Second Quarter 2014 Investor Presentation August 11, 2014 1 www.riceenergy.com
Rice Energy Concentrated Core Position COMPANY TOTAL 127,000 net acres in Appalachia 280 MMcf/d net June production from 55 wells 61 operated wells in progress 1,033 net risked locations Average horizontal rigs for 2014: 3…
Delivering on Our Plan Since IPO Accomplishments Since IPO Increased production by 60% since year-end 2013 Production Growth from High Rate of Return Projects - Turned online 14 Marcellus wells, avg 8,000 hz, 30 day avg 13 MMcf/d…
Proven Ability to Grow Core Position Disciplined approach to increasing core acreage is transformative to our low risk, high return inventory Our asset value is not static and will continue to grow By the end of 2014, we expect to have…
Deep Inventory of High Returning Projects 16 Tcf of net undeveloped potential reserves Average 86% IRR to develop 13.3 Tcf from Marcellus and Utica Marcellus: 750 net unrisked drilling locations with 60-110% IRR; type curve de-risked by…
Pennsylvania Assets 6 www.riceenergy.com
Marcellus Overview Summary (1) Marcellus Well Results Acreage: 75,834 net acres in the southwestern core Sustained prolific production rates over a 6-month period (100% operated) Mono 4H 80% held by production or does not expire until…
Unmatched Well Performance Rices drilling and completion techniques have yielded greater production profile per well, versus our peers Drilling Proficiency, Marcellus Average 90-Day IP, Marcellus MMcf/d Avg. Lateral Ft. Avg. Hz.…
Greene County Acquisition Summary We have closed on our previously announced acquisition of 22,000 net acres in the core the SW PA Marcellus Transaction Profile Rice Pro Forma Acreage Map Acreage Summary 22,000 net acres, 100%…
Acquisition of a De-risked, High-Return Marcellus Position Rice has had considerable success from its development on trend and in close proximity to the acquired acreage. Rice Well Performance, Western Greene Resource Potential & NAV…
Deep Utica Potential in Pennsylvania OH WV PA County Fairfield Muskingum Guernsey Belmont Ohio/Marshall Washington / Greene Depth 5000 6000 7500 9500 10,500 12,000 13,000 West East Porosity 12% Point Pleasant Core 6% 0%…
Rices Marcellus Shale Type Curve 1.94 Bcf / 1,000 Type Curve (1) MMcf/d 16 All wells are produced on restricted choke program 14 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 www.riceenergy.com
Utica: The Newest Premier Shale 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 the November 2012…
Industry Results Confirm our Position in the Utica Core Rices acreage is surrounded by the largest producing wells in the Utica Rice: 1 well Gulfport: Shugert 1-2H Rice: 2 wells Bigfoot 9H IP Rates Sized and Color Coded 3 BCF in 309…
Bigfoot 9H Flowing Pressures Why Its a Big Deal Wellhead pressure is the leading indicator of sustainability of initial flow rates. Utica pressure regime suggests our 1.5-2.0 MMcf/d initial flow rate could be sustainable for up to 14…
Belmont + Monroe Counties: The Utica Outliers Early production results in Belmont and Monroe significantly outperforming the Utica as a whole Belmont Monroe Other Utica Susquehanna, PA (Marcellus) 8,000,000 7,000,000 Cumulative…
High Volume Wells Predicted by Geologic Model Rice Energy controls 50,772 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 Remainder of Delineation Program 60 10 Control Procedures 50 Improved Mud Fit-for-Purpose Deep Tophole Rig…
Utica Single-Well Economics Bigfoot 9H production performance indicates significant upside potential to our single-well economics. We will update EURs, type curves and single-well economics in January 2015 Utica Dry Type Well Economics…
Midstream Assets 21 www.riceenergy.com
Midstream Overview Committed to operating our gas gathering assets to maximize transportation potential via 1 Bcf/d of firm capacity with access to premium US markets. Through YE 2014, RICE will have invested 475 million in midstream…
Midstream Recent Developments We have entered into a letter of intent with Gulfport Energy to provide midstream services for a predominantly dry gas area covering approximately 65% of Gulfports acreage within our area of mutual interest…
Firm Transport De-risks Production Growth For production growth assurance and net realized pricing, firm capacity is creating differentiation amongst Appalachian producers. Rice Energy was early in identifying and securing its…
Long-Haul Firm Transport Improves Realized Pricing Southwest Appalachia basis exposure is significantly reduced by 4Q14 and over 60% of 2015 volumes will access attractive Gulf Coast, Midwest and TCO markets Quarterly Basis Exposure…
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) 100% 0% 1% % of NYMEX 2014 2015 (7/1 -…
Financial Overview 27 www.riceenergy.com
2Q 2014 Snapshot 2Q14 Summary Capitalization and Liquidity Net production of 241 MMcfe/d, 84% and 15% increase over 2Q13 Beta Acq. PF ( in millions) 6/30/14 Adj. 6/30/14 and 1Q14 volumes, respectively Cash 472 (311) (1) 161 June net…
Update to 2014 Guidance Rice has updated 2014E guidance to better reflect managements current outlook Total net production range has tightened due to greater visibility of pad turn-to-sales timing Drilling and completions capital of 570…
Commodity Hedging Summary Strategy Hedge Book (1) 7/1- We employ financial instruments (primarily swaps and YE2014 2015 2016 2017 costless collars) to mitigate commodity price risk NYMEX Henry Hub Contract Summary Natural Gas Swaps…
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…
Appendix 32 www.riceenergy.com
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 Wells Feet (000)…
Deep Inventory of High Returning Projects 600 560 140% Marcellus Inventory: 12+ Years, weighted Difference 119% 120% average single well return of 92% 500 104% driven by historical 100% Net Locations 400 gathering fee Type…
2Q 2014 Adjusted EBITDA Reconciliation Three Months Ended Six Months Ended ( in thousands) June 30, 2014 June 30, 2014 Adjusted EBITDAX reconciliation to net income (loss): Net income (loss) (7,917) 121,538 Interest expense 15,941…
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