Rosetta Resources, Inc. Reports Unaudited Consolidated Earnings and Operating Results for the First Quarter Ended March 31, 2013; Reaffirms Capital Expenditure and Production Guidance for the Year 2013
May 6 13
Rosetta Resources, Inc. reported unaudited consolidated earnings and operating results for the first quarter ended March 31, 2013. For the quarter, the company's total revenues were $178,120,000 compared to $114,458,000 a year ago. During the period, 56% of revenue was generated from crude and condensate sales, including the effects of realized derivatives, as compared to 47% a year ago. Operating income was $86,305,000 compared to $40,541,000 a year ago. Income before provision for income taxes was $80,266,000 compared to $34,969,000 a year ago. Net income was $53,480,000 or $1.01 per diluted share compared to $22,297,000 or $0.42 per diluted share a year ago. Net cash provided by operating activities was $141,639,000 compared to $73,711,000 a year ago. Additions to oil and gas assets was $175,849,000 compared to $127,981,000 a year ago. Adjusted net income (non-GAAP) was $62,473,000 or $1.01 per diluted share compared to $33,772,000 or $0.42 per diluted share a year ago. The income increase was due to production growth and a higher liquids mix. Revenues, excluding derivatives, were $119 million compared to $130 million for the same period in 2012. First quarter revenues, including realized derivatives, were $192 million in 2013 compared to $132 million in the prior year. Year-over-year growth in revenue was due to increased oil and NGL production and higher average oil prices. Capital expenditures for the quarter were $161 million, and the company drilled 24 gross wells and completed 17.
For the quarter, the company's total daily production was 46,998 Boe/d compared to 33,828 Boe/d a year ago. The increase was a result of continued production growth from the Eagle Ford assets. Oil production was 12,421 Bbls/d compared to 7,443 Bbls/d a year ago. Oil and natural gas liquids production was 16,543 Bbls/d compared to 9,994 Bbls/d a year ago. Natural gas production was 108,205 Mcf/d compared to 98,351 Mcf/d a year ago.
On April 15, the company announced 2013 guidance updates for capital, production, and expenses that include the acquisition of the Permian Basin assets currently expected to close on or before May 14, 2013. The company is reaffirming all previously announced guidance ranges contingent upon closing of the pending acquisition. The company's 2013 capital guidance range of $840 million to $900 million remains unchanged from the previous estimate. The 2013 capital program is based on a five to six-rig program in South Texas and a Delaware Basin program with three rigs increasing to six rigs during the year. Based on the current capital guidance, the company reiterates the full year average daily production range from 51--55 MBoe/d or approximately 40% year-over-year production growth. The projected 2013 exit rate is anticipated to range from 56--60 MBoe/d, including oil and total liquids production of 16--19 MBbls per day and 35--38 MBoe/d, respectively. Approximately $600 million will be spent for development activities in the Eagle Ford, which includes about $55 million for facilities projects. Approximately $175 million will be allocated to operated and non-operated development activity in the Permian, including about $7 million for facilities projects. The remainder of the capital is for new ventures and other corporate.
Rosetta Resources, Inc., Q1 2013 Earnings Call, May 07, 2013
Apr 19 13
Rosetta Resources, Inc., Q1 2013 Earnings Call, May 07, 2013
Rosetta Resources Provides Production Guidance for First Quarter and Full Year of 2013; Announces Amendment to Its Credit Facility
Apr 15 13
Rosetta Resources, Inc. provided production guidance for the first quarter ended March 31, 2013. The company's total production for the quarter is expected to average an all-time record of 47.0 thousand barrels of oil equivalent per day ("MBoe/d"), up 39% from the same period in 2012 and 6% from the prior quarter. Oil production will be 12.4 thousand barrels ("MBbls") per day, an increase of 67% from the prior year and 6.4% over the fourth quarter daily production rate. The Company expects total production for the quarter to be 62% liquids. In the first quarter of 2013, Rosetta made capital investments of approximately $161 million, drilling 24 gross wells with a 100% success rate and completing 17 wells. At the end of the quarter, 38 drilled wells were awaiting completion.
The Company's 2013 capital guidance range will be revised upward from $640--$700 million to $840--$900 million. The 2013 capital program is based on a five to six-rig program in South Texas and a Delaware Basin program with three rigs increasing to six rigs during the year. Approximately $600 million will be spent for development activities primarily located in the liquids-rich window of the Eagle Ford shale in South Texas, including about $55 million allocated to facilities projects. Approximately $175 million will be allocated to operated and non-operated development activity in the oil-rich Delaware Basin, including approximately $7 million for facilities projects. In addition, the guidance range now includes approximately $25 million of capitalized interest related to the pending acquisition. The remainder of the capital plan includes allocations for new ventures activity and other corporate capital. Based on the revised capital guidance and assuming a closing date for the Permian assets on or before May 14, 2013, Rosetta expects full year average daily production to range from 51--55 MBoe/d or approximately 40% year-over-year production growth. The projected 2013 exit rate is anticipated to range from 56--60 MBoe/d, including oil and total liquids production of 16--19 MBbls per day and 35--38 MBoe/d, respectively.
The company announced that it has amended its Credit Facility to provide a maximum credit amount of $1.5 billion, revised from the previous amount of $750 million. The semi-annual borrowing base redetermination was recently completed for the Credit Facility and effective April 12, 2013 the Company's borrowing base increased from $625 million to $800 million. Rosetta further indicated that the maturity date of the agreement has been extended to May 2018. As of April 15, 2013, after paying a $38.4 million deposit that will be applied against the payment of the acquisition purchase price at closing, the Company had $305 million outstanding under the Credit Facility.