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8-K - 8K ROSE PRESENTS AT HOWARD WEIL - NBL Texas, LLC | hwpres.htm |
EXHIBIT 99.1
Howard Weil Conference
March 25, 2010
2
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.
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.
Cautionary Statement Concerning Resources
The United States Securities and Exchange Commission permits oil and gas companies,
in their filings with the SEC, to disclose only proved, probable and possible reserves that
a company anticipates as of a given date to be economically and legally producible by
application of development projects to known accumulations. We may use certain terms
in this presentation, such as “Risked Project Inventory,” “Potential Projects,” “Risked
Resource Inventory”, “Total Resource Potential”, and “Unrisked Potential” that the SEC's
guidelines strictly prohibit us from including in filings with the SEC. These estimates are
by their nature more speculative than estimates of proved reserves and accordingly are
subject to substantially greater risk of actually being realized.
in their filings with the SEC, to disclose only proved, probable and possible reserves that
a company anticipates as of a given date to be economically and legally producible by
application of development projects to known accumulations. We may use certain terms
in this presentation, such as “Risked Project Inventory,” “Potential Projects,” “Risked
Resource Inventory”, “Total Resource Potential”, and “Unrisked Potential” that the SEC's
guidelines strictly prohibit us from including in filings with the SEC. These estimates are
by their nature more speculative than estimates of proved reserves and accordingly are
subject to substantially greater risk of actually being realized.
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Company Overview
Selective Asset Overview
Stacked Pay in Sacramento Basin
Lobo Trend in South Texas
Niobrara Chalk in DJ Basin
Eagle Ford Shale in South Texas
Bakken Shale in Alberta Basin
2010 Expectations
Rosetta Resources
Agenda for this morning’s discussion…
Agenda for this morning’s discussion…
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Rosetta Resources
Company Overview
Company Overview
Rosetta Resources Inc. (NASDAQ: ROSE) was formed in June 2005 to acquire the domestic oil
and natural gas business formerly owned by Calpine Corporation
and natural gas business formerly owned by Calpine Corporation
Headquartered in Houston, Texas
Technical and field offices in Denver, CO, Laredo, TX and Rio Vista, CA
We have grown by developing and exploring unconventional resources in the Lower 48
Our primary focus areas for exploitation are the Sacramento Basin, the Rocky Mountains and South Texas
One of our key plays for exploitation is the Eagle Ford Shale in South Texas
One of our key plays for exploration is the Bakken Shale in the Alberta Basin of Montana
Today, Rosetta has a high quality, diversified proved asset base
Proved reserves of 351 Bcfe as of 12/31/2009¹
75% proved developed; 85% gas
2009 production of 138 MMcfe/d
2009 F&D cost of $2.22/Mcfe
695,000 net acres (900,000 gross); including approximately 254,000 net acres under exploration option in Alberta
Bakken
Bakken
Over 2,480 net identified drilling opportunities
We have significant potential from low geological risk resource positions
Total resource potential of 899 Bcfe²
Over 60,000 net acres in Eagle Ford Trend of South Texas
Inception to date, we have drilled 9 horizontal wells and currently have 2 rigs running.
