1. Greene County Acreage Acquisition Supplemental Slides April
12, 2016
2. 2 www.riceenergy.com Checks all of the boxes for an
attractive acquisition Core acreage in our focus counties
Contiguous to existing footprint in central Greene County ~27,400
net undeveloped Marcellus acres / ~23,500 net undeveloped Utica
acres ~3,200 gross acres of fee minerals are currently leased to
RICE and are generating royalty cash flow Ability to use midstream
platform to enhance value Acreage ideally located for RMP to
provide midstream services through connection to existing system No
existing midstream dedication RICE captures midstream value through
RMP LP and GP ownership Extends runway for future RMP distribution
growth Attractive return profile consistent with existing assets
Economic returns of ~40% at strip pricing(1) Comparable geology
with acreage de-risked by adjacent well results Attractive NRI on
acquired assets with total of ~6,200 acres owned in fee Manageable
expiry profile Undeveloped leasehold is ~44% held by
production/operations or in fee No change to RICEs 2016 capital
budget $200MM Stalking Horse Bid Transaction Highlights
__________________________ Note: Subject to purchase price
adjustments. 1. Strip pricing as of 4/8/16 2. Peers include RRC,
CNX, EQT and CVX RICE is uniquely positioned to acquire ANRs
natural gas assets - highly complementary to existing upstream
footprint and midstream infrastructure RICE Acreage Acquisition
Acreage LEGEND RICE Producing Wells Peer Producing Wells(2) SW
Marcellus Core Deep PA Utica Core Greene Washington PENNSYLVANIA OH
PA WV
3. 3 www.riceenergy.com Expanding Core Dry Gas Position 56,000
Pro Forma 247,900 Marcellus OH Utica PA Utica Net Drilling
Locations(2) * Stacked Pay on PA Acreage 72,500 669 215 155 143
119,400 __________________________ 1. Strip pricing as of 4/8/16.
2. Net undeveloped locations as of 12/31/15, pro forma for the
Greene County Prospective Acquisition. See slide entitled
Additional Disclosures on detail regarding RICEs methodology for
the calculation of locations. 3. Calculated as $200 million of
total purchase price less $20 million attributed to the value of
royalty rights (at assumed 5.0x multiple on 2015 royalty payments)
divided by 27,400 net Marcellus acres. Strategic assets
complementary to existing portfolio and extend inventory of
high-return locations 92,000 12/31/15 197,000 49,000 * 56,000 *
Developed ~27,400 net core Marcellus acres complementary to
existing position Adds 182 net core drilling locations 37% increase
in Marcellus locations ~44% acreage HBP, held by operations or
owned in fee Marcellus single well returns of ~40% at strip(1)
Stacked potential: ~23,500 net PA Utica acres provides additional
inventory upside and optionality Adds 50 net core drilling
locations 48% increase in PA Utica locations Development natural
extension for RICE Can utilize infrastructure from Marcellus
production ~3,200 gross acres owned in fee that is leased to RICE
and is generating royalty cash flow today Royalty acres on
producing and non-producing acreage on RICE leased acreage in
Greene county ~$4MM of 2015 cash flow Implied per acre purchase
price of ~$6,600 per Marcellus acre(3) represents a compelling
transaction multiple compared to recent Marcellus transactions
Pro-Forma E&P Assets Net Acres
4. 4 www.riceenergy.com Advantaged Midstream & Downstream
Solutions Increases Core Acreage Dedication to RMP by 25% WEST
VIRGINIA OH PA WV Greene Washington PENNSYLVANIA Beaver Brooke
Legend RMP Gathering Pipeline to be Constructed RICE Acreage RMP
Gathering Pipeline 3rd Party Dedicated to RMP RMP Water Pipeline
RMP Water Pipeline to be Constructed RMP Water Interconnect
Acquisition Acreage Acreage will be dedicated to Rice Midstream
Partners (NYSE: RMP) Increases RMPs core dedication to ~142,000
gross acres Marcellus acreage dedication has increased by 70% since
IPO Acreage within close proximity to RMPs existing infrastructure
RMP experienced in constructing and operating dry gas midstream
systems in central Greene County, PA Adjacent to RMPs Greene County
gathering system with connections into TCO, DTI,TETCO Access to
interstate pipelines through RICEs substantial long-term firm
transport to premium markets 933 MMBtu/d FT on TETCO,TCO and DTI
with firm paths to premium Midwest and Gulf Coast markets Flexible
optionality to produce into improving local markets RICE captures
