Despite Cash Crunch, Rice Forms Utica Midstream JV With Gulfport

Rice Energy Inc is pushing ahead with a premier midstream system in the Utica Shale, but its portion of a $640 joint venture (JV) may put the company in a bind in 2016. Rice is poised to outspend cash flow by more than $400 million in 2016 based on current strip prices. Subsidiary Rice Midstream Hol...

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Bibliographic Details
Published inA&D Watch Vol. 30; p. 11
Main Author Barbee, Darren
Format Trade Publication Article
LanguageEnglish
Published Houston Hart Energy 01.12.2015
Subjects
Cash flow
Funding
Joint ventures
Petroleum industry
United States > US
Ohio
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Summary:Rice Energy Inc is pushing ahead with a premier midstream system in the Utica Shale, but its portion of a $640 joint venture (JV) may put the company in a bind in 2016. Rice is poised to outspend cash flow by more than $400 million in 2016 based on current strip prices. Subsidiary Rice Midstream Holdings LLC and ally Gulfport Energy Corp, which operate in an area of mutual interest in the Utica, said October 8 they will invest about $520 million to develop gathering and compression assets and $120 million for water assets within the JV over the next six years. Under the terms of the JV agreement, Gulfport will have the right to participate on a proportionate basis in any direct or indirect sale transactions by Rice, which includes potential dropdown transactions with its midstream subsidiary.
ISSN:1940-8471
1940-848X