Integrated Water Services Business Acquisition Slide 14
Western Greene County Midstream Update Slide 15
RICE Overview Slide 17
2016 Guidance Slide 6
3 wwwriceenergycom
RMP Investment Highlights 100 of RMP acreage dedications are located within the dry gas core of the Marcellus Shale and Utica Shales
RICErsquos concentrated dry gas core position + multi-well pad drilling = minimal RMP capex to meaningfully increase gathering throughput and water delivery volumes
Significant optionality on emerging Pennsylvania Utica opportunity
RMPrsquos strong 2016 expected throughput growth of ~25 over 2015 driven by high quality sponsor
Significant growth expected from contracted third party dedications from top tier producers
Increased distributions in 2Q15 3Q15 and 4Q15 ahead of previously anticipated distribution increase timing
RMP has a ROFO on RICErsquos OH gas gathering system consisting of 58000 acres dedicated in Belmont County
RICE closed Strike Force JV with Gulfport to provide midstream services on 75000 acres dedicated in Belmont and Monroe Counties
Expect to continue to grow third party gathering and water services opportunities
MLP cash flow driven by scalable dry gas throughput complementary water services business and protected with 100 fee-based contracts
Prolific assets and balance sheet strength positions RMP for continued growth through organic development and accretive acquisitions
Visible top-tier distribution growth profile driven by disciplined and aligned sponsor attractive drop down candidates and high-quality third party dedications
148K net acres in the dry gas cores of the Marcellus and Utica w 13+ year inventory in each area
Top-tier well results generate attractive single-well returns of approximately ~30(1) at strip pricing
Majority of 2016 production covered by firm sales and transportation and 662 BBtud hedged in 2016 at weighted avg floor price of $326 MMBtu
__________________________1 Assumes strip pricing as of 21916
Strategically Located Midstream Assets
Rapid Organic Growth
Premier EampP Sponsor
Attractive Drop Down Potential
Predictable Cash Flow Profile
4 wwwriceenergycom
RICE closed Strike Force JV w GPOR to develop gathering and compression for their Utica acreage
ROFO on RICErsquos OH gas gathering and compression assets In 4Q15 acquired RICErsquos PA amp OH water services business for $200MM
purchase price
Fourth quarter average daily throughput of 703 MDthd Increased acreage dedication in PA from RICE by 19000 gross acres to
93000 acres Increased distribution to $01965 unit for 4Q15 Expect to increase distributions by 20 in 2016
$315MM liquidity w $143MM drawn under our revolving credit facility DCF coverage ratio of 122x for 4Q15 Cash flow driven by scalable dry gas throughput complementary
water services business amp protected w 100 fee based contracts
Ample liquidity and balance sheet strength positions RMP for continued growth through organic development and accretive acquisitions
Visible top-tier distribution growth profile driven by disciplined and aligned sponsor attractive drop-down candidates and high-quality third party dedications
EXECUTION IS DRIVING
RAPID ORGANIC GROWTH
WELL-PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
ATTRACTIVE DROP
DOWN POTENTIAL
PREDICTABLE CASH
FLOW PROFILE
RMP Fourth Quarter 2015 Highlights
5 wwwriceenergycom
FINANCIAL SUMMARY
RMP Fourth Quarter 2015 Financial Summary
Fourth quarter average daily throughput of 703 MDthd 18 attributable to third-party volumes
Adjusted EBITDA of $19MM Distributable Cash Flow of $17MM DCF coverage ratio of 122x
Solid fourth quarter results supported by strong throughput growth well capitalized balance sheet and ample liquidity
$143MM drawn under our revolving credit facility $8MM of cash on hand
Three Months Ended($ in millions except per unit data) December 31 2015Affiliate gathering volumes (MDthd) 577 Third-party gathering volumes (MDthd) 126
Total gathering volumes (MDthd) 703
Water service volumes (MMgal) 202
Total operating revenues $29314
Total operating expenses $15538Total operating income $13776
Adjusted EBITDA $19065
Distributable cash flow $16997DCF unit $024
Distribution declared $13935Distribution unit $01965
DCF coverage ratio 122x
($ in millions) December 31 2015Revolver capacity $450Less Borrowings 143 Plus Cash and cash equivalents 8
Liquidity $315
Increased distribution to $01965 unit for 4Q15 $0003 unit increase
20 distribution growth target in 2016
DISTRIBUTIONS
OPERATING METRICS LIQUIDITY AS OF DECEMBER 31 2015
Financial Summary
EBITDA
Financial Summary
EBITDA
6 wwwriceenergycom
RMP Financial Overview
2016 GUIDANCE(1)
$ in millions except per share data as of 123115Common Units 42 Subordinated Units 29
Total Units Outstanding (MM) 71 Price as of 123115 $1349
Leverage Statistics4Q15 Net Debt RR EBITDA 18xEBITDA Interest NMDebt to EBITDA Covenant 475x
Liquidity SummaryRevolving credit facility $450Less amount drawn 143 Availability under RCF $307Plus cash on hand 8 Liquidity as of 123115 $315
__________________________1 As of February 24 2016
CAPITALIZATION AND LIQUIDITY AT 123115
Capital Expenditure ($MM)Gas Gathering and Compression $ 140 Water Services $ 10 Total Capital Expenditures $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($MM) 15$ - 18$
Adjusted EBITDA ($MM)Gas gathering and compression 85$ - 90$ Water business 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($MM) 90$ 100$ Average DCF Coverage Ratio 13x 15x Distribution Growth
Guidance
20 - 25
20
Sheet1
7 wwwriceenergycom
RICE and RMP Organizational Structure
DE
PA Water
Rice Olympus Midstream
(OH Gathering)
59 LP interest
Rice Midstream Holdings LLC
Public Unitholders
Strike Force Midstream (GPOR JV)
ROFOAssets
OH WaterPA Gathering
$300MM Credit Facility +
$450MM Credit Facility
$750MM Credit Facility
$100MM Accordion Feature
EIG Managed Funds
GP Holdings(IDRs and LP Interest)
825 common
equity interest
100 Series B Preferred Equity
($375MM invested)
75 equity interest
100 Series A Common Equity
41 LP interest 100 of IDRs
RMP GP(non-economic)
100 equity interest100 ownership9175 common
equity interest
8 wwwriceenergycom
RMP High Growth MLP in Prolific Appalachian Basin
__________________________1 As of February 24 20162 As of December 31 2015 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these
counties excluding the first 400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
RMP OVERVIEW
PA gas gathering system of over 40 MMDthd design capacity
Oversized to accommodate future growth and emerging PA Utica potential
Gathering throughput driven by SW PA technical leaders
~80 of 2016E throughput from RICE operated volumes and ~20 from 3rd parties primarily EQT
2016 GUIDANCE(1)
2016E EBITDA of $110MM -$120MM
2016 capex budget of $150MM
$140MM gathering and compression
$10MM water services
RMP constructing ~15 miles of gathering pipeline in 2016
RMP installing compression for RICE in 1H16 that will start generating revenue mid-2016
GATHERING SYSTEM INFORMATION
Dedicated GrossAcreage(2)
4Q 2015 Throughput
(MDthd)2016E Capex
($MM)(1)
RMP 114000 703 $150
Concentrated Prolific Position to Drive Targeted 20 Distribution Growth
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
9 wwwriceenergycom
RMP Gathering and Water System Build-out
PA gathering system oversized to accommodate future growth and emerging PA Utica potential
Mileage 128 miles by YE16
Total Design Capacity over 40 MMDthd
Substantially all of RICErsquos drilling locations within the RMP dedication will be within 2 miles of the completed PA gathering system
112 miles of water pipeline to deliver fresh water to well pads for completions
152 million gallons of water impoundment capacity
SUMMARY
RMPrsquos midstream system has grown significantly since 2013
2013
2014 2015
RMP Gathering Pipeline RMP Gathering Pipeline to be Constructed RMP Water Pipeline RMP Water Pipeline to be Constructed RICE Acreage
2012
3rd Party Dedicated to RMP
2016E
10 wwwriceenergycom
RMP 3rd Party Dedications from Top Operators in the Basin
SYSTEM MAP
RMPrsquos Assets are Well Positioned to Capture 3rd Party Growth
3rd Party Gathering Dedication SummaryPA
Dedicated Acreage 21000
Gatherer RMP
3Q 2015 Throughput (MDthd) 127
Contract Term ~10 years (wtd avg)
Gathering Compression Fee ($Dth)
$043(1) varies
__________________________1 Calculated based on weighted average historic throughput
OVERVIEW
High quality 3rd party operators with active development programs
EQT and GPOR (primary 3rd party customers) are technical leaders with strong balance sheets and attractive firm transportation portfolios and hedges to support development
Pennsylvania
~21000 gross acres dedicated
127 MDthd gathered in 4Q 2015 (18 of RMPrsquos throughput)
Ohio GPOR Water Dedication within 15 mile perimeter
around water distribution system in Ohio
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
11 wwwriceenergycom
Industry-Leading Throughput Growth4Q 2015 throughput of ~1027 MDthd through RICE and RMP midstream systems (25 3rd Party)
RMP System 703 MDthd (18 3rd Party) RICE OH System 323 MDthd (40 3rd Party)
0
200000
400000
600000
800000
1000000
1200000
Dthd
RMP - Rice Operated (PA) RMP - 3rd Party (PA) RICE - Rice Operated (OH) RICE - 3rd Party (OH)
Average Throughput (MDthd)
2010 2011 2012 2013 2014 2015
Throughput 4 18 61 176 409 894
YoY Growth 350 238 188 133 119
(1)
__________________________1 PA 3rd party volumes as of April 2014 close of Momentum asset acquisition
RMP AND RICE OH MIDSTREAM HISTORICAL THROUGHPUT
12 wwwriceenergycom
Attractive Drop Down Potential ndash OH Gathering
__________________________1 As of February 24 20162 As of December 31 2015
RMH OVERVIEW
OH gas gathering system of over 20 MMDthd design capacity
Gathering throughput driven by SE OH technical leaders
~65 of 2016E throughput from RICE volumes and ~35 from GPOR(1)
Will access TETCO REX ET Rover and DEO to deliver gas to Gulf Coast and Midwest markets
2016 GUIDANCE(1)
2016E EBITDA of $40MM -$45MM
2016 capex budget of $155MM
Constructing ~30 miles of gathering pipeline in 2016
Premier Midstream Systems in Prolific Dry Gas Utica Core Adds to Inventory of Drop Down Candidates
GATHERING SYSTEM INFORMATION
DedicatedGross
Acreage(2)
4Q 2015 Throughput
(MDthd)
RICE OH Gathering 58000 323
Strike Force JV 75000 -
Total 133000 323
Belmont
Monroe
OHIO
WEST VIRGINIA
OH PA
WV
LegendRICE Ohio Gathering Pipeline RICE Ohio Gathering Pipeline to be Constructed
GPOR Dedicated to RICERICE Acreage Dedicated to 3rd
Party
Strike Force JV AMI
13 wwwriceenergycom
Attractive Drop Down Potential ndash Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE
RICE and GPOR completed the formation of Utica Shale strategic midstream JV (ldquoStrike Forcerdquo)
Provide gas gathering and compression services to GPORrsquos Eastern Belmont and Monroe acreage in Ohio
Supported by long-term fee-based service agreements with GPOR
Ownership RICE 75 and GPOR 25 with RICE to construct and operate all JV assets
Dry gas gathering system with capacity to gather up to 18 MMDthd
System will consist of ~165 miles of high and low pressure 12rdquo ndash 24rdquo gathering pipelines with multiple interconnections to Rockies Express ET Rover TETCO Dominion East Ohio and other future pipelines
~50000 horsepower of compression for gathering and delivery into various downstream interstate pipelines
GPOR dedicated ~75000 leasehold acres within the Strike Force AMI of ~319000 acres
Constructing Extensive Dry Gas Gathering and Water Systems in One of the Most Prolific Natural Gas Plays
Strike Force strengthens Ricersquos leading midstream position in the core of the Utica Shale
Expands relationship with GPOR across its premier position in the dry gas Utica Shale
Achieves efficiencies of simultaneous development of gathering and compression
Leverages existing footprint to grow 3rd party business and pursue additional 3rd party opportunities within a ~319000-acre AMI
System designed to accommodate future growth
Significantly adds to RICErsquos attractive inventory of drop down candidates
PHASE 1 COMPLETED AHEAD OF SCHEDULE AND FIRST FLOW
COMMENCED ON FEBRUARY 1 2016
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
$ in millions except per share data as of 123115
2015 Capital Budget (in millions)
Common Units
42
Subordinated Units
29
Gas Gathering
$ 85
Total Units Outstanding (MM)
71
Compression
$ 90
Price as of 123115
$1349
Total Expansion Capex
$ 175
Market Capitalization
$957
Maintenance Capex
$ 5
Cash
8
Total Capital Expenditures
$ 180
Revolving credit facility
143
Enterprise Value
$1108
Guidance
Adjusted EBITDA (in millions)
$55 $60
Third Party
20
Leverage Statistics
Distributable Cash Flow (in millions)
$48 $53
4Q15 Net Debt RR EBITDA
18x
Average DCF Coverage Ratio
11x 12x
EBITDA Interest
NM
Annualized Distribution ($ per unit)
$075
Debt to EBITDA Covenant
475x
Liquidity Summary
RMP Units Owned
Revolving credit facility
$450
of RMP Units - Public
50
Less amount drawn
143
of RMP Units - RICE
50
Availability under RCF
$307
of RMP IDRs - RICE
100
Plus cash on hand
8
Liquidity as of 123115
$315
Three Months Ended
($ in thousands)
March 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 9068
Interest expense
394
Depreciation expense
1449
Amortization of intangible assets
408
Non-cash stock compensation expense
996
Amortization of deferred financing costs
144
Adjusted EBITDA
$ 12459
Cash interest expense
(394)
Estimated maintenance capital expenditures
(1120)
Distributable cash flow
$ 10945
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 12459
Interest expense
$ (394)
Changes in operating assets and liabilities which provided cash
(12134)
Net cash used in operating activities
$ (69)
Three Months Ended
($ in millions except per unit data)
March 31 2015
Affiliate gathering volumes (MDthd)
557
Third-party gathering volumes (MDthd)
98
Total gathering volumes (MDthd)
655
Total operating revenues
$ 20
Operating expenses
67
Total operating income
$ 13
Adjusted EBITDA
$ 17
Distributable cash flow
$ 15
DCF unit
$ 02624
Distribution declared
$ 11
Distribution unit
$ 01905
Coverage ratio
138x
Three Months Ended
($ in millions)
December 31 2015
Revolver capacity
$450
Less Borrowings
143
Plus Cash and cash equivalents
8
Liquidity
$315
Three Months Ended
($ in thousands)
March 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 9068
Interest expense
394
Depreciation expense
1449
Amortization of intangible assets
408
Non-cash stock compensation expense
996
Amortization of deferred financing costs
144
Adjusted EBITDA
$ 12459
Cash interest expense
(394)
Estimated maintenance capital expenditures
(1120)
Distributable cash flow
$ 10945
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 12459
Interest expense
$ (394)
Changes in operating assets and liabilities which provided cash
(12134)
Net cash used in operating activities
$ (69)
Three Months Ended
($ in millions except per unit data)
December 31 2015
Affiliate gathering volumes (MDthd)
577
Third-party gathering volumes (MDthd)
126
Total gathering volumes (MDthd)
703
Water service volumes (MMgal)
202
Total operating revenues
$29314
Total operating expenses
$15538
Total operating income
$13776
Adjusted EBITDA
$19065
Distributable cash flow
$16997
DCF unit
$024
Distribution declared
$13935
Distribution unit
$01965
70917372
DCF coverage ratio
122x
($ in millions)
Revolver capacity
$ 450
Less Borrowings
30
Plus Cash and cash equivalents
mdash
Liquidity
$ 420
2 wwwriceenergycom
Recent Company Updates
Q4 and FY 2015 Results Slide 4
Attractive Drop Down Potential Slide 12
Integrated Water Services Business Acquisition Slide 14
Western Greene County Midstream Update Slide 15
RICE Overview Slide 17
2016 Guidance Slide 6
3 wwwriceenergycom
RMP Investment Highlights 100 of RMP acreage dedications are located within the dry gas core of the Marcellus Shale and Utica Shales
RICErsquos concentrated dry gas core position + multi-well pad drilling = minimal RMP capex to meaningfully increase gathering throughput and water delivery volumes
Significant optionality on emerging Pennsylvania Utica opportunity
RMPrsquos strong 2016 expected throughput growth of ~25 over 2015 driven by high quality sponsor
Significant growth expected from contracted third party dedications from top tier producers
Increased distributions in 2Q15 3Q15 and 4Q15 ahead of previously anticipated distribution increase timing
RMP has a ROFO on RICErsquos OH gas gathering system consisting of 58000 acres dedicated in Belmont County
RICE closed Strike Force JV with Gulfport to provide midstream services on 75000 acres dedicated in Belmont and Monroe Counties
Expect to continue to grow third party gathering and water services opportunities
MLP cash flow driven by scalable dry gas throughput complementary water services business and protected with 100 fee-based contracts
Prolific assets and balance sheet strength positions RMP for continued growth through organic development and accretive acquisitions
Visible top-tier distribution growth profile driven by disciplined and aligned sponsor attractive drop down candidates and high-quality third party dedications
148K net acres in the dry gas cores of the Marcellus and Utica w 13+ year inventory in each area
Top-tier well results generate attractive single-well returns of approximately ~30(1) at strip pricing
Majority of 2016 production covered by firm sales and transportation and 662 BBtud hedged in 2016 at weighted avg floor price of $326 MMBtu
__________________________1 Assumes strip pricing as of 21916
Strategically Located Midstream Assets
Rapid Organic Growth
Premier EampP Sponsor
Attractive Drop Down Potential
Predictable Cash Flow Profile
4 wwwriceenergycom
RICE closed Strike Force JV w GPOR to develop gathering and compression for their Utica acreage
ROFO on RICErsquos OH gas gathering and compression assets In 4Q15 acquired RICErsquos PA amp OH water services business for $200MM
purchase price
Fourth quarter average daily throughput of 703 MDthd Increased acreage dedication in PA from RICE by 19000 gross acres to
93000 acres Increased distribution to $01965 unit for 4Q15 Expect to increase distributions by 20 in 2016
$315MM liquidity w $143MM drawn under our revolving credit facility DCF coverage ratio of 122x for 4Q15 Cash flow driven by scalable dry gas throughput complementary
water services business amp protected w 100 fee based contracts
Ample liquidity and balance sheet strength positions RMP for continued growth through organic development and accretive acquisitions
Visible top-tier distribution growth profile driven by disciplined and aligned sponsor attractive drop-down candidates and high-quality third party dedications
EXECUTION IS DRIVING
RAPID ORGANIC GROWTH
WELL-PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
ATTRACTIVE DROP
DOWN POTENTIAL
PREDICTABLE CASH
FLOW PROFILE
RMP Fourth Quarter 2015 Highlights
5 wwwriceenergycom
FINANCIAL SUMMARY
RMP Fourth Quarter 2015 Financial Summary
Fourth quarter average daily throughput of 703 MDthd 18 attributable to third-party volumes
Adjusted EBITDA of $19MM Distributable Cash Flow of $17MM DCF coverage ratio of 122x
Solid fourth quarter results supported by strong throughput growth well capitalized balance sheet and ample liquidity
$143MM drawn under our revolving credit facility $8MM of cash on hand
Three Months Ended($ in millions except per unit data) December 31 2015Affiliate gathering volumes (MDthd) 577 Third-party gathering volumes (MDthd) 126
Total gathering volumes (MDthd) 703
Water service volumes (MMgal) 202
Total operating revenues $29314
Total operating expenses $15538Total operating income $13776
Adjusted EBITDA $19065
Distributable cash flow $16997DCF unit $024
Distribution declared $13935Distribution unit $01965
DCF coverage ratio 122x
($ in millions) December 31 2015Revolver capacity $450Less Borrowings 143 Plus Cash and cash equivalents 8