midstream cash flows through ~38% LP ownership plus ~92% ownership
of IDRs in RMP TETCO TCO TETCO
5. 5 www.riceenergy.com Sale Process and RICE Competitive
Advantages Rice Energy expects to be named as stalking horse bidder
for the Alpha assets and has signed an Asset Purchase Agreement,
which will be filed with the bankruptcy court to seek courts
approval Stalking horse bidder selected after a broad marketing
process led by sellers financial advisor Pursuant to standard
bankruptcy court proceedings, there will be a public auction
process to follow The potential acquisition represents an asset
transaction for Rice Energy with a tax basis step-up Rice Energy is
buying natural gas assets only, which will be free and clear of any
legal liabilities associated with the coal assets 363 SALE PROCESS
OVERVIEW As the stalking horse bidder, Rice Energy is strategically
better positioned than other potential bidders for the assets
Contiguous acreage adjacent to existing position in Greene County
Midstream advantage with existing infrastructure in close proximity
and RMP to provide midstream support and interconnectivity
Knowledge of assets and geologically similar to existing
Marcellus/Utica acreage Rice Energy has deep expertise in operating
in areas with coal mining activities Successful JV with Alpha prior
to IPO Purchase price includes bid protections, which include a
break-up fee and expense reimbursement Rice Energy has had
substantial input in negotiating the Asset Purchase Agreement and
has had the ability to perform substantial due diligence on the
assets and the sale process generally RICE ADVANTAGES
6. 6 www.riceenergy.com Rice Energy Strategy Allocate 100% of
Capital to Core Assets with Attractive Returns Protect Returns and
Balance Sheet through FT Portfolio and Systematic Hedging
Strategically Position Midstream to Maximize Value Promote
Operational Excellence through Innovation, Safety and Environmental
Stewardship Long-Term ShareholderValue Creation Maintain a Strong
Balance Sheet
7. 7 www.riceenergy.com Appendix
8. 8 www.riceenergy.com Financial Strength Healthy balance
sheet, ample liquidity and robust hedges 2016 budget focused on
balance sheet and E&P returns while creating significant future
midstream value Healthy Balance Sheet: Expect to exit 2016 at ~3.0x
E&P leverage with no dependence on drop downs or capital
markets Ample Liquidity: $1.4B of liquidity(1): $1.1B E&P and
$300MM RMH Robust & Attractive Hedges: 87% of 2016 production
hedged at $3.26/MMBtu; majority of 2017 production hedged at
$3.14/MMBtu Highly concentrated acreage position in the most
economic areas of the Marcellus and Utica Shale Core Locations(2):
669 net undeveloped Marcellus wells + 215 net undeveloped OH Utica
wells + 155 net undeveloped PA Utica wells Resilient Economics:
Development and operating cost declines have driven avg. breakeven
PV-10 to ~$2.15/MMBtu (~15% lower than 2015) Compelling Returns in
Challenging Market: ~40% Pre-Hedge IRRs at strip pricing(3)
Midstream is a valuable and differentiated element of the RICE
story #1 Gatherer in the Dry Gas Core: 275,000 acres(4) dedicated
from 3 of the 5 most active operators in SW Appalachia Unique
Financial Advantages: ~$1.0B of midstream monetizations and
financings to date with ~$1.3B of estimated remaining drop down
inventory and GP Holdings with expected future value of $1.0B+ High
Growth MLP: RMP expects 20% distribution growth with current asset
base while maintaining 1.3x-1.5x coverage in 2016 Firm
Transportation (FT) Portfolio is right-sized for RICEs production
growth and basis outlook Right-Sized: FT covers >80% of 2016
production and decreases to ~60% by 2020 Right Exposure: Expect
local basis to improve from $0.75 in 2016 (30% of production) to
$0.50 in 2020 (~40% of production) Well Positioned to Navigate
Environment __________________________ 1. As of 12/31/2015 pro
forma for the preferred equity transaction of $375 million. 2. Net
undeveloped locations as of 12/31/15, pro forma for the Greene
County Prospective Acquisition. See slide entitled Additional
Disclosures on detail regarding RICEs methodology for the
calculation of locations. 3. Strip pricing as of 4/8/16. See
Economics slide for more detailed assumptions used to generate
single well economics. 4. Excludes ~49K net PA Utica acres
dedicated to RMP from RICE and additional PA Utica acreage
dedicated to RMP from EQT.
