# Riverstone Energy Limited Upstream sector has continued to be challenging

- Link: https://www.directorstalkinterviews.com/riverstone-energy-limited-upstream-sector-has-continued-to-be-challenging/412783204
- Published: 2019-05-22T08:18:51+01:00
- Author: Charlotte Edwards

**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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