CANONSBURG, Pa., Nov. 2, 2016 /PRNewswire/ -- Rice Energy
Inc. (NYSE: RICE) ("Rice Energy") today reported third quarter
2016 financial and operating results. Highlights to date
include:
- Third quarter net production increased 23% over the prior year
quarter to an average of 747 MMcfe/d, after taking into
account a decrease of approximately 27 MMcfe/d related to a prior
period adjustment
- Third quarter 2016 exit rate production of approximately 800
MMcfe/d
- Third quarter net income of $91
million, a 40% increase relative to the prior year
quarter
- Adjusted EBITDAX(1) of $133
million, a 13% increase over the prior year quarter
- Achieved record quarterly Rice Midstream Holdings LLC ("RMH")
gathering throughput of 812 MDth/d, a 155% increase over the prior
year quarter and 23% higher than second quarter 2016
- Completed acquisition of Vantage Energy for $2.7 billion in October
- Completed underwritten public offering of 46 million shares of
common stock in October, providing approximately $1.2 billion of net proceeds
- Increased credit facility borrowing base to $1 billion(2) from $875 million in October
- Exited the quarter with strong third quarter liquidity position
of $1.6 billion(3)(4) and
low leverage ratio of net debt to LTM Further Adjusted EBITDAX of
1.4x(3)(5)(6)
Commenting on the results, Daniel J.
Rice IV, Chief Executive Officer, said, "Our third quarter
results reflect continued execution of our returns-focused
strategy, as we further increased efficiencies and reduced
development costs, while protecting the balance sheet. We completed
our transformative acquisition of Vantage Energy, one that enhances
our premier portfolio of high-returning projects and extends RMP's
runway for future growth. Our extensive core acreage position is
underpinned by a balanced firm transportation portfolio and
systematic hedging strategy to support continued growth. We
continue to be well-positioned to benefit from an improving price
environment, which positions us for continued success in 2017."
1.
|
Please see
"Supplemental Non-GAAP Financial Measures" for a description of
Adjusted EBITDAX, Further Adjusted EBITDAX and a related
reconciliation of Adjusted EBITDAX to the comparable GAAP financial
measure.
|
2.
|
Vantage Energy assets
are not included in borrowing base redetermination.
|
3.
|
Pro forma for the
Vantage Energy acquisition, which closed on October 19, 2016, the
October borrowing base increase and the exercise of the
underwriters' option to purchase 6,000,000 additional shares in
connection with our September public offering of 40,000,000 shares
of common stock.
|
4.
|
Excludes Rice
Midstream Partners LP.
|
5.
|
Pro forma for the RMP
private placement of 20,930,233 common units, the borrowings under
the RMP credit facility used to fund the Vantage Energy midstream
assets acquisition, which closed on October 19, 2016, and the
October RMP revolving credit facility increase.
|
6.
|
Pro forma
leverage does not include Vantage Energy EBITDAX.
|
Third Quarter 2016
Consolidated Results
|
|
Three Months
Ended
September 30, 2016
|
|
Nine Months
Ended
September 30, 2016
|
|
|
|
|
|
Total production
(MMcfe/d)
|
|
747
|
|
|
726
|
|
% Gas
|
|
100
|
%
|
|
100
|
%
|
%
Operated
|
|
86
|
%
|
|
87
|
%
|
%
Marcellus
|
|
65
|
%
|
|
68
|
%
|
|
|
|
|
|
NYMEX Henry Hub price
($/MMBtu)
|
|
$
|
2.81
|
|
|
$
|
2.29
|
|
Average basis impact
($/MMBtu)
|
|
(0.45)
|
|
|
(0.26)
|
|
FT fuel and variables
($/MMBtu)
|
|
(0.13)
|
|
|
(0.13)
|
|
Btu uplift
(MMBtu/Mcf)
|
|
0.13
|
|
|
0.09
|
|
Pre-hedge realized
price ($/Mcf)
|
|
2.36
|
|
|
1.99
|
|
Realized hedging gain
($/Mcf)
|
|
0.51
|
|
|
0.84
|
|
Post-hedge realized
price ($/Mcf)
|
|
2.87
|
|
|
2.83
|
|
Capacity optimization
($/Mcf)
|
|
0.04
|
|
|
0.02
|
|
Adjusted realized
price ($/Mcf)
|
|
$
|
2.91
|
|
|
$
|
2.85
|
|
|
|
|
|
|
Operating revenues (in
thousands)
|
|
$
|
198,920
|
|
|
$
|
494,860
|
|
Realized gain on
derivative instruments (in thousands)
|
|
34,895
|
|
|
166,350
|
|
Total operating
revenues and realized gain on derivative instruments (in
thousands)
|
|
$
|
233,815
|
|
|
$
|
661,210
|
|
|
|
|
|
|
Average costs per
Mcfe:
|
|
|
|
|
Lease
operating(1)
|
|
$
|
0.17
|
|
|
$
|
0.16
|
|
Gathering,
compression and transportation
|
|
0.43
|
|
|
0.43
|
|
Production taxes and
impact fees
|
|
0.05
|
|
|
0.04
|
|
General and
administrative(1)
|
|
0.35
|
|
|
0.34
|
|
Depreciation,
depletion and amortization
|
|
1.21
|
|
|
1.24
|
|
|
|
|
|
|
Net income (loss) (in
thousands)
|
|
$
|
91,078
|
|
|
$
|
(44,326)
|
|
Adjusted EBITDAX (in
thousands)
|
|
$
|
133,396
|
|
|
$
|
373,519
|
|
|
|
|
|
|
RMH throughput
(MDth/d)
|
|
812
|
|
|
642
|
|
%
Third-party
|
|
61
|
%
|
|
63
|
%
|
|
1.
|
Excludes non-cash
equity compensation expense of $0.3 million and $5.6 million
attributable to lease operating and general and administrative
expenses, respectively, for the three months ended September 30,
2016, and $0.5 million and $16.4 million for the nine months ended
September 30, 2016, respectively.
|
Third Quarter 2016 Financial Results
For the three months ended September 30,
2016, average realized natural gas price, before the effect
of hedges, was $2.36 per Mcf.
After giving effect to hedges, our average natural gas price was
$2.87 per Mcf. Our average adjusted
realized price, including capacity optimization and the impact of
hedges, was $2.91 per Mcf.
Approximately 79% of our third quarter production received
favorable Gulf Coast, TCO or Midwest pricing. Our average
basis differential for the quarter was ($0.45) per MMBtu, while TETCO M2 and Dominion
South averaged ($1.35) and
($1.32) per MMBtu, respectively,
below NYMEX Henry Hub for the quarter.
