Investor Presentation February 2017 1 www.riceenergy.com
RICE Adjusted EBITDAX Reconciliation Twelve Months Ended Twelve Months Ended Twelve Months Ended Three Months Ended ( in thousands) December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2016 Adjusted EBITDAX…
RMP Adjusted EBITDA and DCF Reconciliation Three Months Ended Twelve Months Ended Twelve Months Ended ( in thousands) December 31, 2016 December 31, 2016 December 31, 2015 Reconciliation of Net Income to Adjusted EBITDA and DCF: Net…
RMH Adjusted EBITDA Reconciliation Twelve Months Ended ( in thousands) December 31, 2016 Reconciliation of Operating Income to Adjusted EBITDA: Operating Income 13,609 Incentive unit expense 2,335 Acquisition expense 484…
PV-10 Reconciliation PV-10 is a supplemental non-GAAP financial measure and generally differs from standardized measure, the most directly comparable GAAP financial measure, because it does not include the effects of income taxes on…
Corporate Strategy Invest in the Core Protect Returns through Firm Transport & Hedging Maintain a Strong, Conservative Balance Sheet Add Value through Midstream Drive Excellence through Innovation and Stewardship Create…
Rice Energy Overview Ticker Symbol NYSE: RICE Headquarters Canonsburg, PA Founded 2007 IPO date January 2014 Market cap(1) 5.1B Rice Midstream Enterprise value(1) 6.6B RICE E&P Holdings LLC Full-time employees 475 Employee…
Two Streams of Low-Risk, Economic Growth RICE UPSTREAM (E&P) Production (MMcfe/d) Net Acres (000s) RICE is a technical leader in developing unconventional resource plays 831 248 Top 20 producer of US natural gas; reached 1 Bcfe/d…
The Premier Appalachian Energy Company UPSTREAM (E&P) PA OH 248,000 acres in the Marcellus and Utica cores WV Belmont, Washington and Greene Counties in PA and OH 1,100 locations with 95% IRRs(1) 2017E net production = 1.3…
2016 Results and 2017 Guidance 12 www.riceenergy.com
Ad(Vantage) RICE: A Track Record of Doing What We Say Well Do 2014 (IPO) 2015 2016(1) Net Production Beat 274 552 831 5% (MMcfe/d) Guidance E&P Opex 1.00 0.98 1.07 3% (/Mcfe) E&P Capex 740 686 830 7% (MM) Net Acres Added…
2017 Guidance: Core Investments, High Growth and Low Leverage Budget (MM) Funding (%)(3) E&P - 1,035MM D&C Budget 1,035 150 Non-Op Utica 1,290 1,355 net production (93% Operated 30% Cash Appalachia, 60% reported YoY growth, 45% 300…
2017 Detailed Guidance E&P Guidance RMH Guidance(1) Net Wells Spud Online Net Production (MMcfe/d) 2017 Capi tal Budget ( i n mi l l i ons) Operated Marcellus 75 55 Appalachia 1,205 - 1,265 Gas Gathering and Compression 315 Operated Ohio…
E&P 16 www.riceenergy.com
100% Core E&P Portfolio in Appalachia with Consistent, Attractive Returns Net Locations and IRRs (1)(2) PENNSYLVANIA 1,200 1,102 90% 1,000 92% 861 85% OHIO 800 72% 60% 600 Utica 400 30% 63,000 net acres 19% 194…
Achieving Shale Scale With 100% Core Appalachia Acreage Large, concentrated core acreage position in Appalachia Well Results Heat Map 100% of RICE inventory in the Appalachian core v. peers ( Revenue/Well/Year) average of only 60% core…
Well Results Driven by Being a Technical Leader Drilling 10,000 Lateral Length (ft.) Lateral Placement Pioneered lateral targeting proficiency in the Marcellus 8,000 in 2011 using rotary steerable tools Every RICE operated well is…
Proven, Repeatable Well Design Drives Industry-Leading Results RICEs industry-leading well results are evident in 1-4 year cumulative production per well 100% of RICEs expected future Appalachian activity is focused within its…
