CANONSBURG, Pa., Aug. 2, 2017 /PRNewswire/ -- Rice Energy
Inc. (NYSE: RICE) ("Rice Energy") today reported second quarter
2017 financial and operating results. Highlights include:
- Net production averaged 1,354 MMcfe/d, a 6% increase from first
quarter 2017
- Rice Midstream Holdings LLC ("RMH") gathering throughput
averaged 1,175 MDth/d, a 21% increase from first quarter 2017
- Lease operating expense of $0.14
per Mcfe, a 30% decrease relative to first quarter 2017
- Net income attributable to common stockholders of $62.9 million, or $0.30 per diluted share
- Reported Adjusted EBITDAX(1) of $229.5 million
- Exited the quarter with low leverage(1) of 1.5x
- Entered into a definitive merger agreement pursuant to which
EQT Corporation (NYSE: EQT) ("EQT") will acquire all of the
outstanding shares of Rice Energy common stock for total net
consideration of approximately $6.7
billion
- Acquired 16,500 net undeveloped acres in the Marcellus Shale
core primarily in Greene
County, Pennsylvania for $180
million in July 2017
- Entered into a purchase and sale agreement ("PSA") to sell the
Barnett assets producing 76
MMcfe/d for $175 million, subject to
customary closing purchase price adjustments
Commenting on the results, Daniel J.
Rice IV, Chief Executive Officer, said, "We delivered solid
results this quarter, a reflection of the hard work and dedication
of our entire team. We achieved record production and throughput,
significantly reduced our operating costs, increased our core
acreage position by almost 20,000 net acres and divested a non-core
asset. I am proud of our team's collaborative efforts, evidenced by
our strong quarterly results and successful strategic
transactions."
1.
|
Please see
Supplemental "Non-GAAP Financial Measures" for a description of
Adjusted EBITDAX, Further Adjusted EBITDAX and related
reconciliations to the comparable GAAP financial measures. Leverage
is defined as the ratio of net debt to last twelve months Further
Adjusted EBITDAX.
|
2017 Capital Budget Update
We are updating our 2017 drilling and completion capital
("D&C") budget to reflect well costs continuing to trend below
budget driven by operational efficiencies in both the Marcellus and
Utica that offset previously anticipated rising service
costs. Additionally, we are increasing our land capital budget due
to continued success acquiring leasehold and royalties that extend
lateral lengths, lower cost structure and increase single well
returns primarily in Greene County,
Pennsylvania. We decreased our D&C capital budget from
$1,035 million to $965 million, a
decrease of 7%. We increased our land budget from $225 million to $245
million and also expect to spend an additional $115 million on royalty acquisitions. At RMH, we
decreased our capital budget from $315
million to $300 million, a 5% decrease, as capital projects
are trending below budget relative to prior expectations.
Proposed Merger with EQT Corporation
As previously announced, on June 19,
2017, Rice Energy and EQT entered into a definitive merger
agreement, pursuant to which EQT will acquire all of the
outstanding shares of Rice Energy common stock for total net
consideration of approximately $6.7 billion, consisting of
0.37 shares of EQT common stock and $5.30 in cash per
share of Rice Energy common stock. EQT will also obtain Rice
Energy's midstream assets, including a 92% interest in Rice
Midstream GP Holdings LP, which owns 100% of the general partner
incentive distribution rights and 28% of the limited partner
interests in Rice Midstream Partners LP (NYSE: RMP) ("RMP"), and
the retained midstream assets currently held at Rice
Energy. EQT will also assume, retire or refinance
approximately $1.5 billion of net debt and preferred
equity. Subject to the approval by both Rice Energy and EQT
shareholders and certain customary regulatory and other closing
conditions, the transaction is expected to close in the fourth
quarter 2017.
In light of the pending merger with EQT, we have discontinued
providing guidance
and long-term outlook information regarding our results
of operations. In addition, investors are cautioned not to rely on
historical forward-looking statements regarding guidance and long-term outlook
information, which forward-looking statements spoke only as of the
date provided and were subject to the specific risks and
uncertainties that accompanied such forward-looking statements.
Second Quarter
2017 Results
|
|
|
|
|
|
Consolidated
Results
|
|
Three Months
Ended
June 30,
2017
|
|
Six Months
Ended
June 30,
2017
|
|
|
|
|
|
Operating revenues
(in thousands)
|
|
$
|
398,307
|
|
|
$
|
792,113
|
|
|
|
|
|
|
Operating
expense
|
|
(in
thousands)
|
|
($ /
Mcfe)
|
|
(in
thousands)
|
|
($ /
Mcfe)
|
Lease
operating(1)
|
|
$
|
17,485
|
|
|
$
|
0.14
|
|
|
$
|
39,944
|
|
|
$
|
0.17
|
|
Gathering,
compression, transportation
|
|
39,131
|
|
|
0.32
|
|
|
78,557
|
|
|
0.33
|
|
Production taxes and
impact fees
|
|
6,679
|
|
|
0.05
|
|
|
12,832
|
|
|
0.05
|
|
General and
administrative(1)
|
|
32,997
|
|
|
0.27
|
|
|
61,735
|
|
|
0.26
|
|
Depreciation,
depletion and amortization
|
|
145,904
|
|
|
1.18
|
|
|
282,782
|
|
|
1.19
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
(per diluted
share)
|
|
(in
thousands)
|
|
(per diluted
share)
|
Net income
attributable to common stockholders
|
|
$
|
62,869
|
|
|
$
|
0.30
|
|
|
$
|
28,239
|
|
|
$
|
0.14
|
|
Adjusted
EBITDAX(2)
|
|
$
|
229,507
|
|
|
|
|
$
|
473,726
|
|
|
|
Adjusted net
income
|
|
$
|
42,560
|
|
|
$
|
0.20
|
|
|
$
|
72,210
|
|
|
$
|
0.35
|
|
|
|
|
Financial position
(in millions)
|
|
As of June 30,
2017
|
Total
liquidity(3)
|
|
$
|
1,726
|
Cash and cash
equivalents
|
|
$
|
162
|
Long-term
debt
|
|
$
|
1,600
|
Leverage(2)
|
|
1.5x
|
As of June 30, 2017, our liquidity position, excluding
RMP, was $1,726 million comprised of $1,499
million of upstream liquidity ($110 million of cash on hand and $1,389
million revolver availability) and $227
million of RMH liquidity ($39
million of cash on hand and $188 million revolver
availability). Our balance sheet remains strong with low
leverage(2) of 1.5x.
