Rice Midstream Partners Investor Presentation February 2016 1 www.riceenergy.com
Recent Company Updates Q4 and FY 2015 Results Slide 4 2016 Guidance Slide 6 Attractive Drop Down Potential Slide 12 Integrated Water Services Business Acquisition Slide 14 Western Greene County Midstream Update Slide 15…
RMP Investment Highlights 100% of RMP acreage dedications are located within the dry gas core of the Marcellus Shale and Utica Shales Strategically Located RICEs concentrated dry gas core position + multi-well pad drilling = minimal RMP…
RMP Fourth Quarter 2015 Highlights Fourth quarter average daily throughput of 703 MDth/d EXECUTION IS DRIVING Increased acreage dedication in PA from RICE by 19,000 gross acres to 93,000 acres RAPID ORGANIC GROWTH Increased…
RMP Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by strong throughput growth, well capitalized balance sheet and ample liquidity FINANCIAL SUMMARY DISTRIBUTIONS Fourth quarter average daily throughput of…
RMP Financial Overview CAPITALIZATION AND LIQUIDITY AT 12/31/15 2016 GUIDANCE(1) in millions, except per share data, as of 12/31/15 Guidance Common Units 42 Capital Expenditure (MM) Subordinated Units 29 Gas Gathering and Compression…
RICE and RMP Organizational Structure 750MM Credit Facility EIG Managed Funds 100% Series A Common Equity 100% Series B Preferred Equity DE (375MM invested) Rice Midstream 300MM Credit Facility + 8.25% common Holdings LLC 100MM…
RMP: High Growth MLP in Prolific Appalachian Basin Legend RMP Gathering Pipeline RMP OVERVIEW 2016 GUIDANCE(1) RMP Gathering Pipeline to be Constructed Beaver OH PA RMP Water Pipeline PA gas gathering system of 2016E EBITDA of…
RMP Gathering and Water System Build-out RMPs midstream system has grown significantly since 2013 SUMMARY 2012 2013 PA gathering system oversized to accommodate future growth and emerging PA Utica potential Mileage: 128 miles by…
RMP 3rd Party Dedications from Top Operators in the Basin OVERVIEW SYSTEM MAP High quality 3rd party operators with active development Legend programs RMP Gathering Pipeline RMP Gathering Pipeline PA to be Constructed Beaver OH…
Industry-Leading Throughput Growth 4Q 2015 throughput of 1,027 MDth/d through RICE and RMP midstream systems (25% 3rd Party) RMP System: 703 MDth/d (18% 3rd Party) RICE OH System: 323 MDth/d (40% 3rd Party) RMP AND RICE OH MIDSTREAM…
Attractive Drop Down Potential OH Gathering Legend RMH OVERVIEW 2016 GUIDANCE(1) RICE Ohio Gathering Pipeline RICE Ohio Gathering Pipeline to be Constructed OH gas gathering system of over 2016E EBITDA of 40MM - Strike Force JV AMI…
Attractive Drop Down Potential Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE RICE and GPOR completed the formation of Utica Shale Strike Force strengthens Rices leading midstream position in the strategic midstream JV…
Acquisition Assets Integrated Water Services Business WATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP Delivers fresh water to well pads for completions Beaver Carroll Allegheny Collects, recycles or disposes of flowback…
Western Greene County Midstream Update RICE has renegotiated its gathering agreement with Williams, allowing RMP to provide gas gathering services for RICE in western Greene County, PA Development area located in western Greene County,…
2015 Midstream System Statistics Pennsylvania Ohio Gathering and Compression Statistics Gathering and Compression Statistics RMP Design Gathering Capacity (MMDth/d) 4.0 Design Gathering Capacity (MMDth/d) 2.0 Assets YE15 YE16 YE15…
RICE Overview 17 www.riceenergy.com
Concentrated Core Upstream Assets Premier E&P Company in the Lowest Cost Gas Shale Plays 100% of assets located in the cores of the Marcellus and Utica Valuable production base of 624 MMcfe/d (1.2bn PD + Hedge PV10)(2) Low breakevens…
Track Record of Low-Cost Growth MARCELLUS D&C COSTS (/FT) UTICA D&C COSTS (/FT) PER UNIT CASH COSTS (/MCFE) (1) 1,439 1.80 2,457 1,237 0.44 1.50 1,181 1,150 1.34 1,651 0.43 1,450 0.38 0.34 0.38 0.38 0.55 0.38 0.36 0.43 0.31…
Well Positioned to Navigate Environment 2016 budget positions RICE for success in 2016 and beyond Focused on balance sheet and E&P returns while creating significant future midstream value 2016 D&C budget maintains clean balance sheet…
Healthy Balance Sheet Protected by Strong Hedge Book SUMMARY HEDGE SUMMARY Ample Liquidity: 1.4B of total liquidity YE15(1) consisting of BBtu/d Hedged Volume Avg. Wtd. Fixed Price HHUB Strip /MMBtu 1.1bn of E&P liquidity and 300MM of…
Strategic Preferred Investment 375MM equity investment fortifies balance sheet and illuminates significant embedded midstream value Transaction Highlights Attractive cost of capital attributable to RMHs midstream assets and future GP…
Attractive Single Well Economics Rice continues to drive down D&C and operating costs to maximize returns Inventory currently generates 30% returns at strip(1); HHUB PV10 breakevens of 2.08-2.18 HHUB DRY GAS SINGLE WELL ECONOMICS IRR…
