Riverstone Energy Share Discussion Threads

[brucie5] 22/2/2022 11:11

Port in a storm?

[spectoacc] 14/2/2022 11:28

Can't speak for DEC, but BP got a very large Russian exposure..

[brucie5] 14/2/2022 11:24

Strange to see this retracing rather than rising this morning... Except that even Dec and BP being hit....

[cousinit] 09/2/2022 18:38

I did manage to sell a chunk at about 570 when it popped on Tuesday morning last week (bought back since when it subsided a bit).

Other alternative is if it goes into run-off in such a way to reduce the management fees and the termination cost (especially as cornerstone investors look to have sold down recently?) but not sensing that's on the cards at this point. That would also hinge on the asset values being realistic!

[brucie5] 09/2/2022 17:20

Confirmed.

[brucie5] 09/2/2022 13:46

Possibility of a technical breakout today.
CountIT, that sounds sensible, given the difficulty of assessing the underlying assets.

On the other hand, it may turn out to be an investment which matures with time, as such value begins to prove itself. I intend to stay for a while.

[cousinit] 08/2/2022 19:56

I've said before that I'm no great fan of RSE so believe that it does warrant a reasonable discount, but probably around 25%. I think the IMA break costs, corporate governance more akin to UK best practice, comms and investment track record would likely need to be addressed to justify a share price near to NAV.

Obviously the buybacks could force the shares higher but there seem to have been willing sellers in size recently to keep a lid on it.

[grim] 08/2/2022 19:41

Confirm that no divis are paid

[tradingsun1] 08/2/2022 16:59

I've got a price target of 724p based on the chart. They do look undervalued, however green energy is not that profitable(!) and harder to value as part of a diversified mix of energy holdings. Am I right in thinking that no dividend has been paid by the company? ;-)

[brucie5] 08/2/2022 13:04

Lols, thanks, I just used a online converter, but having rechecked, of course you're right.
So at 40% NAV and with cash to buy back cheap shares...
While waiting for the market to understand the larger embedded value of its assets.
Do you have a target?

Edit: Questor, which I've just got sight of suggests of course that the NAV is hugely underestimated.

[hugepants] 08/2/2022 12:23

I think your converter is broken. $684M = £505M which is 918p per share. Discount still over 40%.

Good news this morning on the Pipestone sale and upping total allocation to £50M for the buyback

[brucie5] 08/2/2022 12:08

Well, I just bought in... Got 5.30.

[brucie5] 08/2/2022 09:38

Just been looking in. According to my converter $684m = £549mstg, as opposed to mcap of £278m = 50.6% discount.

Haven't got access to the Questor tip, but could anyone here kindly share the essential calcs?

Does look very oddly underpriced, though on reviewing the story, I can see it's done a bit of an ITM: overshot, mismanaged expectations, and come down very heavily in the energy collapse of 2020. Added to which the complexity of valuing all these different companies, especially the green transitional ones.

The chart does look a peach, though, and with the additional support of this highly unusual discount, and energy, to my mind, in a sweet spot. Particularly if it can indeed bridge the transition from fossil to green energy, as it seems to to intend.

I'd be interested to hear more views on this, and forgive me if I've got any of the above wrong.

B5.

[apollocreed1] 02/2/2022 01:00

@HugePants - Thanks for that calculation. I was searching the RNS for that figure and thought it was strange they didn't highlight NAV per share which is the main statistic that investors want to see.

[hugepants] 02/2/2022 00:14

The Q4 update was out yesterday. The NAV at end December was up to 917p per share by my calcs (NAV of $682M and 55M shares)

[hugepants] 27/1/2022 15:14

dlp6666, I've absolutely no idea.

There is a Q4 NAV update due. It's been released in January in previous years.

[bench2] 27/1/2022 12:41

Many thanks HP for posting Questor tip , he has a big following so it will be interesting to see whether the share price holds above 500p . The technical analysts will love the upward price break on high volume today .

[dlp6666] 27/1/2022 12:24

Do you think it's worth postponing a buy until the c.9% Questor spike has fallen away (maybe AKRC will sell into that), or would that be missing a trick and its better to get in straight away?

[hugepants] 27/1/2022 08:02

Tipped by Questor

[hugepants] 23/1/2022 22:28

Biggest shareholder AKRC now down to 14.5%. They've sold about 17% and not hurt the share price too much.



SolidPower (NASDAQ: SLDP) share price is quite heavily down since the listing but I can't figure out though if RSE are currently showing a paper loss or a paper gain. I suspect the former although it may not be too big a loss since the original $20M appeared to be at a favourable valuation.

They've invested $50.5M in total in SLDP which is about 7.5% of the NAV

Centennial Resource Development is doing well though at $7.44 and is about 15% of NAV. So I'd guess NAV is still well above £8 here.

They've still a lot of firepower left re the buyback but probably wisely waiting to see if AKRC force the price down.

[hugepants] 13/12/2021 12:01

A bit of a rise at end of last week. Thought it may have been the share buyback but no announcement. Discount to NAV still 40%+ so surely they should be buying back.

Portfolio breakdown is approx;
50% Oil & Gas
25% Green stuff
25% cash.

[hugepants] 09/11/2021 19:36

Biggest shareholders has sold 3.8%.


Good news is they've only 29.7% to go.

[hugepants] 08/11/2021 08:55

Another 700K bought back for £3.4M. By my calcs each £1M bought at this price adds 2p to NAV. So NAV must be up about 25p (to 838p) since they resumed buyback at end of October.
(and the 15% increase in Centennial share price since trading update will add another 20p)

[hugepants] 01/11/2021 11:42

I think the green stuff is the place to be. The renewables focused trusts tend to trade at close to NAV.

A big chunk bought back on Friday. 575K at 493p (39% discount to NAV).
If they can complete the full buyback at that price they'll increase NAV by 7.5% to 874p.