Track Record of Low-Cost Growth MARCELLUS D&C COSTS (/FT.)(1) UTICA D&C COSTS (/FT.)(1) 2,590 1,270 1,220 1,715 800 875 1,205 1,235 2014 2015 2016 2017E 2014 2015 2016 2017E NET WELLS TURNED TO SALES AND LATERAL LENGTHS(2)…
Highly Visible Production and Cash Flow Growth Table is set for projected RICE production growth to 2 Bcfe/d and peer-leading cash flow per share growth 60% volume hedged through 2019E production providing downside protection VISIBLE…
Significant Cost Structure Improvements and Still Declining Lowest cost structure in the peer group with expected improvement from increased scale RICE CONSOLIDATED OPERATING COSTS (/MCFE) 2017E COST STRUCTURE VS. PEERS (/MCFE) Cost…
Midstream 24 www.riceenergy.com
RMH - Ohio Gathering: Core System with High Growth in the Utica Legend RICE Acreage Significant RMH EBITDA(1) Growth (MM) Belmont OH Gathering (2) Pipeline 100 Strike Force JV AMI GPOR Dedicated to RICE RICE Acreage…
RMH - GP Holdings: Rapid Cash Flow Growth RMH owns 26% of RMP LP units outstanding and 91.75% of IDRs RMPs expected 20% distribution growth drives a 5x / 50% CAGR in GP Holdings cash flow in 5 years One of the only E&P companies in the…
RMP: Core System and Execution Drives High Distribution Growth PA OH Significant RMP EBITDA Growth(1) (MM) WV Washington 193 Belmont Water 43 Greene Gathering & Compression Legend 150 RICE Acreage RMP Gathering RMP Water…
Unparalleled Midstream Growth RICE has positioned itself as the premier Appalachian core dry gas midstream player 4Q 2016 throughput of 2,108 MDth/d through RMH and RMP midstream systems RMP System: 1,203 MDth/d (24% 3rd Party) RMH…
Significant Unrealized Midstream Value Embedded Within RICE ( in millions) IDRs Estimated Distributions (Avg '17-'19)(1) 27 Multiple 25.0x 35.0x Esti mated Di stri bu ti ons (Avg '17-'19) 675 - 950 LP Uni ts Estimated…
Financial and Strategic Position 30 www.riceenergy.com
Healthy Balance Sheet Protected by Strong Hedge Book LOW LEVERAGE(1) HEDGE SUMMARY Strong balance sheet across enterprise 90% of 2017E production hedged at 3.24/MMBtu NYMEX Expect to exit 2017 at 2.0x consolidated leverage vs. peer…
Meaningful Takeaway Capacity Expected to Outpace Supply Growth Expect 18 Bcf/d incremental takeaway capacity in-service by January 2020 to provide significant improvement in 2018+ local pricing 10 Bcf/d of expected takeaway received…
RICE Trades at a Discount to Peers Despite Most Attractive Attributes RICE trades at a discount to peers despite core assets, high growth, low leverage and significant midstream value Financially positioned like a large cap peer, but…
Economic Assumptions: Improved Cost Structure and Lateral Lengths Feb 16 Feb 17 % Change 487 Marcellus / 215 Utica 861 Marcellus / 241 Utica Net Locations 57% 702 Total 1,102 Total 7,000 Marcellus 8,000 Marcellus 14% Lateral…
Stock Performance Track Record: Top Performing Since IPO 100% core E&P and midstream assets + differentiated execution and strategy drive outperformance 80% 60% Outperformed 2nd peer by 35% and median by 60% 40% 20% RICE…
The Premier Appalachian Energy Company 100% of Leasehold in Core of Marcellus and Utica Differentiated Technical Approach Has Led to Industry Leading Well Results High Returning Wells Driving Rapid Production Growth Significant…
Appendix 37 www.riceenergy.com