Per unit cash production costs (lease operating; gathering,
compression and transportation; and production taxes and impact
fees) were $0.65 per Mcfe, a 4% decrease from the prior year
quarter. We reported net income of $91
million, a 40% increase over the prior year quarter.
Adjusted EBITDAX for the quarter was $133.4 million, a 13% increase over the prior
year quarter. We reported adjusted net income(1) of
$1 million, or $0.00 income per diluted share after excluding
unrealized gains on derivative contracts and other non-recurring
income and expense items.
We invested $161 million,
including $91 million to drill and
complete operated Marcellus and Ohio Utica wells and $15 million for non-operated Ohio Utica
development. In addition, we invested $32
million in leasehold activity and $23
million in our RMH midstream assets.
1.
|
Please see
"Supplemental Non-GAAP Financial Measures" for a description of
adjusted net income (loss) and a related reconciliation to net
income (loss), the comparable GAAP financial measure.
|
Year to Date 2016 Financial Results
For the nine months ended September 30,
2016, average realized natural gas price, before the effect
of hedges, was $1.99 per Mcf.
After giving effect to hedges, our average natural gas price was
$2.83 per Mcf. Our average adjusted
realized price, including capacity optimization and the impact of
hedges, was $2.85 per Mcf.
Per unit cash production costs were $0.63 per Mcfe, a 6%
decrease from the prior year period. We reported a net loss of
($44.3) million or ($0.30) per diluted share. Year to date Adjusted
EBITDAX was $373.5 million, a
24% increase over the prior year. We reported adjusted net loss of
($53.6) million, or ($0.36) per diluted share.
We invested $556 million,
including $347 million to drill and
complete operated Marcellus and Ohio Utica wells and $60 million for non-operated Ohio Utica
development. In addition, we invested $77
million in leasehold activity and $72
million in our RMH midstream assets.
Acquisition of Vantage Energy
On October 19, 2016, we completed
the previously announced acquisition of Vantage Energy,
LLC and Vantage Energy II, LLC for
approximately $2.7 billion, including the assumption of debt.
In connection with the acquisition, Rice Midstream Partners
LP (NYSE: RMP) ("RMP" or the "Partnership") purchased the
acquired midstream assets from Rice Energy for $600
million.
The acquisition includes upstream assets consisting of
approximately 85,000 net core Marcellus
acres(1) in Greene County, Pennsylvania, with rights to the
deeper Utica Shale on approximately 52,000 net acres and
37,000 net acres in the Barnett Shale. Second quarter 2016 net
production of the acquired assets was 399 MMcfe/d (approximately
65% Appalachia, 35% Barnett). The
midstream assets include 30 miles of dry gas gathering and
compression assets. As part of the transaction, Rice Energy
dedicated the acquired Pennsylvania acreage to RMP to
provide gas gathering, compression and water services. Aggregate
consideration paid at closing was approximately $2.7 billion, which consisted of approximately
$1 billion cash, the assumption and
retirement of approximately $700
million of debt and the issuance of units in Rice Energy
Operating LLC, a subsidiary of Rice Energy, that are immediately
exchangeable into 40 million shares of Rice Energy common stock,
valued at $1 billion.
1.
|
Includes
approximately 5,000 net royalty acres, the majority of which are
leased to Rice Energy.
|
Financial Position and Liquidity
In October 2016, we completed an
underwritten public offering of 46 million shares of our common
stock priced at $25.50 per share for
$1.2 billion net proceeds. Net
proceeds were used to fund a portion of the Vantage Energy
acquisition and for general corporate purposes.
On October 19, 2016, our upstream
revolving credit facility was amended and restated to, among other
things, increase our borrowing base to $1
billion, representing a 14% increase from $875 million.
In October 2016, S&P Global
Ratings upgraded our corporate credit rating to 'B+' from 'B' by
S&P Global Ratings. Our issue-level rating on our existing
$1.3 billion senior unsecured notes
was increased to 'BB-' from 'B-'. Similarly, Moody's upgraded our
Corporate Family Rating (CFR) to 'B1' from 'B2' and the senior
unsecured notes rating was confirmed at 'B3'.
As of September 30, 2016, our
liquidity position, excluding RMP, after giving pro forma effect to
the closing of the Vantage Acquisition, was $1.6 billion(1)(2), consisting of
$1.3 billion of upstream liquidity
and $293 million of RMH liquidity.
After giving effect to the closing of the Vantage Acquisition but
without including any contribution of Vantage Energy to our Further
Adjusted EBITDAX, our consolidated net debt to LTM Further Adjusted
EBITDAX ratio was 1.4x as of September 30,
2016.
1.
|
Pro forma for the
Vantage Energy acquisition, which closed on October 19, 2016, the
October borrowing base increase and the exercise of the
underwriters' option to purchase 6,000,000 additional shares in
connection with our September public offering of 40,000,000 shares
of common stock.
|
2.
|
Excludes Rice
Midstream Partners LP.
|
Third Quarter 2016 Operating Results
Third quarter net production increased 23% over the prior year
quarter to 68.7 Bcfe, or an average of 747 MMcfe/d, after taking
into account a decrease of approximately 27 MMcfe/d related to a
prior period adjustment. This adjustment relates to a reduction in
our working interest and net revenue interest across various Ohio
Utica drilling units, as a result of our electing to not
participate in certain acreage cross-conveyances. Third quarter
2016 exit rate production was approximately 800 MMcfe/d.
As of September 30, 2016, our core
leasehold position was approximately 235,000 acres(1),
consisting of approximately 176,000 net Marcellus acres in
Washington and Greene Counties, Pennsylvania and 59,000 net Ohio Utica acres
primarily in Belmont County, Ohio.
In addition, we hold approximately 101,000 net Utica acres across our Pennsylvania leasehold position.
Marcellus Shale
During the third quarter, we drilled 10 net and completed 10 net
Marcellus wells for an average cost of $720 per lateral foot. As planned, we did not
turn to sales any wells during the quarter.
As of September 30, 2016, we have
turned to sales 18 gross (18 net) Marcellus wells during the
year.
Utica Shale
During the third quarter, we turned to sales 11 gross (7 net)
operated horizontal Utica wells
with an average lateral length of approximately 9,400 feet and
participated in 12 gross (5 net) non-operated Utica wells turned to sales. In addition, we
drilled 2 net and completed 2 net Utica wells during the third quarter for an
average cost of $1,100 per lateral
foot.
As of September 30, 2016, we have
turned to sales 20 gross (13 net) operated and 14 net non-operated
Utica producing wells during the
year.
Our second horizontal Ohio Utica rig commenced drilling activity
in October, and we expect to spud an additional two net operated
Utica wells this year.
