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| 8-K - ROSE PRESENTS AT JEFFERIES CONFERENCE - NBL Texas, LLC | rosejefferies.htm |
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Rosetta Resources Inc.
Jefferies Global Energy Conference
John Clayton
Senior Vice President,
Asset Development
www.rosettaresources.com / NASDAQ: ROSE
High Asset Quality - Executing Business Plan - Future Growth Catalysts - Financial Strength
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– Doubled proved reserves to 970 Bcfe at mid-year 2011.
– Increased gross estimated ultimate recovery to 10 Bcfe per Gates Ranch Eagle
Ford well.
Ford well.
– Set record levels of liquids production.
– Southern Alberta Basin horizontal drilling program.
– Increased daily firm transportation and processing capacity from Eagle Ford by
20 percent.
20 percent.
– Increased Gates Ranch planned well density to 65 acres per well.
– Announced three new Eagle Ford field discoveries.
– Increased project inventory to 2.8 Tcfe.
Year-to-Date Highlights
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– Asset Base High Graded
– Executing Business Plan
– Testing Growth Catalysts
– Financial Strength
Agenda
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Asset Base High Graded
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* End of 3Q 2011
Asset Base High Graded
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Executing Business Plan
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Proved Reserves - Doubled Since YE 2010
■ Eagle Ford
■ Other Core
■ Non-Core
351 Bcfe
479 Bcfe
970 Bcfe
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* Completed wells
Gates Ranch
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7.3 BCFE Composite Type Curve (PUD Bookings)
10 BCFE Composite Type Curve
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Increased Firm Take-Away Capacity
¹ Net equivalent gas production (MMcfe/d) equals 1.35 times gross wet wellhead gas (MMcf/d).
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Quarterly Production Performance
Production
(MMcfe/d)
220-240
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Testing Growth Catalysts
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Other Eagle Ford Areas
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• Increased Well Density
• 280 locations remaining to be drilled
Gates Ranch
Field wide development plans on 65 acre well spacing
Field wide development plans on 65 acre well spacing
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New Well Test
• Southern Dimmit County Area
• 3,545 net acres
• 47 well locations remaining
• Initial Rate
• 850 bpd Oil
• 490 bpd NGL’s
• 3,900 mcfpd
• 1,990 BOEPD
New Eagle Ford Discovery
Briscoe Ranch
Briscoe Ranch
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New Well Test
• Central Dimmit County Area
• 8,143 net acres
• 125 well locations remaining
• 7 day average rate
• 506 bpd Oil
• 102 bpd NGL’s
• 436 mcfpd
• 680 BOEPD
New Eagle Ford Discovery
Central Dimmit County
Central Dimmit County
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New Well Test
• Southern Gonzales County Area
• 1,900 net acres
• 21 well locations remaining
• Initial Rate
• 2,450 bpd Oil
• 250 bpd NGL’s
• 2,000 mcfpd
• 3,033 BOEPD
New Eagle Ford Discovery
Karnes Trough Area
Karnes Trough Area
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*Includes only “well tested” inventory and excludes inventory on our 10,000 net acres that has offset data and will be tested in the upcoming quarters.
Eagle Ford
Well Tested Inventory
Well Tested Inventory
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Delineation well program
Horizontal well program
Southern Alberta Basin
Continuing to Move the Play Forward
Continuing to Move the Play Forward
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Financial Strength
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Lower Cost Structure
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50
20
10,300
5,400
3,750
* NGL hedges exclude the Ethane component
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Debt and Liquidity
350
250
402
237
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|
(MM)
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3Q 2011
|
4Q 2010
|
|
Long-Term Debt
|
$250
|
$350
|
|
Total Stockholder’s Equity
|
608
|
529
|
|
TOTAL
|
$858
|
$879
|
|
|
|
|
|
Capitalization
|
|
|
|
- Debt
|
29%
|
40%
|
|
- Capital
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71%
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60%
|
|
TOTAL
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100%
|
100%
|
Capital Structure
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– Asset Base High Graded
– Divestiture program complete
– South Texas focus
– Alberta Basin option
– Strong Eagle Ford project inventory
– Executing Business Plan
– Proved reserves doubled since 12/31/10
– Gates Ranch recoveries increased
– Increased firm take-away capacity
– Strong exit rates and 2012 growth projected
– Testing Growth Catalysts
– Gates Ranch well density
– Other Eagle Ford areas
– Expanded Alberta Basin horizontal program
– Financial Strength
– Lower cost structure
– $402MM in liquidity
Summary
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This presentation includes forward-looking statements, which give the Company's current expectations or forecasts
of future events based on currently available information. Forward-looking statements are statements that are not
historical facts, such as expectations regarding drilling plans, including the acceleration thereof, production rates and
guidance, resource potential, incremental transportation capacity, exit rate guidance, net present value, development
plans, progress on infrastructure projects, exposures to weak natural gas prices, changes in the Company's liquidity,
changes in acreage positions, expected expenses, expected capital expenditures, and projected debt balances. The
assumptions of management and the future performance of the Company are subject to a wide range of business
risks and uncertainties and there is no assurance that these statements and projections will be met. Factors that
could affect the Company's business include, but are not limited to: the risks associated with drilling of oil and natural
gas wells; the Company's ability to find, acquire, market, develop, and produce new reserves; the risk of drilling dry
holes; oil and natural gas price volatility; derivative transactions (including the costs associated therewith and the
abilities of counterparties to perform thereunder); uncertainties in the estimation of proved, probable, and possible
reserves and in the projection of future rates of production and reserve growth; inaccuracies in the Company's
assumptions regarding items of income and expense and the level of capital expenditures; uncertainties in the timing
of exploitation expenditures; operating hazards attendant to the oil and natural gas business; drilling and completion
losses that are generally not recoverable from third parties or insurance; potential mechanical failure or
underperformance of significant wells; availability and limitations of capacity in midstream marketing facilities,
including processing plant and pipeline construction difficulties and operational upsets; climatic conditions; availability
and cost of material, supplies, equipment and services; the risks associated with operating in a limited number of
geographic areas; actions or inactions of third-party operators of the Company's properties; the Company's ability to
retain skilled personnel; diversion of management's attention from existing operations while pursuing acquisitions or
dispositions; availability of capital; the strength and financial resources of the Company's competitors; regulatory
developments; environmental risks; uncertainties in the capital markets; general economic and business conditions
(including the effects of the worldwide economic recession); industry trends; and other factors detailed in the
Company's most recent Form 10-K, Form 10Q and other filings with the Securities and Exchange Commission. If
one or more of these risks or uncertainties materialize (or the consequences of such a development changes), or
should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or
expected. The Company undertakes no obligation to publicly update or revise any forward-looking statements except
as required by law.
