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.
“Rosetta’s first quarter results reflect a strong start in 2013 with record levels of production. We will continue to focus on efficient operational execution as we further expand the development of our Eagle Ford program.”
Rosetta also began adding stabilizers to the company's condensate gathering facilities. The company is heating the condensate to vaporize the lighter ends of the barrel. This allows the condensate to meet pipeline specifications. As a result the company's condensate production shrinks a bit and NGL production grows.
In the first quarter, Rosetta spent $161 million to drill 24 gross wells and complete 17 wells. The company operated 5-6 rigs in the Eagle Ford area during the quarter. At the end of the quarter, 38 wells that had been drilled were awaiting completion.
Four well pads have become the choice for development, but the company is testing five and six well pads. Well costs should fall even further with more wells from a single pad.