Rosetta Resources’ results include a non-cash charge of $238.1 million, net of tax, for impairment of oil and gas properties. Excluding this charge, the company was in a break-even position for the first quarter of 2009.

Production for the first quarter of 2009 was 160 MMcfe/d, which represents a quarterly record for Rosetta Resources. Daily production was up 5% against the first quarter of 2008 and up 14% consecutively. The decline in revenues was mainly attributable to lower realized gas prices of $5.46 per Mcf against $8.74 per Mcf in the year-ago quarter. Total revenue in this year’s first quarter comprises a benefit of $15.4 million due to the effect of natural gas hedging.

Total lease operating expense (LOE), which includes direct LOE, workovers, ad valorem taxes and insurance, was $18 million or $1.25 per Mcfe during the first quarter of 2009. Direct LOE was $10.7 million or $0.74 per Mcfe, workover costs were $2.3 million or $0.16 per Mcfe, ad valorem taxes were $4.7 million or $0.33 per Mcfe and insurance was $0.3 million or $0.02 per Mcfe. Production taxes were $1.3 million or $0.09 per Mcfe and treating and transportation and marketing charges were $2 million or $0.14 per Mcfe. Depreciation, depletion and amortization, before the effect of impairment of oil and gas properties, were $44.4 million based on a DD&A rate of $3.08 per Mcfe.

General and administrative costs were $9.4 million or $0.65 per Mcfe for the first quarter including $0.9 million in non-cash stock compensation expense. Excluding stock compensation expense, general and administrative costs were $0.59 per Mcfe.

Operations Update:

During the first quarter, Rosetta Resources has drilled 21 gross and 16 net wells with a net success rate of 88%. The majority of this drilling activity took place in South Texas.

In South Texas, Rosetta Resources drilled 12 wells in the first quarter, with 10 being productive for an 83% success rate. Net production from this region, including the Lobo, Constellation acquisition properties and Perdido trend, was 64 MMcfe/d for the quarter, up 15 MMcfe/d compared to the year-ago quarter.

In the Rockies, Rosetta Resources has drilled three wells in the first quarter, all of which were successful. Net production from the area, which comprises the DJ basin, San Juan basin, and Pinedale Anticline assets, was 21 MMcfe/d for the first quarter, which is up 11 MMcfe/d from the year-ago quarter.

In the Sacramento basin, Rosetta Resources drilled one well which was successful. Average net production from the Basin was 43MMcfe/d for the quarter.

Rosetta Resources Gulf of Mexico and State Waters properties produced 11MMcfe/d and 9MMcfe/d, respectively, for the first quarter of 2009. These non-core assets are being contemplated for divestiture at some point in the future.

Financing Update:

On April 9, 2009, Rosetta Resources entered into an amended and restated senior revolving credit agreement with a maximum credit amount of $600 million from a previous amount of $400 million. The maturity date of the agreement was extended by over two years to July 1, 2012 from April 5, 2010. The borrowing base under the amended and restated agreement was reset to $375 million from a earlier amount of $400 million.

Rosetta Resources also entered into an amended and restated second Lien term loan agreement which extended the maturity date of the term loan from July 7, 2010 to October 2, 2012 and provided the company the option to raise fixed and floating rate borrowings from $75 million to $100 million within 30 days. Rosetta Resources has exercised this option and the $25 million of increased borrowings comprises of $5 million of floating rate borrowings and $20 million of fixed rate borrowings.

Randy Limbacher, Rosetta Resources chief executive officer and president, commented Rosetta’s performance in the first quarter is evidence of our underlying advantage as a Company. We generated production growth on both a quarter-to-quarter basis and sequentially due to our high quality bolt-on acquisitions in late 2008, as well as solid performance from our base assets. Due to the relatively low capital intensity of our core assets, we are fortunate in that we can curtail our capital program during this industry down cycle without significantly impacting volumes in 2009.

Our emphasis in this quarter and for the foreseeable future is to preserve our financial flexibility, while investing in programs that should favorably impact Rosetta’s value. Accordingly, our operational priorities are to continue building and evaluating our exciting Eagle Ford Shale and Bakken Shale positions, while closely managing all aspects of our financial performance, including cost controls.

2009 Outlook:

Rosetta Resources continues to project its organic capital spending level at no in excess of its internally-generated cash flow. The majority of the existing estimate for 2009 expenditures is earmarked for development drilling in the Lobo Trend of South Texas, recompletions in the Sacramento basin, and exploratory tests in the Eagle Ford shale in South Texas and the Bakken shale in the Alberta basin. At roughly $80 million of organic capital spending, Rosetta Resources anticipates to achieve between 130 – 140 MMcfe/d of full year production, excluding acquisitions and divestitures.

Eagle Ford Shale Update

Rosetta Resources has successfully drilled, cored, and logged two vertical Eagle Ford Shale wells in South Texas that has helped quantify the resource potential of the play. The Eagle Ford Shale interval was present in both of these wells and contained a highly resistive shale interval. Based upon both well logs and core analysis, these wells have been mechanically organized to drill horizontal at a later date. Both of these wells are operated by Rosetta Resources with a 100% working interest. Moreover, Rosetta Resources has raised its net acreage position in this play from the earlier announced 25,000 acres to more than 28,000 acres.

Bakken Shale Update

Rosetta Resources has captured more than 230,000 net acres in the Alberta basin and plans to drill a minimum of two exploratory wells this year to help quantify the resource potential of the play. Well permitting is now in progress and the anticipated spud date for this program is in the third quarter of 2009. The Bakken shale is expected to be at a vertical depth of roughly 5,000 – 6,000 ft and normally pressured.

Hedging Update

Rosetta Resources hedge position consists of 52,141 MMBtu/d hedged at an average price of $7.65 per MMBtu, along with 10,000 MMBtu/d for 2010 at an average price of $8.31 per MMBtu. The company has also entered into costless collar transactions covering 5,000 MMBtu/d of the company’s 2009 production. The costless collars have an average floor price of $8 per MMBtu and an average ceiling price of $10.05 per MMBtu.

We continue to monitor the environment closely and adjust our activities and programs, as appropriate, noted Limbacher. We are focused on protecting liquidity and optimizing capital to minimize volume impacts. We are spending on our impact exploratory programs to build value for the future. And we are staying diligent on the big and small controllable factors that will improve our relative position and allow us to emerge from this downturn as a stronger company.