Over 250,000 net acres in Alberta Basin
Inception to date we have drilled 3 delineation wells confirming oil present in Lodgepole, Bakken, Three Forks, and Nisku
¹Estimated proved reserves of 412 Bcfe under prior SEC rules
²Total resource potential includes net risked Probable and Possible reserves and 86 Bcfe of PUD’s
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Rosetta has substantial operating control of its reserve base
87% of proved reserves are operated by Rosetta
High working interest in properties
Approximately 40% of acreage is currently held by production
Prudent and conservative financial management
Since 2007, debt to book cap < 40% and debt to LTM EBITDAX < 1.75x
Maintained > $200mm in liquidity since 2008
Hedge to protect downside, capital budget activities and key strategic initiatives
Modest non-core asset sale program to generate cash flow
¹Estimated proved reserves of 412 Bcfe under prior SEC rules
²Total resource potential includes net risked Probable and Possible reserves and 86 Bcfe of PUD’s
Rosetta Resources
Company Overview
Company Overview
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Asset Summary
|
|
Proved Reserves
|
351 Bcfe
|
% Proved Developed
|
75%
|
% Gas
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85%
|
Proved PV -10
|
$465MM
|
Net Annual Production
|
51 Bcfe
|
Net Acreage*
|
667,757
|
Total Resources¹
|
899 Bcfe
|
Net drilling locations
|
2,480
|
¹Total resource potential includes net risked Probable and Possible reserves and 86 Bcfe of PUD’s
* Includes 230,000 net acres under exploration option at 12/31/2009
Pinedale
San Juan Basin
South Texas
Texas State Waters
Gulf of Mexico
Sacramento Basin
DJ Basin
Alberta Basin
Eagle Ford
Legacy asset
New play entry
Non-core asset
Headquarters
Rosetta Resources
Asset Overview (as of 12/31/09)
Asset Overview (as of 12/31/09)
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Average Daily Production
Acreage Position
Risked Resource Inventory¹
125
147
139
400,049
615,396
667,757
299
899
Bcfe
¹Total resource potential includes net risked Probable and Possible reserves and 86 Bcfe of PUD’s
Total Debt
($mm)
Rosetta Resources
Historical Performance
Historical Performance
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Discovered in 1936
One of California’s most prolific natural gas
fields
fields
16 known producing horizons in the basin
3.7 Tcfe produced to date
Rio Vista Field is the largest onshore natural
gas field in California
gas field in California
Rio Vista Field is one of the 15 largest natural
gas fields in the United States
gas fields in the United States
Region has established natural gas gathering
and pipeline infrastructure
and pipeline infrastructure
Depth Range
2,500 - 13,000’
Asset Overview
Sacramento Basin: General Description
Sacramento Basin: General Description
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2009 recomplete
2010 recomplete
Recompletion Program
By Year
By Recovery
Asset Overview
Sacramento Basin: Recompletion Program
Sacramento Basin: Recompletion Program
Rio Vista, California
Recompletion Program - Year End 2009
Date
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Rosetta acreage
We have approximately 90,000 net acres
in the South Texas Lobo Trend
in the South Texas Lobo Trend
255 operated producing wells and 470
square miles of 3-D seismic data
square miles of 3-D seismic data
Currently re-mapping SCR using new 3-D
data received in-house late in 12/09
data received in-house late in 12/09
Majority of acreage is 100% owned and
operated; working interest ranges from
50% to 100%
operated; working interest ranges from
50% to 100%
In 2009 we drilled 21 successful wells in
the Lobo Trend
the Lobo Trend
For the year ended 12/31/09, average
net daily production was 44.1 MMcfe/d
net daily production was 44.1 MMcfe/d
Asset Overview
South Texas: Lobo Trend
South Texas: Lobo Trend
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We have approximately 100,000 net
acres
acres
154 square miles of 3-D seismic data
In the low commodity prices during
2009, we chose not to drill and focused
our efforts on resource assessment
2009, we chose not to drill and focused
our efforts on resource assessment
Commenced a 105-well drilling program
in the first quarter of 2010
in the first quarter of 2010
Asset Overview
DJ Basin: Niobrara Chalk Play
DJ Basin: Niobrara Chalk Play
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12/31/2006
12/31/2007
12/31/2008
1/01/2006
12/31/2009
Dec. 2009: 11.3 MMcf/d
