HOUSTON, Aug. 5 TX-NGP-Capital-ern
HOUSTON, Aug. 5 /PRNewswire-FirstCall/ -- NGP Capital Resources Company
(Nasdaq: NGPC) (the "Company") today announced its financial results for the
second quarter ended June 30, 2008.
Highlights for the quarter ended June 30, 2008:
Stockholders' equity: $304.4 million
Net asset value per share: $14.08
Operating Results:
Net increase in stockholders' equity (net assets) from operations: $5.4
million
Net investment income: $3.8 million
Net increase in unrealized appreciation on portfolio securities, corporate
notes and commodity derivative instruments: $1.6 million
Dividends declared per common share: $0.40
Portfolio and Investment Activity:
New investments made in portfolio companies during period: $56.1 million
Total invested in portfolio companies at June 30, 2008: $334.2 million
Number of portfolio companies at June 30, 2008: 18
Portfolio and Investment Activity
Since commencement of investment operations in November 2004 through June
30, 2008, the Company has invested approximately $584 million in 27 portfolio
companies, and received principal repayments of approximately $250 million.
At June 30, 2008, the Company's targeted investment portfolio consisted of 18
portfolio companies totaling $334 million. The Company had commitments to
fund an additional $24 million on total committed amounts of $358 million. At
June 30, 2008, the total portfolio was invested as follows: 34.9% in senior
secured term loans, 5.9% in senior subordinated secured notes, 0.3% in
participating convertible preferred stock, 5.5% in member and partnership
units, 10.3% in net profits interest, 6.1% in limited term royalty interests,
33.1% in U.S. Treasury Bills, 1.6% in corporate notes, 2.1% in cash and cash
equivalents and 0.2% in other investments.
The weighted average yield on targeted portfolio investments was 8.9% at
June 30, 2008. The weighted average yield on investments in corporate notes
was 5.8% and on investments in U.S. Treasury Bills and cash and cash
equivalents was 1.01% as of June 30, 2008. The weighted average yield on the
Company's total capital invested at June 30, 2008 was 6.04%.
Operating Results - Quarter ended June 30, 2008
Investment income totaled $8.2 million for the quarter ended June 30,
2008, with $7.5 million attributable to the Company's targeted portfolio
investments and $0.7 million attributable to investments in corporate notes,
cash and cash equivalents and fee income. Operating expenses for the quarter
ended June 30, 2008 were $4.4 million and included $1.8 million of management
fees, $1.4 million of interest expense and credit facility fees and $1.2
million of general and administrative expenses. The resulting net investment
income was $3.8 million. The Company experienced a net increase in unrealized
appreciation of $1.6 million, consisting of a $1.6 million increase in
targeted portfolio fair value, a $0.2 million increase in the fair value of
corporate notes and a $0.2 million decrease in the fair value of commodity
derivative instruments. Overall, the Company had a net increase in
stockholders' equity (net assets) resulting from operations of $5.4 million,
or $0.24 per share. After giving effect to the $0.40 per common share
dividend declared during the quarter, stockholders' equity (net assets) per
share as of June 30, 2008 was $14.08.
Subsequent Events
As previously announced, in connection with Resaca Exploitation, Inc.'s
("Resaca") $105.5 million initial public offering of shares of common stock on
the Alternative Investment Market of the London Stock Exchange, the Company
converted its Senior Subordinated Secured Convertible Term Loan into shares of
common stock of Resaca and sold 1.554 million of those shares in the offering
for gross proceeds of $4 million. The Company continues to hold 6.8 million
shares of Resaca common stock or approximately 6.9% of Resaca's fully diluted
common shares having a gross value of $17.0 million based on the closing price
of Resaca's common shares on August 4, 2008.
Immediately following its initial public offering, Resaca repaid its
Senior Secured Tranche B Term Loan in full and repurchased overriding royalty
interests held by the Company. The Company has become Resaca's sole lender,
providing it with a $60 million Senior Secured Multiple-Advance Term Loan. At
present, approximately $22 million is outstanding under this facility.
The sale of the overriding royalty interest resulted in realized long term
capital gains of approximately $2.7 million and the sale of the common stock
resulted in short term capital gains of approximately $3.3 million, which will
be recognized in the third quarter of 2008. Such gains may result in
incentive fees payable to the Manager according to the terms of the investment
advisory agreement.
