NBL Texas, LLC - FORM 8-K - EX-99.1 - ROSE 8K 1Q2014 EARNINGS CALL PRESENTATION - May 6, 2014

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8-K - ROSE 8K 1Q2014 EARNINGS CALL PRESENTATION - NBL Texas, LLCrose8k_1qerppt.htm
Exhibit 99.1
Rosetta Resources Inc.
First Quarter 2014 Earnings Review
 
 
 
Earnings Call Agenda
· Overview Jim Craddock
· Financial Update John Hagale
· Operational Update John Clayton
· Closing Remarks Jim Craddock
1
 
 
 
Overview - Jim Craddock
• Set record levels of daily equivalent production, daily oil production,
 and daily NGL production
• Increased total daily equivalent production 16 percent versus 2013
• Increased total daily oil production 30 percent versus 2013, and 8
 percent versus fourth quarter
• Successfully advanced Delaware Basin horizontal drilling program in
 Reeves County
 • Completed two Wolfcamp ‘A’ operated wells
 • Participated in five Wolfcamp non-operated wells (4 Wolfcamp ‘A’, 1 Wolfcamp ‘B/C’)
• Completed Delaware Basin bolt-on acquisition adding 5,034 net
 acres in Reeves County core area
• Doubled Permian horizontal project inventory to approximately 900
 net locations
2
 
 
 
Expense Guidance ($/Boe)
 
 
 
 
 
Direct Lease Operating Expense
 
$ 2.85
-
$ 3.10
 
Workover Expenses
 
0.60
-
0.70
 
Insurance
 
0.05
-
0.05
 
Ad Valorem Tax(1)
 
0.65
-
0.75
 
Treating and Transportation
 
4.20
-
4.60
 
Production Taxes(1)
 
1.30
-
1.40
 
DD&A
 
14.60
-
16.05
 
G&A, excluding Stock-Based Compensation
 
3.40
-
3.70
 
Interest Expense
 
2.55
-
2.80
 
2014 Guidance
Production Guidance (MBoe/d)
 
 
 
 
 
Average daily production
 
60
-
65
 
 
 
 
 
 
 
 
 
 
 
 
 
3
(1) Ad Valorem Tax and Production Taxes are components of Taxes, other than income.
 
 
 
Divested ~11 MMBoe
Permian Acquisition ~288 MMBoe
Strong Growth Track Record
Net Risked Resource Potential
(MMBoe)
Net Production
(MBoe/d)
4
 
 
 
Tom Hanks - Eagle Ford
5
Normalized Time (Days)
P50 Type Curve - 346 MBoe
(82% Oil / 8% NGLs)
Normalized to 5,000’ lateral length
 
 
 
UPPER EAGLE FORD PILOT UPDATE
 
 
 
Upper Eagle Ford Pilot Areas
7
 
 
 
8
Rock being effectively stimulated by Lower EF well
(+/- 150 ft)
Upper Eagle Ford Pilot Program
The targeted reservoir is the rock greater than 150’above the base of Eagle Ford
Rock being ineffectively stimulated by Lower EF well
(+/- 130 ft)
Target Reservoir
 
 
 
9
Upper Eagle Ford Pilot Program
The targeted reservoir does not exist in the thinner parts of the play …
 
 
 
Upper Eagle Ford Pilot Program
Future Plans are to pilot test the Upper Eagle Ford at North Gates & Briscoe
Ranch ...
10
 
 
 
11
Upper Eagle Ford Pilot Program
Pilot 1: East Gates Row 2 in Northern Webb County
 
 
 
12
Upper Eagle Ford Pilot Program
Pilot 2: South Gates in Northern Webb County
 
 
 
13
Upper Eagle Ford Pilot Program
Pilot 3: L&E Asset in Central Dimmit County
 
 
 
14
Upper Eagle Ford Pilot Program
Pilot 4: East Gates Row 3 in Northern Webb County
 
 
 
15
Upper Eagle Ford Pilot Program
Various landing depths are being targeted in the Upper Eagle Ford to improve stimulation
effectiveness …
 
 
 
PERMIAN HORIZONTAL UPDATE
 
 
 
Permian - Horizontal Development Plan 3/31/2014
17
 
 
 
Permian Horizontal Inventory - 3/31/2014
18
 P1, P2, P3
Gross Hz
Locations
Net Hz
Locations
Wolfcamp ‘A’
430
359
Wolfcamp ‘B’,‘C’
290
248
3rd Bone Spring
274
226
TOTAL OPERATED
994
833
Wolfcamp ‘A’
103
31
Wolfcamp ‘B’,‘C’
51
15
3rd Bone Spring
28
12
TOTAL NON-OPERATED
182
58
Total Permian Horizontal
1,176
891
 
 
 
 Cautionary Statements
19
This presentation includes forward-looking statements. Forward-looking statements related
to future events, such as expectations regarding our capital program, development plans,
production rates, resource potential, transportation capacity, net present value and projected
liquidity. These statements are not guarantees of future performance and actual outcomes
may differ materially. Factors that could affect the Company's business include, but are not
limited to: oil and gas prices, operating hazards, drilling risks, unsuccessful exploratory
activities; unexpected cost increases; potential liability for remedial actions under existing or
future environmental regulations; potential liability resulting from pending or future litigation;
limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty
in the domestic or international financial markets; as well as changes in tax, environmental
and other laws applicable to our business. Other factors that could cause actual results to
differ materially from those described in the forward-looking statements include other
economic, business, competitive and/or regulatory factors affecting our business generally
as set forth in our filings with the Securities and Exchange Commission. Unless legally
required, the Company undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or otherwise. For filings
reporting year-end 2013 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.
 
 
 

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