1.
|
Excludes
stock-based compensation expense of $0.2 million and $6.2 million
attributable to lease operating and general and administrative
expenses, respectively, for the three months ended June 30, 2017
and $0.4 million and $11.3 million is included in lease operating
and general and administrative expenses, respectively, for the six
months ended June 30, 2017.
|
2.
|
Please see
Supplemental "Non-GAAP Financial Measures" for a description of
Adjusted EBITDAX, Further Adjusted EBITDAX and related
reconciliations to the comparable GAAP financial measures. Leverage
is defined as the ratio of net debt to last twelve months Further
Adjusted EBITDAX.
|
3.
|
Excludes Rice
Midstream Partners LP.
|
E&P Segment
Results
|
|
Three Months
Ended
June 30,
2017
|
|
Six Months
Ended
June 30, 2017
|
|
|
|
|
|
Production
|
|
|
|
|
Net production
(Bcfe)
|
|
123
|
|
|
238
|
|
Net production
(MMcfe/d)
|
|
1,354
|
|
|
1,313
|
|
Operated
|
|
93%
|
|
|
92%
|
|
|
|
|
|
|
Operating revenues
(in thousands)
|
|
|
|
|
Natural gas, oil &
NGL sales
|
|
$
|
348,892
|
|
|
$
|
705,726
|
|
Other
revenue
|
|
11,350
|
|
|
17,979
|
|
Realized loss on
derivative instruments
|
|
(17,390)
|
|
|
(29,753)
|
|
Total operating
revenues and realized loss on derivative instruments
|
|
$
|
342,852
|
|
|
$
|
693,952
|
|
|
|
|
|
|
Realized Pricing
($/MMBtu)
|
|
|
|
|
NYMEX Henry Hub
price
|
|
$
|
3.18
|
|
|
$
|
3.25
|
|
Average basis
impact
|
|
(0.41)
|
|
|
(0.34)
|
|
FT fuel and
variables
|
|
(0.08)
|
|
|
(0.09)
|
|
Btu uplift
(MMBtu/Mcf)
|
|
0.14
|
|
|
0.14
|
|
Pre-hedge realized
price ($/Mcf)
|
|
2.83
|
|
|
2.96
|
|
Post-hedge realized
price ($/Mcf)
|
|
$
|
2.69
|
|
|
$
|
2.84
|
|
|
|
|
|
|
Operating
expenses
|
|
(in
thousands)
|
|
($ /
Mcfe)
|
|
(in
thousands)
|
|
($ /
Mcfe)
|
Lease
operating(1)
|
|
$
|
17,580
|
|
|
$
|
0.14
|
|
|
$
|
40,039
|
|
|
$
|
0.17
|
|
Gathering and
compression
|
|
53,854
|
|
|
0.44
|
|
|
100,567
|
|
|
0.42
|
|
Transportation
|
|
32,061
|
|
|
0.26
|
|
|
67,243
|
|
|
0.28
|
|
Production taxes and
impact fees
|
|
6,679
|
|
|
0.05
|
|
|
12,832
|
|
|
0.05
|
|
Exploration
|
|
7,106
|
|
|
0.06
|
|
|
11,118
|
|
|
0.05
|
|
General and
administrative(1)
|
|
20,730
|
|
|
0.17
|
|
|
39,950
|
|
|
0.17
|
|
Depreciation,
depletion and amortization
|
|
141,478
|
|
|
1.15
|
|
|
273,317
|
|
|
1.15
|
|
|
|
|
|
|
Operating income (in
thousands)
|
|
$
|
58,441
|
|
|
$
|
50,734
|
|
|
|
|
|
|
E&P capital
expenditures (in millions)
|
|
|
|
|
Operated
Marcellus
|
|
$
|
96
|
|
|
$
|
203
|
|
Operated Ohio
Utica
|
|
69
|
|
|
133
|
|
Non-operated
Utica
|
|
25
|
|
|
34
|
|
Total Drilling &
Completion
|
|
190
|
|
|
370
|
|
Land(2)
|
|
53
|
|
|
104
|
|
Total
|
|
$
|
243
|
|
|
$
|
474
|
|
|
|
|
|
|
Financial position
(in millions)
|
|
|
|
As of June 30,
2017
|
E&P
liquidity
|
|
|
|
$
|
1,499
|
|
Cash and cash
equivalents
|
|
|
|
$
|
110
|
|
Long-term
debt
|
|
|
|
$
|
1,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
Operational Highlights
|
|
Three Months
Ended
June 30,
2017
|
|
|
Marcellus
|
|
Utica
|
|
Barnett
|
|
Total
|
Production
(MMcfe/d)
|
|
885
|
|
393
|
|
76
|
|
1,354
|
|
|
|
|
|
|
|
|
|
Operational
activity (net wells)
|
|
|
|
|
|
|
|
|
Drilled
|
|
22
|
|
4
|
|
—
|
|
26
|
Completed
|
|
9
|
|
7
|
|
—
|
|
16
|
Average lateral
lengths
|
|
9,200
|
|
9,800
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Appalachia net
acres
|
|
190,000
|
|
65,000
|
|
—
|
|
255,000(3)
|
During the quarter, we turned to sales 18 net Marcellus wells
with an average lateral length of 9,200 feet and 7 net operated Utica wells with an average lateral length of
10,500 feet. Our second quarter
development costs per lateral foot were
under budget and averaged $805 in the Marcellus and $1,105 in the Utica for wells drilled and completed.
