REG - Riverstone Energy Ld - 3Q24 Quarterly Portfolio Valuations & NAV
21/10/2024 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241021:nRSU8559Ia&default-theme=true
RNS Number : 8559I Riverstone Energy Limited 21 October 2024
- THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION
Riverstone Energy Limited Announces 3Q24 Quarterly Portfolio Valuations &
NAV
London, UK (21 October 2024) - Riverstone Energy Limited ("REL" or the
"Company") announces its quarterly portfolio summary as of 30 September 2024,
inclusive of updated quarterly unaudited fair market valuations, as well as
the quarterly changes in NAV and NAV per share. The Company's NAV as of 30
September 2024 was $401 million, representing a decrease of approximately 13
per cent. from 30 June 2024. As of 30 September 2024, REL had a NAV per share
of $15.57 (£11.63), representing a decrease in USD and GBP of 8 and 13 per
cent., respectively, compared to the 30 June 2024 NAV per share.
Current Portfolio - Conventional
Investment (Public/Private) Gross Committed Capital ($mm) Invested Gross Realised Gross Unrealised Value Gross Realised Capital & Unrealised Value ($mm) 30 Jun 2024 30 Sep 2024
Capital ($mm) Capital ($mm) 1 ($mm) 2 Gross MOIC(2) Gross MOIC(2)
Permian Resources 3 (Public) 268 268 231 137 368 1.46x 1.37x
Onyx (Private) 66 60 121 64 185 3.10x 3.10x
Veren(3, 4 ) (Public) 296 296 199 51 250 0.89x 0.85x
Total Current Portfolio - Conventional - Public 5 $564 $564 $430 $188 $618 1.16x 1.10x
Total Current Portfolio - Conventional - Private(5) $66 $60 $121 $64 $185 3.10x 3.10x
Total Current Portfolio - Conventional - Public & Private(5) $630 $624 $551 $252 $803 1.35x 1.29x
Current Portfolio - Decarbonisation
Investment (Public/Private) Gross Committed Capital ($mm) Invested Gross Realised Gross Unrealised Value Gross Realised Capital & Unrealised Value ($mm) 30 Jun 2024 30 Sep 2024
Capital ($mm) Capital ($mm)(1) ($mm)(2) Gross MOIC(2) Gross MOIC(2)
Infinitum 27 27 - 30 30 1.10x 1.10x
(Private)
GoodLeap (formerly Loanpal) (Private) 25 25 2 23 25 1.00x 1.00x
Solid Power(3) (Public) 48 48 - 10 10 0.25x 0.21x
Group14 (Private) 4 4 - 4 4 1.00x 1.00x
Enviva(3) (Public) 22 22 0 - 0 0.03x 0.02x
Hyzon Motors(3) (Public) 10 10 - - - 0.03x 0.00x
Tritium DCFC(3)(, 6 ) (Public) 25 25 1 - 1 0.10x 0.03x
Ionic I & II (Samsung Ventures) (Private) 3 3 - - - 0.00x 0.00x
Our Next Energy 13 13 - - - 0.00x 0.00x
(Private)
Total Current Portfolio - Decarbonisation - Public(5) $105 $105 $1 $10 $11 0.15x 0.11x
Total Current Portfolio - Decarbonisation - Private(5) $71 $71 $2 $57 $59 0.83x 0.83x
Total Current Portfolio - Decarbonisation - Public & Private(5) $176 $176 $3 $67 $70 0.42x 0.40x
Total Current Portfolio - Conventional & Decarbonisation - Public & $806 $800 $554 $319 $873 1.11x 1.09x
Private(5)
Cash and Cash Equivalents $83
Total Liquidity (Cash and Cash Equivalents & Public Portfolio) $281
Total Market Capitalisation $270
Realisations
Investment (Initial Investment Date) Gross Committed Capital ($mm) Invested Gross Realised Gross Unrealised Value Gross Realised Capital & Unrealised Value ($mm) 30 Jun 2024 30 Sep 2024
Capital ($mm) Capital ($mm)(1) ($mm)(2) Gross MOIC(2) Gross MOIC(2)
Rock Oil 7 (12 Mar 2014) 114 114 238 1 239 2.09x 2.09x
Three Rivers III (7 Apr 2015) 94 94 204 - 204 2.17x 2.17x
ILX III (8 Oct 2015) 179 179 172 - 172 0.96x 0.96x