1.
|
Pro forma for the
Vantage Energy acquisition, which closed on October 19,
2016.
|
Rice Midstream Holdings LLC
For the three months ended September 30,
2016, gathering volumes averaged 812 MDth/d, a 155% increase
over the prior year quarter and a 23% increase relative to second
quarter 2016, with 61% attributable to third-party
volumes. Compression volumes were 483 MDth/d, a 5% increase
relative to second quarter 2016, with 66% attributable to
third-party volumes. Gathering and compression revenues totaled
$19 million. Operation and
maintenance expense totaled $1
million, and operating income was $10.9 million.
For the nine months ended September 30,
2016, gathering volumes averaged 642 MDth/d, a 190% increase
over the prior year period, with 63% attributable to third-party
volumes. Compression volumes were 436 MDth/d, with 64% attributable
to third-party volumes. Gathering and compression revenues totaled
$41.5 million. Operation and
maintenance expense totaled $2.4
million, and operating income was $18.1 million.
As of September 30, 2016, RMH had
$266 million of availability on its
revolving credit facility and $27
million of cash on hand, resulting in $293 million of total liquidity.
2016 Rice Energy and RMH Capital Budget and Guidance
Update
We updated our 2016 capital budget and net production guidance
for the Vantage Energy acquisition, which closed on October 19, 2016. Our revised 2016 estimated
E&P capital budget, excluding acquisitions, is $735 million, including $600 million for drilling and completion and
$135 million for land capital
investments. Our Marcellus drilling and completion activity
increased by $40 million to
$270 million to reflect ongoing
activity across the acquired acreage. Our land capital budget
increased by $35 million to
$135 million as a result of
anticipated organic leasing and leasehold costs associated with the
acquired Vantage Energy acreage. Furthermore, we increased our 2016
annual net production guidance range to 780 - 800 MMcfe/d,
primarily for the closing of the Vantage Energy acquisition.
2016 Capital
Budget ($ in millions)
|
E&P
|
|
|
Operated
Marcellus
|
$
|
270
|
|
Operated Ohio
Utica
|
$
|
240
|
|
Non-Operated Ohio
Utica
|
$
|
90
|
|
Total Drilling
& Completion
|
$
|
600
|
|
Land(1)
|
$
|
135
|
|
Total
E&P
|
$
|
735
|
|
|
|
|
Rice Midstream
Holdings LLC
|
$
|
140
|
|
|
|
1.
|
Excluding
acquisitions.
|
Our updated 2016 guidance is presented in the table below:
Net
Wells
|
Spud
|
|
Online
|
Operated
Marcellus
|
44
|
|
34
|
Operated Ohio
Utica
|
22
|
|
13
|
Non-operated Ohio
Utica
|
7
|
|
14
|
Total Net
Wells
|
73
|
|
61
|
|
|
Lateral Length
(ft.) of Wells Turned Online
|
|
Operated
Marcellus
|
7,100
|
Operated Ohio
Utica
|
9,300
|
Non-operated Ohio
Utica
|
8,200
|
|
|
Total Net
Production (MMcfe/d)
|
780 - 800
|
% Natural gas
|
100%
|
% Operated
|
90%
|
% Marcellus
|
70%
|
|
|
Pricing:
|
|
FT Fuel &
Variable (Deduction) ($/Mcfe)
|
$
(0.13) - $ (0.15)
|
Heat Content
(Btu/Scf)
|
|
Marcellus
|
1050
|
Utica
|
1080
|
|
|
Cash Operating
Costs ($/Mcfe)
|
|
|
|
|
|
Lease Operating
Expense
|
|
|
|
$
|
0.16
|
-
|
$
|
0.18
|
|
|
Gathering and
Compression
|
|
|
|
$
|
0.43
|
-
|
$
|
0.47
|
|
|
Firm
Transportation
|
|
|
|
$
|
0.34
|
-
|
$
|
0.36
|
|
|
Production Taxes and
Impact Fees
|
|
|
|
$
|
0.03
|
-
|
$
|
0.05
|
|
Total Cash
Operating Costs
|
|
|
|
$
|
0.96
|
-
|
$
|
1.06
|
|
|
|
|
|
|
Cash
G&A ($ in millions)
|
|
|
|
E&P
|
|
|
|
$
|
70
|
-
|
$
|
75
|
|
|
RMH
|
|
|
|
$
|
10
|
-
|
$
|
15
|
|
Total Cash
G&A
|
|
|
|
$
|
80
|
-
|
$
|
90
|
|
We are unable to provide a projection of full-year 2016 RMH net
income, the most comparable financial measure to RMH Adjusted
EBITDA, calculated in accordance with GAAP. We are unable to
project RMH net income because this metric includes the impact of
certain non-cash items such as depreciation expense that we are
unable to project with any reasonable degree of accuracy without
unreasonable effort. Please see the "Supplemental Non-GAAP
Financial Measures" section of this news release.
Our RMH capital budget decreased to $140
million due to scheduled projects shifting from 2016 to 2017
and reduced pipeline buildout costs. Our RMH Adjusted EBITDA is
unchanged, and we expect it to be within a range of $40 - $45 million for 2016.
Preliminary Rice Energy 2017 Outlook
In connection with the Vantage Energy acquisition, we provided a
preliminary 2017 outlook for our capital budget and net production.
We expect our drilling and completion budget to be within a range
of $950 - $1,125 million.
Furthermore, we expect 2017 net production to be within a range of
1,280 - 1,355 MMcfe/d, an approximate 67% increase over 2016
estimated net production, based on the mid-point of guidance.
Rice Midstream Partners LP
For the three months ended September 30,
2016, gathering volumes averaged 957 MDth/d, a 43% increase
over the prior year quarter and a 2% increase relative to second
quarter 2016, with 32% attributable to third-party volumes.
Compression volumes were 745 MDth/d, a 1,810% increase over the
prior year quarter and a 32% increase relative to second quarter
2016, with 42% attributable to third-party volumes. Fresh water
delivery volumes were 135 million gallons or an average of 1.5
MMgal/d, a 41% decrease over the prior year quarter and a 60%
decrease relative to second quarter 2016. The anticipated
sequential quarter decrease was due to timing of well completion
activity by Rice Energy in the quarter.
For the nine months ended September 30,
2016, gathering volumes averaged 909 MDth/d, a 45% increase
over the prior year period, with 29% attributable to third-party
volumes. Compression volumes were 488 MDth/d, an 821% increase over
the prior year period, with 47% attributable to third-party
volumes. Fresh water delivery volumes were 932 million gallons or
an average of 3.4 MMgal/d, a 62% increase over the prior year
period, with 14% attributable to third-party volumes.
