CANONSBURG, Pa., Feb. 22, 2017 /PRNewswire/ -- Rice Energy
Inc. (NYSE: RICE) ("Rice Energy") today reported fourth quarter
and full-year 2016 financial and operational results. 2016
highlights include:
- Fourth quarter net production averaged 1,145 MMcfe/d, an 83%
increase from prior year's quarter (49% increase excluding acquired
Vantage Energy production)
- 2016 net production averaged 831 MMcfe/d, 4% above the
high end of guidance and a 51% increase from prior year (41%
increase excluding acquired Vantage Energy production)
- Invested $686 million of E&P
capital in 2016 with development costs per foot approximately 32%
below the 2015 average
- Reduced fourth quarter per unit operating costs to $0.61 per Mcfe, a 14% decrease from the prior
year quarter
- Net loss of $204.5 million for
the fourth quarter and $248.8 million
for the full year
- Adjusted EBITDAX(1) of $202
million for the fourth quarter and $575.5 million for the full year
- Year-end 2016 proved reserves totaled 4.0 Tcfe, a 136%
increase, with $1.6 billion and
$3.2 billion pre-tax
PV-10(1) at SEC and strip pricing(2),
respectively
- Added approximately 100,000 net acres in Appalachia throughout
the year and ended the year with approximately 248,000 net
Appalachian acres
- Rice Midstream Holdings LLC ("RMH") 2016 gathering throughput
of 708 MDth/d, an increase of 187% relative to the prior year
- Acquired Vantage Energy for $2.7
billion on October 19,
2016
- Exited the year with liquidity of $1.9
billion(3) and leverage of 1.5x(1) net
debt to 2016 Further Adjusted EBITDAX
Commenting on the results, Daniel J.
Rice IV, Chief Executive Officer, said, "We faced the
challenging 2016 business headwinds head on and used them as an
opportunity to demonstrate the resiliency of our assets, our
strategy and our team. We meaningfully reduced our development and
operating costs without compromising the productivity of our core
wells, which made us a leaner, more efficient organization, which
in turn made our acquisition of Vantage Energy that much more
attractive. The Vantage Energy acquisition checks all of our
strategic boxes and allows us to operate at a greater scale with
one of the largest, most concentrated drilling inventories of truly
core acreage in the Appalachia basin. I am proud of our record
results in 2016 that have provided the operational momentum to
repeat our success in 2017."
1.
|
Please see
"Supplemental Non-GAAP Financial Measures" for a description of
Adjusted EBITDAX, Further Adjusted EBITDAX, PV-10 and related
reconciliations to comparable GAAP financial
measures.
|
2.
|
Strip pricing as
of 12/31/16.
|
3.
|
Excludes Rice
Midstream Partners LP.
|
2016 Consolidated
Results
|
|
Three Months Ended
December 31, 2016
|
|
Year Ended
December 31, 2016
|
|
|
|
|
|
Net Production
(Bcfe)
|
|
|
|
Appalachia
|
98.7
|
|
|
297.7
|
|
Barnett
|
6.7
|
|
|
6.7
|
|
Total Net
Production
|
105.4
|
|
|
304.4
|
|
% Gas
|
|
99
|
%
|
|
99
|
%
|
%
Operated
|
|
88
|
%
|
|
88
|
%
|
%
Marcellus
|
|
61
|
%
|
|
65
|
%
|
%
Utica
|
|
32
|
%
|
|
32
|
%
|
|
|
|
|
|
NYMEX Henry Hub price
($/MMBtu)
|
|
$
|
2.98
|
|
|
$
|
2.46
|
|
Average basis impact
($/MMBtu)
|
|
(0.56)
|
|
|
(0.28)
|
|
FT fuel and variables
($/MMBtu)
|
|
(0.12)
|
|
|
(0.14)
|
|
Btu uplift
(MMBtu/Mcf)
|
|
0.12
|
|
|
0.10
|
|
Pre-hedge realized
price ($/Mcf)
|
|
2.42
|
|
|
2.14
|
|
Realized hedging gain
($/Mcf)
|
|
0.33
|
|
|
0.67
|
|
Post-hedge realized
price ($/Mcf)
|
|
2.75
|
|
|
2.81
|
|
Capacity optimization
($/Mcf)
|
|
—
|
|
|
0.01
|
|
Adjusted realized
price ($/Mcf)
|
|
$
|
2.75
|
|
|
$
|
2.82
|
|
|
|
|
|
|
Operating revenues (in
thousands)
|
|
$
|
284,046
|
|
|
$
|
778,906
|
|
Realized gain on
derivative instruments (in thousands)
|
|
34,720
|
|
|
201,071
|
|
Total operating
revenues and realized gain on derivative instruments (in
thousands)
|
|
$
|
318,766
|
|
|
$
|
979,977
|
|
|
|
|
|
|
Average costs per
Mcfe:
|
|
|
|
|
Lease operating
expense(1)
|
|
$
|
0.18
|
|
|
$
|
0.17
|
|
Gathering,
compression and transportation expense
|
|
$
|
0.37
|
|
|
$
|
0.41
|
|
Production taxes and
impact fees
|
|
$
|
0.06
|
|
|
$
|
0.05
|
|
General and
administrative expense(1)
|
|
$
|
0.32
|
|
|
$
|
0.39
|
|
Depreciation,
depletion and amortization
|
|
$
|
1.15
|
|
|
$
|
1.21
|
|
|
|
|
|
|
Net loss (in
thousands)
|
|
$
|
(204,493)
|
|
|
$
|
(248,820)
|
|
Adjusted EBITDAX (in
thousands)(2)
|
|
$
|
202,027
|
|
|
$
|
575,547
|
|
|
|
|
|
|
Total RMH throughput
(MDth/d)
|
|
904
|
|
|
708
|
|
%
Third-party
|
|
59
|
%
|
|
62
|
%
|
|
|
1.
|
Excludes non-cash
equity compensation expense of $0.01 million and $4.9 million
attributable to lease operating and general and administrative
expenses, respectively, for the three months ended December 31,
2016 and $0.6 million and $21.3 million attributable to lease
operating and general and administrative expenses, respectively,
for the year ended December 31, 2016.
|
2.
|
Please see
"Supplemental Non-GAAP Financial Measures" for a description of
Adjusted EBITDAX and the reconciliation to net income (loss), the
comparable GAAP financial measure.
|
|
|
Fourth Quarter 2016 Financial Results
We reported a net loss attributable to our common
stockholders of $178.4 million
or ($0.88) per diluted share for the
fourth quarter 2016, a 36% increase over the prior year quarter.
