Riverstone Energy Limited 1Q18 Quarterly Portfolio Valuations (7923K)

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 
 [phone] 
 

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

PFUQLLFFVZFEBBV

(END) Dow Jones Newswires

April 13, 2018 02:00 ET (06:00 GMT)