Rosetta Resources (ROSE) Tops Q2 EPS by 16c; Updates on Noble Energy (NBL) Merger

Rosetta Resources (NASDAQ: ROSE) reported Q2 EPS of $0.16, $0.16 better than the analyst estimate of $0.00. Revenue for the quarter came in at $101.3 million versus the consensus estimate of $182.4 million.

Adjusted net income was $0.82 per diluted share in the same period last year.

Operational Update

In the second quarter of 2015, Rosetta made capital investments of approximately $49.7 million. The Company completed seven gross operated wells and seven were placed on production. The second quarter capital spend included approximately $38.6 million for drilling and completion activities and $11.1 million of other capital expenses including leasehold, capitalized interest and geological and geophysical costs.

EAGLE FORD

Daily production from the Eagle Ford was 54.0 MBoe/d in the second quarter, five percent lower than the same period in 2014 due to decreased drilling and completion activity. Capital spending in the second quarter included $14.3 million related to well drilling and completion activity. During the quarter, three wells were completed and brought on production in the South Gates Ranch.

PERMIAN BASIN

Rosetta’s production from the Permian averaged approximately 9.0 MBoe/d in the second quarter, an increase of 100 percent from the same period in 2014 and the Company’s highest recorded daily production volumes since beginning operations in the basin in 2013. Capital spending included $24.3 million for well completion and non-operated drilling activities. During the quarter, four gross operated horizontal wells were completed and brought on production in Reeves County.

Proposed Merger with Noble Energy

On May 10, 2015, Rosetta and Noble Energy (NYSE: NBL) ("Noble") entered into the Merger Agreement pursuant to which each share of Rosetta common stock will be converted into the right to receive 0.542 shares of Noble common stock. The Merger Agreement was unanimously approved by Rosetta’s board of directors and by Noble’s board of directors. Following the approval by Rosetta’s stockholders, the merger is expected to close July 20, 2015.

For earnings history and earnings-related data on Rosetta Resources (ROSE) click here.

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