RICE MIDSTREAM PARTNERS Capturing the Core: Transformative Acquisition of Vantage Energy Inc. September 26, 2016 1 www.riceenergy.com
Acquisition Summary Enhancing Core, Dry-Gas Position in Appalachia Transaction On September 26, 2016 Rice Energy and Rice Midstream Partners announced the acquisition of Vantage Energy for total consideration of PA OH 2.7 billion…
Strategic Acquisition Consistent with RICEs Strategy Core acquisition with organic upside potential Vantage Energy Inc. Increases RICEs acreage by 55%(1) 174,000 effective net acres 85,000 PA Marcellus(3) Increases Marcellus locations…
Proven Acreage with Consistent Results PA Marcellus Cumulative Production versus Time(2) Producing Marcellus Wells SW PA Vantages 72 producing Marcellus wells de- risk the acquired asset base 12,000,000 Consistent results indicate…
RICEs Proven Approach is Repeatable on the Acquired Assets Since IPO, RICE has efficiently developed and grown its core dry gas E&P and midstream assets By following the same playbook with the same team, RICE intends to replicate its…
Compelling Pro Forma Company Profile 2016E Production 720-740 MMcfe/d 35 MMcfe/d(1) 755-775 MMcfe/d 2017E Production 900-955 MMcfe/d 380-400 MMcfe/d 1,280-1,355 MMcfe/d 70%YoY Growth 560MM D&C 40MM D&C(1) 600MM D&C 2016E Upstream…
Rice Energy Unique Combination of Size, Growth and Returns Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 7B Enterprise Value 50% 2017E Growth 225,000 Core Dry Acres 1,000 Core Dry…
Acquisition Structure and Financing Overview KEY TRANSACTION DETAILS PRO FORMA CAPITALIZATION 2.7B consideration privately negotiated with Vantage consisting of 1.72B (MM) June 30, 2016 Adjusted PF 6/30/16 cash and 980MM RICE equity…
Acquisition Expands Core Midstream Footprint Vantage Energy Inc. Core Acquisition Adjacent to Existing RMP Infrastructure OH PA 132,000 effective dedicated acres 80,000 PA Marcellus(1) Highly complementary to existing infrastructure…
Rice Midstream Partners Pro Forma Midstream Guidance 2017E Throughput 900-950 MDth/d 370-390 MDth/d 1,270-1,340 MDth/d 2017E Water Volumes 900-1,000MM gallons 175-225MM gallons 1,075-1,225MM gallons 2017E EBITDA(1) 135-145MM…
Pro Forma Midstream Guidance EBITDA(1) (MM) THROUGHPUT (MDTH/D) Increasing 2016 throughput to 935 MDth/d representing 45% 120% Annual 135 - 145 45% Annual 934 935 annual growth from 2015 Growth Growth 835 Increasing 2016E EBITDA to…
Rice Midstream Partners Premier Appalachian MLP Peer 1 Peer 2 Peer 3 Peer 4 20%+ 2017E Distribution Growth 1.3x 2017E…
Acquisition Structure and Financing Overview KEY TRANSACTION DETAILS SOURCES AND USES RMP will acquire midstream assets from RICE for Purchase Price 600 600MM Sources (MM) Uses (MM) RMP Units/Financing Proceeds 250 Acquisition of…
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…
Appendix 16 www.riceenergy.com
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%…
Pro Forma Hedging Summary RICE acquires Vantages Dominion and Waha hedges HEDGE SUMMARY 4Q16 2017 2018 2019 2020 4Q16: 99 MDth/d of swaps at average floor of 2.45(1) 2017: 257 MDth/d of swaps at average floor of 2.44 Hedged M2 /…
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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