Riverstone exits Pipestone Energy – Riverstone Energy has sold its entire position in Pipestone Energy Corp., a Calgary-based oil and gas exploration company publicly listed on the Toronto Stock Exchange, for CAD4.55 per share. This represents a 6.8% discount to the closing price of Pipestone Energy on 4 February 2022 and a 2.0% to the 30-day volume-weighted average price. The 11.72m share block sale, 27 times the stock’s average daily trading volume, generated CAD53.0m in net proceeds. Riverstone Energy got back about 64 cents in the dollar on its investment.
Riverstone Energy plans to use the proceeds to contribute to additional investments in decarbonisation and energy transition, as well as an increased share buyback programme. The share buyback programme will be subject to approval at an extraordinary general meeting (EGM), as detailed below.
The company intends to recommence its share buyback programme following publication of its 2021 annual report and audited financial statements currently scheduled for 24 February 2022.
Since 11 May 2021, 7,744,935 ordinary shares have been bought back at a total cost of approximately £36m, with £4m remaining of the £40m allocated to the repurchases in May and October 2021. The board and the manager have now agreed to allocate an additional £46m to the programme.
About Pipestone Energy Corp
Pipestone is an oil and gas exploration and production company focused on developing its large contiguous and condensate rich Montney asset base in the Pipestone area near Grande Prairie. Pipestone is fully funded to grow its production from 25 Mboe/d in 2021 to 35 Mboe/d (midpoint) in 2022, while generating significant free cash flow and de-leveraging the business. Pipestone is committed to building long term value for its shareholders while maintaining the highest possible environmental and operating standards, as well as being an active and contributing member to the communities in which it operates. Pipestone shares trade under the symbol PIPE on the TSX. For more information, visit www.pipestonecorp.com.
[One more step along the road to a fund focused more on the future of the energy market and, hopefully, a narrower discount.]
RSE : Riverstone exits Pipestone Energy