Guarantor Financial Information | Guarantor Financial Information On April 25, 2014 , the Company issued $900.0 million in aggregate principal amount of the 2022 Notes and on March 26, 2015 , the Company issued $400.0 million in aggregate principal amount of the 2023 Notes. The obligations under the Notes are fully and unconditionally guaranteed by the Guarantors, subject to release provisions described in Note 3. The Company’s subsidiaries that constitute its Midstream segment, including the Partnership, are unrestricted subsidiaries under the indentures governing the Notes and consequently are not Guarantors. In accordance with positions established by the SEC, the following shows separate financial information with respect to the Company, the Guarantors and the non-guarantor subsidiaries. The principal elimination entries eliminate investment in subsidiaries and certain intercompany balances and transactions. Balance Sheet as of December 31, 2015 (in thousands) Parent Guarantors Non-Guarantors Eliminations Consolidated Assets Current assets: Cash $ 78,474 $ 57,800 $ 15,627 $ — $ 151,901 Accounts receivable 147 140,493 14,174 — 154,814 Receivable from affiliate 27,670 — 4,501 (32,171 ) — Prepaid expenses, deposits and other 4,377 817 294 — 5,488 Derivative instruments 47,262 139,698 — — 186,960 Deferred tax assets — — — — — Total current assets 157,930 338,808 34,596 (32,171 ) 499,163 Gas collateral account — 3,995 82 — 4,077 Investments in subsidiaries 2,378,293 113,268 — (2,491,561 ) — Property, plant and equipment, net 21,442 2,382,878 865,043 (26,232 ) 3,243,131 Deferred financing costs, net 25,329 — 4,915 — 30,244 Goodwill — — 39,142 — 39,142 Intangible assets, net — — 46,159 — 46,159 Other non-current assets 32,590 76,025 — — 108,615 Total assets $ 2,615,584 $ 2,914,974 $ 989,937 $ (2,549,964 ) $ 3,970,531 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 4,178 $ 48,191 $ 31,184 $ — $ 83,553 Royalties payables — 40,572 — — 40,572 Accrued capital expenditures — 45,240 34,507 — 79,747 Leasehold payables — 17,338 — — 17,338 Other accrued liabilities 36,287 71,649 3,367 (32,171 ) 79,132 Total current liabilities 40,465 222,990 69,058 (32,171 ) 300,342 Long-term liabilities: Long-term debt 1,297,222 — 160,000 — 1,457,222 Leasehold payable — 6,289 — — 6,289 Deferred tax liabilities 47,667 299,741 19,911 (95,331 ) 271,988 Other long-term liabilities 19,432 7,661 3,129 — 30,222 Total liabilities 1,404,786 536,681 252,098 (127,502 ) 2,066,063 Stockholders’ equity before noncontrolling interest 1,210,798 2,378,293 113,268 (2,422,462 ) 1,279,897 Noncontrolling interests in consolidated subsidiaries — — 624,571 — 624,571 Total liabilities and stockholders’ equity $ 2,615,584 $ 2,914,974 $ 989,937 $ (2,549,964 ) $ 3,970,531 Balance Sheet as of December 31, 2014 (in thousands) Parent Guarantors Non-Guarantors Eliminations Consolidated Assets Current assets: Cash $ 181,835 $ 41,934 $ 32,361 $ — $ 256,130 Accounts receivable 1,773 196,974 1,153 — 199,900 Receivable from affiliates 634 55 2,198 (2,799 ) 88 Prepaid expenses deposits and other 1,296 1,702 341 — 3,339 Derivative instruments 47,291 85,743 — — 133,034 Total current assets 232,829 326,408 36,053 (2,799 ) 592,491 Gas collateral account — 3,995 — — 3,995 Investments in subsidiaries 2,177,895 86,148 — (2,264,043 ) — Property, plant and equipment, net 10,348 1,986,856 464,127 — 2,461,331 Deferred financing costs, net 20,081 — 5,022 — 25,103 Goodwill — 