Riverstone Energy Limited 2Q18 Quarterly Portfolio Valuations (2336W)
July 31 2018 - 1:02AM
UK Regulatory
TIDMRSE
RNS Number : 2336W
Riverstone Energy Limited
31 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
Gross
Gross Gross Gross Realised 30 Jun 31 Mar
Committed Invested Realised Unrealised Capital 2018 2018
Capital Capital Capital Value & Unrealised Gross Gross
Target Basin ($mm) ($mm) ($mm)[1] ($mm) Value ($mm) MOIC[2] MOIC(2)
Hammerhead Deep Basin
Resources (Canada) $307 $295 $23 $508 $531 1.8x 1.9x
Permian
Centennial (U.S.) 268 268 172 278 450 1.7x 1.7x
Deepwater
ILX III GoM (U.S.) 200 131 - 183 183 1.4x 1.2x
Bakken, PRB
Liberty II (U.S.) 142 142 - 177 177 1.3x 1.3x
Eagle Ford
& Permian
Carrier II (U.S.) 133 110 - 131 131 1.2x 1.2x
RCO[3] North America 125 87 82 4 86 1.0x 1.1x
Western
CNOR Canada 90 85 - 85 85 1.0x 1.0x
Meritage Western
III[4] Canada 67 39 - 77 77 2.0x 1.8x
GoM Shelf
Fieldwood (U.S.) 82 81 3 65 68 0.8x 0.2x
Gulf Coast
Region
Castex 2014 (U.S.) 67 44 - 44 44 1.0x 1.0x
Mid-Continent
Eagle II (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 $1,903 1.4x 1.4x
------------------------------ ------------ --------- ---------- ------------ ------------ --------- --------
Realisations
Gross
Gross Gross Gross Realised 30 Jun 31 Mar
Committed Invested Realised Unrealised Capital 2018 2018
Capital Capital Capital Value & Unrealised Gross Gross
Target Basin ($mm) ($mm) ($mm)(1) ($mm) Value ($mm) MOIC(2) MOIC(2)
Permian
Rock Oil[6] (U.S.) 114 114 229 11 240 2.1x 2.1x
Three Rivers Permian
III (U.S.) 94 94 196 9 205 2.2x 2.2x
Total Realisations(5) $209 $209 $425 $19 $444 2.1x 2.1x
----------------------------- ------------ --------- ---------- ------------ ------------- --------- --------
Withdrawn Commitments
and Impairments[7] 59 59 1 - 1 0.0x 0.0x
----------------------------- ------------ --------- ---------- ------------ ------------- --------- --------
Total Investments(5) $1,853 $1,624 $706 $1,642 $2,348 1.4x 1.4x
----------------------------- ------------ --------- ---------- ------------ ------------- --------- --------
Cash and Cash Equivalents $236
----------------------------- ------------ --------- ---------- ------------ ------------- --------- --------
Total Investments & Cash
and Cash Equivalents(5) $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).
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PFUGMGFNGGVGRZZ
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