Press release

Riverstone Energy Limited

Final results for the half year ended 30 June 2018

London, 15 August 2018: Riverstone Energy Limited ("REL" or the "Company") announces its Half Year Results for the 6-month period (the "Period") from 1 January 2018 to 30 June 2018.

Summary performance

Highlights

§ As of 30 June 2018, REL had a NAV per share of $20.76, representing an increase of 13 cents or 0.6 per cent. versus NAV per share at 31 December 2017. On a Sterling basis, the NAV per share increased by £0.45 or 2.9 per cent. compared with the end of 2017.

§ REL took advantage of favourable market conditions to exit Three Rivers Natural Resources Holdings III LLC and sell 4.4 million shares in Centennial Resource Development, Inc., of which $280 million of gross proceeds were received during the Period, resulting in a Gross IRR of 47 per cent. for shareholders.

§ The Company invested a total of $50 million during the period, bringing net capital invested as of 30 June 2018 to $1,156 million, or 83 per cent of net capital available².

§ During the first half of 2018, REL reduced commitments to two companies, totaling $74 million, bringing net committed capital as of 30 June 2018 to $1,385 million, or 99 per cent of net capital available².

§ REL finished the Period with a cash balance of $236 million and no debt, following repayment of its loan secured against shares in Centennial Resource Development, Inc., in April 2018.

Commitments and Investments

During the Period, the company made the following investments:

§ Invested $22 million in Fieldwood Energy, LLC

§ Invested $15 million in ILX Holdings III LLC

§ Invested $6 million in Sierra Oil and Gas Holdings, L.P.

§ Invested $5 million in Meritage Midstream Services III, L.P.

§ Invested $2 million in Canadian Non-Operated Resources LP

During the Period, the Company made the following realisations:

§ Realised $196 million of gross proceeds for Three Rivers Natural Resources Holdings III, LLC

§ Realised $85 million of gross proceeds for Centennial Resource Development, Inc.

During the Period, the Company reduced the following commitments:

§ Commitment reduction of $72 million to Three Rivers Natural Resources Holdings III LLC

§ Commitment reduction of $2 million to Castex Energy 2005, LLC

Manager Outlook

§ REL's $236 million cash balance makes the Company well placed to make new investments and grow its existing Portfolio.

§ The Investment Manager believes the current cycle is generating attractive opportunities in midstream, oilfield services and power, while energy producers in low-cost basins, with strong operational capabilities and an oil-weighting will continue to outperform.

§ North American energy investments retain an advantage in a global marketplace due to low breakeven costs, short cycle times and high asset liquidity.

§ The portfolio's 12 active investments as a whole are well placed to offer investors resilience and growth in a variety of commodity price environments.

Richard Hayden, Chairman of Riverstone Energy Limited, commented:

"The $280 million of realisations during the Period have strengthened REL's ability to take advantage of new opportunities. The Board continues to evaluate various options to deploy this capital which would be most beneficial for shareholders, including new investments as well as a return of capital."

David M. Leuschen and Pierre F. Lapeyre Jr., Co-Founders of Riverstone, added:

"Oil prices experienced their first sustained period above $60 per barrel since the market downturn in 2014. The improvement in market fundamentals is supportive for REL realising value from its mature investments, while capitalising upon a broader universe of opportunities across the energy value chain."

- Ends -

Riverstone Energy Limited's 2018 Interim Report is available to view at: www.RiverstoneREL.com.

2Q18 Quarterly Portfolio Valuation

Previously, on 31 July 2018, REL announced its quarterly portfolio summary as of 30 June 2018, inclusive of updated quarterly unaudited fair market valuations:

Current Portfolio

Realisations

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 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 Audit Committee reviews the valuations of the Company's investments held through the Partnership, and makes a recommendation to the Board for formal consideration and acceptance.