Investor Presentation January

Transcription

1 1 Investor Presentation January

2 Rice Energy Strategy Focus on long-term value creation Invest in 100% core assets with low break-even returns Operational excellence broadens the opportunity set for value creation Technical Differentiation Differentiated Results Value Differentiation 2. Transform Uncertainties into Assets Environmental, Health and Safety Safety and environmental stewardship is the cornerstone of operational excellence Firm Transportation Assurance of flow today and growth tomorrow to advantaged end markets Hedging Systematic approach to protecting cash flow and liquidity for the next 24 months 3. Maintain a Culture of Learning Maintain an entrepreneurial workplace that emphasizes empowerment and continuous improvement Incorporating learnings from ourselves and industry to maximize our results with fewest dollars spent

3 Solid Foundation for Economic Growth RICE was designed to weather challenging pricing environment High Quality Assets 136,500 net acres situated in the core of the Marcellus and Utica Over 800 net drilling locations generate 10% IRR at $ /MMBtu 288 MMcfe/d from 63 net producing wells in September 2014 Midstream system provides custom-tailored solution for Rice s production growth and realization of gathering economics Best in Class Execution Reached 200, 300, 400 & 500 MMcf/d of gross operated Marcellus production with fewer wells than any other operator in Pennsylvania First 3 Utica wells, turned online in 2014, each on track to produce ~5 Bcfe in first year Marcellus HZ drilling times in Q3 14 averaged 4.1 days per well w/ 8163 lateral avg Firm Transportation, Liquidity and Hedges Firm transportation portfolio mitigates basis exposure ~65% of 2015 production to be delivered to non-appalachian markets ~$475MM MLP IPO eliminates capital markets dependence in 2015 Flexible, low-cost debt mitigates balance sheet risk Substantial majority of 2015 production hedged at ~$4/MMBtu NYMEX 3

4 Concentrated, Core Assets COMPANY TOTAL Highly concentrated position of ~136,500 net acres in the cores of the lowest gas breakeven shale plays in the U.S. ~1,100 net undeveloped locations 288 MMcfe/d net Sept. production from 63 net wells Breakeven NYMEX PV-10 of $2.85-$2.90 / MMBTU MARCELLUS (PA) ~82,700 net acres, <5% developed 490 net undeveloped Marcellus locations 271 net undeveloped Upper Devonian locations Early but promising Utica activity 81 net producing wells (78 Marcellus, 3 Upper Devonian) Legend Gathering Pipeline Gathering Pipeline to be Constructed RICE OHIO Gathering Pipeline RICE OHIO Gathering Pipeline to be Constructed RICE Acreage Harrison Utica Core Belmont Jefferson CORE ASSETS Hancock Beaver Brooke Washington Ohio Marcellus Core UTICA (OH) ~53,800 net acres, <1% developed 333 net undeveloped Utica locations 3 gross (2 net) producing operated Utica wells RICE FT & MIDSTREAM FT: 1.3 MMDth/d of firm capacity: 60% to Gulf Coast and Midwest markets by Q % by Q4 17 RMP Midstream by YE2015: 4.5 MMDth/d gas gathering capacity RICE Midstream by YE2015: 2.5 MMDth/d gas gathering capacity and 25.7 MMgpd of water distribution Monroe Utica Fairway OH PA Marcellus Fairway WV (1) Net undeveloped locations as of 9/30/14. Approximately 55,000 net acres in the Marcellus Shale is also prospective for the Geneseo (Upper Devonian) Shale. The Upper Devonian and the Marcellus Shale are stacked formations within the same geographic acreage and footprint. See slide entitled Additional Disclosures on detail regarding Rice s methodology for the calculation of locations. (2) Conversion of Dth to Mcf assumes 1,050 Btu factor Marshall Wetzel Greene Fayette Monongalia 4

5 Deep Inventory of High Returning Projects Breakevens between $2.05-$3.05/MMBtu = profitable returns throughout the commodity price cycle Inventory and Returns Summary IRR 200% 175% 171% 168% 150% 125% 100% 75% 81% 88% 56% 78% 36% 55% 50% 32% 49% 53% 20% 25% 24% 13% 27% 7% 8% $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 Net Locations NYMEX PV-10 Breakeven ($/MMBtu) (1) $2.60 $3.05 $2.35 $2.05 Note: See appendix for summary of assumptions used to generate single well IRRs. 1. See appendix for a detailed explanation of adjusted midstream fees. Marcellus 750 economics assume E&P is burdened by 50% of the gathering and compression fee (RICE owns a 50% LP interest in RMP and owns 100% of the IDRs). W. Greene economics assume E&P is burdened by 100% of the gathering and compression fee (RICE acquired W. Greene assets which were previously dedicated to a third party).utica Dry 750 economics assume E&P is not burdened by gathering and compression fee (RICE owns 100% of RICE s OH midstream assets). Utica Wet 750 economics assume E&P is burdened by 100% of the gathering, compression and processing fees (RICE is currently in negotiations to dedicate its wet gas Utica acreage to a third party). 87% 124% 121% 106% Marcellus 750' W. Greene Utica Dry 750' Utica Wet 750' 138% 132% NYMEX 5

