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 144,000 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…
Pennsylvania Utica Encouraging Early Results RICE Pennsylvania Utica Update Positive Pennsylvania Utica Tests John Briggs 50U was turned into sales on August RICE has deep 25th 3 months ahead of original schedule Range Test: Utica…
Appalachian Rigs at 6 Year Lows: Rice Remains Strong Appalachia Rig Counts(1): 2007 - 2015 August 2015: 70 Rigs Activity migrated to most economic counties Early 2012 200 Peak of 175 Rigs 180 160 140 August 2015 120 January…
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 6/30/15 MM 1,000 1B liquidity…
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 50 500 495 43 800 41 680 40 400 700 7…
Pennsylvania Assets 10 www.riceenergy.com
Strong Execution Drives Consistent Results Highlights Marcellus Development Map Concentrated core Marcellus assets in southwestern PA 95 net Marcellus wells producing at 2Q15 Avg. 2Q15 production 403 MMcfe/d Deep inventory of…
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 RICE 62% operated and 43% non-operated avg. WI in strategic JV with GPOR(1)…
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…
Consistent and Repeatable Utica Results in Ohio Geologic homogeneity yields strong wells with similar production and pressure profiles Rate vs Time Managed choke program contributing to flat production profile Managed choke…
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 RMP includes PA gathering assets Legend RMP Gathering Pipeline 2Q15 throughput of 655 MDth/d RMP Gathering Pipeline Hancock to be Constructed 15% 3rd Party RICE Ohio…
RMP: High Growth MLP in Prolific Appalachian Basin Marcellus Gathering and Compression SYSTEM MAP PA gas gathering system of 4.1 MMDth/d design Legend RMP Gathering Pipeline Beaver capacity RMP Gathering Pipeline to be…
RICE Midstream Holdings Retained Midstream Overview Overview of Assets Assets include OH gas gathering and PA/OH Legend RICE Ohio Gathering Pipeline water services RICE Ohio Gathering Pipeline to be Constructed Hancock RICE Water…
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 (M2/M3/DTI) to decrease throughout the year as firm transportation projects come online: REX (August 2015), Union…
Hedging Summary Hedge & Basis Summary Rem. RICEs gas will be marketed into 4 areas 2015 2016 2017 2018 (1) Appalachia (M2, M3, & Dominion) (2) TCO Hedged M2 / Dominion Volumes (BBtu/d) 132 137 110 75 Wtd Avg Floor Price (/MMBtu)…
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 65% 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 07/31/15 millions, except per share data, as of 07/31/15 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 Pennsylvania 39 Total Net Production (MMcfe/d)(3) 485 505 Operated Utica(2) 13 % Natural gas 100 % Non-operated Utica 9 % Marcellus 78 % (2) Ohio 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 NGL…
Efficient Production Growth Demonstrates Production Potential RICEs peer-leading production growth is driven by a focus on well quality, not quantity RICE reached 750 MMcfe/d of gross operated production with fewer wells than every…
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…
2Q 2015 Adjusted EBITDA Reconciliation Three Months Ended Six Months Ended ( in thousands) June 30, 2015 June 30, 2015 Adjusted EBITDAX reconciliation to net income (loss): Net loss (63,519) (58,831) Interest expense 23,359 39,488…
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