RICE and RMP Market Snapshot Rice Energy Inc. Rice Midstream Partners LP (NYSE: RICE) (NYSE: RMP) ( millions, except per share data) ( millions, except per unit data) Employee Ownership 18% Common Units 73 Subordinated Units 29…
RICE and RMP Organizational Structure EIG Managed Funds 1.45B E&P Borrowing Base 100% Series B Preferred Equity (375MM invested) Rice Midstream DE 300MM Credit Facility + Rice E&P Holdings LLC 100MM Accordion Feature 8.25%…
2017 D&C Budget Maintains Strong Balance Sheet while Investing in 2018 2017 budget and guidance: 2017 Budget Build pads, and drill Capex: 1,035MM and complete wells to be turned to sales in 2018+ Production: 1.29 1.36 Bcfe/d 400MM…
Meaningful Value Derived from Developed Drilling Locations PROVED RESERVES (BCFE) PV-10(1) (MM) 3,231 Proved Undeveloped Proved Undeveloped 4,005 Proved Developed Proved Developed 1,019 1,827 1,744 1,568 1,700 600 1,181 269…
Diverse Market Exposure Provides Takeaway Capacity to Multiple Markets Appalachia takeaway commitments provides to access various markets in North America TAKEAWAY PORTFOLIO EXPECTED TAKEAWAY CAPACITY (MDTH/D) 4,000 Canada (MDth/d)…
Basis Exposure & Realized Pricing PRICING COMMENTARY EXPECTED BASIS EXPOSURE FT portfolio covers 60% of 2017E takeaway volumes, decreasing to 40% in 2020E 42% 42% 47% 47% 48% 53% 93% of 2017E gas is either transported out of basin…
Firm Transportation and Basis Exposure Cost of firm transportation must be factored into realized pricing comparisons across Appalachian peers 2018 strip basis has tightened 0.30 since October 2016, highlighting the value of RICEs…
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 PV-10 breakevens of 1.75 HHUB(1) DRY GAS SINGLE WELL ECONOMICS…
Marcellus and Utica Single Well Type Curves MARCELLUS SINGLE WELL TYPE CURVE 12.0 Restricted Rate Marcellus EUR (Bcf/1,000') 2.16 10.0 Lateral Length 8,000 EUR (Bcf) 17.3 8.0 Interwell Spacing 750 MMcf/d Choke (MMcf/d per…
Economics PV10 & IRRS(1)(3) ECONOMIC ASSUMPTIONS Marcellus Utica Dry Utica Wet Economics Adjusted for Gathering Ownership at 3.00 HHUB & 27/bbl NGLs Type Well Assumptions Spacing 750 1,000 1,000 100% 12.0 Lateral Length 8,000 9,000…
Hedging Summary RICEs gas will be marketed into 4 areas (1) Gulf Coast (ELA, M1) (2) TCO (3) Midwest (Chicago, Dawn) (4) Appalachia (M2, M3, & Dominion) 60% of expected first quarter 2017 production transported out of…
Fourth Quarter 2016 RICE Highlights Solid Fourth Quarter Results 1,145 Net loss of 205MM, a 50% increase over 4Q15 Adjusted EBITDAX(1) of 202MM, a 53% increase over 4Q15 D&C well costs in the Marcellus and Utica to 775 and 1,100…
Fourth Quarter & Full-Year 2016 Operational Highlights MARCELLUS OPERATIONAL HIGHLIGHTS UTICA OPERATIONAL HIGHLIGHTS Turned to sales 18 gross (18 net) Marcellus wells in 4Q16 4Q16 Utica development costs averaged 1,100 per lateral ft.…
RICE Fourth Quarter 2016 Consolidated Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity QUARTERLY HIGHLIGHTS CAPITALIZATION Three Months Ended 4Q16 production of 1,145…
Water Business Complementary to Core Gathering & Compression Business 1. Source freshwater 3. Provide freshwater 4. Recycle produced from rivers and other 2. Pump freshwater services to pads for water onsite and/or local sources in…
Integrated Water Services Business Providing fresh water to support Marcellus and Utica WATER SERVICES AGREEMENTS OVERVIEW completion operations Assumptions Pennsylvania Ohio Fresh Water Usage (MMGal/well)(1) 13 19 Access to 36…
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