
14
Opportunistic
Growth
South Texas Eagle Ford Shale Resource Play
South Texas Eagle Ford Shale Resource Play
Eagle
Ford Shale Play
Rosetta
Resources’ Position:
Net
Undeveloped Acreage: 47,000
acres
Net
Projects: 290
wells
Net
Resource Potential: 870
Bcfe
Note: Assumes
160 acre development and 4 Bcfe gross EUR per well.
Springer
Ranch #1H
Vela
#1
Gates
Ranch #9-5H
Industry
Activity
Rosetta
Operated
15
Devonian
Time (350ma)
Creative
Growth
Alberta Basin Bakken Shale Resource Play
Alberta Basin Bakken Shale Resource Play
Williston
Basin Analogs
ALBERTA
BASIN
BASIN
WILLISTON
BASIN
BASIN
Elm
Coulee
Nesson
Anticline
16
Creative
Growth
Alberta Basin Bakken Shale Resource Play
Alberta Basin Bakken Shale Resource Play
Alberta
Basin Bakken Play
Rosetta
Resources’ Position:
Net
Undeveloped Acreage: 239,000
acres
Net
Projects: 747
wells*
Net
Resource Potential: 60 -
300 MMBOE
*
320 acre development
Cut
Bank
Rosetta
Well Locations (staked and permitted)
1st Tribal
Gunsight
#31-16H
Tribal
Riverbend
#12-13
17
Additional Resource
Potential*
|
Areal
Extent
(Net
Acres)
|
|
Projects
(Project
Count)
|
|
Net
Resource
(Bcfe)
|
Sacramento
Basin “By-Passed”
Resources |
30,000
|
|
375
|
|
100
|
DJ Basin
Niobrara Chalk
|
90,000
|
|
1,750
|
|
350
|
South Texas
Eagle Ford Shale
|
47,000
|
|
290
|
|
870
|
Alberta Basin
Bakken Shale
|
239,000
|
|
747
|
|
1080
|
TOTAL
|
406,000
|
|
3,162
|
|
2,400
|
*
Summary of projects in addition to our PUD, Probable & Possible inventories;
leasehold is either assigned and/or committed.
18
Potential Reserve
Summary (Bcfe)
|
Reported
Proved Reserves (12/31/08)
|
Probable
Possible Inventory |
Total
P1-P2-P3
Reserves |
|
Additional
Resources Potential |
California
|
111
|
19
|
130
|
|
100
|
Rockies
|
78
|
159
|
237
|
|
350
|
Alberta
Basin
|
-
|
-
|
-
|
|
1080
|
South
Texas
|
160
|
32
|
192
|
|
-
|
Eagle
Ford
|
-
|
-
|
-
|
|
870
|
Onshore
Other
|
22
|
7
|
29
|
|
-
|
State/Federal
Waters
|
27
|
11
|
38
|
|
-
|
TOTAL
|
398
|
228
|
626
|
|
2,400
|
19
Amended Revolving
Credit Facility
Maximum credit
amount increased to $600MM
Borrowing base reset
to $350MM
Maturity date is
July 1, 2012
Amended Second Lien
Term Loan
Borrowing increased
to $100MM
Maturity date is
October 2, 2012
Liquidity from
unused Revolver capacity and cash at $225MM at 9/30/09
Financial
Status
20
2009
Protected 2009
natural gas production with 52 BBtu/d swapped at an average
price of $7.65 and 5 BBtu/d of collars at $8.00 by $10.05
price of $7.65 and 5 BBtu/d of collars at $8.00 by $10.05
2010-2011
Protected 2010
natural gas production of 10 BBtu/d swapped at $8.31
Swapped 5 BBtu/d in
DJ Basin from July 2010 to December 2011 at $5.72
Added 10 BBtu/d of
collars from July 2010 to December 2011 at $5.75 by $7.55
Hedge
Status
21
Maintain balance
between cash flow and capital activity
Re-engineer existing
opportunity set
Sacramento Basin
workovers
Lobo
program
Possible DJ Basin
program
Evaluate new play
opportunities
Eagle
Ford
Bakken
Pursue
bolt-on/strategic acquisitions
Selective sale of
non-core assets
Focus on cost
reductions in all business areas
2009-2010 Business
Plan
22
Forward-Looking
Statements
All
statements, other than statements of historical fact, included in this
presentation are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements
are based upon current expectations and are subject to a number of risks, uncertainties and assumptions,
which are more fully described in Rosetta Resources Inc.'s Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q filed with the Securities and Exchange Commission. These risks, uncertainties
and assumptions could cause actual results to differ materially from those described in the forward-
looking statements. Rosetta assumes no obligation and expressly disclaims any duty to update the
information contained herein except as required by law.
statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements
are based upon current expectations and are subject to a number of risks, uncertainties and assumptions,
which are more fully described in Rosetta Resources Inc.'s Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q filed with the Securities and Exchange Commission. These risks, uncertainties
and assumptions could cause actual results to differ materially from those described in the forward-
looking statements. Rosetta assumes no obligation and expressly disclaims any duty to update the
information contained herein except as required by law.
Updated
December 1, 2009