Well count: 173
Asset Overview
DJ Basin: Niobrara Chalk Production Growth
DJ Basin: Niobrara Chalk Production Growth
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Asset Overview
South Texas: Eagle Ford Shale Play
South Texas: Eagle Ford Shale Play
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Initial Rosetta Wells
Industry Activity
We have accumulated approximately 67,000
gross and 61,000 net acres since 2008
gross and 61,000 net acres since 2008
Average working interest of 90-100%
At year-end 2009, we had drilled and
completed 2 horizontal wells
completed 2 horizontal wells
For the quarter ended 12/31/09 our average
net daily production was 4.3 MMcfe/d
net daily production was 4.3 MMcfe/d
Currently, we have drilled 9 horizontal wells
Currently, we have 2 drilling rigs running
Asset Overview
South Texas: Eagle Ford Shale Play
South Texas: Eagle Ford Shale Play
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Initial Rosetta Wells
Industry Activity
Gates Ranch Area
Asset Overview
South Texas: Eagle Ford Shale Play
South Texas: Eagle Ford Shale Play
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Gates Ranch Area¹
Arial extent
9 miles N/S & 9 miles E/W
29,500 net acres
Rosetta Resources operated
100% WI
75% NRI
Unrisked original resource in place
11.3 Tcfe @ 245 Bcfe per section
Unrisked EUR potential
160 acre development
185 net well locations
555 net Bcfe @ 4 Bcfe gross EUR
5% recovery of gas-in-place
80 acre development
369 net well locations
1.1 net Tcfe @ 4 Bcfe gross EUR
10% recovery of gas-in-place
¹ Includes a 3,600 net acre lease 8 miles to the North
Water Well
Proposed Well
Drilled Well
Drilling Well
Asset Overview
South Texas: Eagle Ford Shale Play
South Texas: Eagle Ford Shale Play
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Asset Overview
Alberta Basin: Bakken Play
Alberta Basin: Bakken Play
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Today
Asset Overview
Alberta Basin Bakken: North America Today
Alberta Basin Bakken: North America Today
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Devonian (350 Ma)
Asset Overview
Alberta Basin Bakken: North America 350 million years ago
Alberta Basin Bakken: North America 350 million years ago
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Devonian (350 Ma)
Williston Basin
Antrim Shale
Marcellus Shale
New Albany Shale
Asset Overview
Alberta Basin Bakken: North America 350 million years ago
Alberta Basin Bakken: North America 350 million years ago
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Devonian (350 Ma)
Alberta Basin
Williston Basin
Antrim Shale
Marcellus Shale
New Albany Shale
Asset Overview
Alberta Basin Bakken: North America 350 million years ago
Alberta Basin Bakken: North America 350 million years ago
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Devonian (350
Ma)
Ma)
Alberta Basin
Asset Overview
Alberta Basin Bakken: North America 350 million years ago
Alberta Basin Bakken: North America 350 million years ago
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Today
Asset Overview
Alberta Basin Bakken: North America Today
Alberta Basin Bakken: North America Today
Alberta Basin
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Alberta Basin Bakken specifics
The Bakken is a Devonian Shale oil play located in northwestern
Montana
Montana
Williston Basin analog
Depths ranging from 4,500’ to 7,500’ TVD
Over-pressured reservoirs
Rosetta’s current Bakken position:
254,000 undeveloped net acres
13 - 15 MMBoe per square mile of resource in place
Rosetta’s assessment to date:
Drilled 3 exploratory delineation wells
2 wells on strike 28 miles apart
1 well 8 miles downdip
Confirmed significant oil hydrocarbons in place
Banff (Lodgepole)
Bakken
Three Forks
Nisku
Planned continual resource assessment in 2010
Asset Overview
Alberta Basin Bakken: North America Today
Alberta Basin Bakken: North America Today
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Rosetta Resources
2010: What to expect …
2010: What to expect …
Disciplined Capital Spending
Live within cash and cash flows
$280 million capital program
High return / high value programs receive majority of funding
Production Growth
Annual production rate of 145 to 155 MMcfe/d
Reserve Growth
Double digit reserve replacement rate
Inventory Growth
Continued resource assessment of all core assets
Continue to develop the Eagle Ford
Continue to delineate and assess the Alberta Bakken
Continue to identify and capture new assets with future development