Rosetta Resources Announces 2012 Capital Budget of $640M; Updates Status of Montana Drilling Program

Rosetta Resources Inc.

today announced its Board of Directors has approved a 2012 capital budget of $640 million. Approximately $590 million, or more than 90 percent, will be spent for activities in the liquids-rich window of the Eagle Ford shale in South Texas, the largest producing area in the Company's portfolio. This capital expenditure program will be funded from internally-generated cash flow supplemented by borrowings under its current credit facility. In addition, the Company released the first horizontal well results from its exploratory program in the Southern Alberta Basin. Based on the approved capital level, Rosetta expects full year 2012 production guidance to range from 220 – 240 MMcfe/d. The projected 2012 exit rate is anticipated to range from 250 – 280 MMcfe/d, including liquids production of 24,000 – 27,000 barrels per day. Rosetta also expects approximately a 30 percent decline in unit lifting costs in 2012. Total lifting costs, including direct LOE, workover expenses, insurance, and ad valorem tax, are anticipated to range from $0.42 – $0.46 per Mcfe in 2012. A summary of the Company's cost per unit expense guidance for full year 2012 is outlined in the attached table. Rosetta recently placed additional hedges for its 2012 crude oil and NGL production. The Company added hedges for 600 Bbls/d of oil for a total of 5,600 Bbls/d of 2012 oil production with collars at an average floor price of $79.12 per barrel and an average ceiling price of $115.41 per barrel. Rosetta also added 2,750 Bbls/d of NGLs for a total of 4,700 Bbls/d of NGLs with fixed price swaps at an average price of $63.77 per barrel for 2012, excluding the ethane component. Natural gas hedges for 2012 and all 2013 hedges are unchanged.