6 Efficient Production Growth Demonstrates Production Potential Our peer-leading production growth is driven by a focus on well quality, not quantity RICE reached 500 MMcfe/d of gross operated Marcellus production with fewer wells than every other operator (1) in Pennsylvania Chart below demonstrates our ability to rapidly grow production with a clear path to 1 Bcf/d+ and beyond MMcf/d Production versus Wells - Top 10 Marcellus Producers in Pennsylvania (1) SW PA Operators NE PA Operators 72 Operated Marcellus Wells Producing Well Count 1. Horizontal Marcellus wells only. Data for RICE based on actuals through 11/30/2014, peer data based on Pennsylvania Department of Environmental Protection production reports through June 30, RICE production excludes acquired CHK wells. Peers: APC, CHIEF, CHK, COG, CVX, EQT, NFG, RRC, SWN, TLM 6

7 7 Firm Transport De-Risks Production Growth RICE was early in identifying and securing its basin-leading portfolio of firm capacity Firm capacity covers ~100% of 2015 and a significant portion of RICE s volumes in Firm Transportation and Firm Sales Portfolio BBtu/d Flexible Capacity: 100% of RICE s TETCO capacity (>50% of RICE s total firm capacity) can be nominated from any of RICE s TETCO interconnects in PA or OH Average FT & FS Portfolio (Bbtu/d) PA Only OH Only Flexible Total ,011 1,323 1,305 1,253 1,400 1,200 ET Rover 1, DEO REX DTI TCO TETCO (PA or OH) 7/1/14 10/1/14 1/1/15 4/1/15 7/1/15 10/1/15 1/1/16 4/1/16 7/1/16 10/1/16 1/1/17 4/1/17 7/1/17 10/1/17 1/1/18 4/1/18 7/1/18 10/1/18 1/1/19 4/1/19 7/1/19 10/1/19 1/1/20 4/1/20 7/1/20 10/1/20

8 Successful MLP IPO of Rice Midstream Partners LP OVERVIEW RICE closed a $475MM IPO of its newly formed MLP, Rice Midstream Partners LP (NYSE:RMP) on 12/22/ MM common units priced at $16.50/unit $0.75 MQD annualized, 4.5% yield RMP investment highlights include: Premier E&P sponsor with strong track record of execution 3 rd party volumes provide diversification and growth Concentrated dedication results in minimal organic RMP capex to meaningfully increase distributions Organic and drop-down opportunities result in top-tier growth Allows RICE to illuminate midstream asset value while maintaining operational control RICE retained its OH gathering and compression and PA & OH water systems Retained assets attractive drop-down candidate for RMP (RMP retains a ROFO) Legend SYSTEM MAP PA GATHERING AND COMPRESSION RMP Gathering Pipeline RMP Gathering Pipeline to be Constructed Long-Haul Pipeline Delivery Meter Planned Delivery Meter RMP Compressor Station RMP Compressor Station to be Constructed RICE Acreage Dedicated to RMP RICE Acreage Dedicated to 3rd Party PA MIDSTREAM STATS Mileage (in miles) Gathering Capacity (MMDth/d) YE14 YE15 YE14 YE Washington SOURCES AND USES ($ in millions) Sources Uses IPO Offering $474 Distribution to RICE $414 Fees and Expenses 35 Cash to RMP B/S 25 Greene Total Sources $474 Total Uses $474 RMP IPO illuminates value of midstream system and premier sponsorship highlights growth opportunities 8

9 New Midstream Revolvers Enhance Liquidity RICE significantly increased liquidity through MLP and two new midstream facilities to self-fund future development OVERVIEW Pre-MLP, Rice had one revolver ($550MM) to fund upstream and midstream activities Post MLP, Rice has three revolvers: 1) RICE Upstream - $550MM 2) RICE Midstream - $300MM 3) RMP - $450MM Rice s access to low-cost borrowing capacity increased from $550MM to $1.3B Rice Energy Inc. NYSE: RICE Upstream D&C and Leasehold Rice Midstream Holdings LLC Midstream OH G&C and PA & OH water Public Unitholders ORG STRUCTURE AND LIQUIDITY 100% 100% IDRs & 50% LP 12/31/2014 Unaudited RICE Upstream Revolver ($ MM) Borrowing Base $550 Drawn Letters of Credit (67) Available BB $483 Cash 229 Liquidity $712 RICE Holdco Midstream Revolver Revolver Size $300 Drawn Available Revolver 300 Cash Liquidity $300 Allows Rice to allocate capital to fund upstream and midstream development from three distinct capital sources %50 LP interest Rice Midstream Partners LP NYSE: RMP Midstream Pennsylvania G&C RMP Revolver Revolver Size $450 Drawn Available Revolver 450 Cash 25 Liquidity $475 RICE Upstream, Midstream and RMP revolvers eliminate the need to access capital markets in 2015 Note: D&C drilling and completion, G&C gathering and compression. 9