of future events based on currently available information. Forward-looking statements are statements that are not
historical facts, such as expectations regarding drilling plans, including the acceleration thereof, production rates and
guidance, resource potential, incremental transportation capacity, exit rate guidance, net present value, development
plans, progress on infrastructure projects, exposures to weak natural gas prices, changes in the Company's liquidity,
changes in acreage positions, expected expenses, expected capital expenditures, and projected debt balances. The
assumptions of management and the future performance of the Company are subject to a wide range of business
risks and uncertainties and there is no assurance that these statements and projections will be met. Factors that
could affect the Company's business include, but are not limited to: the risks associated with drilling of oil and natural
gas wells; the Company's ability to find, acquire, market, develop, and produce new reserves; the risk of drilling dry
holes; oil and natural gas price volatility; derivative transactions (including the costs associated therewith and the
abilities of counterparties to perform thereunder); uncertainties in the estimation of proved, probable, and possible
reserves and in the projection of future rates of production and reserve growth; inaccuracies in the Company's
assumptions regarding items of income and expense and the level of capital expenditures; uncertainties in the timing
of exploitation expenditures; operating hazards attendant to the oil and natural gas business; drilling and completion
losses that are generally not recoverable from third parties or insurance; potential mechanical failure or
underperformance of significant wells; availability and limitations of capacity in midstream marketing facilities,
including processing plant and pipeline construction difficulties and operational upsets; climatic conditions; availability
and cost of material, supplies, equipment and services; the risks associated with operating in a limited number of
geographic areas; actions or inactions of third-party operators of the Company's properties; the Company's ability to
retain skilled personnel; diversion of management's attention from existing operations while pursuing acquisitions or
dispositions; availability of capital; the strength and financial resources of the Company's competitors; regulatory
developments; environmental risks; uncertainties in the capital markets; general economic and business conditions
(including the effects of the worldwide economic recession); industry trends; and other factors detailed in the
Company's most recent Form 10-K, Form 10Q and other filings with the Securities and Exchange Commission. If
one or more of these risks or uncertainties materialize (or the consequences of such a development changes), or
should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or
expected. The Company undertakes no obligation to publicly update or revise any forward-looking statements except
as required by law.
Forward-Looking Statements and Terminology Used
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For filings reporting year-end 2010 reserves, the SEC permits the optional disclosure of probable and possible
reserves. The Company has elected not to report probable and possible reserves in its filings with the SEC. We use
the term “net risked resources” to describe the Company’s internal estimates of volumes of natural gas and oil that are
not classified as proved reserves but are potentially recoverable through exploratory drilling or additional drilling or
recovery techniques. Estimates of unproved resources are by their nature more speculative than estimates of proved
reserves and accordingly are subject to substantially greater risk of actually being realized by the
Company. Estimates of unproved resources may change significantly as development provides additional data, and
actual quantities that are ultimately recovered may differ substantially from prior estimates. We use the term “BFIT
NPV10” to describe the Company’s estimate of before income tax net present value discounted at 10 percent
resulting from project economic evaluation. The net present value of a project is calculated by summing future cash
flows generated by a project, both inflows and outflows, and discounting those cash flows to arrive at a present value.
Inflows primarily include revenues generated from estimated production and commodity prices at the time of the
analysis. Outflows include drilling and completion capital and operating expenses. Net present value is used to
analyze the profitability of a project. Estimates of net present value may change significantly as additional data
becomes available, and with adjustments in prior estimates of actual quantities of production and recoverable
reserves, commodity prices, capital expenditures, and/or operating expenses.
reserves. The Company has elected not to report probable and possible reserves in its filings with the SEC. We use
the term “net risked resources” to describe the Company’s internal estimates of volumes of natural gas and oil that are
not classified as proved reserves but are potentially recoverable through exploratory drilling or additional drilling or
recovery techniques. Estimates of unproved resources are by their nature more speculative than estimates of proved
reserves and accordingly are subject to substantially greater risk of actually being realized by the
Company. Estimates of unproved resources may change significantly as development provides additional data, and
actual quantities that are ultimately recovered may differ substantially from prior estimates. We use the term “BFIT
NPV10” to describe the Company’s estimate of before income tax net present value discounted at 10 percent
resulting from project economic evaluation. The net present value of a project is calculated by summing future cash
flows generated by a project, both inflows and outflows, and discounting those cash flows to arrive at a present value.
Inflows primarily include revenues generated from estimated production and commodity prices at the time of the
analysis. Outflows include drilling and completion capital and operating expenses. Net present value is used to
analyze the profitability of a project. Estimates of net present value may change significantly as additional data
becomes available, and with adjustments in prior estimates of actual quantities of production and recoverable
reserves, commodity prices, capital expenditures, and/or operating expenses.
Forward-Looking Statements and Terminology Used (cont.)
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