Riverstone Energy Share Discussion Threads

[cousinit] 29/10/2021 10:09

For completeness, I am back in now. Getting a lot of volume on the buybacks so that receding is probably needed to drive the price on and close the gaping discount (even if only to maybe 25% levels) to the revised NAV. Maybe they can make money on the green stuff after all... I'm still not that convinced though

[bench2] 28/10/2021 21:59

A decisive break above 500p would be bullish

[hugepants] 27/10/2021 11:16

The shares look cheap given NAV is up from 680p to 813p so the discount is currently 39%. Some of the renewable investments as well as the legacy O&G marked up and £30M available for buyback.

[brwo349] 27/10/2021 08:17

good update

[hugepants] 25/10/2021 15:37

IMS on Wednesday which is when the buyback can resume.

[cousinit] 06/10/2021 21:34

Appreciate the counsel Bench but I've actually sold out - I had reasonable conviction when I bought back in at c.275p earlier in the year, but not so much at these levels. There is plenty of potential value here but not sure that all shareholders will benefit from it. Maybe still haunted by the wild ride from this last year and the nerve it took (or felt like!) to add more at just over £1. GLA

[bench2] 06/10/2021 11:36

With BB suspended , larger sellers are holding off , so share price creeping better on small buyers and very positive Oil and Gas prices . Hang in there CousinIT

[bench2] 04/10/2021 11:03

Buyback paused until IMS on 27 Oct , so interesting to see whether shares drift back . Board have increased buyback from £20m to £40m ...... leaving circa £30m remaining . So quite a bit of fire power . My guess is the legacy Oil and Gas holdings will be revalued upwards given the surge in energy prices . I am staying put .

[bench2] 29/9/2021 14:29

You are right to be cautious Cousin , but Riverstone is a changed beast from when it was floated , with the ability to invest in renewables , and electric storage etc . We are a long way from the peak price of 1359p reached on 31 July 2017 . They have a lot of ground to make up , so I will retain my small holding over the key winter months ( in the northern hemisphere ), to see how things go until 31 March 2022 .

[cousinit] 29/9/2021 10:16

I'm particularly cautious on this one, Bench. The general thesis that it'll take longer to wean the world off oil is one I buy into and the lack of investment by the big players 'pivoting' should support prices for those remaining. This is the only oil position I'm looking to exit. They seem to have found decent volume at these levels to buy back so may not have much more legs based on the buy backs alone

[bench2] 28/9/2021 22:09

The series of buybacks look inspired , with cable at $1.355 and Brent at $80 , plus gas still heading north NAV will be well over 700p . CousinIT your wish has been granted as the share price is close to 500p . However maybe a reduction rather than outright sale would be a better option . The headlong rush to save the planet and switch to green energy , has put pressure on Oil and Gas companies to switch off E&P etc and close fields , and has helped to create the price squeeze in spot oil and gas prices . Active managers and the ESG slaves have been crowing about their green credentials and how they no longer hold Shell , BP , Total , Exxon etc . This is the ultimate counter phsycological play to be in Oil stocks when few managers will touch it . So RSE , RDSB , and JPM Russia ( Mainly Gas and Energy stocks ) will continue to trend higher . So best to trim a bit and enjoy the ride .

[cousinit] 18/8/2021 11:59

Transformed it into what though? It's some kind of weird hybrid with a lot of cash (currently) on the balance sheet undertaking buybacks. It's not likely to go mainstream with the remaining governance/IMA quirks.

Instinctively, I'd figure the manager is probably more able to destroy value with 'clean' investments than it was with 'dirty' ones.

Reckon I'd happily walk away for less than a fiver.

[hugepants] 18/8/2021 11:44

Imo the big disposal recently transformed the investment case but agree a sizable discount is warranted. But not 42%! Not with all that cash waiting to be invested. I reckon worth north of 500p.

[cousinit] 18/8/2021 11:35

I can't help but see this as a temporary hold. With oil stocks softening recently, the NAV is likely to be closer to 650p now. Suspect even with the buybacks that this warrants a discount of c25% and I guess the Board want them to be accretive so won't push the pedal down too much.

Can't have much conviction given the rollercoaster ride of how it's got to here. If RSE even scares off AVI then that says something!

[hugepants] 18/8/2021 09:52

Talking to myself here but results out.


NAV = £6.83 so discount = 42% with current share price at 390p

At 16 Aug they have "$178 million aggregate cash balance and $86 million of unrestricted marketable securities". That's £192M or 312p per share.


"REL remains focussed on managing liquidity and operational efficiency at the portfolio company level, while continuing to execute on its modified investment programme, which includes a pivot from E&P investments towards energy transition and decarbonisation assets. The Investment Manager believes the current market environment is generating attractive risk-reward investment opportunities within these subsectors."


"Share Buyback Programme

As previously announced on 1 July 2021, with today's publication of the Company's Interim Report and Financial Statements for the period ended 30 June 2021, the Board will recommence its £20.0 million open market share buyback programme with Numis Securities Limited and J.P. Morgan Securities plc. Since the Company's announcement on 11 May 2021, 1,185,808 ordinary shares have been bought back at a total cost of approximately 4.0 million ($5.6 million) at an average share price of approximately £3.36 ($4.72)."