Subsequent to quarter end, we completed an acquisition of 16,500
net acres in the Marcellus Shale core in Pennsylvania and West Virginia from an undisclosed seller for
$180 million. This acquisition is
highly complementary to our existing position and consists of
11,700 net undeveloped acres in Greene
County, Pennsylvania and 4,800 net undeveloped acres in
Monongalia and Wetzel counties, West Virginia. The leasehold has attractive
terms with an average NRI of 86% and 97% of it is held in fee or
expires beyond 2021. The acquired Greene
County acreage is automatically dedicated to RMP pursuant to
its gas gathering and compression and water services
agreements.
In addition, on July 11, 2017, we
entered into a PSA to sell approximately 36,000 net non-core
Barnett Shale acres to an undisclosed private buyer for
$175 million, subject to customary
closing purchase price adjustments. Included in the transaction is
approximately 76 MMcfe/d of second quarter net production. Proceeds
from the sale will be used for general corporate purposes and the
transaction is expected to close in the third quarter 2017 with an
effective date of January 1,
2017.
1.
|
Excludes
stock-based compensation expense of $0.2 million and $4.9 million
attributable to lease operating and general and administrative
expenses, respectively, for the three months ended June 30, 2017
and $0.4 million and $8.9 million is included in lease operating
and general and administrative expenses, respectively, for the six
months ended June 30, 2017.
|
2.
|
Excludes $37
million and $49 million of royalty purchases for the three and six
months ended June 30, 2017, respectively. During the first six
months of the year, we added approximately 6,000 royalty
acres.
|
3.
|
Excludes 16,500
net Marcellus acres acquired subsequent to quarter
end.
|
RMH Segment
Results
(in thousands,
except volumes)
|
|
Three Months Ended
June 30, 2017
|
|
Six Months Ended
June 30, 2017
|
|
|
|
|
|
Operating volumes
(MDth/d)
|
|
|
|
|
Gathering
volumes
|
|
|
|
|
Affiliate
|
|
452
|
|
|
457
|
|
Third-party
|
|
723
|
|
|
616
|
|
Total
|
|
1,175
|
|
|
1,073
|
|
|
|
|
|
|
Compression
volumes
|
|
|
|
|
|
Affiliate
|
|
216
|
|
|
256
|
|
Third-party
|
|
230
|
|
|
246
|
|
Total
|
|
446
|
|
|
502
|
|
Operating
revenues
|
|
|
|
|
Gathering
|
|
$
|
29,334
|
|
|
$
|
52,874
|
|
Compression
|
|
2,613
|
|
|
5,918
|
|
Total
|
|
31,947
|
|
|
58,792
|
|
|
|
|
|
|
Total operating
expenses
|
|
11,847
|
|
|
18,858
|
|
Operating
income
|
|
$
|
20,100
|
|
|
$
|
39,934
|
|
|
|
|
|
|
Capital expenditures
(in millions)
|
|
$
|
44
|
|
|
$
|
113
|
|
|
|
|
|
|
LP + IDR cash
distributions received from RMP(1) (in
millions)
|
|
$
|
9
|
|
|
$
|
17
|
|
|
|
|
|
|
Financial position
(in millions)
|
|
|
|
As of June 30,
2017
|
RMH
liquidity
|
|
|
|
$
|
227
|
|
Cash and cash
equivalents
|
|
|
|
$
|
39
|
|
Revolving credit
facility
|
|
|
|
$
|
113
|
|
|
|
|
|
|
|
Acreage
dedication
|
|
|
|
172,000
|
|
Third-party
|
|
|
|
72%
|
|
Second quarter gathering throughput
averaged 1,175 MDth/d, which consisted of 921 MDth/d related to the
operations of Rice Olympus Midstream ("ROM") and 523 MDth/d related
to the operations of Strike Force Midstream, offset by an
elimination of 270 MDth/d that is related to operations of both ROM
and Strike Force Midstream.
