HOUSTON, Feb. 26, 2013 (GLOBE NEWSWIRE) -- Rosetta Resources Inc. (ROSE) ("Rosetta" or the "Company") today announced several changes in leadership at the Company that will be effective on February 26, 2013. Randy L. Limbacher is resigning as its Chairman, Chief Executive Officer and President. Mr. Limbacher has served as Rosetta's Chief Executive Officer and President since 2007. Mr. Limbacher will be succeeded as Chairman, Chief Executive Officer and President by James E. Craddock, who has served as Rosetta's Senior Vice President of Drilling and Production Operations. In addition, John D. Clayton will be appointed as Executive Vice President and Chief Operating Officer, who has previously served as Rosetta's Senior Vice President of Asset Development. John E. Hagale will remain Executive Vice President and Chief Financial Officer of the Company and will report to Mr. Craddock. Mr. Limbacher will remain with the Company until April 2013 to provide transitional support for the change in leadership at the Company.
Don't read too much into this. When Randy took the job he only wanted to stay for five years. He's made a ton of money and may just want to do something else besides work 60-80 hours a week.
ROSE Leadership Change
ROSE Leadership Change
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: ROSE Leadership Change
The pullback in ROSE looks like a buying opportunity to me. If they hit the midpoint of their production guidance for 2013 and WTI stays above $85/bbl, the company should report over $11 cash flow per share in 2013 (compared to $9.12/share in 2012).
The market tends to make a big deal out of a leadership change,but I don't. People are not slaves to these companies and they have a right to retire whenever they wish. As I posted earlier, Randy told the board that he only wanted to take the job for five years and he fulfilled his promise. They still have a very good management team.
ROSE plans to drill 80 new Eagle Ford wells this year and they will all be low risk development wells. I am using the midpoint of their production guidance in my forecast model, but I bet they come in near the top of the range. Their January production is already at the bottom of the guidance range (47,000 boepd). I'm also impressed by the reduction in completed well costs.
You can download my updated forecast model from the website. Just log on and click on the Sweet 16 Tab. My Estimate Fair Value is at the bottom.
The market tends to make a big deal out of a leadership change,but I don't. People are not slaves to these companies and they have a right to retire whenever they wish. As I posted earlier, Randy told the board that he only wanted to take the job for five years and he fulfilled his promise. They still have a very good management team.
ROSE plans to drill 80 new Eagle Ford wells this year and they will all be low risk development wells. I am using the midpoint of their production guidance in my forecast model, but I bet they come in near the top of the range. Their January production is already at the bottom of the guidance range (47,000 boepd). I'm also impressed by the reduction in completed well costs.
You can download my updated forecast model from the website. Just log on and click on the Sweet 16 Tab. My Estimate Fair Value is at the bottom.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group