Energy SpA — Net Asset Value 2016

Oct 18, 2016

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RNS Number : 7682M

Riverstone Energy Limited

18 October 2016

- THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION -

Riverstone Energy Limited Announces 3Q16 Quarterly Portfolio Valuations

London, UK (18 October 2016) - Riverstone Energy Limited ("REL") announces its quarterly portfolio summary as of 30 September 2016, inclusive of updated quarterly unaudited fair market valuations:

		Target Basin		Subsector	Committed Capital  ($mm)	Invested Capital ($mm)	Realised Capital ($mm)	Gross Realised & Unrealised Value ($mm)1	Gross MOIC1
CIOC		Deep Basin (Canada)		E&P	$232	$232	$2	$473	2.0x
Rock Oil		Permian (U.S.)		E&P	114	114	-	240	2.1x
Carrier II		Permian (U.S.)		E&P	133	104	-	125	1.2x
Liberty II		Bakken, PRB (U.S.)		E&P	142	116	-	105	0.9x
CNOR		Western Canada		E&P	90	73	-	73	1.0x
Three Rivers III		Permian (U.S.)		E&P	167	66	-	149	2.3x
RCO		North America		Credit	125	87	70	99	1.1x
ILX III		Deepwater GoM (U.S.)		E&P	200	58	-	58	1.0x
Fieldwood		GoM Shelf (U.S.)		E&P	82	58	1	58	1.0x
Eagle II		Mid-Continent (U.S.)		E&P	67	51	-	46	0.9x
Castex 2014		Gulf Coast Region (U.S.)		E&P	67	36	-	36	1.0x
Meritage III		Western Canada		Midstream	33	27	-	30	1.1x
Castex 2005		Gulf Coast Region (U.S.)		E&P	50	48	-	12	0.3x
Centennial		Permian (U.S.)		E&P	175	20	-	20	1.0x
Origo		North Sea (Norway, U.K.)		E&P	67	7	-	7	1.0x
Sierra		Mexico		E&P	38	1	-	2	1.1x
CanEra III		Western Canada		E&P	60	1	-	1	1.0x
Total2					$1,841	$1,101	$73	$1,533	1.4x
Percentage of REL net capital available3					144%	86%

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 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:

Alfredo Marti

Brian Potskowski

+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 September 2016 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.

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1 Gross MOIC is Multiple of Invested Capital. Gross Unrealised Value and Gross MOIC are before transaction costs, taxes, 20% carried interest on gross profits, management fees of 1.5% per annum and other expenses. Given these costs and expenses are in aggregate expected to be considerable, Total Net Value and Net MOIC will be materially less than Gross Unrealised Value and Gross MOIC.  Local taxes may apply at the jurisdictional level on profits arising in operating entity investments. Further withholding taxes may apply on distributions from such operating entity investments.

2 Amounts may vary due to rounding.

3 Based on total capital raised of $1,320 million plus realised profits and other income net of fees, expenses and accrued performance allocation.

This information is provided by RNS

The company news service from the London Stock Exchange

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