Rosetta Resources (ROSE) said that an operational snag halted production at its Eagle Ford Shale assets in South Texas.
The situation, which occurred at a pipeline service provider's gathering and processing facility, caused the oil and gas producer's daily production volumes at its Gates Ranch assets to drop by around 75 million cubic feet of net equivalent each day since July 20, the company said.
The Houston-based company said that it anticipates that part of its service will be returned in the course of the next few days and that another pipeline service provider has helped with the balance of production since the situation occurred.
"The announcement is obviously not positive though has a negligible impact on our long-term view of the shares. We reiterate our BUY rating, which is underpinned by Rosetta’s differential financial strength and growth from the Gates Ranch field," Canaccord Genuity Research said.
Reuters reports that Rosetta's Eagle Ford shale witnessed 38.3 cubic feet natural gas equivalent for the 12-month period ending December 31.
Rosetta shares hit their annual peak on Monday at $58.04, reports the news source.