9. 9 www.riceenergy.com 0.0 x 1.0 x 2.0 x 3.0 x 4.0 x 5.0 x 6.0
x 7.0 x 8.0 x 9.0 x 0.0 x 5.0 x 10.0 x 15.0 x 20.0 x 25.0 x RICE
Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 EV / 2016E EBITDA
Net Debt / 2016E EBITDA Peer Median 12.7x Peer Median 4.1x
EV/2016EEBITDA NetDebt/2016EEBITDA RICE trades at
AttractiveValuation Relative to Peers RICE trades at a 3.9x
discount to peers despite a strong financial position, core assets
and growing cash flow The median EBITDA multiple implies a $29.12
RICE stock price, an 86% premium to current price(1)
__________________________ Note: Peer group includes AR, CNX, COG,
EQT, GPOR, RRC, and SWN. Not pro forma for proposed RICE equity
issuance and acquisition. 1. Figures based on IBES consensus EBITDA
and YE 2016 net debt, pro forma for equity offerings. Stock price
as of 4/08/16. 2016E EBITDA Growth Positive Negative Positive
Positive Positive Negative Negative Negative % Hedged in 2016 87%
60% 100% 42% 68% 5% 71% 14%
10. 10 www.riceenergy.com 647 800 247 400 175 401 894 1,200
2013 2014 2015 2016E PA OH $0.43 $0.31 $0.26 $0.55 $0.38 $0.36
$0.38 $0.38 $0.38 $0.44 $0.43 $0.34 $1.80 $1.50 $1.34 2013 2014
2015 LOE and Taxes FT Gathering G&A 127 274 552 720 2013 2014
2015 2016E 249 644 1,015350 662 685 599 1,306 1,700 2013 2014 2015
PD PUD $2,457 $1,651 $1,450 2014 2015 2016E $1,439 $1,237 $1,181
$1,150 2013 2014 2015 2016E Track Record of Low-Cost Growth PER
UNIT CASH COSTS ($/MCFE)(1)UTICA D&C COSTS ($/FT.)MARCELLUS
D&C COSTS ($/FT.) MIDSTREAM THROUGHPUT (MDTH/D)NET PRODUCTION
(MMCFE/D)PROVED RESERVES (BCFE) __________________________ 1.
E&P 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.
