Third Quarter 2015 Supplemental Slides November 5, 2015
Concentrated, Core Assets COMPANY TOTAL CORE ASSETS Highly concentrated position of 147,000 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 Utica Test Well Update: Briggs 50U Pennsylvania Utica wells showing same long-term pressure decline profile as RICE Belmont County wells and demonstrating similar high quality reservoir characteristics RICE - Briggs 50U: Flowback +…
RICE Third Quarter 2015 Highlights Initiated production from 14 Marcellus wells; 8 wells ahead of schedule EXECUTION IS DRIVING Average lateral length of 6,940 ft. & avg. cost of 1,029 per lateral foot 1st PA Utica well turned to sales…
RICE Third Quarter 2015 Financial Summary Solid third quarter results supported by well-capitalized balance sheet and ample liquidity FINANCIAL SUMMARY FINANCIAL & OPERATING STATISTICS 3Q15 net production of 609 MMcfe/d; 15% increase…
Strong Balance Sheet with Stable and Predictable Cash Flows RICE is capable of funding 100% of 2015 capital plan with liquidity on-hand Favorable credit metrics & covenants ensure flexibility CASH & REVOLVER CAPACITY 9/30/15 MM…
Efficient Capital Allocation Drives Strong 2015 Growth 2015E UPDATED E&P GUIDANCE(1) D&C & Land Capital Expenditures Net Wells Turned to Sales(2) Average Net Daily Production MM Wells MMcfe/d 520 900 830 50 46 500 43 800 730 700 40 7…
2015 Updated RICE Guidance E&P GUIDANCE(1) Net Wells Spud Guidance Production Guidance Pennsylvania 41 Total Net Production (MMcfe/d) 515 525 (2) Operated Utica 20 % Natural gas 100 % Non-operated Utica 9 % Marcellus 75 % (2)…
Strong Execution Drives Consistent Results PENNSYLVANIA OPERATIONAL HIGHLIGHTS OHIO OPERATIONAL HIGHLIGHTS Concentrated core Marcellus assets in southwestern PA Concentrated core Utica assets in southeastern OH 114 net Marcellus wells…
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…
Basis Exposure and Realized Pricing BASIS EXPOSURE AND BASIS DIFFERENTIAL 100% -/MMBtu Expect Appalachian basis exposure 13% (M2/M3/DTI) to decrease throughout 90% 24% 30% 23% (0.05) the year as firm transportation projects 80%…
Hedging Summary Hedge & Basis Summary RICEs gas will be marketed into 4 areas 4Q 2015 2016 2017 2018 2019 (1) Appalachia (M2, M3, & Dominion) Hedged M2 / Dominion Volumes (BBtu/d) 107 137 148 155 140 (2) TCO Wtd Avg Floor Price…
Strategic Midstream Assets in Appalachia OVERVIEW SYSTEM MAP RMP includes PA gathering & compression assets and PA & OH water services business Utica Fairway OH PENNSYLVANIA 3Q15 throughput of 671 MDth/d (17% 3rd PA Marcellus…
Water Services Business Drop Down Summary TRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS RMP is acquiring Rice Energys water business for consideration of 200 Immediately accretive to distributable cash flow per unit & RMP million at…
Attractive Drop Down Potential Strategic GPOR JV TRANSACTION OVERVIEW STRATEGIC RATIONALE RICE and GPOR executed a non-binding LOI to form midstream JV strengthens Rices leading midstream position in the core of JV to provide gas…
RICE and RMP Market Snapshot Rice Energy Inc. Rice Midstream Partners LP (NYSE: RICE) (NYSE: RMP) millions, except per share data, as of 11/4/15 millions, except per unit data, as of 11/4/15 Management Ownership 30% Common Units(1)…
Appendix 17 www.riceenergy.com
RICE and RMP Organizational Structure RICE owns 100% of the GP and IDRs and a 41% LP ownership, creating alignment between RMP and RICE 750MM Credit Facility Rice Midstream DE 300MM Credit Facility + Holdings LLC 100MM…
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% 20-30% Returns at Strip Pricing 168%…
Industry Activity Concentrated in the Core RICEs assets are located in three of the four most active counties in Appalachia Appalachia Rig Counts(1): 2007 - 2015 October 2015: 66 Rigs Activity migrated to most economic counties 200…
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…
Efficient Production Growth Demonstrates Production Potential RICEs peer-leading production growth is driven by a focus on well quality, not quantity RICE reached over 800 MMcfe/d of gross operated production with fewer wells than…
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 3Q 2015 Adjusted EBITDAX Reconciliation Three Months Ended Nine Months Ended ( in thousands) September 30, 2015 September 30, 2015 Adjusted EBITDAX reconciliation to net income (loss): Net income 65,084 6,254 Interest expense…
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