1.
|
Net of 91.75%
ownership interest.
|
RMP Segment
Results
(in thousands,
except volumes)
|
|
Three Months
Ended
June 30,
2017
|
|
Six Months
Ended
June 30, 2017
|
|
|
|
|
|
Operating volumes
(MDth/d)
|
|
|
|
|
Gathering
volumes
|
|
|
|
|
Affiliate
|
|
1,144
|
|
|
1,074
|
|
Third-party
|
|
216
|
|
|
224
|
|
Total
|
|
1,360
|
|
|
1,298
|
|
|
|
|
|
|
Compression
volumes
|
|
|
|
|
|
|
Affiliate
|
|
676
|
|
|
635
|
|
Third-party
|
|
216
|
|
|
224
|
|
Total
|
|
892
|
|
|
859
|
|
|
|
|
|
|
Water services assets
(MMGal)
|
|
|
|
|
|
|
Pennsylvania
|
|
149
|
|
|
373
|
|
Ohio
|
|
275
|
|
|
416
|
|
Total
|
|
424
|
|
|
789
|
|
|
|
|
|
|
Operating
revenues
|
|
|
|
|
Gathering
|
|
$
|
40,314
|
|
|
$
|
76,534
|
|
Compression
|
|
6,270
|
|
|
12,052
|
|
Water
|
|
25,793
|
|
|
46,541
|
|
Total
|
|
72,377
|
|
|
135,127
|
|
|
|
|
|
|
Total operating
expenses
|
|
25,364
|
|
|
47,518
|
|
Operating
income
|
|
47,013
|
|
|
87,609
|
|
|
|
|
|
|
Capital expenditures
(in millions)
|
|
$
|
41
|
|
|
$
|
73
|
|
|
|
|
|
|
Financial position
(in millions)
|
|
|
|
As of June 30,
2017
|
RMP
liquidity
|
|
|
|
$
|
656
|
|
Cash and cash
equivalents
|
|
|
|
$
|
12
|
|
Revolving credit
facility
|
|
|
|
$
|
206
|
|
|
|
|
|
|
Acreage
dedication
|
|
|
|
221,000
|
|
Third-party
|
|
|
|
13%
|
|
On July 21, 2017, RMP declared a
quarterly distribution of $0.2711 per
unit for the second quarter 2017, an increase of $0.0103 per unit, or 4%, relative to first
quarter 2017. The distribution will be payable on August 17,
2017 to unitholders of record as of August 8, 2017.
RMP's results were released today and are available at
www.ricemidstream.com.
Conference Call
Rice Energy will host a conference call on August 3, 2017 at 10:00
a.m. Eastern Time (9:00 a.m. Central
Time) to discuss second quarter 2017 results. The conference
format will only include prepared remarks, given the restrictions
related to discussing the signed merger agreement with EQT.
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 incorporated
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, the terms, timing and completion of any
acquisitions or divestitures, 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.
This release does not constitute an offer to buy or sell or the
solicitation of an offer to buy or sell any securities or a
solicitation of any vote or approval. This communication relates to
a proposed business combination between EQT and Rice.
In connection with the proposed transaction, EQT has filed with
the Securities and Exchange Commission (the "SEC") a registration
statement on Form S-4 on July 27,
2017, that includes a joint proxy statement of EQT and Rice
and also constitutes a prospectus of EQT. Each of EQT and Rice also
plan to file other relevant documents with the SEC regarding the
proposed transactions. No offering of securities shall be made
except by means of a prospectus meeting the requirements of Section
10 of the U.S. Securities Act of 1933, as amended. The definitive
joint proxy statement/prospectus(es) for EQT and/or Rice will be
mailed to shareholders of EQT and/or Rice, as applicable.
INVESTORS AND SECURITY HOLDERS OF EQT AND RICE ARE URGED TO READ
THE PROXY STATEMENT(S), REGISTRATION STATEMENT(S), PROXY
STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT MAY BE FILED WITH THE
SEC CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION.
Investors and security holders will be able to obtain free
copies of these documents (if and when available) and other
documents containing important information about EQT and Rice, once
such documents are filed with the SEC through the website
maintained by the SEC at www.sec.gov. Copies of the documents filed
with the SEC by EQT will be available free of charge on EQT's
website at www.eqt.com or by directing a request to Investor
Relations, EQT Corporation, EQT Plaza, 625 Liberty Avenue,
Pittsburgh, Pennsylvania
15222-3111, Tel. No. (412) 553-5700. Copies of the documents filed
with the SEC by Rice will be available free of charge on Rice's
website at www.riceenergy.com or by directing a request to
Investor Relations, Rice Energy Inc., 2200 Rice Drive, Canonsburg, Pennsylvania 15317, Tel. No. (724)
271-7200.
EQT, Rice and certain of their respective directors and
executive officers may be deemed to be participants in the
solicitation of proxies in respect of the proposed transaction.
Information about the directors and executive officers of Rice is
set forth in Rice's proxy statement for its 2017 annual meeting of
shareholders, which was filed with the SEC on April 17, 2017. Information about the directors
and executive officers of EQT is set forth in its proxy statement
for its 2017 annual meeting, which was filed with the SEC on
March 6, 2017. These documents may be
obtained free of charge from the sources indicated above.
Other information regarding the participants in the proxy
solicitations and a description of their direct and indirect
interests, by security holdings or otherwise, will be contained in
the joint proxy statement/prospectus and other relevant materials
to be filed with the SEC when such materials become available.
Investors should read the joint proxy statement/prospectus
carefully when it becomes available before making any voting or
investment decisions. You may obtain free copies of these documents
from EQT or Rice using the sources indicated above.
