- 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
Capital
($mm)
|
Gross
Realised
Capital ($mm)[1]
|
Gross Unrealised
Value
($mm)[2]
|
Gross Realised Capital &
Unrealised Value ($mm)
|
30 Jun 2024
Gross
MOIC2
|
30 Sep 2024
Gross
MOIC2
|
|
Permian Resources[3]
(Public)
|
268
|
268
|
231
|
137
|
368
|
1.46x
|
1.37x
|
|
Onyx
(Private)
|
66
|
60
|
121
|
64
|
185
|
3.10x
|
3.10x
|
|
Veren3,[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 -
Private5
|
$66
|
$60
|
$121
|
$64
|
$185
|
3.10x
|
3.10x
|
|
Total Current Portfolio - Conventional - Public &
Private5
|
$630
|
$624
|
$551
|
$252
|
$803
|
1.35x
|
1.29x
|
Current Portfolio - Decarbonisation
|
Investment (Public/Private)
|
Gross Committed Capital
($mm)
|
Invested
Capital
($mm)
|
Gross
Realised
Capital
($mm)1
|
Gross Unrealised
Value
($mm)2
|
Gross Realised Capital &
Unrealised Value ($mm)
|
30 Jun 2024
Gross
MOIC2
|
30 Sep 2024
Gross
MOIC2
|
|
Infinitum
(Private)
|
27
|
27
|
-
|
30
|
30
|
1.10x
|
1.10x
|
|
GoodLeap (formerly
Loanpal)
(Private)
|
25
|
25
|
2
|
23
|
25
|
1.00x
|
1.00x
|
|
Solid Power3
(Public)
|
48
|
48
|
-
|
10
|
10
|
0.25x
|
0.21x
|
|
Group14
(Private)
|
4
|
4
|
-
|
4
|
4
|
1.00x
|
1.00x
|
|
Enviva3
(Public)
|
22
|
22
|
0
|
-
|
0
|
0.03x
|
0.02x
|
|
Hyzon Motors3 (Public)
|
10
|
10
|
-
|
-
|
-
|
0.03x
|
0.00x
|
|
Tritium DCFC3,[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
(Private)
|
13
|
13
|
-
|
-
|
-
|
0.00x
|
0.00x
|
|
Total Current Portfolio - Decarbonisation -
Public5
|
$105
|
$105
|
$1
|
$10
|
$11
|
0.15x
|
0.11x
|
|
Total Current Portfolio - Decarbonisation -
Private5
|
$71
|
$71
|
$2
|
$57
|
$59
|
0.83x
|
0.83x
|
|
Total Current Portfolio - Decarbonisation - Public &
Private5
|
$176
|
$176
|
$3
|
$67
|
$70
|
0.42x
|
0.40x
|
|
Total Current Portfolio - Conventional &
Decarbonisation - Public &
Private5
|
$806
|
$800
|
$554
|
$319
|
$873
|
1.11x
|
1.09x
|
|
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
Capital
($mm)
|
Gross
Realised
Capital
($mm)1
|
Gross Unrealised
Value
($mm)2
|
Gross Realised Capital &
Unrealised Value ($mm)
|
30 Jun 2024
Gross
MOIC2
|
30 Sep 2024
Gross
MOIC2
|
|
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
(19 Feb 2019)
|
18
|
18
|
22
|
-
|
22
|
1.22x
|
1.22x
|
|
Castex 2014
(3
Sep 2014)
|
52
|
52
|
14
|
-
|
14
|
0.27x
|
0.27x
|
|
Total Realisations5
|
$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 Investments5
|
$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
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.