Adjusted EBITDAX(1) for the quarter was
$202 million, a 53% increase over the
prior year quarter. We reported adjusted net income(1)
of $75.6 million, or $0.37 per diluted share, after excluding
non-recurring income and expense items.
Net production totaled 105.4 Bcfe, or an average of 1,145
MMcfe/d, representing an 83% increase above the prior year quarter.
Excluding production attributable to the Vantage Energy
acquisition, fourth quarter net production was 49% higher than the
prior year quarter. Total operating revenues and realized gain on
derivative instruments were $319
million.
For the three months ended December 31,
2016, our average realized natural gas price was
$2.42 per Mcf, excluding hedges
and $2.75 per Mcf including hedges.
Approximately 67% of our fourth quarter production received
favorable Gulf Coast, TCO and Midwest pricing. Our average basis
differential for the quarter was ($0.56) per MMBtu, while TETCO M2 and Dominion
South averaged ($1.53) and
($1.52) per MMBtu, respectively,
below NYMEX Henry Hub for the quarter.
The sum of our lease operating expense; gathering, compression
and transportation expense; and production taxes and impact fees on
a per unit basis were $0.61 per Mcfe, a 14% decrease from the
prior year quarter. This decrease was driven by a 27% per unit
decrease in gathering, compression and transportation expense,
partially offset by modest increases in lease operating expense and
production taxes and impact fees attributable to the legacy Vantage
Energy Barnett assets.
During the fourth quarter, we invested $201 million in our E&P operations (excluding
the Vantage Energy acquisition), consisting of $159 million to drill and complete operated
Marcellus and Ohio Utica wells, $4
million for non-operated Ohio Utica development and
$38 million for land. In addition, we
invested $33 million in our RMH
midstream assets to construct our Ohio gas gathering systems.
1.
|
Please see
"Supplemental Non-GAAP Financial Measures" for a description of
Adjusted EBITDAX and adjusted net income (loss) and the
related reconciliations thereof to net income (loss), the
comparable GAAP financial measures.
|
|
|
Full-Year 2016 Financial Results
We reported a net loss attributable to our common
stockholders of $298.2 million
or ($1.84) per diluted share for
2016, a 2% decrease over the prior year. Adjusted
EBITDAX(1) during 2016 was $575.5 million, a 33% increase over the prior
year. We reported adjusted net income(1) of $59.5 million, or $0.37 per diluted share.
Net production totaled 304.4 Bcfe, or an average of 831 MMcfe/d,
representing a 51% increase over the prior year and 4% above the
high end of guidance. Excluding production attributable to the
Vantage Energy acquisition, 2016 net production was 41% higher than
the prior year. Total operating revenues and realized gain on
derivative instruments were $980
million.
For the year ended December 31,
2016, our average realized natural gas price was
$2.14 per Mcf, excluding hedges
and $2.81 per Mcf including hedges.
Approximately 79% of our 2016 production received favorable Gulf
Coast, TCO and Midwest pricing. Our average basis differential for
the year was ($0.28) per MMBtu, while
TETCO M2 and Dominion South averaged ($1.11) and ($1.09)
per MMBtu, respectively, below NYMEX Henry Hub for the year.
The sum of our lease operating expense; gathering, compression
and transportation expense; and production taxes and impact fees on
a per unit basis were $0.63 per Mcfe, a 7% decrease from the
prior year due to a reduction in rental expenses and water disposal
costs within lease operating expense.
During 2016, we invested $686
million in our E&P operations (excluding the Vantage
Energy acquisition), which was approximately 7% better than
guidance. Our investments consisted of $504
million to drill and complete operated Marcellus and Ohio
Utica wells, $67 million for
non-operated Ohio Utica development and $115
million for land. In addition, we invested $105 million in our RMH midstream assets to
construct our Ohio gas gathering
systems.
1.
|
Please see
"Supplemental Non-GAAP Financial Measures" for a description of
Adjusted EBITDAX, adjusted net income (loss) and the related
reconciliations thereof to net income (loss), the comparable
GAAP financial measure.
|
Financial Position and Liquidity
On December 19, 2016, our upstream
revolving credit facility borrowing base was increased to
$1.45 billion, which represents a
$700 million increase from the
beginning of 2016 and a $450 million
increase from the prior quarter which gives effect to the
Pennsylvania oil and gas
properties acquired in connection with the Vantage Energy
acquisition.
As of December 31, 2016, our
liquidity(1) position, excluding RMP, was $1.9 billion, comprised of $1.6 billion of upstream liquidity ($0.4 billion of cash on hand and $1.2 billion revolver availability) and
$296 million of RMH liquidity
($49 million of cash on hand and
$247 million revolver availability).
Our consolidated net debt to 2016 Further Adjusted
EBITDAX(2) was 1.5x as of December 31, 2016.
1.
|
Liquidity is calculated by adding cash on hand
plus availability on our revolving credit
facilities.
|
2.
|
Please see
"Supplemental Non-GAAP Financial Measures" for a description of
Further Adjusted EBITDAX.
|
Fourth Quarter and Full Year 2016 Operational Results
As of December 31, 2016, our core
Appalachian acreage position totaled approximately 248,000 net
acres, consisting of approximately 185,000 net Marcellus acres in
Pennsylvania and approximately
63,000 net Utica acres in
Ohio. Across our acreage position
we have identified over 1,100 undeveloped, highly economic drilling
locations, including 861 net Marcellus locations in Pennsylvania and 241 net Utica locations in Ohio. In addition, we control approximately
105,000 net Utica acres in
Pennsylvania and have identified
228 net undeveloped Utica
locations in Pennsylvania.
