LEI: 213800HAZOW1AWRSZR47

Riverstone Energy Limited

Final results for the half year ended 30 June 2021 & update on share buyback programme

London, UK (18 August 2021) - Riverstone Energy Limited ("REL" or the "Company") announces its Half Year Results for the 6-month period from 1 January 2021 to 30 June 2021 (the "Period").

Summary Performance

30 June 2021

Highlights

§ As of 30 June 2021, REL had a NAV per share of $9.46 (£6.83), representing an increase in USD and GBP of 53 and 50 per cent., respectively, compared to the 31 December 2020 NAV.

§ Centennial, Hammerhead and ILX III were the largest drivers of REL's NAV improvement over the Period.

§ During the half year ended 30 June 2021, the Company invested $36 million in four new energy transition investments, bringing the total invested in this area to $54 million, which, in aggregate, were valued at $74 million, or 1.4x Gross MOIC, at 30 June 2021.

§ Total invested capital during the Period of $47.3 million: GoodLeap, LLC (formerly Loanpal, LLC) ($25.0 million), FreeWire Technologies, Inc. ($10.0 million), Onyx Power ($7.0 million), ILX Holdings III, LLC ($4.2 million), Decarbonization Plus Acquisition Corp II ($0.6 million) and Decarbonization Plus Acquisition Corp III ($0.5 million).  The investments in Decarbonization Plus Acquisition II and Decarbonization Plus Acquisition III were sponsor equity and warrants, which were purchased at US$1.50 per warrant.

§Total net realisations and distributions during the Period of $7.6 million: Castex Energy 2014, LLC ($6.1 million), Meritage Midstream Services III, L.P. ($2.3 million), GoodLeap, LLC (formerly Loanpal, LLC) ($0.6 million) and Ridgebury H3, LLC ($0.3 million), offset by a contingent earnout payment of $1.7 million related to the 2019 sale of Sierra Oil & Gas.

§ REL made a $20 million commitment to Decarbonization Plus Acquisition Corporation III through a PIPE investment that is expected to be completed in conjunction with the business combination with Solid Power, Inc. in Q4 2021.

§ REL finished the Period with a cash balance of $53 million and remaining potential unfunded commitments of $43 million[2].

Share Buyback Programme

As previously announced on 1 July 2021, with today's publication of the Company's Interim Report and Financial Statements for the period ended 30 June 2021, the Board will recommence its £20.0 million open market share buyback programme with Numis Securities Limited and J.P. Morgan Securities plc. Since the Company's announcement on 11 May 2021, 1,185,808 ordinary shares have been bought back at a total cost of approximately £4.0 million ($5.6 million) at an average share price of approximately £3.36 ($4.72).

Subsequent Events

§ In July 2021, REL sold its one-third ownership interest in ILX III to an institutional investment fund managed by Ridgewood Energy Corporation for net proceeds of $168 million. As of 30 June 2021, pro forma for this sale, REL holds total cash of $221 million. With this transaction, REL no longer owns any interest in ILX III[3].

§ In connection with the closing of the previously announced merger between Decarbonization Plus Acquisition Corporation ("DCRB") and Hyzon Motors Inc. ("Hyzon") (NASDAQ: HYZN), REL purchased $10 million of DCRB common stock in a private placement transaction at $10 per share in July 2021. Hyzon, headquartered in Rochester, New York, is the industry-leading global supplier of zero-emissions hydrogen fuel cell powered commercial vehicles.

§ In August 2021, REL purchased an interest in one of Samsung Ventures' battery technology focused venture capital portfolios for $30.0 million. The remaining interest was purchased by Riverstone affiliates. The portfolio consists of seven unrealised investments with the majority of value deriving from over 1.6 million shares of Solid Power, Inc.

§ Also, in August 2021, REL announced an investment of $0.6 million in DCRD, a special purpose acquisition vehicle sponsored by an affiliate of REL's investment manager which raised over $316 million in its IPO.

Manager Outlook

§ REL's $178 million aggregate cash balance and $86 million of unrestricted marketable securities at 16 August 2021 makes the Company well positioned to fund the capital needs of the portfolio. With the funding of the $10.0 million DCRB PIPE commitment in July 2021, the Company has remaining potential unfunded commitments of up to $33 million²; however, the Board, in consultation with the Investment Manager, does not expect to fully fund all commitments in the normal course of business.

§ Following a difficult year for energy in 2020, the macro environment has started to stabilise but is expected to have significant uncertainty due to the prolonged nature of the COVID-19 pandemic and delays in vaccine administration.

§ REL remains focussed on managing liquidity and operational efficiency at the portfolio company level, while continuing to execute on its modified investment programme, which includes a pivot from E&P investments towards energy transition and decarbonisation assets. The Investment Manager believes the current market environment is generating attractive risk-reward investment opportunities within these subsectors.

Richard Hayden, Chairman of Riverstone Energy Limited, commented:

"While the macro outlook remains uncertain the continued commodity price recovery into the second quarter provided REL with improved financial resilience and has allowed us to extend our buyback programme by a further £20 million. As of 16 August, REL has an aggregate cash balance of $178 million, freely tradeable securities of $86 million, and $15 million of securities with sale restrictions that are estimated to expire no later than December 2022. It has been exciting to see a pick-up in momentum for action on climate change around the world over the last six months - with REL stepping up its own activity and making five new energy transition investments in businesses that further diversify our portfolio away from fossil fuels. Looking ahead, we will draw further on our experience and expertise to access opportunities that will help drive the energy transition while delivering value for our Shareholders."

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

"As the world makes progress in emerging from the pandemic, albeit at an uneven pace, our focus continues to be on actively managing our portfolio to improve efficiency and increase liquidity. Alongside the investments in decarbonisation made in the first half of 2021, we exited ILX III after the period closed, raising net proceeds of $168 million and further shifting our focus towards clean energy."

- Ends -

Riverstone Energy Limited's 2021 Interim Report is available to view at: www.RiverstoneREL.com.

2Q21 Quarterly Portfolio Valuation

Previously, on 30 July 2021, REL announced its quarterly portfolio summary as of 30 June 2021, inclusive of updated quarterly unaudited fair market valuations:

Current Portfolio - Private

Current Portfolio - Public

Realisations

About Riverstone Energy Limited:

REL is a closed-ended investment company that invests exclusively in the global energy industry across all sectors. REL aims to capitalise on the opportunities presented by Riverstone's energy investment platform.  REL's ordinary shares are listed on the London Stock Exchange, trading under the symbol RSE.  REL has 14 active investments spanning decarbonisation, oil and gas, renewable energy and power in the Continental U.S., Western Canada, Gulf of Mexico and Europe.

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:

Josh Prentice

+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 June 2021 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 Performance Review Team ("PRT") as part of the valuation process. The PRT was formed to serve as a single structure overseeing the existing Riverstone portfolio with the goal of improving operational and financial performance.

The Board reviews and considers the valuations of the Company's investments held through the Partnership.