11. 11 www.riceenergy.com 25% 47% 77% 114% 159% 23% 49% 83%
124% 173% 25% 50% 75% 100% 125% 150% 175% 200% $2.50 $3.00 $3.50
$4.00 $4.50 Attractive SingleWell Economics Net Locations (2) 669
168 (3) HHUB PV-10 Breakeven ($/MMBtu) $2.08 $2.18 DRY GAS SINGLE
WELL ECONOMICS RICE continues to drive down D&C and operating
costs to maximize returns Inventory currently generates ~40%
returns at strip(1); HHUB PV10 breakevens of $2.08-$2.18 HHUB
__________________________ Note: See appendix for summary of
assumptions used to generate single well IRRs. Marcellus 750 and
Utica 1,000 economics assume E&P is burdened by 50% of the
gathering and compression fee and 50% of water completion fees
(RICE owns a 41% LP interest in RMP, 100% of RICE Ohio Midstream
and 100% of RMP IDRs). 1. Strip as of 4/8/16. 2. Pro forma for the
Greene County Prospective Acquisition. 3. Excludes ~47 wet OH Utica
net undeveloped locations and ~155 dry gas PA Utica net undeveloped
locations. Dotted lines represent previously reported economics
NYMEX ($/MMBtu) IRR
12. 12 www.riceenergy.com 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0
10.0 250 500 750 1,000 1,250 1,500 1,750 2,000 Days Online Peer
Susquehanna, PA (Marcellus) Peer Utica Peer Belmont Peer Monroe
Rice Utica 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 250 500 750
1,000 1,250 1,500 1,750 2,000 Days Online Peer Marcellus Rice
Greene Rice Washington Rice Geneseo UTICA & SUSQUEHANNA, PA
HISTORICAL PRODUCTION(2)WASHINGTON & GREENE COUNTY HISTORICAL
PRODUCTION(1) Differentiated Long-Term Production perWell
__________________________ 1. Data for RICE based on actuals
through 12/31/15, peer data based on Pennsylvania Department of
Environmental Protection production reports through 11/30/15. 2.
Data for RICE based on actuals through 12/31/15, peer data based on
Ohio Department of Natural Resources report through 9/30/15. 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)
13. 13 www.riceenergy.com Most Efficient Growth in Appalachia
__________________________ 1. Horizontal Marcellus and Utica wells
only. Data for RICE based on actuals through 1/31/2016, peer data
based on Pennsylvania Department of Environmental Protection and
Ohio Department of Natural Resources production reports through
September 30, 2015. RICE production excludes acquired CHK wells.
Peers: APC, AR, CHIEF, CHK, COG, CNX, EQT, GPOR, NFG, RRC, SWN
& TLM. RICEs peer-leading production growth is driven by a
focus on well quality, not quantity RICE reached over 850 MMcfe/d
of gross operated production with fewer wells than every other
operator(1) in Appalachia Chart below demonstrates RICEs ability to
rapidly grow production w/ a clear path to 1 Bcf/d & beyond w/
~1,200+ wells left to drill MMcf/d PRODUCTION VERSUS WELLS - TOP
PRODUCERS IN APPALACHIA(1) SW Appalachia Operators NE Appalachia
Operators 153 Operated Wells ProducingWell Count
14. 14 www.riceenergy.com 0 20 40 60 80 100 120 140 160 180 200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 7 4 3 3 2 2
2 1 1 1 14 8 4 5 4 12 7 4 10 6 0 5 10 15 20 25 Peer 1 Peer 2 Rice
Energy Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Asset
Quality Industry High Grading to Quality Top Ten Active Operators
Laid Down From Peak Active March 2016: 34 Rigs Rig Count PA
Marcellus & Utica Pennsylvania West Virginia Ohio Nov 2008 34
Rigs Appalachia Rig Counts(1): 2007 - 2016 RICE Acreage #ofRigs
__________________________ 1. RigData + Baker Hughes Rig Reports.
RICEs footprint is located in the epicenter of remaining activity
in Appalachia due to best in class economics Early 2012 Peak of 175
Rigs March 2016 34 Rigs Acquisition Acreage Current Rig
15. 15 www.riceenergy.com Pennsylvania Utica: A Natural
Extension for Rice RICE OH Utica >40 MMcfe/d RICE PA Utica Peer
Results 60-70 MMcfe/d Peer Results 10-30 MMcfe/d Point Pleasant
Core __________________________ 1. RigData January 2016 Report.
