Riverstone exits investment in coal producer Foresight

Illinois coal producer Foresight Energy LP (NYSE: FELP) announced Feb. 2 that E. Bartow Jones, a member of the Board of Directors of its general partner, will step down from the Board effective that day.

Jones, a partner at Riverstone Holdings LLC, served on the Board since FELP’s IPO in June 2014. Jones’s resignation from the Board follows the sale by Riverstone and its affiliates of all their ownership interest in Foresight Reserves LP (FRLP), FELP’s parent, to the remaining partners of FRLP, which are all Chris Cline-controlled companies and trusts for the benefit of Cline family members. Cline, a veteran of the West Virginia coal industry, founded Foresight several years ago as an Illinois coal producer. Following Jones’s departure, the Board of Directors will have six members.

“I have enjoyed working with Chris and his team since 2007, when Foresight’s longwall mines were only ideas. From 2007 to today, Chris and his management team executed year after year on their plan to build the low cost operator in the Illinois Basin. Today, I leave the Company in the hands of a great management team, and I look forward to watching them continue to grow and execute,” stated Jones.

“Bartow and the entire Riverstone team were a pleasure to work with for the last seven years. Riverstone’s gutsy investment back in 2007 helped us grow right through the global financial crisis in 2008 and 2009 and really demonstrated to me the practical advantages of partnering with experienced, knowledgeable, energy investors,” said Chairman Cline. “Buying Riverstone’s equity position today represented an attractive opportunity for us to re-invest in the long term prospects of Foresight Energy’s business, and also allowed Riverstone to lock in excellent returns for their patient investors.”

Cline also noted that he looks forward to working with Riverstone on other projects in the future.

FELP is a leading coal producer in the Illinois Basin region of the United States with control of over three billion tons of coal reserves currently supporting four mining complexes that heavily feature high-producing longwall mining of high-sulfur coal. FELP’s logistics give each of its mining complexes multiple modes of transportation to reach the end-users for its coal, including rail, barge and truck. FELP serves both the domestic and international markets.

Riverstone is an energy and power-focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with approximately $27bn of equity capital raised. Riverstone conducts buyout and growth capital investments in the exploration & production, midstream, oilfield services, power and renewable sectors of the energy industry. With offices in New York, London, Houston and Mexico City, the firm has committed about $29bn to 116 investments in North America, Latin America, Europe, Africa and Asia.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.