Rice Midstream Partners First Quarter 2015 Supplemental Slides May - PowerPoint PPT Presentation

Rice Midstream Partners First Quarter 2015 Supplemental Slides May 7, 2015 1

Rice Midstream Partners – MLP Overview S YSTEM M AP Marcellus Gathering and Compression  Initial assets consist of gas gathering system with Legend Beaver RMP Gathering Pipeline expected capacity of 4.1 MMDth/d by YE15 RMP Gathering Pipeline Beaver to be Constructed  1Q 2015 throughput of 557 MDth/d RICE Acreage 3 rd Party Dedicated to RMP  11% 3 rd Party throughput Brooke Pre-existing 3 rd Party Dedication  Gathering throughput driven by SW PA technical leaders Jefferson  ~85% of 2015E estimated throughput from Brooke RICE operated volumes, ~15% from 3 rd party, primarily EQT  RMP will spend $90MM to install compression in Washington 2015 that will start generating revenue in 2016 OHIO  Completed the addition of compression Ohio capacity for third party volumes in 1Q15  Installing compression for RICE in 2H 2015 PENNSYLVANIA  RMP will spend $85MM to build ~30 miles of gathering pipeline in 2015  Substantially all of RICE’s drilling locations will be within 2 miles of gathering pipeline by YE 2015 Greene Fayette PA G ATHERING S YSTEM I NFORMATION OH Marshall 12/31/14 WV Dedicated 1Q 2015 2015E 2015E Gross Throughput EBITDA Capex WEST VIRGINIA Acreage (MDth/d) ($MM) ($MM) Wetzel Concentrated, Prolific Position to PA Gathering 86,000 557 $ 55 – 60 $ 180 Drive Targeted 20% Distribution Growth 2

RMP First Quarter 2015 Financial Summary Solid first quarter results supported by well capitalized balance sheet and ample liquidity Financial Summary (1) Capitalization and Liquidity First quarter average daily throughput of 557 MDth/d; 8%  $9MM cash on hand as of 3/31/15  increase above fourth quarter throughput  Zero drawn under our revolving credit facility Adjusted EBITDA of $12.5MM   Distributable Cash Flow of $10.9MM  Distribution of $0.1875 / unit Coverage Ratio of 1.02x  Distributable Cash Flow Liquidity as of March 31, 2015 Three Months Ended ($ millions, except per unit data) March 31, 2015 ($ in millions) Affiliate gathering volumes (MDth/d) 494 Revolver capacity $ 450 Less: Borrowings Third-party gathering volumes (MDth/d) 63 — Plus: Cash and cash equivalents 9 Total gathering volumes (MDth/d) 557 Liquidity $ 459 Total operating revenues $16.2 Operating expenses 6.6 Total operating income $9.6 Adjusted EBITDA $12.5 Distributable cash flow $10.9 DCF / unit $0.1903 Distribution declared $10.8 Distribution / unit $0.1875 Coverage Ratio 1.02x 3

Industry-Leading Throughput Growth 1Q 2015 throughput of ~668 MDth/d through RICE and RMP midstream systems (17% 3 rd Party), 13% increase from 4Q14 throughput RMP System: 557 MDth/d (11% 3 rd Party) • RICE OH System: 111 MDth/d (44% 3 rd Party) • RMP and RICE OH Midstream Historical Throughput Dth/d Average Throughput (MDth/d) 2010 2011 2012 2013 2014 1Q 2015 800,000 Throughput 4 18 61 176 409 668 QoQ / YoY Growth 405% 238% 188% 133% 13% 700,000 600,000 500,000 400,000 300,000 200,000 100,000 – 10/31/10 3/31/11 8/31/11 1/31/12 6/30/12 11/30/12 4/30/13 9/30/13 2/28/14 7/31/14 12/31/14 (1) RMP - Rice Operated (PA) RMP - 3rd Party (PA) RICE - Rice Operated (OH) RICE - 3rd Party (OH) __________________________ PA 3 rd party volumes as of April 2014 close of Momentum asset acquisition. 1. 4

Drop Down Opportunities Overview Overview of Assets  Assets include OH gas gathering and PA/OH water Legend RICE Gathering Pipeline services RICE Gathering Pipeline to be Constructed Hancock  OH Gathering 1Q 2015 throughput of 111 MDth/d RICE Water Pipeline Beaver RICE Water Pipeline to be Constructed  Gathering throughput driven by SE OH technical RICE Water Interconnects leaders RICE Acreage 3 rd Party Dedicated to RICE  ~80% of 2015E estimated throughput from Pre-existing 3 rd Party PENNSYLVANIA RICE operated volumes, ~20% from GPOR Dedication Jefferson  OH gathering system will be attractive drop-down Brooke candidate for RMP (RMP has a ROFO on RICE’s OH Harrison Washington midstream system)  Build-out will be largely complete by YE2015 OHIO Belmont Ohio Fayette Greene Marshall Monroe S YSTEM I NFORMATION WEST VIRGINIA 12/31/14 Wetzel Dedicated 1Q 2015 2015E 2015E Gross Throughput EBITDA Capex Acreage (MDth/d) ($MM) ($MM) RICE Retained 57,000 111 $ 35 – 40 $ 210 Building Significant Drop Down Potential Midstream 5

