An updated Net Income and Cash Flow Forecast model for Rosetta Resources (ROSE) has been posted under the Sweet 16 Tab.
My Fair Value Estimate (current break-up value) of $58.52 compares to the First Call Price Target of $56.53.
ROSE is outspending their cash flow from operations. That is the only negative I can see for the company. ROSE is almost a pure play on the Eagle Ford. They have an extremely valuable block of proven acreage in the play. I am giving their Alberta Bakken acreage zero value in my model.
The company also has quite a bit of their oil production hedged and they are getting more of their Eagle Ford production to the Gulf Coast where they should get more than $10/bbl premium to WTI.