TIDMRSE
RNS Number : 5203V
Riverstone Energy Limited
30 January 2017
- THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION -
Riverstone Energy Limited Announces 4Q16 Quarterly Portfolio
Valuations
London, UK (30 January 2017) - Riverstone Energy Limited ("REL")
announces its quarterly portfolio summary as of 31 December 2016,
inclusive of updated quarterly unaudited fair market
valuations:
Current Portfolio
Gross
Net Realised
Current Invested &
Committed Invested Realised Capital Unrealised
Capital Capital Capital ($mm)[2] Value Gross
Target Basin ($mm) ($mm) ($mm)[1] ($mm)(3) MOIC[3]
---------------- --------------- --------- --------- --------- ---------- ---------- --------
Deep Basin
CIOC (Canada) $307 $232 $23 $209 $471 2.0x
Centennial[4] Permian (U.S.) 268 268 - 268 477 1.8x
Three Rivers
III Permian (U.S.) 167 76 - 76 190 2.5x
Carrier
II Permian (U.S.) 133 104 - 104 132 1.3x
Liberty Bakken, PRB
II (U.S.) 142 120 - 120 120 1.0x
RCO[5] North America 125 87 70 17 112 1.3x
Deepwater GoM
ILX III (U.S.) 200 67 - 67 88 1.3x
CNOR Western Canada 90 73 - 73 73 1.0x
GoM Shelf
Fieldwood (U.S.) 82 58 2 57 58 1.0x
Mid-Continent
Eagle II (U.S.) 67 56 - 56 56 1.0x
Gulf Coast
Castex Region
2014 (U.S.) 67 36 - 36 36 1.0x
Meritage
III[6] Western Canada 67 29 - 29 32 1.1x
Gulf Coast
Castex Region
2005 (U.S.) 50 48 - 48 5 0.1x
North Sea
(Norway,
Origo U.K.) 67 8 - 8 4 0.5x
Sierra Mexico 38 1 - 1 2 1.1x
CanEra
III Western Canada 60 1 - 1 1 1.0x
Total Current Portfolio[7] $1,928 $1,266 $95 $1,172 $1,856 1.5x
--------
Percentage of REL net
capital available[8] 126% 76%
--------
Realisations
Gross
Current Unrealised Realised
Committed Invested Realised Value & Unrealised
Capital Capital Capital ($mm)(2) Value Gross
Target Basin ($mm) ($mm) ($mm)(1) ($mm)(3) MOIC(3)
------------- -------------- ---------- --------- ---------- ------------ ------------ ---------
Rock Oil[9] Permian (U.S.) - 114 216 24 240 2.1x
Total Investments(7) $1,381 $311 $2,096 1.5x
------------------------------ ---------- --------- ---------- ------------ ------------ ---------
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. To date, REL has made 17 investments spanning
conventional and unconventional oil and gas activities in the Gulf
of Mexico, Continental U.S., Western Canada, the U.K. North Sea,
the Norwegian Sea, 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 year ended 31
December 2016 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.
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.
[1] Realised capital is gross proceeds realised on
investment.
[2] Net invested capital is invested capital less gross proceeds
realised on investment.
[3] Gross MOIC is Multiple of Invested Capital. Gross Unrealised
Value and Gross MOIC are before transaction costs, taxes and 20 per
cent. carried interest on gross profits. 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 US 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.
[4] $93 million of the investment has been financed from the
proceeds of a bank loan of $100 million, which has a bullet
maturity of 18 months and an annual interest rate cost of 3 month
LIBOR + 3.25 per cent. Fees and expenses of approximately $700,000
were incurred with the financing. A security interest has been
granted over REL's entire investment in Centennial (NasdaqCM:CDEV)
in favour of the lenders, as security for any amounts which may be
due from time to time under the Loan.
[5] Credit investment.
[6] Midstream investment.
[7] Amounts may vary due to rounding.
[8] Based on total capital raised of $1,320 million, bank loan,
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.
[9] The unrealised value of the Rock Oil investment consists of
sale proceeds in escrow of $13 million and rights to mineral acres
of $11 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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