RICE OHIO UTICA RICE PENNSYLVANIA UTICA 16 Producing Wells 1
Producing Well RICE Belmont County, OH RICE Greene County, PA
10,500 12,000 13,0009,5007,500 OH WV Guernsey Belmont Marshall
Washington / Greene PA The Utica core extends directly underneath
RICEs Pennsylvania assets. Initial RICE and Industry wells point to
massive resource potential. Peer Results 40-60 MMcfe/d Wet Gas Dry
Gas Dry Gas Dry GasRICE Deep Utica Well In Sales, 12 MMcfe/d choked
Expect flat production for 700+ days EQT Tests 42 73 MMcfe/d RRC
Test 59 MMcfe/d CNX Test 61 MMcfe/d RICE Acreage Current Rig(1)
Deep Test Report Porosity 6% 12% 0% Washington RICE PA Utica: One
well placed online in August 2015 Lateral Length: 5800 Initial
Pressure: 10,000 psi Expect to be competitive with Marcellus/OH
Utica returns at $15MM well costs CNX Test 61 MMcfe/d Acquisition
Acreage Greene
16. 16 www.riceenergy.com 2.0 4.0 6.0 8.0 10.0 12.0 14.0 0.50
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 MMcf/d YearsRevised
Marcellus 750' Type Well Previous Marcellus Type Well Marcellus
Type Curve Updated Restricted Rate __________________________ Note:
See appendix for summary of assumptions used to generate single
well IRRs. MARCELLUS SINGLE WELL TYPE CURVE Cumulative Production
Current Prior Var. 1 Year 3.4 3.8 (0.4) 2 Year 5.2 5.6 (0.4) 5 Year
8.1 8.2 (0.1) 10 Year 10.6 10.3 0.3 EUR 15.1 13.9 1.2 TYPE CURVE
UPDATES RICE revised Marcellus type well to reflect latest
production history, which resulted in an increase to EURs 136
operated wells online Updated choke management program to maximize
long-term production & PV-10 Updated economic assumptions
including D&C, operating and FT costs Operating costs decreased
~40% FT costs decreased ~25% D&C / foot decreased 8% Type curve
reflects more aggressive choke management program to drive
increased EURs on longer laterals Marcellus Current Prior Var. (%)
EUR (Bcf / 1,000') 2.16 1.98 9% Lateral Length 7,000 7,000 EUR
(Bcf) 15.1 13.9 9% Interwell Spacing (ft) 750 750 Choke (MMcf/d per
1,000') 1.50 1.85 (19%) Flat Time (days) 180 150 20% 1-Year Cum.
(Bcf) 3.4 3.8 (12%) 2-Year Cum. (Bcf) 5.2 5.6 (8%) 5-Year Cum.
(Bcf) 8.1 8.2 (2%) 10-Year Cum. (Bcf) 10.6 10.3 4% IRR ($3.50 HHUB)
77% 46% 67% PV-10 ($ mm) ($3.50 HHUB) $10.1 $5.8 74%
17. 17 www.riceenergy.com 5.0 10.0 15.0 20.0 0.50 1.00 1.50
2.00 2.50 3.00 3.50 4.00 MMcf/d YearsOhio Utica 1,000' Type Well
Previous Utica Type Well Utica Type Curve 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 16 operated wells online RICE has
observed interference between wells spaced at 750, and believe
1,000 spacing may be the optimal development spacing to maximize
PV-10 in the current environment Updated economic assumptions
including D&C, operating and FT costs Operating costs decreased
~40% FT costs decreased ~25% D&C / foot decreased 3% Choke
management extends flat time from 9 months to 12 months.
