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    Rice Energy to form midstream MLP, offer common stock

    Rice Energy Inc.

    Rice Energy Inc. (NYSE: RICE) is pursuing the formation of a midstream master limited partnership (MLP) and intends to confidentially submit a draft Registration Statement on Form S-1 to the US Securities and Exchange Commission (SEC) for an initial public offering (IPO) of common units of the MLP. The offering is expected to be completed in the first half of 2015.

    It is expected that the initial assets of the MLP will consist of Rice Energy's Pennsylvania gas gathering and water sourcing and distribution assets. Following the closing of the contemplated IPO, Rice Energy will control the general partner of the MLP and will own 100% of the incentive distribution rights and a majority of the MLP limited partnership units.

    Rice Energy will begin an underwritten public offering of 10,000,000 shares of its common stock, pursuant to a registration statement on Form S-1 previously filed with the SEC. The company is offering 7,500,000 shares of its common stock, and the selling stockholders named in the registration statement are offering 2,500,000 shares of the company's common stock. 

    The selling stockholders expect to grant the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of Rice's common stock from such selling stockholders if the underwriters sell more than 10,000,000 shares of the company's common stock. 

    Rice Energy intends to use the net proceeds to fund a portion of its 2014 capital budget. The company will not receive any of the proceeds from the sale of shares of its common stock by the selling stockholders.

    Goldman, Sachs & Co., Barclays Capital Inc., and Citigroup Global Markets Inc. will act as joint book-running managers of the offering.

     

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