10 Pennsylvania Assets 10

11 Strong Execution Drives Consistent Results Highlights Proven, De-Risked Asset: RICE has turned 78 Marcellus (3 Upper Devonian) wells into sales through year-end 2014 Pollock North 1 Pad 4 Wells Avg. Lateral Ft: 3,800 Big Daddy Shaw Pad 5 Wells Avg. Lateral Ft: 7,900 Swagler Pad 3 Wells Avg. Lateral Ft: 6,500 Premier SW PA Marcellus operator: RICE has drilled and completed the top 3, as well as 7 of the top 10 wells in terms of cumulative production in Washington County Waterboy 4 Wells Avg. Lateral Ft: 9,000 Mama Bear Pad 5 Wells Avg. Lateral Ft: 6,000 The industry has drilled ~1,000 wells in Washington and Greene counties Iron Man Southwest Pad 2 Wells Avg. Lateral Ft: 7,500 Shotski 1 Well Avg. Lateral Ft: 4,000 Visibility on Growth: ~95% of RICE operated wells coming online in 2015 are in various stages of development today Washington Wolverine Pad 4 Wells Avg. Lateral Ft: 8,000 Jacobs North Pad 6 Wells Avg. Lateral Ft: 4,400 Captain Jack 6 Wells Avg. Lateral Ft: 7,500 Marcellus Well Results To Date Wells Turned Avg. Lateral Flow Rates (MMcf/d) D&C Period To Sales Length (Ft) ($/Ft) , $ 2,377 Greene Mad Dog North Pad- 5 Wells Avg. Lateral Ft: 9,700 Zorro South Pad 5 Wells Avg. Lateral Ft: 9, , $ 1, , $ 1,476 Q , NA $ 1,349 Q , NA NA $ 1,254 PLHC North Pad 9 Wells Avg. Lateral Ft: 7,300 Q ,163 NA NA NA $ 1,247 Total 56 6, $ 1,533 * Flow Rates based on wells with available history Briggs Pad 1 Well Avg. Lateral Ft: 6,400 Behm Pad 3 Wells Avg. Lateral Ft: 7,500 Rice Energy Acreage Permitting/Constructing Drilling Completing In Sales 1. Wells in Progress excludes wells in the Permitting/Constructing Category 11

12 Deep Utica Potential in Pennsylvania County Depth OH Fairfield Muskingum Guernsey Belmont Ohio/Marshall Washington / Greene ,500 12,000 13,000 WV PA West East Porosity 12% Point Pleasant Core 6% 0% Rice Acreage Range In Progress Peer Avg 5-15 MMcfe/d IP BTU Peer Avg MMcfe/d BTU RICE: ~50k acres in central Belmont 40+ MMcfe/d IP BTU RICE: ~15k acres in western Greene 2015 Test BTU RRC Test: 59 MMcfe/d Rice (PA) Permitting EQT Preparing Porosity in southeast OH extends into southwest PA Belmont Washington Monroe Greene Thick, high pressure and high porosity Utica section in southwest PA at depths between 12,000-13,000 TVD Industry tests underway in SW PA from multiple operators We plan to spud our first PA Utica well in 2015 To be located on our recently acquired acreage in western Greene County 12

13 Marcellus Single Well Economics 750 Type Well Versus Historical Production (Normalized for 7,000 Lateral) MMcf/d IRR 200% Restricted Rate ' Avg. Historical Production 750 Type Well Years Online Marcellus IRR Sensitivity Cumulative Production 1 year 3.8 Bcf 2 years 5.6 Bcf 5 years 8.2 Bcf 10 years 10.3 Bcf EUR 13.9 Bcf 171% 150% 121% 132% 100% 81% 49% 88% 50% 24% 53% 7% 27% 8% $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 Marcellus 750' W. Greene Net Locations NYMEX PV-10 Breakeven ($/MMBtu) (1) $2.60 $3.05 Note: See appendix for summary of assumptions used to generate single well IRRs 1. See appendix for a detailed explanation of adjusted midstream fees. Marcellus 750 economics assume E&P is burdened by 50% of the gathering and compression fee (RICE owns a 50% LP interest in RMP and owns 100% of the IDRs). W. Greene economics assume E&P is burdened by 100% of the gathering and compression fee (RICE acquired W. Greene assets which were previously dedicated to a third party). NYMEX 13

14 Ohio Assets 14

15 Utica: Dry-Gas Core Established, Significant Growth Ahead Operational Highlights Concentrated Core Position: 53,767 net acres concentrated in the heart of Belmont County Strategic JV with Proven Operator: RICE + GPOR complementary acreage positions provide substantial efficiency gains Rice operates ~27,000 net acres and Goshen and Smith townships with 69% average operated working interest (1) GPOR operates ~23,000 net acres in Washington and Wayne townships with 43% average RICE nonoperated working interest (1) Early Results Exceeding Expectations: RICE has turned 3 horizontal Utica wells into sales (Bigfoot and Blue Thunder pads) which are on track to be some of the best performing drygas Utica wells in the play. Flow rate and pressure declines are superior to RICE s Marcellus results Dry-Gas Core De-Risked by Industry: 23 rigs running in Belmont and Monroe counties ( dry-gas core) which represents 44% of the total rigs running in the Utica (2) Visibility on Growth: All 2015 operated Utica wells currently in progress and concentrated within 5 mile radius in central Belmont County 1. Assumes RICE + GPOR 90% working interest. 2. As of November 30, Iron Warrior 5 Wells Avg. Lat. Length: 8,500 Krazy Train Guernsey 2 Wells Avg. Lat. Length: 10,000 Razin Kane 3 Wells Avg. Lat. Length: 8,500 Bounty Hunter 4 Wells Avg. Lat. Length: 9,000 Noble Madusa 3 Wells Avg. Lat. Length: 9,400 Thunderstruck 5 Wells Avg. Lat. Length: 9,400 Utica Development Map Monroe Harrison Dragons Breath 4 Wells Avg. Lat. Length: 9,700 Thrasher 5 Wells Avg. Lat. Length: 9,000 = 20+ Mmcfe/d IP RMP has a right of first offer on all of RICE s interests in its Utica gas gathering system Belmont Blue Thunder 2 Wells Avg. Lat Length: 9,000 Status: In 16 MMcfe/d held flat since 9/16/14 Wetzel Bigfoot 9H 1 Well Lat. Length: 7,000 Status: In 14 MMcfe/d held flat since 6/20/14 Gold Digger 2 Wells Avg. Lat. Length: 9,000 Marshall Son Uva Digger 3 Wells Avg. Lat. Length: 9,000 Mohawk Warrior 3 Wells Avg. Lat. Length: 12,000 Spitfire 5 Wells Avg. Lat. Length: 9,000 Big Dawg 4 Wells Avg. Lat. Length: 9,000 RICE Acreage Permitting/Constructing Drilling Completions In Sales RICE PA Utica Test (Permitting) 15

