REG - Riverstone Energy Ld - Results for the year ended 31 December 2024
28/02/2025 07:15
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RNS Number : 7948Y Riverstone Energy Limited 28 February 2025
LEI: 213800HAZOW1AWRSZR47
Riverstone Energy Limited
Results for the year ended 31 December
2024
London, UK (28 February 2025) - Riverstone Energy Limited ("REL" or the
"Company") announces its Year End Results from 1 January 2024 to 31 December
2024 (the "Period").
Summary Performance
31 December 2024
NAV $376 million 1 (£299 million) 2
NAV per share $14.83 / £11.81(2)
Loss for Period ended ($79.7 million)
Basic loss per share for Period ended (264.41 cents)
Total liquidity (cash and cash equivalents & public portfolio) $281 million (£223 million)(2)
Market capitalization $250 million (£199 million)(2)
Share price $9.87 / £7.86(2)
Highlights
§ As of 31 December 2024, REL had a NAV per share of $14.83 (£11.81),
representing a decrease in USD and GBP of 7 and 6 per cent., respectively,
compared to the 31 December 2023 NAV per share.
§ Total net realisations and distributions during the Period of $13.0
million: Permian Resources ($7.2 million), Rock Oil ($5.0 million) and Veren
($0.8 million)
§ REL ended the Period with a cash balance of $78.5 million and remaining
potential unfunded commitments of $6.2 million 3 .
§ Since the initial announcement of the Share Buyback Programme on 1 May
2020, the Company has bought back a total of 36,324,225 ordinary shares at an
average price of approximately £4.38 per ordinary share, which has
contributed to the share price increase of over 3.5x from £2.20 to £7.86
over the period to 31 December 2024.
Share Buyback Programme and 2024 Tender Offer
In further support of the Board's capital management objectives, at the 2024
AGM, the shareholders renewed the authorisation for the Board to continue with
share buybacks. The Board duly commenced the current programme, allocating an
amount of £21.3 million ($27.1 million), of which £7.1 million was available
for repurchases as of 31 December 2024. Through this allocation, 1,805,479
ordinary shares have been bought back at a total cost of approximately £14.5
million ($18.2 million) at an average share price of approximately £8.01
($10.06).
Furthermore, following the changes to the Investment Management Agreement
announced on 3 January 2020, the Investment Manager agreed that the Company
would repurchase shares or pay dividends equal to 20 per cent. of net gains on
disposals. No further carried interest will be payable until the $156.7
million of realised and unrealised losses to date as at 31 December 2024 are
made whole with future gains.
On 23 February 2024, REL announced a tender offer to return $199 million
(£158 million) at £10.50 per share. On 2 April 2024, the Company repurchased
15,047,619 shares representing ~36 per cent. of outstanding shares at that
date.
Investment Manager Outlook
§ REL's portfolio of conventional energy assets is positioned to benefit from
cash flow generation, low to no leverage and supportive underlying commodity
prices. When appropriate, the Investment Manager will take advantage of
favourable market conditions to monetise its publicly listed holdings. The
pursuit of liquidity will remain tempered by a desire to maximise returns for
all shareholders.
§ While low carbon energy opportunities remain attractive and market
sentiment has stayed positive, REL's energy transition and decarbonisation
investments will continue to prepare themselves against potential headwinds.
Interest rates lowered in 2024 and may continue to going forward, but
potential regulatory headwinds may also be on the horizon with the change in
United States' Presidential Administration. The Investment Manager will act
quickly to adjust the portfolio's energy transition and decarbonisation
investment strategies where needed and lean into tailwinds wherever possible.
Richard Horlick, Chair of the Board of Riverstone Energy Limited, commented:
"The wave of consolidation in the oil & gas sector that we witnessed in
2023 continued in 2024, which was reflected in our portfolio as Permian
Resources successfully completed a bolt-on acquisition of Barilla Draw. We
expect this trend to continue into 2025 as companies focus on creating strong
synergies and increased inventories through bolt-ons and mergers of equals.
While the uncertainty that surrounded the energy market in 2024 is likely to
remain for some time, the Board and Investment Manager remain confident in our
portfolio's potential as we prioritise delivering increased shareholder value
while maintaining a strong balance sheet."
David M. Leuschen and Pierre F. Lapeyre Jr., Co-Founders of Riverstone, added:
"The trends in 2024 reflected those of previous years, presenting a mixture of
optimism and volatility across the energy and decarbonisation markets, both of
which influenced the full-year performance of our portfolio. Our conventional
energy assets continued to perform, buoyed by the sustained consolidation wave
in the sector, while our decarbonisation investments faced challenges brought
about by high interest rates and geopolitical uncertainty. Nevertheless,
trends towards energy security and consistent supply remain supportive for the
sector as a whole and we are confident that our portfolio is well positioned
to benefit as we enter 2025."
- Ends -
Riverstone Energy Limited's 2024 Annual Report is available to view at:
www.RiverstoneREL.com (http://www.RiverstoneREL.com) .