Liquidity $315
Increased distribution to $01965 unit for 4Q15 $0003 unit increase
20 distribution growth target in 2016
DISTRIBUTIONS
OPERATING METRICS LIQUIDITY AS OF DECEMBER 31 2015
Financial Summary
EBITDA
Financial Summary
EBITDA
6 wwwriceenergycom
RMP Financial Overview
2016 GUIDANCE(1)
$ in millions except per share data as of 123115Common Units 42 Subordinated Units 29
Total Units Outstanding (MM) 71 Price as of 123115 $1349
Leverage Statistics4Q15 Net Debt RR EBITDA 18xEBITDA Interest NMDebt to EBITDA Covenant 475x
Liquidity SummaryRevolving credit facility $450Less amount drawn 143 Availability under RCF $307Plus cash on hand 8 Liquidity as of 123115 $315
__________________________1 As of February 24 2016
CAPITALIZATION AND LIQUIDITY AT 123115
Capital Expenditure ($MM)Gas Gathering and Compression $ 140 Water Services $ 10 Total Capital Expenditures $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($MM) 15$ - 18$
Adjusted EBITDA ($MM)Gas gathering and compression 85$ - 90$ Water business 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($MM) 90$ 100$ Average DCF Coverage Ratio 13x 15x Distribution Growth
Guidance
20 - 25
20
Sheet1
7 wwwriceenergycom
RICE and RMP Organizational Structure
DE
PA Water
Rice Olympus Midstream
(OH Gathering)
59 LP interest
Rice Midstream Holdings LLC
Public Unitholders
Strike Force Midstream (GPOR JV)
ROFOAssets
OH WaterPA Gathering
$300MM Credit Facility +
$450MM Credit Facility
$750MM Credit Facility
$100MM Accordion Feature
EIG Managed Funds
GP Holdings(IDRs and LP Interest)
825 common
equity interest
100 Series B Preferred Equity
($375MM invested)
75 equity interest
100 Series A Common Equity
41 LP interest 100 of IDRs
RMP GP(non-economic)
100 equity interest100 ownership9175 common
equity interest
8 wwwriceenergycom
RMP High Growth MLP in Prolific Appalachian Basin
__________________________1 As of February 24 20162 As of December 31 2015 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these
counties excluding the first 400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
RMP OVERVIEW
PA gas gathering system of over 40 MMDthd design capacity
Oversized to accommodate future growth and emerging PA Utica potential
Gathering throughput driven by SW PA technical leaders
~80 of 2016E throughput from RICE operated volumes and ~20 from 3rd parties primarily EQT
2016 GUIDANCE(1)
2016E EBITDA of $110MM -$120MM
2016 capex budget of $150MM
$140MM gathering and compression
$10MM water services
RMP constructing ~15 miles of gathering pipeline in 2016
RMP installing compression for RICE in 1H16 that will start generating revenue mid-2016
GATHERING SYSTEM INFORMATION
Dedicated GrossAcreage(2)
4Q 2015 Throughput
(MDthd)2016E Capex
($MM)(1)
RMP 114000 703 $150
Concentrated Prolific Position to Drive Targeted 20 Distribution Growth
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
9 wwwriceenergycom
RMP Gathering and Water System Build-out
PA gathering system oversized to accommodate future growth and emerging PA Utica potential
Mileage 128 miles by YE16
Total Design Capacity over 40 MMDthd
Substantially all of RICErsquos drilling locations within the RMP dedication will be within 2 miles of the completed PA gathering system
112 miles of water pipeline to deliver fresh water to well pads for completions
152 million gallons of water impoundment capacity
SUMMARY
RMPrsquos midstream system has grown significantly since 2013
2013
2014 2015
RMP Gathering Pipeline RMP Gathering Pipeline to be Constructed RMP Water Pipeline RMP Water Pipeline to be Constructed RICE Acreage
2012
3rd Party Dedicated to RMP
2016E
10 wwwriceenergycom
RMP 3rd Party Dedications from Top Operators in the Basin
SYSTEM MAP
RMPrsquos Assets are Well Positioned to Capture 3rd Party Growth
3rd Party Gathering Dedication SummaryPA
Dedicated Acreage 21000
Gatherer RMP
3Q 2015 Throughput (MDthd) 127
Contract Term ~10 years (wtd avg)
Gathering Compression Fee ($Dth)
$043(1) varies
__________________________1 Calculated based on weighted average historic throughput
OVERVIEW
High quality 3rd party operators with active development programs
EQT and GPOR (primary 3rd party customers) are technical leaders with strong balance sheets and attractive firm transportation portfolios and hedges to support development
Pennsylvania
~21000 gross acres dedicated
127 MDthd gathered in 4Q 2015 (18 of RMPrsquos throughput)
Ohio GPOR Water Dedication within 15 mile perimeter
around water distribution system in Ohio
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
11 wwwriceenergycom
Industry-Leading Throughput Growth4Q 2015 throughput of ~1027 MDthd through RICE and RMP midstream systems (25 3rd Party)
RMP System 703 MDthd (18 3rd Party) RICE OH System 323 MDthd (40 3rd Party)
0
200000
400000
600000
800000
1000000
1200000
Dthd
RMP - Rice Operated (PA) RMP - 3rd Party (PA) RICE - Rice Operated (OH) RICE - 3rd Party (OH)
Average Throughput (MDthd)
2010 2011 2012 2013 2014 2015
Throughput 4 18 61 176 409 894
YoY Growth 350 238 188 133 119
(1)
__________________________1 PA 3rd party volumes as of April 2014 close of Momentum asset acquisition
RMP AND RICE OH MIDSTREAM HISTORICAL THROUGHPUT
12 wwwriceenergycom
Attractive Drop Down Potential ndash OH Gathering
__________________________1 As of February 24 20162 As of December 31 2015
RMH OVERVIEW
OH gas gathering system of over 20 MMDthd design capacity
Gathering throughput driven by SE OH technical leaders
~65 of 2016E throughput from RICE volumes and ~35 from GPOR(1)
Will access TETCO REX ET Rover and DEO to deliver gas to Gulf Coast and Midwest markets
2016 GUIDANCE(1)
2016E EBITDA of $40MM -$45MM
2016 capex budget of $155MM
Constructing ~30 miles of gathering pipeline in 2016
Premier Midstream Systems in Prolific Dry Gas Utica Core Adds to Inventory of Drop Down Candidates
GATHERING SYSTEM INFORMATION
DedicatedGross
Acreage(2)
4Q 2015 Throughput
(MDthd)
RICE OH Gathering 58000 323
Strike Force JV 75000 -
Total 133000 323
Belmont
Monroe
OHIO
WEST VIRGINIA
OH PA
WV
LegendRICE Ohio Gathering Pipeline RICE Ohio Gathering Pipeline to be Constructed
GPOR Dedicated to RICERICE Acreage Dedicated to 3rd
Party
Strike Force JV AMI
13 wwwriceenergycom
Attractive Drop Down Potential ndash Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE
RICE and GPOR completed the formation of Utica Shale strategic midstream JV (ldquoStrike Forcerdquo)
Provide gas gathering and compression services to GPORrsquos Eastern Belmont and Monroe acreage in Ohio
Supported by long-term fee-based service agreements with GPOR
Ownership RICE 75 and GPOR 25 with RICE to construct and operate all JV assets
Dry gas gathering system with capacity to gather up to 18 MMDthd
System will consist of ~165 miles of high and low pressure 12rdquo ndash 24rdquo gathering pipelines with multiple interconnections to Rockies Express ET Rover TETCO Dominion East Ohio and other future pipelines
~50000 horsepower of compression for gathering and delivery into various downstream interstate pipelines
GPOR dedicated ~75000 leasehold acres within the Strike Force AMI of ~319000 acres
Constructing Extensive Dry Gas Gathering and Water Systems in One of the Most Prolific Natural Gas Plays
Strike Force strengthens Ricersquos leading midstream position in the core of the Utica Shale
Expands relationship with GPOR across its premier position in the dry gas Utica Shale
Achieves efficiencies of simultaneous development of gathering and compression
Leverages existing footprint to grow 3rd party business and pursue additional 3rd party opportunities within a ~319000-acre AMI
System designed to accommodate future growth
Significantly adds to RICErsquos attractive inventory of drop down candidates
PHASE 1 COMPLETED AHEAD OF SCHEDULE AND FIRST FLOW
COMMENCED ON FEBRUARY 1 2016
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
$ in millions except per share data as of 123115
2015 Capital Budget (in millions)
Common Units
42
Subordinated Units
29
Gas Gathering
$ 85
Total Units Outstanding (MM)
71
Compression
$ 90
Price as of 123115
$1349
Total Expansion Capex
$ 175
Market Capitalization
$957
Maintenance Capex
$ 5
Cash
8
Total Capital Expenditures
$ 180
Revolving credit facility
143
Enterprise Value
$1108
Guidance
Adjusted EBITDA (in millions)
$55 $60
Third Party
20
Leverage Statistics
Distributable Cash Flow (in millions)
$48 $53
4Q15 Net Debt RR EBITDA
18x
Average DCF Coverage Ratio
11x 12x
EBITDA Interest
NM
Annualized Distribution ($ per unit)
$075
Debt to EBITDA Covenant
475x
Liquidity Summary
RMP Units Owned
Revolving credit facility
$450
of RMP Units - Public
50
Less amount drawn
143
of RMP Units - RICE
50
Availability under RCF
$307
of RMP IDRs - RICE
100
Plus cash on hand
8
Liquidity as of 123115
$315
Three Months Ended
($ in thousands)
March 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 9068
Interest expense
394
Depreciation expense
1449
Amortization of intangible assets
408
Non-cash stock compensation expense
996
Amortization of deferred financing costs
144
Adjusted EBITDA
$ 12459
Cash interest expense
(394)
Estimated maintenance capital expenditures
(1120)
Distributable cash flow
$ 10945
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 12459
Interest expense
$ (394)
Changes in operating assets and liabilities which provided cash
(12134)
Net cash used in operating activities
$ (69)
Three Months Ended
($ in millions except per unit data)
March 31 2015
Affiliate gathering volumes (MDthd)
557
Third-party gathering volumes (MDthd)
98
Total gathering volumes (MDthd)
655
Total operating revenues
$ 20
Operating expenses
67
Total operating income
$ 13
Adjusted EBITDA
$ 17
Distributable cash flow
$ 15
DCF unit
$ 02624
Distribution declared
$ 11
Distribution unit
$ 01905
Coverage ratio
138x
Three Months Ended
($ in millions)
December 31 2015
Revolver capacity
$450
Less Borrowings
143
Plus Cash and cash equivalents
8
Liquidity
$315
Three Months Ended
($ in thousands)
March 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 9068
Interest expense
394
Depreciation expense
1449
Amortization of intangible assets
408
Non-cash stock compensation expense
996
Amortization of deferred financing costs
144
Adjusted EBITDA
$ 12459
Cash interest expense
(394)
Estimated maintenance capital expenditures
(1120)
Distributable cash flow
$ 10945
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 12459
Interest expense
$ (394)
Changes in operating assets and liabilities which provided cash
(12134)
Net cash used in operating activities
$ (69)
Three Months Ended
($ in millions except per unit data)
December 31 2015
Affiliate gathering volumes (MDthd)
577
Third-party gathering volumes (MDthd)
126
Total gathering volumes (MDthd)
703
Water service volumes (MMgal)
202
Total operating revenues
$29314
Total operating expenses
$15538
Total operating income
$13776
Adjusted EBITDA
$19065
Distributable cash flow
$16997
DCF unit
$024
Distribution declared
$13935
Distribution unit
$01965
70917372
DCF coverage ratio
122x
($ in millions)
Revolver capacity
$ 450
Less Borrowings
30
Plus Cash and cash equivalents
mdash
Liquidity
$ 420
3 wwwriceenergycom
RMP Investment Highlights 100 of RMP acreage dedications are located within the dry gas core of the Marcellus Shale and Utica Shales
RICErsquos concentrated dry gas core position + multi-well pad drilling = minimal RMP capex to meaningfully increase gathering throughput and water delivery volumes
Significant optionality on emerging Pennsylvania Utica opportunity
RMPrsquos strong 2016 expected throughput growth of ~25 over 2015 driven by high quality sponsor
Significant growth expected from contracted third party dedications from top tier producers
Increased distributions in 2Q15 3Q15 and 4Q15 ahead of previously anticipated distribution increase timing
RMP has a ROFO on RICErsquos OH gas gathering system consisting of 58000 acres dedicated in Belmont County
RICE closed Strike Force JV with Gulfport to provide midstream services on 75000 acres dedicated in Belmont and Monroe Counties
Expect to continue to grow third party gathering and water services opportunities
MLP cash flow driven by scalable dry gas throughput complementary water services business and protected with 100 fee-based contracts
Prolific assets and balance sheet strength positions RMP for continued growth through organic development and accretive acquisitions
Visible top-tier distribution growth profile driven by disciplined and aligned sponsor attractive drop down candidates and high-quality third party dedications
148K net acres in the dry gas cores of the Marcellus and Utica w 13+ year inventory in each area
Top-tier well results generate attractive single-well returns of approximately ~30(1) at strip pricing
Majority of 2016 production covered by firm sales and transportation and 662 BBtud hedged in 2016 at weighted avg floor price of $326 MMBtu
__________________________1 Assumes strip pricing as of 21916
Strategically Located Midstream Assets
Rapid Organic Growth
Premier EampP Sponsor
Attractive Drop Down Potential
Predictable Cash Flow Profile
4 wwwriceenergycom
RICE closed Strike Force JV w GPOR to develop gathering and compression for their Utica acreage
ROFO on RICErsquos OH gas gathering and compression assets In 4Q15 acquired RICErsquos PA amp OH water services business for $200MM
purchase price
Fourth quarter average daily throughput of 703 MDthd Increased acreage dedication in PA from RICE by 19000 gross acres to
93000 acres Increased distribution to $01965 unit for 4Q15 Expect to increase distributions by 20 in 2016
$315MM liquidity w $143MM drawn under our revolving credit facility DCF coverage ratio of 122x for 4Q15 Cash flow driven by scalable dry gas throughput complementary
water services business amp protected w 100 fee based contracts
Ample liquidity and balance sheet strength positions RMP for continued growth through organic development and accretive acquisitions
Visible top-tier distribution growth profile driven by disciplined and aligned sponsor attractive drop-down candidates and high-quality third party dedications
EXECUTION IS DRIVING
RAPID ORGANIC GROWTH
WELL-PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
ATTRACTIVE DROP
DOWN POTENTIAL
PREDICTABLE CASH
FLOW PROFILE
RMP Fourth Quarter 2015 Highlights
5 wwwriceenergycom
FINANCIAL SUMMARY
RMP Fourth Quarter 2015 Financial Summary
Fourth quarter average daily throughput of 703 MDthd 18 attributable to third-party volumes
Adjusted EBITDA of $19MM Distributable Cash Flow of $17MM DCF coverage ratio of 122x
Solid fourth quarter results supported by strong throughput growth well capitalized balance sheet and ample liquidity
$143MM drawn under our revolving credit facility $8MM of cash on hand
Three Months Ended($ in millions except per unit data) December 31 2015Affiliate gathering volumes (MDthd) 577 Third-party gathering volumes (MDthd) 126
Total gathering volumes (MDthd) 703
Water service volumes (MMgal) 202
Total operating revenues $29314
Total operating expenses $15538Total operating income $13776
Adjusted EBITDA $19065
Distributable cash flow $16997DCF unit $024
Distribution declared $13935Distribution unit $01965
DCF coverage ratio 122x
($ in millions) December 31 2015Revolver capacity $450Less Borrowings 143 Plus Cash and cash equivalents 8
Liquidity $315
Increased distribution to $01965 unit for 4Q15 $0003 unit increase
20 distribution growth target in 2016
DISTRIBUTIONS
OPERATING METRICS LIQUIDITY AS OF DECEMBER 31 2015
Financial Summary
EBITDA
Financial Summary
EBITDA
6 wwwriceenergycom
RMP Financial Overview
2016 GUIDANCE(1)
$ in millions except per share data as of 123115Common Units 42 Subordinated Units 29
Total Units Outstanding (MM) 71 Price as of 123115 $1349
Leverage Statistics4Q15 Net Debt RR EBITDA 18xEBITDA Interest NMDebt to EBITDA Covenant 475x
Liquidity SummaryRevolving credit facility $450Less amount drawn 143 Availability under RCF $307Plus cash on hand 8 Liquidity as of 123115 $315
__________________________1 As of February 24 2016
CAPITALIZATION AND LIQUIDITY AT 123115
Capital Expenditure ($MM)Gas Gathering and Compression $ 140 Water Services $ 10 Total Capital Expenditures $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($MM) 15$ - 18$
Adjusted EBITDA ($MM)Gas gathering and compression 85$ - 90$ Water business 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($MM) 90$ 100$ Average DCF Coverage Ratio 13x 15x Distribution Growth
Guidance
20 - 25
20
Sheet1
7 wwwriceenergycom
RICE and RMP Organizational Structure
DE
PA Water
Rice Olympus Midstream
(OH Gathering)
59 LP interest
Rice Midstream Holdings LLC
Public Unitholders
Strike Force Midstream (GPOR JV)
ROFOAssets
OH WaterPA Gathering
$300MM Credit Facility +
$450MM Credit Facility
$750MM Credit Facility
$100MM Accordion Feature
EIG Managed Funds
GP Holdings(IDRs and LP Interest)
825 common
equity interest
100 Series B Preferred Equity
($375MM invested)
75 equity interest
100 Series A Common Equity
41 LP interest 100 of IDRs
RMP GP(non-economic)
100 equity interest100 ownership9175 common
equity interest
8 wwwriceenergycom
RMP High Growth MLP in Prolific Appalachian Basin
__________________________1 As of February 24 20162 As of December 31 2015 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these
counties excluding the first 400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
RMP OVERVIEW
PA gas gathering system of over 40 MMDthd design capacity
Oversized to accommodate future growth and emerging PA Utica potential
Gathering throughput driven by SW PA technical leaders
~80 of 2016E throughput from RICE operated volumes and ~20 from 3rd parties primarily EQT
2016 GUIDANCE(1)
2016E EBITDA of $110MM -$120MM
2016 capex budget of $150MM
$140MM gathering and compression
$10MM water services
RMP constructing ~15 miles of gathering pipeline in 2016
RMP installing compression for RICE in 1H16 that will start generating revenue mid-2016
GATHERING SYSTEM INFORMATION
Dedicated GrossAcreage(2)
4Q 2015 Throughput
(MDthd)2016E Capex
($MM)(1)
RMP 114000 703 $150
Concentrated Prolific Position to Drive Targeted 20 Distribution Growth
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
9 wwwriceenergycom
RMP Gathering and Water System Build-out
PA gathering system oversized to accommodate future growth and emerging PA Utica potential
Mileage 128 miles by YE16
Total Design Capacity over 40 MMDthd
Substantially all of RICErsquos drilling locations within the RMP dedication will be within 2 miles of the completed PA gathering system
112 miles of water pipeline to deliver fresh water to well pads for completions
152 million gallons of water impoundment capacity
SUMMARY
RMPrsquos midstream system has grown significantly since 2013
2013
2014 2015
RMP Gathering Pipeline RMP Gathering Pipeline to be Constructed RMP Water Pipeline RMP Water Pipeline to be Constructed RICE Acreage
2012
3rd Party Dedicated to RMP
2016E
10 wwwriceenergycom
RMP 3rd Party Dedications from Top Operators in the Basin
SYSTEM MAP
RMPrsquos Assets are Well Positioned to Capture 3rd Party Growth
3rd Party Gathering Dedication SummaryPA
Dedicated Acreage 21000
Gatherer RMP
3Q 2015 Throughput (MDthd) 127
Contract Term ~10 years (wtd avg)
Gathering Compression Fee ($Dth)
$043(1) varies
__________________________1 Calculated based on weighted average historic throughput
OVERVIEW
High quality 3rd party operators with active development programs
EQT and GPOR (primary 3rd party customers) are technical leaders with strong balance sheets and attractive firm transportation portfolios and hedges to support development
Pennsylvania
~21000 gross acres dedicated
127 MDthd gathered in 4Q 2015 (18 of RMPrsquos throughput)
Ohio GPOR Water Dedication within 15 mile perimeter
around water distribution system in Ohio
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
11 wwwriceenergycom
