1st May 2020 15:41
(Alliance News) - Riverstone Energy Ltd on Friday said it will be conducting a share repurchase programme despite challenges within the oil market.
The investor in energy sector said during the first quarter, the West Texas Intermediate spot prices and S&P Oil & Gas Exploration & Production Index decreased by 67% and 65%, respectively, largely due to the macro backdrop becoming tumultuous as the confluence of the coronavirus pandemic and geopolitical instability with regards to OPEC+ have created unprecedented challenges within energy markets.
On Thursday last week, Riverstone and its investment manager were in discussions around the desirability and method of returning some of the company's existing uninvested cash to shareholders.
On Friday, Riverstone said it is initiating a buyback programme with the intention of returning GBP50 million to shareholders via on market buybacks.
The company said it intends to to repurchase a maximum of 12 million of its shares.
The buybacks will be funded from the company's resources. No maximum consideration payable has been determined by the company for any buyback, it said.
Riverstone shares were trading 42% higher in London on Friday at 214.00 pence each.
By Evelina Grecenko; [email protected]
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