Rice Energy
Inc.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
(in thousands,
except share data)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Operating
revenues:
|
|
|
|
|
|
|
|
Natural gas, oil and
natural gas liquids sales
|
$
|
348,892
|
|
|
$
|
122,312
|
|
|
$
|
705,726
|
|
|
$
|
234,754
|
|
Gathering,
compression and water services
|
38,065
|
|
|
23,728
|
|
|
68,408
|
|
|
48,280
|
|
Other
revenue
|
11,350
|
|
|
9,958
|
|
|
17,979
|
|
|
12,906
|
|
Total operating
revenues
|
398,307
|
|
|
155,998
|
|
|
792,113
|
|
|
295,940
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Lease
operating
|
17,485
|
|
|
8,913
|
|
|
39,944
|
|
|
19,888
|
|
Gathering,
compression and transportation
|
39,131
|
|
|
27,169
|
|
|
78,557
|
|
|
55,301
|
|
Production taxes and
impact fees
|
6,679
|
|
|
2,659
|
|
|
12,832
|
|
|
4,310
|
|
Exploration
|
7,106
|
|
|
5,548
|
|
|
11,118
|
|
|
6,538
|
|
Midstream operation
and maintenance
|
8,326
|
|
|
4,596
|
|
|
14,962
|
|
|
14,144
|
|
Incentive unit
expense
|
4,800
|
|
|
14,840
|
|
|
7,683
|
|
|
38,982
|
|
Acquisition
expense
|
2,408
|
|
|
84
|
|
|
2,615
|
|
|
556
|
|
Stock compensation
expense
|
6,411
|
|
|
6,232
|
|
|
11,701
|
|
|
11,042
|
|
Impairment of gas
properties
|
—
|
|
|
—
|
|
|
92,355
|
|
|
—
|
|
Impairment of fixed
assets
|
—
|
|
|
—
|
|
|
—
|
|
|
2,595
|
|
General and
administrative
|
32,997
|
|
|
23,123
|
|
|
61,735
|
|
|
43,356
|
|
Depreciation,
depletion and amortization
|
145,904
|
|
|
84,752
|
|
|
282,782
|
|
|
163,937
|
|
Amortization of
intangible assets
|
406
|
|
|
403
|
|
|
808
|
|
|
811
|
|
Other
expense
|
13,207
|
|
|
11,457
|
|
|
19,365
|
|
|
15,648
|
|
Total operating
expenses
|
284,860
|
|
|
189,776
|
|
|
636,457
|
|
|
377,108
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
113,447
|
|
|
(33,778)
|
|
|
155,656
|
|
|
(81,168)
|
|
Interest
expense
|
(27,269)
|
|
|
(24,802)
|
|
|
(54,292)
|
|
|
(49,323)
|
|
Other
income
|
273
|
|
|
2,549
|
|
|
453
|
|
|
2,762
|
|
Gain (loss) on
derivative instruments
|
103,558
|
|
|
(201,555)
|
|
|
88,779
|
|
|
(131,376)
|
|
Loss on embedded
derivatives
|
(15,417)
|
|
|
—
|
|
|
(15,417)
|
|
|
—
|
|
Amortization of
deferred financing costs
|
(3,426)
|
|
|
(1,618)
|
|
|
(6,078)
|
|
|
(3,169)
|
|
Income (loss) before
income taxes
|
171,166
|
|
|
(259,204)
|
|
|
169,101
|
|
|
(262,274)
|
|
Income tax (expense)
benefit
|
(33,917)
|
|
|
120,496
|
|
|
(33,341)
|
|
|
126,871
|
|
Net income
(loss)
|
137,249
|
|
|
(138,708)
|
|
|
135,760
|
|
|
(135,403)
|
|
Less: Net income
attributable to noncontrolling interests
|
(53,724)
|
|
|
(17,977)
|
|
|
(78,533)
|
|
|
(38,870)
|
|
Net income (loss)
attributable to Rice Energy Inc.
|
83,525
|
|
|
(156,685)
|
|
|
57,227
|
|
|
(174,273)
|
|
Less: Preferred
dividends and accretion of redeemable noncontrolling
interests
|
(20,656)
|
|
|
(7,944)
|
|
|
(28,988)
|
|
|
(11,402)
|
|
Net income (loss)
attributable to Rice Energy Inc. common stockholders
|
$
|
62,869
|
|
|
$
|
(164,629)
|
|
|
$
|
28,239
|
|
|
$
|
(185,675)
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share—basic
|
$
|
0.31
|
|
|
$
|
(1.07)
|
|
|
$
|
0.14
|
|
|
$
|
(1.28)
|
|
Earnings (loss) per
share—diluted
|
$
|
0.30
|
|
|
$
|
(1.07)
|
|
|
$
|
0.14
|
|
|
$
|
(1.28)
|
|
Rice Energy
Inc.
