SunTrust Robinson Humphrey 2016 Appalachian Mini-Conference August 23, 2016
Rice Energy Strategy Allocate 100% of Capital to Core Assets with Attractive Returns Maintain a Strong Balance Sheet Protect Returns and Balance Sheet through FT Portfolio and Systematic Hedging Strategically Position Midstream…
Company Overview: More Than Just an E&P Company NYSE: RICE NYSE: RMP Upstream Rice Midstream Holdings GP Holdings Rice Midstream Partners Marcellus + Utica Shale Development Ohio Gathering System RMP Units + IDRs Pennsylvania Gathering…
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 758 MMcfe/d (1.2B PD + Hedge PV10)(1) 95% single well…
Strategic Midstream Assets RICE MIDSTREAM HOLDINGS RICE MIDSTREAM PARTNERS (RMH) (RMP) OH PA 147,000 dedicated acres in the core 119,000 acres dedicated in core of WV of dry gas Utica dry gas Marcellus WEST VIRGINIA Washington…
Track Record of Low-Cost Growth MARCELLUS D&C COSTS (/FT.) UTICA D&C COSTS (/FT.) E&P PER UNIT CASH COSTS (/MCFE)(1) 1.80 1,507 2,588 0.44 1.50 1,269 1,218 1.34 1.23 0.43 1.13 1,715 0.38 0.34 0.23 850 0.22 1,275 0.38 0.38 0.40…
Attractive Single Well Economics RICE continues to drive down D&C and operating costs to maximize returns Inventory currently generates 95% returns at strip; HHUB PV10 breakevens of 1.90 HHUB(1) DRY GAS SINGLE WELL ECONOMICS 150%…
Healthy Balance Sheet Protected by Strong Hedge Book SUMMARY HEDGE SUMMARY Ample Liquidity: 1.4B of total liquidity(1) consisting of 1.1B of Hedged Volume Avg. Wtd. Floor Price BBtu/d 3.25 /MMBtu E&P liquidity and 300MM of RMH…
2016 Updated E&P and Midstream Guidance E&P (1) E&P Capital Expenditures Net Wells Turned to Sales(2) Average Net Production MM Wells MMcfe/d 830 60 800 60 730 800 740 51 700 700 660 50 115 44 26 600 250 12 552 600 545 100 40…
Well Positioned for Strong Continued Growth Financial Strength Healthy balance sheet, ample liquidity and robust hedges 2016 budget focused on balance sheet and E&P returns while creating significant future midstream value Healthy…
Asset Detail 11 www.riceenergy.com
Second Quarter 2016 Operational Highlights MARCELLUS OPERATIONAL HIGHLIGHTS UTICA OPERATIONAL HIGHLIGHTS Turned to sales 9 gross (9 net) Marcellus wells in 2Q16 Turned to sales 9 gross (6 net) Utica wells in 2Q16 Avg. lateral length of…
Differentiated Long-Term Production Differentiation of RICE wells is evident in 1-3 year cumulative production per well. 100% of RICE future activity is focused within our proven concentrated acreage positions in the Marcellus + Utica…
Executing the Most Efficient Program in Appalachia: 1 Bcf/d From 180 Wells Our unmatched efficiency is a byproduct of focusing on maximizing the value of every well we drill Gross Operated Production Gross Operated Production vs.…
Marcellus and Utica Single Well Type Curves MARCELLUS SINGLE WELL TYPE CURVE Restricted Rate Marcellus 12.0 EUR (Bcf / 1,000') 2.16 10.0 Lateral Length 7,000 EUR (Bcf) 15.1 8.0 Interwell Spacing (ft) 750 MMcf/d Choke (MMcf/d…
Appalachia Basin Takeaway Capacity 23 Bcf/d Incremental Appalachian Takeaway Capacity Projected By YE 2019 3 Bcf/d of proposed upgrade projects reversals or expansions of existing projects with minimal risk of delays 20 Bcf/d of…
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: 23% of 2016 gas exposed to local…
Why Invest in Rice 100% of Leasehold in Core of Marcellus and Utica Differentiated Technical Approach Has Led to Industry Leading Well Results Create Significant Midstream Value through RICE and 3rd Party Core Dedications Firm…
Appendix 19 www.riceenergy.com
RICE and RMP Organizational Structure 875MM Borrowing Base(1) 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…
RICE and RMP Market Snapshot Rice Energy Inc. (1) Rice Midstream Partners LP (1) (NYSE: RICE) (NYSE: RMP) millions, except per share data millions, except per unit data Management Ownership 25% Common Units 52 Subordinated Units 29…
Second Quarter 2016 RICE Highlights Strong Second Quarter Results Net production of 758 MMcfe/d; 43% increase over prior year quarter Net loss of 139 million for the second quarter; 118% decrease relative to prior year quarter…
