REG - Riverstone Energy Ld - Results for the half year ended 30 June 2025
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RNS Number : 7582W Riverstone Energy Limited 27 August 2025
LEI: 213800HAZOW1AWRSZR47
Riverstone Energy Limited
Results for the half year ended 30 June
2025
London, UK (27 August 2025) - Riverstone Energy Limited (the "Company")
announces its Half Year Results from 1 January 2025 to 30 June 2025 (the
"Period").
Summary Performance
30 June 2025
NAV $372 million (£271 million) 1 (#_edn1)
NAV per share $15.11 / £11.01(1)
Profit for Period ended $3.0 million
Basic earnings per share for Period ended 12.16 cents
Total liquidity (cash and cash equivalents & public portfolio) $285 million
Market capitalisation $270 million(1) (£197 million)
Share price $10.98(1) / £8.00
Highlights
§ As of 30 June 2025, the Company had a NAV per share of $15.11 (£11.01),
representing an increase in USD of 2 per cent. and a decrease in GBP of 7 per
cent., respectively, compared to the 31 December 2024 NAV per share.
§ Total net realisations and distributions received during the Period of $4.1
million: Permian Resources ($3.0 million) and Whitecap Resources ($1.1
million).
§ The Company ended the Period with a cash balance of $73.0 million and
remaining potential unfunded commitments of $6.2 million(2).
§ Since the initial announcement of the Share Buyback Programme on 1 May
2020, the Company has bought back a total of 37,075,536 ordinary shares at an
average price of approximately £4.44 per ordinary share, which has
contributed to the share price increase of over 3.6x from £2.20 to £8.00
over the period to 30 June 2025.
Investment Manager Outlook
§ The environment for conventional energy has become more challenging in
2025, with weaker macroeconomic sentiment, softer commodity prices and
persistent inflationary pressures. Against this backdrop the Investment
Manager has focused on opportunities to crystallise value. There were two
notable events in the period, with Veren completing its combination with
Whitecap Resources, while Permian Resources advanced its growth strategy with
two bolt-on acquisitions, including a $608 million deal with APA Corporation.
§ The investment climate for decarbonisation has deteriorated further,
particularly in the U.S. where policy and subsidy uncertainty has impacted
investor confidence. It has become apparent that renewable energy, even while
the long-term drivers remain strong, has entered a significant downturn. In
response, the Investment Manager is taking steps to preserve value and prepare
assets for orderly realisation in line with the recent shareholder vote to
place the Company into a managed wind-down process.
Richard Horlick, Chair of the Board of Riverstone Energy Limited, commented:
"While market conditions remain volatile, the portfolio has continued to make
operational progress. However, following a period of detailed review, the
Board proposed a managed wind-down of Riverstone Energy Limited, which was
approved by the Company's Shareholders at the EGM on 22 August 2025. This is
not a decision we took lightly, but we believe it offers the clearest and most
effective way to secure and return capital to our shareholders. The Board is
confident this approach provides the right framework to manage the Company
through its final phase."
David M. Leuschen and Pierre F. Lapeyre Jr., Co-Founders of Riverstone, added:
"We support the Board's decision to propose a managed wind-down of the Company
and our focus now is on maximising value from the portfolio during this final
phase. While the environment has been complex, the portfolio has demonstrated
resilience, particularly across our conventional energy holdings, and we are
confident that this will enable us to manage an efficient wind-down of the
Company's assets and deliver further realisations for Shareholders."
- Ends -
Riverstone Energy Limited's 2025 Interim Report is available to view at:
www.RiverstoneREL.com (http://www.RiverstoneREL.com) .