Marcellus Shale
During the fourth quarter we turned to sales 18 gross (18 net)
horizontal Marcellus wells with an average lateral length of 6,700
feet. During 2016, we turned to sales 36 gross (36 net) wells with
an average lateral length of 7,000 feet. During the fourth quarter,
we drilled 7 net and completed 9 net Marcellus wells for
an average cost of $775 per lateral foot. In 2016, we also
acquired 67 net producing wells pursuant to the Vantage Energy
acquisition, exiting the year with 222 net operated horizontal
Marcellus wells producing into sales.
In early 2016, we were able to leverage our continued healthy
activity levels by investing capital in a trough service price
environment to drive future, economic development. Due to these
sustained activity levels, we have been able to hedge approximately
60% of our anticipated service costs for the next 12 - 24 months.
In addition, the continuous improvement in peer-leading execution
by our drilling and completion teams translated into multiple new
company records throughout 2016. During 2016, we averaged 51 wells
drilled per rig per year, which was approximately a 70% increase
from the prior year average of 30 wells. In addition we completed
an average of 6 stages per day in 2016, which was a 50% increase
compared to the 2015 average of 4 stages per day. As a result, we
turned 2016 operated wells to sales an average of approximately 40
days ahead of schedule. These efforts translated into a 34%
reduction in our 2016 Marcellus drilling and completion costs
compared to the 2015 average of $1,220 per lateral foot.
With respect to our acquired Vantage Energy assets, since
assuming operational control in October
2016, we have drilled 7 horizontal wells, completed 6 wells
and turned 2 wells to sales. Furthermore, as a result of acreage
synergies and schedule optimization, we have increased the
projected average lateral length on all expected 2017 wells drilled
across the acquired acreage from 5,900 feet to over 8,000 feet. We
believe that the combination of increased infill organic leasing
and our growing economies of scale will allow us to continue to
further extend lateral lengths across our Greene County acreage over time.
Utica Shale
During 2016, we turned to sales 20 gross (13 net) horizontal
operated Utica wells with an
average lateral length of 9,200 feet. In addition, we drilled 9 net
and completed 9 net Utica wells during the fourth quarter for
an average cost of $1,100 per lateral foot. We exited the year
with 36 gross (24 net) operated horizontal Utica wells producing into sales and had a
non-operated working interest in 76 gross (20 net) producing
horizontal Ohio Utica wells.
Due to increased operational efficiencies, we turned 2016
operated wells to sales an average of approximately 20 days ahead
of schedule. These efforts translated into a 30% reduction in our
2016 Utica drilling and completion costs compared to the 2015
average of $1,715 per lateral
foot.
2016 Proved Reserves
As of December 31, 2016, proved
reserves totaled 4.0 Tcfe, which represents a 2.3 Tcfe
increase from prior year proved reserves.
Approximately 1.4 Tcfe of proved reserves were added
organically through the drill-bit and 911 Bcfe were acquired (net
of revisions), primarily from the Vantage Energy acquisition.
During 2016, we replaced approximately 757% of produced
reserves.
Proved Developed
Proved developed reserves grew to approximately 2.2 Tcfe, which
represents a 115% increase from year-end 2015. Proved developed
locations at year-end were comprised of 422 net producing wells
(282 in Appalachia) plus 34 net non-producing wells (24 in
Appalachia). At SEC pricing, the pre-tax PV-10(1) of our
proved developed reserves totaled $1.3
billion, a 62% increase relative to the prior year PV-10 of
$802 million. At NYMEX strip
pricing(1), the pre-tax PV-10 of our year-end 2016
proved developed reserves was $2.2
billion, a 123% increase relative to prior year PV-10 of
$988 million.
Undeveloped
As of December 31, 2016, we had
1,965 net undeveloped drilling locations, of which 143 (7.3%) were
classified as proved undeveloped (PUD) with PUD reserves totaling
1.8 Tcfe, a 167% increase from the prior year. Future
development costs for these proved undeveloped reserves were
estimated to be $0.58 per Mcfe, which
represents a 24% per unit cost reduction as compared to the
year-end 2015 estimated future development cost of $0.76 per Mcfe.
Estimated Proved
Reserves as of December 31, 2016
|
|
|
Appalachia
|
|
Texas
|
|
Total
|
|
Net
Wells
(App./TX)
|
Estimated proved
reserves (Bcfe):
|
|
|
|
|
|
|
|
|
Proved developed
reserves (PD)
|
|
1,916
|
|
262
|
|
2,178
|
|
305/151
|
Proved undeveloped
reserves (PUD)
|
|
1,827
|
|
—
|
|
1,827
|
|
143/0
|
Total proved
reserves
|
|
3,743
|
|
262
|
|
4,005
|
|
448/151
|
PV-10 of proved
reserves ($ in millions):
|
|
|
|
|
|
|
|
|
SEC
pricing
|
|
$
|
1,418
|
|
$
|
150
|
|
$
|
1,568
|
|
—
|
Strip
pricing(2)
|
|
$
|
3,009
|
|
$
|
222
|
|
$
|
3,231
|
|
—
|
Unproved, undeveloped
locations(3)
|
|
|
|
|
|
|
|
1651/171
|
Total undeveloped
locations(4)
|
|
|
|
|
|
|
|
1794/171
|
Undeveloped
locations, %
|
|
|
|
|
|
|
|
8%/0%
|
|
|
1.
|
Please see
"Supplemental Non-GAAP Financial Measure" for a description of
PV-10 and the reconciliation thereof to standardized measure, the
comparable GAAP financial measure.
|
2.
|
Strip pricing as
of December 31, 2016: 2017 - $3.61; 2018 - $3.141; 2019 - $2.87;
2020 - $2.88.
|
3.
|
Represents
management's calculation of net locations not included in total
proved reserves net locations.
|
4.
|
Represents net PUD
locations plus management's calculation of net locations not
included in total proved reserves net locations.
|
|
|
Rice Midstream Holdings LLC
RMH controls one of the largest and most concentrated core
dry gas acreage dedications in the Utica Shale, covering
approximately 162,000 acres in Belmont and Monroe Counties with approximately 75% of its
dedication from high-quality, third party customers. RMH also owns
an approximate 92% common equity interest in GP Holdings, which in
turn owns a 28% limited partner interest in Rice Midstream Partners
LP (NYSE: RMP) and 100% of its incentive distribution rights. For
the fourth quarter 2016, RMH received $7.4
million of cash (net of ownership interest).
