Rice Energy Strategy Allocate 100% of Capital to Core Assets with Low Break-Even Returns Convert Acreage into Cash Flow in a Low-Risk Manner Protect Returns through FT Portfolio and Systematic Hedging Promote Operational…
Concentrated, Core Assets COMPANY TOTAL CORE ASSETS Highly concentrated position of 146,000 net acres in the Legend RMP Gathering Pipeline cores of the lowest breakeven gas shale plays in the U.S. RMP Gathering Pipeline to be…
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%…
Firm Transportation De-Risks Production Growth RICE was early in identifying and securing its attractive portfolio of firm capacity Firm capacity covers 100% of 2015 and a significant portion of RICEs volumes in 2016-2018 Firm…
Ample Liquidity and Financial Flexibility RICE is capable of funding 100% of 2015 capital plan with liquidity on-hand Favorable credit metrics & covenants ensure flexibility Cash & Revolver Capacity 3/31/15 MM 1,000 875 1.2B pro…
Efficient Capital Allocation Drives Strong 2015 Growth 2015E E&P Guidance D&C & Land Capital Expenditures Net Wells Turned to Sales (1) Average Net Daily Production MM Wells MMcfe/d 900 830 50 500 480 43 800 680 40 36 400 700 7…
Breaking Down 2015 D&C Capex: Investing in Growth Minimal capital required to maintain flat YE14 production due to shallow production declines and rapid payback. In 2015, 335 million of our D&C capital budget will fund accelerated…
Industry Activity Underscores Rices Core Position Appalachia Rig Activity (1) March 2015 Rig Counts By County 14 12 OH 10 8 PA 6 4 County Activity Levels 2 10+ Rigs Rice Acreage 0 6-10 Rigs ELK SUSQUEHANNA…
Pennsylvania Assets 10 www.riceenergy.com
Strong Execution Drives Consistent Results Highlights Marcellus Development Map Concentrated core Marcellus assets in southwestern PA 89,000 net acres, 100% operated, 90% WI avg. 83 net Marcellus wells producing at 1Q15 Avg. 1Q15…
Marcellus Single Well Economics Type Well Versus Historical Production (Normalized for 7,000 Lateral) (1) 16.0 Restricted Rate Cumulative Production 14.0 1 year 3.8 Bcf 12.0 2 years 5.6 Bcf 10.0 5 years 8.2 Bcf MMcf/d 8.0 10…
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%…
Ohio Assets 14 www.riceenergy.com
Utica: Dry-Gas Core Established, Significant Growth Ahead Operational Highlights Utica Development Map Concentrated core Utica assets in southeastern OH 57,000 net acres, 98% in Belmont County (75% dry gas) RICE 62% operated and 43%…
Utica Single Well Economics Utica Dry Type Well Curve 20.0 Cumulative Production Restricted Rate 1 year 5.2 Bcf 15.0 2 years 7.8 Bcf 5 years 11.3 Bcf MMcf/d 10 years 14.2 Bcf 10.0 EUR 20.0 Bcf 5.0 1.0 2.0 3.0 4.0…
Utica: Demonstrating Consistency & Repeatability Wells are highly prolific and consistent in terms of production and pressure profiles Rate vs Time Cumulative Production vs Time Managed choke program of 1.5 2.0 MMcf/d per 1000…
Confirmed World Class Shale Across Entire Position Focused acreage concentration allows for quick delineation and repeatable results. RICE has no stepouts. Porosity 1150 BTU 13% 0% 1050 BTU West End East End 10 Miles 123…
Midstream Assets 19 www.riceenergy.com
Strategic Midstream Assets in Appalachia Overview SYSTEM MAP Complete build-out of infrastructure by YE Legend RMP Gathering Pipeline 2015 RMP Gathering Pipeline to be Constructed Hancock 6.7 MMDth/d gathering capacity RICE…
Rice Midstream Partners MLP Overview Marcellus Gathering and Compression SYSTEM MAP Initial assets: PA gas gathering system of 4.1 Legend RMP Gathering Pipeline Beaver MMDth/d capacity by YE15 RMP Gathering Pipeline to be…