|
Segment Results of
Operations
|
(Unaudited)
|
Exploration and
Production Segment
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
(in thousands,
except volumes)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Operating
volumes:
|
|
|
|
|
|
|
|
Natural gas
production (MMcf)
|
121,942
|
|
|
68,702
|
|
|
235,133
|
|
|
129,744
|
|
Oil and NGL
production (MBbls)
|
208
|
|
|
41
|
|
|
431
|
|
|
97
|
|
Total production
(MMcfe)
|
123,189
|
|
|
68,946
|
|
|
237,719
|
|
|
130,325
|
|
|
|
|
|
|
|
|
|
Operating
results:
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
Natural gas, oil and
NGL sales
|
$
|
348,892
|
|
|
$
|
122,312
|
|
|
$
|
705,726
|
|
|
$
|
234,754
|
|
Other
revenue
|
11,350
|
|
|
9,958
|
|
|
17,979
|
|
|
12,906
|
|
Total operating
revenues
|
360,242
|
|
|
132,270
|
|
|
723,705
|
|
|
247,660
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Lease
operating
|
17,580
|
|
|
8,913
|
|
|
40,039
|
|
|
19,888
|
|
Gathering,
compression and transportation
|
85,915
|
|
|
51,307
|
|
|
167,810
|
|
|
99,510
|
|
Production taxes and
impact fees
|
6,679
|
|
|
2,659
|
|
|
12,832
|
|
|
4,310
|
|
Exploration
|
7,106
|
|
|
5,548
|
|
|
11,118
|
|
|
6,538
|
|
Incentive unit
expense
|
4,664
|
|
|
14,141
|
|
|
7,464
|
|
|
37,012
|
|
Acquisition
costs
|
1,356
|
|
|
—
|
|
|
1,563
|
|
|
—
|
|
Impairment of gas
properties
|
—
|
|
|
—
|
|
|
92,355
|
|
|
—
|
|
Impairment of fixed
assets
|
—
|
|
|
—
|
|
|
—
|
|
|
2,595
|
|
Stock compensation
expense
|
5,083
|
|
|
3,347
|
|
|
9,268
|
|
|
5,982
|
|
General and
administrative
|
20,730
|
|
|
15,191
|
|
|
39,950
|
|
|
29,092
|
|
Depreciation,
depletion and amortization
|
141,478
|
|
|
79,515
|
|
|
273,317
|
|
|
154,471
|
|
Other
expense
|
11,210
|
|
|
11,097
|
|
|
17,255
|
|
|
15,500
|
|
Total operating
expenses
|
301,801
|
|
|
191,718
|
|
|
672,971
|
|
|
374,898
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
58,441
|
|
|
$
|
(59,448)
|
|
|
$
|
50,734
|
|
|
$
|
(127,238)
|
|
|
|
|
|
|
|
|
|
Average costs per
Mcfe:
|
|
|
|
|
|
|
|
Lease
operating
|
$
|
0.14
|
|
|
$
|
0.13
|
|
|
$
|
0.17
|
|
|
$
|
0.15
|
|
Gathering and
compression
|
0.44
|
|
|
0.42
|
|
|
0.42
|
|
|
0.41
|
|
Transportation
|
0.26
|
|
|
0.32
|
|
|
0.28
|
|
|
0.35
|
|
Production taxes and
impact fees
|
0.05
|
|
|
0.04
|
|
|
0.05
|
|
|
0.03
|
|
Exploration
|
0.06
|
|
|
0.08
|
|
|
0.05
|
|
|
0.05
|
|
Incentive unit
expense
|
0.04
|
|
|
0.21
|
|
|
0.03
|
|
|
0.28
|
|
Stock
compensation
|
0.04
|
|
|
0.05
|
|
|
0.04
|
|
|
0.05
|
|
General and
administrative
|
0.17
|
|
|
0.22
|
|
|
0.17
|
|
|
0.22
|
|
Depreciation,
depletion and amortization
|
1.15
|
|
|
1.15
|
|
|
1.15
|
|
|
1.19
|
|
Rice Midstream
Holdings Segment
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
(in thousands,
except volumes)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Operating
volumes:
|
|
|
|
|
|
|
|
|
Gathering volumes
(MDth/d)
|
|
1,175
|
|
|
658
|
|
|
1,073
|
|
|
556
|
|
Compression volumes
(MDth/d)
|
|
446
|
|
|
461
|
|
|
502
|
|
|
412
|
|
|
|
|
|
|
|
|
|
|
Operating
results:
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
Gathering
revenues
|
|
$
|
29,334
|
|
|
$
|
9,240
|
|
|
$
|
52,874
|
|
|
$
|
17,776
|
|
Compression
revenues
|
|
2,613
|
|
|
2,633
|
|
|
5,918
|
|
|
4,748
|
|
Total operating
revenues
|
|
31,947
|
|
|
11,873
|
|
|
58,792
|
|
|
22,524
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Midstream operation
and maintenance
|
|
991
|
|
|
457
|
|
|
1,738
|
|
|
1,458
|
|
Incentive unit
expense
|
|
136
|
|
|
699
|
|
|
219
|
|
|
1,970
|
|
Acquisition
expense
|
|
556
|
|
|
84
|
|
|
556
|
|
|
484
|
|
Stock compensation
expense
|
|
1,201
|
|
|
1,751
|
|
|
2,174
|
|
|
2,940
|
|
General and
administrative
|
|
5,196
|
|
|
3,325
|
|
|
9,007
|
|
|
5,900
|
|
Depreciation,
depletion and amortization
|
|
1,790
|
|
|
1,556
|
|
|
3,187
|
|
|
2,645
|
|
Other
expense
|
|
1,977
|
|
|
—
|
|
|
1,977
|
|
|
—
|
|
Total operating
expenses
|
|
11,847
|
|
|
7,872
|
|
|
18,858
|
|
|
15,397
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
20,100
|
|
|
$
|
4,001
|
|
|
$
|
39,934
|
|
|
$
|
7,127
|
|
Rice Midstream
Partners Segment
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
(in thousands,
except volumes)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Operating
volumes:
|
|
|
|
|
|
|
|
|
Gathering volumes
(MDth/d)
|
|
1,360
|
|
|
934
|
|
|
1,298
|
|
|
885
|
|
Compression volumes
(MDth/d)
|
|
892
|
|
|
564
|
|
|
859
|
|
|
358
|
|
Water services
volumes (MMGal)
|
|
424
|
|
|
335
|
|
|
789
|
|
|
797
|
|
|
|
|
|
|
|
|
|
|
Operating
results:
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
Gathering
revenues
|
|
$
|
40,314
|
|
|
$
|
26,249
|
|
|
$
|
76,534
|
|
|
$
|
51,934
|
|
Compression
revenues
|
|
6,270
|
|
|
3,787
|
|
|
12,052
|
|
|
4,902
|
|
Water services
revenues
|
|
25,793
|
|
|
16,511
|
|
|
46,541
|
|
|
44,254
|
|
Total operating
revenues
|
|
72,377
|
|
|
46,547
|
|
|
135,127
|
|
|
101,090
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Midstream operation
and maintenance
|
|
9,701
|
|
|
4,187
|
|
|
17,880
|
|
|
12,733
|
|
Acquisition
expense
|
|
496
|
|
|
—
|
|
|
496
|
|
|
73
|
|
Stock compensation
expense
|
|
127
|
|
|
1,134
|
|
|
259
|
|
|
2,119
|
|
General and
administrative
|
|
7,071
|
|
|
4,607
|
|
|
12,778
|
|
|
8,363
|
|
Depreciation,
depletion and amortization
|
|
7,543
|
|
|
6,855
|
|
|
15,164
|
|
|
12,225
|
|
Amortization of
intangible assets
|
|
406
|
|
|
403
|
|
|
808
|
|
|
811
|
|
Other
expense
|
|
20
|
|
|
361
|
|
|
133
|
|
|
149
|
|
Total operating
expenses
|
|
25,364
|
|
|
17,547
|
|
|
47,518
|
|
|
36,473
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
47,013
|
|
|
$
|
29,000
|
|
|
$
|
87,609
|
|
|
$
|
64,617
|
|
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).
