
LEI: 213800HAZOW1AWRSZR47
Final results for the half year ended
Summary Performance
NAV | |
NAV per share | |
Profit/(loss) for Period ended | |
Basic profit/(loss) per share for Period ended | |
Market capitalization | |
Share price |
Highlights
§ As of
§ Centennial, Hammerhead and ILX III were the largest drivers of REL's NAV improvement over the Period.
§ During the half year ended
§ Total invested capital during the Period of
§Total net realisations and distributions during the Period of
§ REL made a
§ REL finished the Period with a cash balance of
Share Buyback Programme
As previously announced on
Subsequent Events
§ In
§ In connection with the closing of the previously announced merger between
§ In
§ Also, in
Manager Outlook
§ REL's
§ Following a difficult year for energy in 2020, the macro environment has started to stabilise but is expected to have significant uncertainty due to the prolonged nature of the COVID-19 pandemic and delays in vaccine administration.
§ REL remains focussed on managing liquidity and operational efficiency at the portfolio company level, while continuing to execute on its modified investment programme, which includes a pivot from E&P investments towards energy transition and decarbonisation assets. The Investment Manager believes the current market environment is generating attractive risk-reward investment opportunities within these subsectors.
"While the macro outlook remains uncertain the continued commodity price recovery into the second quarter provided REL with improved financial resilience and has allowed us to extend our buyback programme by a further
"As the world makes progress in emerging from the pandemic, albeit at an uneven pace, our focus continues to be on actively managing our portfolio to improve efficiency and increase liquidity. Alongside the investments in decarbonisation made in the first half of 2021, we exited ILX III after the period closed, raising net proceeds of
- Ends -
2Q21 Quarterly Portfolio Valuation
Previously, on
Current Portfolio - Private
Investment (Initial Investment Date) | Invested Capital ($mm) | Gross Realised Capital ($mm)[4] | Gross Unrealised Value ($mm)5 | Gross MOIC5 | |||
ILX III ( | 200 | 179 | 4 | 168 | 172 | 0.9x | 1.0x |
Hammerhead Resources ( | 307 | 295 | 23 | 65 | 88 | 0.2x | 0.3x |
Carrier II ( | 133 | 110 | 29 | 37 | 66 | 0.6x | 0.6x |
Onyx ( | 66 | 60 | - | 60 | 60 | 1.0x | 1.0x |
Enviva ( | 25 | 18 | - | 31 | 31 | 1.6x | 1.7x |
GoodLeap (formerly | 25 | 25 | 1 | 24 | 25 | 1.0x | 1.0x |
FreeWire ( | 10 | 10 | - | 10 | 10 | 1.0x | 1.0x |
89 | 88 | 8 | - | 8 | 0.1x | 0.1x | |
Total Current Portfolio - Private[6] | 0.5x | 0.6x |
Current Portfolio - Public
Investment (Initial Investment Date) | Invested Capital ($mm) | Gross Realised Capital ($mm)4 | Gross Unrealised Value ($mm)5 | Gross MOIC5 | Closing Price per Share[7] | Gross MOIC5 | Closing Price per Share7 | ||
Centennial ( | 0.9x | 1.0x | |||||||
CNOR ( | 90 | 90 | 16 | 22 | 38 | 0.3x | 0.4x | ||
DCRN[8] ( | 1 | 1 | - | 4 | 4 | 1.0x | n/a | 7.3x | |
DCRC8 ( | 1 | 1 | - | 4 | 4 | 1.0x | n/a | 8.2x | |
Total Current Portfolio - Public6,[9] | 0.7x | 0.9x | |||||||
Cash and Cash Equivalents | |||||||||
Cash and Cash Equivalents (pro forma for ILX III sale) | |||||||||
Total Liquidity (Cash and Cash Equivalents & Public Portfolio | |||||||||
Total Liquidity (pro forma for ILX III sale) | |||||||||
Total Market Capitalisation |
Realisations
Investment (Initial Investment Date) | Invested Capital ($mm) | Gross Realised Capital ($mm)4 | Gross Unrealised Value ($mm)5 | Gross MOIC5 | |||
Rock Oil[10] ( | 114 | 114 | 232 | 3 | 235 | 2.0x | 2.1x |
Three Rivers III ( | 94 | 94 | 204 | - | 204 | 2.2x | 2.2x |
Meritage III[11] ( | 40 | 40 | 86 | - | 86 | 2.1x | 2.2x |
RCO[12] ( | 80 | 80 | 80 | - | 80 | 1.0x | 1.0x |
Sierra ( | 18 | 18 | 38 | - | 38 | 2.1x | 2.1x |
Aleph ( | 23 | 23 | 23 | - | 23 | 1.0x | 1.0x |
Ridgebury ( | 18 | 18 | 22 | - | 22 | 1.2x | 1.2x |
Castex 2014 ( | 52 | 52 | 14 | - | 14 | 0.2x | 0.3x |
Total Realisations6 | 1.8x | 1.6x | |||||
Withdrawn Commitments and Impairments[13] | 262 | 262 | 1 | - | 1 | 0.0x | 0.0x |
Total Investments6,[14] | 0.8x | 0.8x | |||||
Total Investments & Cash and Cash Equivalents6 |
About
REL is a closed-ended investment company that invests exclusively in the global energy industry across all sectors. REL aims to capitalise on the opportunities presented by Riverstone's energy investment platform. REL's ordinary shares are listed on the
For further details, see www.RiverstoneREL.com
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+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
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] GBP:USD FX rate of 1.386 as of
[2] Excludes the remaining unfunded commitments for ILX III of
[3] REL will continue to own 43,333 shares of Talos Energy Inc stock (NYSE:TALO) in connection with its former investment in ILX III.
[4] Gross realised capital is total gross proceeds realised on invested capital. Of the
[5] Gross Unrealised Value and Gross MOIC (Gross Multiple of
[6] Amounts may vary due to rounding.
[7] Represents closing price per share in USD for publicly traded shares of Centennial Resource Development, Inc. (NASDAQ:CDEV -
[8] SPAC Sponsor investment for Decarbonization Plus Acquisition Corporation II (NASDAQ:DCRN) and Decarbonization Plus Acquisition Corporation III (NASDAQ:DCRC) (see note 14 below for further information regarding the SPAC PIPE commitment for DCRC).
[9] This figure reflects REL's holding of
[10] The unrealised value of the Rock Oil investment consists of rights to mineral acres.
[11] Midstream investment.
[12] Credit investment.
[13] Withdrawn commitments consist of Origo (
[14] As the funding of the DCRB and DCRC PIPE commitments of
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