growing a core area in the delaware basin rosetta ...unless legally required, the company undertakes...

Rosetta Resources Inc. Fort Worth, TX – May 22, 2014

Dan Calnan Vice President, Operations

Growing A Core Area In The

Delaware Basin

Cautionary Statements

2

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.

Rosetta Resources Permian Overview

3

Delaware Basin – Delineation

~47,000 net acres

Reeves County

Note: Acreage numbers are rounded

Summary

• ~120 operated wells averaging

7,000 Boe/d gross current QTD

• 4 horizontal rigs running

• ~1,200 gross horizontal

Wolfbone locations

• ~288 MMBoe of total resource

potential; 82% liquids

Gaines County

Midland Basin – Exploratory

~13,000 net acres

Basin Entry 2013

• March: Announced acquisition and entry into Permian Basin

• May: Closed acquisition after debt and equity offerings; begin staffing

• August: Rosetta assumed operations; opened Midland and Pecos field offices

• 3Q/4Q: Completed first two upper Wolfcamp horizontal wells

Delineation 2014+

• Testing Permian horizontal Wolfcamp benches; assessing Bone Spring potential

• Running four horizontal rigs with plans to drill ~24 wells across acreage

• Optimizing drilling, completion, facilities, and production operations

• 1Q: Completed two upper Wolfcamp horizontal wells

Expansion 2014+

• 1Q: Doubled inventory of horizontal projects to ~1,200 gross locations

• February: Added ~5,000 net acres in Reeves Co. bolt-on acquisition

• Assessing Gaines County acreage in Midland Basin; monitoring offset activity

• Pursuing new growth targets through bolt-on acquisitions in core areas

Development 2015+

• Grow production volumes while applying cross-basin and industry knowledge

• Refine and maintain competitive overall cost structure and margins

• Continue to optimize all phases of operations

Rosetta’s Permian Basin Timeline Growing core area in Delaware Basin focused on horizontal applications

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Basin Entry 2013





Delineation 2014+





Expansion 2014+





Development 2015+





5

Basin Entry 2013





Delineation 2014+





Expansion 2014+





Development 2015+





6

Basin Entry 2013





Delineation 2014+





Expansion 2014+





Development 2015+





7

8

Permian Asset Potential Stacked Zones Provide Collection of Horizontal Development Opportunities

Inter-bedded oil-bearing sandstone, shale, and

tight limestone

Inter-bedded high quality organic-rich siltstone

and fine-grained tight limestone

Inter-bedded high quality organic-rich siltstones

and tight debris flow deposits (frac barriers)

denotes primary targets *

In comparison, the

lower Eagle Ford

reservoir thickness is

~100’ at Gates Ranch

Reeves Co. Horizontal Development Plan 3/31/2014

9 1. Horizontal project count is operated and non operated and includes multiple horizons (Wolfcamp A, B, C, and 3 rd Bone Spring). 9

1,176 Gross (Avg 76% WI)

Horizontal Well Locations1

P1, P2, P3 Gross Hz

Locations

Wolfcamp ‘A’ 430

Wolfcamp ‘B’,‘C’ 290

3rd Bone Spring 274

TOTAL OPERATED 994

Wolfcamp ‘A’ 103

Wolfcamp ‘B’,‘C’ 51

3rd Bone Spring 28

TOTAL NON-OP 182

Total Horizontal 1,176

Optimizing Operations

• Pre-drill planning, land

work, and location prep

• Drilling multi-well

horizontal locations

3-well pad underway

4-well pad planned

• Utilizing simultaneous

operations

Concurrent facility

construction during drilling

and completion operations

Reduce cycle time to

eliminate delays from well

completion to production

10

Optimizing Operations

• Completion Efficiency

Expediting water transfer process to support activity

Applying cross-basin knowledge to job design

Evaluating flowback and testing

• Production Efficiency

Optimizing to reduce mechanical downtime

Planning appropriate artificial lift applications

Gathering system for produced water

11

Optimizing Facility Construction

• Lowering costs / improving

economics

Horizontal multi-well facility design

Vertical multi-well facility design

Facility standardization

• Facility improvement

Organization

Safety, Environmental, and

Standards Compliance

Automation and optimization

utilizing Technology

12

Well Cost Performance – Permian Horizontals

13

$10.5

$8.5

$7.8

0.0

2.0

4.0

6.0

8.0

10.0

12.0

0

10

20

30

40

50

60

70

80

90

100

Pre-Acquisition 2013 Q4 2014 Q1

Co

mp

lete

d W

ell C

ost

$M

M

Cyc

le T

ime

(Day

s)

Spud to Rig Release / Completed Well Cost

Spud to Rig release Completed Well Cost

* Note: 1Q 2014 is latest estimate

*

Well Cost Performance – Permian Verticals

14

$4.4

$3.8

$3.6

$3.2

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

0

5

10

15

20

25

30

35

40

Pre-Acquisition 2013 Q3 2013 Q4 2014 Q1

Co

mp

lete

d W

ell C

ost

$M

M

Cyc

le T

ime

(Day

s)

Spud to Rig Release / Completed Well Cost

Spud to Rig release Completed Well Cost

* Note: 1Q 2014 is latest estimate

*

Growing Permian Gross Operated Daily Production

15

0

25

50

75

100

125

0

2,000

4,000

6,000

8,000

10,000

Q3 2013 Q4 2013 Q1 2014 Q2 2014

Gro

ss O

pe

rate

d W

ell

Co

un

t

Gro

ss O

pe

rate

d A

vg D

aily

Rat

e, B

oe

/d

Boe/d Wells

* Note: Q2 2014 based on estimate thru May 12, 2014

*

Growing a core area in Delaware Basin requires…

• Insightful technical analysis and application of cross-basin

experience

• Leveraging industry information

• Focus on optimizing all phases of operations from land

through production

• Expansion of inventory and future growth opportunities

• Successful execution of project plans

16

“Rosetta Resources is early in its Permian program and

well positioned to grow a core area in the Delaware Basin”

growing a core area in the delaware basin rosetta ...unless legally required, the company undertakes...

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