Rosetta’s Growth & Quarterly Beat Driven By The Eagle Ford

Hedges & Price Realizations Improve Margins In South Texas
Rosetta Resources Eagle Ford Midstream Map

Rosetta Resources Eagle Ford Midstream Map | Click to Enlarge

Rosetta Resources’ performance in the first quarter beat consensus estimates from analyst due to better price realizations and hedges in the Eagle Ford.

It didn’t hurt that Eagle Ford production grew 54% over the previous year or that oil production from the play had grown 70%. Company-wide production grew 6% over the fourth quarter and set a record at 47,000 boe/d. [Read more…]

Eagle Ford Oil Prices Trade at a Premium to WTI – Condensate Weaker

Eagle Ford crude oil prices have been $10/bbl better than WTI at times this year

Eagle Ford oil prices realize a nice premium to WTI and higher API condensates trade at a discount. One of the great advantages the Eagle Ford has over other shale plays is location, location, location. A short commute to the nation’s petrochemical backbone means operators realize better oil prices than most areas of the U.S.

Eagle Ford Shale Oil Price Premium

Eagle Ford oil prices trade at a premium to WTI or a discount to LLS depending on who you talk to. Over the past two months, posted Eagle Ford prices have traded at a ~$6-8 premium to WTI and a ~$6 discount to LLS posted prices. That’s after spending part of April and May at >$10 premium to WTI and almost parity with LLS.

Eagle Ford Condensate Prices Trade at a Discount to Crude Oil

Oil Drum ImageIn 2011, over 36% of reported liquids production from the Eagle Ford was considered condensate and as much as 50% of production today is estimated to be condensate. That’s a significant portion of production, so it’s important to understand its pricing. [Read more…]