TIDMRSE
RNS Number : 0737M
Riverstone Energy Limited
26 July 2017
- THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION -
Riverstone Energy Limited Announces 2Q17 Quarterly Portfolio
Valuations
London, UK (26 July 2017) - Riverstone Energy Limited ("REL")
announces its quarterly portfolio summary as of 30 June 2017,
inclusive of updated quarterly unaudited fair market
valuations:
Current Portfolio
Gross
Gross Net Realised
Committed Invested Realised Invested & Unrealised
Capital Capital Capital Capital Value Gross
Target Basin ($mm) ($mm) ($mm)(1) ($mm)(2) ($mm)(3) MOIC(3)
------------- --------------- ---------- --------- ---------- ----------- ------------ ---------
Deep Basin
CIOC (Canada) $307 $295 $23 $275 $533 1.8x
Centennial Permian (U.S.) 268 268 - 268 380 1.4x
Three Rivers
III Permian (U.S.) 167 86 - 86 259 3.0x
Liberty Bakken, PRB
II (U.S.) 142 137 - 137 171 1.3x
Carrier
II Permian (U.S.) 133 110 - 110 131 1.2x
Deepwater GoM
ILX III (U.S.) 200 94 - 94 122 1.3x
RCO(4) North America 125 87 81 24 109 1.3x
CNOR Western Canada 90 80 - 80 80 1.0x
Mid-Continent
Eagle II (U.S.) 67 62 - 62 68 1.1x
Meritage
III(5) Western Canada 67 32 - 32 45 1.4x
Gulf Coast
Castex Region
2014 (U.S.) 67 40 - 40 40 1.0x
GoM Shelf
Fieldwood (U.S.) 82 58 3 58 35 0.6x
Gulf Coast
Castex Region
2005 (U.S.) 50 48 - 48 5 0.1x
Sierra Mexico 38 1 - 1 2 1.1x
Total Current Portfolio(6) $1,802 $1,398 $107 $1,314 $1,979 1.4x
---------
Percentage of REL net
capital available(7) 91%
---------
Realisations
Gross
Gross Unrealised Realised
Committed Invested Realised Value & Unrealised
Capital Capital Capital ($mm) Value Gross
Target Basin ($mm) ($mm) ($mm)(1) ($mm)(3) MOIC(3)
------------ ------------- ---------- --------- ---------- ------------ ------------ ---------
Permian
Rock Oil(8) (U.S.) - 114 216 24 240 2.1x
CanEra Western
III Canada - 1 1 - 1 0.4x
North Sea
(Norway,
Origo U.K.) - 9 - - - 0.0x
Total Investments(6) $1,523 $323 $2,220 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 period ended 30
June 2017 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 total gross proceeds realised on
invested capital. Of the $323 million of capital realised to date,
$199 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 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 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) Credit investment.
(5) Midstream investment.
(6) Amounts may vary due to rounding.
(7) 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.
(8) 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
PFUQELFLDDFLBBF
(END) Dow Jones Newswires
July 26, 2017 02:01 ET (06:01 GMT)
Riverstone Energy (LSE:RSE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Riverstone Energy (LSE:RSE)
Historical Stock Chart
From Apr 2023 to Apr 2024