Rosetta Resources (ROSE) Sees FY15 CapEx of Up to $900M

Rosetta Resources (Nasdaq: ROSE) announced its Board of Directors has approved a 2015 capital budget with the flexibility to spend up to $900 million. Considering the current commodity price environment, the Company anticipates total capital spending to be between $700 million and $800 million. Approximately 54 percent will be allocated to development activities in the higher rate of return project areas of the Eagle Ford shale in South Texas and approximately 40 percent on further delineation activities in the Delaware Basin in West Texas. Drilling and completion costs should account for approximately 80 percent of total spending with the remaining 20 percent allocated to central facilities, leasehold and other corporate costs. The 2015 capital expenditure program will be funded from a combination of internally generated cash flow, cash on hand, and borrowings under the Company's credit facility.

"This 2015 capital plan allows us the flexibility to adjust our capital spending during an uncertain and challenging commodity price environment," said Jim Craddock, Chairman, Chief Executive Officer and President. "We will continue to monitor market conditions during 2015 and maintain capital discipline to ensure the integrity of our balance sheet."

Rosetta's 2015 capital program is based on a one to two-rig Eagle Ford program and plans to operate two to three horizontal rigs in the Delaware Basin. The Company expects to complete approximately 70 to 100 gross operated wells.

2015 Guidance and Hedging Update

Rosetta expects full year 2015 production to range from 76 – 82 thousand barrels of oil equivalent per day ("MBoe/d"). The average oil ratio is expected to be approximately 27 percent. As part of Rosetta's ongoing risk management, the Company recently placed additional hedges for its 2015 forecasted crude oil production. The Company added roughly 7,000 barrels of oil per day in the form of costless collars with an average Louisiana Light Sweet ("LLS") floor price of $55 per barrel and an average ceiling of approximately $85 per barrel.

Rosetta expects direct lease operating expense ("LOE") unit costs to average from $2.95 – $3.20 per Boe in 2015. Total LOE, including direct LOE, workover expenses and insurance are anticipated to approximately range from $4.50 – $4.85 per Boe in 2015.

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