16 Utica Production and Pressures Update Bigfoot 9H (7,000 lateral) continues to produce steadily psi/d FCP decline. Blue Thunder 10H and 12H (9,000 laterals) were turned to sales in September and have stabilized at psi/d FCP decline Flow Rate, Mcf/d Wellhead Pressure, psi 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Note: Data as of November 30, Bigfoot 9H 7,000 lateral Blue Thunder 10H/12H 9,000 laterals Line pressure ( psi) Bigfoot Flow Rate Projection 1 Year Cumulative 5.1 Bcf 18 Month Cumulative 7.3 Bcf Days 4.9 Bcf Flat Period Cumulative 6.1 Bcf Flow rate decline when wellhead psi = line psi 6.4 Bcf 16

17 MMcf/d Utica Single Well Economics IRR 200% 150% 100% Restricted Rate 750 Utica DRY Type Well Versus Historical Production (Normalized for 8,000 Lateral) Years Utica Type Well Utica Avg. Historical Production 50% 20% 36% 56% IRR Sensitivity 55% Cumulative Production 1 year 5.2 Bcf 2 years 7.8 Bcf 5 years 11.3 Bcf 10 years 14.2 Bcf EUR 20.0 Bcf 13% 32% $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 Note: See appendix for summary of assumptions used to generate single well IRRs. 1. See appendix for a detailed explanation of adjusted midstream fees Utica Dry 750 economics assume E&P is not burdened by gathering and compression fee (RICE owns 100% of RICE s OH midstream assets). Utica Wet 750 economics assume E&P is burdened by 100% of the gathering and compression fees (RICE is currently in negotiations to dedicate its wet gas Utica acreage to a third party). Note: Utica Wet economics assume RICE pays a gathering and compression fee consistent with the fee RICE pays RICE OH midstream for gathering and compression. RICE is currently negotiating an agreement with a third party which may change single well economics. 87% 78% Utica Dry 750' Utica Wet 750' Net Locations NYMEX PV-10 Breakeven ($/MMBtu) (1) $2.35 $ % 106% 168% NYMEX %

18 Midstream Assets 18

19 Rice Midstream Partners LP ( RMP ) Marcellus Gathering and Compression Concentrated high pressure natural gas gathering and compression assets in the Marcellus Shale Substantially all of RICE s drilling locations within the RMP dedication are within 5 miles of the current PA gathering system Multiple long-haul takeaway options also limits RMP capex spend to deliver volumes to market Gathering throughput driven by SW PA technical leaders ~85% of 2015E estimated throughput from RICE operated volumes, ~15% from 3 rd party, primarily EQT RMP will begin installing compression for RICE operated wells in the second half of 2015 that is expected to generate revenues starting in 2Q 2016 Adding incremental compression capacity for third party volumes starting in 1H2015 GATHERING SYSTEM INFORMATION Legend RMP Gathering Pipeline RMP Gathering Pipeline to be Constructed Long-Haul Pipeline Delivery Meter Planned Delivery Meter RMP Compressor Station RMP Compressor Station to be Constructed RICE Acreage Dedicated to RMP RICE Acreage Dedicated to 3rd Party PA MIDSTREAM STATS Mileage (in miles) Gathering Capacity (MMDth/d) YE14 YE15 YE14 YE SYSTEM MAP System 9/30/14 Dedicated Gross Acreage Nov14 Throughput (MDth/d) Midstream Fees ($/Dth) (1) Washington RICE Operated (Washington) 47, Gathering: $0.30 Compression:$ rd Party (Washington) 21, Gathering (2) : $0.43 Compression (3) : $0.07 RICE Operated (Greene) 16, Gathering: $0.30 Compression: $0.07 Greene Total 84, Fees will be annually escalated based upon changes in the Consumer Price Index. Compression fees are derived on a per stage basis 2. Certain of RMP s third-party contracts provide for an increase in the gathering fee received by RMP upon completion of construction of an 18-mile, 30 inch pipeline connecting RMP s gathering system to TETCO (completed November 2014) 3. In certain of RMP s 3 rd party agreements, the per stage fees charged for compression varies depending on line pressure as opposed to being a flat fee per stage. Accordingly, the 3 rd party compression fee is shown on a wtd. avg. based on historical throughput. 19