Industry-Leading Throughput Growth4Q 2015 throughput of ~1027 MDthd through RICE and RMP midstream systems (25 3rd Party)
RMP System 703 MDthd (18 3rd Party) RICE OH System 323 MDthd (40 3rd Party)
0
200000
400000
600000
800000
1000000
1200000
Dthd
RMP - Rice Operated (PA) RMP - 3rd Party (PA) RICE - Rice Operated (OH) RICE - 3rd Party (OH)
Average Throughput (MDthd)
2010 2011 2012 2013 2014 2015
Throughput 4 18 61 176 409 894
YoY Growth 350 238 188 133 119
(1)
__________________________1 PA 3rd party volumes as of April 2014 close of Momentum asset acquisition
RMP AND RICE OH MIDSTREAM HISTORICAL THROUGHPUT
12 wwwriceenergycom
Attractive Drop Down Potential ndash OH Gathering
__________________________1 As of February 24 20162 As of December 31 2015
RMH OVERVIEW
OH gas gathering system of over 20 MMDthd design capacity
Gathering throughput driven by SE OH technical leaders
~65 of 2016E throughput from RICE volumes and ~35 from GPOR(1)
Will access TETCO REX ET Rover and DEO to deliver gas to Gulf Coast and Midwest markets
2016 GUIDANCE(1)
2016E EBITDA of $40MM -$45MM
2016 capex budget of $155MM
Constructing ~30 miles of gathering pipeline in 2016
Premier Midstream Systems in Prolific Dry Gas Utica Core Adds to Inventory of Drop Down Candidates
GATHERING SYSTEM INFORMATION
DedicatedGross
Acreage(2)
4Q 2015 Throughput
(MDthd)
RICE OH Gathering 58000 323
Strike Force JV 75000 -
Total 133000 323
Belmont
Monroe
OHIO
WEST VIRGINIA
OH PA
WV
LegendRICE Ohio Gathering Pipeline RICE Ohio Gathering Pipeline to be Constructed
GPOR Dedicated to RICERICE Acreage Dedicated to 3rd
Party
Strike Force JV AMI
13 wwwriceenergycom
Attractive Drop Down Potential ndash Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE
RICE and GPOR completed the formation of Utica Shale strategic midstream JV (ldquoStrike Forcerdquo)
Provide gas gathering and compression services to GPORrsquos Eastern Belmont and Monroe acreage in Ohio
Supported by long-term fee-based service agreements with GPOR
Ownership RICE 75 and GPOR 25 with RICE to construct and operate all JV assets
Dry gas gathering system with capacity to gather up to 18 MMDthd
System will consist of ~165 miles of high and low pressure 12rdquo ndash 24rdquo gathering pipelines with multiple interconnections to Rockies Express ET Rover TETCO Dominion East Ohio and other future pipelines
~50000 horsepower of compression for gathering and delivery into various downstream interstate pipelines
GPOR dedicated ~75000 leasehold acres within the Strike Force AMI of ~319000 acres
Constructing Extensive Dry Gas Gathering and Water Systems in One of the Most Prolific Natural Gas Plays
Strike Force strengthens Ricersquos leading midstream position in the core of the Utica Shale
Expands relationship with GPOR across its premier position in the dry gas Utica Shale
Achieves efficiencies of simultaneous development of gathering and compression
Leverages existing footprint to grow 3rd party business and pursue additional 3rd party opportunities within a ~319000-acre AMI
System designed to accommodate future growth
Significantly adds to RICErsquos attractive inventory of drop down candidates
PHASE 1 COMPLETED AHEAD OF SCHEDULE AND FIRST FLOW
COMMENCED ON FEBRUARY 1 2016
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
$ in millions except per share data as of 123115
2015 Capital Budget (in millions)
Common Units
42
Subordinated Units
29
Gas Gathering
$ 85
Total Units Outstanding (MM)
71
Compression
$ 90
Price as of 123115
$1349
Total Expansion Capex
$ 175
Market Capitalization
$957
Maintenance Capex
$ 5
Cash
8
Total Capital Expenditures
$ 180
Revolving credit facility
143
Enterprise Value
$1108
Guidance
Adjusted EBITDA (in millions)
$55 $60
Third Party
20
Leverage Statistics
Distributable Cash Flow (in millions)
$48 $53
4Q15 Net Debt RR EBITDA
18x
Average DCF Coverage Ratio
11x 12x
EBITDA Interest
NM
Annualized Distribution ($ per unit)
$075
Debt to EBITDA Covenant
475x
Liquidity Summary
RMP Units Owned
Revolving credit facility
$450
of RMP Units - Public
50
Less amount drawn
143
of RMP Units - RICE
50
Availability under RCF
$307
of RMP IDRs - RICE
100
Plus cash on hand
8
Liquidity as of 123115
$315
Three Months Ended
($ in thousands)
March 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 9068
Interest expense
394
Depreciation expense
1449
Amortization of intangible assets
408
Non-cash stock compensation expense
996
Amortization of deferred financing costs
144
Adjusted EBITDA
$ 12459
Cash interest expense
(394)
Estimated maintenance capital expenditures
(1120)
Distributable cash flow
$ 10945
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 12459
Interest expense
$ (394)
Changes in operating assets and liabilities which provided cash
(12134)
Net cash used in operating activities
$ (69)
Three Months Ended
($ in millions except per unit data)
March 31 2015
Affiliate gathering volumes (MDthd)
557
Third-party gathering volumes (MDthd)
98
Total gathering volumes (MDthd)
655
Total operating revenues
$ 20
Operating expenses
67
Total operating income
$ 13
Adjusted EBITDA
$ 17
Distributable cash flow
$ 15
DCF unit
$ 02624
Distribution declared
$ 11
Distribution unit
$ 01905
Coverage ratio
138x
Three Months Ended
($ in millions)
December 31 2015
Revolver capacity
$450
Less Borrowings
143
Plus Cash and cash equivalents
8
Liquidity
$315
Three Months Ended
($ in thousands)
March 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 9068
Interest expense
394
Depreciation expense
1449
Amortization of intangible assets
408
Non-cash stock compensation expense
996
Amortization of deferred financing costs
144
Adjusted EBITDA
$ 12459
Cash interest expense
(394)
Estimated maintenance capital expenditures
(1120)
Distributable cash flow
$ 10945
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 12459
Interest expense
$ (394)
Changes in operating assets and liabilities which provided cash
(12134)
Net cash used in operating activities
$ (69)
Three Months Ended
($ in millions except per unit data)
December 31 2015
Affiliate gathering volumes (MDthd)
577
Third-party gathering volumes (MDthd)
126
Total gathering volumes (MDthd)
703
Water service volumes (MMgal)
202
Total operating revenues
$29314
Total operating expenses
$15538
Total operating income
$13776
Adjusted EBITDA
$19065
Distributable cash flow
$16997
DCF unit
$024
Distribution declared
$13935
Distribution unit
$01965
70917372
DCF coverage ratio
122x
($ in millions)
Revolver capacity
$ 450
Less Borrowings
30
Plus Cash and cash equivalents
mdash
Liquidity
$ 420
4 wwwriceenergycom
RICE closed Strike Force JV w GPOR to develop gathering and compression for their Utica acreage
ROFO on RICErsquos OH gas gathering and compression assets In 4Q15 acquired RICErsquos PA amp OH water services business for $200MM
purchase price
Fourth quarter average daily throughput of 703 MDthd Increased acreage dedication in PA from RICE by 19000 gross acres to
93000 acres Increased distribution to $01965 unit for 4Q15 Expect to increase distributions by 20 in 2016
$315MM liquidity w $143MM drawn under our revolving credit facility DCF coverage ratio of 122x for 4Q15 Cash flow driven by scalable dry gas throughput complementary
water services business amp protected w 100 fee based contracts
Ample liquidity and balance sheet strength positions RMP for continued growth through organic development and accretive acquisitions
Visible top-tier distribution growth profile driven by disciplined and aligned sponsor attractive drop-down candidates and high-quality third party dedications
EXECUTION IS DRIVING
RAPID ORGANIC GROWTH
WELL-PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
ATTRACTIVE DROP
DOWN POTENTIAL
PREDICTABLE CASH
FLOW PROFILE
RMP Fourth Quarter 2015 Highlights
5 wwwriceenergycom
FINANCIAL SUMMARY
RMP Fourth Quarter 2015 Financial Summary
Fourth quarter average daily throughput of 703 MDthd 18 attributable to third-party volumes
Adjusted EBITDA of $19MM Distributable Cash Flow of $17MM DCF coverage ratio of 122x
Solid fourth quarter results supported by strong throughput growth well capitalized balance sheet and ample liquidity
$143MM drawn under our revolving credit facility $8MM of cash on hand
Three Months Ended($ in millions except per unit data) December 31 2015Affiliate gathering volumes (MDthd) 577 Third-party gathering volumes (MDthd) 126
Total gathering volumes (MDthd) 703
Water service volumes (MMgal) 202
Total operating revenues $29314
Total operating expenses $15538Total operating income $13776
Adjusted EBITDA $19065
Distributable cash flow $16997DCF unit $024
Distribution declared $13935Distribution unit $01965
DCF coverage ratio 122x
($ in millions) December 31 2015Revolver capacity $450Less Borrowings 143 Plus Cash and cash equivalents 8
Liquidity $315
Increased distribution to $01965 unit for 4Q15 $0003 unit increase
20 distribution growth target in 2016
DISTRIBUTIONS
OPERATING METRICS LIQUIDITY AS OF DECEMBER 31 2015
Financial Summary
EBITDA
Financial Summary
EBITDA
6 wwwriceenergycom
RMP Financial Overview
2016 GUIDANCE(1)
$ in millions except per share data as of 123115Common Units 42 Subordinated Units 29
Total Units Outstanding (MM) 71 Price as of 123115 $1349
Leverage Statistics4Q15 Net Debt RR EBITDA 18xEBITDA Interest NMDebt to EBITDA Covenant 475x
Liquidity SummaryRevolving credit facility $450Less amount drawn 143 Availability under RCF $307Plus cash on hand 8 Liquidity as of 123115 $315
__________________________1 As of February 24 2016
CAPITALIZATION AND LIQUIDITY AT 123115
Capital Expenditure ($MM)Gas Gathering and Compression $ 140 Water Services $ 10 Total Capital Expenditures $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($MM) 15$ - 18$
Adjusted EBITDA ($MM)Gas gathering and compression 85$ - 90$ Water business 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($MM) 90$ 100$ Average DCF Coverage Ratio 13x 15x Distribution Growth
Guidance
20 - 25
20
Sheet1
7 wwwriceenergycom
RICE and RMP Organizational Structure
DE
PA Water
Rice Olympus Midstream
(OH Gathering)
59 LP interest
Rice Midstream Holdings LLC
Public Unitholders
Strike Force Midstream (GPOR JV)
ROFOAssets
OH WaterPA Gathering
$300MM Credit Facility +
$450MM Credit Facility
$750MM Credit Facility
$100MM Accordion Feature
EIG Managed Funds
GP Holdings(IDRs and LP Interest)
825 common
equity interest
100 Series B Preferred Equity
($375MM invested)
75 equity interest
100 Series A Common Equity
41 LP interest 100 of IDRs
RMP GP(non-economic)
100 equity interest100 ownership9175 common
equity interest
8 wwwriceenergycom
RMP High Growth MLP in Prolific Appalachian Basin
__________________________1 As of February 24 20162 As of December 31 2015 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these
counties excluding the first 400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
RMP OVERVIEW
PA gas gathering system of over 40 MMDthd design capacity
Oversized to accommodate future growth and emerging PA Utica potential
Gathering throughput driven by SW PA technical leaders
~80 of 2016E throughput from RICE operated volumes and ~20 from 3rd parties primarily EQT
2016 GUIDANCE(1)
2016E EBITDA of $110MM -$120MM
2016 capex budget of $150MM
$140MM gathering and compression
$10MM water services
RMP constructing ~15 miles of gathering pipeline in 2016
RMP installing compression for RICE in 1H16 that will start generating revenue mid-2016
GATHERING SYSTEM INFORMATION
Dedicated GrossAcreage(2)
4Q 2015 Throughput
(MDthd)2016E Capex
($MM)(1)
RMP 114000 703 $150
Concentrated Prolific Position to Drive Targeted 20 Distribution Growth
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
9 wwwriceenergycom
RMP Gathering and Water System Build-out
PA gathering system oversized to accommodate future growth and emerging PA Utica potential
Mileage 128 miles by YE16
Total Design Capacity over 40 MMDthd
Substantially all of RICErsquos drilling locations within the RMP dedication will be within 2 miles of the completed PA gathering system
112 miles of water pipeline to deliver fresh water to well pads for completions
152 million gallons of water impoundment capacity
SUMMARY
RMPrsquos midstream system has grown significantly since 2013
2013
2014 2015
RMP Gathering Pipeline RMP Gathering Pipeline to be Constructed RMP Water Pipeline RMP Water Pipeline to be Constructed RICE Acreage
2012
3rd Party Dedicated to RMP
2016E
10 wwwriceenergycom
RMP 3rd Party Dedications from Top Operators in the Basin
SYSTEM MAP
RMPrsquos Assets are Well Positioned to Capture 3rd Party Growth
3rd Party Gathering Dedication SummaryPA
Dedicated Acreage 21000
Gatherer RMP
3Q 2015 Throughput (MDthd) 127
Contract Term ~10 years (wtd avg)
Gathering Compression Fee ($Dth)
$043(1) varies
__________________________1 Calculated based on weighted average historic throughput
OVERVIEW
High quality 3rd party operators with active development programs
EQT and GPOR (primary 3rd party customers) are technical leaders with strong balance sheets and attractive firm transportation portfolios and hedges to support development
Pennsylvania
~21000 gross acres dedicated
127 MDthd gathered in 4Q 2015 (18 of RMPrsquos throughput)
Ohio GPOR Water Dedication within 15 mile perimeter
around water distribution system in Ohio
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
11 wwwriceenergycom
Industry-Leading Throughput Growth4Q 2015 throughput of ~1027 MDthd through RICE and RMP midstream systems (25 3rd Party)
RMP System 703 MDthd (18 3rd Party) RICE OH System 323 MDthd (40 3rd Party)
0
200000
400000
600000
800000
1000000
1200000
Dthd
RMP - Rice Operated (PA) RMP - 3rd Party (PA) RICE - Rice Operated (OH) RICE - 3rd Party (OH)
Average Throughput (MDthd)
2010 2011 2012 2013 2014 2015
Throughput 4 18 61 176 409 894
YoY Growth 350 238 188 133 119
(1)
__________________________1 PA 3rd party volumes as of April 2014 close of Momentum asset acquisition
RMP AND RICE OH MIDSTREAM HISTORICAL THROUGHPUT
12 wwwriceenergycom
Attractive Drop Down Potential ndash OH Gathering
__________________________1 As of February 24 20162 As of December 31 2015
RMH OVERVIEW
OH gas gathering system of over 20 MMDthd design capacity
Gathering throughput driven by SE OH technical leaders
~65 of 2016E throughput from RICE volumes and ~35 from GPOR(1)
Will access TETCO REX ET Rover and DEO to deliver gas to Gulf Coast and Midwest markets
2016 GUIDANCE(1)
2016E EBITDA of $40MM -$45MM
2016 capex budget of $155MM
Constructing ~30 miles of gathering pipeline in 2016
Premier Midstream Systems in Prolific Dry Gas Utica Core Adds to Inventory of Drop Down Candidates
GATHERING SYSTEM INFORMATION
DedicatedGross
Acreage(2)
4Q 2015 Throughput
(MDthd)
RICE OH Gathering 58000 323
Strike Force JV 75000 -
Total 133000 323
Belmont
Monroe
OHIO
WEST VIRGINIA
OH PA
WV
LegendRICE Ohio Gathering Pipeline RICE Ohio Gathering Pipeline to be Constructed
GPOR Dedicated to RICERICE Acreage Dedicated to 3rd
Party
Strike Force JV AMI
13 wwwriceenergycom
Attractive Drop Down Potential ndash Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE
RICE and GPOR completed the formation of Utica Shale strategic midstream JV (ldquoStrike Forcerdquo)
Provide gas gathering and compression services to GPORrsquos Eastern Belmont and Monroe acreage in Ohio
Supported by long-term fee-based service agreements with GPOR
Ownership RICE 75 and GPOR 25 with RICE to construct and operate all JV assets
Dry gas gathering system with capacity to gather up to 18 MMDthd
System will consist of ~165 miles of high and low pressure 12rdquo ndash 24rdquo gathering pipelines with multiple interconnections to Rockies Express ET Rover TETCO Dominion East Ohio and other future pipelines
~50000 horsepower of compression for gathering and delivery into various downstream interstate pipelines
GPOR dedicated ~75000 leasehold acres within the Strike Force AMI of ~319000 acres
Constructing Extensive Dry Gas Gathering and Water Systems in One of the Most Prolific Natural Gas Plays
Strike Force strengthens Ricersquos leading midstream position in the core of the Utica Shale
Expands relationship with GPOR across its premier position in the dry gas Utica Shale
Achieves efficiencies of simultaneous development of gathering and compression
Leverages existing footprint to grow 3rd party business and pursue additional 3rd party opportunities within a ~319000-acre AMI
System designed to accommodate future growth
Significantly adds to RICErsquos attractive inventory of drop down candidates
PHASE 1 COMPLETED AHEAD OF SCHEDULE AND FIRST FLOW
COMMENCED ON FEBRUARY 1 2016
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
$ in millions except per share data as of 123115
2015 Capital Budget (in millions)
Common Units
42
Subordinated Units
29
Gas Gathering
$ 85
Total Units Outstanding (MM)
71
Compression
$ 90
Price as of 123115
$1349
Total Expansion Capex
$ 175
Market Capitalization
$957
Maintenance Capex
$ 5
Cash
8
Total Capital Expenditures
$ 180
Revolving credit facility
143
Enterprise Value
$1108
Guidance
Adjusted EBITDA (in millions)
$55 $60
Third Party
20
Leverage Statistics
Distributable Cash Flow (in millions)
$48 $53
4Q15 Net Debt RR EBITDA
18x
Average DCF Coverage Ratio
11x 12x
EBITDA Interest
NM
Annualized Distribution ($ per unit)
$075
Debt to EBITDA Covenant
475x
Liquidity Summary
RMP Units Owned
Revolving credit facility
$450
of RMP Units - Public
50
Less amount drawn
143
of RMP Units - RICE
50
Availability under RCF
$307
of RMP IDRs - RICE
100
Plus cash on hand
8
Liquidity as of 123115
$315
Three Months Ended
($ in thousands)
March 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 9068
Interest expense
394
Depreciation expense
1449
Amortization of intangible assets
408
Non-cash stock compensation expense
996
Amortization of deferred financing costs
144
Adjusted EBITDA
$ 12459
Cash interest expense
(394)
Estimated maintenance capital expenditures
(1120)
Distributable cash flow
$ 10945
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 12459
Interest expense
$ (394)
Changes in operating assets and liabilities which provided cash
(12134)
Net cash used in operating activities
$ (69)
Three Months Ended
($ in millions except per unit data)
March 31 2015
Affiliate gathering volumes (MDthd)
557
Third-party gathering volumes (MDthd)
98
Total gathering volumes (MDthd)
655
Total operating revenues
$ 20
Operating expenses
67
Total operating income
$ 13
Adjusted EBITDA
$ 17
Distributable cash flow
$ 15
DCF unit
$ 02624
Distribution declared
$ 11
Distribution unit
$ 01905
Coverage ratio
138x
Three Months Ended
($ in millions)
December 31 2015
Revolver capacity
$450
Less Borrowings
143
Plus Cash and cash equivalents
8
Liquidity
$315
Three Months Ended
($ in thousands)
March 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 9068
Interest expense
394
Depreciation expense
1449
Amortization of intangible assets
408
Non-cash stock compensation expense
996
Amortization of deferred financing costs
144
Adjusted EBITDA
$ 12459
Cash interest expense
(394)
Estimated maintenance capital expenditures
(1120)
Distributable cash flow
$ 10945
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 12459
Interest expense
$ (394)
Changes in operating assets and liabilities which provided cash
(12134)
Net cash used in operating activities
$ (69)
Three Months Ended
($ in millions except per unit data)
December 31 2015
Affiliate gathering volumes (MDthd)
577
Third-party gathering volumes (MDthd)
126
Total gathering volumes (MDthd)
703
Water service volumes (MMgal)
202
Total operating revenues
$29314
Total operating expenses
$15538
Total operating income
$13776
Adjusted EBITDA
$19065
Distributable cash flow
$16997
DCF unit
$024
Distribution declared
$13935
Distribution unit
$01965
70917372
DCF coverage ratio
122x
($ in millions)
Revolver capacity
$ 450
Less Borrowings
30
Plus Cash and cash equivalents
mdash
Liquidity
$ 420
