Attached files
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| 8-K - ROSE 8K IR NOVEMBER PRESENTATION - NBL Texas, LLC | rose8k_irnovpresentation.htm |
Exhibit 99.1
Rosetta Resources Inc.
Investor Presentation
November 2013
Forward-Looking Statements and Terminology Used
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Leverage
High-Grade Asset Base
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• Grow new core area in Permian Basin; vertical and horizontal applications
• Maintain position as a leading operator in the high-return Eagle Ford play
• Develop combined inventory of approximately 640 MMBoe in liquids-rich Eagle
Ford and oil-weighted Permian Basin |
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Successfully Execute
Business Plan
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• Grow total production and liquids volumes while applying cross-basin knowledge
• Maintain competitive overall cost structure and margins
• Capture firm transportation and processing capacity
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Test Future Growth
Opportunities |
• Evaluate previously untested Eagle Ford acreage
• Continue testing optimal Eagle Ford and Wolfbone well spacing
• Pursue new growth targets through bolt-on acquisitions in core areas
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Maintain
Financial Strength &
Flexibility |
• Actively manage and monitor use of debt
• Maintain adequate liquidity throughout cycles
• Manage exposure to commodity price risk through prudent hedging program
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Company Strategy - Key Elements
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Rosetta Resources Asset Overview
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Market Summary
(November 13 Close) |
Ticker:
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ROSE
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Market capitalization:
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$3.4 billion
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Share price:
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$55.00
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Enterprise value:
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$4.4 billion
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1. Assumes acquisition completed as of 1/1/13.
2. Production contribution from Permian assets effective on the May 14, 2013 close date.
Strong Growth Track Record
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2013 Capital Program ($870-$900 Million1)
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• Continued focus on oil and liquids-rich development
1. 2013 Guidance; Includes capitalized interest and other corporate costs; Excludes acquisition capital.
2. Assumes mid-point of 2013 production guidance over 2012 average daily production.
Other
11%
Permian
20%
Eagle Ford
69%
Other
11%
Facilities
7%
Drill & Complete
82%
• Rig Programs
• Eagle Ford: Five to six rigs
• Permian - Delaware Basin: Three rigs growing to six rigs (four rigs in Jun.; five rigs in Sep.)
• Fund base capital program from internally-generated cash flow supplemented by
borrowings under credit facility
borrowings under credit facility
Generate ~40% production growth over 20122
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EAGLE FORD - ESTABLISHED CORE AREA
Gates Ranch
26,230 net acres in Webb County
26,230 net acres in Webb County
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Sep 30, 2013 Summary
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Completions to date:
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124 gross completions
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Locations remaining:
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308 net well locations1
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Average Well Characteristics
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Well Costs:
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$6.5 - $7.0 MM
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Spacing:
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55 acres (475 feet apart)
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Composite EUR:
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1.67 MMBoe
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Condensate Yield:
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65 Bbls/MMcf
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NGL Yield:
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110 Bbls/MMcf
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Shrinkage:
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23%
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3Q 2013: 5 completions
1. Under current 55-acre spacing assumptions
55 wells
Our largest continuous group
of producing wells spaced on
55 acres
of producing wells spaced on
55 acres
Well Performance on 55 acres
Compared to similar offsetting wells spaced at 100 acres
Compared to similar offsetting wells spaced at 100 acres
The 55 wells are performing in line
with comparable offsetting wells
drilled and completed early in the
development of the area and
spaced on 100 acres …
with comparable offsetting wells
drilled and completed early in the
development of the area and
spaced on 100 acres …
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Gates Ranch
“Upper Eagle Ford” Pilots
“Upper Eagle Ford” Pilots
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47
5’
5’
Drilling Time Performance
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Briscoe Ranch
3,545 net acres in southern Dimmit County
3,545 net acres in southern Dimmit County
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Sep 30, 2013 Summary
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Completions to date:
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13 gross completions
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Locations remaining:
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55 net well locations
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Average Well Characteristics
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Well Costs:
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$6.5 - $7.0 MM
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Spacing:
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50 acres (425 feet apart)
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Condensate Yield:
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100 Bbls/MMcf
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NGL Yield:
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130 Bbls/MMcf
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Shrinkage:
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23%
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Central Dimmit County Area
8,496 net acres located in Dimmit County
8,496 net acres located in Dimmit County
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Sep 30, 2013 Summary
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Completions to date:
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12 gross completions
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Locations remaining:
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104 net well locations
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Average Well Costs
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Light Ranch & Vivion:
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$5.5 - $6.0 MM
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Lasseter & Eppright:
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$6.5 - $7.0 MM
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Lopez Farm-In
505 net acres in Live Oak County
505 net acres in Live Oak County
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Sep 30, 2013 Summary
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Farm-In from Killam Oil
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BPO:
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100% WI, 75% NRI
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APO:
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65% WI, 48.75 NRI
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Completions to date:
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1 completion - discovery well
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Locations remaining:
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7 net well locations
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Average Well Characteristics
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Well Costs:
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$7.5 - $8.0 MM
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Spacing:
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~50 acres (400 feet apart)
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7-day gross stabilized IP
1,966 Boe/d
(46% oil / 24% NGLs)
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Tom Hanks
3,461 net acres in LaSalle County
3,461 net acres in LaSalle County
Pearsall Well
Eagle Ford Well
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Sep 30, 2013 Summary
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Completions to date:
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2 gross completions
• Eagle Ford (EF) development
• Pearsall exploration
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Average EF Well Characteristics
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Well Costs:
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$5.5 - $7.0 MM
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Spacing:
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~50 acres (400 feet apart)
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Completions to date:
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1 completion - discovery well
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Locations remaining:
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56 net well locations
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7-day gross stabilized IP
657 Boe/d (91% oil)
657 Boe/d (91% oil)
• 1 completion - exploration
• Un-stabilized test rate at 5 MMcf/d
• Gas content includes 1% H2S
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PERMIAN BASIN - NEW CORE AREA
1. 68,000 gross acres
2. ~76% for operated acreage
3. Under 20-acre spacing assumptions and in conjunction with horizontal development
Permian - Reeves County
40,182 net acres1
40,182 net acres1
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13 completions
• 12 vertical
• 1 horizontal
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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1. Central Dimmit includes L&E, Vivion and Light Ranch
2. Karnes Trough area includes Dubose and Klotzman
3. Denotes roughly 6,800 net acres in the liquids window of the play
4. Horizontal project count includes potential in multiple horizons (Wolfcamp A, B-C, and 3rd Bone Springs)
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MARKETING AND FINANCIAL OVERVIEW
Eagle Ford Multiple Takeaway Options
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Oil
• Currently trucked from leases
• Oil gravity range 45 - 49 degrees and receives no gravity deducts
Natural Gas
• Gas is rich and is processed at two plants
• Most leases under long-term gathering agreement
• Residue gas sales tied to Waha and Permian indices
NGLs
• NGLs extracted under firm, multi-year gathering/processing agreements
• Combination of net proceeds and Mont Belvieu pricing
Permian Basin Marketing
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$40.64
$41.96
$80.16
X
$115.71
$83.33
X
$109.63
$95.72
$93.13
$88.58
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1. Fixed price is based on weighted average of all components of the NGL barrel.
