REG - Riverstone Energy Ld - Portfolio Update
Tue 07:00
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RNS Number : 0025G Riverstone Energy Limited 04 November 2025
THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION
Riverstone Energy Limited Announces 3Q25 Quarterly Portfolio Valuations &
NAV
London, UK (4 November 2025) - Riverstone Energy Limited (the "Company") is
issuing this Interim Management Statement ("IMS") for the period from 1 July
2025 to 30 September 2025 (the "Period").
Highlights
· Key Financials (unaudited)
o NAV as at 30 September 2025 $363 million (£271million) 1 (#_edn1)
o NAV per share as at 30 September 2025 $14.77 / £11.00(1)
o Loss for Period ended ($8.0 million)
o Basic loss per share for Period ended (72.61 cents)
o Market capitalisation as at 30 September 2025 $297 million(1) (£221 million)
o Share price as at 30 September 2025 $12.08(1) / £9.00
· As of 30 September 2025, the Company had a NAV per share of $14.77
(£11.00) resulting in a 2 per cent drop in USD NAV per share while converted
GBP NAV per share remained unchanged when compared to the 30 June NAV per
share figures. The converted USD and listed GBP quarter end closing share
price was $12.08 (£9.00), an increase of 10 & 13 per cent., respectively,
compared to 30 June 2025.
· During the Period, the Company had $226.4 million of realisations
from Permian Resources ($135.3 million), Whitecap Resources ($65.2 million)
and Solid Power ($25.9 million) and subsequent to the Period end, the Company
announced its first compulsory share redemption of £190 million under its
shareholder approved managed wind down process.
· The Company finished the Period with a cash balance of $276 million.
· On 21 October 2025, the Company announced the proposed sale of 100
per cent. of its interest in Onyx. Net proceeds to the Company are expected
to be approximately $48 million, net of estimated transaction costs, payable
in cash at completion which is anticipated to occur in Q1 2026.
Managed Wind-Down
On 22 August 2025, following Shareholder approval at the EGM, the Company
entered into a Managed Wind-Down process. As a consequence, the Company's
investment objective and policy have been amended to recognise the orderly
realisation and timely return of capital to Shareholders as the Company's main
objective. During the Managed Wind-Down, the Company will seek to
progressively realise its existing investments and return capital to
Shareholders through compulsory redemptions, while ceasing new investments.
The initial Adjustment Payment due by the Company on entering the Managed
Wind-Down of $21.2 million, was paid on 8 September 2025, and was calculated
at 7.5 per cent. on the combined value as at 30 June 2025 of the cash balances
and the remaining unsold publicly listed investments as at the commencement of
the Managed Wind-Down period. Subsequent Adjustment Payments due to the
Investment Manager arising from the cash dividend distributions received by
the Company from its investment portfolio during the Managed Wind-Down period
and from the orderly realisation of the remaining private portfolio during
this time will also be calculated at 7.5 per cent. on the cash proceeds
received by the Company. All Adjustment Payments will be calculated so as to
avoid double counting, such that no subsequent Adjustment Payments have
actually arisen on the later disposal of the Company's unsold publicly listed
investments held as at the commencement of the Managed Wind-Down period.
Richard Horlick, Chair of the Board of Riverstone Energy Limited, commented:
"I'm pleased to report that following the EGM vote in favour of a Managed
Wind-Down in August, the Company has acted swiftly with the Investment Manager
to sell all the publicly held investments. In addition, the Investment
Manager has signed the sale of the Onyx investment - which is forecast to
close in Q1 2026. It is noteworthy that these four holdings, in aggregate,
were sold above the 30 June holding values. The Company has, as a consequence,
announced its first compulsory share repurchase of £190 million. The Company
will continue to focus on the return of further capital to shareholders and
together with the Investment Manager seek to focus on the value of its
remaining decarbonisation assets."
David M. Leuschen and Pierre F. Lapeyre Jr., Co-Founders of Riverstone, added:
"We have recently finalised the signing of the sale agreement for the Onyx
investment which resulted in a small uplift on the existing mark, in addition
to concluding exits from all the conventional, publicly held energy assets.
The remaining decarbonisation assets remain strategically positioned for long
term relevance. As the Company progresses through its Managed Wind-Down, we
are concentrating on ensuring capital preservation and timely realisations of
remaining value."
