REL Exits ILX III in Low Carbon Energy Transition

RNS Number : 0539G

Riverstone Energy Limited

22 July 2021

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

LEI: 213800HAZOW1AWRSZR47

Riverstone Energy Limited Exits ILX III, strengthening liquidity and accelerating transition to low carbon energy portfolio

London, UK (22 July 2021).  Riverstone Energy Limited ("REL"), has sold its one-third ownership interest in ILX Holdings III LLC ("ILX III" or the "Company") to an institutional investment fund managed by Ridgewood Energy Corporation ("Ridgewood"). Following this transaction, REL no longer owns any interest in ILX III[1].

The transaction with Ridgewood is all cash and closed upon signing but is subject to certain post-closing purchase price adjustments. Estimated total net proceeds from the sale are $172 million, including prior realised distributions. This represents approximately 1.0x Gross MOIC, which is a 23% premium to REL's 0.8x Gross MOIC valuation at 31 December 2020.

ILX III is a Houston-based joint-venture with Ridgewood, focused on the strategy of acquiring non-operated working interests in oil-focused exploration projects in the Gulf of Mexico. ILX III represented the third partnership that Riverstone's Global Energy & Power Funds established with Ridgewood since 2010. 

Richard Hayden, Chairman and Non-Executive Independent Director of REL, commented: "The proceeds from REL's exit of ILX III provide additional funds to accelerate our investments in decarbonisation and low-carbon power generation. It also provides improved liquidity to support Board approved share repurchases. As of 30 June 2021, pro forma for this sale, REL holds total cash of $221 million. In addition, as of 30 June 2021, REL owns $86 million of freely marketable securities and $6 million of securities subject to a lock-up.

We believe that our focus on originating and executing investments that support the portfolio's focus on decarbonisation and low-carbon power generation themes will provide REL shareholders with access to a unique set of opportunities that generate strong financial returns while having a positive impact on climate change.

The Board and Investment Manager are committed to maximising value from REL's oil and gas assets to support returns to shareholders and continued investment in low carbon energy assets. With a stronger balance sheet , subject to market conditions, capital needs for the current portfolio and the new investment opportunities, the Board will continue the Board authorised buyback program on the open market when shares are trading below intrinsic value and may also consider tender offers and dividends in the future."

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.  Following this exit from ILX III, REL has 12 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

About Riverstone Holdings LLC:

Riverstone is an energy and power‐focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with approximately US$41 billion of capital raised. Riverstone conducts buyout and growth capital investments in the E&P, midstream, oilfield services, power, and renewable sectors of the energy industry. With offices in New York, London, Houston, Mexico City, Amsterdam and Menlo Park, Riverstone has committed nearly US$43 billion to more than 200 investments in North America, Latin America, Europe, Africa, Asia, and Australia.

For further details, see www.RiverstoneLLC.com

Neither the contents of Riverstone Energy Limited's nor Riverstone Holdings' websites 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:

Jingcai Zhu

[phone]

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[1] REL will continue to own 43,333 shares of Talos Energy Inc stock (NYSE:TALO) in connection with its former investment in ILX III

 

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