RMP controls one of the largest and most concentrated core
dry gas acreage dedications in the Marcellus Shale, covering
approximately 201,000 acres(1)
in Washington and Greene Counties.
Financial Position and Liquidity
The Partnership priced a private placement of 20,930,233 common
units for gross proceeds of approximately $450 million on September
30, 2016, and subsequently closed the transaction on
October 7, 2016. RMP used the net
proceeds from the private placement to fund a portion of the
acquisition from Rice Energy of midstream assets associated with
the Vantage Energy acquisition.
On October 19, 2016, RMP's credit
facility was increased to $850
million, representing an 89% increase from $450 million.
As of September 30, 2016, RMP had
$685 million(2) of
availability on its revolving credit facility and $2 million of cash on hand, resulting in
$687 million(2) of total
liquidity.
On October 20, 2016, RMP declared
a quarterly distribution of $0.2370
per unit for the third quarter 2016, an increase of $0.0135 per unit, or 6%, relative to second
quarter 2016, which places RMP in the second tier of the IDR
splits. The distribution will be payable on November 10, 2016 to unitholders of record as of
November 1, 2016.
RMP's third quarter results were released today and are
available at www.ricemidstream.com.
1.
|
Pro forma for the
Vantage Energy midstream assets acquisition, which closed on
October 19, 2016.
|
2.
|
Pro forma for the RMP
private placement of 20,930,233 common units, the borrowings under
the RMP credit facility used to fund the Vantage Energy midstream
assets acquisition, which closed on October 19, 2016, and the
October RMP revolving credit facility increase.
|
Commodity Hedge Position
As depicted in the table below, following the Vantage Energy
acquisition, for 2017 we have 1,136 BBtu/d hedged at a total
weighted average floor price of $3.15
per MMBtu, representing approximately 82% of expected production
(based on the midpoint of guidance). Please see the "Derivatives
Information" table at the end of this press release for more
detailed information about our derivatives positions.
Fixed Price
Derivatives
|
4Q16
|
2017
|
2018
|
2019
|
2020
|
NYMEX Volume Hedged
Excl. Calls (BBtu/d)
|
742
|
871
|
957
|
480
|
298
|
NYMEX Wtd Avg. Fixed
Floor Price ($/MMBtu)
|
$3.28
|
$3.15
|
$3.02
|
$2.96
|
$2.98
|
Total Volume Hedged
Excl. Calls (BBtu/d)
|
975
|
1,136
|
1,230
|
577
|
298
|
Total Wtd Avg. Fixed
Floor Price ($/MMBtu)
|
$3.09
|
$2.97
|
$2.86
|
$2.87
|
$2.98
|
Conference Call
Rice Energy will host a conference call on November 3, 2016 at 10:00
a.m. Eastern time (9:00 a.m. Central
time) to discuss third quarter 2016 financial and operating
results. To listen to a live audio webcast of the conference call,
please visit Rice Energy's website at www.riceenergy.com. A replay
of the conference call will be available for two weeks and can also
be accessed from our homepage.
Please visit www.riceenergy.com to view a presentation
containing supplemental third quarter 2016 information.
About Rice Energy
Rice Energy Inc. is an independent natural gas and oil company
engaged in the acquisition, exploration and development of natural
gas and oil properties in the Appalachian Basin. For more
information, please visit our website at www.riceenergy.com.
Forward Looking Statements
This release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended
(the "Securities Act"), and Section 21E of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"). Such forward-looking
statements are subject to a number of risks and uncertainties, many
of which are beyond our control. All statements, other than
historical facts included or incorporate herein that address
activities, events or developments that we expect or anticipate
will or may occur in the future, including such things as future
capital expenditures (including the amount and nature thereof),
projected operational results, production growth, basis exposure,
hedging, the timing and number of well completions, forecasted
gathering volumes, revenues, adjusted EBITDAX, distribution growth,
distributable cash flow, the timing of completion and nature of
midstream projects, business strategy and measures to implement
strategy, competitive strengths, goals, expansion and growth of our
business and operations, plans, market conditions, references to
future success, references to intentions as to future matters and
other such matters are forward-looking statements. All
forward-looking statements speak only as of the date of this
release. Although we believe that the plans, intentions and
expectations reflected in or suggested by the forward-looking
statements are reasonable, there is no assurance that these plans,
intentions or expectations will be achieved. Therefore, actual
outcomes and results could materially differ from what is
expressed, implied or forecast in such statements.
We caution you that these forward-looking statements are subject
to risks and uncertainties, most of which are difficult to predict
and many of which are beyond our control, incident to the
exploration for and development, production, gathering and sale of
natural gas, NGLs 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 related to
joint venture operations, the ultimate timing, outcome and results
of integrating the operations of Vantage Energy; the effects of the
business combination of Rice Energy and Vantage Energy, including
the combined company's future financial condition, results of
operations, strategy and plans; potential adverse reactions or
changes to business relationships resulting from fully combining
the businesses; and the ability of Rice Energy and RMP to recognize
the expected benefits and synergies of the transactions.
Information concerning these and other factors can be found in our
filings with the Securities and Exchange Commission, including our
Forms 10-K, 10-Q and 8-K. Consequently, all of the forward-looking
statements made in this news release are qualified by these
cautionary statements and there can be no assurances that the
actual results or developments anticipated by us will be realized,
or even if realized, that they will have the expected consequences
to or effects on us, our business or operations. We have no
intention, and disclaim any obligation, to update or revise any
forward-looking statements, whether as a result of new information,
future results or otherwise.