Current Portfolio - Conventional
Investment Gross Committed Capital ($mm) Invested Gross Realised Gross Unrealised Value Gross Realised Capital & Unrealised Value ($mm)(3) 30 Jun 2025 30 Sep 2025
Capital ($mm) Capital ($mm) 2 (#_edn2) ($mm) 3 (#_edn3) Gross MOIC(3) Gross MOIC(3)
Onyx (Private) 66 60 121 48 169 2.80x 2.82x
Total Current Portfolio - Conventional(4) $66 $60 $121 $48 $169 2.80x 2.82x
Current Portfolio - Decarbonisation
Investment Gross Committed Capital ($mm) Invested Gross Realised Gross Unrealised Value Gross Realised Capital & Unrealised Value ($mm)(3) 30 Jun 2025 30 Sep 2025
Capital ($mm) Capital ($mm)(2) ($mm)(3) Gross MOIC(3) Gross MOIC(3)
GoodLeap (formerly Loanpal) 25 25 2 23 25 1.00x 1.00x
(Private)
Infinitum (Private) 27 27 - 16 16 0.65x 0.60x
Group14 (Private) 4 4 - 1 1 0.25x 0.25x
Total Current Portfolio - Decarbonisation 4 (#_edn4) $56 $56 $2 $40 $42 0.78x 0.75x
Total Current Portfolio - Conventional & Decarbonisation(4) $122 $116 $123 $88 $211 1.18x 1.82x
Cash and Cash Equivalents $276
Total Market Capitalisation $297
Realisations
Investment (Initial Investment Date) Gross Committed Capital ($mm) Invested Gross Realised Gross Unrealised Value Gross Realised Capital & Unrealised Value ($mm)(3) 30 Jun 2025 30 Sep 2025
Capital ($mm) Capital ($mm)(2) ($mm)(3) Gross MOIC(3) Gross MOIC(3)
Permian Resources (16 Jul 2016) 268 268 370 - 370 1.39x 1.38x
Veren (27 Mar 2014) 296 296 266 - 266 0.87x 0.90x
Rock Oil 5 (#_edn5) (12 Mar 2014) 114 114 239 0 239 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 6 (#_edn6) (17 Apr 2015) 40 40 88 - 88 2.20x 2.20x
RCO 7 (#_edn7) (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
Solid Power (22 Mar 2021) 48 48 26 0 26 0.33x 0.55x
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(4) $1,431 $1,431 $1,668 $0 $1,668 1.23x 1.17x
Withdrawn Commitments and Investment Write-Offs(4)(, 8 (#_edn8) ) 477 477 10 - 10 0.02x 0.02x
Total Investments(4) $2,030 $2,024 $1,800 $89 $1,889 0.93x 0.93x
Total Investments & Cash and Cash Equivalents $365
Draft Unaudited Net Asset Value $363
Total Shares Repurchased to-date 37,075,536 at average price per share of £4.44 ($5.67)
Current Shares Outstanding 24,591,380
Equity markets strengthen as concerns about debt markets rise
Global financial markets performed strongly in the third quarter of 2025,
balancing heavy investment into AI and continued investor optimism, against
ongoing geopolitical uncertainty, a mixed picture on global growth and an
increasing focus on the level of government indebtedness in many developed
countries. The quarter closed with concerns over private credit also starting
to impact debt markets. Despite this, equity markets remained well supported
with the S&P 500 ending the quarter up 8.1 per cent. and the FTSE all
share up 6.9 per cent. in local currency terms. Emerging markets also
performed well, up 10.6 per cent. in Q3, buoyed by a weaker dollar. Corporate
earnings remained robust, but energy prices softened slightly with oil and
natural gas prices both declining in the quarter.
The Federal Reserve's first rate cut of the year in September provided
short-term support to risk assets, although policymakers have remained
cautious amid persistent inflationary concerns and renewed fiscal expansion.
The "One Big Beautiful Bill Act" injected stimulus into the US economy, but
investors continue to weigh its potential inflationary implications alongside
the effects of elevated tariffs on global trade and manufacturing costs.
In the energy sector, West Texas Intermediate (WTI) crude fell from $65.11 per
barrel at the start of the quarter, to $62.37 by 30 September. This was driven
by slowing demand, an unwinding of previous OPEC production cuts and high
inventories. Shale producers also maintained steady output gains.
Natural gas markets remained subdued. Henry Hub prices fell slightly in the
quarter from $3.46 to $3.30 as an increase in European gas demand was more
than offset by a reduction in demand from Asia and concerns about potential
future LNG supply overhang next year.
