Riverstone Energy share buyback programme marches on after £158m spending spree

Riverstone Energy’s underlying assets per share ticked up seven per cent over the last six months, as the company continued an aggressive share repurchase programme.

Riverstone’s monster share buyback programme has helped the energy-focused investment trust outperform its peer group over the past one and three years.

The trust’s share price has returned 42.2 per cent over the last year and 105 per cent over the last three, compared to 12 per cent and 28.6 per cent, respectively for the average commodities and natural resources trust.

During the month of March alone, Riverstone acquired 15m of its own shares for a total of £158m. It went on to spend a further £8.5m in May. A further £22m was allocated for the same purpose at its annual general meeting.

Despite this, the trust’s share price still trades at a whopping 43.6 per cent discount to underlying assets.

Focusing on energy, Riverstone continues to hold both conventional energy assets and energy transition and decarbonisation investments.

The trust made two realisations and distributions in the first half of the year in Permian Resources (£2.7m) and Rock Oil (£1.4m)

It currently has a cash balance of $94m (£72m) and $6m (£5m) in potential commitments.

“No further performance fees will be payable until the $95.4m (£73m) of realised and unrealised investment losses to date as at 30 June 2024 are made whole with future investment gains,” the company said.

“In the first half of 2024, we have seen an improvement in the performance of our conventional energy investments being more than offset by the continued headwinds facing the decarbonisation portfolio,” Riverstone chair Richard Horlick said.

“We have also now returned to shareholders, by means of a $199m (£153m) tender offer, the vast majority of the proceeds realised from last year’s sale of Hammerhead Energy Inc.

“The board remains committed to driving shareholder value from our portfolio and is continuing to execute its ongoing share buyback programme.”