Sterne Agee Boston Executive Summit June 17, 2014 1
Rice Energy Overview Exploration and production company developing the Marcellus and Utica High Quality Assets Operational Excellence Economic and Visible Growth 90,000 net acres concentrated in the Prioritize safety and environment…
Rice Energy Concentrated Core Position Stark Butler Wayne Columbiana Marcellus/Upper Devonian Utica Beaver Net acres at 3/31/14 (1): 43,978 Holmes Net acres at 3/31/14: 46,700 Hancock 1Q14 net production (MMcf/d): 209 Carroll Net…
Rice A Returns Focused Company Extensive drilling inventory of low risk, high return projects Rice believes the most critical component of creating Rice Energy Well Economics 4.00 / MMBtu NYMEX (1) shareholder value is repeatedly…
Established Track Record of Drilling Proficiency Proven track record of growing production, reducing costs and improving drilling efficiency Producing Horizontal Feet and Wells (Gross) Average Daily Production Feet (000) Wells MMcf/d…
Pennsylvania Assets 6
Marcellus Overview Summary Marcellus Well Results Acreage: 43,978 net acres in the southwestern Sustained prolific production rates over a 6-month period core (100% operated) Allegheny 48% held by production with an Mono 4H Avg 499…
Peer-Leading Results with Strong Production Profiles Producing wells have exhibited strong production profiles compared to those of Marcellus peers D&C strategies have resulted in consistently higher cumulative production and cash flows…
Rapidly Growing Production in a Capital Efficient Manner Growing production faster than our peers while maintaining a healthy balance sheet Rice 308 MMcf/d 41 Wells (1) Gross Daily Production (Mcf/d) Rice reached 300 MMcf/d of…
Differentiator 1: Proficiency with Lateral Placement Consistently good well results generated by consistently good execution Within a localized geologic area, performance variability is mostly attributable to operator execution; not rock…
Differentiator 2: Early Adopter of New Services & Techniques Track record of identifying, implementing and optimizing leading-edge completion designs early on in the science phase Average Frac Stage Length Feet per Stage 150-250 stages…
Rices Marcellus Shale Type Curve 1.94 Bcf / 1,000 Type Curve (1) MMcf/d 16 All wells are produced on restricted 14 choke program 12 10 8 6 4 2 0 0.0 yrs 0.5 yrs 1.0 yrs 1.5 yrs 2.0 yrs 2.5 yrs 3.0 yrs Actual Production -…
Ohio Assets 13
Utica: Quickly Becoming Another Premier North American Play The Southern Utica Core has become the most active region in the Appalachian Basin Growth and Development Utica Rigs Over Time (1) The Utica play as a whole has contracted to…
Initial Utica Well Test Results: Bigfoot 9H - Belmont County Flow Test Stats Flowed back well for 6 days. Surface equipment rated to handle 45 MMcfd 42 MMcfd On 5th day of flowback, Bigfoot 9H approached surface equipment limit 160…
Industry Results Confirm our Position in the Utica Core Rices acreage is offset by some of the largest producing wells in the Utica IP Results Sized and Color-Coded 30 MMcfe/d Rice Acreage 20-30 MMcfe/d Hess: 1 well 10-20 MMcfe/d…
High Volume Wells Predicted by Geologic Model Rice Energy controls 46,700 net acres in the heart of the high porosity Point Pleasant core in Belmont County 1 MMcfe 2 MMcfe 6 MMcfe 8 MMcfe 12 MMcfe 30 MMcfe 20 MMcfe Pending Results…
Utica Learning Curve Update Systematically reducing drilling days/costs while maintaining precision wells 70 Improved Gas Development Days Science Days 60 10 Control Procedures Spud to TD Days Improved Mud 50 Properties 40…
Rice-Gulfport Belmont County Development Agreement Rices AMI partnership provides the opportunity to leverage Gulfports Utica experience and realize substantial cost synergies Overview Acreage Map Rice and Gulfport Energy entered into…
Rices Utica Well Economics Utica Dry Type Well Economics (1) Utica Dry IRR Sensitivity (2) Net Unrisked Locations 235 NRI HZ Ft. Inventory 1.8mm ft. 200% PV-10 (mm) 13.4 IRR 70% 155% Undiscounted Payback 1.2 yrs 150% 115% 108%…
Midstream Assets 21
Midstream Infrastructure Overview Committed to owning and operating midstream assets to ensure off-take capacity from the wellhead Overview Rice Gathering and Water System Strategy: Own and operate midstream infrastructure consisting…
Firm Transportation, Firm Sales and Basis Concentrated core acreage with multiple outlets to regional, national and export markets Firm Transportation and Firm Sales by Pipeline (1) PA and OH Pipeline Map Firm capacity supports…
Firm Transportation, Firm Sales and Basis (Contd) Rices firm transportation and sales contracts provides basis and pricing diversification Basis Exposure (1) Volume Weighted Basis Impact (1) (2) % of NYMEX 100% 0% 1% 2014 2015 4/1…
Financial Policy 25
Commodity Hedging Summary Strategy Hedge Book (1) 4/1/14- We employ financial instruments 12/31/2014 2015 2016 2017 (primarily swaps and costless collars) to NYMEX Henry Hub Contract Summary mitigate commodity price risk Natural Gas…
2014 Guidance Capital Expenditure Drilling & Completion Capital Net Wells Turned to Budget by Type Expenditure Budget by Area Sales by Area (2) Utica, Midstream, 7, 16% 265, 22% Utica, 150, 26% Drilling, 580, 47% Leasehold,…
1Q 2014 Snapshot 1Q14 Summary 1Q14 Financial Recap in millions 1Q 2014 1Q14 pro forma net production of 209 MMcf/d Pro Forma (1) representing a 135% increase relative to 1Q13 and a 36% sequential increase relative to 4Q13 Net Daily…
Senior Notes Offering Summary and Borrowing Base Update In April, Rice closed on the private placement offering of 900mm of senior unsecured notes due 2022 and in May, Rices borrowing base under its revolving credit facility was…
Why Invest in Rice 100% of Leasehold in Core of Marcellus and Utica Differentiated Technical Approach Has Led to Industry Leading Well Results Owned and Operated Gathering and Water Midstream Infrastructure Supports Our Upstream…
1Q 2014 Pro Forma Adjusted EBITDA Reconciliation ( in millions) Adjusted EBITDAX reconciliation to net income: Net Income 124.1 Interest Expense 7.3 Depreciation, deplation and amortization 28.4 Amortization of deferred financing…
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