20 Midstream System Statistics Marcellus (PA) Utica (OH) Gathering and Compression Statistics Gathering and Compression Statistics YE14 YE15 YE14 YE15 Gathering and Compression Statistics Gas Gathering Pipeline Mileage (miles) Gas Gathering Pipeline Mileage (miles) Design Gathering Capacity (MMDth/d) Design Gathering Capacity (MMDth/d) Acreage Dedications Acreage Dedications RICE 63,000 RICE 36,854 3rd Party 21,000 3rd Party 19,604 Total Acreage Dedications 84,000 Total Acreage Dedications 56,458 Midstream Fees Paid by RICE to RMP ($/dth) (1) (1) (2) Midstream Fees Paid by RICE to RICE OH ($/dth) Gathering $0.30 Gathering $0.30 Compression (per stage of compression) $0.07 Compression (per stage of compression) $0.07 3rd Party Midstream Fees ($/dth) 3rd Party Midstream Fees ($/dth) Gathering (3) $0.43 Gathering undisclosed Compression (4) $0.07 Compression undisclosed Water Distribution System Statistics Water Distribution System Statistics YE15 YE15 Water Distribution System Statistics Connected Water Sources (MMGPD) 9.2 Connected Water Sources (MMGPD) 16.5 RMP Assets at IPO 1. Fees will be annually escalated based upon changes in the Consumer Price Index. Compression fees are derived on a per stage basis 2. Assumes that gathering and compression fees for OH services are equivalent to those to be paid by RICE to RMP for gathering and compression for Pennsylvania assets. The gathering and compression fees for OH services are subject to negotiation and final agreement and may ultimately be changed. 3. Certain of RMP s third-party contracts provide for an increase in the gathering fee we will receive upon completion of construction of an 18-mile, 30 inch pipeline connecting its gathering system to TETCO (completed November 2014) 4. Certain of RMP s 3rd party agreements, the per stage fees charged for compression varies depending on line pressure as opposed to being a flat fee per stage. Accordingly, the 3rd party compression fee is shown on a wtd avg based on historical throughput. 20

21 Diverse Market Exposure FT portfolio includes 1.3 MMDth/d (1.2 Bcf/d) of firm capacity to premium US markets, including recently added 320 MDth/d on TETCO s Access South project with firm path to the Gulf Coast and estimated in-service date of November 2017 (1). Dominion East Ohio Firm Capacity: ~30 MDth/d In-service date: Online Harrison ET Rover Jefferson Firm Capacity: 100 MDth/d In-service date: Summer 2017 Market: Dawn, ON Brooke National Fuel Gas Supply (NFGS) PA Gas Gathering System Columbia Gas (TCO) Allegheny Columbia (TCO) Firm Capacity: ~200 MDth/d In-service date: Online Westside Expansion: 50 MDth/d In-service date: November 2014 Rockies Express Firm Capacity: 175 MDth/d In-service date: Summer 2015 Markets: Gulf Coast, Midwest Belmont Ohio OH Gas Gathering System Throughput Capacity: 4.1 MMDth/d In-service date: Online Washington PA Water System Direct-Connect Capacity: 8.9 MMGPD Expected Savings: $500k/well In-service date: YE2015 Throughput Capacity: 2.6 MMDth/d In-service date: YE2015 OH Water System Direct-Connect Capacity: 16.5 MMGPD Expected Savings: $500k/well In-service date: YE Conversion of Dth to Mcf assumes 1,050 Btu factor. Monroe Rice Legend Gas Gathering Line Water System Marshall Wetzel Greene Dominion Transmission Firm Capacity: ~90 MDth/d In-service date: Online Texas Eastern (TETCO) Team South Firm Capacity: 270 MDth/d In-service date: September 2014 Union Town to Gas City Firm Capacity: 86.5 MDth/d In-service date: November 2015 Open Firm Capacity: 50 MDth/d In-service date: November 2015 Access South Firm Capacity: 320 MDth/d In-service date: November 2017 Markets: Gulf Coast, Midwest 21

22 Long-Haul Firm Transport Improves Realized Pricing Majority of RICE s 1.3 MMDth/d of firm capacity delivers gas to markets outside of the Appalachian Basin Basis Exposure and Weighted Average Basis Exposure Basis Exposure Midwest Dom S TCO M2 Gulf Coast Wtd. Average Basis 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 8% 15% 11% 12% 15% 8% 20% 20% ($0.52) ($0.56) 46% 45% 0% Henry Hub ($/MMBtu) $ 2.92 $ 3.32 Basis Differential ($/MMBtu) (0.52) (0.56) BTU Uplift (Mmbtu/Scf) Pre-Hedge Realized Pricing ($/Mcfe) $ 2.52 $ 2.90 Hedging Impact Post-Hedge Realized Price $ 3.18 $ 3.10 Basis Differential ($0.46) ($0.48) ($0.50) ($0.52) ($0.54) ($0.56) ($0.58) ($0.60) 1. NYMEX Strip as of 11/6/

23 Why Invest in Rice? % of Leasehold in Core of Marcellus and Utica Differentiated Technical Approach Has Led to Industry Leading Well Results Owned and Operated Gathering and Water Midstream Infrastructure Supports Our Upstream Operations Firm Transportation Contracts De-risk Production Growth, Ensure Takeaway and Limit Appalachian Basis Exposure Conservative Financial and Hedging Approach to Protect Downside and Lock-In Attractive Returns Nimble and Incentivized Management and Technical Teams Top-Tier Growth With Attractive Risk-Adjusted Return Profile

