uploads///Rice Energys org structure

Rice Energy’s new structure and Rice Midstream’s future plans


Dec. 29 2014, Updated 5:49 p.m. ET

New organizational structure

According to a press release, Rice Energy Inc. (RICE) and the public hold an approximate 50% limited partner interest each in Rice Midstream Partners LP (RMP).

Rice Midstream Partners is a subsidiary of Rice Energy, which is a component of several energy ETFs, including the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), the Vanguard Energy ETF (VDE), and the Vanguard Total World Stock Index Fund (VT).

Article continues below advertisement

Rice Energy owns 100% of the equity interests of Rice Energy Appalachia (or REA), which in turn holds 100% of the equity interests of Rice Midstream Holdings. Rice Midstream Holdings has limited partner interests in Rice Midstream Partners (RMP) and is also the general partner of the partnership. It also owns the partnership’s incentive distribution rights.

Rice Midstream’s future plans

Net proceeds of the IPO after the sale of 28,750,000 common units was approximately $441.6 million.

Rice Midstream noted in a press release that it intends to “make a $413.9 million distribution to Rice Energy, including a $195.3 million reimbursement for capital expenditures incurred on Rice Midstream’s behalf, to fund $25.0 million of Rice Midstream’s 2015 expansion capital expenditures, and to pay approximately $2.7 million of origination fees related to Rice Midstream’s new revolving credit facility.”

The following part talks about the midstream assets that Rice Midstream Partners will acquire.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.