RMP Financial Overview C APITALIZATION AND L IQUIDITY AT 3/31/15 2015 G UIDANCE $ in millions, except per share data, as of 3/31/15 2015 Capital Budget (in millions) Common Units 29 Subordinated Units 29 Gas Gathering $ 85 Total Units Outstanding 58 Compression $ 90 Price as of 3/31/15 $ 14.11 Total Expansion Capex $ 175 Market Capitalization $ 811 Maintenance Capex $ 5 Cash 9 Total Capital Expenditures $ 180 Revolving credit facility - Debt - Enterprise Value $ 802 Guidance Adjusted EBITDA (in millions) $55 $60 Leverage Statistics % Third Party 20% Debt / EBITDA 0.0x Distributable Cash Flow (in millions) $48 $53 EBITDA / Interest nm Average DCF Coverage Ratio 1.1x 1.2x Debt to EBITDA Covenant 4.75 Annualized Distribution ($ per unit) $0.75 Liquidity Summary Revolving credit facility $ 450 RMP Units Owned Less: amount drawn - % of RMP Units - Public 50% Availability under RCF $ 450 % of RMP Units - RICE 50% Plus: cash on hand 9 % of RMP IDRs - RICE 100% Liquidity as of 3/31/15 $ 459 6

RICE Overview 7

Concentrated, Core Assets C OMPANY T OTAL C ORE A SSETS Highly concentrated position of ~146,000 net acres in the Legend RMP Gathering Pipeline cores of the lowest breakeven gas shale plays in the U.S. RMP Gathering Pipeline to be Constructed  ~1,230 net undeveloped locations (1) RICE OHIO Gathering Pipeline  440 MMcfe/d net 1Q15 production from 94 net wells RICE OHIO Gathering Pipeline to be Constructed  Breakeven NYMEX PV-10 of $2.35-$3.05 / MMBTU RICE Acreage P ENNSYLVANIA Beaver Hancock ~89,000 net Marcellus acres, <5% developed Harrison Marcellus Core  495 net undeveloped Marcellus locations (1) Jefferson Harrison  382 net undeveloped Upper Devonian locations (1)  86 net producing wells (83 Marcellus, 3 Upper Devonian) Brooke Utica Core  Drilling first Pennsylvania Utica well Washington Belmont Ohio O HIO ~57,000 net Utica acres, <1% developed Fayette  356 net undeveloped Utica locations (1) Greene Monroe Marshall  8 net (3 net operated) producing Utica wells Wetzel RICE FT & M IDSTREAM Fayette Monroe Utica Stack Potential  FT: 1.3 MMDth/d of firm capacity: 66% to Gulf Coast/TCO/ Monongalia Midwest markets in 2015  80% by Q4’17  RMP Midstream by YE2015: 4.1 MMDth/d gas gathering PA OH capacity  RICE Midstream by YE2015: 2.6 MMDth/d gas gathering WV capacity and ~26 MMgpd of water distribution __________________________ 1. Net undeveloped locations as of 12/31/14. Approximately 77,000 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. 8

RICE First Quarter 2015 Financial Summary Solid first quarter results supported by well capitalized balance sheet and ample liquidity Financial Summary Operating Statistics 1Q15 net production of 440 MMcfe/d; 11% increase above 4Q14  1Q 2015 Actual 51% of 1Q15 production sold to premium, non-Appalachian mkts.  Total production (MMcfe/d) 440  Adjusted EBITDAX of $84MM % Gas 99% Completed successful $400MM bond offering at 7.25% due 2023  % Operated 92% Increased borrowing base ~20% to $650MM in April  % Marcellus 85% NYMEX Henry Hub price ($/MMBtu) $ 2.87 Capitalization at 3/31/2015 Average basis impact ($/MMBtu) (0.47) ($ in millions) 3/31/2015 Firm transportation fuel & variables ($/MMBtu) (0.09) Btu uplift (MMBtu/Mcf) 0.11 Cash Pre-hedge realized price ($/Mcf) 2.42 Rice Energy $ 339 Realized hedging gain ($/Mcf) 0.70 Rice Midstream Holdings 1 Post-hedge realized price ($/Mcf) 3.12 Rice Midstream Partners 9 Total consolidated cash $ 349 Net firm transportation sales 0.08 Adjusted realized price ($/Mcf) $ 3.20 Long-term debt Rice Energy Average costs per Mcfe: Actual ($MM) $ / Mcfe E&P credit facility $ - E&P Revenue (including net FT sales) $ 100 $ 2.52 6.25% Senior notes due 2022 900 Hedging gain 27 0.69 7.25% Senior notes due 2023 397 Lease operating 12 0.29 Total Rice Energy debt 1,297 Gathering, compression and transportation 14 0.36 Rice Midstream Holdings revolver 17 Rice Midstream Partners revolver - Production taxes and impact fees 1 0.04 Total consolidated debt $ 1,314 General and administrative 17 0.44 Net debt 965 Depletion, depreciation and amortization 63 1.58 Shareholders equity $ 1,996 Adjusted EBITDAX $ 84 $ 2.12 Total capitalization $ 3,310 Total net capitalization 2,961 9