Riverstone Energy 2016 NAV up 26%; posts $351m profit

Investment company Riverstone Energy (REL) on Wednesday reported a full year profit of $351.4m (£283.5m), adding that its net asset value increased 26% to $20.11 (£16.29).

REL said it now had a strong portfolio of 16 active investments in the US, Canada, Mexico, and Europe, covering both onshore and offshore as well as conventional and unconventional exploration & production, midstream and credit.

It added that it had completed its first realisation, the sale of Rock Oil Holdings LLC, resulting in a gross multiple on investment capital of 2.1 and a gross internal rate of return of 78% on the $114m.

The company invested a total of $536m during the year, bringing total net capital invested as of 31 December 2016 to $1.12bn, or 76% of net capital available.

During 2016, REL committed $268m to Centennial Resource Development, Inc. and made five additional commitments to existing companies, totaling $269m, as well as reduced commitments to two companies, totaling $188m, bringing current commitments as of 31 December 2016 to $1.9 bn, or 126%.

REL said its largest exposure was to the Permian basin and Eagle Ford, where it has invested $448m, or 35%, of its capital, with Centennial being its largest investment, representing 21 per cent. of capital invested and 27 per cent. of the gross unrealised value of the portfolio.

The company said it believed that energy producers in low-cost basins with an oil-weighting will continue to outperform.
“Energy market fundamentals remain supportive following sharp declines in capital expenditure and drilling activity,” added.