Riverstone Energy Limited ("REL" or the "Company") announces its quarterly portfolio summary as of 30 September 2024, inclusive of updated quarterly unaudited fair market valuations, as well as the quarterly changes in NAV and NAV per share. The Company's NAV as of 30 September 2024 was $401 million, representing a decrease of approximately 13 per cent. from 30 June 2024. As of 30 September 2024, REL had a NAV per share of $15.57 (£11.63), representing a decrease in USD and GBP of 8 and 13 per cent., respectively, compared to the 30 June 2024 NAV per share.
Further information on REL's five largest positions, which account for ~95 per cent. of the portfolio's gross unrealised value is set forth below:
Permian Resources
The valuation for Permian Resources (NYSE: PR) decreased from 1.46x to 1.37x Gross MOIC in the third quarter of 2024. In Q3 2024, PR announced the closing of its acquisition of c. 29,500 net leasehold and c. 9,900 royalty interest acres and related midstream infrastructure from Occidental (NYSE: OXY). The company announced an increase to its quarterly base dividend from $0.06 per share to $0.15 per share. PR also announced the pricing of $1bn 6.25 per cent. senior notes due 2033 to redeem its 7.75 per cent. senior notes due 2026, fund a portion of its recent acquisition of assets from OXY and repay amounts outstanding under its credit facility. The pro-forma company has hedged approximately 29 per cent. of forecasted 2024 crude oil production at a weighted average price of $74.57 per barrel and 20 per cent. of forecasted 2024 natural gas production at a weighted average price of $3.79 per mcf.
Onyx
The valuation multiple for Onyx was unchanged during the third quarter, holding at 3.10x Gross MOIC. CDS margins have reduced materially since 2023 due to high gas storage levels and high wind / solar generation; however, since last quarter, CDS margins have moved in a positive direction. Decommissioning at Farge has commenced and is advancing smoothly. Additionally, Onyx received a withholding tax exemption certificate for OSIM II from BZSt (German federal tax office). The management team continues to work on organic growth initiatives, including the implementation of operational performance improvements and the development of projects related to the energy transition.
Veren (formerly Crescent Point Energy / Hammerhead Energy)
Veren's valuation decreased from 0.89x to 0.85x Gross MOIC during the third quarter of 2024. Since closing the acquisition, Veren's shares have traded down 23.9 per cent. compared to a 11.9 per cent. decrease in its peer group, and a 16.4 per cent. decrease in WTI over the same period. In July 2024, Veren announced its Q2 2024 results, which were in line with guidance, but below market expectations. Veren's unchanged five-year plan is targeting 6 per cent. production CAGR through 2028, driven by the Montney (8 per cent. CAGR) and Duvernay (11 per cent. CAGR), and targeting corporate production of 260 mboe/d. In Q3 2024, Veren delivered its quarterly dividend of C$0.115 per share, implying an annualised dividend yield of 5.3 per cent.
Infinitum
The valuation multiple for Infinitum held at 1.10x Gross MOIC for the third quarter of 2024. In July, the company closed an extension to its Series E, with $35mm of additional funding from Marunouchi Innovation Partners and Rice Investment Group to bring the total round to $220mm. The round will be used to scale the company to meet customer demand and drive decarbonization. Additionally, the company's new facility in Saltillo, Mexico came online this summer. The company's Aircore EC motor won 2024 Sustainability Product of the Year Award at the 2024 Sustainability Awards hosted by Business Intelligence Group, the third year in a row they have been honored at the Sustainability Awards.
GoodLeap (formerly Loanpal)
The valuation multiple for GoodLeap held at 1.00x Gross MOIC for the third quarter of 2024. While short-term macroeconomic environment is still creating business headwinds, the interest rate environment has begun to improve given the Federal Reserve's 50-basis point interest rate cut announced in September. The company also launched its Third-Party Ownership product via its partnership with Palmetto in the quarter.
Other Investments
Solid Power
On 20 September 2024, Solid Power announced it was selected by the U.S. Department of Energy (DOE) Office of Manufacturing and Energy Supply Chains to begin award negotiations for up to $50 million in federal funding under the Bipartisan Infrastructure Law. With this project, Solid Power intends to install the first globally known continuous manufacturing process of sulfide-based solid electrolyte materials for advanced all-solid-state batteries (ASSBs) and expand its electrolyte production capabilities at its Thornton, CO facility.
Group14
On 23 September 2024, Group14 announced it had been selected for an award negotiation of up to $200 million by the U.S. DOE's Office of Manufacturing and Energy Supply Chains as part of the second set of projects funded by the Bipartisan Infrastructure Law to expand domestic battery manufacturing for electric vehicles and the electrical grid. The DOE award would allow Group14 to build a silane factory using its proprietary intellectual property which produces silane at a significantly reduced capital and energy requirement from the conventional process.
Enviva
On 4 October 2024, following the filing of Enviva's Form 8-K related to the Amended Joint Chapter 11 Plan of Reorganization of Enviva Inc. ("Amended Plan"), the New York Stock Exchange (NYSE) Regulation reached its decision that Enviva is no longer suitable for listing pursuant to NYSE Listed Company Manual and delisted the company. In reaching its delisting determination, NYSE Regulation notes that pursuant to the Amended Plan, existing equity interests of the company, including REL's equity interests, will be cancelled and holders thereof will receive no recovery.
Tritium DCFC
At 30 September 2024, REL's debt investment was written down from 0.62x Gross MOIC to 0.03x Gross MOIC. On 8 August 2024, Exicom Tele-systems Limited (NSE: EXICOM), (along with its subsidiaries together referred to as, "Exicom"), India's largest EV charger manufacturer, announced that it had entered into a definitive agreement under which it will acquire business and assets of Tritium. Based on the terms of the definitive agreement, the Company does not expect to receive any further proceeds regarding its loan investment as a result of the ongoing liquidation of Tritium.
