Rice Energy Inc. (NYSE:RICE) is an independent E&P company focused on the Marcellus and Utica shales in Pennsylvania and Ohio. Shares declined in the fourth quarter due to a weakening natural gas outlook and higher exposure to Appalachia in-basin pricing following Rice’s acquisition of Vantage Energy. We believe Rice offers exposure to some of the best acreage and industry-leading production growth. We also think that the market underappreciates the value of Rice’s midstream holdings.
From Baron Energy and Resources Fund fourth quarter 2016 commentary.