5 wwwriceenergycom
FINANCIAL SUMMARY
RMP Fourth Quarter 2015 Financial Summary
Fourth quarter average daily throughput of 703 MDthd 18 attributable to third-party volumes
Adjusted EBITDA of $19MM Distributable Cash Flow of $17MM DCF coverage ratio of 122x
Solid fourth quarter results supported by strong throughput growth well capitalized balance sheet and ample liquidity
$143MM drawn under our revolving credit facility $8MM of cash on hand
Three Months Ended($ in millions except per unit data) December 31 2015Affiliate gathering volumes (MDthd) 577 Third-party gathering volumes (MDthd) 126
Total gathering volumes (MDthd) 703
Water service volumes (MMgal) 202
Total operating revenues $29314
Total operating expenses $15538Total operating income $13776
Adjusted EBITDA $19065
Distributable cash flow $16997DCF unit $024
Distribution declared $13935Distribution unit $01965
DCF coverage ratio 122x
($ in millions) December 31 2015Revolver capacity $450Less Borrowings 143 Plus Cash and cash equivalents 8
Liquidity $315
Increased distribution to $01965 unit for 4Q15 $0003 unit increase
20 distribution growth target in 2016
DISTRIBUTIONS
OPERATING METRICS LIQUIDITY AS OF DECEMBER 31 2015
Financial Summary
EBITDA
Financial Summary
EBITDA
6 wwwriceenergycom
RMP Financial Overview
2016 GUIDANCE(1)
$ in millions except per share data as of 123115Common Units 42 Subordinated Units 29
Total Units Outstanding (MM) 71 Price as of 123115 $1349
Leverage Statistics4Q15 Net Debt RR EBITDA 18xEBITDA Interest NMDebt to EBITDA Covenant 475x
Liquidity SummaryRevolving credit facility $450Less amount drawn 143 Availability under RCF $307Plus cash on hand 8 Liquidity as of 123115 $315
__________________________1 As of February 24 2016
CAPITALIZATION AND LIQUIDITY AT 123115
Capital Expenditure ($MM)Gas Gathering and Compression $ 140 Water Services $ 10 Total Capital Expenditures $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($MM) 15$ - 18$
Adjusted EBITDA ($MM)Gas gathering and compression 85$ - 90$ Water business 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($MM) 90$ 100$ Average DCF Coverage Ratio 13x 15x Distribution Growth
Guidance
20 - 25
20
Sheet1
7 wwwriceenergycom
RICE and RMP Organizational Structure
DE
PA Water
Rice Olympus Midstream
(OH Gathering)
59 LP interest
Rice Midstream Holdings LLC
Public Unitholders
Strike Force Midstream (GPOR JV)
ROFOAssets
OH WaterPA Gathering
$300MM Credit Facility +
$450MM Credit Facility
$750MM Credit Facility
$100MM Accordion Feature
EIG Managed Funds
GP Holdings(IDRs and LP Interest)
825 common
equity interest
100 Series B Preferred Equity
($375MM invested)
75 equity interest
100 Series A Common Equity
41 LP interest 100 of IDRs
RMP GP(non-economic)
100 equity interest100 ownership9175 common
equity interest
8 wwwriceenergycom
RMP High Growth MLP in Prolific Appalachian Basin
__________________________1 As of February 24 20162 As of December 31 2015 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these
counties excluding the first 400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
RMP OVERVIEW
PA gas gathering system of over 40 MMDthd design capacity
Oversized to accommodate future growth and emerging PA Utica potential
Gathering throughput driven by SW PA technical leaders
~80 of 2016E throughput from RICE operated volumes and ~20 from 3rd parties primarily EQT
2016 GUIDANCE(1)
2016E EBITDA of $110MM -$120MM
2016 capex budget of $150MM
$140MM gathering and compression
$10MM water services
RMP constructing ~15 miles of gathering pipeline in 2016
RMP installing compression for RICE in 1H16 that will start generating revenue mid-2016
GATHERING SYSTEM INFORMATION
Dedicated GrossAcreage(2)
4Q 2015 Throughput
(MDthd)2016E Capex
($MM)(1)
RMP 114000 703 $150
Concentrated Prolific Position to Drive Targeted 20 Distribution Growth
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
9 wwwriceenergycom
RMP Gathering and Water System Build-out
PA gathering system oversized to accommodate future growth and emerging PA Utica potential
Mileage 128 miles by YE16
Total Design Capacity over 40 MMDthd
Substantially all of RICErsquos drilling locations within the RMP dedication will be within 2 miles of the completed PA gathering system
112 miles of water pipeline to deliver fresh water to well pads for completions
152 million gallons of water impoundment capacity
SUMMARY
RMPrsquos midstream system has grown significantly since 2013
2013
2014 2015
RMP Gathering Pipeline RMP Gathering Pipeline to be Constructed RMP Water Pipeline RMP Water Pipeline to be Constructed RICE Acreage
2012
3rd Party Dedicated to RMP
2016E
10 wwwriceenergycom
RMP 3rd Party Dedications from Top Operators in the Basin
SYSTEM MAP
RMPrsquos Assets are Well Positioned to Capture 3rd Party Growth
3rd Party Gathering Dedication SummaryPA
Dedicated Acreage 21000
Gatherer RMP
3Q 2015 Throughput (MDthd) 127
Contract Term ~10 years (wtd avg)
Gathering Compression Fee ($Dth)
$043(1) varies
__________________________1 Calculated based on weighted average historic throughput
OVERVIEW
High quality 3rd party operators with active development programs
EQT and GPOR (primary 3rd party customers) are technical leaders with strong balance sheets and attractive firm transportation portfolios and hedges to support development
Pennsylvania
~21000 gross acres dedicated
127 MDthd gathered in 4Q 2015 (18 of RMPrsquos throughput)
Ohio GPOR Water Dedication within 15 mile perimeter
around water distribution system in Ohio
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
11 wwwriceenergycom
Industry-Leading Throughput Growth4Q 2015 throughput of ~1027 MDthd through RICE and RMP midstream systems (25 3rd Party)
RMP System 703 MDthd (18 3rd Party) RICE OH System 323 MDthd (40 3rd Party)
0
200000
400000
600000
800000
1000000
1200000
Dthd
RMP - Rice Operated (PA) RMP - 3rd Party (PA) RICE - Rice Operated (OH) RICE - 3rd Party (OH)
Average Throughput (MDthd)
2010 2011 2012 2013 2014 2015
Throughput 4 18 61 176 409 894
YoY Growth 350 238 188 133 119
(1)
__________________________1 PA 3rd party volumes as of April 2014 close of Momentum asset acquisition
RMP AND RICE OH MIDSTREAM HISTORICAL THROUGHPUT
12 wwwriceenergycom
Attractive Drop Down Potential ndash OH Gathering
__________________________1 As of February 24 20162 As of December 31 2015
RMH OVERVIEW
OH gas gathering system of over 20 MMDthd design capacity
Gathering throughput driven by SE OH technical leaders
~65 of 2016E throughput from RICE volumes and ~35 from GPOR(1)
Will access TETCO REX ET Rover and DEO to deliver gas to Gulf Coast and Midwest markets
2016 GUIDANCE(1)
2016E EBITDA of $40MM -$45MM
2016 capex budget of $155MM
Constructing ~30 miles of gathering pipeline in 2016
Premier Midstream Systems in Prolific Dry Gas Utica Core Adds to Inventory of Drop Down Candidates
GATHERING SYSTEM INFORMATION
DedicatedGross
Acreage(2)
4Q 2015 Throughput
(MDthd)
RICE OH Gathering 58000 323
Strike Force JV 75000 -
Total 133000 323
Belmont
Monroe
OHIO
WEST VIRGINIA
OH PA
WV
LegendRICE Ohio Gathering Pipeline RICE Ohio Gathering Pipeline to be Constructed
GPOR Dedicated to RICERICE Acreage Dedicated to 3rd
Party
Strike Force JV AMI
13 wwwriceenergycom
Attractive Drop Down Potential ndash Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE
RICE and GPOR completed the formation of Utica Shale strategic midstream JV (ldquoStrike Forcerdquo)
Provide gas gathering and compression services to GPORrsquos Eastern Belmont and Monroe acreage in Ohio
Supported by long-term fee-based service agreements with GPOR
Ownership RICE 75 and GPOR 25 with RICE to construct and operate all JV assets
Dry gas gathering system with capacity to gather up to 18 MMDthd
System will consist of ~165 miles of high and low pressure 12rdquo ndash 24rdquo gathering pipelines with multiple interconnections to Rockies Express ET Rover TETCO Dominion East Ohio and other future pipelines
~50000 horsepower of compression for gathering and delivery into various downstream interstate pipelines
GPOR dedicated ~75000 leasehold acres within the Strike Force AMI of ~319000 acres
Constructing Extensive Dry Gas Gathering and Water Systems in One of the Most Prolific Natural Gas Plays
Strike Force strengthens Ricersquos leading midstream position in the core of the Utica Shale
Expands relationship with GPOR across its premier position in the dry gas Utica Shale
Achieves efficiencies of simultaneous development of gathering and compression
Leverages existing footprint to grow 3rd party business and pursue additional 3rd party opportunities within a ~319000-acre AMI
System designed to accommodate future growth
Significantly adds to RICErsquos attractive inventory of drop down candidates
PHASE 1 COMPLETED AHEAD OF SCHEDULE AND FIRST FLOW
COMMENCED ON FEBRUARY 1 2016
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
$ in millions except per share data as of 123115
2015 Capital Budget (in millions)
Common Units
42
Subordinated Units
29
Gas Gathering
$ 85
Total Units Outstanding (MM)
71
Compression
$ 90
Price as of 123115
$1349
Total Expansion Capex
$ 175
Market Capitalization
$957
Maintenance Capex
$ 5
Cash
8
Total Capital Expenditures
$ 180
Revolving credit facility
143
Enterprise Value
$1108
Guidance
Adjusted EBITDA (in millions)
$55 $60
Third Party
20
Leverage Statistics
Distributable Cash Flow (in millions)
$48 $53
4Q15 Net Debt RR EBITDA
18x
Average DCF Coverage Ratio
11x 12x
EBITDA Interest
NM
Annualized Distribution ($ per unit)
$075
Debt to EBITDA Covenant
475x
Liquidity Summary
RMP Units Owned
Revolving credit facility
$450
of RMP Units - Public
50
Less amount drawn
143
of RMP Units - RICE
50
Availability under RCF
$307
of RMP IDRs - RICE
100
Plus cash on hand
8
Liquidity as of 123115
$315
Three Months Ended
($ in thousands)
March 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 9068
Interest expense
394
Depreciation expense
1449
Amortization of intangible assets
408
Non-cash stock compensation expense
996
Amortization of deferred financing costs
144
Adjusted EBITDA
$ 12459
Cash interest expense
(394)
Estimated maintenance capital expenditures
(1120)
Distributable cash flow
$ 10945
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 12459
Interest expense
$ (394)
Changes in operating assets and liabilities which provided cash
(12134)
Net cash used in operating activities
$ (69)
Three Months Ended
($ in millions except per unit data)
March 31 2015
Affiliate gathering volumes (MDthd)
557
Third-party gathering volumes (MDthd)
98
Total gathering volumes (MDthd)
655
Total operating revenues
$ 20
Operating expenses
67
Total operating income
$ 13
Adjusted EBITDA
$ 17
Distributable cash flow
$ 15
DCF unit
$ 02624
Distribution declared
$ 11
Distribution unit
$ 01905
Coverage ratio
138x
Three Months Ended
($ in millions)
December 31 2015
Revolver capacity
$450
Less Borrowings
143
Plus Cash and cash equivalents
8
Liquidity
$315
Three Months Ended
($ in thousands)
March 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 9068
Interest expense
394
Depreciation expense
1449
Amortization of intangible assets
408
Non-cash stock compensation expense
996
Amortization of deferred financing costs
144
Adjusted EBITDA
$ 12459
Cash interest expense
(394)
Estimated maintenance capital expenditures
(1120)
Distributable cash flow
$ 10945
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 12459
Interest expense
$ (394)
Changes in operating assets and liabilities which provided cash
(12134)
Net cash used in operating activities
$ (69)
Three Months Ended
($ in millions except per unit data)
December 31 2015
Affiliate gathering volumes (MDthd)
577
Third-party gathering volumes (MDthd)
126
Total gathering volumes (MDthd)
703
Water service volumes (MMgal)
202
Total operating revenues
$29314
Total operating expenses
$15538
Total operating income
$13776
Adjusted EBITDA
$19065
Distributable cash flow
$16997
DCF unit
$024
Distribution declared
$13935
Distribution unit
$01965
70917372
DCF coverage ratio
122x
($ in millions)
Revolver capacity
$ 450
Less Borrowings
30
Plus Cash and cash equivalents
mdash
Liquidity
$ 420
6 wwwriceenergycom
RMP Financial Overview
2016 GUIDANCE(1)
$ in millions except per share data as of 123115Common Units 42 Subordinated Units 29
Total Units Outstanding (MM) 71 Price as of 123115 $1349
Leverage Statistics4Q15 Net Debt RR EBITDA 18xEBITDA Interest NMDebt to EBITDA Covenant 475x
Liquidity SummaryRevolving credit facility $450Less amount drawn 143 Availability under RCF $307Plus cash on hand 8 Liquidity as of 123115 $315
__________________________1 As of February 24 2016
CAPITALIZATION AND LIQUIDITY AT 123115
Capital Expenditure ($MM)Gas Gathering and Compression $ 140 Water Services $ 10 Total Capital Expenditures $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($MM) 15$ - 18$
Adjusted EBITDA ($MM)Gas gathering and compression 85$ - 90$ Water business 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($MM) 90$ 100$ Average DCF Coverage Ratio 13x 15x Distribution Growth
Guidance
20 - 25
20
Sheet1
7 wwwriceenergycom
RICE and RMP Organizational Structure
DE
PA Water
Rice Olympus Midstream
(OH Gathering)
59 LP interest
Rice Midstream Holdings LLC
Public Unitholders
Strike Force Midstream (GPOR JV)
ROFOAssets
OH WaterPA Gathering
$300MM Credit Facility +
$450MM Credit Facility
$750MM Credit Facility
$100MM Accordion Feature
EIG Managed Funds
GP Holdings(IDRs and LP Interest)
825 common
equity interest
100 Series B Preferred Equity
($375MM invested)
75 equity interest
100 Series A Common Equity
41 LP interest 100 of IDRs
RMP GP(non-economic)
100 equity interest100 ownership9175 common
equity interest
8 wwwriceenergycom
RMP High Growth MLP in Prolific Appalachian Basin
__________________________1 As of February 24 20162 As of December 31 2015 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these
counties excluding the first 400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
RMP OVERVIEW
PA gas gathering system of over 40 MMDthd design capacity
Oversized to accommodate future growth and emerging PA Utica potential
Gathering throughput driven by SW PA technical leaders
~80 of 2016E throughput from RICE operated volumes and ~20 from 3rd parties primarily EQT
2016 GUIDANCE(1)
2016E EBITDA of $110MM -$120MM
2016 capex budget of $150MM
$140MM gathering and compression
$10MM water services
RMP constructing ~15 miles of gathering pipeline in 2016
RMP installing compression for RICE in 1H16 that will start generating revenue mid-2016
GATHERING SYSTEM INFORMATION
Dedicated GrossAcreage(2)
4Q 2015 Throughput
(MDthd)2016E Capex
($MM)(1)
RMP 114000 703 $150
Concentrated Prolific Position to Drive Targeted 20 Distribution Growth
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
9 wwwriceenergycom
RMP Gathering and Water System Build-out
PA gathering system oversized to accommodate future growth and emerging PA Utica potential
Mileage 128 miles by YE16
Total Design Capacity over 40 MMDthd
Substantially all of RICErsquos drilling locations within the RMP dedication will be within 2 miles of the completed PA gathering system
112 miles of water pipeline to deliver fresh water to well pads for completions
152 million gallons of water impoundment capacity
SUMMARY
RMPrsquos midstream system has grown significantly since 2013
2013
2014 2015
RMP Gathering Pipeline RMP Gathering Pipeline to be Constructed RMP Water Pipeline RMP Water Pipeline to be Constructed RICE Acreage
2012
3rd Party Dedicated to RMP
2016E
10 wwwriceenergycom
RMP 3rd Party Dedications from Top Operators in the Basin
SYSTEM MAP
RMPrsquos Assets are Well Positioned to Capture 3rd Party Growth
3rd Party Gathering Dedication SummaryPA
Dedicated Acreage 21000
Gatherer RMP
3Q 2015 Throughput (MDthd) 127
Contract Term ~10 years (wtd avg)
Gathering Compression Fee ($Dth)
$043(1) varies
__________________________1 Calculated based on weighted average historic throughput
OVERVIEW
High quality 3rd party operators with active development programs
EQT and GPOR (primary 3rd party customers) are technical leaders with strong balance sheets and attractive firm transportation portfolios and hedges to support development
Pennsylvania
~21000 gross acres dedicated
127 MDthd gathered in 4Q 2015 (18 of RMPrsquos throughput)
Ohio GPOR Water Dedication within 15 mile perimeter
around water distribution system in Ohio
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
11 wwwriceenergycom
Industry-Leading Throughput Growth4Q 2015 throughput of ~1027 MDthd through RICE and RMP midstream systems (25 3rd Party)
RMP System 703 MDthd (18 3rd Party) RICE OH System 323 MDthd (40 3rd Party)
0
200000
400000
600000
800000
1000000
1200000
Dthd
RMP - Rice Operated (PA) RMP - 3rd Party (PA) RICE - Rice Operated (OH) RICE - 3rd Party (OH)
Average Throughput (MDthd)
2010 2011 2012 2013 2014 2015
Throughput 4 18 61 176 409 894
YoY Growth 350 238 188 133 119
(1)
__________________________1 PA 3rd party volumes as of April 2014 close of Momentum asset acquisition
RMP AND RICE OH MIDSTREAM HISTORICAL THROUGHPUT
12 wwwriceenergycom
Attractive Drop Down Potential ndash OH Gathering
__________________________1 As of February 24 20162 As of December 31 2015
RMH OVERVIEW
OH gas gathering system of over 20 MMDthd design capacity
Gathering throughput driven by SE OH technical leaders
~65 of 2016E throughput from RICE volumes and ~35 from GPOR(1)
Will access TETCO REX ET Rover and DEO to deliver gas to Gulf Coast and Midwest markets
2016 GUIDANCE(1)
2016E EBITDA of $40MM -$45MM
2016 capex budget of $155MM
Constructing ~30 miles of gathering pipeline in 2016
Premier Midstream Systems in Prolific Dry Gas Utica Core Adds to Inventory of Drop Down Candidates
GATHERING SYSTEM INFORMATION
DedicatedGross
Acreage(2)
4Q 2015 Throughput
(MDthd)
RICE OH Gathering 58000 323
Strike Force JV 75000 -
Total 133000 323
Belmont
Monroe
OHIO
WEST VIRGINIA
OH PA
WV
LegendRICE Ohio Gathering Pipeline RICE Ohio Gathering Pipeline to be Constructed
GPOR Dedicated to RICERICE Acreage Dedicated to 3rd
Party
Strike Force JV AMI
13 wwwriceenergycom
Attractive Drop Down Potential ndash Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE
RICE and GPOR completed the formation of Utica Shale strategic midstream JV (ldquoStrike Forcerdquo)
Provide gas gathering and compression services to GPORrsquos Eastern Belmont and Monroe acreage in Ohio
Supported by long-term fee-based service agreements with GPOR
Ownership RICE 75 and GPOR 25 with RICE to construct and operate all JV assets
Dry gas gathering system with capacity to gather up to 18 MMDthd
System will consist of ~165 miles of high and low pressure 12rdquo ndash 24rdquo gathering pipelines with multiple interconnections to Rockies Express ET Rover TETCO Dominion East Ohio and other future pipelines
~50000 horsepower of compression for gathering and delivery into various downstream interstate pipelines
GPOR dedicated ~75000 leasehold acres within the Strike Force AMI of ~319000 acres
Constructing Extensive Dry Gas Gathering and Water Systems in One of the Most Prolific Natural Gas Plays
Strike Force strengthens Ricersquos leading midstream position in the core of the Utica Shale
Expands relationship with GPOR across its premier position in the dry gas Utica Shale
Achieves efficiencies of simultaneous development of gathering and compression
Leverages existing footprint to grow 3rd party business and pursue additional 3rd party opportunities within a ~319000-acre AMI
System designed to accommodate future growth
Significantly adds to RICErsquos attractive inventory of drop down candidates
PHASE 1 COMPLETED AHEAD OF SCHEDULE AND FIRST FLOW
COMMENCED ON FEBRUARY 1 2016
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
$ in millions except per share data as of 123115
2015 Capital Budget (in millions)
Common Units
42
Subordinated Units
29
Gas Gathering
$ 85