(in
thousands)
|
Three Months
Ended
June 30, 2017
|
|
Twelve Months
Ended June 30,
2017
|
Adjusted EBITDAX
reconciliation to net income:
|
|
|
|
Net income
|
$
|
137,249
|
|
|
$
|
22,344
|
|
Interest
expense
|
27,269
|
|
|
104,596
|
|
Depreciation,
depletion and amortization
|
145,904
|
|
|
487,300
|
|
Amortization of
deferred financing costs
|
3,426
|
|
|
10,454
|
|
Amortization of
intangible assets
|
406
|
|
|
1,631
|
|
Acquisition
expense
|
2,408
|
|
|
8,168
|
|
Impairment of gas
properties
|
—
|
|
|
113,208
|
|
Impairment of fixed
assets
|
—
|
|
|
20,462
|
|
(Gain) loss on
derivative instruments (1)
|
(103,558)
|
|
|
81
|
|
Net cash (payments)
receipts on settled derivative instruments
(1)
|
(17,390)
|
|
|
39,863
|
|
Non-cash stock
compensation expense
|
6,411
|
|
|
33,605
|
|
Non-cash incentive
unit expense
|
4,800
|
|
|
20,462
|
|
Income tax
expense
|
33,917
|
|
|
18,000
|
|
Exploration
expense
|
7,106
|
|
|
19,739
|
|
Loss on embedded
derivatives
|
15,417
|
|
|
15,417
|
|
Other
expense
|
—
|
|
|
6,508
|
|
Non-controlling
interest attributable to midstream entities
|
(33,858)
|
|
|
(98,236)
|
|
Adjusted
EBITDAX(2)
|
$
|
229,507
|
|
|
$
|
823,602
|
|
|
|
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 $33.9 million and $17.1 million, respectively, for the
three months ended June 30, 2017 and $98.2 million and $56.4
million, respectively, for the twelve months ended June 30, 2017.
When including these impacts, our Further Adjusted EBITDAX is
$280.5 million and $978.2 million for the three and twelve months
ended June 30, 2017, respectively. Our consolidated net debt to
last twelve months 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 to the GAAP financial
measure of net income.
(in
thousands)
|
Three Months
Ended
June 30, 2017
|
|
Six Months
Ended
June 30, 2017
|
Reconciliation to
net income attributable to Rice Energy Inc:
|
|
|
|
Net income
|
$
|
137,249
|
|
|
$
|
135,760
|
|
Non-controlling
interest attributable to midstream entities
|
(33,858)
|
|
|
(61,692)
|
|
Impairment of gas
properties
|
—
|
|
|
92,355
|
|
Gain on derivative
instruments (1)
|
(103,558)
|
|
|
(88,779)
|
|
Net cash payments on
settled derivative instruments (1)
|
(17,390)
|
|
|
(29,753)
|
|
Incentive unit
expense
|
4,800
|
|
|
7,683
|
|
Loss on embedded
derivatives
|
15,417
|
|
|
15,417
|
|
Income tax effect of
reconciling items
|
39,900
|
|
|
1,219
|
|
Adjusted net
income attributable to Rice Energy
Inc.(2)
|
$
|
42,560
|
|
|
$
|
72,210
|
|
|
|
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.
|
2.
|
Excluded from the
above Adjusted net income reconciliation is the impact of
non-controlling interest of $33.9 million and $61.7 million for the
three and six months ended June 30, 2017,
respectively.
|
Rice Energy Inc.
Supplemental Non-GAAP Financial Measure
Finding and development cost
("F&D") 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 F&D as gross drilling and completion
capital expenditures divided by gross estimated ultimate
recovery.
Management believes that F&D 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 to other oil and gas
producing companies.