[hugepants] 05/8/2021 12:53

When results are out this month they will recommence share buyback programme. Still have £16M available so a bit of a no-brainer to continue buying at this approx 43% discount.


1 July 2021

Riverstone Energy Limited

Share Buyback Programme

As the next portfolio valuation date is 30 June 2021, Riverstone Energy Limited (the "Company") announces that its GBP20.0 million share buyback programme has been paused until after the Company's Interim Report and Financial Statements for the period ended 30 June 2021 (the "Interim Report") have been published in August 2021 . Since the Company's announcement on 11 May 2021, 1,185,808 ordinary shares have been bought back at a total cost of approximately GBP 4.0 million, such that there is GBP 16.0 million remaining of the authorised GBP20.0 million. The Board intends to recommence the share buyback programme with Numis Securities Limited and J.P. Morgan Securities plc after publication of the Interim Report.

[hugepants] 30/7/2021 08:10

NAV update:


Discount to NAV over 45% now? (NAV now $582M up from $492M at end March. £/$ exchange rate the same. So NAV approx 670p with 355p of that being cash+marketable securities)

[hugepants] 22/7/2021 09:51

Interesting disposal news this morning. Valued now at cash + marketable securities? Discount still around 40%(?) given disposal (of biggest asset) at 23% premium.


Richard Hayden, Chairman and Non-Executive Independent Director of REL, commented: "The proceeds from REL's exit of ILX III provide additional funds to accelerate our investments in decarbonisation and low-carbon power generation. It also provides improved liquidity to support Board approved share repurchases. As of 30 June 2021, pro forma for this sale, REL holds total cash of $221 million. In addition, as of 30 June 2021, REL owns $86 million of freely marketable securities and $6 million of securities subject to a lock-up.

[rambutan2] 28/3/2021 21:51

Coincides with droop in share price this month:

Completion of Share Buyback Programme

Following the announcement on 1 May 2020 of the start of Company's GBP50 million Share Buyback Programme, the Board is pleased to confirm that the Share Buyback Programme has been successfully completed with a total of 17,214,197 ordinary shares having been bought back at an average price of approximately GBP 2.90 per ordinary share.

[cj2021] 16/2/2021 18:17

Interest starting to come with two consecutive days of good volumes. Break 309p and targets of 380 and 438p. That will still be below NAV of 445p.

[cj2021] 16/2/2021 13:48

Only stumbled across this recently and have positioned myself given the significant value disparity b/w NAV and current share price. NAV at June 2020 was £4.45 when Brent was $30, whilst Brent now is $63. Annual results expected before end of next week should show an increase in NAV to around £6 in my opinion. Thus current price per share of £3 will almost be a 50% discount to NAV!

[spectoacc] 11/12/2020 14:02

The buy-back is back, as expected - just £7.5m remaining, but at same time as oil gone well up, £ been on the slide. Fancy RSE to go higher.

[spectoacc] 30/10/2020 16:56

Posted without comment:


"Discontinuation Resolution

The Company's articles of incorporation require the Directors to propose to Shareholders a special resolution for the winding up of the Company if, on 29 October 2020, both of the following were true:

(a) the trading price for the Ordinary Shares had not met or exceeded £14.70 at any time following the Company's initial admission to listing on 29 October 2013; and

(b) the Company's "Invested Capital Target Return" had not been met.

The Company's "Invested Capital Target Return" is a gross internal rate of return of 8 per cent. on the capital raised in the Company's initial public offering from the date of commitment or investment of the relevant portion of that capital to 29 October 2020.

The Company's all time high trading price as at 29 October 2020 was £13.70 per ordinary share and the Company has delivered a gross internal rate of return of -16 per cent. on the capital raised in its initial public offering, calculated from the date of commitment or investment of the relevant portion of that capital to 29 October 2020.

Accordingly, the Company must now convene an extraordinary general meeting at which a special resolution will be proposed for the winding up of the Company (the "Discontinuation Resolution"). The Company's articles require that the extraordinary general meeting must be held by 10 December 2020 and a circular including the notice of the meeting will be dispatched to shareholders in the near future.

Shareholders should note that as the Discontinuation Resolution is a special resolution, it would require 75 per cent. of the votes cast on the resolution to be in favour to pass. The Company has received an irrevocable undertaking from its largest shareholder, AKRC Investments, LLC ("AKRC"), which holds approximately 31 per cent. of the Company's shares in issue on the date of this Circular, to vote against the Discontinuation Resolution. There are no circumstances in which AKRC can unilaterally revoke its voting undertaking. Further, affiliates of RIGL Holdings, LP, the Company's investment manager (the "Investment Manager"), which hold approximately 7 per cent. of the Company's shares in issue have also informed the Company that they intend to vote against the Discontinuation Resolution. Accordingly, although the Company is required to propose the Discontinuation Resolution to shareholders, it will not pass."

[solonic] 19/8/2020 13:03

Spectoacc you have a touching, if naive, belief in the robustness and validity of Net Asset Values. If you had worked in a significant way in the corporate field you would realise that they are, in fact, quite subjective and often only reflect what the management wishes shareholders to believe. Corporate valuation is not a science no matter what you think.