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Riverstone Energy Limited

Riverstone Energy Limited Upstream sector has continued to be challenging

Riverstone Energy Limited (LON:RSE) issued this Interim Management Statement for the period from 1 January 2019 to 31 March 2019.

Highlights

· Key Financials (unaudited)

o NAV as at 31 March 2019 $1,221 million (£937 million)[1]

o NAV per share as at 31 March 2019$15.28 / £11.721

o Profit/(loss) during period $(210.2) million

o Basic profit/(loss) per share during period $(263.10) cents

o Market capitalisation at 31 March 2019 $977 million (£750 million)1

o Share price at 31 March 2019 $12.24 / £9.391

· Total invested capital during the period of $13 million

o $7 million in Ridgebury H3 LLC

o $3 million in ILX Holdings III, LLC

o $3 million in Castex Energy 2014, LLC

· Total realisations during the period of $123 million from Meritage Midstream Services III, L.P. ($83 million), Sierra Oil and Gas ($37 million), and Carrier Energy Partners II, LLC ($3 million)

· Total gross committed capital at 31 March 2019 is $1,465 million

· Total net committed capital at 31 March 2019 is $1,268 million or 94 per cent. of net capital available[2]

· Total net capital invested at 31 March 2019 is $1,126 million or 83 per cent. of net capital available2

· Since inception, investment weighted average WTI oil price at 31 March 2019 is approximately $51.61 per barrel

Richard Hayden, Chairman of Riverstone Energy Limited, commented:

“REL remains focussed on its portfolio construction and utilising a modified investment approach to increase diversification, as demonstrated by its investment in Handy Tankers (Ridgebury) of up to $22 million and recent commitment of up to $66 million to Onyx, a newly formed European independent power producer. These new commitments, as well as the next potential investment in the near-term pipeline, are consistent with this new modified investment approach and are non-ECI investments as such are not subject to U.S. taxes. Following the successful monetisations of Meritage III and Sierra, REL is continuing to evaluate new investments that span the entire energy value chain with an emphasis on the midstream, energy services and power sectors.”

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

“The macro backdrop for the upstream sector has continued to be challenging, as public indices and trading multiples have remained at muted levels. A constructive geopolitical environment and increase in capital markets and M&A activity will be important to a recovery in valuations over the long-term.”

Portfolio Update

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

Ridgebury H3 LLC (“Ridgebury”)

In the first quarter, REL, through the Partnership, invested $7 million in Ridgebury.

ILX Holdings III, LLC (“ILX III”)

In the first quarter, REL, through the Partnership, invested $3 million in ILX III.

Castex Energy 2014, LLC (“Castex 2014”)

In the first quarter, REL, through the Partnership, invested $3 million in Castex 2014.

Meritage Midstream Services III, L.P. (“Meritage III”)

REL, through the Partnership, received sale proceeds of $83 million from Meritage III.

Sierra Oil and Gas Holdings, L.P. (“Sierra”)

REL, through the Partnership, received sale proceeds of $37 million from Sierra.

Carrier Energy Partners II, L.P. (“Carrier II”)

REL, through the Partnership, received income distributions of $3 million from Carrier II.

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