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Deep Inventory of High Returning Projects Low breakevens between 2.35-3.05/MMBtu = profitable returns throughout the commodity price cycle Inventory and Returns Summary IRR 200% 175% 171% 168% 150% 124% 125% 121% 132% 100% 87% 81% 88% 75% 56% 50% 32% 49% 53% 25% 13% 24% 27% 7% 8% NYMEX (/MMBtu) 2.50 3.00 3.50 4.00 4.50 5.00 Realized 1.84 2.32 2.80 3.28 3.75 4.23 (FT+Basis+BTU /mcf) (1) Net Locations 356 139 302 NYMEX PV-10 Breakeven (/MMBtu)(2) 2.60 3.05 2.35 __________________________ Note: See appendix for summary of assumptions used to generate single well IRRs. 1. Basis assumption = 9% of NYMEX, Firm Transportation cost (FT) assumption = 0.52/MMBtu and Heat content uplift (BTU) assumption = 1050 MMBtu/Mcf. Marcellus heat content = 1050, W. Greene = 1090, Utica Dry = 1080. 2. See appendix for a detailed explanation of adjusted midstream fees. Marcellus 750 economics assume E&P is burdened by 50% of the gathering and compression fee (RICE owns a 50% LP interest in RMP and owns 100% of the IDRs) . W. Greene economics assume E&P is burdened by 100% of the gathering and compression fee (RICE acquired W. Greene assets which were previously dedicated to a third party).Utica Dry 750 economics assume E&P is not burdened by gathering and compression fee (RICE owns 100% of RICEs OH midstream assets). 4 www.riceenergy.com
Rice Energy
June 2015
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