Attached files
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| 8-K - ROSE 3Q13 EARNINGS RELEASE PRESENTATION - NBL Texas, LLC | rose8_kerpresentation.htm |
Exhibit 99.1
Rosetta Resources Inc.
Third Quarter 2013 Earnings Review
November 7, 2013
Earnings Call Agenda
Overview Jim Craddock
Financial Update John Hagale
Operational Update John Clayton
Closing Remarks Jim Craddock
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Overview - Jim Craddock
• Successfully executed first operated horizontal well
completion in southern Reeves County, Delaware Basin
completion in southern Reeves County, Delaware Basin
• Added fifth rig to further expand development activities in the
Delaware Basin
Delaware Basin
• Set an all-time record in daily equivalent production and daily
oil production
oil production
• Recorded sequential Eagle Ford daily equivalent production
growth for the 15th consecutive quarter
growth for the 15th consecutive quarter
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Financial Update - John Hagale
• Higher adjusted net income and revenues for quarter
primarily due to increased production and higher realized oil
prices
primarily due to increased production and higher realized oil
prices
• Third quarter revenues reflect 60% from oil sales; 84% from
liquids
liquids
• Active hedging program continued with new swaps in place
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5
2013 Fourth Quarter Guidance
Operational Update - John Clayton
• Spent $262 MM in third quarter 2013 capex; drilled 43 gross operated
wells and completed 33 (20 Eagle Ford)
wells and completed 33 (20 Eagle Ford)
• Third quarter 2013 total production of 50.9 MBoe/d (30% oil / 35%
NGLs)
NGLs)
• Eagle Ford production on track; Permian production behind schedule
• Operated five rigs; mostly at Gates Ranch, Briscoe Ranch, Tom Hanks,
and Central Dimmit area
and Central Dimmit area
• Operated four - five rigs in Permian, Reeves County
• At quarter-end, 53 Eagle Ford and 3 Permian wells drilled awaiting
completion
completion
2014 Rig Count
• Eagle Ford - Operate six rigs (two at Gates Ranch)
• Permian - Operate six rigs in Reeves Co. (four drilling horizontal Wolfcamp
wells)
wells)
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Quarterly Production Performance
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Gates Ranch
“Upper Eagle Ford” Pilots
“Upper Eagle Ford” Pilots
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Summary - As of 9/30/2013
Briscoe Ranch (Column Development Program)
• 3,545 net acres in southern
Dimmit County
Dimmit County
• 13 gross completions to date
• 3Q 2011 - 1 completion
• 3Q 2012 - 3 completions
• 3Q 2013 - 9 completions;
placed on production in 4Q
2013 (October)
placed on production in 4Q
2013 (October)
• 55 net well locations remaining
• 18 wells drilled awaiting
completion
completion
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Horizontal Activity / Proposed Wells
Permian - Horizontal Development
Operated vs. Non-Operated
Operated vs. Non-Operated
Permian - Horizontal Development Plan 9/30/2013
Total Company Inventory
+/- 1,950 net wells -- remaining as of 9/30/2013
+/- 1,950 net wells -- remaining as of 9/30/2013
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Forward-Looking Statements and Terminology Used
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; industry trends; and
other factors detailed in the Company's most recent Form 10-K, Form 10-Q 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. For filings reporting year-end 2012 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” or “inventory” 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.
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; industry trends; and
other factors detailed in the Company's most recent Form 10-K, Form 10-Q 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. For filings reporting year-end 2012 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” or “inventory” 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.
14