For the three months ended December 31,
2016, gathering volumes averaged 904 MDth/d, a 180% increase
over the prior year quarter and an 11% increase relative to third
quarter 2016, with 59% attributable to third-party
volumes. Compression volumes were 432 MDth/d, an 11% decrease
relative to third quarter 2016, with 51% attributable to
third-party volumes. Gathering and compression revenues totaled
$22.4 million. Operation and
maintenance expense totaled $0.6
million, and operating loss was $4.4
million.
For the year ended December 31,
2016, gathering volumes averaged 708 MDth/d, a 187% increase
over the prior year, with 62% attributable to third-party volumes.
Compression volumes were 435 MDth/d, with 61% attributable to
third-party volumes. Gathering and compression revenues totaled
$63.9 million. Operation and
maintenance expense totaled $3.0
million, and operating income was $13.6 million.
As of December 31, 2016, RMH had
$247 million of availability on its
revolving credit facility and $49
million of cash on hand, resulting in $296 million of total liquidity.
Rice Midstream Partners LP
RMP's concentrated gathering and compression acreage
dedication in the Marcellus Shale core covers approximately 215,000
acres in Washington and Greene Counties with
approximately 29,000 acres dedicated from high-quality, third party
customers.
For the three months ended December 31,
2016, gathering volumes averaged 1,203 MDth/d, a 71%
increase over the prior year quarter and a 26% increase relative to
third quarter 2016, with 24% attributable to third-party volumes.
Compression volumes were 825 MDth/d, a 778% increase over the prior
year quarter and an 11% increase relative to third quarter 2016,
with 36% attributable to third-party volumes. Fresh water delivery
volumes were 321 million gallons or an average of 3.5 MMgal/d, a
59% increase over the prior year quarter and a 138% increase
relative to third quarter 2016 due to increased Ohio Utica
completion activity.
For the year ended December 31,
2016, gathering volumes averaged 983 MDth/d, a 52% increase
over the prior year, with 27% attributable to third-party volumes.
Compression volumes were 572 MDth/d, a 794% increase over the prior
year, with 43% attributable to third-party volumes. Fresh water
delivery volumes were 1,253 million gallons or an average of 3.4
MMgal/d, a 61% increase over the prior year, with 11% attributable
to third-party volumes.
As of December 31, 2016, RMP had
$660 million of availability on its
revolving credit facility and $22
million of cash on hand, resulting in $682 million of total liquidity.
On January 20, 2017, RMP declared a quarterly distribution
of $0.2505 per unit for the fourth
quarter 2016. This represents an increase of $0.0135 per unit, or 6%, relative to third
quarter 2016, which places RMP in the third tier of the IDR splits.
The distribution was payable on February 16, 2017 to
unitholders of record as of February 7, 2017.
RMP's fourth quarter and full-year 2016 results as well as 2017
guidance were released today and are available at
www.ricemidstream.com.
Commodity Hedge Position
As depicted in the table below, we have 1,246 BBtu/d hedged in
2017 at a NYMEX weighted average floor price of $3.24 MMBtu, representing approximately 90% of
expected production (based on the midpoint of guidance). Please see
the "Derivatives Information" table at the end of this press
release for more detailed information about our derivatives
positions.
Total Fixed Price
Derivatives
|
2017
|
|
|
2018
|
|
|
2019
|
|
|
2020
|
|
|
2021
|
|
NYMEX Volume Hedged
(BBtu/d)
|
970
|
|
|
980
|
|
|
500
|
|
|
383
|
|
|
45
|
|
NYMEX Wtd Avg. Fixed
Floor Price ($/MMBtu)
|
$
|
3.24
|
|
|
$
|
3.04
|
|
|
$
|
2.96
|
|
|
$
|
2.96
|
|
|
$
|
2.89
|
|
Total Volume Hedged
(BBtu/d)
|
1,246
|
|
|
1,259
|
|
|
601
|
|
|
383
|
|
|
45
|
|
Total Wtd Avg. Fixed
Floor Price ($/MMBtu)
|
$
|
3.05
|
|
|
$
|
2.87
|
|
|
$
|
2.87
|
|
|
$
|
2.96
|
|
|
$
|
2.89
|
|
Conference Call
Rice Energy will host a conference call on February 23, 2017 at 10:00
a.m. Eastern time (9:00 a.m. Central
time) to discuss fourth quarter and full year 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.
About Rice Energy
Rice Energy Inc. is an independent natural gas and oil company
focused on 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
and Section 21E of the Securities Exchange Act of 1934, as amended.
