Boston, MA 05/07/2014 (wallstreetpr) – Rosetta Resources Inc. (NASDAQ:ROSE) continues to be optimistic and upbeat about the oil production estimate it has laid out for this financial year. It is estimating a daily production of nearly 65,000 boed which is in line with the estimates it laid for this year for the first time.
Key developments
The company’s Revolving Credit Facility has been changed to enhance the base of borrowing. The half yearly borrowing base for the credit facility has been recently re-determined and has been in force since April this year. The borrowing base has spiked up to $950 million from $800 million. The amount committed as part of the Credit Facility has been reconfirmed at a level of $800 million, the maximum credit amount being $1.5 billion. The company reported an outstanding of $60 million in the Credit Facility as of April 2, 2014.
Rosetta Resources Inc. (NASDAQ:ROSE) had announced pricing of the public offering of $600 million Senior Notes that are due for maturity in 2022. The offering was initially proposed for aggregate principal amount of $450 million aggregate principal amount but was later revised for a higher amount. Pricing of notes was done at par. Its sale was completed last year on November 15 after customary conditions for the same were met. The Company is channelizing the net proceeds raised from this offering to offset all outstanding debts under its revolving credit facility and for meeting other corporate purposes.
Comstock Resources Inc has successfully finished the divestment of its operations in West Texas. It has sold its gas and oil properties in Gaines and Reeves counties in the region to Rosetta Resources Inc. (NASDAQ:ROSE). These assets has reserves amounting to 26.8 million barrels of oil as on December 31, 2012. $811 million were raised from this sale. This amount includes the adjustments for expenditures and revenues for activities later than the effective sale date, which is January 1, 2013. The sale price is dependent on the final adjustment post account closing for incremental costs or revenues, if any, that can accrue to the properties later than the effective sale date.