4Q24 Quarterly Portfolio Valuation
Previously, on 7 February 2025, REL announced its quarterly portfolio summary
as of 31 December 2024, 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 ($mm) 30 Sep 2024 31 Dec 2024
Capital ($mm) Capital ($mm) 4 ($mm) 5 Gross MOIC(5) Gross MOIC(5)
Permian Resources 6 (Public) 268 268 232 145 377 1.37x 1.41x
Onyx (Private) 66 60 121 46 167 3.10x 2.80x
Veren(6) (Public) 296 296 199 43 242 0.85x 0.82x
Total Current Portfolio - Conventional - Public 7 $564 $564 $431 $188 $619 1.10x 1.10x
Total Current Portfolio - Conventional - Private(7) $66 $60 $121 $46 $167 3.10x 2.80x
Total Current Portfolio - Conventional - Public & Private(7) $630 $624 $552 $234 $786 1.29x 1.26x
Current Portfolio - Decarbonisation
Investment (Public/Private) Gross Committed Capital ($mm) Invested Gross Realised Gross Unrealised Value Gross Realised Capital & Unrealised Value ($mm) 30 Sep 2024 31 Dec 2024
Capital ($mm) Capital ($mm)(4) ($mm)(5) Gross MOIC(5) Gross MOIC(5)
GoodLeap (formerly Loanpal) (Private) 25 25 2 23 25 1.00x 1.00x
Infinitum 27 27 - 23 23 1.10x 0.85x
(Private)
Solid Power(6) (Public) 48 48 - 14 14 0.21x 0.29x
Group14 (Private) 4 4 - 3 3 1.00x 0.75x
Hyzon Motors(6) (Public) 10 10 - 0 0 0.00x 0.00x
Total Current Portfolio - Decarbonisation - Public(7) $58 $58 $- $14 $14 0.17x 0.24x
Total Current Portfolio - Decarbonisation - Private(7) $56 $56 $2 $49 $51 1.05x 0.91x
Total Current Portfolio - Decarbonisation - Public & Private(7) $114 $114 $2 $63 $65 0.60x 0.57x
Total Current Portfolio - Conventional & Decarbonisation - Public & $744 $738 $554 $297 $851 1.18x 1.15x
Private(7)
Cash and Cash Equivalents $79
Total Liquidity (Cash and Cash Equivalents & Public Portfolio) $281
Total Market Capitalisation $250
Investment (Initial Investment Date) Gross Committed Capital ($mm) Invested Gross Realised Gross Unrealised Value Gross Realised Capital & Unrealised Value ($mm) 30 Sep 2024 31 Dec 2024
Capital ($mm) Capital ($mm)(4) ($mm)(5) Gross MOIC(5) Gross MOIC(5)
Rock Oil 8 (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 9 (17 Apr 2015) 40 40 88 - 88 2.20x 2.20x
RCO 10 (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(7) $819 $819 $1,006 $0 $1,006 1.23x 1.23x
Withdrawn Commitments and Investment Write-Offs 11 467 467 10 - 10 0.02x 0.02x
Total Investments(7) $2,030 $2,024 $1,570 $297 $1,867 0.93x 0.92x
Total Investments & Cash and Cash Equivalents $376
Unaudited Net Asset Value $376
Total Shares Repurchased to-date 36,324,225 at average price per share of £4.38 ($5.59)
Current Shares Outstanding 25,342,691
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 8 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 REL through the Riverstone Energy Investment Partnership, LP
("Partnership"). The Partnership values its securities and instruments at 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 31
December 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 Since REL has not yet met the appropriate Cost Benchmark at 31 December
2024, $29.0 million in Performance Allocation that would have been due under
the prior agreement were not accrued, and thereby would have reduced the NAV
on a pro forma basis to $347 million or $13.69 per share
2 GBP:USD FX rate of 1.2558 as of 31 December 2024
3 The expected funding of the remaining unfunded commitments at 31 December
2024 are $nil for 2025. The residual amounts are to be funded as needed in
2027 and later years.
4 Gross realised capital is total gross proceeds realised on invested
capital. Of the $1,570 million of capital realised to date, $1,201 million is
the return of the cost basis, and the remainder is profit.
5 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 $156.7 million of realised and
unrealised losses to date at 31 December 2024 are made whole with future
gains. Since REL has not yet met the appropriate Cost Benchmark at 31 December
2024, $29.0 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.
6 Represents closing price per share in USD for publicly traded shares
Permian Resources Corporation (formerly Centennial Resource Development, Inc.)
(NASDAQ:PR - 31-12-2024: $14.38 per share / 30-09-2024: $13.61 price per share
Solid Power, Inc. (NASDAQ:SLDP - 31-12-2024: $1.89 per share / 30-09-2024:
$1.35 price per share); Hyzon Motors, Inc. (NASDAQ:HYZN - 31-12-2024: $1.06
per share / 30-09-2024: $2.43 price per share); and Veren (NASDAQ: VRN -
31-12-2024: CAD 7.39 per share / 30-09-2024: CAD 8.33 per share).
7 Amounts vary due to rounding
8 The unrealised value of Rock Oil investment is made up of funds held in
escrow from the sale of rights to mineral acres
9 Midstream investment
10 Credit investment
11 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) and Ionic I & II ($3 million)
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