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, further 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; and risks related
to joint venture operations. 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
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
(in thousands,
except share data)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
Natural gas, oil and
natural gas liquids (NGL) sales
|
|
$
|
256,333
|
|
|
$
|
118,568
|
|
|
$
|
653,441
|
|
|
$
|
446,515
|
|
Gathering,
compression and water services
|
|
27,601
|
|
|
14,424
|
|
|
101,057
|
|
|
49,179
|
|
Other
revenue
|
|
112
|
|
|
3,095
|
|
|
24,408
|
|
|
6,447
|
|
Total operating
revenues
|
|
284,046
|
|
|
136,087
|
|
|
778,906
|
|
|
502,141
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
18,450
|
|
|
9,350
|
|
|
50,007
|
|
|
44,356
|
|
Gathering,
compression and transportation
|
|
38,954
|
|
|
29,197
|
|
|
123,852
|
|
|
84,707
|
|
Production taxes and
impact fees
|
|
5,861
|
|
|
2,507
|
|
|
13,866
|
|
|
7,609
|
|
Exploration
|
|
5,225
|
|
|
1,212
|
|
|
15,159
|
|
|
3,137
|
|
Midstream operation
and maintenance
|
|
4,932
|
|
|
6,024
|
|
|
23,157
|
|
|
16,988
|
|
Incentive unit
expense (income)
|
|
6,859
|
|
|
(9,773)
|
|
|
51,761
|
|
|
36,097
|
|
Stock compensation
expense
|
|
4,921
|
|
|
4,847
|
|
|
21,915
|
|
|
16,528
|
|
Impairment of gas
properties
|
|
20,853
|
|
|
18,250
|
|
|
20,853
|
|
|
18,250
|
|
Impairment of
goodwill
|
|
—
|
|
|
294,908
|
|
|
—
|
|
|
294,908
|
|
Impairment of fixed
assets
|
|
20,462
|
|
|
—
|
|
|
23,057
|
|
|
—
|
|
General and
administrative
|
|
29,082
|
|
|
24,607
|
|
|
96,803
|
|
|
86,510
|
|
Depreciation,
depletion and amortization
|
|
121,323
|
|
|
94,787
|
|
|
368,455
|
|
|
322,784
|
|
Acquisition
expense
|
|
4,938
|
|
|
1,111
|
|
|
6,109
|
|
|
1,235
|
|
Amortization of
intangible assets
|
|
412
|
|
|
408
|
|
|
1,634
|
|
|
1,632
|
|
Other
expense
|
|
1,508
|
|
|
2,896
|
|
|
27,308
|
|
|
5,567
|
|
Total operating
expenses
|
|
283,780
|
|
|
480,331
|
|
|
843,936
|
|
|
940,308
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
266
|
|
|
(344,244)
|
|
|
(65,030)
|
|
|
(438,167)
|
|
Interest
expense
|
|
(25,883)
|
|
|
(24,009)
|
|
|
(99,627)
|
|
|
(87,446)
|
|
Other
income
|
|
545
|
|
|
167
|
|
|
1,406
|
|
|
1,108
|
|
(Loss) gain on
derivative instruments
|
|
(272,775)
|
|
|
89,019
|
|
|
(220,236)
|
|
|
273,748
|
|
Amortization of
deferred financing costs
|
|
(3,129)
|
|
|
(1,403)
|
|
|
(7,545)
|
|
|
(5,124)
|
|
Loss before income
taxes
|
|
(300,976)
|
|
|
(280,470)
|
|
|
(391,032)
|
|
|
(255,881)
|
|
Income tax benefit
(expense)
|
|
96,483
|
|
|
6,217
|
|
|
142,212
|
|
|
(12,118)
|
|
Net loss
|
|
(204,493)
|
|
|
(274,253)
|
|
|
(248,820)
|
|
|
(267,999)
|
|
Less: Net loss
(income) attributable to noncontrolling interests
|
|
34,604
|
|
|
(6,504)
|
|
|
(20,931)
|
|
|
(23,337)
|
|
Net loss attributable
to Rice Energy Inc.
|
|
(169,889)
|
|
|
(280,757)
|
|
|
(269,751)
|
|
|
(291,336)
|
|
Less: Preferred
dividends and accretion of redeemable noncontrolling
interests
|
|
(8,467)
|
|
|
—
|
|
|
(28,450)
|
|
|
—
|
|
Net loss attributable
to Rice Energy Inc. common stockholders
|
|
$
|
(178,356)
|
|
|
$
|
(280,757)
|
|
|
$
|
(298,201)
|
|
|
$
|
(291,336)
|
|
Weighted average
number of shares of common stock - basic
|
|
201,878,421
|
|
|
136,384,591
|
|
|
162,225,505
|
|
|
136,344,076
|
|
Weighted average
number of shares of common stock - diluted
|
|
201,878,421
|
|
|
136,384,591
|
|
|
162,225,505
|
|
|
136,344,076
|
|
Loss per
share—basic
|
|
$
|
(0.88)
|
|
|
$
|
(2.06)
|
|
|
$
|
(1.84)
|
|
|
$
|
(2.14)
|
|
Loss per
share—diluted
|
|
$
|
(0.88)
|
|
|
$
|
(2.06)
|
|
|
$
|
(1.84)
|
|
|
$
|
(2.14)
|
|
Rice Energy
Inc.
