TIDMRSE
RNS Number : 2775H
Riverstone Energy Limited
31 July 2019
- THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION -
Riverstone Energy Limited Announces 2Q19 Quarterly Portfolio
Valuations
London, UK (31 July 2019) - Riverstone Energy Limited ("REL")
announces its quarterly portfolio summary as of 30 June 2019,
inclusive of updated quarterly unaudited fair market
valuations:
Current Portfolio
Gross
Realised
Capital 30
Gross Gross Gross & Jun 31 Mar
Investment Committed Invested Realised Unrealised Unrealised 2019 2019
(Initial Investment Capital Capital Capital Value Value Gross Gross
Date) Target Basin ($mm) ($mm) ($mm)[1] ($mm) ($mm) MOIC2 MOIC(2)
Centennial Permian
(6 Jul 2016) (U.S.) $268 $268 $172 $115 $287 1.1x 1.1x
Hammerhead
Resources Deep Basin
(27 Mar 2014) (Canada) 307 295 23 202 225 0.8x 1.0x
ILX III Deepwater
(8 Oct 2015) GoM (U.S.) 200 155 2 200 202 1.3x 1.3x
Liberty II Bakken, PRB
(30 Jan 2014) (U.S.) 142 142 - 128 128 0.9x 1.1x
Permian &
Carrier II Eagle Ford
(22 May 2015) (U.S.) 133 110 22 66 88 0.8x 1.0x
RCO3 North America 80 80 79 3 82 1.0x 1.1x
(2 Feb 2015)
Fieldwood GoM Shelf
(17 Mar 2014) (U.S.) 89 88 8 54 62 0.7x 0.6x
Gulf Coast
Castex 2014 Region (U.S.) 67 50 - 35 35 0.7x 0.7x
(3 Sept 2014)
CNOR Western
(29 Aug 2014) Canada 90 90 - 27 27 0.3x 0.5x
Ridgebury
H3 Global 22 18 - 20 20 1.1x 1.0x
(19 Feb 2019)
Total Current Portfolio(4) $1,398 $1,296 $305 $849 $1,154 0.9x 1.0x
-------------------------------------------- --------- --------- --------- ---------- ---------- ------ -------
Realisations
Gross
Realised
Capital
Gross Gross Gross & 30 Jun 31 Mar
Investment Committed Invested Realised Unrealised Unrealised 2019 2019
(Initial Investment Capital Capital Capital Value Value Gross Gross
Date) Target Basin ($mm) ($mm) ($mm)(1) ($mm) ($mm) MOIC(2) MOIC(2)
Permian (U.S
Rock Oil5 .) 114 114 231 8 239 2.1x 2.1x
(12 Mar 2014)
Three Rivers
III (7 Apr Permian
2015) (U.S.) 94 94 203 - 203 2.2x 2.2x
Meritage III6 Western
(17 Apr 2015) Canada 62 40 83 - 83 2.1x 2.1x
Sierra
(24 Sept 2014) Mexico 18 18 39 - 39 2.1x 2.1x
Total Realisations(4) $290 $267 $557 $8 $565 2.1x 2.1x
-------------------------------------------- --------- --------- --------- ---------- ---------- --------- --------
Withdrawn Commitments
and Impairments7 121 121 1 - 1 0.0x 0.0x
-------------------------------------------- --------- --------- --------- ---------- ---------- --------- --------
Total Investments(4) $1,809 $1,683 $862 $857 $1,719 1.0x 1.1x
-------------------------------------------- --------- --------- --------- ---------- ---------- --------- --------
Cash and Cash Equivalents $219
-------------------------------------------- --------- --------- --------- ---------- ---------- --------- --------
Total Investments & Cash
and Cash Equivalents(4) $1,076
-------------------------------------------- --------- --------- --------- ---------- ---------- --------- --------
About Riverstone Energy Limited:
REL is a closed-ended investment company that invests
exclusively in the global energy industry across all 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 11 active investments spanning oil
and gas, midstream, and energy services in the Continental U.S.,
Western Canada, Gulf of Mexico, Latin America 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:
Natasha Fowlie
Brian Potskowski
+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 30
June 2019 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 Performance Review Team ("PRT") as
part of the valuation process. The PRT was formed to serve as a
single structure overseeing the existing Riverstone portfolio with
the goal of improving operational and financial performance.
The Audit Committee reviews the valuations of the Company's
investments held through the Partnership, and makes a
recommendation to the Board for formal consideration and
acceptance.
The unaudited fair market valuations as of 30 June 2019 will
form part of REL's 2019 interim financial statements, which are
scheduled to be released on 14 August 2019, and are subject to an
interim review under ISRE2410, which will be undertaken by Ernst
& Young LLP on behalf of the Directors.
[1] Gross realised capital is total gross proceeds realised on
invested capital. Of the $862 million of capital realised to date,
$573 million is the return of the cost basis, and the remainder is
profit.
2 Gross Unrealised Value and Gross MOIC (Gross Multiple of
Invested Capital) 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 (including cash) 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.
3 Credit investment.
4 Amounts may vary due to rounding.
5 The unrealised value of the Rock Oil investment consists of
rights to mineral acres.
6 Midstream investment.
7 Withdrawn commitments consist of Origo ($9 million) and CanEra
III ($1 million), and impairments consist of Eagle II ($62 million)
and Castex 2005 ($48 million).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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