Rice Energy
Inc.
|
Supplemental
Balance Sheet Data
|
(Unaudited)
|
|
The table below
provides supplemental balance sheet data as of June 30,
2017.
|
|
(in
thousands)
|
June 30,
2017
|
Cash and cash
equivalents
|
$
|
161,540
|
|
Long-term
debt
|
|
Senior Secured
Revolving Credit Facility
|
—
|
|
6.25% Senior Notes
Due April 2022(1)
|
$
|
889,104
|
|
7.25% Senior Notes
Due May 2023(2)
|
392,175
|
|
Midstream Holdings
Revolving Credit Facility
|
112,500
|
|
RMP Revolving Credit
Facility
|
206,000
|
|
Total long-term
debt
|
$
|
1,599,779
|
|
Net debt
|
$
|
1,438,239
|
|
|
|
1.
|
Net of unamortized
deferred finance costs and original discount issuances of $10,896
(in thousands).
|
2.
|
Net of unamortized
deferred finance costs and original discount issuances of $7,825
(in thousands).
|
Rice Energy
Inc.
|
Derivatives
Information
|
(Unaudited)
|
|
This table provides
data associated with our derivatives as of July 20, 2017 for the
periods indicated:
|
|
All-In Fixed
Price Derivatives
|
Rem.
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
NYMEX Natural Gas
Swaps:
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
724
|
|
|
665
|
|
|
445
|
|
|
570
|
|
|
338
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
3.22
|
|
|
$
|
3.00
|
|
|
$
|
2.92
|
|
|
$
|
2.92
|
|
|
$
|
2.85
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX Natural Gas
Collars:
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
290
|
|
|
285
|
|
|
190
|
|
|
—
|
|
|
—
|
|
Wtd Average Floor
Price ($/MMBtu)
|
$
|
3.08
|
|
|
$
|
3.15
|
|
|
$
|
3.00
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Wtd Average Call Price
($/MMBtu)
|
$
|
3.73
|
|
|
$
|
3.63
|
|
|
$
|
3.50
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX Natural Gas
Calls:
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
90
|
|
|
120
|
|
|
130
|
|
|
135
|
|
|
20
|
|
Wtd Average Price
($/MMBtu)
|
$
|
3.54
|
|
|
$
|
3.32
|
|
|
$
|
3.51
|
|
|
$
|
3.47
|
|
|
$
|
3.70
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX Natural
Gas Deferred Puts:
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
90
|
|
|
30
|
|
|
20
|
|
|
—
|
|
|
—
|
|
Wtd Avg. Net Floor
Price ($/MMBtu)
|
$
|
2.60
|
|
|
$
|
2.77
|
|
|
$
|
2.80
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX Volume Excl
Calls (BBtu/d)
|
1,104
|
|
|
980
|
|
|
655
|
|
|
570
|
|
|
338
|
|
NYMEX Volume Incl
Calls (BBtu/d)
|
1,194
|
|
|
1,100
|
|
|
785
|
|
|
705
|
|
|
358
|
|
Swap, Collar &
Put Floor ($/MMBtu)
|
$
|
3.13
|
|
|
$
|
3.04
|
|
|
$
|
2.94
|
|
|
$
|
2.92
|
|
|
$
|
2.85
|
|
|
|
|
|
|
|
|
|
|
|
Waha Natural Gas
Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
68
|
|
|
22
|
|
|
9
|
|
|
—
|
|
|
—
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
3.05
|
|
|
$
|
3.01
|
|
|
$
|
3.29
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Dominion Natural Gas
Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
235
|
|
|
257
|
|
|
92
|
|
|
—
|
|
|
—
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
2.21
|
|
|
$
|
2.23
|
|
|
$
|
2.34
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Total Fixed Price
Derivatives
|
|
|
|
|
|
|
|
|
|
Volume Hedged Excl.
Calls (BBtu/d)
|
1,406
|
|
|
1,259
|
|
|
756
|
|
|
570
|
|
|
338
|
|
Volume Hedged Incl.
Calls (BBtu/d)
|
1,496
|
|
|
1,379
|
|
|
886
|
|
|
705
|
|
|
358
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
2.97
|
|
|
$
|
2.87
|
|
|
$
|
2.87
|
|
|
$
|
2.92
|
|
|
$
|
2.85
|
|
|
|
|
|
|
|
|
|
|
|
Basis Contract
Derivatives
|
|
|
|
|
|
|
|
|
|
Appalachian
Basis
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
550
|
|
|
361
|
|
|
450
|
|
|
515
|
|
|
340
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
(1.07)
|
|
|
$
|
(0.65)
|
|
|
$
|
(0.58)
|
|
|
$
|
(0.56)
|
|
|
$
|
(0.54)
|
|
|
|
|
|
|
|
|
|
|
|
Other Basis
(MichCon/Gulf Coast)
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
494
|
|
|
302
|
|
|
167
|
|
|
73
|
|
|
20
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
(0.12)
|
|
|
$
|
(0.13)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
Total Basis
Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(BBtu/d)
|
1,044
|
|
|
663
|
|
|
617
|
|
|
588
|
|
|
360
|
|
Wtd Average Swap Price
($/MMBtu)
|
$
|
(0.62)
|
|
|
$
|
(0.42)
|
|
|
$
|
(0.47)
|
|
|
$
|
(0.51)
|
|
|
$
|
(0.51)
|
|
|
|
|
|
|
|
|
|
|
|
WTI Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(Bbls/d)
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wtd Average Swap Price
($/bbl)
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
NGL Swaps
|
|
|
|
|
|
|
|
|
|
Volume Hedged
(Bbls/d)
|
496
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wtd Average Swap Price
($/bbl)
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Logo -
http://mma.prnewswire.com/media/324381/rice_energy_inc_.jpg
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content:http://www.prnewswire.com/news-releases/rice-energy-reports-second-quarter-2017-results-and-updates-2017-capital-budget-300498682.html
SOURCE Rice Energy Inc.