Rice Energy
Inc.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
Three Months
Ended
September 30, 2016
|
|
Nine Months
Ended
September 30, 2016
|
(in thousands,
except share data)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
revenues:
|
|
|
|
|
|
|
|
Natural gas, oil and
natural gas liquids sales
|
$
|
162,354
|
|
|
$
|
130,145
|
|
|
$
|
397,108
|
|
|
$
|
327,947
|
|
Gathering,
compression and water distribution
|
25,176
|
|
|
13,388
|
|
|
73,456
|
|
|
34,755
|
|
Other
revenue
|
11,390
|
|
|
88
|
|
|
24,296
|
|
|
3,353
|
|
Total operating
revenues
|
198,920
|
|
|
143,621
|
|
|
494,860
|
|
|
366,055
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Lease
operating
|
11,668
|
|
|
12,325
|
|
|
31,557
|
|
|
35,006
|
|
Gathering,
compression and transportation
|
29,597
|
|
|
24,248
|
|
|
84,898
|
|
|
55,510
|
|
Production taxes and
impact fees
|
3,695
|
|
|
1,955
|
|
|
8,005
|
|
|
5,103
|
|
Exploration
|
3,396
|
|
|
830
|
|
|
9,934
|
|
|
1,925
|
|
Midstream operation
and maintenance
|
4,080
|
|
|
4,831
|
|
|
18,225
|
|
|
10,963
|
|
Incentive unit
expense (income)
|
5,920
|
|
|
(686)
|
|
|
44,902
|
|
|
45,870
|
|
Acquisition
expense
|
614
|
|
|
—
|
|
|
1,171
|
|
|
—
|
|
Stock compensation
expense
|
5,953
|
|
|
4,214
|
|
|
16,994
|
|
|
11,681
|
|
Impairment of fixed
assets
|
—
|
|
|
—
|
|
|
2,595
|
|
|
—
|
|
General and
administrative
|
24,365
|
|
|
24,113
|
|
|
67,721
|
|
|
62,028
|
|
Depreciation,
depletion and amortization
|
83,195
|
|
|
89,275
|
|
|
247,132
|
|
|
227,996
|
|
Amortization of
intangible assets
|
411
|
|
|
408
|
|
|
1,222
|
|
|
1,224
|
|
Other expense
(income)
|
10,153
|
|
|
(265)
|
|
|
25,800
|
|
|
3,624
|
|
Total operating
expenses
|
183,047
|
|
|
161,248
|
|
|
560,156
|
|
|
460,930
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
15,873
|
|
|
(17,627)
|
|
|
(65,296)
|
|
|
(94,875)
|
|
Interest
expense
|
(24,421)
|
|
|
(23,949)
|
|
|
(73,744)
|
|
|
(63,437)
|
|
Other (loss)
income
|
(1,900)
|
|
|
698
|
|
|
862
|
|
|
1,894
|
|
Gain on derivative
instruments
|
183,915
|
|
|
127,072
|
|
|
52,539
|
|
|
184,729
|
|
Amortization of
deferred financing costs
|
(1,247)
|
|
|
(1,313)
|
|
|
(4,416)
|
|
|
(3,722)
|
|
Income (loss) before
income taxes
|
172,220
|
|
|
84,881
|
|
|
(90,055)
|
|
|
24,589
|
|
Income tax (expense)
benefit
|
(81,142)
|
|
|
(19,797)
|
|
|
45,729
|
|
|
(18,335)
|
|
Net income
|
91,078
|
|
|
65,084
|
|
|
(44,326)
|
|
|
6,254
|
|
Less: Net income
attributable to noncontrolling interests
|
(16,665)
|
|
|
(6,134)
|
|
|
(55,535)
|
|
|
(16,833)
|
|
Net income (loss)
attributable to Rice Energy Inc.
|
74,413
|
|
|
58,950
|
|
|
(99,861)
|
|
|
(10,579)
|
|
Less: Preferred
dividends and accretion of redeemable noncontrolling
interests
|
(8,581)
|
|
|
—
|
|
|
(19,983)
|
|
|
—
|
|
Net income (loss)
attributable to Rice Energy Inc. common stockholders
|
$
|
65,832
|
|
|
$
|
58,950
|
|
|
$
|
(119,844)
|
|
|
$
|
(10,579)
|
|
Weighted average
number of shares of common stock—basic
|
157,021,239
|
|
|
136,381,909
|
|
|
148,911,387
|
|
|
136,330,198
|
|
Weighted average
number of shares of common stock—diluted
|
159,111,560
|
|
|
136,521,828
|
|
|
148,911,387
|
|
|
136,330,198
|
|
Income (loss) per
share—basic
|
$
|
0.42
|
|
|
$
|
0.43
|
|
|
$
|
(0.80)
|
|
|
$
|
(0.08)
|
|
Income (loss) per
share—diluted
|
$
|
0.41
|
|
|
$
|
0.43
|
|
|
$
|
(0.80)
|
|
|
$
|
(0.08)
|
|
Rice Energy
Inc.
|
Segment Results of
Operations
|
(Unaudited)
|
|
Exploration and
Production Segment
|
|
|
|
Three Months
Ended
September 30, 2016
|
|
Nine Months
Ended
September 30, 2016
|
(in thousands,
except volumes)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Operating
volumes:
|
|
|
|
|
|
|
|
|
Natural gas
production (MMcf)
|
|
68,524
|
|
|
55,806
|
|
|
198,269
|
|
|
142,454
|
|
Oil and NGL
production (MBbls)
|
|
35
|
|
|
37
|
|
|
132
|
|
|
216
|
|
Total production
(MMcfe)
|
|
68,733
|
|
|
56,031
|
|
|
199,058
|
|
|
143,752
|
|
|
|
|
|
|
|
|
|
|
Operating
results:
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
Natural gas, oil and
NGL sales
|
|
$
|
162,695
|
|
|
$
|
130,145
|
|
|
$
|
397,449
|
|
|
$
|
327,947
|
|
Other
revenue
|
|
11,390
|
|
|
88
|
|
|
24,296
|
|
|
3,353
|
|
Total operating
revenues
|
|
174,085
|
|
|
130,233
|
|
|
421,745
|
|
|
331,300
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
11,668
|
|
|
12,325
|
|
|
31,557
|
|
|
35,006
|
|
Gathering,
compression and transportation
|
|
56,957
|
|
|
41,654
|
|
|
156,467
|
|
|
102,021
|
|
Production taxes and
impact fees
|
|
3,695
|
|
|
1,955
|
|
|
8,005
|
|
|
5,103
|
|
Exploration
|
|
3,396
|
|
|
830
|
|
|
9,934
|
|
|
1,925
|
|
Incentive unit
expense (income)
|
|
5,751
|
|
|
(453)
|
|
|
42,763
|
|
|
43,930
|
|
Acquisition
costs
|
|
614
|
|
|
—
|
|
|
614
|
|
|
—
|
|
Impairment of fixed
assets
|
|
—
|
|
|
—
|
|
|
2,595
|
|
|
—
|
|
Stock compensation
expense
|
|
4,053
|
|
|
2,657
|
|
|
10,035
|
|
|
7,889
|
|
General and
administrative
|
|
15,934
|
|
|
18,592
|
|
|
45,027
|
|
|
48,007
|
|
Depreciation,
depletion and amortization
|
|
79,736
|
|
|
84,408
|
|
|
234,207
|
|
|
216,665
|
|
Other expense
(income)
|
|
10,063
|
|
|
(71)
|
|
|
25,561
|
|
|
2,979
|
|
Total operating
expenses
|
|
191,867
|
|
|
