UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
Current
Report
Pursuant
to Section 13 or 15(d) of the Securities and Exchange Act of 1934.
Date
of
Report: February 21, 2007
(Date
of
earliest event reported)
Rosetta
Resources Inc.
(Exact
name of registrant as specified in its charter)
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DE
(State
or other jurisdiction of incorporation)
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000-51801
(Commission
File Number)
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43-2083519
(IRS
Employer Identification Number)
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717
Texas, Suite 2800
(Address
of principal executive offices)
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77002
(Zip
Code)
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7133354000
(Registrant's
telephone number, including area code)
Not
Applicable
(Former
Name or Former Address, if changed since last report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
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Item
7.01 Regulation FD Disclosure
On
February 20, 2006, Rosetta Resources Inc. (the “Company”) issued a press release
which gave a hedging update. The press release stated, “The Company increased
hedge volumes to 65 MMbtu per day for the April - December 2007 period. This
includes 55 MMbtu per day of fixed price swaps at an average price of
$7.79/MMbtu and 10 MMbtu per day of price collars with floor and caps of $7.19
and $10.03 per MMbtu, respectively. For 2008, 50 MMbtu per day of fixed price
swaps are currently in place at an average price of $7.62/MMbtu.”
The
press
release should have stated, “The Company increased hedge volumes to 65 Bbtu per
day for the April - December 2007 period. This includes 55 Bbtu per day of
fixed
price swaps at an average price of $7.79/MMbtu and 10 Bbtu per day of price
collars with floor and caps of $7.19 and $10.03 per MMbtu, respectively. For
2008, 50 Bbtu per day of fixed price swaps are currently in place at an average
price of $7.62/MMbtu.”
Additionally,
as a point of clarification, when determining its reported production and
reserves, the Company excludes the production and reserves from the non-consent
properties that have not yet been conveyed to Rosetta by Calpine. These
properties are those for which the Company withheld approximately $75 million
from the purchase price it paid to Calpine for all or substantially all of
its
oil and gas properties.
Item
8.01 Other events
On
February 20, 2007, Rosetta Resources Inc. (the “Company”) released
information regarding its total proved oil and natural gas reserves as of
December 31, 2006, operations and production volume summaries for 2006 and
2007
guidance related to capital expenditures, production and drilling activities.
The
Company’s estimated total proved oil and natural gas reserves as of December 31,
2006 were 407.8 billion cubic feet of gas equivalents (Bcfe), consisting of
390.2 Bcfe of natural gas and 2.9 million barrels (bbls) of crude oil and
condensate.
The
2006
year end reserve number excludes 23.4 Bcfe of proved reserves associated with
the non-consent properties that have not yet been conveyed to Rosetta by
Calpine. These properties are those for which the Company withheld approximately
$75 million from the purchase price it paid to Calpine for all or substantially
all of its oil and gas properties.
The
year
end 2006 reserve number increased 14% over the year ended December 31, 2005
number of 359 Bcfe, primarily due to organic drilling activities. The estimated
year end standardized measure of discounted future net cash flows was $721.7
million using a flat average natural gas and oil price of $5.84 per Mcf and
$58.82 per bbl, respectively. This number does not include the year end pre-tax
PV-10 value of the company’s hedging program of $75 million.
Our
capital expenditures were approximately $240 million in 2006, including
approximately $35 million relating to properties acquired during 2006, most
of
which were made near the end of the year and did not contribute significantly
to
2006 production. For 2007, our estimated capital budget for organic growth
is
$250 million.
Rosetta’s
production for 2006 increased to 33.4 Bcfe for an average of 92 MMcfe per day.
This daily production equates to a 26% increase versus the 73 MMcfe per day
reported for the second half of 2005, which was the first six month period
that
Rosetta was a stand alone entity.
The
Company increased hedge volumes to some 65 Bbtu per day for the April - December
2007 period. This includes some 55 Bbtu per day of fixed price swaps at an
average price of $7.79/MMbtu and some 10 Bbtu per day of price collars with
floor and caps of $7.19 and $10.03 per MMbtu, respectively. For 2008, some
50
Bbtu per day of fixed price swaps are currently in place at an average price
of
$7.62/MMbtu.
Item
9.01. Financial Statements and Exhibits
(a)
Financial statements:
None
(b)
Pro
forma financial information:
None
(c)
Shell
company transactions:
None
(d)
Exhibits
None
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized officer.
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ROSETTA RESOURCES INC.
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(Registrant)
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Date:
February 21, 2007
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By:
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/s/
Michael J. Rosinski
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Michael
J. Rosinski
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Executive
Vice President
&
Chief Financial Officer
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