Riverstone Energy reports on solid quarter

The FTSE 250 company said its net asset value per share at the same time was $20.45 or £15.27, with a profit during the quarter of $59.8m.

Basic profits per share reached 70.78 cents, the board confirmed.

The company’s market capitalisation at period end was $1.39bn or £1.04bn, with its share price on 30 September reaching $16.45 or £12.28.

During the quarter, Riverstone invested a total of $39m, which consisted of $22m in ILX Holdings III, $8m in Three Rivers Natural Resources Holdings III, $4m in Sierra Oil and Gas Holdings, $3m in Liberty Resources II, and $1m in Meritage Midstream Services III.

Total realisations during the period were $14m, which came from Rock Oil Holdings and Riverstone Credit Opportunities.

The board said total gross committed capital as at 30 September was $1.8bn, with total net committed capital standing at $1.72bn, or 119% of net capital available.

Total net capital invested as at period end was $1.35bn, or 94% of net capital available.

“Net asset value has grown to $20.45 per share, an increase of 4% since last quarter and 11% since the third quarter of 2016,” said Riverstone chairman Richard Hayden.

“This reflects continued operational successes at the portfolio level, in particular of Centennial, as well as the company's overall emphasis on low-cost basins.”

David M Leuschen and Pierre F Lapeyre Jr, co-founders of Riverstone, added in a joint statement that the company’s investments continued to execute upon their development strategies and grow value for shareholders, examples of which included Meritage III's ongoing expansion of its midstream infrastructure in Western Canada, Centennial's focus on delivering strong well results in the Delaware Basin and additional appraisal drilling by ILX III.

“We believe that investors with a long-term outlook will be rewarded as Riverstone utilises the breadth of its platform and best-in-class management teams to capitalise on value-creating opportunities,” Leuschen and Lapeyre said.