161,897
|
|
|
566,765
|
|
|
463,525
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
$
|
(17,782)
|
|
|
$
|
(31,664)
|
|
|
$
|
(145,020)
|
|
|
$
|
(132,225)
|
|
|
|
|
|
|
|
|
|
|
Average costs per
Mcfe:
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
$
|
0.17
|
|
|
$
|
0.22
|
|
|
$
|
0.16
|
|
|
$
|
0.24
|
|
Gathering and
compression
|
|
0.44
|
|
|
0.39
|
|
|
0.42
|
|
|
0.37
|
|
Transportation
|
|
0.39
|
|
|
0.36
|
|
|
0.37
|
|
|
0.34
|
|
Production taxes and
impact fees
|
|
0.05
|
|
|
0.03
|
|
|
0.04
|
|
|
0.04
|
|
Exploration
|
|
0.05
|
|
|
0.01
|
|
|
0.05
|
|
|
0.01
|
|
Incentive unit
expense
|
|
0.08
|
|
|
(0.01)
|
|
|
0.21
|
|
|
0.31
|
|
Stock
compensation
|
|
0.06
|
|
|
0.05
|
|
|
0.05
|
|
|
0.05
|
|
General and
administrative
|
|
0.23
|
|
|
0.33
|
|
|
0.23
|
|
|
0.33
|
|
Depreciation,
depletion and amortization
|
|
1.16
|
|
|
1.51
|
|
|
1.18
|
|
|
1.51
|
|
|
|
Rice Midstream
Holdings Segment
|
|
|
Three Months
Ended
September 30, 2016
|
|
Nine Months
Ended
September 30, 2016
|
(in thousands,
except volumes)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Operating
volumes:
|
|
|
|
|
|
|
|
|
Gathering volumes
(MDth/d):
|
|
812
|
|
|
319
|
|
|
642
|
|
|
221
|
|
Compression volumes
(MDth/d):
|
|
483
|
|
|
—
|
|
|
436
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Operating
results:
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
Gathering
revenues
|
|
$
|
16,189
|
|
|
$
|
8,691
|
|
|
$
|
33,969
|
|
|
$
|
17,879
|
|
Compression
revenues
|
|
2,796
|
|
|
—
|
|
|
7,540
|
|
|
—
|
|
Total operating
revenues
|
|
18,985
|
|
|
8,691
|
|
|
41,509
|
|
|
17,879
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Midstream operation
and maintenance
|
|
960
|
|
|
410
|
|
|
2,418
|
|
|
935
|
|
Incentive unit
expense
|
|
169
|
|
|
(158)
|
|
|
2,139
|
|
|
892
|
|
Acquisition
expense
|
|
—
|
|
|
—
|
|
|
484
|
|
|
—
|
|
Stock compensation
expense
|
|
1,291
|
|
|
452
|
|
|
4,231
|
|
|
476
|
|
General and
administrative
|
|
4,058
|
|
|
1,384
|
|
|
9,958
|
|
|
3,699
|
|
Depreciation,
depletion and amortization
|
|
1,577
|
|
|
928
|
|
|
4,222
|
|
|
1,887
|
|
Other
expense
|
|
—
|
|
|
153
|
|
|
—
|
|
|
153
|
|
Total operating
expenses
|
|
8,055
|
|
|
3,169
|
|
|
23,452
|
|
|
8,042
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
10,930
|
|
|
$
|
5,522
|
|
|
$
|
18,057
|
|
|
$
|
9,837
|
|
|
|
Rice Midstream
Partners Segment
|
|
|
Three Months
Ended
September 30, 2016
|
|
Nine Months
Ended
September 30, 2016
|
(in thousands,
except volumes)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Operating
volumes:
|
|
|
|
|
|
|
|
|
Gathering volumes
(MDth/d):
|
|
957
|
|
|
671
|
|
|
909
|
|
|
629
|
|
Compression volumes
(MDth/d):
|
|
745
|
|
|
39
|
|
|
488
|
|
|
54
|
|
Water services
volumes (MMgal):
|
|
135
|
|
|
227
|
|
|
932
|
|
|
575
|
|
|
|
|
|
|
|
|
|
|
Operating
results:
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
Gathering
revenues
|
|
$
|
28,473
|
|
|
$
|
19,722
|
|
|
$
|
80,408
|
|
|
$
|
54,445
|
|
Compression
revenues
|
|
5,030
|
|
|
420
|
|
|
9,931
|
|
|
1,594
|
|
Water services
revenues
|
|
7,564
|
|
|
9,933
|
|
|
51,818
|
|
|
29,107
|
|
Total operating
revenues
|
|
41,067
|
|
|
30,075
|
|
|
142,157
|
|
|
85,146
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Midstream operation
and maintenance
|
|
4,559
|
|
|
4,421
|
|
|
17,292
|
|
|
10,028
|
|
Incentive unit
expense
|
|
—
|
|
|
(75)
|
|
|
—
|
|
|
1,048
|
|
Acquisition
expense
|
|
—
|
|
|
—
|
|
|
73
|
|
|
—
|
|
Stock compensation
expense
|
|
609
|
|
|
1,105
|
|
|
2,728
|
|
|
3,316
|
|
General and
administrative
|
|
4,373
|
|
|
4,137
|
|
|
12,736
|
|
|
10,322
|
|
Depreciation,
depletion and amortization
|
|
5,489
|
|
|
4,417
|
|
|
17,714
|
|
|
10,454
|
|
Amortization of
intangible assets
|
|
411
|
|
|
407
|
|
|
1,222
|
|
|
1,223
|
|
Other
expense
|
|
90
|
|
|
(347)
|
|
|
239
|
|
|
492
|
|
Total operating
expenses
|
|
15,531
|
|
|
14,065
|
|
|
52,004
|
|
|
36,883
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
25,536
|
|
|
$
|
16,010
|
|
|
$
|
90,153
|
|
|
$
|
48,263
|
|
Rice Energy Inc.
Supplemental
Non-GAAP Financial Measures
(Unaudited)
Adjusted EBITDAX and Further Adjusted EBITDAX are supplemental
non-GAAP financial measures that are 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. We define Further Adjusted EBIDAX as Adjusted
EBIDAX after non-controlling interest and water revenue adjustment.
Neither Adjusted EBITDAX nor Further Adjusted EBITDAX is a measure
of net income as determined by United
States generally accepted accounting principles, or
GAAP.
Management believes Adjusted EBITDAX is a useful measure to the
users of our financial statements because it allows them to more
effectively evaluate our operating performance and compare the
results of our operations from period to period and against our
peers without regard to our financing methods or capital structure.
We exclude the items listed above from net income (loss) in
arriving at Adjusted EBITDAX because these amounts can vary
substantially from company to company within our industry depending
upon accounting methods and book values of assets, capital
structures and the method by which the assets were acquired.
