Rosetta Resources Plans to Spend $735 Million in the Eagle Ford in 2014

Rosetta Resources Eagle Ford Acreage Map By Area

Rosetta Resources will spend approximately tw0-thirds of its $1.1 billion budget in 2014 in the Eagle Ford.

The company will spend $735 million running 4-5 rigs, with plans to drill and complete 90-95 gross wells. Approximately half of the activity will target the Eagle Ford from the company's Gates Ranch leases.

Read more:Rosetta Acquires Additional Eagle Ford Interests at Gates Ranch

As a result of Eagle Ford and Permian Basin growth, Rosetta expects production to grow 20-30% to 60,000-65,000 boe/d.

“The 2014 capital plan is structured to deliver between 20 and 30 percent combined production growth from our Eagle Ford and Delaware Basin assets. The program reflects increasing activity as we initiate broader scale horizontal development in Reeves County and further expand development in new areas of our current Eagle Ford position,” said Jim Craddock, CEO. “We will continue to focus our efforts on integrating our West Texas assets while continuing to efficiently execute the development of our Eagle Ford leases.”

Rosetta will run six rigs and spend $265 million in the Permian Basin in 2014.

Also read:Rosetta Has Yet To Complete 23% of Its Eagle Ford Wells

Fourth Quarter Operational Delays Impact Production

Rosetta's fourth quarter 2013 production was negatively affected several issues that are estimated to have lowered production by ~4,000 boe/d. Rosetta expects fourth quarter production will average 52,000 boe/d and full-year 2013 production will average 50,000 boe/d.

• Operational issues on a third-party gathering system
• Operational issues at a third-party processing plant
• Wells shut-in due to adjacent well completions
• Rosetta compressor station fire

Jim Craddock, CEO, commented, "Our strength is our people and our personnel have done a great job of minimizing the impacts of several external hurdles we faced this quarter. We look forward to discussing our fourth quarter results, as well as our outlook for 2014, with investors in February."

Southcross Energy's Eagle Ford Project Is Nearing Completion

Southcross Energy's Eagle Ford Projects & Assets

Southcross Energy is expected to complete a natural gas pipeline lateral into McMullen County later in October. The pipeline is expected to add 15 mmcfd of rich natural gas supply to the company's South Texas processing and fractionation complex.

The company's South Texas Eagle Ford region experienced processing volume growth of 9% and NGL sales volume growth of 17% in the third quarter. Small expansions like the McMullen County pipeline lateral should continue to support growth in volumes for Southcross.

“We are expanding our pipeline network in the Eagle Ford to capture processing volumes and to meet growing demand for the integrated services that we offer.
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— David Biegler, Chairman, CEO of Southcross’ general partner

Southcross has completed three expansions recently:

• 3.5 mile lateral in McMullen County
• 9.5 mile, 16-inch pipeline in Karnes County
• A new propane pipeline connected to the Bonnie View fractionator

Read the full McMullen County expansion press release at southcrossenergy.com

Atlas Pipeline Expects Full Utilization at Eagle Ford Processing Plants

Atlas Pipeline Partners Eagle Ford System

Atlas Pipeline acquired Teak Midstream earlier in the year and now expects to reach full utilization at its two processing plants (400 mmcfd) by year-end 2014.

The company's Silver Oak I plant is online with capacity of 200 mmcfd and the Silver Oak II plant (200 mmcfd) will be online in the first quarter of 2014.

Atlas is currently processing 155 mmcfd and expects full utilization of its first plant by year-end and full utilization of both plants by year-end 2014.

The 155 mmcfd being processed represents growth of 20% from the second quarter average of 122 mmcfd.

The company also has plans for a third Silver Oak plant with capacity of 200 mmcfd. The plant is still pending board approval, but it could increase the company's processing capacity to 600 mmcfd sometime in the second half of 2015.

Sand Hills NGL Pipeline In Service & Moving Permian & Eagle Ford Liquids

DCP Sand Hills Pipeline Map - Eagle Ford Segment

The Sand Hills NGL Pipeline is online and taking NGLs from the Permian & Eagle Ford regions to fractionation facilities in the Gulf Coast and near Mont Belvieu.

The pipeline is 720 miles and runs from West Texas, near Midland, into South Texas on to Mont Belvieu. The pipeline will have initial capacity of 200,000 b/d and could be expanded to 350,000 b/d if needed.

“Sand Hills and Southern Hills provide a solution to the critical need for vital transportation capacity from key liquids producing regions,” said Wouter van Kempen, CEO.

DCP has a total of 1.3 bcf/d of processing capacity in the Permian and will have 1.2 bcf/d of capacity in the Eagle Ford once the Goliad Plant is completed in early 2014.

The Sand Hills in service was announced in conjunction with the in service of the Southern Hills NGL pipeline that moves liquids from the Midcontinent region to the Gulf Coast.

Read the full press release at dcpmidstream.com

Natural Gas Header Complete - Eagle Ford Gas Ready To Flow

Tres Palacios Pipeline Header and Storage

Inergy, LP has completed a 20-mile, 24-inch pipeline header extension that will allow natural gas to flow from Kinder Morgan's Houston Central gas processing plant in Colorado County to the Tres Palacios storage hub in Matagorda County.

The Tres Palacios Header crosses ten interstate & intrastate pipelines and connects the Tres Palacios storage hub to the Houston Central processing plant.

• Tres Palacios gas storage facility is located in Matagorda County, TX, and includes 38.4 bcf/d of working gas storage capacity
• Houston Central plant has capacity to process 700 mmcfd of gas and fractionation capacity of 22,000 b/d. The plant is being expanded to process an additional 400-800 mmcfd of rich gas from the Eagle Ford. The facility was formerly known as the Copano Houston Central Plant

“Beyond providing Eagle Ford Shale producers with significant new market options, we believe our new Houston Central interconnection will increase liquidity at the Tres Palacios hub point for marketers to access supply.”

— Bruce Page, VP

This is one of several midstream developments that will enhance the value of natural gas and NGLs being produced in the Eagle Ford.