Total Units Outstanding (MM)
71
Compression
$ 90
Price as of 123115
$1349
Total Expansion Capex
$ 175
Market Capitalization
$957
Maintenance Capex
$ 5
Cash
8
Total Capital Expenditures
$ 180
Revolving credit facility
143
Enterprise Value
$1108
Guidance
Adjusted EBITDA (in millions)
$55 $60
Third Party
20
Leverage Statistics
Distributable Cash Flow (in millions)
$48 $53
4Q15 Net Debt RR EBITDA
18x
Average DCF Coverage Ratio
11x 12x
EBITDA Interest
NM
Annualized Distribution ($ per unit)
$075
Debt to EBITDA Covenant
475x
Liquidity Summary
RMP Units Owned
Revolving credit facility
$450
of RMP Units - Public
50
Less amount drawn
143
of RMP Units - RICE
50
Availability under RCF
$307
of RMP IDRs - RICE
100
Plus cash on hand
8
Liquidity as of 123115
$315
7 wwwriceenergycom
RICE and RMP Organizational Structure
DE
PA Water
Rice Olympus Midstream
(OH Gathering)
59 LP interest
Rice Midstream Holdings LLC
Public Unitholders
Strike Force Midstream (GPOR JV)
ROFOAssets
OH WaterPA Gathering
$300MM Credit Facility +
$450MM Credit Facility
$750MM Credit Facility
$100MM Accordion Feature
EIG Managed Funds
GP Holdings(IDRs and LP Interest)
825 common
equity interest
100 Series B Preferred Equity
($375MM invested)
75 equity interest
100 Series A Common Equity
41 LP interest 100 of IDRs
RMP GP(non-economic)
100 equity interest100 ownership9175 common
equity interest
8 wwwriceenergycom
RMP High Growth MLP in Prolific Appalachian Basin
__________________________1 As of February 24 20162 As of December 31 2015 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these
counties excluding the first 400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
RMP OVERVIEW
PA gas gathering system of over 40 MMDthd design capacity
Oversized to accommodate future growth and emerging PA Utica potential
Gathering throughput driven by SW PA technical leaders
~80 of 2016E throughput from RICE operated volumes and ~20 from 3rd parties primarily EQT
2016 GUIDANCE(1)
2016E EBITDA of $110MM -$120MM
2016 capex budget of $150MM
$140MM gathering and compression
$10MM water services
RMP constructing ~15 miles of gathering pipeline in 2016
RMP installing compression for RICE in 1H16 that will start generating revenue mid-2016
GATHERING SYSTEM INFORMATION
Dedicated GrossAcreage(2)
4Q 2015 Throughput
(MDthd)2016E Capex
($MM)(1)
RMP 114000 703 $150
Concentrated Prolific Position to Drive Targeted 20 Distribution Growth
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
9 wwwriceenergycom
RMP Gathering and Water System Build-out
PA gathering system oversized to accommodate future growth and emerging PA Utica potential
Mileage 128 miles by YE16
Total Design Capacity over 40 MMDthd
Substantially all of RICErsquos drilling locations within the RMP dedication will be within 2 miles of the completed PA gathering system
112 miles of water pipeline to deliver fresh water to well pads for completions
152 million gallons of water impoundment capacity
SUMMARY
RMPrsquos midstream system has grown significantly since 2013
2013
2014 2015
RMP Gathering Pipeline RMP Gathering Pipeline to be Constructed RMP Water Pipeline RMP Water Pipeline to be Constructed RICE Acreage
2012
3rd Party Dedicated to RMP
2016E
10 wwwriceenergycom
RMP 3rd Party Dedications from Top Operators in the Basin
SYSTEM MAP
RMPrsquos Assets are Well Positioned to Capture 3rd Party Growth
3rd Party Gathering Dedication SummaryPA
Dedicated Acreage 21000
Gatherer RMP
3Q 2015 Throughput (MDthd) 127
Contract Term ~10 years (wtd avg)
Gathering Compression Fee ($Dth)
$043(1) varies
__________________________1 Calculated based on weighted average historic throughput
OVERVIEW
High quality 3rd party operators with active development programs
EQT and GPOR (primary 3rd party customers) are technical leaders with strong balance sheets and attractive firm transportation portfolios and hedges to support development
Pennsylvania
~21000 gross acres dedicated
127 MDthd gathered in 4Q 2015 (18 of RMPrsquos throughput)
Ohio GPOR Water Dedication within 15 mile perimeter
around water distribution system in Ohio
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
11 wwwriceenergycom
Industry-Leading Throughput Growth4Q 2015 throughput of ~1027 MDthd through RICE and RMP midstream systems (25 3rd Party)
RMP System 703 MDthd (18 3rd Party) RICE OH System 323 MDthd (40 3rd Party)
0
200000
400000
600000
800000
1000000
1200000
Dthd
RMP - Rice Operated (PA) RMP - 3rd Party (PA) RICE - Rice Operated (OH) RICE - 3rd Party (OH)
Average Throughput (MDthd)
2010 2011 2012 2013 2014 2015
Throughput 4 18 61 176 409 894
YoY Growth 350 238 188 133 119
(1)
__________________________1 PA 3rd party volumes as of April 2014 close of Momentum asset acquisition
RMP AND RICE OH MIDSTREAM HISTORICAL THROUGHPUT
12 wwwriceenergycom
Attractive Drop Down Potential ndash OH Gathering
__________________________1 As of February 24 20162 As of December 31 2015
RMH OVERVIEW
OH gas gathering system of over 20 MMDthd design capacity
Gathering throughput driven by SE OH technical leaders
~65 of 2016E throughput from RICE volumes and ~35 from GPOR(1)
Will access TETCO REX ET Rover and DEO to deliver gas to Gulf Coast and Midwest markets
2016 GUIDANCE(1)
2016E EBITDA of $40MM -$45MM
2016 capex budget of $155MM
Constructing ~30 miles of gathering pipeline in 2016
Premier Midstream Systems in Prolific Dry Gas Utica Core Adds to Inventory of Drop Down Candidates
GATHERING SYSTEM INFORMATION
DedicatedGross
Acreage(2)
4Q 2015 Throughput
(MDthd)
RICE OH Gathering 58000 323
Strike Force JV 75000 -
Total 133000 323
Belmont
Monroe
OHIO
WEST VIRGINIA
OH PA
WV
LegendRICE Ohio Gathering Pipeline RICE Ohio Gathering Pipeline to be Constructed
GPOR Dedicated to RICERICE Acreage Dedicated to 3rd
Party
Strike Force JV AMI
13 wwwriceenergycom
Attractive Drop Down Potential ndash Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE
RICE and GPOR completed the formation of Utica Shale strategic midstream JV (ldquoStrike Forcerdquo)
Provide gas gathering and compression services to GPORrsquos Eastern Belmont and Monroe acreage in Ohio
Supported by long-term fee-based service agreements with GPOR
Ownership RICE 75 and GPOR 25 with RICE to construct and operate all JV assets
Dry gas gathering system with capacity to gather up to 18 MMDthd
System will consist of ~165 miles of high and low pressure 12rdquo ndash 24rdquo gathering pipelines with multiple interconnections to Rockies Express ET Rover TETCO Dominion East Ohio and other future pipelines
~50000 horsepower of compression for gathering and delivery into various downstream interstate pipelines
GPOR dedicated ~75000 leasehold acres within the Strike Force AMI of ~319000 acres
Constructing Extensive Dry Gas Gathering and Water Systems in One of the Most Prolific Natural Gas Plays
Strike Force strengthens Ricersquos leading midstream position in the core of the Utica Shale
Expands relationship with GPOR across its premier position in the dry gas Utica Shale
Achieves efficiencies of simultaneous development of gathering and compression
Leverages existing footprint to grow 3rd party business and pursue additional 3rd party opportunities within a ~319000-acre AMI
System designed to accommodate future growth
Significantly adds to RICErsquos attractive inventory of drop down candidates
PHASE 1 COMPLETED AHEAD OF SCHEDULE AND FIRST FLOW
COMMENCED ON FEBRUARY 1 2016
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
8 wwwriceenergycom
RMP High Growth MLP in Prolific Appalachian Basin
__________________________1 As of February 24 20162 As of December 31 2015 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these
counties excluding the first 400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
RMP OVERVIEW
PA gas gathering system of over 40 MMDthd design capacity
Oversized to accommodate future growth and emerging PA Utica potential
Gathering throughput driven by SW PA technical leaders
~80 of 2016E throughput from RICE operated volumes and ~20 from 3rd parties primarily EQT
2016 GUIDANCE(1)
2016E EBITDA of $110MM -$120MM
2016 capex budget of $150MM
$140MM gathering and compression
$10MM water services
RMP constructing ~15 miles of gathering pipeline in 2016
RMP installing compression for RICE in 1H16 that will start generating revenue mid-2016
GATHERING SYSTEM INFORMATION
Dedicated GrossAcreage(2)
4Q 2015 Throughput
(MDthd)2016E Capex
($MM)(1)
RMP 114000 703 $150
Concentrated Prolific Position to Drive Targeted 20 Distribution Growth
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
9 wwwriceenergycom
RMP Gathering and Water System Build-out
PA gathering system oversized to accommodate future growth and emerging PA Utica potential
Mileage 128 miles by YE16
Total Design Capacity over 40 MMDthd
Substantially all of RICErsquos drilling locations within the RMP dedication will be within 2 miles of the completed PA gathering system
112 miles of water pipeline to deliver fresh water to well pads for completions
152 million gallons of water impoundment capacity
SUMMARY
RMPrsquos midstream system has grown significantly since 2013
2013
2014 2015
RMP Gathering Pipeline RMP Gathering Pipeline to be Constructed RMP Water Pipeline RMP Water Pipeline to be Constructed RICE Acreage
2012
3rd Party Dedicated to RMP
2016E
10 wwwriceenergycom
RMP 3rd Party Dedications from Top Operators in the Basin
SYSTEM MAP
RMPrsquos Assets are Well Positioned to Capture 3rd Party Growth
3rd Party Gathering Dedication SummaryPA
Dedicated Acreage 21000
Gatherer RMP
3Q 2015 Throughput (MDthd) 127
Contract Term ~10 years (wtd avg)
Gathering Compression Fee ($Dth)
$043(1) varies
__________________________1 Calculated based on weighted average historic throughput
OVERVIEW
High quality 3rd party operators with active development programs
EQT and GPOR (primary 3rd party customers) are technical leaders with strong balance sheets and attractive firm transportation portfolios and hedges to support development
Pennsylvania
~21000 gross acres dedicated
127 MDthd gathered in 4Q 2015 (18 of RMPrsquos throughput)
Ohio GPOR Water Dedication within 15 mile perimeter
around water distribution system in Ohio
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
11 wwwriceenergycom
Industry-Leading Throughput Growth4Q 2015 throughput of ~1027 MDthd through RICE and RMP midstream systems (25 3rd Party)
RMP System 703 MDthd (18 3rd Party) RICE OH System 323 MDthd (40 3rd Party)
0
200000
400000
600000
800000
1000000
1200000
Dthd
RMP - Rice Operated (PA) RMP - 3rd Party (PA) RICE - Rice Operated (OH) RICE - 3rd Party (OH)
Average Throughput (MDthd)
2010 2011 2012 2013 2014 2015
Throughput 4 18 61 176 409 894
YoY Growth 350 238 188 133 119
(1)
__________________________1 PA 3rd party volumes as of April 2014 close of Momentum asset acquisition
RMP AND RICE OH MIDSTREAM HISTORICAL THROUGHPUT
12 wwwriceenergycom
Attractive Drop Down Potential ndash OH Gathering
__________________________1 As of February 24 20162 As of December 31 2015
RMH OVERVIEW
OH gas gathering system of over 20 MMDthd design capacity
Gathering throughput driven by SE OH technical leaders
~65 of 2016E throughput from RICE volumes and ~35 from GPOR(1)
Will access TETCO REX ET Rover and DEO to deliver gas to Gulf Coast and Midwest markets
2016 GUIDANCE(1)
2016E EBITDA of $40MM -$45MM
2016 capex budget of $155MM
Constructing ~30 miles of gathering pipeline in 2016
Premier Midstream Systems in Prolific Dry Gas Utica Core Adds to Inventory of Drop Down Candidates
GATHERING SYSTEM INFORMATION
DedicatedGross
Acreage(2)
4Q 2015 Throughput
(MDthd)
RICE OH Gathering 58000 323
Strike Force JV 75000 -
Total 133000 323
Belmont
Monroe
OHIO
WEST VIRGINIA
OH PA
WV
LegendRICE Ohio Gathering Pipeline RICE Ohio Gathering Pipeline to be Constructed
GPOR Dedicated to RICERICE Acreage Dedicated to 3rd
Party
Strike Force JV AMI
13 wwwriceenergycom
Attractive Drop Down Potential ndash Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE
RICE and GPOR completed the formation of Utica Shale strategic midstream JV (ldquoStrike Forcerdquo)
Provide gas gathering and compression services to GPORrsquos Eastern Belmont and Monroe acreage in Ohio
Supported by long-term fee-based service agreements with GPOR
Ownership RICE 75 and GPOR 25 with RICE to construct and operate all JV assets
Dry gas gathering system with capacity to gather up to 18 MMDthd
System will consist of ~165 miles of high and low pressure 12rdquo ndash 24rdquo gathering pipelines with multiple interconnections to Rockies Express ET Rover TETCO Dominion East Ohio and other future pipelines
~50000 horsepower of compression for gathering and delivery into various downstream interstate pipelines
GPOR dedicated ~75000 leasehold acres within the Strike Force AMI of ~319000 acres
Constructing Extensive Dry Gas Gathering and Water Systems in One of the Most Prolific Natural Gas Plays
Strike Force strengthens Ricersquos leading midstream position in the core of the Utica Shale
Expands relationship with GPOR across its premier position in the dry gas Utica Shale
Achieves efficiencies of simultaneous development of gathering and compression
Leverages existing footprint to grow 3rd party business and pursue additional 3rd party opportunities within a ~319000-acre AMI
System designed to accommodate future growth
Significantly adds to RICErsquos attractive inventory of drop down candidates
PHASE 1 COMPLETED AHEAD OF SCHEDULE AND FIRST FLOW
COMMENCED ON FEBRUARY 1 2016
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
9 wwwriceenergycom
RMP Gathering and Water System Build-out
PA gathering system oversized to accommodate future growth and emerging PA Utica potential
Mileage 128 miles by YE16
Total Design Capacity over 40 MMDthd
Substantially all of RICErsquos drilling locations within the RMP dedication will be within 2 miles of the completed PA gathering system
112 miles of water pipeline to deliver fresh water to well pads for completions
152 million gallons of water impoundment capacity
SUMMARY
RMPrsquos midstream system has grown significantly since 2013
2013
2014 2015
RMP Gathering Pipeline RMP Gathering Pipeline to be Constructed RMP Water Pipeline RMP Water Pipeline to be Constructed RICE Acreage
2012
3rd Party Dedicated to RMP
2016E
10 wwwriceenergycom
RMP 3rd Party Dedications from Top Operators in the Basin
SYSTEM MAP
RMPrsquos Assets are Well Positioned to Capture 3rd Party Growth
3rd Party Gathering Dedication SummaryPA
Dedicated Acreage 21000
Gatherer RMP
3Q 2015 Throughput (MDthd) 127
Contract Term ~10 years (wtd avg)
Gathering Compression Fee ($Dth)
$043(1) varies
__________________________1 Calculated based on weighted average historic throughput
OVERVIEW
High quality 3rd party operators with active development programs
EQT and GPOR (primary 3rd party customers) are technical leaders with strong balance sheets and attractive firm transportation portfolios and hedges to support development
Pennsylvania
~21000 gross acres dedicated
127 MDthd gathered in 4Q 2015 (18 of RMPrsquos throughput)
Ohio GPOR Water Dedication within 15 mile perimeter
around water distribution system in Ohio
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
11 wwwriceenergycom
Industry-Leading Throughput Growth4Q 2015 throughput of ~1027 MDthd through RICE and RMP midstream systems (25 3rd Party)
RMP System 703 MDthd (18 3rd Party) RICE OH System 323 MDthd (40 3rd Party)
0
200000
400000
600000
800000
1000000
1200000
Dthd
RMP - Rice Operated (PA) RMP - 3rd Party (PA) RICE - Rice Operated (OH) RICE - 3rd Party (OH)
Average Throughput (MDthd)
2010 2011 2012 2013 2014 2015
Throughput 4 18 61 176 409 894
YoY Growth 350 238 188 133 119
(1)
__________________________1 PA 3rd party volumes as of April 2014 close of Momentum asset acquisition
RMP AND RICE OH MIDSTREAM HISTORICAL THROUGHPUT
12 wwwriceenergycom
Attractive Drop Down Potential ndash OH Gathering
__________________________1 As of February 24 20162 As of December 31 2015
RMH OVERVIEW
OH gas gathering system of over 20 MMDthd design capacity
Gathering throughput driven by SE OH technical leaders
~65 of 2016E throughput from RICE volumes and ~35 from GPOR(1)
Will access TETCO REX ET Rover and DEO to deliver gas to Gulf Coast and Midwest markets
2016 GUIDANCE(1)
2016E EBITDA of $40MM -$45MM
2016 capex budget of $155MM
Constructing ~30 miles of gathering pipeline in 2016
Premier Midstream Systems in Prolific Dry Gas Utica Core Adds to Inventory of Drop Down Candidates
GATHERING SYSTEM INFORMATION
DedicatedGross
Acreage(2)
4Q 2015 Throughput
(MDthd)
RICE OH Gathering 58000 323
Strike Force JV 75000 -
Total 133000 323
Belmont
Monroe
OHIO
WEST VIRGINIA
OH PA
WV
LegendRICE Ohio Gathering Pipeline RICE Ohio Gathering Pipeline to be Constructed
GPOR Dedicated to RICERICE Acreage Dedicated to 3rd
Party
Strike Force JV AMI
13 wwwriceenergycom
Attractive Drop Down Potential ndash Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE
RICE and GPOR completed the formation of Utica Shale strategic midstream JV (ldquoStrike Forcerdquo)
Provide gas gathering and compression services to GPORrsquos Eastern Belmont and Monroe acreage in Ohio
Supported by long-term fee-based service agreements with GPOR
Ownership RICE 75 and GPOR 25 with RICE to construct and operate all JV assets
Dry gas gathering system with capacity to gather up to 18 MMDthd
System will consist of ~165 miles of high and low pressure 12rdquo ndash 24rdquo gathering pipelines with multiple interconnections to Rockies Express ET Rover TETCO Dominion East Ohio and other future pipelines
~50000 horsepower of compression for gathering and delivery into various downstream interstate pipelines
GPOR dedicated ~75000 leasehold acres within the Strike Force AMI of ~319000 acres
Constructing Extensive Dry Gas Gathering and Water Systems in One of the Most Prolific Natural Gas Plays
Strike Force strengthens Ricersquos leading midstream position in the core of the Utica Shale
Expands relationship with GPOR across its premier position in the dry gas Utica Shale
Achieves efficiencies of simultaneous development of gathering and compression
Leverages existing footprint to grow 3rd party business and pursue additional 3rd party opportunities within a ~319000-acre AMI
System designed to accommodate future growth
Significantly adds to RICErsquos attractive inventory of drop down candidates
PHASE 1 COMPLETED AHEAD OF SCHEDULE AND FIRST FLOW
COMMENCED ON FEBRUARY 1 2016
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
10 wwwriceenergycom
RMP 3rd Party Dedications from Top Operators in the Basin
SYSTEM MAP
RMPrsquos Assets are Well Positioned to Capture 3rd Party Growth
3rd Party Gathering Dedication SummaryPA
Dedicated Acreage 21000
Gatherer RMP
3Q 2015 Throughput (MDthd) 127
Contract Term ~10 years (wtd avg)
Gathering Compression Fee ($Dth)
$043(1) varies
__________________________1 Calculated based on weighted average historic throughput
OVERVIEW
High quality 3rd party operators with active development programs
EQT and GPOR (primary 3rd party customers) are technical leaders with strong balance sheets and attractive firm transportation portfolios and hedges to support development
Pennsylvania
~21000 gross acres dedicated
127 MDthd gathered in 4Q 2015 (18 of RMPrsquos throughput)
Ohio GPOR Water Dedication within 15 mile perimeter
around water distribution system in Ohio
WEST VIRGINIA
OH PA
WV
Greene
Washington
PENNSYLVANIA
Belmont
WEST VIRGINIA
Beaver
Brooke
Legend
RMP Gathering Pipeline to be Constructed
RICE Acreage
RMP Gathering Pipeline
3rd Party Dedicated to RMP
RMP Water PipelineRMP Water Pipeline to be ConstructedRMP Water Interconnects
GPOR Water Dedication
RICE Western Greene Area
OHIO
11 wwwriceenergycom
Industry-Leading Throughput Growth4Q 2015 throughput of ~1027 MDthd through RICE and RMP midstream systems (25 3rd Party)
RMP System 703 MDthd (18 3rd Party) RICE OH System 323 MDthd (40 3rd Party)
