Riverstone raises $172m in stake sale
Riverstone Energy has raised $172m (£125m) by selling its stake in a business operating in the Gulf of Mexico to its joint venture partner.
The energy investment company said the all-cash deal to sell its one-third interest in ILX Holdings III to Ridgewood Energy closed on signing. ILX buys non-operated working interests in oil-focused exploration projects in the Gulf of Mexico.
Riverstone said the sale provided extra funds for investment in decarbonisation and low-carbon power generation and liquidity to support share repurchases. The company's shares rose 11.6% to 357.11p at 10:14 BST.
Richard Hayden, Riverstone's chairman, said: "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 programme on the open market when shares are trading below intrinsic value and may also consider tender offers and dividends in the future."
On 30 June, pro forma for the sale, Riverstone had $221m of cash and $86m of freely marketable securities with $6m of securities subject to lockup.