Meritage III 8 (17 Apr 2015) 40 40 88 - 88 2.20x 2.20x
RCO 9 (2 Feb 2015) 80 80 80 - 80 0.99x 0.99x
Carrier II (22 May 2015) 110 110 67 - 67 0.61x 0.61x
Pipestone Energy (formerly CNOR) (29 Aug 2014) 90 90 58 - 58 0.64x 0.64x
Sierra (24 Sept 2014) 18 18 38 - 38 2.06x 2.06x
Aleph (9 Jul 2019) 23 23 23 - 23 1.00x 1.00x
Ridgebury 18 18 22 - 22 1.22x 1.22x
(19 Feb 2019)
Castex 2014 52 52 14 - 14 0.27x 0.27x
(3 Sep 2014)
Total Realisations(5) $819 $819 $1,005 $1 $1,006 1.23x 1.23x
Withdrawn Commitments and Investment Write-Offs 10 405 405 9 - 9 0.02x 0.02x
Total Investments(5) $2,030 $2,024 $1,568 $320 $1,888 0.96x 0.93x
Total Investments & Cash and Cash Equivalents $403
Draft Unaudited Net Asset Value $401
Total Shares Repurchased to-date 58,701,911 at average price per share of £6.59 ($8.36)
Current Shares Outstanding 25,778,153
Further information on REL's five largest positions, which account for ~95 per
cent. of the portfolio's gross unrealised value is set forth below:
Permian Resources
The valuation for Permian Resources (NYSE: PR) decreased from 1.46x to 1.37x
Gross MOIC in the third quarter of 2024. In Q3 2024, PR announced the closing
of its acquisition of c. 29,500 net leasehold and c. 9,900 royalty interest
acres and related midstream infrastructure from Occidental (NYSE: OXY). The
company announced an increase to its quarterly base dividend from $0.06 per
share to $0.15 per share. PR also announced the pricing of $1bn 6.25 per cent.
senior notes due 2033 to redeem its 7.75 per cent. senior notes due 2026, fund
a portion of its recent acquisition of assets from OXY and repay amounts
outstanding under its credit facility. The pro-forma company has hedged
approximately 29 per cent. of forecasted 2024 crude oil production at a
weighted average price of $74.57 per barrel and 20 per cent. of forecasted
2024 natural gas production at a weighted average price of $3.79 per mcf.
Onyx
The valuation multiple for Onyx was unchanged during the third quarter,
holding at 3.10x Gross MOIC. CDS margins have reduced materially since 2023
due to high gas storage levels and high wind / solar generation; however,
since last quarter, CDS margins have moved in a positive direction.
Decommissioning at Farge has commenced and is advancing smoothly.
Additionally, Onyx received a withholding tax exemption certificate for OSIM
II from BZSt (German federal tax office). The management team continues to
work on organic growth initiatives, including the implementation of
operational performance improvements and the development of projects related
to the energy transition.
Veren (formerly Crescent Point Energy / Hammerhead Energy)
Veren's valuation decreased from 0.89x to 0.85x Gross MOIC during the third
quarter of 2024. Since closing the acquisition, Veren's shares have traded
down 23.9 per cent. compared to a 11.9 per cent. decrease in its peer group,
and a 16.4 per cent. decrease in WTI over the same period. In July 2024, Veren
announced its Q2 2024 results, which were in line with guidance, but below
market expectations. Veren's unchanged five-year plan is targeting 6 per cent.
production CAGR through 2028, driven by the Montney (8 per cent. CAGR) and
Duvernay (11 per cent. CAGR), and targeting corporate production of 260
mboe/d. In Q3 2024, Veren delivered its quarterly dividend of C$0.115 per
share, implying an annualised dividend yield of 5.3 per cent.