24 Rice Market Snapshot 24 Rice Energy Inc (NYSE: RICE) $ millions, except per share data, as of 12/31/14 Shares Outstanding (MM) 136 Price as of 12/31/14 $20.97 Market Capitalization $2,858 Debt 900 Cash 230 Enterprise Value $3,528 Management Ownership 30% 52 Week Price Range High $33.32 Low RICE's RMP Units Owned % of RMP Units 50% % of RMP IDRs 100% Website: Investor Contact: Julie Danvers Julie.Danvers@RiceEnergy.com Rice Midstream Partners LP (NYSE: RMP) $ millions, except per share data, as of 12/31/14 Common Units (MM) 29 Subordinated Units (MM) 29 Total Units Outstanding 58 Price as of 12/31/14 $16.75 Market Capitalization $963 Debt Cash 25 Enterprise Value $ Week Price Range High $17.86 Low RICE's RMP Units Owned % of RMP Units 50% % of RMP IDRs 100% Website: Investor Contact: Julie Danvers Julie.Danvers@RiceMidstream.com

25 Appendix 25

26 Strong Growth Story RICE has a proven track record of growing production and inventory and has secured midstream and FT to support future growth Production Growth from High Rate of Return Projects 2 Substantial Growth to Low-Risk Drilling Inventory Net Core Acreage 136,442 90,678 46,700 43,978 53,816 82,626 Q Q Marcellus 13 Utica Net Production (MMcf/d) 47 Net Undeveloped Locations Q Q Marcellus Utica Q14 PA OH 46,000 net acres added in 2014, 100% within existing areas of operations (1) 1. Acreage and location count includes non-dedicated acreage and locations. 2. Includes volumes in excess of firm transportation. Non-Appalachian exposure includes TCO. (1) Pipeline Mileage Growing with Production PA system fully constructed by YE15; meaningful OH drop-down potential Pipe In-Service (miles) PA Gathering Mileage Growth (YoY) E YoY Growth 110% 76% 190% E 2014E 2015E 2015E PA Gas PA Water OH Gas OH Water Securing Additional Access to Premium Markets De-risk production growth, neutralize basis volatility, maximize margins YE2017 Firm Transport (Dth/d) 756, ,000 IPO Appalachia 1,323,000 1,083, , ,000 Current Non-Appalachia Basis Exposure ( ) % % 98 65% % (2)

27 Established Track Record of Drilling Proficiency MMcfe/d Average Net Daily Production Average Lateral Length v. Horizontal Drilling Days (1) Q14 2Q14 3Q14 PA OH Feet Days 10,000 9, , , ,000 6,691 6, ,286 5, , , , , Q14 2Q14 3Q14 PA OH Avg. Marcellus Hz. Drilling Days Net Operated Wells Turned To Sales (2) Average Drilling & Completion Cost Per Lateral Foot (1) Wells IP Operated. 2. Does not include wells from the Greene County Acquisition $/Foot 3,500 3,000 2,500 2,000 1,500 1, $3,241 $2,377 $1,924 $1,660 $1,476 $1,349 $1,254 $1, Q14 2Q14 3Q14 PA OH 27

28 Differentiated Long-Term Production per Well Our drilling and completion techniques have yielded greater production profile per well than our peers Washington and Greene County Historical Production (1) Cumulative Production (Bcfe) 10.0 Utica and Susquehanna, PA Historical Production (2) Cumulative Production (Bcfe) ,000 1,200 1,400 1,600 1,800 2,000 Days Online RICE Washington County RICE Greene County RICE Geneseo Peer Marcellus 1. Data for RICE based on actuals through 11/30/14, peer data based on Pennsylvania Department of Environmental Protection production reports through June 30, Data for RICE based on actuals through 11/30/14, peer data based on Ohio Department of Natural Resources report through June 30, ,000 1,200 1,400 1,600 1,800 2,000 Days Online Peer Peer RICE Bigfoot RICE Belmont Utica RICE Bigfoot Blue Thunder Peer Peer 12 Mo. Projection Monroe Susquehanna, PA (Marcellus) 28