0
200000
400000
600000
800000
1000000
1200000
Dthd
RMP - Rice Operated (PA) RMP - 3rd Party (PA) RICE - Rice Operated (OH) RICE - 3rd Party (OH)
Average Throughput (MDthd)
2010 2011 2012 2013 2014 2015
Throughput 4 18 61 176 409 894
YoY Growth 350 238 188 133 119
(1)
__________________________1 PA 3rd party volumes as of April 2014 close of Momentum asset acquisition
RMP AND RICE OH MIDSTREAM HISTORICAL THROUGHPUT
12 wwwriceenergycom
Attractive Drop Down Potential ndash OH Gathering
__________________________1 As of February 24 20162 As of December 31 2015
RMH OVERVIEW
OH gas gathering system of over 20 MMDthd design capacity
Gathering throughput driven by SE OH technical leaders
~65 of 2016E throughput from RICE volumes and ~35 from GPOR(1)
Will access TETCO REX ET Rover and DEO to deliver gas to Gulf Coast and Midwest markets
2016 GUIDANCE(1)
2016E EBITDA of $40MM -$45MM
2016 capex budget of $155MM
Constructing ~30 miles of gathering pipeline in 2016
Premier Midstream Systems in Prolific Dry Gas Utica Core Adds to Inventory of Drop Down Candidates
GATHERING SYSTEM INFORMATION
DedicatedGross
Acreage(2)
4Q 2015 Throughput
(MDthd)
RICE OH Gathering 58000 323
Strike Force JV 75000 -
Total 133000 323
Belmont
Monroe
OHIO
WEST VIRGINIA
OH PA
WV
LegendRICE Ohio Gathering Pipeline RICE Ohio Gathering Pipeline to be Constructed
GPOR Dedicated to RICERICE Acreage Dedicated to 3rd
Party
Strike Force JV AMI
13 wwwriceenergycom
Attractive Drop Down Potential ndash Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE
RICE and GPOR completed the formation of Utica Shale strategic midstream JV (ldquoStrike Forcerdquo)
Provide gas gathering and compression services to GPORrsquos Eastern Belmont and Monroe acreage in Ohio
Supported by long-term fee-based service agreements with GPOR
Ownership RICE 75 and GPOR 25 with RICE to construct and operate all JV assets
Dry gas gathering system with capacity to gather up to 18 MMDthd
System will consist of ~165 miles of high and low pressure 12rdquo ndash 24rdquo gathering pipelines with multiple interconnections to Rockies Express ET Rover TETCO Dominion East Ohio and other future pipelines
~50000 horsepower of compression for gathering and delivery into various downstream interstate pipelines
GPOR dedicated ~75000 leasehold acres within the Strike Force AMI of ~319000 acres
Constructing Extensive Dry Gas Gathering and Water Systems in One of the Most Prolific Natural Gas Plays
Strike Force strengthens Ricersquos leading midstream position in the core of the Utica Shale
Expands relationship with GPOR across its premier position in the dry gas Utica Shale
Achieves efficiencies of simultaneous development of gathering and compression
Leverages existing footprint to grow 3rd party business and pursue additional 3rd party opportunities within a ~319000-acre AMI
System designed to accommodate future growth
Significantly adds to RICErsquos attractive inventory of drop down candidates
PHASE 1 COMPLETED AHEAD OF SCHEDULE AND FIRST FLOW
COMMENCED ON FEBRUARY 1 2016
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
11 wwwriceenergycom
Industry-Leading Throughput Growth4Q 2015 throughput of ~1027 MDthd through RICE and RMP midstream systems (25 3rd Party)
RMP System 703 MDthd (18 3rd Party) RICE OH System 323 MDthd (40 3rd Party)
0
200000
400000
600000
800000
1000000
1200000
Dthd
RMP - Rice Operated (PA) RMP - 3rd Party (PA) RICE - Rice Operated (OH) RICE - 3rd Party (OH)
Average Throughput (MDthd)
2010 2011 2012 2013 2014 2015
Throughput 4 18 61 176 409 894
YoY Growth 350 238 188 133 119
(1)
__________________________1 PA 3rd party volumes as of April 2014 close of Momentum asset acquisition
RMP AND RICE OH MIDSTREAM HISTORICAL THROUGHPUT
12 wwwriceenergycom
Attractive Drop Down Potential ndash OH Gathering
__________________________1 As of February 24 20162 As of December 31 2015
RMH OVERVIEW
OH gas gathering system of over 20 MMDthd design capacity
Gathering throughput driven by SE OH technical leaders
~65 of 2016E throughput from RICE volumes and ~35 from GPOR(1)
Will access TETCO REX ET Rover and DEO to deliver gas to Gulf Coast and Midwest markets
2016 GUIDANCE(1)
2016E EBITDA of $40MM -$45MM
2016 capex budget of $155MM
Constructing ~30 miles of gathering pipeline in 2016
Premier Midstream Systems in Prolific Dry Gas Utica Core Adds to Inventory of Drop Down Candidates
GATHERING SYSTEM INFORMATION
DedicatedGross
Acreage(2)
4Q 2015 Throughput
(MDthd)
RICE OH Gathering 58000 323
Strike Force JV 75000 -
Total 133000 323
Belmont
Monroe
OHIO
WEST VIRGINIA
OH PA
WV
LegendRICE Ohio Gathering Pipeline RICE Ohio Gathering Pipeline to be Constructed
GPOR Dedicated to RICERICE Acreage Dedicated to 3rd
Party
Strike Force JV AMI
13 wwwriceenergycom
Attractive Drop Down Potential ndash Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE
RICE and GPOR completed the formation of Utica Shale strategic midstream JV (ldquoStrike Forcerdquo)
Provide gas gathering and compression services to GPORrsquos Eastern Belmont and Monroe acreage in Ohio
Supported by long-term fee-based service agreements with GPOR
Ownership RICE 75 and GPOR 25 with RICE to construct and operate all JV assets
Dry gas gathering system with capacity to gather up to 18 MMDthd
System will consist of ~165 miles of high and low pressure 12rdquo ndash 24rdquo gathering pipelines with multiple interconnections to Rockies Express ET Rover TETCO Dominion East Ohio and other future pipelines
~50000 horsepower of compression for gathering and delivery into various downstream interstate pipelines
GPOR dedicated ~75000 leasehold acres within the Strike Force AMI of ~319000 acres
Constructing Extensive Dry Gas Gathering and Water Systems in One of the Most Prolific Natural Gas Plays
Strike Force strengthens Ricersquos leading midstream position in the core of the Utica Shale
Expands relationship with GPOR across its premier position in the dry gas Utica Shale
Achieves efficiencies of simultaneous development of gathering and compression
Leverages existing footprint to grow 3rd party business and pursue additional 3rd party opportunities within a ~319000-acre AMI
System designed to accommodate future growth
Significantly adds to RICErsquos attractive inventory of drop down candidates
PHASE 1 COMPLETED AHEAD OF SCHEDULE AND FIRST FLOW
COMMENCED ON FEBRUARY 1 2016
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
12 wwwriceenergycom
Attractive Drop Down Potential ndash OH Gathering
__________________________1 As of February 24 20162 As of December 31 2015
RMH OVERVIEW
OH gas gathering system of over 20 MMDthd design capacity
Gathering throughput driven by SE OH technical leaders
~65 of 2016E throughput from RICE volumes and ~35 from GPOR(1)
Will access TETCO REX ET Rover and DEO to deliver gas to Gulf Coast and Midwest markets
2016 GUIDANCE(1)
2016E EBITDA of $40MM -$45MM
2016 capex budget of $155MM
Constructing ~30 miles of gathering pipeline in 2016
Premier Midstream Systems in Prolific Dry Gas Utica Core Adds to Inventory of Drop Down Candidates
GATHERING SYSTEM INFORMATION
DedicatedGross
Acreage(2)
4Q 2015 Throughput
(MDthd)
RICE OH Gathering 58000 323
Strike Force JV 75000 -
Total 133000 323
Belmont
Monroe
OHIO
WEST VIRGINIA
OH PA
WV
LegendRICE Ohio Gathering Pipeline RICE Ohio Gathering Pipeline to be Constructed
GPOR Dedicated to RICERICE Acreage Dedicated to 3rd
Party
Strike Force JV AMI
13 wwwriceenergycom
Attractive Drop Down Potential ndash Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE
RICE and GPOR completed the formation of Utica Shale strategic midstream JV (ldquoStrike Forcerdquo)
Provide gas gathering and compression services to GPORrsquos Eastern Belmont and Monroe acreage in Ohio
Supported by long-term fee-based service agreements with GPOR
Ownership RICE 75 and GPOR 25 with RICE to construct and operate all JV assets
Dry gas gathering system with capacity to gather up to 18 MMDthd
System will consist of ~165 miles of high and low pressure 12rdquo ndash 24rdquo gathering pipelines with multiple interconnections to Rockies Express ET Rover TETCO Dominion East Ohio and other future pipelines
~50000 horsepower of compression for gathering and delivery into various downstream interstate pipelines
GPOR dedicated ~75000 leasehold acres within the Strike Force AMI of ~319000 acres
Constructing Extensive Dry Gas Gathering and Water Systems in One of the Most Prolific Natural Gas Plays
Strike Force strengthens Ricersquos leading midstream position in the core of the Utica Shale
Expands relationship with GPOR across its premier position in the dry gas Utica Shale
Achieves efficiencies of simultaneous development of gathering and compression
Leverages existing footprint to grow 3rd party business and pursue additional 3rd party opportunities within a ~319000-acre AMI
System designed to accommodate future growth
Significantly adds to RICErsquos attractive inventory of drop down candidates
PHASE 1 COMPLETED AHEAD OF SCHEDULE AND FIRST FLOW
COMMENCED ON FEBRUARY 1 2016
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
13 wwwriceenergycom
Attractive Drop Down Potential ndash Strike Force JV TRANSACTION OVERVIEW STRATEGIC RATIONALE
RICE and GPOR completed the formation of Utica Shale strategic midstream JV (ldquoStrike Forcerdquo)
Provide gas gathering and compression services to GPORrsquos Eastern Belmont and Monroe acreage in Ohio
Supported by long-term fee-based service agreements with GPOR
Ownership RICE 75 and GPOR 25 with RICE to construct and operate all JV assets
Dry gas gathering system with capacity to gather up to 18 MMDthd
System will consist of ~165 miles of high and low pressure 12rdquo ndash 24rdquo gathering pipelines with multiple interconnections to Rockies Express ET Rover TETCO Dominion East Ohio and other future pipelines
~50000 horsepower of compression for gathering and delivery into various downstream interstate pipelines
GPOR dedicated ~75000 leasehold acres within the Strike Force AMI of ~319000 acres
Constructing Extensive Dry Gas Gathering and Water Systems in One of the Most Prolific Natural Gas Plays
Strike Force strengthens Ricersquos leading midstream position in the core of the Utica Shale
Expands relationship with GPOR across its premier position in the dry gas Utica Shale
Achieves efficiencies of simultaneous development of gathering and compression
Leverages existing footprint to grow 3rd party business and pursue additional 3rd party opportunities within a ~319000-acre AMI
System designed to accommodate future growth
Significantly adds to RICErsquos attractive inventory of drop down candidates
PHASE 1 COMPLETED AHEAD OF SCHEDULE AND FIRST FLOW
COMMENCED ON FEBRUARY 1 2016
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
14 wwwriceenergycom
__________________________1 Assumes fee of $006 per gallon and operating expense of $0013 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral2 Assumes fee of $007 per gallon and operating expense of $0013 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Acquisition Assets ndash Integrated Water Services BusinessWATER SERVICES BUSINESS OVERVIEW WATER DISTRIBUTION SYSTEM MAP
Delivers fresh water to well pads for completions
Collects recycles or disposes of flowback and produced water for RICE amp 3rd parties
Volumetric fee structure to provide revenue amp cash flow stability
PENNSYLVANIA amp OHIO WATER SYSTEMS
PA trunk line substantially complete in 1Q15 and OH trunk line substantially complete in 3Q15
Trunk lines consist primarily of 24-30rdquo polyethylene pipe amp laterals consist of 18rdquo polyethylene pipe
~90 of 2016E PA volumes expected to come from RICE amp ~75 of 2016E OH volumes expected to come from RICE
PROJECTED FRESH WATER DELIVERY INFRASTRUCTURE
PA OH TOTAL
Water Pipeline (Miles) 64 48 112
Connected Sources (MMGPD) 87 107 194
Cash Operating Margin $517000(1) $963000(2) Water Pipeline Water Pipeline to be ConstructedRICE Acreage
WetzelPA
OH
Greene
Washington
Monroe Marshall
Harrison
Jefferson
Ohio
Brooke
BeaverAlleghenyCarroll
Belmont
Monongahela River
Withdrawal
Ohio RiverWithdrawal
OH PA
WVGPOR Water Dedication
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
15 wwwriceenergycom
Western Greene County Midstream Update
Development area located in western Greene County PA in the heart of the Marcellus dry gas core and the emerging super-deep dry gas Utica core
RMP will now gather all production above 40 MDthd
ndash Williams will provide Rice with gathering and compression services for the first ~40 MDthd of production from this area
Improvement to Ricersquos single well economicsndash ~45 increase in Marcellus PV10well(1) ~$7MM ~$10MMndash Rice also benefits economically from RMP distribution growth associated
with the organic growth opportunity
Strategically accretive to RMPndash Increases RMPrsquos acreage dedication from Rice Energy by 19000 Marcellus
acres (25 increase ~110 undeveloped net Marcellus wells) and 17000 Utica acres (~40 undeveloped Utica wells)
ndash RMP has acquired the necessary right-of-ways and has submitted permits in order to construct the header system
__________________________1 Increase PV10 due to assumed gathering and compression fee of $030dth and $007dth versus previous historical fees of $045dth and $012dth Actual midstream fees for this area to be determined Assumes $350 HHUB See appendix for single well return assumptions
PAWV
Washington
Greene
Rice Western Greene Area
RMP Proposed Gathering Trunkline
RICE has renegotiated its gathering agreement with Williams allowing RMP to provide gas gathering services for RICE in western Greene County PA
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
16 wwwriceenergycom
2015 Midstream System Statistics
__________________________1 The agreement between RICE and RMP covers approximately 93000 gross acres of the RICErsquos acreage position in the dry gas core of the Marcellus Shale in southwestern Pennsylvania as of December 31 2015 and any future acreage it acquires within these counties excluding the first
400 MDthd of RICErsquos production from approximately 19000 gross acres subject to a pre-existing third-party dedication2 Fees will be annually escalated based upon changes in the Consumer Price Index Compression fees are derived on a per stage basis3 Certain of RMPrsquos third-party contracts provided for an increase in the gathering fee RMP will receive upon completion of construction of an 18-mile 30 inch pipeline connecting its gathering system to TETCO which was completed in November 2014 Represents weighted average
based on historical throughput4 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system
based on a 9000rsquo lateral
RMP Assets
Pennsylvania Ohio
Gathering and Compression Statistics Gathering and Compression StatisticsDesign Gathering Capacity (MMDthd) gt 40 Design Gathering Capacity (MMDthd) gt 20
Acreage Dedications Acreage DedicationsRICE(1) 93000 RICE 380003rd Party 21000 3rd Party 20000
Total Acreage Dedications 114000 Total Acreage Dedications 58000
Midstream Fees Paid by RICE to RMP ($Dth) (2) Midstream Fees Paid by RICE to RICE OH ($Dth) (2)
Gathering $030 Gathering $030Compression (per stage of compression) $007 Compression (per stage of compression) $007
3rd Party Midstream Fees ($Dth) 3rd Party Midstream Fees ($Dth)Gathering (3) $043 Gathering undisclosedCompression vairies Compression undisclosed
Water Distribution System Statistics Water Distribution System StatisticsYE15 YE15
Connected Water Sources (MMGPD) 87 Connected Water Sources (MMGPD) 107Water Services Fee Paid by RICE ($gallon)(4) $006 Water Services Fee Paid by RICE ($gallon)(4) $007
Strike Force JV
Gathering and Compression StatisticsYE15 YE16
Gas Gathering Pipeline Mileage (miles) 7 29 AMI Acreage 319000GPOR Dedicated Acreage 75000
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
17 wwwriceenergycom
RICE Overview
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
18 wwwriceenergycom
Concentrated Core Upstream Assets
__________________________1 Net undeveloped locations as of 123115 See slide entitled ldquoAdditional Disclosuresrdquo on detail regarding RICErsquos methodology for the calculation of locations2 Strip as of 1416
92000
56000
449
175
Net Acres Daily ProductionUtica Core Marcellus Core
197000
Marcellus OH Utica
624 MMcfed
Washington
Greene
Belmont
PA Utica
Deep PA Utica Core
Premier EampP Company in the Lowest Cost Gas Shale Plays
100 of assets located in the cores of the Marcellus and Utica
Valuable production base of 624 MMcfed ($12bn PD + Hedge PV10)(2)
Low breakevens of $215MMBtu across Marcellus and dry-gas OH Utica
Strong hedge and FT portfolio provides protection from downcycles
Inventory (Wells)
10 Year Inventory from Marcellus and OH Utica with
upside from PA Utica
487
215
105 143
Developed
121
18
Producing Wells
143 Wells3 Geneseo1 PA Utica
Stacked Pay on PA Acreage
49000PA Utica
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
19 wwwriceenergycom
647 800
247
400
175
401
894
1200
2013 2014 2015 2016E
PA OH
$043 $031 $026
$055 $038 $036
$038
$038 $038
$044
$043 $034
$180
$150 $134
2013 2014 2015LOE and Taxes FT Gathering GampA
127 274
552 720
2013 2014 2015 2016E
249 644
1015 350
662
685
599
1306
1700
2013 2014 2015
PD PUD
$2457
$1651 $1450
2014 2015 2016E
$1439 $1237 $1181 $1150
2013 2014 2015 2016E
Track Record of Low-Cost GrowthPER UNIT CASH COSTS ($MCFE) (1)UTICA DampC COSTS ($FT)MARCELLUS DampC COSTS ($FT)
MIDSTREAM THROUGHPUT (MDTHD)NET PRODUCTION (MMCFED)PROVED RESERVES (BCFE)
__________________________1 EampP segment costs RICE gathering agreements in OH and PA began in 2015 Gathering fee per Mcfe applied to 2013 and 2014 to show a comparison on apples to apples basis
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
20 wwwriceenergycom
2016 budget positions RICE for success in 2016 and beyondndash Focused on balance sheet and EampP returns while creating significant future midstream valuendash 2016 DampC budget maintains clean balance sheet while investing in 2017
Financial Strength ndash Healthy balance sheet ample liquidity and robust hedgesndash Healthy Balance Sheet Expect to exit 2016 at 30x leverage with no dependence on drop downs or capital marketsndash Ample Liquidity $14bn of liquidity(1) $11B EampP and $300MM RMHndash Robust amp Attractive Hedges 87 of 2016 production hedged at $326MMBtu majority of 2017 production hedged at $314MMBtu
Highly concentrated acreage position in the most economic areas of the Marcellus and Utica Shalendash Core Locations 134 net producing wells (624 MMcfed in Q4rsquo15) + 487 net undeveloped Marcellus wells + 215 net undeveloped OH Utica wells + 105 net undeveloped PA Utica
wellsndash Resilient Economics Development and operating cost declines have driven avg breakeven PV-10 to ~$215MMBtu (~15 lower than 2015) ndash Compelling Returns in Challenging Market ~30 Pre-Hedge IRRs at strip pricing(2)
Midstream is a valuable and differentiated element of the RICE storyndash 1 Gatherer in the Dry Gas Core 247000 acres(3) dedicated from 3 of the 5 most active operators in SW Appalachiandash Unique Financial Advantages ~$10B of midstream monetizations and financings to date with ~$13B of estimated remaining drop down inventory and GP Holdings with expected
future value of $10B+ndash High Growth MLP RMP expects 20 distribution growth with current asset base while maintaining 13x-15x coverage in 2016
Firm Transportation (FT) Portfolio is right-sized for Ricersquos production growth and basis outlookndash Right-Sized FT covers gt80 of 2016 production and decreases to ~60 by 2020ndash Right Exposure Expect local basis to improve from $075 in 2016 (30 of production) to $050 in 2020 (~40 of production)
Well Positioned to Navigate Environment