Right-Sized Firm Transport Portfolio Growing Exposure to an Improving Local Basis Market Right-Sized: FT covers 80% of 2016 takeaway volumes. FT coverage decreases to 60% in 2020. Right Exposure: 30% of 2016 gas exposed to local…
2016 Guidance 2016E E&P GUIDANCE(1) D&C & Land Capital Expenditures Net Wells Turned to Sales(2) Average Net Daily Production MM Wells 54 MMcfe/d 830 49 800 900 50 720 800 740 43 700 12 700 115 640 40 7 27 600 552 545 250 600 80…
Appendix 26 www.riceenergy.com
RICE Fourth Quarter 2015 Highlights Initiated production from 6 Marcellus wells; 5 wells ahead of schedule EXECUTION IS DRIVING Average lateral length of 7,500 ft. Increased proved reserves 30% to 1.7 Tcfe INDUSTRYLEADING GROWTH 4Q15…
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity QUARTERLY HIGHLIGHTS CAPITALIZATION AT 12/31/2015(1) ( in millions) 12/31/2015 Net production…
2016 Detailed Guidance RICE 2016 GUIDANCE(1) RMP 2016 GUIDANCE(1) Guidance Guidance Guidance Net Wells Spud Online Total Net Production (MMcfe/d) 700 - 740 2016 Capital Budget ( in millions) Operated Marcellus 25 27 % Natural gas 100 %…
Water Services Business Drop Down Summary TRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS RMP acquired Rice Energys water business for 200 million in Immediately accretive to distributable cash flow per unit November 2015 25 million earn…
Asset Quality Industry High Grading to Quality RICEs footprint is located in the epicenter of remaining activity in Appalachia due to best in class economics Appalachia Rig Counts(1): 2007 - 2016 February 2016: 43 Rigs 200 Early 2012…
Pennsylvania Utica: A Natural Extension for Rice The Utica core extends directly underneath RICEs Pennsylvania assets. Initial RICE and Industry wells point to massive resource potential. OH WV PA Guernsey Belmont Marshall Washington /…
Ohio Q3 2015 Production Summary Top 100 Wells RICE & GPOR: Strong Partnership Demonstrated by Top-Tier Well Results 1,088 Utica Shale wells producing in Q3 2015(1) - RICE & GPOR partnership takes top 21 wells (300 MMcfe/d avg.) Quality…
Differentiated Long-Term Production per Well Our drilling and completion techniques have yielded greater production profile per well than our peers WASHINGTON & GREENE COUNTY HISTORICAL PRODUCTION(1) UTICA & SUSQUEHANNA, PA HISTORICAL…
Most Efficient Growth in Appalachia RICEs peer-leading production growth is driven by a focus on well quality, not quantity RICE reached over 850 MMcfe/d of gross operated production with fewer wells than every other operator(1) in…
RICE and RMP Market Snapshot Rice Midstream Partners LP Rice Energy Inc. (NYSE: RMP) (NYSE: RICE) millions, except per unit data, as of 2/23/2016 millions, except per share data, as of 2/23/2016 Common Units 42 Management Ownership…
Diverse Market Exposure FT portfolio includes 1.3 MMDth/d (1.2 Bcf/d) of firm capacity to premium North American markets(1) CANADA (MDTH/D) Canadian 2016 2017 2018 Markets 25 42 125 Appalachian Markets MIDWEST (MDTH/D) NORTHEAST…
Basis Exposure & Realized Pricing PRICING COMMENTARY BASIS EXPOSURE HHUB is increasingly challenged 100% - 90% 22% (0.05) Rice is 87% hedged in 2016; 50%+ 26% 31% 80% 36% 38% 33% (0.10) in 2017 70% 18% 17% (0.15) 14% 9%…
Hedging Summary HEDGE SUMMARY 2016 2017 2018 2019 RICEs gas will be marketed into 4 areas Hedged M2 / Dominion Volumes (BBtu/d) 189 163 165 150 (1) Gulf Coast (ELA, M1) Wtd Avg Floor Price (/MMBtu) 2.35 2.20 2.50 2.48 % of Basis…
Marcellus Type Curve Updated MARCELLUS SINGLE WELL TYPE CURVE 14.0 Restricted Rate Cumulative Production 12.0 Current Prior Var. 1 Year 3.4 3.8 (0.5) 10.0 2 Year 5.2 5.6 (0.5) MMcf/d 8.0 5 Year 8.1 8.2 (0.2) 10 Year 10.6 10.3…
Utica Type Curve Updated UTICA SINGLE WELL TYPE CURVE 20.0 Restricted Rate Cumulative Production Choke management extends flat Current Prior Var. time from 9 months to 12 months. 1 Year 5.8 5.2 0.6 15.0 Incorporated historical…
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation Three Months Ended Year Ended ( in thousands) December 31, 2015 December 31, 2015 Adjusted EBITDA reconciliation to loss from continuing operations: Net income 12,521 52,495 Interest…
RICE 4Q 2015 Adjusted EBITDAX Reconciliation Three Months Ended Year Ended ( in thousands) December 31, 2015 December 31, 2015 Adjusted EBITDAX reconciliation to net income (loss): Net income (274,253) (267,999) Interest expense…
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation Three Months Ended Year Ended ( in thousands) December 31, 2015 December 31, 2015 Further Adjusted EBITDAX reconciliation: Adjusted EBITDAX 132,153 431,510 Non-controlling…
Disclaimer FORWARD-LOOKING STATEMENTS This presentation and the oral statements made in connection therewith may contain forward looking statements within the meaning of the securities laws. All statements, other than statements of…
Additional Disclosures Determination of Identified Drilling Locations as of December 31, 2015: Net undeveloped locations are calculated by taking RICEs total net acreage and multiplying such amount by a risking factor which is then…
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