Overall, the quarter was defined by diverging regional trends: economic
resilience in North America, fragile industrial output in Europe, and uneven
recovery in Asia. Against this backdrop, investor focus has shifted toward
earnings quality, cost control and capital discipline, themes that also
characterised performance within the energy sector.
Realisations
Whitecap Resources (fka Veren)
On 11 September 2025, the Company sold its entire position in Whitecap
Resources, a leading Canadian energy company focussed on the responsible
development of oil and natural gas assets in the Western Canadian Sedimentary
Basin for CAD10.29 per share. The gross per share price received represents a
1.9 per cent. discount to the closing price on 11 September 2025 and an
approximate 1.0 per cent. premium to the 30-day volume-weighted average price.
The approximately 8.72 million-share block sale generated approximately CAD
90 million (approximately $65
million) in gross proceeds for the Company (excluding applicable taxes and
expenses), resulting in an aggregate
Gross MOIC of 0.90x, inclusive of previously realised proceeds.
In total, the Company will have received cumulative proceeds of approximately
$266 million, representing a 0.90x Gross MOIC on $296 million of invested
capital.
Permian Resources
On 15 September 2025, Permian Resources Corporation announced the pricing of
the previously announced underwritten public offering of an aggregate of
46,112,899 shares of its Class A common stock by certain stockholders of
Permian Resources at a price of $13.53 per share. The Company participated
in the offering alongside affiliates of Riverstone Investment Group LLC,
amongst others.
In total, the Company will have received cumulative proceeds of approximately
$370 million, representing a 1.38x Gross MOIC on $268 million of invested
capital.
Solid Power
On 19 September 2025, the Company disposed of all of its shares in Solid
Power, Inc., a Louisville, Colorado-based producer of all solid-state
batteries for electric vehicles. The block sale of shares generated
approximately $25.9 million in gross proceeds for the Company (excluding
applicable taxes and expenses), representing a significant increase on the net
asset value of Solid Power as at 30 June 2025 of $16.0 million.
On 8 October 2025, the Company disposed of all of its remaining warrants in
Solid Power, Inc. The sale of warrants generated approximately $343,000 in
gross proceeds for the Company (excluding applicable taxes and expenses).
Following completion of this transaction, the Company has fully exited its
investment in Solid Power.
In total, the Company will have received cumulative proceeds of approximately
$25 million, representing a 0.55x Gross MOIC on $48 million of invested
capital.
Onyx
On 21 October 2025, the Company announced the proposed sale of 100 per cent.
of its interest in Onyx to ResInvest Group, a privately owned trading and
investment company, supplying key commodities for global markets. Net proceeds
to the Company are expected to be approximately $48 million, net of estimated
transaction costs, payable in cash at completion. The transaction is subject
to customary closing conditions and completion is anticipated to take place in
Q1 of 2026.
In total and with the announcement of the proposed sale of Onyx, the Company
will have received cumulative proceeds of approximately $169 million,
representing a 2.82x Gross MOIC on $60 million of invested capital.
Remaining Portfolio
GoodLeap
The valuation multiple for GoodLeap held at 1.00x Gross MOIC for the third
quarter of 2025. In 2024, the company raised over $7 billion across multiple
financing activities for its new and existing products, bringing its total to
more than $30 billion in sustainable financing since inception. The company's
valuation remains supported by performance in its home improvement and solar
leasing businesses, with $4.6 billion of home efficiency loan volume expected
in 2025, up from $3.2 billion in 2024.
The company, however, faces ongoing litigation and tariff-related cost
pressures, with 2025 EBITDA forecasts revised downward by $35 million due to
higher-than-expected legal expenses. The One Big Beautiful Bill Act, signed
into law in July 2025, will phase out elements of the 30 percent Solar
Investment Tax Credit starting in early 2026, though management expects
limited near-term impact given the extended timeline for the credit reduction.
Despite these challenges, GoodLeap continues to deliver strong operating
performance, with Q2 revenue of approximately $88 million and core adjusted
EBITDA of $13 million, alongside rising transaction volumes across home
improvement, mortgage, and payments products. The company remains focused on
accelerating growth in its home efficiency business, maintaining cost
discipline, and preparing for a potential IPO once market conditions improve.