Infinitum
The valuation multiple for Infinitum held at 1.10x Gross MOIC for the third
quarter of 2024. In July, the company closed an extension to its Series E,
with $35mm of additional funding from Marunouchi Innovation Partners and Rice
Investment Group to bring the total round to $220mm. The round will be used to
scale the company to meet customer demand and drive decarbonization.
Additionally, the company's new facility in Saltillo, Mexico came online this
summer. The company's Aircore EC motor won 2024 Sustainability Product of the
Year Award at the 2024 Sustainability Awards hosted by Business Intelligence
Group, the third year in a row they have been honored at the Sustainability
Awards.
GoodLeap (formerly Loanpal)
The valuation multiple for GoodLeap held at 1.00x Gross MOIC for the third
quarter of 2024. While short-term macroeconomic environment is still creating
business headwinds, the interest rate environment has begun to improve given
the Federal Reserve's 50-basis point interest rate cut announced in September.
The company also launched its Third-Party Ownership product via its
partnership with Palmetto in the quarter.
Other Investments
Solid Power
On 20 September 2024, Solid Power announced it was selected by the U.S.
Department of Energy (DOE) Office of Manufacturing and Energy Supply Chains to
begin award negotiations for up to $50 million in federal funding under the
Bipartisan Infrastructure Law. With this project, Solid Power intends to
install the first globally known continuous manufacturing process of
sulfide-based solid electrolyte materials for advanced all-solid-state
batteries (ASSBs) and expand its electrolyte production capabilities at its
Thornton, CO facility.
Group14
On 23 September 2024, Group14 announced it had been selected for an award
negotiation of up to $200 million by the U.S. DOE's Office of Manufacturing
and Energy Supply Chains as part of the second set of projects funded by the
Bipartisan Infrastructure Law to expand domestic battery manufacturing for
electric vehicles and the electrical grid. The DOE award would allow Group14
to build a silane factory using its proprietary intellectual property which
produces silane at a significantly reduced capital and energy requirement from
the conventional process.
Enviva
On 4 October 2024, following the filing of Enviva's Form 8-K related to the
Amended Joint Chapter 11 Plan of Reorganization of Enviva Inc. ("Amended
Plan"), the New York Stock Exchange (NYSE) Regulation reached its decision
that Enviva is no longer suitable for listing pursuant to NYSE Listed Company
Manual and delisted the company. In reaching its delisting determination,
NYSE Regulation notes that pursuant to the Amended Plan, existing equity
interests of the company, including REL's equity interests, will be cancelled
and holders thereof will receive no recovery.
Tritium DCFC
At 30 September 2024, REL's debt investment was written down from 0.62x Gross
MOIC to 0.03x Gross MOIC. On 8 August 2024, Exicom Tele-systems Limited
(NSE: EXICOM), (along with its subsidiaries together referred to as,
"Exicom"), India's largest EV charger manufacturer, announced that it had
entered into a definitive agreement under which it will acquire business and
assets of Tritium. Based on the terms of the definitive agreement, the Company
does not expect to receive any further proceeds regarding its loan investment
as a result of the ongoing liquidation of Tritium.
LEI: 213800HAZOW1AWRSZR47
About Riverstone Energy Limited:
REL is a closed-ended investment company which invests in the energy industry.
REL's ordinary shares are listed on the London Stock Exchange, trading under
the symbol RSE. REL has 10 active investments spanning decarbonisation, oil
and gas, renewable energy and power in the Continental U.S., Western Canada,
Europe and Australia.
