Less than two years later, Riverstone is ready to monetize by taking Three Rivers public. Three Rivers' S-1 does not state how many shares will be sold or their expected price. It does indicate Riverstone pulled $66 million from Three Rivers since inception. Over $60 million came from a "distribution," while nearly $6 million came from placement and management fees. The S-1 did not indicate the management fee paid for 2011.
Three Rivers used debt and equity to purchase assets from Cheasapeake Energy and Samson Resource. JP Morgan and BNP Paribas syndicated a $600 million credit agreement with Three Rivers. The base borrowing is $325 million. The S-1 stated:
Our company was formed in March 2010 for the purpose of engaging in the oil and gas exploration and production business. We began active oil and gas operations in April 2010 following our acquisition of developed and undeveloped properties from Chesapeake Energy Corporation ("the Chesapeake Acquired Properties") at an aggregate net purchase price of $202.8 million. In January 2011 the Company purchased all of the operated assets in the Permian Basin from Samson Resources Company ("the Samson Acquired Properties") at a purchase price of $343.5 million.Not only is The Carlyle Group a virtual nonprofit organization, so is Three Rivers:
The Company is not a taxable entity for either U.S. federal income tax purposes or the majority of states that impose an income tax. Income taxes are generally borne by the members through the allocation of taxable income. Accordingly, no recognition has been given to federal income taxes in the accompanying consolidated financial statements.
The Carlyle Group's Daniel A. D'Aniello and Edward J. Mathias exercise investment decision making for 99.9% of Three Rivers' Series A stock units. Carlyle announced it would no longer partner with Riverstone on new funds It's a long term breakup.
Rest assured, Carlyle will profit handsomely. A $300 million IPO puts Carlyle/Riverstone $90 million in the black. Any future stock sales will be pure profit.
Will they garner a double, triple or quad for their two year holding of Three Rivers? How much Three Rivers stock will Carlyle's co-founders, the DBD's, park in the Cayman Islands?
