Investor Presentation May 2017 1 www.riceenergy.com
Non-GAAP Financial Measures Rice Energy Adjusted EBITDAX and Further Adjusted EBITDAX Adjusted EBITDAX and Further Adjusted EBITDAX are supplemental non-GAAP financial measures that are used by management and external users of RICEs…
Non-GAAP Reconciliations RICE Adjusted EBITDAX Reconciliation RMH Adjusted EBITDA Reconciliation Three Months Ended Twelve Months Ended Three Months Ended Twelve Months Ended ( in thousands) March 31, 2017 March 31, 2017 ( in…
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 NYSE: RICE IPO date January 2014 Market cap(1) 5.4B Rice Midstream Enterprise value(1) 6.9B RICE E&P Holdings LLC (RMH) Full-time employees…
Strong Ownership Culture With Aligned Interests Peer leading management ownership drives alignment with shareholders Ownership culture permeates the company 100% of employees receive stock compensation 92% RICE GP ownership supports…
The Premier Appalachian Energy Company Low-risk, economic growth throughout the commodity price cycle RICE UPSTREAM RICE MIDSTREAM (E&P) (RMH + RMP) 252,000 core acres in Marcellus and Marcellus Core dry gas dedication: 381,000…
Upstream: 2017 2019 D&C Capital and Production Outlook Targeting Appalachia net production CAGR(1) of 27% - 33% in 2017 2019 Targeting cash flow neutrality(2) in 2019, while maintaining E&P…
Midstream: Differentiated Value Proposition RICEs midstream has operational and financial advantages which creates significant shareholder value Greater than 3B of projected midstream value Operational Advantages Midstream control…
Highly Visible Cash Flow Growth and Strong Balance Sheet Table is set for projected RICE production growth to 2 Bcfe/d and peer-leading cash flow per share growth RICE E&P leverage well below peer average of 2.4x and consistent with…
E&P 12 www.riceenergy.com
100% Core E&P Appalachia Portfolio 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% 65,000 net acres 19% 194 Marcellus…
Achieving Shale Scale With 100% Core Appalachia Acreage Large, concentrated core acreage position in Appalachia Well Results Heat Map 100% of RICE Appalachian inventory in the 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)…
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 19 www.riceenergy.com
RMH: Core Utica Gathering Systems with High Growth 166,000 dedicated acres with 70% from high quality 3rd party customers PA ROM: 100% owned gathering and compression system in OH Central Belmont WV Belmont Dedication from RICE and…
RMP: Core System and Execution Drives High Growth PA OH Significant RMP Adj. EBITDA Growth(1) (MM) WV Washington 193 Belmont Water 43 Greene Gathering & Legend Compression RICE Acreage RMP Gathering RMP Water…
Unparalleled Midstream Growth RICE has positioned itself as the premier Appalachian core dry gas midstream player 1Q 2017 throughput of 2,204 MDth/d through RMH and RMP midstream systems RMP System: 1,235 MDth/d (19% 3rd Party) RMH…
Financial and Strategic Position 23 www.riceenergy.com
Healthy Balance Sheet Protected by Strong Hedge Book LOW LEVERAGE(1) HEDGE SUMMARY Strong balance sheet across enterprise 92% of 2017E production hedged at 3.15/MMBtu NYMEX Expect to exit 2017 at 1.5x E&P leverage vs. peer average(2)…
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…
Appalachian Basis has Improved Dramatically Local M2 basis improved to (0.49) in 1Q17 vs. (1.06) in 2014 2016 2Q17 2019 strip basis improved 45% to (0.52) Apr. 17 from (0.94) Oct. 16 (Vantage acquisition) Expect 18 Bcf/d incremental…
Meaningful Takeaway Capacity Expected to Outpace Supply Growth Expect 18 Bcf/d incremental takeaway capacity in-service by 4Q19 to provide significant improvement in 2018+ local pricing 9 Bcf/d of expected takeaway received FERC…
Basis Exposure & Realized Pricing PRICING COMMENTARY EXPECTED BASIS EXPOSURE FT portfolio covers 50% of 2017E takeaway volumes, decreasing to 40% in 2019E 44% 47% 52% 48% 48% 60% 2019E takeaway volumes 59% exposed to improved…
Top Performing Stock Since IPO Focused on managing the business for long-term value creation per share 80% 60% Outperformed 2nd peer by 35% and median by 65% 40% 20% RICE 0% 8% (20%) HHUB (40%) (37%) WTI (60%)…
The Premier Appalachian Energy Company 100% of Appalachian Leasehold in the Marcellus and Utica Cores Differentiated Technical Approach Has Led to Industry-Leading Well Results High Returning Wells Driving Rapid Production Growth…
Appendix 31 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) Management Ownership 15% Common Units 73 Subordinated Units 29 (1)…
RICE and RMP Organizational Structure EIG Managed Funds 1.45B E&P Borrowing Base NYSE: RICE 100% Series B Preferred Equity (375MM invested) Rice Midstream DE 300MM Credit Facility + Rice E&P Holdings LLC 100MM Accordion Feature…
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…
Diverse Exposure Provides Takeaway Capacity to Multiple Markets Appalachia takeaway commitments provides access to various markets in North America TAKEAWAY PORTFOLIO EXPECTED TAKEAWAY CAPACITY (MDTH/D) 4,000 Canada (MDth/d)…
Attractive Single Well Economics RICE continues to drive down D&C and operating costs to maximize returns Inventory currently generates 85% returns; HHUB PV-10 breakevens of 1.75 HHUB(1) DRY GAS SINGLE WELL ECONOMICS 206% 142%…
Marcellus and Utica Single Well Type Curves MARCELLUS SINGLE WELL TYPE CURVE 14 Restricted Rate Marcellus EUR (Bcf/1,000') 2.16 12 Lateral Length 8,000 10 EUR (Bcf) 17.3 Interwell Spacing 750 MMcf/d 8 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 2Q17 3Q17 4Q17 2017 2018 2019 2020 2021 RICEs gas will be marketed into 4 areas (1) Gulf Coast (ELA, M1) Hedged M2 / Dominion Volumes (BBtu/d) 600 795 701 699 613 542 515 340 (2) TCO Wtd Avg Floor Price (/MMBtu) 2.14…
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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