Guernsey (
Highlights
· Key Financials (unaudited)
o NAV as at
o NAV per share as at
o Profit/(loss) during period
o Basic profit/(loss) per share during period
o Market capitalisation at
o Share price at
· No change in committed capital during the period
· Total invested capital during the period of
o
o
o
o
o
o
o
· Total committed capital at
· Total invested capital at
Sir
"During the last year the oil price has approximately halved. We believe that the lower oil price environment provides an exceptional opportunity for REL and we are happy to see a further
"REL has invested in fifteen companies led by best-in-class management teams operating in a selection of the most attractive basins globally. Several of the companies made notable progress during the past quarter, including Sierra securing two blocks in Mexico's initial shallow Gulf of
Portfolio Update
Below is a summary of the most recent activity in the portfolio.
In the third quarter, REL, through
Riverstone Credit Opportunities, LP ("RCO")
In the third quarter, REL, through the Partnership invested $15 million in RCO as the company made 10 additional energy credit investments in the context of a large number of new opportunities becoming available during the quarter as commodity prices weakened further. Since being formed in January 2015, RCO has made a total of 17 investments, four of which have already been fully exited.
In the third quarter, REL, through the Partnership invested
Three
In the third quarter, REL, through the Partnership invested $7 million in Three Rivers III. Similar to Riverstone's two prior successful partnerships with this management team, the company focuses on oil and gas acquisition and development opportunities in the Permian Basin. During the period, the company spud its first horizontal well at properties acquired earlier in the year in Culberson & Reeves Counties.
In the third quarter, REL, through the Partnership invested
In the third quarter, REL, through the Partnership invested
Castex Energy 2005, LLC ("Castex 2005")
In the third quarter, the fair market valuation for Castex 2005 grew to 1.1 times invested capital as a result of the company's progress in its drilling and operational programs. Castex 2005 is a partnership focused on a portfolio of properties in
Fieldwood Energy LLC ("Fieldwood")
In the third quarter, the fair market valuation for Fieldwood was reduced to 1.0 times invested capital. This was primarily driven by a deterioration in the market valuations of publicly-traded peers operating in the shallow Gulf of
Valuation of the Portfolio
Previously, on
Target Basin | Subsector | Committed Capital ($mm) | Invested Capital ($mm) | Realized Capital ($mm) | Gross Unrealized Value ($mm)3 | Gross MOIC[3] | ||
CIOC | Deep Basin (Canada) | E&P | $155 | $115 | - | $151 | 1.3x | |
Rock Oil | Permian (U.S.) | E&P | 150 | 93 | - | 126 | 1.3x | |
Liberty II | Bakken, PRB (U.S.) | E&P | 100 | 85 | - | 85 | 1.0x | |
CNOR | Western Canada | E&P | 90 | 73 | - | 73 | 1.0x | |
RCO | North America | Credit | 125 | 65 | 40 | 22 | 1.0x | |
Fieldwood | Gulf of Mexico Shelf (U.S.) | E&P | 82 | 54 | - | 54 | 1.0x | |
Castex 2005 | Gulf Coast Region (U.S.) | E&P | 50 | 48 | - | 51 | 1.1x | |
Eagle II | Mid-Continent (U.S.) | E&P | 50 | 42 | - | 42 | 1.0x | |
Castex 2014 | Gulf Coast Region (U.S.) | E&P | 67 | 27 | - | 27 | 1.0x | |
Carrier II | Permian (U.S.) | E&P | 33 | 23 | - | 23 | 1.0x | |
Meritage III | Western Canada | Midstream | 33 | 16 | - | 16 | 1.0x | |
Three Rivers III | Permian (U.S.) | E&P | 167 | 9 | - | 9 | 1.0x | |
Origo | North Sea (Norway, U.K.) | E&P | 67 | 6 | - | 6 | 1.0x | |
Sierra | Mexico | E&P | 75 | 3 | - | 3 | 1.0x | |
CanEra III | Western Canada | E&P | 60 | 1 | - | 1 | 1.0x | |
Total[4] | $1,304 | $660 | $40 | $689 | 1.1x | |||
Percentage of REL capital[5] | 107% | 54% |
Outlook and Pipeline
The investment pipeline for REL and its portfolio companies remains strong, driven in part by the large number of energy assets and businesses in need for capital as a result of the weak commodity price environment. REL is in the fortunate position of having ready access to the financial and operational resources to act on the highest quality opportunities while protecting its downside exposure.
Ends
Media Contacts
For
Alfredo Marti +44-20-3206-6300 John Cosgrove +1-212-993-0076 |
Brunswick:
+44-207-404-5959
About
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. The company is uniquely positioned to benefit from the large number of investment opportunities being driven by the North American energy revolution and the continued growth in global energy demand. 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
For further details, see www.RiverstoneREL.com
Neither the contents of
Note:
This IMS aims to give an update of material events and transactions that have taken place during the period from
This IMS contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and REL's actions to differ materially from those expected or implied in the forward-looking statements.
The Investment Manager is charged with the responsibility of valuing 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 the IFRS accounting standards and IPEV Valuation Guidelines. Riverstone values each underlying investment in accordance with the Riverstone valuation policy, the IFRS accounting standards and IPEV Valuation Guidelines. 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 and the Fund V or Fund VI proportion will follow the Riverstone valuation policy. Valuations determined by Riverstone are disclosed quarterly to investors.
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 of subsequent financing rounds, if any, or if subsequent financing rounds are below original cost, the investment is valued at the "down round". 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 Riverstone investment committee as part of the valuation process.
[1] Assumed exchange rate of
[2] Based on total capital raised of
[3] Gross MOIC is Multiple of
[4] Amounts may vary due to rounding.
[5] Based on total capital raised of
This information is provided by RNS