Investor Presentation January 2015 1 www.riceenergy.com
Rice Energy Strategy 1. Focus on long-term value creation Invest in 100% core assets with low break-even returns Operational excellence broadens the opportunity set for value creation Technical Differentiation Differentiated Results…
Solid Foundation for Economic Growth RICE was designed to weather challenging pricing environment 136,500 net acres situated in the core of the Marcellus and Utica Over 800 net drilling locations generate 10% IRR at 2.05-3.05/MMBtu…
Concentrated, Core Assets COMPANY TOTAL CORE ASSETS Highly concentrated position of 136,500 net acres in the cores of the lowest gas breakeven shale plays in the U.S. Legend Hancock Gathering Pipeline Beaver 1,100 net undeveloped…
Deep Inventory of High Returning Projects Breakevens between 2.05-3.05/MMBtu = profitable returns throughout the commodity price cycle Inventory and Returns Summary IRR 200% 171% 175% 168% 150% 138% 124% 125% 132% 121% 100% 87%…
Efficient Production Growth Demonstrates Production Potential Our peer-leading production growth is driven by a focus on well quality, not quantity RICE reached 500 MMcfe/d of gross operated Marcellus production with fewer wells than…
Firm Transport De-Risks Production Growth RICE was early in identifying and securing its basin-leading portfolio of firm capacity Firm capacity covers 100% of 2015 and a significant portion of RICEs volumes in 2016-2018 Firm…
Successful MLP IPO of Rice Midstream Partners LP OVERVIEW SYSTEM MAP PA GATHERING AND COMPRESSION RICE closed a 475MM IPO of its newly formed MLP, Rice Legend Midstream Partners LP (NYSE:RMP) on 12/22/14 RMP Gathering Pipeline RMP…
New Midstream Revolvers Enhance Liquidity RICE significantly increased liquidity through MLP and two new midstream facilities to self-fund future development OVERVIEW ORG STRUCTURE AND LIQUIDITY 12/31/2014 Unaudited Pre-MLP, Rice had…
Pennsylvania Assets 10 www.riceenergy.com
Strong Execution Drives Consistent Results Highlights Big Daddy Shaw Pad 5 Wells Swagler Pad 3 Wells Proven, De-Risked Asset: RICE has turned 78 Marcellus (3 Pollock North 1 Pad 4 Wells Avg. Lateral Ft: 7,900 Avg. Lateral Ft: 6,500…
Deep Utica Potential in Pennsylvania OH WV PA County Fairfield Muskingum Guernsey Belmont Ohio/Marshall Washington / Greene Depth 5000 6000 7500 9500 10,500 12,000 13,000 West East Porosity 12% Point Pleasant Core 6% 0%…
Marcellus Single Well Economics 750 Type Well Versus Historical Production (Normalized for 7,000 Lateral) 16.0 Restricted Rate 14.0 Cumulative Production 12.0 1 year 3.8 Bcf 2 years 5.6 Bcf MMcf/d 10.0 8.0 5 years 8.2 Bcf 10…
Ohio Assets 14 www.riceenergy.com
Utica: Dry-Gas Core Established, Significant Growth Ahead Operational Highlights Utica Development Map Blue Thunder 2 Wells Concentrated Core Position: 53,767 net acres concentrated in Thrasher 5 Wells Avg. Lat Length: 9,000 Bounty…
Utica Production and Pressures Update Bigfoot 9H (7,000 lateral) continues to produce steadily 14 MMcf/d 11 psi/d FCP decline. Blue Thunder 10H and 12H (9,000 laterals) were turned to sales in September and have stabilized at 16…
Utica Single Well Economics 750 Utica DRY Type Well Versus Historical Production (Normalized for 8,000 Lateral) 18.0 Restricted Rate 16.0 Cumulative Production 14.0 1 year 5.2 Bcf 12.0 2 years 7.8 Bcf MMcf/d 10.0 5 years 11.3…
Midstream Assets 18 www.riceenergy.com
Rice Midstream Partners LP (RMP) Marcellus Gathering and Compression SYSTEM MAP Concentrated high pressure natural gas gathering and Legend compression assets in the Marcellus Shale RMP Gathering Pipeline RMP Gathering Pipeline…
Midstream System Statistics Marcellus (PA) Utica (OH) Gathering and Compression Statistics Gathering and Compression Statistics YE14 YE15 YE14 YE15 Gathering and Compression Statistics Gas Gathering Pipeline Mileage (miles) 83 111 Gas…
Diverse Market Exposure FT portfolio includes 1.3 MMDth/d (1.2 Bcf/d) of firm capacity to premium US markets, including recently added 320 MDth/d on TETCOs Access South project with firm path to the Gulf Coast and estimated in-service…
Long-Haul Firm Transport Improves Realized Pricing Majority of RICEs 1.3 MMDth/d of firm capacity delivers gas to markets outside of the Appalachian Basin Basis Exposure and Weighted Average Basis Exposure Basis Basis Exposure…
Why Invest in Rice 100% of Leasehold in Core of Marcellus and Utica Differentiated Technical Approach Has Led to Industry Leading Well Results Owned and Operated Gathering and Water Midstream Infrastructure Supports Our Upstream…
Rice Market Snapshot Rice Energy Inc Rice Midstream Partners LP (NYSE: RICE) (NYSE: RMP) millions, except per share data, as of 12/31/14 millions, except per share data, as of 12/31/14 Shares Outstanding (MM) 136 Common Units (MM) 29…
Appendix 25 www.riceenergy.com
Strong Growth Story RICE has a proven track record of growing production and inventory and has secured midstream and FT to support future growth Production Growth from High Rate of Return Projects Pipeline Mileage Growing with Production…
Established Track Record of Drilling Proficiency Average Net Daily Production Average Lateral Length v. Horizontal Drilling Days(1) MMcfe/d Feet Days 247 250 241 10,000 18 9,000 209 8,452 8,163 16 15.8 200 8,000 14 6,691 6,957…
Differentiated Long-Term Production per Well Our drilling and completion techniques have yielded greater production profile per well than our peers Washington and Greene County Historical Production (1) Utica and Susquehanna, PA…
Economic Assumptions Summary Marcellus W. Greene Utica Dry Utica Wet Type Well Assumptions Net Locations IRR (adj midstream fees) IRR (full midstream fees) Lateral Length 7,000 7,000 8,000 8,000 4 NYMEX EUR (Bcf/1,000') NGL Yield…
Commodity Hedging Summary Strategy Hedge Book (1) 2015 2016 2017 We employ financial instruments (primarily NYMEX Henry Hub Contract Summary swaps and costless collars) to mitigate Natural Gas Swaps commodity price risk Volume Hedged…
Post-MLP Organizational and Credit Structure Rice Energy Inc. NYSE: RICE DE Rice E&P Rice Midstream Subsidiaries Holdings LLC IDRs Rice Midstream & LP OH Gathering PA Water OH Water Management LLC Interests Public…
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