RICE Second Quarter 2016 Consolidated Financial Summary Solid second quarter results supported by well-capitalized balance sheet and ample liquidity QUARTERLY HIGHLIGHTS CAPITALIZATION AT 6/30/2016 Three Months Ended 82% of 2Q16…
2016 Updated RICE Guidance Updating 2016 guidance to reflect recent results and expected performance for the rest of the year RICE 2016 E&P + RMH GUIDANCE Denotes Guidance Updates Prior Updated Prior Updated Net Wells Spud Online Spud…
2016 Updated RMP Guidance We are unable to provide a projection of full-year RMP 2016 GUIDANCE 2016 RMP net income and net cash provided by Denotes Guidance Updates operating activities, the most comparable financial Prior Updated…
Hedging Summary HEDGE SUMMARY 3Q16 4Q16 2017 2018 2019 2020 RICEs gas will be marketed into 4 areas Hedged M2 / Dominion Volumes (BBtu/d) 211 165 135 169 215 242 (1) Gulf Coast (ELA, M1) Wtd Avg Floor Price (/MMBtu) 2.29 2.31 2.17…
Basis Exposure & Realized Pricing PRICING COMMENTARY BASIS EXPOSURE Attractive FT Portfolio 2/3 of volumes receive favorable Basis Differential (/MMBtu) out of basin pricing through 2018 Basis Exposure Growing exposure to…
Diverse Market Exposure FT portfolio includes 1.2 MMDth/d (1.1 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…
Economics PV10 & IRRS (1) ECONOMIC ASSUMPTIONS Economics Adjusted for Gathering Ownership at 3.50 HHUB Marcellus Utica Dry Utica Wet and 27/bbl NGLs Type Well Assumptions 90% 16.0 Spacing 750 1,000 1,000 Lateral Length 7,000 9,000…
Meaningful Value Derived from Developed Drilling Locations 156 net proved developed wells + hedge value are worth 9 / share at strip pricing(1), with 800 net undeveloped Marcellus & Utica locations remaining to drive future growth in…
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 Count Aug 2016: 37 Rigs 200 Early 2012 180 Peak of 175…
Ohio Q1 2016 Production Summary Top 100 Wells RICEs Top-Tier Well Results and Midstream Footprint Located in Prolific Appalachian Core 1,300 Utica Shale wells producing in 1Q16(1) RICE upstream & midstream assets positioned in the core…
RMP: High Growth MLP in Prolific Appalachian Basin COMPANY OVERVIEW Top-tier gathering, compression PA PA OH OH and water services assets in WV WV Appalachian core WEST VIRGINIA Washington WEST VIRGINIA Washington 100% of cash…
Integrated Water Services Business MIDSTREAM FRESH WATER SERVICES Fresh water distribution systems & related facilities servicing PA Marcellus and Utica completion operations in PA and OH OH Access to 22 MMgal/d of fresh water WV…
Attractive Drop Down Potential Ohio Utica LARGE SCALE GATHERING SYSTEMS TO SUPPORT UTICA DEVELOPMENT PA OH 147,000 dedicated core gross acres in Belmont and Monroe Belmont 75% 3rd party acreage dedications WV Attractive drop down…
Significant Unrealized Midstream Value Embedded Within RICE Track record of crystallizing midstream value Significant value creation on the horizon 1B of midstream monetizations and financings executed to date(1) MM RMH Current and…
GP Holdings Value Driven through the Drill-Bit RICEs best-in-class E&P development plus a growing 3rd party midstream business positions RMP for top-tier distribution growth RMPs low-risk growth begins to generate IDR cash flows to RICE…
Midstream System Statistics Pennsylvania Ohio RMP Gathering and Compression Statistics Gathering and Compression Statistics Assets Design Gathering Capacity (MMDth/d) 4.0 Design Gathering Capacity (MMDth/d) 2.0 YE15 YE16 YE15 YE16…
RICE 2Q 2016 Adjusted EBITDAX Reconciliation Three Months Ended ( in thousands) June 30, 2016 Adjusted EBITDAX reconciliation to net income (loss): Net loss (138,709) Interest expense 24,802 Depreciation, depletion and amortization…
RMP 2Q 2016 Adjusted EBITDA and DCF Reconciliation Three Months Ended ( in thousands) June 30, 2016 Reconciliation of Net Income to Adjusted EBITDA and DCF: Net income 27,936 Interest expense 920 Depreciation expense 6,855…
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