29 Economic Assumptions Summary Marcellus W. Greene Utica Dry Utica Wet Type Well Assumptions Lateral Length 7,000 7,000 8,000 8,000 EUR (Bcf/1,000') NGL Yield (bbls/mmcf) 40 Gas Shrink 15% Pre-Processed EUR (Bcfe) Post-Processed EUR (Bcfe) % Gas 100% 100% 100% 78% Residue Gas Heat Content (Btu/Scf) 1,050 1,090 1,080 1,200 Initial Choke (MMcf/d per 1,000') Flat Period (days) Day Avg. IP (MMcf/d) D&C Assumptions D&C ($mm) $8.75 $8.75 $12.00 $12.00 D&C per Lateral ($ per foot) $1,250 $1,250 $1,500 $1,500 Operating Expenses Fixed Operating Expenses ($/well/month) -- WI $5,000 $5,000 $5,000 $5,000 Variable Operating Expenses ($/mcf) -- WI $0.23 $0.23 $0.23 $0.23 All-In Estimated Opex ($/mcf) - WI, year 1 of well $0.25 $0.25 $0.24 $0.24 Fixed Operating Expenses ($/well/month) -- NRI $6,098 $6,098 $6,250 $6,250 Variable Operating Expenses ($/mcf) -- NRI $0.27 $0.27 $0.28 $0.28 All-In Estimated Opex ($/mcf) - NRI, year 1 of well $0.30 $0.30 $0.30 $0.30 Other Costs/Expenses Well Impact Fee? Yes Yes No No Severance Taxes -- % of WI Sales Revenue 2.5% 2.5% Royalty 18% 18% 20% 20% Gathering and Compression Fees (Full Midstream Fees -- see footnote) $/dth -- WI $0.37 $0.57 $0.37 $0.37 $/dth -- NRI $0.45 $0.70 $0.46 $0.46 $/mcf -- WI $0.39 $0.62 $0.40 $0.44 $/mcf -- NRI $0.47 $0.76 $0.50 $0.56 Gathering and Compression Fees (Adjusted Midstream Fees -- see footnote) $/dth -- WI $0.19 $0.57 $0.37 $/dth -- NRI $0.23 $0.70 $0.46 $/mcf -- WI $0.19 $0.62 $0.44 $/mcf -- NRI $0.24 $0.76 $0.56 Firm Transportation and Basis $/dth -- WI $0.52 $0.52 $0.52 $0.52 $/dth -- NRI $0.63 $0.63 $0.65 $0.65 $/mcf -- WI $0.55 $0.57 $0.56 $0.62 $/mcf -- NRI $0.67 $0.69 $0.70 $0.78 Long Term Basis Pricing (% of NYMEX) 9% 9% 9% 9% All-in FT + Basis -- NRI ($/dth) assuming $4/NYMEX $0.99 $0.99 $1.01 $1.01 NGL Processing and Transportation ($/barrel) -- WI $ NYMEX Breakeven (Adj Fees) NYMEX Breakeven (Full Fees) Net Locations IRR (adj midstream fees) IRR (full midstream $4 NYMEX % 64% % 53% % 55% Marcellus W. Greene Utica Dry Utica Wet $2.60 $3.05 $2.35 $2.05 $2.85 $3.05 $2.90 $ % 90% 78% 80% 78% 70% NGL Processing and Transportation ($/barrel) -- NRI $7.88 Note: Single well IRRs and breakeven PV-10 estimates shown under two scenarios. (1) Adjusted Midstream Fee adjusts the gathering and compression fee paid by E&P by RICE s ownership in the midstream assets. For example, in the Marcellus, RICE owns a 50% interest in RMP which provides gathering and compression services to RICE and thus the single well returns analysis assumes the midstream fee is adjusted by 50%. In the Utica, RICE owns 100% of the RICE OH Midstream assets which provide gathering and compression services to RICE and the single well returns assume RICE does not pay a gathering and compression fee. (2) Full Midstream Fees assume E&P pays for the full gathering and compression fee regardless of RICE s ownership in the midstream assets. Note: Utica Wet economics assume RICE pays a gathering and compression fee consistent with the fee RICE pays RICE OH midstream. RICE is currently negotiating an agreement with a third party which may change single well economics. 60% 50% 40% 30% 20% 10% 0%

30 Commodity Hedging Summary We employ financial instruments (primarily swaps and costless collars) to mitigate commodity price risk Assures a base level of cash flow to reinvest in growth Typically target hedging 50% of forecasted production for up to two years out Add incremental hedges opportunistically beyond two years Utilize our bank group as counterparties to avoid cash collateral and margin calls Our hedging program helps underpin cash flow used to fund our capital investments. Significant portion of 2015 production is hedged at a weighted average price of $4.05/MMBtu 1. Hedges as of 12/31/14. Strategy Hedge Book (1) NYMEX Henry Hub Contract Summary Natural Gas Swaps Volume Hedged (Bbtu/d) Weighted Average Swap Price ($/MMBtu) $4.09 $4.14 $4.24 Collars Volume Hedged (BBtu/d) Weighted Average Floor Price ($/MMBtu) $ Weighted Average Ceiling Price ($/MMBtu) $ Deferred Puts Volume Hedged (BBtu/d) Put Price ($/MMBTU) Put Premium ($/MMBTU) Dominion South Point Contract Summary Natural Gas Swaps Volume Hedged (Bbtu/d) Weighted Average Swap Price ($/MMBtu) $2.53 $2.62 TCO Contract Summary Natural Gas Swaps Volume Hedged (Bbtu/d) 29 Weighted Average Swap Price ($/MMBtu) $3.30 Total Volume (BBtu/d) Weighted Average NYMEX Floor ($/MMbtu) $4.03 $4.14 $4.24 Weighted Average Appalachian Floor ($/MMbtu) $2.75 $2.62 % Swap 66% 100% 100% Basis Contract Summary TCO Volume (BBtu/d) Swap Price ($/MMBtu) ($0.42) ($0.42) Dominion South Volume (BBtu/d) Swap Price ($/MMBtu) ($0.79) ($0.79) 30

31 Post-MLP Organizational and Credit Structure Rice Energy Inc. NYSE: RICE DE Rice E&P Subsidiaries Rice Midstream Holdings LLC Rice Midstream Management LLC IDRs & LP Interests OH Gathering PA Water OH Water Public Unitholders % LP interest Non-economic GP Interest % LP interest E&P Credit Group Rice Midstream Partners LP NYSE: RMP Retained Midstream Credit Group MLP Credit Group PA Gathering 31