Infinitum
Infinitum's valuation multiple remains broadly in line with the previous
quarter, adjusting slightly from 0.65x to 0.60x Gross MOIC. This reflects the
company's steady execution against its internal business plan and increasing
commercial traction with strategic, long-term partners. While performance
remains in line with expectations, the company remains vigilant in light of
ongoing geopolitical uncertainty, which could present future challenges.
Group 14
The valuation multiple for Group14 remains at 0.25x Gross MOIC for the third
quarter of 2025. In August, the company closed a $463 million Series D round
led by SK Inc., with continued support from major investors including Porsche
Investments, ATL, OMERS, Decarbonization Partners, Lightrock Climate Impact
Fund, and Microsoft's Climate Innovation Fund, bringing total capital raised
to date to more than $1 billion. Group14 also acquired the remaining 75 per
cent. stake in its South Korea joint venture with SK, expanding its
manufacturing footprint in Asia.
The company continues to advance its BAM-2 Module 1 production in Washington
and ramp its commercial pipeline, with more than 100 customers in
qualification and recent collaborations with BASF and leading EV and consumer
electronics manufacturers. However, the company still faces production and
commissioning challenges. There have been several delays, primarily related to
factory site issues, which have pushed back the EV-scale start of production
for the Washington plant.
Despite these near-term challenges, Group14 remains positioned to benefit from
strong global demand for high-performance battery materials and sustained
investor confidence in its proprietary silicon-carbon anode technology, which
offers significant energy density gains over conventional graphite-based
batteries.
Outlook
At quarter-end, the Company's net asset value stood at $363 million. The
Company's disciplined approach to capital management, continues to provide
resilience against market volatility as the Managed Wind-Down progresses.
LEI: 213800HAZOW1AWRSZR47
About Riverstone Energy Limited:
The Company is a closed-ended investment company which invests in the energy
industry. Its ordinary shares are listed on the London Stock Exchange, trading
under the symbol RSE. The Company has 4 active investments spanning
decarbonisation, renewable energy and power in the Continental U.S. and
Europe.
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 (mailto:LPRelations@RiverstoneLLC.com)
Deutsche Numis - Corporate Broker:
Hugh Jonathan
Matt Goss
+44 (0) 20 7260 1000
Ocorian Administration (Guernsey) Limited -
Company Secretary:
Birgitte Horn
OAGLCoSec@ocorian.com (mailto:OAGLCoSec@ocorian.com)
Note:
The Investment Manager is charged with proposing the valuation of the assets
held by the Company through Riverstone Energy Investment Partnership, LP (the
"Partnership"). The Partnership has directed that securities and instruments
be valued at their fair value. The Company'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 the Company'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 the Company's valuation policy, the Partnership's proportion of the total
holding will follow the Company's valuation policy. There were no valuation
adjustments recorded by the Company as a result of differences in IFRS and
U.S. Generally Accepted Accounting Policies for the period ended 30 September
2025 or in any period to date. Valuations of the Company'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 (#_ednref1) GBP:USD FX rate of 1.29607 as of 30 September 2025
2 (#_ednref2) Gross realised capital is total gross proceeds realised on
invested capital. Of the $1,887 million of capital realised to date, $1,327
million is the return of the cost basis,
and the remainder is profit.
3 (#_ednref3) 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). In connection with the Managed
Winddown approved by shareholders 22 August 2025, the Investment Manager's
performance allocation arrangements under the existing IMA ceased to apply and
no further performance allocation would be paid under the Managed Winddown. In
addition, there was a management fee of 1.5 per cent. of net assets (including
cash) per annum, which was reduced to 1.0 per cent. of net assets (excluding
cash) per annum effective 22 August 2025 with the shareholder approval of the
Managed Winddown.. 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, the Company 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 (#_ednref4) Amounts vary due to rounding
5 (#_ednref5) The unrealised value of Rock Oil investment is made up of
funds held in escrow from the sale of rights to mineral acres
6 (#_ednref6) Midstream investment
7 (#_ednref7) Credit investment
8 (#_ednref8) Withdrawn commitments and investment write-offs consist of
Origo ($9 million) and CanEra III ($1 million), and impairments consist of
Liberty II ($142
million), Fieldwood ($80 million), Eagle II ($62 million), Castex 2005 ($48
million), Tritium ($25 million), T-Rex ($21 million), Enviva ($21 million)
Anuvia Plant Nutrients ($20 million), FreeWire ($14 million), Our Next Energy
($12 million), Hyzon ($10 million) and Ionic I & II ($3 million)
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