Management believes Further Adjusted EBITDAX is useful because it
allows them to assess the level of consolidated leverage of the
company and compare this level to peers. The adjustments made
to Adjusted EBITDAX to calculate Further Adjusted EBITDAX address
the intercompany eliminations of items impacting Adjusted EBITDAX
as a result of the consolidation of RMP, the outstanding
indebtedness of which is consolidated with that of the company
without regard to non-controlling interest. These adjustments
include the addition of non-controlling interest as well as a water
revenue adjustment attributable to charges for fresh water delivery
services and produced water hauling services provided by RMP to the
company, a charge that generates revenue for RMP but does not have
a corresponding expense at the company level, as such costs are
capitalized.
Adjusted EBITDAX and Further Adjusted EBITDAX should not be
considered as alternatives to, or more meaningful than, net income
as determined in accordance with GAAP or as indicators of our
operating performance or liquidity. Certain items excluded from
Adjusted EBITDAX and Further Adjusted EBITDAX are significant
components in understanding and assessing a company's financial
performance, such as a company's cost of capital and tax structure,
as well as the historic costs of depreciable assets, none of which
are components of Adjusted EBITDAX or Further Adjusted EBITDAX. Our
computations of Adjusted EBITDAX and Further Adjusted EBITDAX may
not be comparable to other similarly titled measures of other
companies. We believe that these measures are widely followed
measures of operating performance used by investors.
We have not provided projected RMH net income or a
reconciliation of projected RMH Adjusted EBITDA to projected RMH
net income, the most comparable financial measure calculated in
accordance with GAAP. We are unable to project RMH net income
because this metric includes the impact of certain non-cash items
such as depreciation expense that we are unable to project with any
reasonable degree of accuracy without unreasonable effort.
Therefore, we are unable to provide projected RMH net income, or
the related reconciliation of projected RMH Adjusted EBITDA to
projected net income.
The following table presents a reconciliation of the non-GAAP
financial measure of Adjusted EBITDAX to the GAAP financial measure
of net income (loss).
(in
thousands)
|
Three Months
Ended
September 30, 2016
|
|
Nine Months
Ended
September 30, 2016
|
|
Twelve Months
Ended
September 30, 2016
|
Adjusted EBITDAX
reconciliation to net income (loss):
|
|
|
|
|
|
Net Income
(loss)
|
$
|
91,078
|
|
|
$
|
(44,326)
|
|
|
$
|
(318,579)
|
|
Interest
expense
|
24,421
|
|
|
73,744
|
|
|
97,753
|
|
Depreciation,
depletion and amortization
|
83,195
|
|
|
247,132
|
|
|
341,920
|
|
Amortization of
deferred financing costs
|
1,247
|
|
|
4,416
|
|
|
5,818
|
|
Amortization of
intangible assets
|
411
|
|
|
1,222
|
|
|
1,630
|
|
Acquisition
expense
|
614
|
|
|
1,171
|
|
|
2,406
|
|
Impairment of fixed
assets
|
—
|
|
|
2,595
|
|
|
20,845
|
|
Impairment of
goodwill
|
—
|
|
|
—
|
|
|
294,908
|
|
Gain on derivative
instruments (1)
|
(183,915)
|
|
|
(52,539)
|
|
|
(141,558)
|
|
Net cash receipts on
settled derivative instruments (1)
|
34,895
|
|
|
166,350
|
|
|
242,578
|
|
Non-cash stock
compensation expense
|
5,953
|
|
|
16,994
|
|
|
21,841
|
|
Non-cash incentive
unit expense
|
5,920
|
|
|
44,902
|
|
|
35,129
|
|
Income tax expense
(benefit)
|
81,142
|
|
|
(45,729)
|
|
|
(51,946)
|
|
Gain from sale of
interest in gas properties
|
—
|
|
|
—
|
|
|
(953)
|
|
Exploration
expense
|
3,396
|
|
|
9,934
|
|
|
11,146
|
|
Acquisition break-up
fee
|
—
|
|
|
(1,939)
|
|
|
(1,939)
|
|
Other
expense
|
1,704
|
|
|
5,127
|
|
|
5,883
|
|
Non-controlling
interest
|
(16,665)
|
|
|
(55,535)
|
|
|
(62,039)
|
|
Adjusted
EBITDAX(2)
|
$
|
133,396
|
|
|
$
|
373,519
|
|
|
$
|
504,843
|
|
|
|
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.
|
Excluded from the
above Adjusted EBITDAX reconciliation is the impact of
non-controlling interest and the elimination of intercompany water
revenues between Rice Energy subsidiaries and Rice Midstream
Partners of $16.7 million and $7.5 million for the three months
ended September 30, 2016, respectively, and $55.5 million and $38.6
million for the nine months ended September 30, 2016, respectively.
When including these impacts, our Further Adjusted EBITDAX is
$157.6 million for the three months ended September 30, 2016, and
our consolidated net debt to LTM Further Adjusted EBITDAX ratio is
1.4x.
|
Rice Energy Inc.
Supplemental
Non-GAAP Financial Measure
(Unaudited)
Adjusted net income (loss) 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 net
income (loss) as net income (loss) before derivative fair value
(gain) loss, excluding net cash receipts on settled derivative
instruments incentive unit expense and other non-recurring items.
Adjusted net income (loss) is not a measure of net income as
determined by United States
generally accepted accounting principles, or GAAP.
We believe that many investors use adjusted net income (loss) in
making investment decisions and in evaluating our operational
trends and our performance relative to other oil and gas producing
companies.
The following table presents a reconciliation of the non-GAAP
financial measure of adjusted net income (loss) to the GAAP
financial measure of net income (loss).