Commodity Derivatives Position - October 31, 2013
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$84.40
Liquidity
Adequate liquidity available to fund 2013 $870 - $900 million capital program
Borrowing base reaffirmation for $800 million effective October 9, 2013
Note: Pro Forma $600 million debt issuance completed on November 15, 2013
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Investment Summary
• Drill-bit focused producer with large acreage positions in
liquids-rich Eagle Ford and oil-weighted Permian Basin plays
liquids-rich Eagle Ford and oil-weighted Permian Basin plays
• Attractive new core Delaware Basin position
• Successful operator in the high-return Eagle Ford area
• Large inventory of future growth opportunities
• Financial strength and flexibility; conservative philosophy
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“Rosetta Resources - Building Rock Solid Value”
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APPENDIX
Gates Ranch Differential Well Performance
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Karnes Trough Area
1,902 net acres located in oil window
1,902 net acres located in oil window
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Sep 30, 2013 Summary
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Completions to date:
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25 gross completions
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Locations remaining:
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As of August, all wells on production
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Klotzman (Dewitt County)
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Completions:
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15 gross total completions
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Adele Dubose (Gonzales County)
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Completions:
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10 gross completions
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Attractive Well Economics
Note: Reserves and Economic metrics are “Unrisked”.
Oil price assumptions, $/Bbl - $91.72 in 2013, $89.88 in 2014, $95.00 thereafter. NGL price assumptions, $/Bbl - $42.77 in 2013,
$41.91 in 2014, $44.30 thereafter.
Gas price assumptions, $/MMBtu - $3.71 in 2013, $4.10 in 2014, $4.60 thereafter.
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HIGHLIGHTS
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Reeves
County |
Vertical
Wolfbone |
• 40-acre development; 145 MMBoe net
risked resources • Tighter 20-acre spacing potential; ~688
net op and non-op locations |
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Horizontal
Wolfcamp |
• Operators testing upper and middle
Wolfcamp; ~611 gross operated locations • Completed 4 horizontals in acquired area
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Avalon /
Bone Spring |
• Additional horizontal upside potential
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Other
Formations |
• May ultimately recognize upside in
deeper, gas-prone formations • Likely requires higher gas price
environment |
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Gaines County
Exploration Play
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• Exploration play; no wells drilled to date
• Wolfcamp is a likely target
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Permian - Reeves County Asset Potential
Stacked Zones Provide Collection of Vertical/Horizontal Development Opportunities
Stacked Zones Provide Collection of Vertical/Horizontal Development Opportunities
~145 MMBoe of recoverable reserves on 40-
acre spacing represents less than 5% of
estimated total hydrocarbons in place
acre spacing represents less than 5% of
estimated total hydrocarbons in place
Reeves County
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Permian - Reeves County
Vertical Wolfbone
Vertical Wolfbone
Central
East
Normalized Time (year)
Normalized Time (year)
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Wolfbone Area
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Central
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East
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Well Costs ($MM, Target):
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$3.5
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$3.5
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Spacing:
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20-acre
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20-acre
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30-Day IP Boepd (gross):
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235
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265
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Composite EUR Mboe (gross):
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260
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230
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% Oil:
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70%
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65%
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% NGL:
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16%
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19%
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Gates Ranch Well Performance - North & South Areas
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Briscoe Ranch
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Karnes Trough Area - Klotzman
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Karnes Trough Area - Adele Dubose
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Central Dimmit - Lasseter & Eppright
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Adjusted EBITDA Reconciliation
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EBITDA is calculated as net income, excluding income tax expense, interest expense, net of interest
capitalized, other income (expense), net, and depreciation, depletion and amortization. Adjusted EBITDA
is calculated as EBITDA excluding unrealized gains or losses on derivative instruments and stock-based
compensation expense. For more information relating to these non-GAAP measures, see “Non-GAAP
financial measures” in the Prospectus Supplement
capitalized, other income (expense), net, and depreciation, depletion and amortization. Adjusted EBITDA
is calculated as EBITDA excluding unrealized gains or losses on derivative instruments and stock-based
compensation expense. For more information relating to these non-GAAP measures, see “Non-GAAP
financial measures” in the Prospectus Supplement
Debt and Capital Structure
350
250
883
879
410
1,214
($MM)
($MM)
1,175
2,483
Pro Forma Capitalization
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Pro Forma Capitalization
Sources
Uses