REG - Riverstone Energy Ld - 2Q18 Quarterly Portfolio Valuations
RNS Number : 2336WRiverstone Energy Limited31 July 2018- THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION -
Riverstone Energy Limited Announces 2Q18 Quarterly Portfolio Valuations
London, UK (31 July 2018) - Riverstone Energy Limited ("REL") announces its quarterly portfolio summary as of 30 June 2018, inclusive of updated quarterly unaudited fair market valuations:
Current Portfolio
Target Basin
Gross Committed Capital ($mm)
Invested
Capital ($mm)
Gross Realised
Capital ($mm)[1]
Gross Unrealised Value
($mm)
Gross Realised Capital & Unrealised Value ($mm)
30 Jun 2018 Gross MOIC[2]
31 Mar 2018
Gross MOIC2
Hammerhead Resources
Deep Basin (Canada)
$307
$295
$23
$508
$531
1.8x
1.9x
Centennial
Permian (U.S.)
268
268
172
278
450
1.7x
1.7x
ILX III
Deepwater GoM (U.S.)
200
131
-
183
183
1.4x
1.2x
Liberty II
Bakken, PRB (U.S.)
142
142
-
177
177
1.3x
1.3x
Carrier II
Eagle Ford & Permian (U.S.)
133
110
-
131
131
1.2x
1.2x
RCO[3]
North America
125
87
82
4
86
1.0x
1.1x
CNOR
Western Canada
90
85
-
85
85
1.0x
1.0x
Meritage III[4]
Western Canada
67
39
-
77
77
2.0x
1.8x
Fieldwood
GoM Shelf (U.S.)
82
81
3
65
68
0.8x
0.2x
Castex 2014
Gulf Coast Region (U.S.)
67
44
-
44
44
1.0x
1.0x
Eagle II
Mid-Continent (U.S.)
67
62
-
37
37
0.6x
0.8x
Sierra
Mexico
38
14
-
33
33
2.4x
2.4x
Total Current Portfolio[5]
$1,585
$1,356
$280
$1,623
$1,903
1.4x
1.4x
Realisations
Target Basin
Gross Committed Capital ($mm)
Invested
Capital ($mm)
Gross Realised
Capital ($mm)1
Gross Unrealised Value
($mm)
Gross Realised Capital & Unrealised Value ($mm)
30 Jun 2018 Gross MOIC2
31 Mar 2018
Gross MOIC2
Rock Oil[6]
Permian (U.S.)
114
114
229
11
240
2.1x
2.1x
Three Rivers III
Permian (U.S.)
94
94
196
9
205
2.2x
2.2x
Total Realisations5
$209
$209
$425
$19
$444
2.1x
2.1x
Withdrawn Commitments and Impairments[7]
59
59
1
-
1
0.0x
0.0x
Total Investments5
$1,853
$1,624
$706
$1,642
$2,348
1.4x
1.4x
Cash and Cash Equivalents
$236
Total Investments & Cash and Cash Equivalents5
$1,878
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:
Brian Potskowski
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 30 June 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 $706 million of capital realised to date, $410 million is the return of the cost basis, and the remainder is profit.
[2] 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.
[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 and impairments consist of Castex 2005 ($48 million), Origo ($9 million), and CanEra III ($1 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.ENDPFUGMGFNGGVGRZZ
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