Press release

- THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION -

Riverstone Energy Limited - Interim Management Statement

London, UK (1 November 2017) - Riverstone Energy Limited ("REL") is issuing this Interim Management Statement ("IMS") for the period from 1 July 2017 to 30 September 2017 (the "period"). 

Highlights

·    Key Financials (unaudited)

o NAV as at 30 September 2017                        $1,728 million (£1,290 million)¹

o NAV per share as at 30 September 2017         $20.45 / £15.27¹

o Profit/(loss) during period                                  $59.8 million

o Basic profit/(loss) per share during period          $70.78 cents

o Market capitalisation at 30 September 2017     $1,390 million (£1,037 million)¹

o Share price at 30 September 2017                    $16.45 / £12.28¹

·    Total invested capital during the period of $39 million

o $22 million in ILX Holdings III, LLC

o $8 million in Three Rivers Natural Resources Holdings III, LLC

o $4 million in Sierra Oil and Gas Holdings, L.P.

o $3 million in Liberty Resources II LLC

o $1 million in Meritage Midstream Services III, L.P.

·    Total realisations during the period of $14 million from Rock Oil Holdings, LLC and Riverstone Credit Opportunities, L.P.

·    Total gross committed capital at 30 September 2017 is $1,802 million

·    Total net committed capital at 30 September 2017 is $1,718 million or 119 per cent. of net capital available²

·    Total net capital invested at 30 September 2017 is $1,353 million or 94 per cent. of net capital available²

Richard Hayden, Chairman of REL, commented:

"Net asset value has grown to $20.45 per share, an increase of 4% since last quarter and 11% since the third quarter of 2016. This reflects continued operational successes at the portfolio level, in particular of Centennial, as well as the Company's overall emphasis on low-cost basins."       

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

"REL's investments continued to execute upon their development strategies and grow value for shareholders, examples of which include Meritage III's ongoing expansion of its midstream infrastructure in Western Canada, Centennial's focus on delivering strong well results in the Delaware Basin and additional appraisal drilling by ILX III. We believe that investors with a long-term outlook will be rewarded as Riverstone utilises the breadth of its platform and best-in-class management teams to capitalise on value-creating opportunities."

Portfolio Update

Below is a summary of material activity in the portfolio during the period. 

ILX Holdings III LLC ("ILX III")

In the third quarter, REL, through the Partnership, invested $22 million in ILX III.

Three Rivers Natural Resources Holdings III LLC ("Three Rivers III")

In the third quarter, REL, through the Partnership, invested $8 million in Three Rivers III.

Sierra Oil and Gas Holdings, L.P. ("Sierra")

In the third quarter, REL, through the Partnership, invested $4 million in Sierra.

Liberty Resources II LLC ("Liberty II")

In the third quarter, REL, through the Partnership, invested $3 million in Liberty II.

Meritage Midstream Services III, L.P. ("Meritage III")

In the third quarter, REL, through the Partnership, invested $1 million in Meritage III.

3Q 2017 Quarterly Portfolio Valuations

Previously, on 23 October 2017, REL announced its quarterly portfolio summary as of 30 September 2017, inclusive of updated quarterly unaudited fair market valuations:

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.  To date, REL has made 17 investments spanning conventional and unconventional oil and gas activities in the Gulf of Mexico, Continental U.S., Western Canada, the U.K. North Sea, the Norwegian Sea, Mexico and credit.

For further details, see www.RiverstoneREL.com

Neither the contents of REL'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:

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 2017 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.

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.