|
Segment Results of
Operations
|
(Unaudited)
|
|
Exploration and
Production Segment
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
(in thousands,
except volumes)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Operating
volumes:
|
|
|
|
|
|
|
|
|
Natural gas
production (MMcf)
|
|
104,053
|
|
|
57,201
|
|
|
302,322
|
|
|
199,831
|
|
Oil and NGL
production (MBbls)
|
|
222
|
|
|
33
|
|
|
354
|
|
|
249
|
|
Total production
(MMcfe)
|
|
105,384
|
|
|
57,399
|
|
|
304,443
|
|
|
201,328
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
Natural gas, oil and
NGL sales
|
|
$
|
255,992
|
|
|
$
|
118,568
|
|
|
$
|
653,441
|
|
|
$
|
446,515
|
|
Other
revenue
|
|
112
|
|
|
3,095
|
|
|
24,408
|
|
|
6,447
|
|
Total operating
revenues
|
|
256,104
|
|
|
121,663
|
|
|
677,849
|
|
|
452,962
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
18,584
|
|
|
9,350
|
|
|
50,141
|
|
|
44,356
|
|
Gathering,
compression and transportation
|
|
76,011
|
|
|
47,994
|
|
|
232,478
|
|
|
150,015
|
|
Production taxes and
impact fees
|
|
5,861
|
|
|
2,507
|
|
|
13,866
|
|
|
7,609
|
|
Exploration
|
|
5,225
|
|
|
1,212
|
|
|
15,159
|
|
|
3,137
|
|
Incentive unit
expense (income)
|
|
6,663
|
|
|
(10,056)
|
|
|
49,426
|
|
|
33,873
|
|
Stock compensation
expense
|
|
3,936
|
|
|
3,140
|
|
|
13,971
|
|
|
11,029
|
|
Impairment of gas
properties
|
|
20,853
|
|
|
18,250
|
|
|
20,853
|
|
|
18,250
|
|
Impairment of
goodwill
|
|
—
|
|
|
294,908
|
|
|
—
|
|
|
294,908
|
|
Impairment of fixed
assets
|
|
170
|
|
|
—
|
|
|
2,765
|
|
|
—
|
|
General and
administrative
|
|
19,730
|
|
|
19,680
|
|
|
64,757
|
|
|
67,563
|
|
Depreciation,
depletion and amortization
|
|
115,980
|
|
|
91,529
|
|
|
350,187
|
|
|
308,194
|
|
Other
expense
|
|
92
|
|
|
3,049
|
|
|
25,653
|
|
|
5,075
|
|
Acquisition
expense
|
|
4,886
|
|
|
108
|
|
|
5,500
|
|
|
108
|
|
Total operating
expenses
|
|
277,991
|
|
|
481,671
|
|
|
844,756
|
|
|
944,117
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
(21,887)
|
|
|
$
|
(360,008)
|
|
|
$
|
(166,907)
|
|
|
$
|
(491,155)
|
|
|
|
|
|
|
|
|
|
|
Average costs per
Mcfe:
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
$
|
0.18
|
|
|
$
|
0.16
|
|
|
$
|
0.16
|
|
|
$
|
0.22
|
|
Gathering and compression
|
|
0.42
|
|
|
0.42
|
|
|
0.42
|
|
|
0.38
|
|
Transportation
|
|
0.30
|
|
|
0.42
|
|
|
0.35
|
|
|
0.36
|
|
Production taxes and impact fees
|
|
0.06
|
|
|
0.04
|
|
|
0.05
|
|
|
0.04
|
|
Exploration
|
|
0.05
|
|
|
0.02
|
|
|
0.05
|
|
|
0.02
|
|
General and
administrative
|
|
0.19
|
|
|
0.34
|
|
|
0.21
|
|
|
0.34
|
|
Depreciation, depletion and
amortization
|
|
1.10
|
|
|
1.59
|
|
|
1.15
|
|
|
1.53
|
|
Rice Midstream
Holdings Segment
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31
|
(in thousands,
except volumes)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Operating
volumes:
|
|
|
|
|
|
|
|
|
Gathering volumes
(MDth/d):
|
|
904
|
|
|
323
|
|
|
708
|
|
|
247
|
|
Compression volumes
(MDth/d):
|
|
432
|
|
|
201
|
|
|
435
|
|
|
51
|
|
|
|
|
|
|
|
|
|
|
Operating
results:
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
Gathering
revenues
|
|
$
|
19,867
|
|
|
$
|
8,229
|
|
|
$
|
53,836
|
|
|
$
|
26,108
|
|
Compression
revenues
|
|
2,558
|
|
|
1,254
|
|
|
10,098
|
|
|
1,256
|
|
Total operating
revenues
|
|
22,425
|
|
|
9,483
|
|
|
63,934
|
|
|
27,364
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Midstream operation
and maintenance
|
|
553
|
|
|
1,143
|
|
|
2,971
|
|
|
2,078
|
|
Incentive unit
expense
|
|
196
|
|
|
288
|
|
|
2,335
|
|
|
1,180
|
|
Acquisition
expense
|
|
—
|
|
|
1,127
|
|
|
484
|
|
|
1,127
|
|
Impairment of fixed
assets
|
|
20,292
|
|
|
—
|
|
|
20,292
|
|
|
—
|
|
Stock compensation
expense
|
|
840
|
|
|
522
|
|
|
5,071
|
|
|
998
|
|
General and
administrative
|
|
3,329
|
|
|
1,854
|
|
|
13,287
|
|
|
5,553
|
|
Depreciation,
depletion and amortization
|
|
1,538
|
|
|
900
|
|
|
5,760
|
|
|
2,786
|
|
Other
expense
|
|
125
|
|
|
(203)
|
|
|
125
|
|
|
(51)
|
|
Total operating
expenses
|
|
26,873
|
|
|
5,631
|
|
|
50,325
|
|
|
13,671
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
$
|
(4,448)
|
|
|
$
|
3,852
|
|
|
$
|
13,609
|
|
|
$
|
13,693
|
|
Rice Midstream
Partners Segment
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
(in thousands,
except volumes)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Operating
volumes:
|
|
|
|
|
|
|
|
|
Gathering volumes
(MDth/d):
|
|
1,203
|
|
|
703
|
|
|
983
|
|
|
647
|
|
Compression volumes
(MDth/d):
|
|
825
|
|
|
94
|
|
|
572
|
|
|
64
|
|
Water services
volumes (MMgal):
|
|
321
|
|
|
202
|
|
|
1,253
|
|
|
777
|
|
|
|
|
|
|
|
|
|
|
Operating
results:
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
Gathering
revenues
|
|
$
|
35,886
|
|
|
$
|
21,269
|
|
|
$
|
116,294
|
|
|
$
|
75,714
|
|
Compression
revenues
|
|
5,874
|
|
|
(96)
|
|
|
15,805
|
|
|
1,497
|
|
Water services
revenues
|
|
17,706
|
|
|
8,141
|
|
|
69,524
|
|
|
37,248
|
|
Total operating
revenues
|
|
59,466
|
|
|
29,314
|
|
|
201,623
|
|
|
114,459
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Midstream operation
and maintenance
|
|
7,297
|
|
|
4,882
|
|
|
24,589
|
|
|
14,910
|
|
Incentive unit
expense
|
|
—
|
|
|
(4)
|
|
|
—
|
|
|
1,044
|
|
Acquisition
expense
|
|
52
|
|
|
—
|
|
|
125
|
|
|
—
|
|
Stock compensation
expense
|
|
145
|
|
|
1,185
|
|
|
2,874
|
|
|
4,501
|
|
General and
administrative
|
|
6,023
|
|
|
3,072
|
|
|
18,759
|
|
|
13,394
|
|
Depreciation,
depletion and amortization
|
|
7,456
|
|
|
5,944
|
|
|
25,170
|
|
|
16,399
|
|
Amortization of
intangible assets
|
|
412
|
|
|
408
|
|
|
1,634
|
|
|
1,632
|
|
Other
expense
|
|
1,292
|
|
|
51
|
|
|
1,531
|
|
|
543
|
|
Total operating
expenses
|
|
22,677
|
|
|
15,538
|
|
|
74,682
|
|
|
52,423
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
36,789
|
|
|
$
|
13,776
|
|
|
$
|
126,941
|
|
|
$
|
62,036
|
|
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 (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 EBITDAX as Adjusted
EBITDAX 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 the addition of a water revenue
adjustment attributable to charges for fresh water delivery
services and produced water hauling services provided by RMP to
RICE, a charge that generates revenue for RMP but does not have a
corresponding expense at the RICE 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.