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million2 Strip pricing as of 21916 See Economics slide for more detailed assumptions used to generate single well economics3 Excludes ~49K net PA Utica acres dedicated to RMP from RICE and additional PA Utica acreage dedicated to RMP from EQT
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
21 wwwriceenergycom
Healthy Balance Sheet Protected by Strong Hedge BookSUMMARY
LIQUIDITY
Ample Liquidity $14B of total liquidity YE15(1) consisting of $11bn of EampP liquidity and $300MM of RMH liquidity
Strong Balance Sheet and Financing EampP budget fully funded with cash flow and cash on hand (no dependence on drop-downs or capital markets) and ~30x levered throughout 2016
Attractive Hedge Bookndash 87 hedged in 2016 at wtd avg floor of $326MMBtundash 563 MMBtud hedged in 2017 at wtd avg floor of
$314MMBtu
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
$720
$30 $50
$650
$300 $310 $640
$155 $150
$1370
$330 $360
ndash
$200
$400
$600
$800
$1000
$1200
$1400
$1600YE15 Cash amp 2016E CFO
Undrawn Facility
CapEx
Rice EampP RMH RMP
662
563
285
150
$325
$314 $316 $311
$211
$253 $261 $266
ndash
$050
$100
$150
$200
$250
$300
$350
ndash
100
200
300
400
500
600
700
2016 2017 2018 2019
Hedged Volume Avg Wtd Fixed Price HHUB Strip
HEDGE SUMMARY
LEVERAGE
BBtud $MMBtu
20x
ndash
20x 20x
30x
15x
25x 25x
ndash
05x
10x
15x
20x
25x
30x
35x
Rice EampP MidstreamHoldings
RMP Consolidated
2015 Net Debt LQA EBITDA 2016 Net Debt LQA EBITDA
RMH
18x 18x 17x
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
22 wwwriceenergycom
825 common
equity interest
Strategic Preferred Investment
DE
Rice Olympus
Midstream (OH
Gathering)
100 Series B Preferred Equity
($375MM invested)
75 equity interest
9175 common equity interest
41 LP Interest100 of IDRs
RMP GP(non-economic)
100 Series A Common Equity
EIG Managed Funds
Rice Midstream Holdings LLC
Strike Force Midstream(GPOR JV)
GP Holdings(IDRs and LPs)
Transaction Highlightsndash Attractive cost of capital attributable to RMHrsquos midstream assets and future
GP Valuendash RICE cash flow + preferred proceeds fully fund 2016 EampP budget with no
additional debt incurredndash Highlights significant value of embedded midstreamndash Highlights symbiotic structure of upstream and midstream
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
Rice continues to drive down DampC and operating costs to maximize returns Inventory currently generates ~30 returns at strip(1) HHUB PV10 breakevens of $208-$218 HHUB
__________________________Note See appendix for summary of assumptions used to generate single well IRRs 750rsquo and Utica 1000rsquo economics assume EampP is burdened by 50 of the gathering and compression fee and 50 of water completion fees (RICE owns a 41 LP interest in RMP 100 of Rice Ohio Midstream and 100 of RMP IDRs)1 Strip as of 219162 See slide titled Western Greene County Midstream Update3 Excludes ~47 wet Utica net undeveloped locations and ~105 dry-gas PA Utica net undeveloped locations
Marcellus ChangesEconomicsbull DampCft decreased by 8bull Operating amp FT costs decreased by 25bull EURft increased by 9bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Pro forma for amended gathering
agreement reclassified ~110 net locations to ldquoMarcellusrdquo given change to economics(2)
Dry Gas Utica ChangesEconomicsbull DampCft decreased by 3bull Operating amp FT costs decreased by 25bull EURft decreased by 7bull 30 Pre-Hedge Single Well IRRs at StripLocationsbull Avg lateral length increased 1Krsquo and increased
well spacing to 1Krsquo results in fewer locations
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
24 wwwriceenergycom
Right-Sized Firm Transport PortfolioGrowing Exposure to an Improving Local Basis Market Right-Sized FT covers gt80 of 2016 takeaway volumes FT coverage decreases to ~60 in 2020 Right Exposure 30 of 2016 gas exposed to local markets when differentials are expected to be $075 growing to 40+ in 2020
when differentials are expected to tighten to ~$050 (1)
RICErsquoS RIGHT-SIZED FT PORTFOLIO amp ILLUSTRATIVE TAKEAWAY VOLUME GROWTH
Takeaway volumes = Volumes that fill firm transportation (2)
__________________________1 Illustrative takeaway volumes assume 2016 growth in-line with guidance In 2017+ low and high volume range grow at 7 and 20 respectively Volumes beyond 2016 are for illustrative purposes only and do not constitute guidance2 Takeaway volumes = gross PA and working interest OH volumes
(1)
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
25 wwwriceenergycom
$380 $340 $285
$200 $285 $275
$250 $115
$80
$225
$545
$830 $740
$640
0100200300400500600700800900
2012 2013 2014 2015 2016E
$MM
PA DampC OH DampC Land
36 37 27
ndash
ndash
7 12 27
10
21
43 49
54
0
10
20
30
40
50
2012 2013 2014 2015 2016E
Wells
PA OH
2016 Guidance
_______________________Note 2014 Pro Forma for ASR transaction1 As of February 24 20162 Does not include wells from the Greene County Acquisition3 Consolidated midstream includes Rice Midstream Holdings and Rice Midstream Partners
47 127
274
552
720
ndash
ndash
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016E
MMcfed
Average Net Daily ProductionNet Wells Turned to Sales(2)
Midstream Capital Expenditures Daily Throughput 2016E Midstream EBITDA
$45 $150 $170 150
$150
$250
155
$45 $50
$300
$420
305
0
100
200
300
400
500
2012 2013 2014 2015 2016E
$MM
RMP Rice Midstream Holdings
61
647 800
247
400
175
401
894
1200
0
150
300
450
600
750
900
1050
1200
2012 2013 2014 2015 2016E
MDthd
RMP Rice Midstream Holdings
$115
$43
0
20
40
60
80
100
120
RMP Rice MidstreamHoldings
$MM
Published Guidance
DampC amp Land Capital Expenditures
2016E EampP GUIDANCE(1)
2016E CONSOLIDATED MIDSTREAM GUIDANCE(1)(3)
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
26 wwwriceenergycom
Appendix
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
27 wwwriceenergycom
Increasing premium market exposure and narrowing differentials 91 of 4Q15 production transported outside of Appalachia Non-Appalachia exposure ~80 during 1Q16 Low FT expense of $042Mcf in 4Q15 that allows for continued
economic development
Initiated production from 6 Marcellus wells 5 wells ahead of schedulendash Average lateral length of ~7500 ft
Increased proved reserves 30 to 17 Tcfe 4Q15 net production of 624 MMcfed 57 increase from 4Q14
Benefitted by accelerated online activity and improved performance
~$14B liquidity(1) (excl RMP) to fund 2016 EampP and Midstream capex Disciplined hedging strategy supports CF amp protects balance sheet
ndash ~76 4Q15 production hedged and $134Mcf hedge price uplift Robust 2016 hedging portfolio of 662 BBtud at weighted avg fixed
floor price of $326MMBtu
1026 MDthd total throughput with 25 third-party volumes in 4Q15 Closed Strike Force JV w GPOR to construct amp operate gathering
compression amp water services for dry Utica acreage in OH Increased RMPrsquos acreage dedication from RICE to 93000 acres in PA Illuminated midstream value by closing $375MM preferred investment
EXECUTION IS DRIVING
INDUSTRYndashLEADING GROWTH
PROTECTED GROWTH ampFINANCIAL FLEXIBILITY
DIVERSE FT PORTFOLIO
ENHANCES REALIZED PRICING
CREATING VALUE THROUGH
MIDSTREAM DEVELOPMENT
RICE Fourth Quarter 2015 Highlights
__________________________1 As of 12312015 pro forma for the preferred equity transaction of $375 million
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
28 wwwriceenergycom
Net production averaged 624 MMcfed 57 increase from 4Q14 Includes 40 MMcfed of well outperformance
91 of 4Q15 production sold to premium non-Appalachian markets Record further adjusted quarterly EBITDAX of $144MM $134 Mcfe hedging uplift
RICE Fourth Quarter 2015 Financial Summary Solid fourth quarter results supported by well-capitalized balance sheet and ample liquidity
Total net production (MMcfed) 624 Gas 100 Operated 94 Marcellus 72
Actual ($MM) $ McfeNYMEX Henry Hub price ($MMBtu) $223
Pre-hedge realized price ($Mcf) 205 Realized hedging gain ($Mcf) 134
Post-hedge realized price ($Mcf) 339
Lease operating $9 016 Gathering compression and transportation 29 051 Production taxes and impact fees 3 004 General and administrative 24 043 Depletion depreciation and amortization 95 165
CashRice Energy $436Rice Midstream Holdings - Rice Midstream Partners 8
Total consolidated cash $444
Preferred Equity $375
Long-term debtRice Energy
EampP credit facility - 625 Senior notes due 2022 900 725 Senior notes due 2023 397
Total Rice Energy debt 1297 Rice Midstream Holdings revolver - Rice Midstream Partners revolver 143
Total consolidated debt $1440
Net debt 996
Leverage4Q15 Net Debt LQA EBITDARice Energy 18xRice Midstream Holdings 00xRice Midstream Partners 18xConsolidated 17x
4Q15 Net Debt LTM EBITDARice Energy 22x
Rice Midstream Holdings 00x
Rice Midstream Partners 21xConsolidated 21x
QUARTERLY HIGHLIGHTS
__________________________1 As of 12312015 pro forma for the preferred equity transaction that closed February 22 20162 Please see ldquoReconciliation of Further Adjusted EBITDAXrdquo for a description
CAPITALIZATION AT 12312015(1)
Sheet1
Sheet1
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
2Q 2015
Actual
($ in millions)
123115
Total production (MMcfed)
529
Gas
99
Cash
Operated
90
Rice Energy
$436
Marcellus
77
Rice Midstream Holdings
-
Rice Midstream Partners
8
NYMEX Henry Hub price ($MMBtu)
$ 272
Total consolidated cash
$444
Preferred Equity
$375
Average basis impact ($MMBtu)
[(073)]
Firm transportation fuel amp variables ($MMBtu)
[(001)]
Long-term debt
Btu uplift (MMBtuMcf)
010
Rice Energy
Pre-hedge realized price ($Mcf)
208
EampP credit facility
-
5285658022
Realized hedging gain ($Mcf)
089
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
297
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
001
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$ 298
Rice Midstream Holdings revolver
-
Hedging Gain
470423563958
Rice Midstream Partners revolver
143
Lease Operating
121570134506
Average costs per Mcfe
Actual ($MM)
$ Mcfe
Total consolidated debt
$1440
EBITDAX
17903163543
EampP Revenue (including net FT sales)
$ 101
$ 192
Net debt
996
Hedging gain
47
089
Lease operating
12
023
Leverage
4Q15 Net Debt LQA EBITDA
Gathering compression and transportation
17
035
Rice Energy
18x
Assets
4033720
Production taxes and impact fees
4
008
Rice Midstream Holdings
00x
Liabilities
2088373
General and administrative
19
039
Rice Midstream Partners
18x
1945347
Consolidated
17x
Depletion depreciation and amortization
73
152
4Q15 Net Debt LTM EBITDA
Rice Energy
22x
Adjusted EBITDAX
$ 95
$ 179
Rice Midstream Holdings
00x
Rice Midstream Partners
21x
Consolidated
21x
Three Months Ended
Total net production (MMcfed)
624
Gas
100
Cash
Operated
94
Rice Energy
$ 339
Marcellus
72
Rice Midstream Holdings
1
Actual ($MM)
$ Mcfe
Rice Midstream Partners
9
NYMEX Henry Hub price ($MMBtu)
$223
Total consolidated cash
$ 349
Average basis impact ($MMBtu)
(014)
Firm transportation fuel amp variables ($MMBtu)
(015)
Long-term debt
Btu uplift (MMBtuMcf)
011
Rice Energy
Pre-hedge realized price ($Mcf)
205
EampP credit facility
$ -
5285658022
Realized hedging gain ($Mcf)
134
625 Senior notes due 2022
900
Total production
5285658021978
Post-hedge realized price ($Mcf)
339
725 Senior notes due 2023
397
EampP Revenue
101328730
Net firm transportation sales
- 0
Total Rice Energy debt
1297
1917050433
Adjusted realized price ($Mcf)
$339
Rice Midstream Holdings revolver
17
Hedging Gain
470423563958
Rice Midstream Partners revolver
-
Lease Operating
121570134506
Lease operating
$9
016
Shareholders equity
$ 1996
Gathering compression and transportation
29
051
Total capitalization
ERRORREF
Production taxes and impact fees
3
004
Total net capitalization
ERRORREF
General and administrative
24
043
Depletion depreciation and amortization
95
165
Adjusted EBITDAX
$132
Further Adjusted EBITDAX(2)
$144
29 wwwriceenergycom
2016 Detailed Guidance
RICE 2016 GUIDANCE(1)
__________________________1 As of February 24 2016
RMP 2016 GUIDANCE(1)
GuidanceNet Wells Spud Online Total Net Production (MMcfed) 700 - 740Operated Marcellus 25 27 Natural gas Operated Ohio Utica 12 13 Operated Non-operated Ohio Utica 5 14 Marcellus Total Net Wells 42 54
Pricing FT Fuel amp Variable (Deduction) ($014) - ($016)
2016 Capital Budget ($ in millions)Gas Gathering and Compression $ 140 Water Services $ 10 Total RMP $ 150
Estimated Maintenance Capital $ 11
Cash GampA ($ in millions) 15$ - 18$
Adjusted EBITDA ($ in millions)Gas Gathering and Compression 85$ - 90$ Water Services 25$ - 30$ Total Adjusted EBITDA 110$ - 120$
Third Party
Distributable Cash Flow ($ in millions) 90$ - 100$ Average DCF Coverage Ratio 13x - 15x Distribution Growth
Guidance
20 - 25
20
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
30 wwwriceenergycom
Water Services Business Drop Down SummaryTRANSACTION OVERVIEW TRANSACTION HIGHLIGHTS
__________________________1 Excludes Strike Force JV2 Assumes fee of $006 per gallon in Pennsylvania and 11000000 gallons of water per well that utilize the fresh water delivery system based on a 7000rsquo lateral3 Assumes fee of $007 per gallon in Ohio and 16900000 gallons of water per well that utilize the fresh water delivery system based on a 9000rsquo lateral
Immediately accretive to distributable cash flow per unit
Integrates RMPrsquos gathering and compression business with water services business driving enhanced 3rd party opportunities
Volumetric tiers provide revenue and cash flow stability
Minimal future organic capital requirements for RICE development
RMP acquired Rice Energyrsquos water business for $200 million in November 2015
$25 million earn out upon achievement of certain increases to system capacities
Funded with borrowings under RMPrsquos RCF and partially repaid with proceeds from $175MM PIPE
WATER SERVICES AGREEMENTS OVERVIEW
Tiered Fresh Water Fee Pennsylvania Ohio
Fresh Water Volumes (MMGal Well)
Tier I lt825 lt125
Tier II 825 ndash 1325 125 ndash 20
Thereafter gt1325 gt20
Fee ($ Gallon)
Tier I $007 $008
Tier II $003 $004
Thereafter $001 $002
Expected Weighted Average Fee (2)(3) $006 $007
Produced Water Services Fee 2 of cost 2 of cost
ASSET OVERVIEW
Fresh water distribution systems(1) amp related facilities servicing Marcellus and Utica completion operations in PA and OH
The right to provide fresh water for completion operations and to collect recycle and dispose of flowback and produced water for RICE in services area
Access to 194 MMGPD of fresh water
112 miles of pipeline and 152 million gallons of water impoundment capacity
As compared to trucking water distribution systems are the more efficient way to transport fresh water for completions
Faster more reliable completion jobs
Capable of delivering up to 3x more water per day plus on-demand storage via impoundments
Improved social responsibility by reducing truck traffic and resulting emissions noise road repairs and safety incidents
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
31 wwwriceenergycom
955
33
22
111
122
73
53
1210
62
0 5 10 15 20 25
Peer 1Rice Energy
Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9
Peer 10
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Asset Quality ndash Industry High Grading to Quality
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
32 wwwriceenergycom
Pennsylvania Utica A Natural Extension for Rice
RICE OH Uticagt40 MMcfed
RICE PA Utica Peer Results
60-70 MMcfed
Peer Results10-30 MMcfed
Point Pleasant Core
__________________________1 RigData January 2016 Report
The Utica core extends directly underneath RICErsquos Pennsylvania assets Initial RICE and Industry wells point to massive resource potential
Peer Results40-60
MMcfedWet Gas Dry Gas Dry Gas Dry GasRICE Deep Utica Well
In Sales 12 MMcfed chokedExpect flat production for
700+ days
EQT Tests42 ndash 73 MMcfed
RRC Test59 MMcfed
CNX Test61 MMcfed
RICE Acreage
Current Rig(1)
Deep Test Report
Porosity
6
12
0
CNX Test61 MMcfed
Washington
Greene
Rice PA Utica
One well placed online in August 2015 Lateral Length 5800rsquo Initial Pressure 10000 psi
Expect to be competitive with MarcellusOH Utica returns at $15 MM well costs
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
33 wwwriceenergycom
Ohio Q3 2015 Production Summary ndash Top 100 Wells
-
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Top 8 Wells 100 RICE
Top 21 Wells100 RICEGPOR AMI
Top 100 Wells75 located within Belmont and Monroe RICE Midstreamrsquos Footprint
Q3
2015
Cum
ulat
ive
Prod
uctio
n (M
cfe)
RICE amp GPOR Strong Partnership Demonstrated by Top-Tier Well Results 1088 Utica Shale wells producing in Q3 2015(1) - RICE amp GPOR partnership takes top 21 wells (300 MMcfed avg)
Quality over Quantity RICErsquos 16 operated wells accounted for 7 of the Utica Shalersquos total gas production(1)
RICE GPOR AMI(2)
RICE Midstream Footprint
BelmontMonroe
RICE OH Utica Acreage
RICE Operated in AMI
GPOR Operated in AMI
Other BelmontMonroe
Other Counties
__________________________1 Source ODNR 3rd Quarter 2015 Horizontal Shale Production Report2 RICEGPOR AMI is located in Goshen Smith Washington and Wayne Townships in Belmont County OH
Utica Core
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
34 wwwriceenergycom
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Susquehanna PA (Marcellus) Peer Utica Peer Belmont Peer Monroe Rice Utica
ndash
10
20
30
40
50
60
70
80
90
100
ndash 250 500 750 1000 1250 1500 1750 2000
Days OnlinePeer Marcellus Rice Greene Rice Washington Rice Geneseo
UTICA amp SUSQUEHANNA PA HISTORICAL PRODUCTION(2)WASHINGTON amp GREENE COUNTY HISTORICAL PRODUCTION(1)
Differentiated Long-Term Production per Well
__________________________1 Data for RICE based on actuals through 123115 peer data based on Pennsylvania Department of Environmental Protection production reports through 1130152 Data for RICE based on actuals through 123115 peer data based on Ohio Department of Natural Resources report through 93015
Our drilling and completion techniques have yielded greater production profile per well than our peers
Cumulative Production (Bcfe)RICE has 5 of the
top 10 wells based on cumulative
production
RICE has the top 8 Utica wells based on average rate
Cumulative Production (Bcfe)
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
35 wwwriceenergycom
Most Efficient Growth in Appalachia
__________________________1 Horizontal Marcellus and Utica wells only Data for RICE based on actuals through 1312016 peer data based on Pennsylvania Department of Environmental Protection and Ohio Department of Natural Resources production reports through September 30 2015 RICE production
RICErsquos peer-leading production growth is driven by a focus on well quality not quantity RICE reached over 850 MMcfed of gross operated production with fewer wells than every other operator(1) in Appalachia Chart below demonstrates RICErsquos ability to rapidly grow production w a clear path to 1 Bcfd amp beyond w ~1200+ wells left to drill
MMcfd PRODUCTION VERSUS WELLS - TOP PRODUCERS IN APPALACHIA(1)
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
LNG
10
Industry
2
Power
35
Mexico
38
LNG
Industry
Power
Mexico
37 wwwriceenergycom
LNG+100
Industry+20
Power+ 35
Mexico+38
Diverse Market Exposure
_______________________1 Conversion of Dth to Mcf assumes 1050 Btu factor2 Source Company Filings TPH Estimates
FT portfolio includes 13 MMDthd (12 Bcfd) of firm capacity to premium North American markets(1)
Canadian Markets
Gulf Coast Markets
MIDWEST (MDTHD)2016 2017 2018107 57 57
GULF COAST (MDTHD)2016 2017 2018464 603 870
Midwest Markets
TCO (MDTHD)2016 2017 2018119 85 85
Appalachian Markets
RICE Acreage
RICE FIRM CAPACITY COMMITMENTS(MDTHD)
Project Pipeline Start Date Volume MarketTEAM South TETCO Sept 2014 270 Gulf Coast
Westside Expansion CGTTCO Nov 2014 125 TCO Gulf Coast
Rockies Express REX Aug 2015 175 MidwestCanadaGulf Coast
Union Town to Gas City TETCO Sept 2015 87 MidwestGulf Coast
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
