TIDMRSE
RNS Number : 6028O
Riverstone Energy Limited
31 January 2019
- THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION -
Riverstone Energy Limited Announces 4Q18 Quarterly Portfolio
Valuations
London, UK (31 January 2019) - Riverstone Energy Limited ("REL")
announces its quarterly portfolio summary as of 31 December 2018,
inclusive of updated quarterly unaudited fair market
valuations:
Current Portfolio
Gross
Realised
Capital 31
Gross Gross Gross & Dec 30 Sep
Investment Committed Invested Realised Unrealised Unrealised 2018 2018
(Initial Investment Capital Capital Capital Value Value Gross Gross
Date) Target Basin ($mm) ($mm) ($mm)[1] ($mm) ($mm) MOIC2 MOIC(2)
Hammerhead
Resources Deep Basin
(27 Mar 2014) (Canada) $307 $295 $23 $416 $439 1.5x 1.8x
Centennial
(6 Jul 2016) Permian (U.S.) 268 268 172 167 339 1.3x 1.9x
ILX III Deepwater
(8 Oct 2015) GoM (U.S.) 200 151 - 197 197 1.3x 1.4x
Liberty II Bakken, PRB
(30 Jan 2014) (U.S.) 142 142 - 156 156 1.1x 1.3x
Permian &
Carrier II Eagle Ford
(22 May 2015) (U.S.) 133 110 16 94 110 1.0x 1.2x
RCO3 North America 87 87 83 10 93 1.1x 1.1x
(2 Feb 2015)
Meritage III4 Western Canada 67 40 - 80 80 2.0x 2.0x
(17 Apr 2015)
CNOR
(29 Aug 2014) Western Canada 90 90 - 72 72 0.8x 1.0x
Fieldwood GoM Shelf
(17 Mar 2014) (U.S.) 82 81 3 55 58 0.7x 0.8x
Gulf Coast
Castex 2014 Region (U.S.) 67 47 - 47 47 1.0x 1.0x
(3 Sept 2014)
Sierra
(24 Sept
2014) Mexico 38 18 - 37 37 2.0x 2.2x
Eagle II Mid-Continent
(18 Dec 2013) (U.S.) 67 62 - 19 19 0.3x 0.5x
Total Current Portfolio5 $1,547 $1,391 $297 $1,349 $1,646 1.2x 1.4x
--------------------------------------------- --------- --------- --------- ---------- ---------- ------ -------
Realisations
Gross
Realised
Capital
Gross Gross Gross & 31 Dec 30 Sep
Investment Committed Invested Realised Unrealised Unrealised 2018 2018
(Initial Investment Target Capital Capital Capital Value Value Gross Gross
Date) Basin ($mm) ($mm) ($mm)(1) ($mm) ($mm) MOIC(2) MOIC(2)
Rock Oil6 (12 Permian
Mar 2014) (U.S.) 114 114 230 9 239 2.1x 2.1x
Three Rivers
III (7 Apr Permian
2015) (U.S.) 94 94 200 3 203 2.2x 2.1x
Total Realisations(5) $209 $209 $430 $12 $442 2.1x 2.1x
------------------------------------ ---------- --------- ---------- ---------- ---------- --------- --------
Withdrawn Commitments
and Impairments7 59 59 1 - 1 0.0x 0.0x
------------------------------------ ---------- --------- ---------- ---------- ---------- --------- --------
Total Investments(5) $1,815 $1,659 $729 $1,360 $2,089 1.3x 1.5x
------------------------------------ ---------- --------- ---------- ---------- ---------- --------- --------
Cash and Cash Equivalents $137
------------------------------------ ---------- --------- ---------- ---------- ---------- --------- --------
Total Investments & Cash
and Cash Equivalents(5) $1,497
------------------------------------ ---------- --------- ---------- ---------- ---------- --------- --------
Results and Investor Call
REL will release its Annual Report for the 12 month period from
1 January 2018 to 31 December 2018 on 27 February 2019. The Report
will include the NAV of REL as well as updates on the
portfolio.
Representatives of Riverstone International Limited will host an
investor conference call in order to review developments in the
Company's investment portfolio.
The conference call will take place at 1200 GMT / 1300 CET /
0700 ET on 27 February 2019 and can be accessed by dialing 0800 028
8438 (UK) or +44 (0) 20 3107 0289 (International) (Conference ID:
5834899).
A playback facility will be available from 1500 GMT on the same
day. This facility can be accessed for the following two weeks by
dialing 0800 917 2646 (UK) or +44 (0) 20 3107 0235 (International)
and using conference ID 5834899. A recording of the investor call
will also be available on REL's website within several days after
the call.
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 12 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:
Natasha Fowlie
Fraser Johnston-Donne
+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
December 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 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.
[1] Gross realised capital is total gross proceeds realised on
invested capital. Of the $729 million of capital realised to date,
$427 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 Midstream investment.
5 Amounts may vary due to rounding.
6 The unrealised value of the Rock Oil investment consists of
rights to mineral acres.
7 Withdrawn commitments consist of Origo ($9 million) and CanEra
III ($1 million), and impairments consist of 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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