Economics : Rates of Return/ IRR

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Utica Shale Rich Condensate Type Curve Economics Type Curve 3-String 2-String Total Well Cost 9.0 MM 8.2 MM Gross 950 Mboe EUR Condensate Only 450 Mbo Net 770 Mboe F&D Cost 11.69 / Boe 10.65 / Boe IRR 45% 57% 75 Oil NPV 5.7 MM 6.5 MM IRR IRR 29% 37% & 65 Oil NPV (1) NPV 3.4 MM 4.2 MM IRR 16% 21% 55 Oil NPV 1.1 MM 1.9 MM NYMEX NPV10 Breakeven 50.00 46.50 (1) Economics based on NYMEX prices and include 7.50/Bbl deduct for condensate, 40% NYMEX oil for NGL mix assuming no ethane recovery, and 3.00/Mcf NYMEX gas less 1.50-2.00/Mcf. (2) Total well cost includes 1.3MM for allocated infrastructure. 23 23 CRZO
Carrizo Oil & Gas Inc.
February 2017

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

Stacked Pay Value for SWPA: Pad Level Example Stacked Pay Pad Economics Example(1) 160,000 120% Unstacked NPV Stacked pay development improves IRR 140,000 Stacked NPV Unstacked IRR % 100% by 10-20 percentage points Stacked IRR % 120,000 Marginal horizons may be pulled into the BTAX NPV ( in millions) 80% development plan due to stacked pay economic 100,000 BTAX IRR (%) improvement 80,000 60% Stacked pay development concentrates large-scale operations in a small footprint 60,000 40% Concurrently developing two horizons enables cost 40,000 effective infrastructure build-out for both plays 20% 20,000 Significant reduction in both lifting and gathering operating costs due to higher volumes 0 0% 2.00 2.50 3.00 Gas Price Stacked Pay Efficiencies Dry Marcellus Dry Utica Unstacked Stacked Unstacked Stacked LOE (/Mcf) 0.12 0.05 0.15 0.05 Gathering Rate (/Mcf) 0.45 0.39 0.24 0.18 Capital ( in thousands) 5,900 5,450 13,200 12,300 (1) Assumes six Marcellus wells and four Utica wells per pad; 7,000 laterals 11
Consol Energy Inc.
March 2017

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