Economics : Rates of Return/ IRR

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Two Streams of Low-Risk, Economic Growth RICE UPSTREAM (E&P) Production (MMcfe/d) Net Acres (000s) RICE is a technical leader in developing unconventional resource plays 831 248 Top 20 producer of US natural gas; reached 1 Bcfe/d organic production with fewer wells vs. Appalachia peers 552 148 248,000 core acres in Marcellus and Utica, 100% de-risked, 80% undeveloped 141 274 Over 1,100 identified locations with 95% IRRs at strip pricing(1) 4 horizontal rigs actively developing core Marcellus and Utica Shales 4Q16 production of 1,145 MMcfe/d; 75% CAGR since IPO 2014 2015 2016 2014 2015 2016 RICE MIDSTREAM Throughput (MDth/d) Dedicated Acres (000s) 1,691 377 RICE has built a leading midstream company in the Appalachian basin One of the largest core dry gas dedications: 377,000 acres from top-tier producers 894 10 rigs drilling on dedicated acreage 135 145 4Q16 throughput of 1,203 MDth/d; 60% CAGR since IPO 401 Potential midstream value of 2.5 - 3.2B(2) __________________________ 2014 2015 2016 2014 2015 2016 1. Marcellus and Utica economics assume E&P is burdened by 50% of the gathering and compression fee and 50% of water completion fees (Rices direct subsidiary, REO, owns a 26% LP interest in RMP, 100% of Rice Olympus Midstream and 91.75% of RMP IDRs). Strip pricing as of February 10, 2017 based on weighted average of undeveloped locations; estimated well costs of 875 per lateral foot and 1,235 per lateral foot in the Marcellus and Utica, respectively. Assumes EURs of 17.3 Bcf and 21.0 Bcf in the Marcellus and Utica, respectively. 2. Please see slide titled Significant Unrealized Midstream Value Embedded Within RICE for a detailed explanation. 11 www.riceenergy.com
Rice Energy
March 2017

Increased EURs, Lower Well Costs and Improving Regional Prices are Driving a Significant Improvement in Marcellus Returns Marcellus Well Costs (mm): Marcellus BTAX IRR at 5-Year Leidy Line Strip1 4th Generation 8,000 Lateral 4th Generation 8,000 Lateral 7.5 150% 150% 7.2 Current Forecasted YE 2017 Current Forecasted YE 2017 (Feb. 2017) Assuming Cost (Feb. 2017) Assuming Cost Inflation Inflation Approximately 73% of drilling costs and 78% of completion costs in the Marcellus are fixed / locked-in for 2017 resulting in minimal expected well cost inflation 1Based on five-year Leidy Line strip pricing from third-party trading counterparty as of February 16, 2017: 2017 - 2.32/Mmbtu; 2018 - 2.29/Mmbtu; 2019 - 2.16/Mmbtu; 2020 - 2.17/Mmbtu; 2021 and beyond - 2.22/Mmbtu 18
Cabot Oil & Gas Corp
March 2017

Core Marcellus Economics Longer laterals improve returns Aftertax returns 8
EQT Corp
February 2017

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