Attached files
file | filename |
---|---|
8-K - ROSE 8K AUGUST IR PRESENTATION - NBL Texas, LLC | rose8-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
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
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 …
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
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
2Q 2013: 1 completion
Lasseter & Eppright
Light Ranch
6 total completions
1 well drilled yet to be completed
1 well drilled yet to be completed
Vivion
3 completions
2Q 2013: 2 completions
2Q 2013: 2 completions
11
Summary
6/30/2013
Karnes Trough Area
Klotzman
(Dewitt County)
Adele
Dubose
(Gonzales County)
(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)
(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
wells--drilled by Comstock & Eagle
Total Company Inventory
+/- 2,400 net wells -- remaining as of 8/1/2013
+/- 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
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
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
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
Permian - Reeves County
Vertical Wolfbone
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