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8-K - ROSE 8K AUGUST IR PRESENTATION - NBL Texas, LLCrose8-kaugustirppt.htm
Exhibit 99.1

Rosetta Resources Inc.
Investor Presentation
August 2013
 
 

 
Forward-Looking Statements and Terminology Used
2
 
 

 
Leverage
High-Grade
Asset Base
 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
 
 
 
 
Successfully
Execute
Business Plan
 Grow total production and liquids volumes while applying cross-basin knowledge
 Lower overall cost structure and improve margins
 Capture firm transportation and processing capacity
 
 
 
 
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
 
 
 
 
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
 
 
Company Strategy - Key Elements
3
 
 

 
Rosetta Resources Asset Overview
4
 
 

 
Divested ~11 MMBoe
Acquired ~145 MMBoe
2
1. Assumes acquisition completed as of 1/1/13.
2. Assumes production contribution from Permian assets effective on the May 14, 2013 close date.
1
2
Strong Growth Track Record
Risked Resource Potential
(MMBoe)
Production
(MBoe/d)
5
 
 

 
6
 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
 
 

 
7
EAGLE FORD - ESTABLISHED CORE AREA
 
 

 
Gates Ranch
8
Summary
6/30/2013
18 wells drilled yet to be completed
2Q 2013: 11 completions
1. Under current 55-acre spacing assumptions
 
 

 
55 wells
Our largest continuous group
of producing wells spaced on
55 acres
Well Performance on 55 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 …
9
 
 

 
Summary
6/30/2013
Briscoe Ranch
 3,545 net acres in southern
 Dimmit County
 64 net well locations remaining
Future
19 wells drilled yet to be completed
10
 
 

 
Summary
6/30/2013
Central Dimmit County Area
 8,496 net acres located in Dimmit County
 104 net well locations remaining
2Q 2013: Total 3 completions
 3 completions
 
2Q 2013: 1 completion
Lasseter & Eppright
Light Ranch
 6 total completions
 
1 well drilled yet to be completed
Vivion
 3 completions
 
2Q 2013: 2 completions
11
 
 

 
Summary
6/30/2013
Karnes Trough Area
Klotzman
(Dewitt County)
Adele
Dubose
(Gonzales County)
12
 
 

 
Lopez Farm-In
 505 net acres in Live Oak County
 Farm-In from Killam Oil
  BPO: 100% WI, 75% NRI
  APO: 65% WI, 48.75% NRI
 7-day gross stabilized IP 1,966 Boe/d
 (46% oil / 24% NGLs)
 7 net well locations remaining
Summary
6/30/2013
13
2Q 2013: 1 completion
 
 

 
Tom Hanks
 3,461 net acres in LaSalle County
 2 gross total completions
 Well Costs $5.5 - $7.0 MM
 ~ 50-acre spacing (~400 feet apart)
Summary
6/30/2013
14
1 EF well drilled yet to be completed
2Q 2013: 1 EF completion
Eagle
Ford
 1 completion - discovery well
 7-day stabilized IP 657 Boe/d (91% oil)
 56 net well locations remaining
  1 well drilled awaiting completion
Pearsall
Pearsall
Well
Eagle Ford
Well
 
 

 
15
PERMIAN BASIN - NEW CORE AREA
 
 

 
1. 68,000 gross acres
2. ~76% for operated acreage
3. Under 20-acre spacing assumptions
Permian - Reeves County
16
Summary
6/30/2013
 
 

 
Reeves County - Pecos Area Horizontal Wells
17
Rosetta Operated
Rosetta Non-Operated
Other Operators
Permitted Horizontals
0
10,000
20,000
30,000
Feet
 Significant horizontal industry activity
 Multiple target reservoirs
 Eight Rosetta-operated horizontal
 wells--drilled by Comstock & Eagle
 
 

 
Total Company Inventory
+/- 2,400 net wells -- remaining as of 8/1/2013
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. Assumes 20-acre spacing, vertical wells in Central and East areas.
18
 
 

 
19
MARKETING AND FINANCIAL OVERVIEW
 
 

 
Gas Transportation Capacity
Firm gross wellhead gas takeaway
 245 MMcf/d today
Four processing options - Gathering (Plant)
 Regency (Enterprise Plants)
 Energy Transfer “ETC” Dos Hermanas (King Ranch)
 Eagle Ford Gathering (Copano Houston Central)
 ETC Rich Eagle Ford Mainline (LaGrange/Jackson)
Oil Transportation Capacity
Gates Ranch, Briscoe Ranch & Central Dimmit Co.
 Plains Crude Gathering - Firm gathering capacity of 25,000 Bbls/d to
 Gardendale hub with up to 60,000 Bbls storage; operating since April 2012
Karnes Trough
 Rosetta-owned oil truck-loading facility operating since late July 2012
 Trucking readily available
Eagle Ford Multiple Takeaway Options
Gates Ranch NGL
Breakdown August 2013
20
 
 

 
Oil
  Currently trucked from leases
  WTI Midland to WTI Cushing basis back to normal (currently -$0.35 per Bbl)
  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
21
 
 

 
$40.64
$41.96
$80.16
X
$115.71
$83.33
X
$109.63
$95.72
$93.06
$87.28
1
1. Fixed price is based on weighted average of all components of the NGL barrel.
Commodity Derivatives Position - July 31, 2013
22
 
 

 
Liquidity
Adequate liquidity available to fund 2013 $840 - $900 million capital program
Borrowing base raised from $625 million to $800 million on April 12, 2013
Note: Permian Basin acquisition closed on May 14, 2013
23
 
 

 
2013 Annual Guidance
24
 
 

 
Investment Summary
 Drill-bit focused producer with large acreage positions in
 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
25
“Rosetta Resources - Building Rock Solid Value”
 
 

 
26
APPENDIX
 
 

 
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.
27
 
 

 
 
 
HIGHLIGHTS
Reeves
County
Vertical
Wolfbone
 40-acre development; 145 MMBoe net
 risked resources; ~1,300 gross locations
 Down-spacing potential
Horizontal
Wolfcamp
 Early stage - operators testing upper and
 middle Wolfcamp
 Completed 4 horizontals in acquired area
Avalon /
Bone
Spring
 Additional horizontal upside potential
Other
Formations
 May ultimately recognize upside in
 deeper, gas-prone formations
 Likely requires higher gas price
 environment
Gaines County
Exploration Play
 Exploration play; no wells drilled to date
 Wolfcamp is a likely target
Base Case
Upside
Reeves County
28
Permian - Reeves County Asset Potential
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
 
 

 
Permian - Reeves County
Vertical Wolfbone
29
Central
East
Normalized Time (year)
Normalized Time (year)
 
 

 
Gates Ranch Well Performance - North & South Areas
30
 
 

 
Briscoe Ranch
31
 
 

 
Karnes Trough Area - Klotzman
32
 
 

 
Karnes Trough Area - Adele Dubose
33
 
 

 
Central Dimmit - Lasseter & Eppright
34