2Q25 Quarterly Portfolio Valuation
Previously, on 14 August 2025, the Company announced its quarterly portfolio
summary as of 30 June 2025, inclusive of updated quarterly unaudited fair
market valuations:
Current Portfolio - Conventional
Investment (Public/Private) Gross Committed Capital ($mm) Invested Gross Realised Gross Unrealised Value Gross Realised Capital & Unrealised Value ($mm) 31 Mar 2025 30 Jun 2025
Capital ($mm) Capital ($mm)(3) ($mm)(4) Gross MOIC(4) Gross MOIC(4)
Permian Resources(5) (Public) 268 268 235 137 372 1.39x 1.39x
Whitecap Resources(5) (Public) 296 296 200 59 259 0.86x 0.87x
Onyx (Private) 66 60 121 46 167 2.80x 2.80x
Total Current Portfolio - Conventional - Public(6) $564 $564 $435 $196 $631 1.11x 1.12x
Total Current Portfolio - Conventional - Private(6) $66 $60 $121 $46 $167 2.80x 2.80x
Total Current Portfolio - Conventional - Public & Private(6) $630 $624 $556 $242 $798 1.27x 1.28x
Current Portfolio - Decarbonisation
Investment (Public/Private) Gross Committed Capital ($mm) Invested Gross Realised Gross Unrealised Value Gross Realised Capital & Unrealised Value ($mm) 31 Mar 2025 30 Jun 2025
Capital ($mm) Capital ($mm)(3) ($mm)(4) Gross MOIC(4) Gross MOIC(4)
GoodLeap (formerly Loanpal) (Private) 25 25 2 23 25 1.00x 1.00x
Infinitum 27 27 - 18 18 0.65x 0.65x
(Private)
Solid Power(5) (Public) 48 48 - 16 16 0.16x 0.33x
Group14 (Private) 4 4 - 1 1 0.75x 0.25x
Total Current Portfolio - Decarbonisation - Public(6) $48 $48 $- $16 $16 0.16x 0.33x
Total Current Portfolio - Decarbonisation - Private(6) $56 $56 $2 $42 $44 0.81x 0.78x
Total Current Portfolio - Decarbonisation - Public & Private(6) $104 $104 $2 $58 $60 0.51x 0.57x
Total Current Portfolio - Conventional & Decarbonisation - Public & $734 $728 $558 $300 $858 1.17x 1.18x
Private(6)
Cash and Cash Equivalents $73
Total Liquidity (Cash and Cash Equivalents & Public Portfolio) $285
Total Market Capitalisation $270
Investment (Initial Investment Date) Gross Committed Capital ($mm) Invested Gross Realised Gross Unrealised Value Gross Realised Capital & Unrealised Value ($mm) 31 Mar 2025 30 Jun 2025
Capital ($mm) Capital ($mm)(3) ($mm)(4) Gross MOIC(4) Gross MOIC(4)
Rock Oil(7) (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(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(6) $818 $818 $1,005 $0 $1,005 1.23x 1.23x
Withdrawn Commitments and Investment Write-Offs(6,10) 477 477 10 - 10 0.02x 0.02x
Total Investments(6) $2,030 $2,024 $1,573 $300 $1,873 0.92x 0.93x
Total Investments & Cash and Cash Equivalents $373
Unaudited Net Asset Value $372
Total Shares Repurchased to-date 37,075,536 at average price per share of £4.44 ($5.67)
Current Shares Outstanding 24,591,380
About Riverstone Energy Limited:
Riverstone Energy Limited 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 7 active investments
spanning decarbonisation, oil and gas, renewable energy and power in the
Continental U.S., Western Canada 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
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 the Riverstone Energy Investment Partnership, LP
("Partnership"). The Partnership values its securities and instruments at 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 June 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 1.3720 as of 30 June 2025
(2) The expected funding of the remaining unfunded commitment to Onyx at 30
June 2025 is nil in 2025 and in later years.
(3) Gross realised capital is total gross proceeds realised on invested
capital. Of the $1,574 million of capital realised to date, $1,206 million is
the return of the cost basis, and the remainder is profit.
(4) 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. performance fees 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 performance fees
rate on the portfolio as a whole will be greater than 20 per cent. No further
performance fees will be payable until the $149.9 million of realised and
unrealised losses to date at 30 June 2025 are made whole with future gains.
Since the Company has not yet met the appropriate Cost Benchmark at 30 June
2025, $22.1 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, the Company
may form wholly-owned subsidiaries, to be treated as C Corporations for US tax
purposes. The C Corporations serve to protect the Company'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.
(5) Represents closing price per share in USD for publicly traded shares
Permian Resources Corporation (NASDAQ:PR - 30-06-2025: $13.62 per share /
31-03-2025: $13.85 price per share); Solid Power, Inc. (NASDAQ:SLDP -
30-06-2025: $2.19 per share / 31-03-2025: $1.05 price per share); and Whitecap
Resources, Inc. (TSX: WCP - 30-06-2025: CAD 9.15 per share) / Veren Inc.
(NASDAQ/TSX: VRN - 31-03-2025: CAD 9.52 per share).
(6) Amounts vary due to rounding
(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 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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