Rice Midstream Partners Third Quarter 2016 Supplemental Presentation November 2, 2016 1 www.ricemidstream.com
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 Washington Appalachian core Washington WEST VIRGINIA WEST VIRGINIA 100% of cash…
Vantage Energy Acquisition Expands Core Midstream Footprint Signed September 26, 2016 and closed October 19, 2016 Vantage Energy Inc. PA 132,000 effective dedicated acres OH Core acquisition adjacent to existing RMP infrastructure…
Third Quarter 2016 RMP Highlights Execution Drove Rapid Organic Growth Average daily throughput of 957 MDth/d, a 43% increase over 3Q15 Average compression volumes of 745 MDth/d, an 1,810% increase over 3Q15 Freshwater delivery…
RMP Third Quarter 2016 Financial Summary Solid third quarter results supported by strong throughput growth, well capitalized balance sheet and ample liquidity FINANCIAL SUMMARY DISTRIBUTIONS Third quarter average daily throughput of…
Building Track Record of Strong Organic Growth ADJUSTED EBITDA(1)(3) (MM) THROUGHPUT (MDTH/D) DROP DOWNS (MM) 125% Annual 145 45% Annual 957 950 1.3B Potential 1,300 934 Growth Growth 835 Future Drop Downs 647 64 600 391 42 38…
Prolific Assets and Strong Balance Sheet SUMMARY LEVERAGE(1)(2)(3)(4) Strong Balance Sheet: Targeting year-end 2016 3Q16 Net Debt / LTM Adj. EBITDAX YE2016E Net Debt / LTM Adj. EBITDAX…
2016 Updated Midstream Guidance RMH 2016 GUIDANCE We are unable to provide a projection of full-year 2016 Denotes Guidance Updates RMH net income, the most comparable financial measures to RMH Adjusted EBITDA, calculated in accordance…
30% of Appalachia Rigs Now Feeding Rice Midstream Systems RICE has positioned itself as the premier core dry gas midstream player in Appalachia Total Appalachia Rigs: 47 Core Rigs Feeding Rice Midstream Systems Non Core Rigs…
RMP Well Positioned for Strong Continued Growth Core Midstream Footprint and Prolific Organic Growth 201,000(1) acres dedicated from some of the most active operators in SW Appalachia; a 150% increase since IPO in Dec. 2014 Well…
RMP and RICE Market Snapshot Rice Midstream Partners LP Rice Energy Inc. (NYSE: RMP) (NYSE: RICE) millions, except per unit data millions, except per share data Common Units 73 Management Ownership (1) 14% Subordinated Units 29…
Appendix 13 www.ricemidstream.com
Acquisition Structure and Financing Overview KEY TRANSACTION DETAILS SOURCES AND USES RMP acquired Vantage Energy midstream assets from Purchase Price 600 RICE for 600MM Sources (MM) Uses (MM) RMP Private Placement 441 Acquisition…
Industry-Leading Throughput Growth 3Q 2016 throughput of 1,769 MDth/d through RMH and RMP midstream systems RMP System: 957 MDth/d (32% 3rd Party) RMH System: 812 MDth/d (61% 3rd Party) RMP AND RMH HISTORICAL THROUGHPUT Dth/d…
RMP 3rd Party Dedications from Top Operators in the Basin OVERVIEW PA OH High quality 3rd party operators with active development programs and healthy returns throughout commodity WV price cycle WEST VIRGINIA EQT and GPOR (primary…
Integrated Water Services Business WATER SERVICES OVERVIEW WATER SERVICES AGREEMENTS OVERVIEW Delivery systems provide fresh water to support Marcellus and Assumptions Pennsylvania Ohio Utica completion operations Fresh Water Usage…
Attractive Drop Down Potential Ohio Utica LARGE SCALE GATHERING SYSTEMS TO SUPPORT UTICA DEVELOPMENT PA OH 148,000 dedicated core gross acres in Belmont and Monroe Belmont 75% 3rd party acreage dedications WV Attractive drop down…
Third Quarter 2016 RICE Highlights Solid Third Quarter Results Net production of 747 MMcfe/d, a 23% increase over 3Q15 and 3Q16 exit rate of 800 MMcfe/d Net income of 91 million for the third quarter, a 40% increase over 3Q15 Adjusted…
Updated E&P and Midstream Guidance E&P E&P Capital Expenditures Net Wells Turned to Sales(1) Average Net Production MM Wells 61 MMcfe/d 1,210 1,200 60 1,400 1,318 175 51 50 1,200 1,000 44 27 830 12 1,000 800 740 735 40 7 790…
Attractive Single Well Economics RICE continues to drive down D&C and operating costs to maximize returns Inventory currently generates 110% returns at strip; HHUB PV10 breakevens of 1.90 HHUB(1) DRY GAS SINGLE WELL ECONOMICS 150%…
Third Quarter 2016 Operational Highlights MARCELLUS OPERATIONAL HIGHLIGHTS UTICA OPERATIONAL HIGHLIGHTS 3Q16 Marcellus development costs averaged 720 per Turned to sales 11 gross (7 net) Utica wells in 3Q16 lateral ft. Avg. lateral…
Healthy Balance Sheet Protected by Strong Hedge Book SUMMARY HEDGE SUMMARY Ample Liquidity: 1.6B of total liquidity(1)(2) consisting of 1.3B of E&P Hedged Volume NYMEX Avg. Wtd. Floor Price Total Avg. Wtd. Floor Price BBtu/d /MMBtu…
Meaningful Takeaway Capacity Expected to Outpace Supply Growth Appalachian Basin currently running 47 rigs which is roughly the maintenance level to keep current production flat at 22 Bcf/d 125 rigs needed through 2019 to fill…
Firm Transportation and Basis Exposure Cost of firm transportation must be factored into realized pricing comparisons across Appalachian peers RICEs balanced FT portfolio + hedging strategy protects short-term basis weakness. 15% of…
Basis Exposure & Realized Pricing PRICING COMMENTARY BASIS EXPOSURE Right-sized FT portfolio covers 100% 0.00 90% 17% 18% 21% 60% of 2017 takeaway volumes 29% (0.10) Basis Differential (/MMBtu) 80% 37% decreasing to 40% in 2020…
2016 Updated RICE Guidance Updating 2016 guidance to reflect acquisition of Vantage Energy RICE 2016 E&P GUIDANCE Denotes Guidance Updates Prior Updated Prior Updated Net Wells Spud Online Spud Online Total Net Production (MMcfe/d)…
RICE Third Quarter 2016 Consolidated Financial Summary Solid third quarter results supported by well-capitalized balance sheet and ample liquidity QUARTERLY HIGHLIGHTS CAPITALIZATION 79% of 3Q16 production sold to premium,…
Significant Unrealized Midstream Value Embedded Within RICE Track record of crystallizing midstream value Significant value creation on the horizon RMH Current and Future Value ( in millions) 2016E 2018E MM 3,000 Growth in value…
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 has begun to generate IDR cash flows to…
Non-GAAP Financial Measures Adjusted EBITDA, Distributable Cash Flow and DCF Coverage Ratio Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial…
RMP 3Q 2016 Adjusted EBITDA and DCF Reconciliation Three Months Ended Twelve Months Ended ( in thousands) September 30, 2016 September 30, 2016 Reconciliation of Net Income to Adjusted EBITDA and DCF: Net income 24,989 106,176…
RICE 3Q 2016 Adjusted EBITDAX Reconciliation Three Months Ended Twelve Months Ended ( in thousands) September 30, 2016 September 30, 2016 Adjusted EBITDAX reconciliation to net income (loss): Net income 91,078 (318,579) Interest…
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