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Riverstone Energy's NAV rises on the back of improved oil prices
Riverstone Energy saw its net asset value rise to $20.63 per share in its last financial year, with recent US tax reforms and rebounding oil prices helping push the firm ahead.
The FTSE-250 resident's NAV rose $0.52, or 2.6%, during the year ended 31 December as success seen at Liberty II, its largest investment, and the Powder River Basin, plus several opportunistic acquisitions in the Bakken drove the uplift in its portfolio.
Riverstone made $116m worth of disposals in the year, letting go of CanEra and Origo Exploration, but made a total of $194m worth of new investments into the likes of Hammerhead Resources, ILX Holdings, Liberty Resources and more. Earlier this month it agreed to sell all of its Three Rivers assets, an Austin-based oil and gas company for an undisclosed sum to an unnamed buyer.
The firm also realised a total of $114m over the twelve months, with $87m coming from Centennial Resource Development, with the remaining $27m being split between Rock Oil Holdings, Riverstone Credit Opportunities, Can Era, Fieldwood Energy, and Hammerhead.
Despite total comprehensive profit crashing to $44.6m from the $351.4m seen a year earlier, Riverstone seemed confident of the coming year.
Chairman Richard Hayden, said, "2017 was another good year for REL as its investments continued to execute upon their strategies and the market environment improved. While there are a number of factors which could disrupt the recovery, industry has emerged from the down-cycle with improved health after slashing costs and repairing balance sheets."
"This, along with constructive fundamentals for crude oil, should provide a fertile environment for REL to grow value, capitalise upon improved market sentiment and make attractive realisations for investors," he concluded.
As of 0840 GMT, shares had picked up 1.19% to 1,188.00p.