Riverstone Energy Reports Half-Year Results and Confirms Managed Wind-Down

Riverstone Energy half-year 2025: results, portfolio update and a managed wind-down

Riverstone Energy Limited (RSE) has posted its half-year numbers to 30 June 2025 and, crucially, confirmed that shareholders approved a managed wind-down at the EGM on 22 August 2025. The Board’s aim is straightforward: realise assets in an orderly fashion and return capital to shareholders.

Against a choppy backdrop for both oil and decarbonisation names, the portfolio held up, registering a small profit and modest NAV progress in US dollars.

Key numbers investors should know

Metric (30 June 2025)	Figure
Unaudited NAV	$372 million (£271 million)
NAV per share	$15.11 / £11.01
Profit for the period	$3.0 million
Basic EPS	12.16 cents
Total liquidity (cash and public portfolio)	$285 million
Cash balance	$73.0 million
Market capitalisation	$270 million (£197 million)
Share price	$10.98 / £8.00
Unfunded commitments	$6.2 million
Shares outstanding	24,591,380

FX used by the Company: GBP:USD 1.3720 as of 30 June 2025.

Discount to NAV and why it matters right now

At period end, RSE’s NAV per share was $15.11 (£11.01) versus a share price of $10.98 (£8.00). That is a gap of $4.13 per share (or £3.01 per share). On a company level, the NAV of $372 million compares to a market cap of $270 million – a $102 million difference.

In the context of an approved wind-down, that gap becomes the central investment debate. If the manager can realise assets close to stated values, there is clear scope for value to be returned above the current share price. The flip side is execution risk and market conditions, particularly around the decarbonisation book.

Operational highlights and cash generation

• Net realisations and distributions of $4.1 million during the period, from Permian Resources ($3.0 million) and Whitecap Resources ($1.1 million).
• Cash of $73.0 million and total liquidity of $285 million. For clarity, “liquidity” here means cash plus the public equity portion of the portfolio.
• Unfunded commitments are modest at $6.2 million. The Company notes that expected funding of the remaining Onyx commitment is nil in 2025 and later years.

Bottom line: liquidity is ample relative to the $270 million market cap, which offers flexibility for an orderly realisation programme.

Portfolio breakdown: conventional resilience vs decarbonisation headwinds

Conventional energy holdings remain the backbone

• Permian Resources – Gross MOIC stayed at 1.39x with $268 million invested, $235 million realised and $137 million gross unrealised value, totalling $372 million.
• Whitecap Resources – Small uptick to a 0.87x Gross MOIC. This follows Veren completing its combination with Whitecap during the period.
• Onyx (private) – A bright spot with a 2.80x Gross MOIC, backed by $60 million invested and $167 million of gross realised plus unrealised value.

Aggregate conventional portfolio (public and private) sits at a 1.28x Gross MOIC with $798 million of gross realised and unrealised value.

Decarbonisation portfolio remains mixed

• GoodLeap – Flat at 1.00x Gross MOIC.
• Infinitum – Flat at 0.65x.
• Solid Power – Improved from 0.16x to 0.33x, but still below cost.
• Group14 – Marked down to 0.25x from 0.75x.

Total decarbonisation (public and private) stands at a 0.57x Gross MOIC with $60 million of gross realised and unrealised value. The Investment Manager flags a deteriorating investment climate in the US due to policy and subsidy uncertainty. In plain English: it has been a tough tape, and the plan is to preserve value and set up orderly exits.

Managed wind-down: what it means for shareholders

The Board proposed, and shareholders approved, a managed wind-down at the EGM on 22 August 2025. The stated objective is to “secure and return capital” through an orderly realisation of the portfolio. The Investment Manager is now focused on crystallising value rather than deploying capital.

Practically, investors should expect fewer new investments, more disposals as market windows open, and continued attention to the most liquid parts of the book first – notably the public holdings and cash. Timing and quantum of returns have not been disclosed.

Costs, fees and performance carry: important context

RSE’s disclosures are explicit on costs and carry. There is a 1.5% per annum management fee on net assets (including cash). Performance fees of 20% apply to applicable gross profits, but no further performance fees will be payable until $149.9 million of realised and unrealised losses to date are made whole with future gains. $22.1 million of performance allocation fees that would have been due under the prior agreement were not accrued as the Company has not met the Cost Benchmark at 30 June 2025.

Translation: there is a meaningful hurdle before carry resumes, which aligns incentives with shareholders during the wind-down. As ever, remember that Net MOIC will be lower than Gross MOIC after fees, expenses and taxes.

Share buybacks: a notable driver of per-share value

Since launching the buyback on 1 May 2020, RSE has repurchased 37,075,536 shares at an average £4.44. Over the same period to 30 June 2025, the share price moved from £2.20 to £8.00 – more than 3.6x. Current shares outstanding are 24,591,380.

With a wind-down underway, buybacks sit alongside distributions as tools to narrow the discount and return cash. The RNS does not disclose future buyback intentions.

Quarterly valuation colour: what moved in Q2

• Permian Resources pursued two bolt-on deals, including a $608 million acquisition from APA Corporation, supporting its growth strategy.
• Veren closed its combination with Whitecap Resources, which is now part of RSE’s public exposure.
• Decarbonisation marks were mixed, with Solid Power bouncing and Group14 marked lower.

Overall portfolio gross multiple ticked to 1.18x from 1.17x during the quarter across conventional and decarbonisation holdings.

What I’m watching next

• Realisation cadence – particularly from the public holdings and any private sales processes.
• Discount progress – the $4.13 per-share gap between NAV and price is the key yardstick.
• Cash deployment – use of cash in the wind-down phase, including any distributions to shareholders. Not disclosed yet.
• Decarbonisation exits – manager commentary points to preservation and orderly sales; market conditions will drive timing.

My take: cautiously constructive into the wind-down

Positives: ample liquidity, modest commitments, and conventional winners like Onyx and Permian offsetting weaker names. The discount to NAV is sizeable, and with a formal wind-down, the strategy is now aligned to unlocking that value. Governance signals are shareholder-friendly: carry is back-ended, and the buyback history is strong.

Risks: decarbonisation marks remain fragile, commodity price softness can bite the conventional book, and realisations depend on market windows. Timelines and distribution plans are not disclosed.

On balance, it is a sensible reset. If the manager executes well, today’s price embeds a margin of safety versus stated NAV. As ever, do your own research and keep an eye on future announcements and the company’s website for detailed updates.