294,908 39,142 — 334,050 Intangible assets, net — — 47,791 — 47,791 Derivative instruments 8,290 54,898 — — 63,188 Total assets $ 2,449,443 $ 2,753,213 $ 592,135 $ (2,266,842 ) $ 3,527,949 Liabilities and stockholders’ equity Current liabilities: Current portion of long-term debt $ — $ 680 $ — $ — $ 680 Accounts payable 19,231 101,132 31,966 — 152,329 Royalties payables — 37,172 — — 37,172 Accrued capital expenditures 1,515 89,858 16,917 — 108,290 Leasehold payables — 30,702 — — 30,702 Deferred tax liabilities 54,688 39,197 — (39,197 ) 54,688 Other accrued liabilities 26,027 27,502 2,086 (2,801 ) 52,814 Total current liabilities 101,461 326,243 50,969 (41,998 ) 436,675 Long-term liabilities: Long-term debt 900,000 — — — 900,000 Leasehold payable — 4,279 — — 4,279 Deferred tax liabilities 12,497 237,155 10,660 (51,094 ) 209,218 Other long-term liabilities 3,068 7,641 1,900 — 12,609 Total liabilities 1,017,026 575,318 63,529 (93,092 ) 1,562,781 Stockholders’ equity before noncontrolling interest 1,432,417 2,177,895 86,148 (2,173,750 ) 1,522,710 Noncontrolling interest in consolidated subsidiaries — — 442,458 — 442,458 Total liabilities and stockholders’ equity $ 2,449,443 $ 2,753,213 $ 592,135 $ (2,266,842 ) $ 3,527,949 Statement of Operations for the Year Ended December 31, 2015 (in thousands) Parent Guarantors Non-Guarantors Eliminations Consolidated Operating revenues: Natural gas, oil and natural gas liquids (NGL) sales $ — $ 446,515 $ — $ — $ 446,515 Firm transportation sales, net — 3,450 — — 3,450 Gathering, compression and water services — — 141,823 (92,644 ) 49,179 Other revenue — 2,997 — — 2,997 Total operating revenues — 452,962 141,823 (92,644 ) 502,141 Operating expenses: Lease operating — 44,356 — — 44,356 Gathering, compression and transportation — 150,015 — (65,308 ) 84,707 Production taxes and impact fees — 7,609 — — 7,609 Exploration — 3,137 — — 3,137 Midstream operation and maintenance — — 16,988 — 16,988 Incentive unit expense — 33,873 2,224 — 36,097 Impairment of gas properties — 18,250 — — 18,250 Impairment of goodwill — 294,908 — — 294,908 General and administrative — 78,592 24,446 — 103,038 Depreciation, depletion and amortization — 304,703 19,185 (1,104 ) 322,784 Acquisition expense 4 103 1,128 — 1,235 Amortization of intangible assets — — 1,632 — 1,632 Gain from sale of interest in gas properties — (953 ) — — (953 ) Other expense — 6,028 492 — 6,520 Total operating expenses 4 940,621 66,095 (66,412 ) 940,308 Operating income (loss) (4 ) (487,659 ) 75,728 (26,232 ) (438,167 ) Interest expense (82,664 ) (166 ) (4,616 ) — (87,446 ) Other income 617 439 52 — 1,108 Gain on derivative instruments 68,247 205,501 — — 273,748 Amortization of deferred financing costs (4,072 ) — (1,052 ) — (5,124 ) Equity in income (loss) of joint ventures and subsidiaries (296,335 ) 10,145 — 286,190 — Income (loss) before income taxes (314,211 ) (271,740 ) 70,112 259,958 (255,881 ) Income tax expense (12,118 ) (25,699 ) (9,295 ) 34,994 (12,118 ) Net income (loss) (326,329 ) (297,439 ) 60,817 294,952 (267,999 ) Less: net income attributable to noncontrolling interests — — (23,337 ) — (23,337 ) Net income (loss) attributable to Rice Energy $ (326,329 ) $ (297,439 ) $ 37,480 $ 294,952 $ (291,336 ) Statement of Operations for the Year Ended December 31, 2014 (in thousands) Parent Guarantors Non-Guarantors Eliminations Consolidated Operating revenues: Natural gas, oil and natural gas liquids (NGL) sales $ — $ 359,201 $ — $ — $ 359,201 Firm transportation sales, net — 26,237 — — 26,237 Gathering, compression and water services — — 7,300 (1,796 ) 5,504 Total operating revenues — 385,438 7,300 (1,796 ) 390,942 Operating expenses: Lease operating — 24,971 — — 24,971 Gathering, compression and transportation — 37,180 — (1,562 ) 35,618 Production taxes and impact fees — 4,647 — — 4,647 Exploration — 4,018 — — 4,018 Midstream operation and maintenance — — 4,607 — 4,607 Incentive unit expense — 86,020 19,941 — 105,961 General and administrative — 45,268 16,302 — 61,570 Depreciation, depletion and amortization — 153,282 2,988 — 156,270 Acquisition expense — 820 1,519 — 2,339 Amortization of intangible assets — — 1,156 — 1,156 Other expenses — — 207 — 207 Total operating expenses — 356,206 46,720 (1,562 ) 401,364 Operating income (loss) — 29,232 (39,420 ) (234 ) (10,422 ) Interest expense (27,177 ) (10,130 ) (12,884 ) — (50,191 ) Gain on purchase of Marcellus joint venture — 203,579 — — 203,579 Other income (loss) 247 755 (109 ) — 893 Gain on derivative instruments 55,580 130,897 — — 186,477 Amortization of deferred financing costs (2,006 ) (489 ) — — (2,495 ) Loss on extinguishment of debt — (7,654 ) — — (7,654 ) Write-off of deferred financing costs — (6,896 ) — — (6,896 ) Equity in income (loss) of joint ventures and subsidiaries 193,119 (47,208 ) — (148,567 ) (2,656 ) Income (loss) before income taxes 219,763 292,086 (52,413 ) (148,801 ) 310,635 Income tax expense (91,600 ) (98,731 ) 8,440 90,291 (91,600 ) Net income (loss) 128,163 193,355 (43,973 ) (58,510 ) 219,035 Less: net income attributable to noncontrolling interests — — (581 ) — (581 ) Net income (loss) attributable to Rice Energy $ 128,163 $ 193,355 $ (44,554 ) $ (58,510 ) $ 218,454 Statement of Operations for the Year Ended December 31, 2013 (in thousands) Parent Guarantors Non-Guarantors Eliminations Consolidated Operating revenues: Natural gas sales $ — $ 87,847 $ — $ — $ 87,847 Gathering, compression and water services — — 83 — 83 Other revenue — 763 (6 ) — 757 Total operating revenues — 88,610 77 — 88,687 Operating expenses: Lease operating — 8,309 — — 8,309 Gathering, compression and transportation — 8,362 — — 8,362 Production taxes and impact fees — 1,629 — — 1,629 Exploration — 9,951 — — 9,951 Midstream operation and maintenance — — 1,412 — 1,412 Restricted unit expense — 32,906 — — 32,906 General and administrative — 16,636 317 — 16,953 Depreciation, depletion and amortization — 32,421 394 — 32,815 (Gain) loss from sale of interest in gas properties — 4,230 — — 4,230 Total operating expenses — 114,444 2,123 — 116,567 Operating (loss) — (25,834 ) (2,046 ) — (27,880 ) Interest expense — (17,915 ) — — (17,915 ) Other (loss) — (357 ) (83 ) — (440 ) Gain on derivative instruments — 6,891 — — 6,891 Amortization of deferred financing costs — (5,230 ) — — (5,230 ) Loss on extinguishment of debt — (10,622 ) — — (10,622 ) Equity in income of joint ventures and subsidiaries — 17,848 — 1,572 19,420 Net income (loss) $ — $ (35,219 ) $ (2,129 ) $ 1,572 $ (35,776 ) Condensed Statement of Cash Flows for the Year Ended December 31, 2015 (in thousands) Parent Guarantors Non-Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ (59,213 ) $ 413,989 $ 85,547 $ (27,336 ) $ 412,987 Capital expenditures for property and equipment (9,775 ) (859,359 ) (404,476 ) 27,336 (1,246,274 ) Investment in subsidiaries (421,063 ) 11,614 — 409,449 — Acquisition of Greene County assets — 19,054 — — 