The following table presents a reconciliation of the non-GAAP
financial measure of Adjusted EBITDAX to the GAAP financial measure
of net income (loss).
|
Three Months
Ended
|
|
Year
Ended
|
(in
thousands)
|
December 31,
2016
|
|
December 31,
2016
|
Adjusted EBITDAX
reconciliation to net (loss):
|
|
|
|
Net loss
|
$
|
(204,493)
|
|
|
$
|
(248,820)
|
|
Interest
expense
|
25,883
|
|
|
99,627
|
|
Depreciation,
depletion and amortization
|
121,323
|
|
|
368,455
|
|
Impairment of fixed
assets
|
20,462
|
|
|
23,057
|
|
Impairment of gas
properties
|
20,853
|
|
|
20,853
|
|
Amortization of
deferred financing costs
|
3,129
|
|
|
7,545
|
|
Amortization of
intangible assets
|
412
|
|
|
1,634
|
|
Loss on derivative
instruments(1)
|
272,775
|
|
|
220,236
|
|
Net cash receipts on
settled derivative instruments(1)
|
34,720
|
|
|
201,071
|
|
Acquisition
expense
|
4,938
|
|
|
6,109
|
|
Non-cash stock
compensation expense
|
4,921
|
|
|
21,915
|
|
Non-cash incentive
unit expense
|
6,859
|
|
|
51,761
|
|
Income tax (benefit)
expense
|
(96,483)
|
|
|
(142,212)
|
|
Exploration
expense
|
5,225
|
|
|
15,159
|
|
Acquisition break up
fee
|
—
|
|
|
(1,939)
|
|
Other
expense
|
1,383
|
|
|
6,511
|
|
Non-controlling
interest attributable to midstream entities
|
(19,880)
|
|
|
(75,415)
|
|
Adjusted
EBITDAX(2)
|
$
|
202,027
|
|
|
$
|
575,547
|
|
|
|
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.
|
The above Adjusted
EBITDAX reconciliation deducts the impact of non-controlling
interest attributable to midstream entities and excludes the
elimination of intercompany water revenues between Rice Energy
subsidiaries and Rice Midstream Partners of $19.9 million and $17.2
million for the three months ended December 31, 2016, respectively,
and $75.4 million and $55.9 million for the year ended December 31,
2016, respectively. When adjusting for these impacts, our Further
Adjusted EBITDAX is $239.1 million for the three months ended
December 31, 2016, and $706.8 million for the year ended December
31, 2015. Our consolidated net debt to LTM Further Adjusted EBITDAX
ratio is 1.5x. Also included in the above reconciliation is the
non-controlling interest attributable to Rice Energy Operating LLC,
as we view our business on a fully diluted basis.
|
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 impairment of gas
properties, impairment of fixed assets, derivative fair value
(gain) loss, net cash receipts on settled derivative instruments,
incentive unit expense, acquisition 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).
|
Three Months
Ended
|
|
Year
Ended
|
(in
thousands)
|
December 31,
2016
|
|
December 31,
2016
|
Reconciliation to
net (loss) attributable to Rice Energy Inc:
|
|
|
|
Net (loss)
attributable to Rice Energy Inc.
|
$
|
(169,889)
|
|
|
$
|
(269,751)
|
|
Impairment of gas
properties
|
20,853
|
|
|
20,853
|
|
Impairment of fixed
assets
|
20,462
|
|
|
23,057
|
|
Loss on derivative
instruments(1)
|
272,775
|
|
|
220,236
|
|
Net cash receipts on
settled derivative instruments(1)
|
34,720
|
|
|
201,071
|
|
Incentive unit
expense
|
6,859
|
|
|
51,761
|
|
Acquisition
expense
|
4,938
|
|
|
6,109
|
|
Other
expense
|
1,383
|
|
|
6,511
|
|
Income tax effect of
reconciling items
|
(116,483)
|
|
|
(200,309)
|
|
Adjusted net
income attributable to Rice Energy Inc.
|
$
|
75,618
|
|
|
$
|
59,538
|
|
|
|
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
Non-GAAP Financial Measure
(Unaudited)
PV-10 is a supplemental non-GAAP financial measure and generally
differs from standardized measure, the most directly comparable
GAAP financial measure, because it does not include the effects of
income taxes on future net revenues. PV-10 reflects the estimated
future gross revenue to be generated from the production of proved
reserves, net of estimated production, future development and
abandonment costs, using prices and costs in effect at the
determination date, before income taxes, and without giving effect
to non-property-related expenses, discounted to a present value
using an annual discount rate of 10% in accordance with the
guidelines of the SEC. We and others in the industry use PV-10 as a
measure to compare the relative size and value of proved reserves
held by companies without regard to the specific tax
characteristics of such entities. Neither PV-10 nor standardized
measure represents an estimate of the fair market value of our
natural gas properties.