Incorporated historical decline data. Cumulative Production Current
Prior Var. 1 Year 5.8 5.2 0.6 2 Year 9.0 7.8 1.2 5 Year 12.5 11.3
1.2 10 Year 15.2 14.2 1.0 EUR 21.0 19.9 1.1 Utica Current Prior
Var. (%) EUR (Bcf / 1,000') 2.33 2.50 (7%) Lateral Length 9,000
8,000 13% EUR (Bcf) 21.0 20.0 5% Interwell Spacing (ft) 1,000 750
33% Choke (MMcf/d per 1,000') 1.80 1.87 (4%) Flat Time (days) 365
270 35% 1-Year Cum. (Bcf) 5.8 5.2 12% 2-Year Cum. (Bcf) 9.0 7.8 16%
5-Year Cum. (Bcf) 12.5 11.3 11% 10-Year Cum. (Bcf) 15.2 14.2 7% IRR
($3.50 HHUB) 83% 56% 48% PV-10 ($ mm) ($3.50 HHUB) $13.7 $10.3
33%
18. 18 www.riceenergy.com 77% 83% 25% $10.1 $13.7 $4.7 $2.0
$4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 0% 10% 20% 30% 40% 50% 60%
70% 80% 90% Marcellus OH Utica Dry OH Utica Wet PV10($MM) IRR
Economics Adjusted for Gathering Ownership at $3.50 HHUB IRR PV10
Economics ECONOMIC ASSUMPTIONSPV10 & IRRS (1) D&C costs
revised lower Operating costs reduced ~40% Average demand fee
updated for royalty charge-back Western Greene locations included
in Marcellus; Utica interwell spacing increased to 1,000
__________________________ 1. Economics assume E&P 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). 2. D&C costs are fully
burdened by water completion fees of ~$50 per lateral foot in the
Marcellus and ~$65 per lateral foot in the Utica. 3. Pro forma for
the Greene County Prospective Acquisition. and $27/bbl NGLs (2)
Marcellus Utica Dry Utica Wet Type Well Assumptions Spacing 750
1,000 1,000 Lateral Length 7,000 9,000 9,000 EUR (Bcf/1,000') 2.16
2.33 1.83 NGL Yield (bbls/mmcf) 26 Gas Shrink 11% Pre-Processed EUR
(Bcfe) 15.1 21.0 16.5 Post-Processed EUR (Bcfe) 15.1 21.0 17.2 %
Gas 100% 100% 85% Heat Content (Btu/Scf) 1,050 1,080 1,159 Initial
Choke (MMcf/d per 1,000') 1.50 1.80 1.41 Flat Period (days) 180 365
180 D&C Assumptions D&C ($MM) $8.0 $13.0 $13.0 D&C per
Lateral ($ per foot) $1,150 $1,450 $1,450 Operating Expenses (NRI
Gas) Fixed Operating Expenses ($/well/month) $6,692 $6,692 $6,692
Variable Operating Expenses ($/Mcf) $0.11 $0.11 $0.11 Other
Costs/Expenses (NRI Gas) Well Impact Fee? Yes No No Severance Taxes
($/Mcf) $0.04 $0.04 Avg. Royalty 18% 20% 20% Gathering, Processing
and Compression (NRI Gas) Gathering, Compression, Processing Fees
($/Dth) $0.45 $0.46 $1.00 NGL Fractionation and Transport ($/bbl)
$5.80 Adjusted Gathering and Compression Fees ($/Dth) $0.23 $0.23
$1.00 Midstream Adjustment 50% 50% Firm Transportation and Basis
(NRI Gas) Basis + Fuel (Variable) % of Gas Price (9%) Wtd. Avg
Reservation Fee + Commodity Fee (Fixed) $/Dth ($0.42) All-In
Assuming $3.50 HHUB (NRI) ($0.75) Inventory Net Undeveloped
Locations 487 168 47 NRI Undeveloped Horizontal Feet (MM ft) 2.8
1.2 0.3 Economics Summary (Adj. for Midstream Ownership In Each
Area, $3.50 HHUB, $27/bbl NGLs) PV-10 Single Well $10.1 $13.7 $4.7
IRR 77% 83% 25% Payback (Months) 16 14 35 Breakeven Realized
($/Dth) $2.08 $2.18 $2.85 669 3.9 16.5% (3) (3)
19. 19 www.riceenergy.com RICE 4Q 2015 Adjusted EBITDAX
Reconciliation __________________________ Note: Adjusted EBITDAX is
a supplemental non-GAAP financial measure that is used by
management and external users of our consolidated financial
statements, such as industry analysts, investors, lenders and
rating agencies. We define Adjusted EBITDAX as net income (loss)
before non- controlling interest; interest expense; income taxes;
depreciation, depletion and amortization; amortization of deferred
financing costs; amortization of intangible assets; derivative fair
value (gain) loss, excluding net cash receipts on settled
derivative instruments; non-cash stock compensation expense;
non-cash incentive unit expense; exploration expenses; and other
non-recurring items. Adjusted EBITDAX is not a measure of net
income as determined by United States generally accepted accounting
principles, or GAAP. 1. The adjustments for the derivative fair
value (gains) losses and net cash receipts on settled commodity
derivative instruments have the effect of adjusting net income
(loss) for changes in the fair value of derivative instruments,
which are recognized at the end of each accounting period because
we do not designate commodity derivative instruments as accounting
