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Rice Energy Inc. (RICE) (“Rice”) today announced that it has agreed to non-binding terms with an energy infrastructure fund to invest up to $500 million in preferred equity in Rice Midstream Holdings LLC (“RMH”), a wholly-owned subsidiary of Rice, and common equity in a new wholly-owned subsidiary of RMH, “GP Holdings”, which will be formed to hold the common units, subordinated units and incentive distribution rights in Rice Midstream Partners LP (RMP) currently held by RMH.

The closing of the transaction is expected to occur in the first quarter of 2016 and is subject to the completion of diligence, definitive documentation and satisfactory customary conditions precedent. At closing, Rice Energy plans to utilize $375 million, of which it intends to use a portion to repay all outstanding borrowings under RMH’s revolving credit facility, and the remainder to fund Rice’s 2016 development of its core Marcellus Shale and Utica Shale wells.

Commenting on the announcement, Grayson T. Lisenby, Chief Financial Officer, said, “This planned transaction strongly positions Rice to fully fund its 2016 E&P budget with cash on hand and operating cash flow. The undrawn commitment will provide flexibility to continue to grow our midstream business in the core of the Utica. Additionally, it will help illuminate the long-term value potential of our retained midstream enterprise. We look forward to finalizing this transaction and sharing additional details upon closing.”

About Rice Energy

Rice Energy Inc. is an independent natural gas and oil company engaged in the acquisition, exploration and development of natural gas and oil properties in the Appalachian Basin. For more information, please visit our website at