REL shareholders should note that the Company's investment Crescent Point
Energy Corp. was rebranded as Veren Inc. on 10 May 2024 and now trades on the
TSX and NYSE under its new ticker symbol "VRN".
For further details, see www.RiverstoneREL.com (http://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:
LPRELATIONS@RIVERSTONELLC.COM
+44 (0) 20 3206 6300
Deutsche Numis - Corporate Broker:
Hugh Jonathan
Matt Goss
+44 (0) 20 7260 1000
Ocorian Administration (Guernsey) Limited -
Company Secretary:
Birgitte Horn
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 September 2024
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 Performance Review Team ("PRT") as part of the valuation
process. The PRT was formed to serve as a single structure overseeing the
existing Riverstone portfolio with the goal of improving operational and
financial performance.
The Board reviews and considers the valuations of the Company's investments
held through the Partnership.
1 Gross realised capital is total gross proceeds realised on invested
capital. Of the $1,567 million of capital realised to date, $1,198 million is
the return of the cost basis, and the remainder is profit.
2 Gross Unrealised Value and Gross MOIC (Gross Multiple of Invested Capital)
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 applicable
gross profits in accordance with the revised terms announced on 3 January
2020, but effective 30 June 2019. Since there was no netting of losses against
gains before the aforementioned revised terms, the effective carried interest
rate on the portfolio as a whole will be greater than 20 per cent. No further
carried interest will be payable until the $135.8 million of realised and
unrealised losses to date at 30 September 2024 are made whole with future
gains. Since REL has not yet met the appropriate Cost Benchmark at 30
September 2024, $25.6 million in performance allocation fees that would have
been due under the prior agreement were not accrued. In addition, there is a
management fee of 1.5 per cent. of net assets (including cash) 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 Represents closing price per share in USD for publicly traded shares
Permian Resources Corporation (formerly Centennial Resource Development, Inc.)
(NASDAQ:PR - 30-09-2024: $13.61 per share / 30-06-2024: $16.15 price per
share); Enviva, Inc. (NYSE:EVA - 30-09-2024: n/a / 30-06-2024: $0.43 price per
share); Solid Power, Inc. (NASDAQ:SLDP - 30-09-2024: $1.35 per share /
30-06-2024: $1.65 per share); Hyzon Motors, Inc. (NASDAQ:HYZN - 30-09-2024:
$2.43 per share / $0.321 as of 30-06-2024 pre 1:50 stock split); and Veren
(NASDAQ:VRN - 30-09-2024: CAD 8.33 per share / 30-06-2024: CAD 10.79 per
share).
4 Veren shares were acquired via realisation of Hammerhead Energy
5 Amounts vary due to rounding
6 The Tritium investment consists of publicly traded shares related to the
original SPAC Sponsor investment and a further backstop funding (unrealised
valued at $0.0 million at 30 September 2024) as well as an additional private
loan investment (unrealised value at nil with $0.9 million of realised value
at 30 September 2024)
7 The unrealised value of Rock Oil investment is made up of funds held in
escrow from the sale of rights to mineral acres
8 Midstream investment
9 Credit investment
10 Withdrawn commitments consist of Origo ($9 million) and CanEra III ($1
million), and investment write-offs consist of Liberty II ($142 million),
Fieldwood ($80 million), Eagle II ($62 million), Castex 2005 ($48 million),
T-Rex ($21 million), Anuvia ($20 million) and FreeWire ($14 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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END PFUUKRBRSRURAAARecent news on Riverstone Energy
See all newsREG - Riverstone Energy Ld - Total Voting Rights
AnnouncementREG - Riverstone Energy Ld - Transaction in Own Shares
AnnouncementREG - Riverstone Energy Ld - Transaction in Own Shares
AnnouncementREG - Riverstone Energy Ld - Transaction in Own Shares
AnnouncementREG - Riverstone Energy Ld - Notice of AGM
Announcement