hedges. This results in reflecting commodity derivative gains and
losses within Adjusted EBITDAX on a cash basis during the period
the derivatives settled. 2. Add back non-controlling interest to
Adjusted EBITDAX to calculate leverage metrics. 3. Add back RMP
water distribution revenue from RICEs working interest share of the
water fees that was eliminated in the RICE consolidation. Three
Months Ended Year Ended ($ in thousands) December 31, 2015 December
31, 2015 Adjusted EBITDAX reconciliation to net income (loss): Net
income (274,253)$ (267,999)$ Interest expense 24,009 87,446
Depreciation, depletion and amortization 94,787 322,784 Impairment
of gas properties 18,250 18,250 Impairment of goodwill 294,908
294,908 Amortization of deferred financing costs 1,403 5,124
Amortization of intangible assets 408 1,632 Gain on derivative
instruments (1) (89,019) (273,748) Net cash receipts on settled
derivative instruments (1) 76,228 193,908 Acquisition expense 1,111
1,235 Non-cash stock compensation expense 4,847 16,528 Non-cash
incentive unit (income) expense (9,773) 36,097 Income tax expense
(6,217) 12,118 Gain from sale of interest in gas properties - (953)
Exploration expense 1,212 3,137 Other expense 756 4,380
Non-controlling interest (6,504) (23,337) Adjusted EBITDAX 132,153$
431,510$ Further Adjusted EBITDAX reconciliation: Adjusted EBITDAX
132,153$ 431,510$ Non-controlling interest (2) 6,504 23,337 Water
revenue adjustment(3) 5,577 27,336 Further Adjusted EBITDAX
144,234$ 482,183$
20. 20 www.riceenergy.com Cautionary Statements 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, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements, other than statements of historical fact,
regarding Rice Energys strategy, future operations, financial
position, estimated revenues and income/losses, projected costs, as
amended, prospects, plans and objectives of management are
forward-looking statements. These statements often include the
words could, believe, anticipate, may, assume, forecast, position,
predict, strategy, expect, intend, plan, estimate, project, budget,
potential, or continue 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
estimates of Rice Energys reserves, expectations of plans,
strategies, objectives and anticipated financial and operating
results of Rice Energy, including as to Rice Energys drilling
program, production, hedging activities, and capital expenditure
levels. These forward-looking statements are based on Rice Energys
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. You are cautioned not to place undue reliance on any
forward-looking statements. 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; risks relating to
joint venture operations; and the other risks described under Risk
Factors in Rice Energys 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 Energys 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 Energys 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 SECs 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.
21. 21 www.riceenergy.com Determination of Identified Drilling
Locations as of December 31, 2015 (not pro forma for Greene County
Prospective Acquisition): Net undeveloped locations are calculated
by taking RICEs total net acreage and multiplying such amount by a
risking factor which is then divided by RICEs expected well
spacing. RICE then subtracts net producing wells to arrive at
undeveloped net drilling locations. Undeveloped Net Marcellus
Locations RICE assumes these locations have 7,000 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 92,000 net acres in the
Marcellus which results in 487 undeveloped net locations.
Undeveloped Net Ohio Utica Locations RICE assumes these locations
have 9,000 foot laterals and 1,000 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 56,000 net acres prospective for the Utica in Ohio
which results in 215 undeveloped net locations.This excludes ~2,500
net acres in Guernsey and Harrison Counties in Ohio. Undeveloped
Net Pennsylvania Utica Locations RICE assumes these locations have
8,000 foot laterals and 2,000 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 49,000 net acres prospective for the Utica in
Pennsylvania which results in 105 undeveloped net locations.
Additional Disclosures