Gulf Coast TCO Midwest Dawn DTI M2 M3 Average Basis Impact
HHUB is increasingly challenged
Rice is 87 hedged in 2016 50+ in 2017
Appalachian basis has tightened
Market opportunity to hedge at attractive levels ($050) relative to green-field FT projects ($100)
FT portfolio diversifies markets
As new FT projects come online our diverse FT portfolio and inter-connected gathering system will allow Rice to take advantage of arbitrage and optimization opportunities
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
39 wwwriceenergycom
Hedging SummaryHEDGE SUMMARY
RICErsquos gas will be marketed into 4 areasndash (1) Gulf Coast (ELA M1) ndash (2) TCOndash (3) Midwest (Chicago Dawn)ndash (4) Appalachia (M2 M3 amp Dominion)
78 of first quarter 2016 production transported out of Appalachian basin
Our Gulf Coast firm transportation contracts deliver to markets in the Gulf Coast (ELA M1)
ndash We hedge our Gulf Coast basis exposure opportunistically but believe our Henry Hub NYMEX derivatives serve as a hedge against these indices which have historically traded within a narrow band of $005-$015 below Henry Hub
~87 of 2016 production hedged at weighted avg fixed price floor of $326MMBtu
2016 2017 2018 2019
Hedged M2 Dominion Volumes (BBtud) 189 163 165 150Wtd Avg Floor Price ($MMBtu) $235 $220 $250 $248 of Basis Hedged 84 na na na
Hedged TCO Volumes (BBtud) 44 27 19 10Wtd Avg Floor Price ($MMBtu) $297 $281 $277 $273 of Basis Hedged 46 na na na
Hedged Gulf Coast Volumes (BBtud) 355 349 79 ndashWtd Avg Floor Price ($MMBtu) $320 $307 $291 ndash of Basis Hedged 67 na na na
Hedged ChicagoDawn Volumes (BBtud) 74 24 22 20Wtd Avg Floor Price ($MMBtu) $327 $309 $309 $299 of Basis Hedged 70 na na na
Total Hedged Volumes (BBtud) 662 563 285 180Wtd Avg Floor Price ($MMBtu) $295 $281 $268 $255 Hedged 87 na na naWtd Avg Fixed Price Floor $326 $314 $316 $311
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
40 wwwriceenergycom
ndash
20
40
60
80
100
120
140
ndash 050 100 150 200 250 300 350 400 450
MM
cfd
YearsRevised Marcellus 750 Type Well Previous Marcellus Type Well
Marcellus Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
MARCELLUS SINGLE WELL TYPE CURVE
Cumulative ProductionCurrent Prior Var
1 Year 34 38 (05)2 Year 52 56 (05)5 Year 81 82 (02)10 Year 106 103 04 EUR 151 139 12
TYPE CURVE UPDATES
Rice revised Marcellus type well to reflect latest production history which resulted in an increase to EURs
ndash 136 operated wells online
Updated choke management program to maximize long-term production amp PV-10
Updated economic assumptions including DampC operating and FT costs
Type curve reflects more aggressive choke management program to drive
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
41 wwwriceenergycom
ndash
50
100
150
200
ndash 050 100 150 200 250 300 350 400
MMcf
d
YearsOhio Utica 1000 Type Well Previous Utica Type Well
Utica Type Curve ndash Updated
Restricted Rate
__________________________Note See appendix for summary of assumptions used to generate single well IRRs
UTICA SINGLE WELL TYPE CURVE
TYPE CURVE UPDATES
Rice revised Utica type well to reflect latest production history
ndash 16 operated wells online
Rice has observed interference between wells spaced at 750rsquo and believe 1000rsquo spacing may be the optimal development spacing to maximize PV-10 in the current environment
ndash Rice will continue to collect data from spacing trials and seek to maximize full-field value
Updated economic assumptions including DampC operating and FT costs
Choke management extends flat time from 9 months to 12 months
Incorporated historical decline data
Cumulative ProductionCurrent Prior Var
1 Year 58 52 06 2 Year 90 78 12 5 Year 125 113 12 10 Year 152 142 10 EUR 210 199 10
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
42 wwwriceenergycom
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
__________________________Note Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDA as net income (loss) attributable to us before non-controlling interest interest expense or interest income income taxes write-down of abandoned leases depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets equity in (income) loss of our joint ventures derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense (gain) loss from sale of interest in gas properties (gain) loss on acquisition acquisition expense (gain) loss on extinguishment of debt write-off of deferred financing costs and exploration expenses Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles or GAAP 1 Adjusted EBITDA attributable to the Water Assets prior to their acquisition is excluded from our adjusted EBITDA calculation as these amounts are not attributable to our limited partners For the three months ended December 31 2015 the Adjusted EBITDA attributable to the Water
Assets prior to acquisition was calculated with net income of $10 million plus interest expense of $01 million depreciation expense of $11 million and non-cash equity compensation of $01 million For the year ended December 31 2015 the Adjusted EBITDA attributable to the Water Assets prior to acquisition was calculated with net income of $73 million plus interest expense of $08 million income tax expense of $58 million depreciation expense of $70 million non-cash equity compensation of $04 million and $10 million of incentive unit expense
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015Adjusted EBITDA reconciliation to loss from continuing operationsNet income 12521$ 52495$
Interest expense 1094 3164Income tax expense 17 5812Depreciation expense 5944 16399Amortization of intangible assets 408 1632Non-cash stock compensation expense 1185 4501Incentive unit (income) expense (4) 1044Amortization of deferred financing costs 144 576Other expense 51 543Adjusted EBITDA attributable to Water Assets prior to acquisition(1) (2295)$ (22386)$
Adjusted EBITDA attributable to limited partners 19065$ 63780$
Adjusted EBITDA attributable to limited partners 19065$ 63780$ Cash interest expense (948) (2356) Estimated maintenance capital expenditures (1120) (4480)
Distributable cash flow 16997$ 56944$
Reconciliation of Adjusted EBITDA to Cash used in operating activitiesAdjusted EBITDA 19065$ 63780$
Interest expense (1094) (3164) Other expense (51) (543) Adjusted EBITDA attributable to Water Assets prior to acquisition(1) 2295 22386 Changes in operating assets and liabilities which provided cash (1426) (12453)
Net cash provided by operating activities 18789$ 70006$
Financial Summary
EBITDA
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
($ in thousands)
December 31 2015
December 31 2015
Adjusted EBITDA reconciliation to loss from continuing operations
Net income
$ 12521
$ 52495
Interest expense
1094
3164
Income tax expense
17
5812
Depreciation expense
5944
16399
Amortization of intangible assets
408
1632
Non-cash stock compensation expense
1185
4501
Incentive unit (income) expense
(4)
1044
Amortization of deferred financing costs
144
576
Other expense
51
543
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
$ (2295)
$ (22386)
Adjusted EBITDA attributable to limited partners
$ 19065
$ -
$ 63780
Adjusted EBITDA attributable to limited partners
$ 19065
$ 63780
Cash interest expense
(948)
(2356)
Estimated maintenance capital expenditures
(1120)
(4480)
Distributable cash flow
$ 16997
$ 56944
Reconciliation of Adjusted EBITDA to Cash used in operating activities
Adjusted EBITDA
$ 19065
$ 63780
Interest expense
(1094)
(3164)
Other expense
(51)
(543)
Adjusted EBITDA attributable to Water Assets prior to acquisition(1)
2295
22386
Changes in operating assets and liabilities which provided cash
(1426)
(12453)
Net cash provided by operating activities
$ 18789
$ 70006
Three Months Ended
($ in millions except per unit data)
September 30 2015
Affiliate gathering volumes (MDthd)
559
Third-party gathering volumes (MDthd)
112
Total gathering volumes (MDthd)
671
Total operating revenues
$201
Operating expenses
$72
Total operating income
$129
Adjusted EBITDA
$155
Distributable cash flow
$138
DCF unit
$02406
Distribution declared
$110
Distribution unit
$01935
Coverage ratio
126x
Three Months Ended
($ in millions)
September 30 2015
Revolver capacity
$ 450
Less Borrowings
72
Plus Cash and cash equivalents
19
Liquidity
$ 397
43 wwwriceenergycom
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
__________________________Note Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements such as industry analysts investors lenders and rating agencies We define Adjusted EBITDAX as net income (loss) before non-controlling interest interest expense income taxes depreciation depletion and amortization amortization of deferred financing costs amortization of intangible assets derivative fair value (gain) loss excluding net cash receipts on settled derivative instruments non-cash stock compensation expense non-cash incentive unit expense exploration expenses and other non-recurring items Adjusted EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles or GAAP1 The adjustments for the derivative fair value (gains) losses and net cash receipts on settled commodity derivative instruments have the effect of adjusting net income (loss) for changes in the fair value of derivative instruments which are recognized at the end of each accounting period
because we do not designate commodity derivative instruments as accounting hedges This results in reflecting commodity derivative gains and losses within Adjusted EBITDAX on a cash basis during the period the derivatives settled
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Adjusted EBITDAX reconciliation to net income (loss)Net income (274253)$ (267999)$ Interest expense 24009 87446Depreciation depletion and amortization 94787 322784Impairment of gas properties 18250 18250Impairment of goodwill 294908 294908Amortization of deferred financing costs 1403 5124Amortization of intangible assets 408 1632
Gain on derivative instruments (1) (89019) (273748)Net cash receipts on settled derivative instruments (1)
Non-cash incentive unit (income) expense (9773) 36097Income tax expense (6217) 12118Gain from sale of interest in gas properties - (953)Exploration expense 1212 3137Other expense 756 4380Non-controlling interest (6504) (23337)
Adjusted EBITDAX 132153$ 431510$
Sheet1
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Adjusted EBITDAX reconciliation to net income (loss)
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Net income
$ (274253)
$ (267999)
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Interest expense
24009
87446
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Depreciation depletion and amortization
94787
322784
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Impairment of gas properties
18250
18250
Impairment of goodwill
294908
294908
Amortization of deferred financing costs
1403
5124
Less GatheringTransportation
(10)
(042)
Senior Unsecured Notes
900
Amortization of intangible assets
408
1632
Less Cash GampA
(10)
(046)
Other Debt
--
Gain on derivative instruments (1)
(89019)
(273748)
PlusLess Other Income (Expense)
1
006
Total Debt
900
Net cash receipts on settled derivative instruments (1)
76228
193908
EBITDAX ($Mcfe)
$53
$235
Acquisition expense
1111
1235
Non-cash stock compensation expense
4847
16528
Shareholders Equity
Non-cash incentive unit (income) expense
(9773)
36097
Total Capitalization
Income tax expense
(6217)
12118
Gain from sale of interest in gas properties
-
(953)
Exploration expense
1212
3137
Liquidity
Other expense
756
4380
Non-controlling interest
(6504)
(23337)
Borrowing Base
$385
$550
Adjusted EBITDAX
$ 132153
$ 431510
Less Letters of Credit
Plus Cash
Liquidity
44 wwwriceenergycom
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Three Months Ended Year Ended($ in thousands) December 31 2015 December 31 2015
Further Adjusted EBITDAX reconciliationAdjusted EBITDAX 132153$ 431510$
Non-controlling interest(1) 6504 23337
Water revenue adjustment(2) 5577 27336Further Adjusted EBITDAX 144234$ 482183$
__________________________1 Add back non-controlling interest to Adjusted EBITDAX to calculate leverage metrics2 Add back RMP water distribution revenue from RICErsquos working interest share of the water fees that was eliminated in the RICE consolidation
Sheet1
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
Three Months Ended
Year Ended
Operating Metrics
($ in millions)
93014
Pro Forma 93014
($ in thousands)
December 31 2015
December 31 2015
Net Daily Production (MMcfed)
247
247
Further Adjusted EBITDAX reconciliation
Post-hedge Realized Pricing ($Mcf)
$340
$340
Cash
109
Adjusted EBITDAX
$ 132153
$ 431510
EampP Revenue (Including FT Capacity Sales Net)
$78
$341
Non-controlling interest(1)
6504
23337
Plus Hedge Gain(Loss)
0
001
Long Term Debt
Water revenue adjustment(2)
5577
27336
Less LOE amp Taxes
(6)
(025)
1st Lien Rev Credit Fac
--
Further Adjusted EBITDAX
$ 144234
$ 482183
Less Letters of Credit
Plus Cash
Liquidity
45 wwwriceenergycom
DisclaimerFORWARD-LOOKING STATEMENTSThis presentation and the oral statements made in connection therewith may contain ldquoforward looking statementsrdquo within the meaning of the securities laws All statements other than statements of historical fact regarding Rice Midstreamrsquos strategy future operations financial position estimated revenues and incomelosses projected costs prospects plans and objectives of management are forward-looking statements These statements often include the words ldquocouldrdquo ldquomayrdquo ldquoassumerdquo ldquoforecastrdquo ldquopositionrdquo ldquopredictrdquo ldquostrategyrdquo ldquoexpectrdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquoanticipaterdquo ldquobelieverdquo ldquoprojectrdquo ldquobudgetrdquo ldquopotentialrdquo or ldquocontinuerdquo and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain such identifying words Without limiting the generality of the foregoing forward-looking statements contained in this presentation specifically include expectations of plans strategies objectives anticipated financial and operating results of Rice Midstream These forward-looking statements are based on Rice Midstreams current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events Rice Midstream assumes no obligation to and does not intend to update any forward looking statements included herein You are cautioned not to place undue reliance on any forward-looking statements Rice Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties most of which are difficult to predict and many of which are beyond their control incident to our gathering and compression and water services business These risks include but are not limited to commodity price volatility environmental risks regulatory changes the uncertainty inherent in projecting throughput volumes cash flow and access to capital the timing of development expenditures of RICE and our other customers and the other risks described under ldquoRisk Factorsrdquo in Rice Midstreamrsquos most recent Form 10-K Form 10-Q and other filings with the Securities and Exchange Commission Should one or more of these risks or uncertainties occur or should underlying assumptions prove incorrect Rice Midstreamrsquos actual results and plans could differ materially from those expressed in any forward-looking statementsThis presentation has been prepared by Rice Midstream and includes market data and other statistical information from sources believed by Rice Midstream to be reliable including independent industry publications government publications or other published independent sources Some data are also based on Rice Midstreamrsquos good faith estimates which are derived from its review of internal sources as well as the independent sources described above Although Rice Midstream believes these sources are reliable it has not independently verified the information and cannot guarantee its accuracy and completeness
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation
Disclaimer
Additional Disclosures
46 wwwriceenergycom
Determination of Identified Drilling Locations as of December 31 2015
Net undeveloped locations are calculated by taking RICErsquos total net acreage and multiplying such amount by a risking factor which is then divided by RICErsquos expected well spacing RICE then subtracts net producing wells to arrive at undeveloped net drilling locations
Undeveloped Net Marcellus Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In the Marcellus RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 73000 net acres in the Marcellus which results in 375 undeveloped net locations
Undeveloped Net Greene County Locations ndash RICE assumes these locations have 7000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing In Greene County RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 19000 net acres in Greene County which results in 112 undeveloped net locations
Undeveloped Net Upper Devonian Locations ndash RICE assumes these locations have 7000 foot laterals and 1000 foot spacing between wells which yields approximately 161 acre spacing In the Upper Devonian RICE applies a 20 risking factor to its net acreage to account for inefficient unitization and the risk associated with its inability to force pool in Pennsylvania As of December 31 2015 RICE had approximately 85000 net acres prospective for the Upper Devonian which results in 418 undeveloped net locations
Undeveloped Net Ohio Utica Locations ndash RICE assumes these locations have 9000 foot laterals and 1000 foot spacing between wells which yields approximately 207 acre spacing In the Ohio Utica RICE applies a 10 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 56000 net acres prospective for the Utica in Ohio which results in 215 undeveloped net locations
Undeveloped Net Pennsylvania Utica Locations ndash RICE assumes these locations have 8000 foot laterals and 2000 foot spacing between wells which yields approximately 367 acre spacing In the Pennsylvania Utica RICE applies a 20 risking factor to its net acreage to account for inefficient unitization As of December 31 2015 RICE had approximately 49000 net acres prospective for the Utica in Pennsylvania which results in 105 undeveloped net locations
Additional Disclosures
Slide Number 1
Recent Company Updates
RMP Investment Highlights
RMP Fourth Quarter 2015 Highlights
RMP Fourth Quarter 2015 Financial Summary
RMP Financial Overview
RICE and RMP Organizational Structure
RMP High Growth MLP in Prolific Appalachian Basin
RMP Gathering and Water System Build-out
RMP 3rd Party Dedications from Top Operators in the Basin
Industry-Leading Throughput Growth
Attractive Drop Down Potential ndash OH Gathering
Attractive Drop Down Potential ndash Strike Force JV
Acquisition Assets ndash Integrated Water Services Business
Western Greene County Midstream Update
2015 Midstream System Statistics
RICE Overview
Concentrated Core Upstream Assets
Track Record of Low-Cost Growth
Well Positioned to Navigate Environment
Healthy Balance Sheet Protected by Strong Hedge Book
Strategic Preferred Investment
Attractive Single Well Economics
Right-Sized Firm Transport Portfolio
2016 Guidance
Appendix
RICE Fourth Quarter 2015 Highlights
RICE Fourth Quarter 2015 Financial Summary
2016 Detailed Guidance
Water Services Business Drop Down Summary
Asset Quality ndash Industry High Grading to Quality
Pennsylvania Utica A Natural Extension for Rice
Ohio Q3 2015 Production Summary ndash Top 100 Wells
Differentiated Long-Term Production per Well
Most Efficient Growth in Appalachia
RICE and RMP Market Snapshot
Diverse Market Exposure
Basis Exposure amp Realized Pricing
Hedging Summary
Marcellus Type Curve ndash Updated
Utica Type Curve ndash Updated
RMP 4Q 2015 Adjusted EBITDA and DCF Reconciliation
RICE 4Q 2015 Adjusted EBITDAX Reconciliation
RICE 4Q 2015 Further Adjusted EBITDAX Reconciliation