(in
thousands)
|
Three Months
Ended
September 30, 2016
|
|
Nine Months
Ended
September 30, 2016
|
Reconciliation to
net income (loss) attributable to Rice Energy Inc:
|
|
|
|
Net income (loss)
attributable to Rice Energy Inc.
|
$
|
74,413
|
|
|
$
|
(99,861)
|
|
Impairment of fixed
assets
|
—
|
|
|
2,595
|
|
Gain on derivative
instruments (1)
|
(183,915)
|
|
|
(52,539)
|
|
Net cash receipts on
settled derivative instruments (1)
|
34,895
|
|
|
166,350
|
|
Incentive unit
expense
|
5,920
|
|
|
44,902
|
|
Other
expense
|
1,704
|
|
|
5,127
|
|
Income tax effect of
reconciling items
|
67,765
|
|
|
(120,128)
|
|
Adjusted net
income (loss) attributable to Rice Energy Inc.
|
$
|
782
|
|
|
$
|
(53,554)
|
|
|
|
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 net income on
a cash basis during the period the derivatives settled.
|
Rice Energy
Inc.
|
Supplemental
Balance Sheet Data
|
(Unaudited)
|
|
(in
thousands)
|
September 30,
2016
|
Adjusted
|
Pro forma
September 30,
2016
|
Cash and cash
equivalents
|
$
|
1,543,088
|
|
$
|
(976,000)
|
|
$
|
567,088
|
|
Long-term
debt
|
|
|
|
Senior Secured
Revolving Credit Facility
|
—
|
|
—
|
|
—
|
|
6.25% Senior Notes
Due April 2022(1)
|
$
|
887,413
|
|
—
|
|
$
|
887,413
|
|
7.25% Senior Notes
Due May 2023(2)
|
391,169
|
|
—
|
|
391,169
|
|
Midstream Holdings
Revolving Credit Facility
|
34,000
|
|
—
|
|
34,000
|
|
RMP Revolving Credit
Facility
|
—
|
|
165,000
|
|
165,000
|
|
Total long-term
debt
|
$
|
1,312,582
|
|
$
|
—
|
|
$
|
1,477,582
|
|
Net debt
(cash)
|
$
|
(230,506)
|
|
$
|
—
|
|
$
|
910,494
|
|
|
|
1.
|
Net of unamortized
deferred finance costs of $12,587.
|
2.
|
Net of unamortized
deferred finance costs of $6,337.
|
Rice Energy
Inc.
|
Derivatives
Information
|
(Unaudited)
|
|
The table below
provides data associated with our derivatives as of October 31,
2016 for the periods indicated:
|
|
All-In Fixed
Price Derivatives
|
4Q16
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
NYMEX Natural Gas
Swaps:
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
702
|
|
|
556
|
|
|
642
|
|
|
290
|
|
|
298
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
3.30
|
|
|
$
|
3.24
|
|
|
$
|
2.98
|
|
|
$
|
2.95
|
|
|
$
|
2.98
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX Natural Gas
Collars:
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
40
|
|
|
260
|
|
|
285
|
|
|
170
|
|
|
—
|
|
Wtd Average Floor
Price ($/MMBtu)
|
$
|
2.89
|
|
|
$
|
3.09
|
|
|
$
|
3.15
|
|
|
$
|
3.00
|
|
|
$
|
—
|
|
Wtd Average Call Price
($/MMBtu)
|
$
|
3.58
|
|
|
$
|
3.62
|
|
|
$
|
3.63
|
|
|
$
|
3.52
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX Natural Gas
Calls:
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
—
|
|
|
50
|
|
|
80
|
|
|
110
|
|
|
135
|
|
Wtd Average Price
($/MMBtu)
|
$
|
—
|
|
|
$
|
3.60
|
|
|
$
|
3.48
|
|
|
$
|
3.55
|
|
|
$
|
3.47
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX Natural Deferred
Puts:
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
—
|
|
|
55
|
|
|
30
|
|
|
20
|
|
|
—
|
|
Wtd Avg. Net Floor
Price ($/MMBtu)
|
$
|
—
|
|
|
$
|
2.50
|
|
|
$
|
2.77
|
|
|
$
|
2.80
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX Volume Excl
Calls (BBtu/d)
|
742
|
|
|
871
|
|
|
957
|
|
|
480
|
|
|
298
|
|
NYMEX Volume Incl
Calls (BBtu/d)
|
742
|
|
|
921
|
|
|
1,037
|
|
|
590
|
|
|
433
|
|
Swap, Collar &
Put Floor ($/MMBtu)
|
$
|
3.28
|
|
|
$
|
3.15
|
|
|
$
|
3.02
|
|
|
$
|
2.96
|
|
|
$
|
2.98
|
|
|
|
|
|
|
|
|
|
|
|
WAHA Natural Gas
Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
56
|
|
|
45
|
|
|
15
|
|
|
5
|
|
|
—
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
3.04
|
|
|
$
|
3.07
|
|
|
$
|
3.01
|
|
|
$
|
3.29
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Dominion Natural Gas
Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
177
|
|
|
219
|
|
|
257
|
|
|
92
|
|
|
—
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
2.29
|
|
|
$
|
2.24
|
|
|
$
|
2.23
|
|
|
$
|
2.34
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Total Fixed Price
Derivatives
|
|
|
|
|
|
|
|
|
|
Volume Hedged Excl.
Calls (BBtu/d)
|
975
|
|
|
1,136
|
|
|
1,230
|
|
|
577
|
|
|
298
|
|
Volume Hedged Incl.
Calls (BBtu/d)
|
975
|
|
|
1,186
|
|
|
1,310
|
|
|
687
|
|
|
433
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
3.09
|
|
|
$
|
2.97
|
|
|
$
|
2.86
|
|
|
$
|
2.87
|
|
|
$
|
2.98
|
|
|
|
|
|
|
|
|
|
|
|
Basis Contract
Derivatives
|
|
|
|
|
|
|
|
|
|
Appalachian Basis
Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
165
|
|
|
173
|
|
|
170
|
|
|
240
|
|
|
252
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
(1.19)
|
|
|
$
|
(1.03)
|
|
|
$
|
(0.67)
|
|
|
$
|
(0.59)
|
|
|
$
|
(0.56)
|
|
|
|
|
|
|
|
|
|
|
|
Other Basis
Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
367
|
|
|
212
|
|
|
104
|
|
|
45
|
|
|
20
|
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
(0.12)
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.13)
|
|
|
$
|
(0.18)
|
|
|
$
|
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
Physical Triggered
Basis
|
|
|
|
|
|
|
|
|
|
Appalachian Fixed
Basis (Physical)
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
21
|
|
|
—
|
|
|
4
|
|
|
25
|
|
|
45
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
(0.79)
|
|
|
$
|
—
|
|
|
$
|
(0.58)
|
|
|
$
|
(0.58)
|
|
|
$
|
(0.61)
|
|
|
|
|
|
|
|
|
|
|
|
Other Fixed Basis
(Physical)
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
131
|
|
|
147
|
|
|
125
|
|
|
92
|
|
|
42
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
(0.13)
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.16)
|
|
|
$
|
(0.15)
|
|
|
|
|
|
|
|
|
|
|
|
Total Basis
Swaps(Financial +
Physical)
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
684
|
|
|
533
|
|
|
403
|
|
|
402
|
|
|
359
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
(0.40)
|
|
|
$
|
(0.42)
|
|
|
$
|
(0.37)
|
|
|
$
|
(0.45)
|
|
|
$
|
(0.49)
|
|
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SOURCE Rice Energy Inc.