Rosetta Resources Inc.Fort Worth, TX May 22, 2014
Dan CalnanVice President, Operations
Growing A Core Area In The Delaware Basin
Cautionary Statements
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This presentation includes forward-looking statements. Forward-looking statementsrelated to future events, such as expectations regarding our capital program,development plans, production rates, resource potential, transportation capacity, netpresent value and projected liquidity. These statements are not guarantees of futureperformance and actual outcomes may differ materially. Factors that could affect theCompany's business include, but are not limited to: oil and gas prices, operatinghazards, drilling risks, unsuccessful exploratory activities; unexpected cost increases;potential liability for remedial actions under existing or future environmentalregulations; potential liability resulting from pending or future litigation; limited accessto capital or significantly higher cost of capital related to illiquidity or uncertainty in thedomestic or international financial markets; as well as changes in tax, environmentaland other laws applicable to our business. Other factors that could cause actualresults to differ materially from those described in the forward-looking statementsinclude other economic, business, competitive and/or regulatory factors affecting ourbusiness generally as set forth in our filings with the Securities and ExchangeCommission. Unless legally required, the Company undertakes no obligation toupdate publicly any forward-looking statements, whether as a result of newinformation, future events or otherwise. For filings reporting year-end 2013 reserves,the SEC permits the optional disclosure of probable and possible reserves. TheCompany has elected not to report probable and possible reserves in its filings withthe SEC. We use the term net risked resources or inventory to describe theCompanys internal estimates of volumes of natural gas and oil that are not classifiedas proved reserves but are potentially recoverable through exploratory drilling oradditional drilling or recovery techniques. Estimates of unproved resources are bytheir nature more speculative than estimates of proved reserves and accordingly aresubject to substantially greater risk of actually being realized by theCompany. Estimates of unproved resources may change significantly asdevelopment provides additional data, and actual quantities that are ultimatelyrecovered may differ substantially from prior estimates.
Rosetta Resources Permian Overview
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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 Entry2013
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
Delineation2014+
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
Expansion2014+
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
Development2015+
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
Rosettas Permian Basin TimelineGrowing core area in Delaware Basin focused on horizontal applications
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Basin Entry2013
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
Delineation2014+
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
Expansion2014+
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
Development2015+
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
Rosettas Permian Basin TimelineGrowing core area in Delaware Basin focused on horizontal applications
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Basin Entry2013
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
Delineation2014+
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
Expansion2014+
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
Development2015+
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
Rosettas Permian Basin TimelineGrowing core area in Delaware Basin focused on horizontal applications
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Basin Entry2013
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
Delineation2014+
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
Expansion2014+
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
Development2015+
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
Rosettas Permian Basin TimelineGrowing core area in Delaware Basin focused on horizontal applications
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8Permian Asset PotentialStacked 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
91. Horizontal project count is operated and non operated and includes multiple horizons (Wolfcamp A, B, C, and 3rd Bone Spring). 9
1,176 Gross (Avg 76% WI)Horizontal Well Locations1
P1, P2, P3 Gross HzLocations
Wolfcamp A 430Wolfcamp B,C 2903rd Bone Spring 274TOTAL OPERATED 994Wolfcamp A 103Wolfcamp B,C 513rd Bone Spring 28
TOTAL NON-OP 182Total 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
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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
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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
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Well Cost Performance Permian Horizontals
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$10.5
$8.5$7.8
0.0
2.0
4.0
6.0
8.0
10.0
12.0
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10
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40
50
60
70
80
90
100
PreAcquisition 2013Q4 2014Q1
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SpudtoRigrelease CompletedWellCost
* Note: 1Q 2014 is latest estimate
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Well Cost Performance Permian Verticals
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$4.4
$3.8$3.6
$3.2
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SpudtoRigrelease CompletedWellCost
* Note: 1Q 2014 is latest estimate
*
Growing Permian Gross Operated Daily Production
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Q32013 Q42013 Q12014 Q22014
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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
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Rosetta Resources is early in its Permian program andwell positioned to grow a core area in the Delaware Basin