Riverstone Energy Limited 1Q18 Quarterly Portfolio Valuations (7923K)
April 13 2018 - 2:00AM
UK Regulatory
TIDMRSE
RNS Number : 7923K
Riverstone Energy Limited
13 April 2018
- THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION -
Riverstone Energy Limited Announces 1Q18 Quarterly Portfolio
Valuations
London, UK (13 April 2018) - Riverstone Energy Limited ("REL")
announces its quarterly portfolio summary as of 31 March 2018,
inclusive of updated quarterly unaudited fair market
valuations:
Current Portfolio
Gross
Gross Net Invested Realised
Committed Invested Realised Capital & Unrealised
Capital Capital Capital ($mm)[2] Value Gross
Target Basin ($mm) ($mm) ($mm)[1] ($mm)(3) MOIC[3]
Hammerhead
Resources
(formerly
CIOC) Deep Basin (Canada) $307 $295 $23 $275 $561 1.9x
Centennial Permian (U.S.) 268 268 172 170 455 1.7x
Three Rivers
III Permian (U.S.) 167 94 18 76 205 2.2x
Liberty Bakken, PRB
II (U.S.) 142 142 - 142 177 1.3x
Deepwater GoM
ILX III (U.S.) 200 125 - 125 150 1.2x
Carrier
II Permian (U.S.) 133 110 - 110 131 1.2x
RCO[4] North America 125 87 82 23 93 1.1x
CNOR Western Canada 90 83 - 83 83 1.0x
Meritage
III[5] Western Canada 67 34 - 34 59 1.8x
Mid-Continent
Eagle II (U.S.) 67 62 - 62 49 0.8x
Castex Gulf Coast Region
2014 (U.S.) 67 44 - 44 44 1.0x
Sierra Mexico 38 9 - 9 21 2.4x
Fieldwood GoM Shelf (U.S.) 82 59 3 59 12 0.2x
Total Current Portfolio[6] $1,752 $1,411 $298 $1,211 $2,040 1.4x
-------------------------------------- ---------- --------- ---------- -------------- ------------- ---------
Percentage of REL net
capital available[7] 84%
-------------------------------------- ---------- --------- ---------- -------------- ------------- ---------
Realisations
Gross
Gross Unrealised Realised
Committed Invested Realised Value & Unrealised
Capital Capital Capital ($mm) Value Gross
Target Basin ($mm) ($mm) ($mm)(1) ($mm)(3) MOIC(3)
------------ ------------- ---------- --------- ---------- ------------ ------------ ---------
Permian
Rock Oil[8] (U.S.) - 114 229 11 240 2.1x
CanEra Western
III Canada - 1 1 - 1 0.4x
North Sea
(Norway,
Origo U.K.) - 9 - - - 0.0x
Gulf Coast
Castex Region
2005 (U.S.) - 48 - - - 0.0x
Total Investments(6) $1,584 $528 $2,281 1.4x
---------------------------- ---------- --------- ---------- ------------ ------------ ---------
About Riverstone Energy Limited
REL is a closed-ended investment company that invests
exclusively in the global energy industry, with a particular focus
on the exploration & production and midstream sectors. REL aims
to capitalise on the opportunities presented by Riverstone's energy
investment platform. REL is a member of the FTSE 250 and its
ordinary shares are listed on the London Stock Exchange, trading
under the symbol RSE. REL has 13 active investments spanning
conventional and unconventional oil and gas activities in the
Continental U.S., Western Canada, Gulf of Mexico, Mexico and
credit.
For further details, see www.RiverstoneREL.com
Neither the contents of Riverstone Energy Limited's website nor
the contents of any website accessible from hyperlinks on the
websites (or any other website) is incorporated into, or forms part
of, this announcement.
Media Contacts
For Riverstone Energy Limited:
Brian Potskowski
Natasha Fowlie
+44 20 3206 6300
Note:
The Investment Manager is charged with proposing the valuation
of the assets held by REL through the Partnership. The Partnership
has directed that securities and instruments be valued at their
fair value. REL's valuation policy follows IFRS and IPEV Valuation
Guidelines. The Investment Manager values each underlying
investment in accordance with the Riverstone valuation policy, the
IFRS accounting standards and IPEV Valuation Guidelines. The
Investment Manager has applied Riverstone's valuation policy
consistently quarter to quarter since inception. The value of REL's
portion of that investment is derived by multiplying its ownership
percentage by the value of the underlying investment. If there is
any divergence between the Riverstone valuation policy and REL's
valuation policy, the Partnership's proportion of the total holding
will follow REL's valuation policy. There were no valuation
adjustments recorded by REL as a result of differences in IFRS and
U.S. Generally Accepted Accounting Policies for the period ended 31
March 2018 or in any period to date. Valuations of REL's
investments through the Partnership are determined by the
Investment Manager and disclosed quarterly to investors, subject to
Board approval.
Riverstone values its investments using common industry
valuation techniques, including comparable public market valuation,
comparable merger and acquisition transaction valuation, and
discounted cash flow valuation.
For development-type investments, Riverstone also considers the
recognition of appreciation or depreciation of subsequent financing
rounds, if any. For those early stage privately held companies
where there are other indicators of a decline in the value of the
investment, Riverstone will value the investment accordingly even
in the absence of a subsequent financing round.
Riverstone reviews the valuations on a quarterly basis with the
assistance of the Riverstone valuation committee as part of the
valuation process.
[1] Realised capital is total gross proceeds realised on
invested capital. Of the $528 million of capital realised to date,
$315 million is the return of the cost basis, and the remainder is
profit.
[2] Net invested capital is total invested capital less cost
basis of the realised capital.
[3] Gross MOIC is Multiple of Invested Capital. Gross Unrealised
Value and Gross MOIC are before transaction costs, taxes
(approximately 21 to 27.5 per cent. of U.S. sourced taxable income)
and 20 per cent. carried interest on gross profits (without a
hurdle rate). Since there is no netting of losses against gains,
the effective carried interest rate on the portfolio as a whole
will be greater than 20 per cent. In addition, there is a
management fee of 1.5 per cent. of net assets per annum and other
expenses. Given these costs, fees and expenses are in aggregate
expected to be considerable, Total Net Value and Net MOIC will be
materially less than Gross Unrealised Value and Gross MOIC. Local
taxes, primarily on U.S. assets, may apply at the jurisdictional
level on profits arising in operating entity investments. Further
withholding taxes may apply on distributions from such operating
entity investments. In the normal course of business, REL may form
wholly-owned subsidiaries, to be treated as C Corporations for US
tax purposes. The C Corporations serve to protect REL's public
investors from incurring U.S. effectively connected income. The C
Corporations file U.S. corporate tax returns with the U.S. Internal
Revenue Service and pay U.S. corporate taxes on its taxable
income.
[4] Credit investment.
[5] Midstream investment.
[6] Amounts may vary due to rounding.
[7] Based on total capital raised of $1,320 million, bank loan
(maturing 27 June 2018), realised profits and other income net of
fees, expenses and performance allocation. The Board does not
expect to fully fund all commitments in the normal course of
business.
[8] The unrealised value of the Rock Oil investment consists of
rights to mineral acres.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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