32 Cautionary Statements 32 FORWARD-LOOKING STATEMENTS This presentation and the oral statements made in connection therewith may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of All statements, other than statements of historical fact, regarding Rice Energy s strategy, future operations, financial position, estimated revenues and income/losses, projected costs, prospects, plans and objectives of management are forward-looking statements. These statements often include the words could, believe, anticipate, intend, estimate, expect, project and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on Rice Energy s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Rice Energy assumes no obligation to and does not intend to update any forward looking statements included herein. Rice Energy 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 the exploration for and development, production, gathering and sale of natural gas, natural gas liquids and oil. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating natural gas reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and the other risks described under Risk Factors in Rice Energy s Form 10-K filed on March 21, 2014 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 Energy s actual results and plans could differ materially from those expressed in any forward-looking statements. This presentation has been prepared by Rice Energy and includes market data and other statistical information from sources believed by Rice Energy to be reliable, including independent industry publications, government publications or other published independent sources. Some data are also based on Rice Energy s good faith estimates, which are derived from its review of internal sources as well as the independent sources described above. Although Rice Energy believes these sources are reliable, it has not independently verified the information and cannot guarantee its accuracy and completeness. NON-PROVEN OIL AND GAS RESERVES The SEC permits oil and gas companies, in their filings with the SEC, to disclose proved reserves, which are reserve estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions and certain probable and possible reserves that meet the SEC s definition for such terms. We may use certain broader terms such as EUR (estimated ultimate recovery of resources), and we may use other descriptions of volumes of potentially recoverable hydrocarbon resources throughout this presentation that the SEC does not permit to be included in SEC filings. These broader classifications do not constitute reserves as defined by the SEC, and we do not attempt to distinguish these classifications from probable or possible reserves as defined by SEC guidelines. Our estimates of EURs have been prepared by our independent reserve engineers. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized, particularly in areas or zones where there has been limited or no drilling history. We include these estimates to demonstrate what we believe to be the potential for future drilling and production by the company. Actual locations drilled and quantities that may be ultimately recovered from our properties will differ substantially. In addition, we have made no commitment to drill all of the drilling locations which have been attributed to these quantities. Ultimate recoveries will be dependent upon numerous factors including actual encountered geological conditions, the impact of future oil and gas pricing, exploration and development costs, and our future drilling decisions and budgets based upon our future evaluation of risk, returns and the availability of capital and, in many areas, the outcome of negotiation of drilling arrangements with holders of adjacent or fractional interest leases. Estimates of resource potential and other figures may change significantly as development of our properties provide additional data and therefore actual quantities that may ultimately be recovered will likely differ from these estimates. Our forecast and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells, the undertaking and outcome of future drilling activity and activity that may be affected by significant commodity price declines or drilling cost increases. Certain of Rice Energy's wells are named after superheroes and monster trucks, some of which may be trademarked. Despite their size and strength, Rice Energy's wells are in no manner affiliated with such superheroes or monster trucks. Initial production rates are subject to decline over time and should not be regarded as reflective of sustained production levels. In particular, production from horizontal drilling in shale oil and natural gas resource plays and tight natural gas plays that are stimulated with extensive pressure fracturing are typically characterized by significant early declines in production rates.

33 Additional Disclosures 33 Determination of Identified Drilling Locations as of September 30, 2014 Net undeveloped locations are calculated by taking RICE s total net acreage and multiplying such amount by a risking factor which is then divided by RICE s expected well spacing. RICE then subtracts net producing wells to arrive at undeveloped net drilling locations Undeveloped Net Marcellus Locations: RICE assume these locations have 7,000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing. In the Marcellus, we 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 9/30/14, RICE had 60,713 net acres in the Marcellus which results in 351 undeveloped net locations Undeveloped Net Western Greene County Locations: RICE assumes these locations have 7,000 foot laterals and 750 foot spacing between wells which yields approximately 121 acre spacing. In Western 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 9/30/14, RICE had 21,913 net acres in Western Greene County which results in 139 undeveloped net locations Undeveloped Net Upper Devonian Locations: RICE assumes these locations have 7,000 foot laterals and 1,000 foot spacing between wells which yields approximately 161 acre spacing. In the Upper Devonian, we 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 9/30/14, RICE had 55,000 net acres prospective for the Upper Devonian which results in 271 undeveloped net locations Undeveloped Net Utica Locations: RICE assumes these locations have 8,000 foot laterals and 750 foot spacing between wells which yields approximately 138 acre spacing. In the Utica, RICE applies a 10% risking factor to its net acreage to account for inefficient unitization. As of 9/30/14, RICE had 51,324 net acres prospective for the Utica in Ohio which results in 333 undeveloped net locations. This excludes ~2,500 net acres in Guernsey and Harrison Counties in Ohio Total undeveloped drilling locations dedicated to RMP & RICE are calculated by taking the total net RICE acreage dedicated to RMP in PA and to RICE in OH and multiplying such amount by a risking factor which is then divided by RICE s expected well spacing. RICE grosses this up by an assumed 90% WI, then subtracts gross producing wells to arrive at gross dedicated RICE operated drilling locations.