RICE Midstream Holdings Retained Midstream Overview Overview of Assets Assets include OH gas gathering and PA/OH Legend RICE Gathering Pipeline water sourcing and distribution RICE Gathering Pipeline to be Constructed Hancock RICE…
Finance and Marketing 23 www.riceenergy.com
Diverse Market Exposure FT portfolio includes 1.3 MMDth/d (1.2 Bcf/d) of firm capacity to premium North American markets, including recently added 320 MDth/d on TETCOs Access South project with firm path to the Gulf Coast and estimated…
Basis Exposure and Realized Pricing Basis Exposure and Basis Differential /MMBtu Expect Appalachian basis exposure 100% (M2 + DOM) to decrease throughout 90% 20% 16% 24% 24% the year as firm transportation projects 80% 39% 33%…
Hedging Summary Hedge & Basis Summary RICEs gas will be marketed into 4 areas Rem. (1) Appalachia (M2, Dominion) 2015 2016 2017 (2) TCO Hedged M2 / Dominion Volumes (BBtu/d) 140 92 10 (3) Gulf Coast (ELA, M1) Wtd Avg Floor Price…
RICE Hedging Detail We employ financial instruments (primarily swaps & costless collars) to mitigate commodity price risk Assures base level of cash flow to reinvest in growth Target hedging 50% of forecasted production up to two years…
RICE Market Snapshot Rice Energy Inc Rice Midstream Partners LP (NYSE: RICE) (NYSE: RMP) millions, except per share data, as of 06/01/15 millions, except per share data, as of 06/01/15 Common Units 29 Management Ownership 30%…
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 30 www.riceenergy.com
2015 RICE Guidance E&P GUIDANCE (1) Net Wells Spud Guidance Production Guidance (4) Pennsylvania 39 T otal Net Production (MMcfe/d) 470 490 Operated Utica(2) 13 % Natural gas 100 % Non-operated Utica 9 % Marcellus 78 % Ohio(2) 22 %…
2015 RMP Guidance 2015 GUIDANCE(1) 2015 Capital Budget (in millions) Guidance Gas Gathering 85 Adjusted EBITDA (in millions) 55 60 Compression 90 % Third Party 20% Total Expansion Capex 175 Distributable Cash Flow (in millions)…
Economic Assumptions Summary Marcellus W. Greene Utica Dry Utica Wet Type Well Assumptions Lateral Length 7,000 7,000 8,000 8,000 Net Locations IRR (adj midstream fees) IRR (full midstream fees) EUR (Bcf/1,000') 2.0 2.0 2.5 2.2 4…
Efficient Production Growth Demonstrates Production Potential Our peer-leading production growth is driven by a focus on well quality, not quantity RICE reached 500 MMcfe/d of gross operated Marcellus production with fewer wells than…
Differentiated Long-Term Production per Well Our drilling and completion techniques have yielded greater production profile per well than our peers Washington and Greene County Historical Production(1) Utica and Susquehanna, PA…
Post-MLP Organizational and Credit Structure Rice Energy Inc. 550MM Credit Facility NYSE: RICE DE Rice E&P Rice Midstream 300MM Credit Facility Subsidiaries Holdings LLC IDRs Rice Midstream & LP OH Gathering PA Water OH…
Midstream System Statistics Marcellus (PA) Utica (OH) Gathering and Compression Statistics Gathering and Compression Statistics YE14 YE15 YE14 YE15 Gathering and Compression Statistics Gas Gathering Pipeline Mileage (miles) 81 111 Gas…
1Q 2015 Adjusted EBITDA Reconciliation Three Months Ended ( in thousands) March 31, 2015 Adjusted EBITDAX reconciliation to net income (loss): Net income 4,687 Interest expense 16,129 Depreciation, depletion and amortization…
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