Overview

Rice Energy | 2007 - 2017

Sold to EQT for $8.2 Billion

Return Highlights

  • ~30x ROI for Rice’s initial investors

  • IPO investors earned a ~40% return and ~95% outperformance relative to Rice’s Appalachian peers (1)​​

  • Rice generated a 5x MOIC on its midstream investments

 

Rice Midstream Partners | 2010 - 2018

Sold to EQM for $2.4 Billion

Assets Assembled

Finance / Marketing

Significant Experience in Marketing, as well as the Public and Private Capital Markets

  • Secured 1.3 Bcfd of firm transportation capacity designed to match Rice production growth through period of depressed basis differentials

  • > 70% of firm transportation reached Gulf Coast markets providing minimal end-market basis risk and resulted in peer-leading all-in netback pricing

  • 2nd largest E&P hedge book in country fully integrated with firm transportation portfolio to protect cash flows during period of growth and cash flow outspend

Oilfield Services

Invested heavily into new oilfield technologies 

  • Significant experience in upstream and midstream service technologies

 

  • Deployed numerous digital and hardware products into development program

  • Developed multiple in-house solutions when no product existed  

Technology

Developed in-house digital platforms which connected every facet of business

  • Digitized all business processes

 

  • Real-time visibility of operations and company health through live dashboards

 

  • 500 Rice employees and 1000’s of contractors feeding the same network.  The bigger we were, the more connected we were

  • Largest department in Rice Energy was IT

Midstream

Gathered Volumes:  3 Bcfd 

  • Premier dry gas gathering and compression system in Southwest Appalachia

 

  • Gathered 3.0 Bcfd of gross volumes

 

  • 350 miles of pipeline

 

  • 100,000 horsepower of compression

 

  • 150 miles of water lines and daily delivery of 40 mm gal/day

 

  • Interconnects into 8 interstate pipelines

Upstream

Operated Production:  2.0 Bcfd gross / 1.5 Bcfd net

 

  • 250,000 Acres in the Marcellus and Utica​ cores

    • 160,000 acres via organic leasing

    • 90,000 acres via acquisition

    • 100% of acreage in the 3 core counties of SW Appalachia;  Washington, Greene, Belmont

    • Executed 2,500 mineral deals in final 12 months

  • Drilled > 400 horizontal wells

  • Scaled to 11 rig program with peer leading well results in each operating area

 

Timeline

Formative Years | 2007 - 2009

  • Seed Capital of $35 MM from Rice Family

  • Organic Leasing Campaign in Appalachia's Marcellus Shale

 

  • Employees:  3

  • Acreage:  5,000 acres

  • Production:  0 mmcfd

Delineation Years | 2010 - 2012

  • Drilled first horizontal well as company

  • Begin building first spur of midstream system

  • Private equity investment from Natural Gas Partners to ramp leasing

  • Employees:  10

  • Acreage:  30,000 acres

  • Production:  30 mmcfd

Expansion Years | 2013 - 2015

  • Entry into core of the Utica Shale in Belmont County, OH

  • Raised $600mm through Rice's IPO (NYSE: RICE) to fund aggressive leasing + development campaign

  • Raised $475mm through IPO of Rice's Marcellus midstream assets (NYSE:RMP)

  • Employees:  80

  • Acreage:  120,000 acres

  • Production:  500 mmcfd

Full Development Years | 2016 - 2017

  • Executed 11 rig program in the Marcellus + Utica

  • Annual Capex > $1bn

  • Digitized entire company processes using in-house technology

  • Initiated and executed mineral purchase campaign

  • Sold to EQT Corporation (NYSE:EQT) for $8.2 billion

  • Employees:  580

  • Acreage:  250,000 acres

  • Production:  2,000 mmcfd

(1)Peers include AR, CNX, COG, EQT, GPOR, and RRC. Performance period measured from 1/24/14 (RICE IPO) to 11/13/17 (closing of EQT/RICE acquisition)