Attached files
| file | filename |
|---|---|
| 8-K - 111609 ROSE UPDATED PRESENTATION - NBL Texas, LLC | roseupdatedpres.htm |
2009
Exhibit 99.1
2
Experienced team driving successful transformation
Significant upside from unique formula
Core assets re-engineered
for predictable growth from low risk inventory
Conservative financial approach balances
growth and returns
Catalysts provide
exciting opportunity to participate in new play entry
Very attractive risk-reward profile for a company our size
Trades at discount on valuation basis to companies with resource-based
business model
business model
It’s a Great Time to Look at Rosetta
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 Riverbed #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
Proved Reserves
398 Bcfe
398 Bcfe
2008 Year End Reserves
6
2008 Year End Capital Inventory
|
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
9
Blocking & Tackling
The Playground: 16 Proven Hydrocarbon Reservoirs
The Playground: 16 Proven Hydrocarbon Reservoirs
Depth Range
2,500 - 13,000’
10
Blocking & Tackling
The Game: “By-Passed” Resources Through Identification and Technology Applications
The Game: “By-Passed” Resources Through Identification and Technology Applications
11
|
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…”
12
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
13
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)
14
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
15
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.
16
Creative Growth
Alberta Basin Bakken Shale Resource Play
Alberta Basin Bakken Shale Resource Play
17
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
18
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.
19
Potential Reserve Summary (Bcfe)
|
|
Reported
Proved Reserves (12/31/09) |
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 |
20
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
21
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
22
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
23
Experienced team driving successful transformation
Significant upside from unique formula
Core assets re-engineered
for predictable growth from low risk inventory
Conservative financial approach balances
growth and returns
Catalysts provide
exciting opportunity to participate in new play entry
Very attractive risk-reward profile for company our size
Trades at discount on valuation basis to companies with resource-based
business model
business model
It’s a Great Time to Look at Rosetta
24
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.