The following table presents a reconciliation of the non-GAAP
financial measure of PV-10 at SEC pricing to the standardized
measure of discounted future net cash flows:
|
Year
Ended
|
|
Year
Ended
|
(in
millions)
|
December 31,
2016
|
|
December 31,
2015
|
Reconciliation to
PV-10
|
|
|
|
Standardized measure
of discounted future net cash flows
|
$
|
1,548
|
|
|
$
|
886
|
|
Discounted future net
cash flows for income taxes
|
20
|
|
|
—
|
|
Discounted future net
cash flows before income taxes (PV-10)
|
$
|
1,568
|
|
|
$
|
886
|
|
Rice Energy
Inc.
|
Supplemental
Balance Sheet Data
|
(Unaudited)
|
|
The table below
provides supplemental balance sheet data as of December 31,
2016.
|
|
Supplemental
Balance Sheet data (in thousands)
|
December 31,
2016
|
Cash and cash
equivalents
|
$
|
470,043
|
|
Long-term
debt
|
|
6.25% Senior Notes
Due April 2022 (1)
|
$
|
887,977
|
|
7.25% Senior Notes
Due May 2023 (2)
|
391,504
|
|
Senior Secured
Revolving Credit Facility
|
—
|
|
Midstream Holdings
Revolving Credit Facility
|
53,000
|
|
RMP Revolving Credit
Facility
|
190,000
|
|
Total long-term
debt
|
$
|
1,522,481
|
|
Net debt
|
$
|
1,052,438
|
|
|
|
1.
|
Net of unamortized
deferred finance costs and original discount issuances of $12,023
(in thousands).
|
2.
|
Net of unamortized
deferred finance costs and original discount issuances of $8,496
(in thousands).
|
Rice Energy
Inc.
|
Derivatives
Information
|
(Unaudited)
|
|
The table below
provides data associated with our derivatives as of January 24,
2017 for the periods indicated:
|
|
All-In Fixed
Price Derivatives
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
NYMEX Natural Gas
Swaps:
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
644
|
|
|
665
|
|
|
310
|
|
|
383
|
|
|
45
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
3.28
|
|
|
$
|
3.00
|
|
|
$
|
2.95
|
|
|
$
|
2.96
|
|
|
$
|
2.89
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX Natural Gas
Collars:
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
271
|
|
|
285
|
|
|
170
|
|
|
—
|
|
|
—
|
|
Wtd Average Floor
Price ($/MMBtu)
|
$
|
3.30
|
|
|
$
|
3.15
|
|
|
$
|
3.00
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Wtd Average Call Price
($/MMBtu)
|
$
|
3.64
|
|
|
$
|
3.63
|
|
|
$
|
3.52
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX Natural Gas
Calls:
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
60
|
|
|
120
|
|
|
110
|
|
|
135
|
|
|
—
|
|
Wtd Average Price
($/MMBtu)
|
$
|
3.50
|
|
|
$
|
3.32
|
|
|
$
|
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
(BBtu/d)
|
970
|
|
|
980
|
|
|
500
|
|
|
383
|
|
|
45
|
|
NYMEX Volume Incl
Calls (BBtu/d)
|
1,030
|
|
|
1,100
|
|
|
610
|
|
|
518
|
|
|
45
|
|
Swap, Collar &
Put Floor ($/MMBtu)
|
$
|
3.24
|
|
|
$
|
3.04
|
|
|
$
|
2.96
|
|
|
$
|
2.96
|
|
|
$
|
2.89
|
|
|
|
|
|
|
|
|
|
|
|
WAHA Natural Gas
Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
57
|
|
|
22
|
|
|
9
|
|
|
—
|
|
|
—
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
3.07
|
|
|
$
|
3.01
|
|
|
$
|
3.29
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Dominion Natural Gas
Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
219
|
|
|
257
|
|
|
92
|
|
|
—
|
|
|
—
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
2.24
|
|
|
$
|
2.23
|
|
|
$
|
2.34
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Total Fixed Price
Derivatives
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
1,246
|
|
|
1,259
|
|
|
601
|
|
|
383
|
|
|
45
|
|
Volume Hedged Incl.
Calls (BBtu/d)
|
1,306
|
|
|
1,379
|
|
|
711
|
|
|
518
|
|
|
45
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
3.05
|
|
|
$
|
2.87
|
|
|
$
|
2.87
|
|
|
$
|
2.96
|
|
|
$
|
2.89
|
|
|
|
|
|
|
|
|
|
|
|
Basis Contract
Derivatives
|
|
|
|
|
|
|
|
|
|
Appalachian
Basis
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
331
|
|
|
203
|
|
|
254
|
|
|
312
|
|
|
205
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
(1.09)
|
|
|
$
|
(0.69)
|
|
|
$
|
(0.59)
|
|
|
$
|
(0.55)
|
|
|
$
|
(0.55)
|
|
|
|
|
|
|
|
|
|
|
|
Other Basis
(Waha/MichCon/Gulf Coast)
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
550
|
|
|
300
|
|
|
167
|
|
|
73
|
|
|
20
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
(0.13)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
Total Basis
Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
881
|
|
|
503
|
|
|
421
|
|
|
385
|
|
|
225
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
(0.49)
|
|
|
$
|
(0.36)
|
|
|
$
|
(0.42)
|
|
|
$
|
(0.47)
|
|
|
$
|
(0.51)
|
|
|
|
|
|
|
|
|
|
|
|
WTI Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(Bbls/d)
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wtd Average Swap Price
($/bbl)
|
$
|
44.60
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
NGL Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(Bbls/d)
|
500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wtd Average Swap Price
($/bbl)
|
$
|
15.13
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Logo -
http://photos.prnewswire.com/prnh/20140123/DA51701LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/rice-energy-reports-fourth-quarter-and-full-year-2016-financial-and-operating-results-300412061.html
SOURCE Rice Energy Inc.