
Final results for the 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
§ ILX III, Hammerhead and Liberty II were the largest drivers of REL's NAV decline over the Period.
§ During 2020, REL, through the Partnership, received
§ The Company, through the Partnership, invested a total of
§ REL finished the period with a cash balance of
Share Buyback Programme
As previously announced on
Portfolio Update
Below is a summary of material activity in the portfolio during the Period.
REL, through the Partnership, received return of capital proceeds of
REL, through the Partnership, invested
REL, through the Partnership, received proceeds of
REL, through the Partnership, invested
REL, through the Partnership, invested
Castex Energy 2014 ("Castex 2014")
REL, through the Partnership, received proceeds of
REL, through the Partnership, received proceeds of
Subsequent Events
§ Subsequent to quarter-end, REL, through the Partnership, fully funded a
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 market environment for energy has been the most difficult in recent history, the Board and Investment Manager have been working vigilantly to weather through these conditions. We have continued to execute share buybacks to reduce the discount to NAV of the share price as well as increasing the portfolio's diversification into energy transition and decarbonisation investments, which we believe will drive value to shareholders over the long-term."
"The market for energy has faced unprecedented headwinds, and we expect the exit environment to continue demonstrating lower volumes of activity in 2021 compared to historic levels. Accordingly, we have executed operational initiatives focussed on maximising runway and liquidity within our portfolio. We will continue to monitor opportunities to monetise our investments especially within E&P, while focussing on new platform investments that are well-positioned to capitalise on post-COVID market dynamics."
- Ends -
4Q20 Quarterly Portfolio Valuation
Previously, on
Current Portfolio
Investment (Initial Investment Date) |
| Gross Committed Capital ($mm) | Invested Capital ($mm) | Gross Realised Capital ($mm)[4] | Gross Unrealised Value ($mm) | Gross MOIC5 | |||
Centennial ( |
| Permian ( | 0.7x | 0.7x | |||||
ILX III ( |
| Deepwater GoM ( | 200 | 174 | 5 | 135 | 140 | 0.7x | 0.8x |
Onyx ( |
| 66 | 53 | - | 53 | 53 | 1.0x | 1.0x | |
Hammerhead Resources ( |
| 307 | 295 | 23 | 22 | 45 | 0.2x | 0.2x | |
Carrier II ( |
| Permian & | 133 | 110 | 29 | 15 | 44 | 0.4x | 0.4x |
Enviva[6] ( |
| Southeast ( | 25 | 18 | - | 29 | 29 | 1.0x | 1.6x |
CNOR ( |
| 90 | 90 | 16 | 6 | 22 | 0.2x | 0.2x | |
| GoM Shelf ( | 89 | 88 | 8 | - | 8 | 0.1x | 0.1x | |
Liberty II ( |
| Bakken, PRB ( | 142 | 142 | - | - | - | 0.1x | 0.0x |
Total Current Portfolio[7] | 0.4x | 0.4x |
Realisations
Investment (Initial Investment Date) |
| Gross Committed Capital ($mm) | Invested Capital ($mm) | Gross Realised Capital ($mm)4 | Gross Unrealised Value ($mm) | Gross MOIC5 | |||
Rock Oil[8] ( |
| Permian ( | 114 | 114 | 231 | 2 | 233 | 2.0x | 2.0x |
Three Rivers III ( |
| Permian ( | 94 | 94 | 204 | - | 204 | 2.2x | 2.2x |
Meritage III[9] ( |
| 40 | 40 | 83 | - | 83 | 2.1x | 2.1x | |
RCO[10] ( |
| 80 | 80 | 80 | - | 80 | 1.0x | 1.0x | |
Sierra ( |
| 18 | 18 | 39 | - | 39 | 2.1x | 2.1x | |
Aleph ( |
| Vaca Muerta ( | 23 | 23 | 23 | - | 23 | 1.0x | 1.0x |
Ridgebury6 ( |
| Global | 18 | 18 | 22 | - | 22 | 1.2x | 1.2x |
Castex 2014 ( |
| 52 | 52 | 8 | 3 | 11 | 0.2x | 0.2x | |
Total Realisations7 | 1.6x | 1.6x | |||||||
Withdrawn Commitments and Impairments[11] | 121 | 121 | 1 | - | 1 | 0.0x | 0.0x | ||
Total Investments7 [12] | 0.7x | 0.7x | |||||||
Cash and Cash Equivalents |
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Total Investments & Cash and Cash Equivalents |
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LEI: 213800HAZOW1AWRSZR47
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
Neither the contents of
Media Contacts
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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 1.364 as of
[2] Net capital available of
realised profits and other income net of fees, expenses and performance allocation. The Board, with consultation by the Investment Manager, does not expect to fully fund all commitments in the normal
course of business.
[3] Excludes the remaining unfunded commitments for Carrier II, Hammerhead and
unfunded commitments at
[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] Investment is consistent with the Company's modified investment strategy that was adopted in 2019.
[7] Amounts may vary due to rounding.
[8] The unrealised value of the Rock Oil investment consists of rights to mineral acres.
[9] Midstream investment.
[10] Credit investment.
[11] Withdrawn commitments consist of Origo (
[12] Amount includes marketable securities in Centennial, Pipestone and Talos with an aggregate fair value at
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