19,054 Proceeds from sale of interest in gas properties — 10,201 — — 10,201 Net cash used in investing activities (430,838 ) (818,490 ) (404,476 ) 436,785 (1,217,019 ) Proceeds from borrowings 411,932 — 502,000 — 913,932 Repayments of debt obligations (15,922 ) (697 ) (342,000 ) — (358,619 ) Distributions to the Partnership’s public unitholders — — (17,017 ) — (17,017 ) Debt issuance costs (9,320 ) — (946 ) — (10,266 ) Proceeds from issuance of common stock sold in our IPO, net of offering costs — — (129 ) — (129 ) Proceeds from issuance of common units sold by RMP, net of offering costs — — 171,902 — 171,902 Contributions from parent, net — 421,064 (11,615 ) (409,449 ) — Net cash provided by financing activities 386,690 420,367 302,195 (409,449 ) 699,803 Increase (decrease) in cash (103,361 ) 15,866 (16,734 ) — (104,229 ) Cash, beginning of year 181,835 41,934 32,361 — 256,130 Cash, end of year $ 78,474 $ 57,800 $ 15,627 $ — $ 151,901 Condensed Statement of Cash Flows for the Year Ended December 31, 2014 (in thousands) Parent Guarantors Non-Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ 16,139 $ 96,147 $ (27,211 ) $ — $ 85,075 Capital expenditures for property and equipment (8,588 ) (684,541 ) (277,145 ) — (970,274 ) Acquisition of Marcellus joint venture, net of cash acquired — (27,766 ) (55,000 ) — (82,766 ) Acquisition of Momentum assets — (400 ) (111,447 ) — (111,847 ) Acquisition of Greene County assets — (329,469 ) — — (329,469 ) Proceeds from sale of interest in gas properties — 12,891 — — 12,891 Net cash used in investing activities (8,588 ) (1,029,285 ) (443,592 ) — (1,481,465 ) Proceeds from borrowings 900,000 190,000 — — 1,090,000 Repayments of debt obligations — (689,873 ) — — (689,873 ) Restricted cash for convertible debt — 8,268 — — 8,268 Debt issuance costs (19,522 ) — (5,021 ) — (24,543 ) Proceeds from conversion of warrants 1,975 — — — 1,975 Proceeds from issuance of common stock sold in our IPO, net of offering costs 597,088 — — — 597,088 Proceeds from issuance of common stock sold in August 2014 Equity Offering, net of offering costs 196,254 — — — 196,254 Proceeds from issuance of common units sold in RMP IPO, net of offering costs — — 441,739 — 441,739 Contributions from parent, net (1,501,511 ) 1,435,269 66,242 — — Net cash provided by financing activities 174,284 943,664 502,960 — 1,620,908 Increase (decrease) in cash 181,835 10,526 32,157 — 224,518 Cash, beginning of year — 31,408 204 — 31,612 Cash, end of year $ 181,835 $ 41,934 $ 32,361 $ — $ 256,130 Condensed Statement of Cash Flows for the Year Ended December 31, 2013 (in thousands) Parent Guarantors Non-Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 34,428 $ (756 ) $ — $ 33,672 Capital expenditures for property and equipment — (406,179 ) (59,208 ) — (465,387 ) Proceeds from sale of interest in gas properties — 6,792 — — 6,792 Net cash used in investing activities — (399,387 ) (59,208 ) — (458,595 ) Proceeds from borrowings — 435,500 — — 435,500 Repayments of debt obligations — (160,760 ) — — (160,760 ) Restricted cash for convertible debt — (8,268 ) — — (8,268 ) Debt issuance costs — (12,194 ) — — (12,194 ) Common stock issuance — 135,815 60,162 — 195,977 Repurchase of common stock — (2,267 ) — — (2,267 ) Net cash provided by financing activities — 387,826 60,162 — 447,988 Increase (decrease) in cash — 22,867 198 — 23,065 Cash, beginning of year — 8,541 6 — 8,547 Cash, end of year $ — $ 31,408 $ 204 $ — $ 31,612 |