On July 21, 2008, the Company exchanged its $13.4 million Senior Secured
Note and warrants for preferred membership interests in DeanLake Operator, LLC
("DeanLake"). In addition, the Company has agreed to make available an
additional $3.6 million to DeanLake to be used for capital expenditures on
DeanLake's properties.
Conference Call at 11:00 a.m. Eastern Time on August 5, 2008
The Company invites all interested persons to participate in its
conference call on August 5, 2008 at 11:00 a.m. Eastern Time. The dial-in
number for the call is (877) 627-6585. International callers should dial
(719) 325-4867.The pass code for the conference call is 7543625.
The Company will maintain an audio replay of the call from 2:00 p.m.
Eastern Time on August 5, 2008 through 12:00 a.m. Eastern Time on August 13,
2008. The replay dial-in number is (888) 203-1112. International callers
should dial (719) 457-0820. The replay pass code is 7543625.
NGP CAPITAL RESOURCES COMPANY
CONSOLIDATED BALANCE SHEETS
June 30, 2008
(Unaudited)December 31, 2007
Assets
Investments in portfolio securities
at fair value
(cost: $331,601,471 and
$277,947,454, respectively)$338,074,483 $284,228,573
Investments in corporate notes at
fair value
(cost: $11,609,569 and
$11,631,599, respectively)8,821,600 8,955,500
Investments in commodity derivative
instruments at fair value
(cost: $1,546,700 and $0,
respectively) 1,331,854 -
Investments in U.S. Treasury Bills,
at amortized cost which approximates
fair value177,958,876 163,925,625
Total investments526,186,813 457,109,698
Cash and cash equivalents 11,108,53318,437,115
Accounts receivable 10,30817,569
Interest receivable 1,383,271 647,839
Prepaid assets 1,070,521 2,020,655
Total assets$539,759,446 $478,232,876
Liabilities and stockholders' equity
(net assets)
Current liabilities
Accounts payable$595,572 $928,761
Management and incentive fees payable 1,838,009 2,032,107
Dividends payable 8,651,281 9,012,671
Total current liabilities 11,084,86211,973,539
Long-term debt 224,250,000 216,000,000
Total liabilities 235,334,862 227,973,539
Commitments and contingencies
Stockholders' equity (net assets)
Common stock, $.001 par value,
250,000,000 shares
authorized; 21,628,202 and
17,500,332 shares issued and
outstanding, respectively21,62817,500
Paid-in capital in excess of par 307,928,101 245,881,078
Undistributed net investment
income (loss)(7,854,475) (103,394)
Undistributed net realized
capital gain (loss)859,133 859,133
Net unrealized appreciation
(depreciation) of portfolio
securities, corporate notes and
commodity derivative instruments 3,470,197 3,605,020
Total stockholders' equity (net
assets) 304,424,584 250,259,337
Total liabilities and stockholders'
equity (net assets) $539,759,446 $478,232,876
Net asset value per share $14.08$14.30
NGP CAPITAL RESOURCES COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three MonthsFor the Six Months
Ended Ended
June 30, June 30, June 30, June 30,
2008 20072008 2007
Investment income
Interest income $8,152,713 $9,507,862 $17,650,679 $17,929,117
Dividend income- 93,710- 93,710
Other income 44,520 142,237 84,890 197,745
Total investment
income 8,197,2339,743,809 17,735,569 18,220,572
Operating expenses
Management fees1,838,0091,585,4943,638,2153,150,003
Incentive fees -1,054,358-1,054,358
Professional fees224,390 174,987 433,369 328,583
Insurance expense198,812 132,423 397,629 264,846
Interest expense
and fees 1,440,5721,619,2263,881,6483,176,422
State franchise
taxes23,196 34,612 32,712 34,593
Other general and
administrative
expenses713,063 631,4911,451,6641,283,063
Total operating
expenses4,438,0425,232,5919,835,2379,291,868
Net investment income
(loss) 3,759,1914,511,2187,900,3328,928,704
Net realized capital
gain (loss) on
portfolio securities,
corporate notes
and commodity
derivative
instruments -6,666,858-6,666,858
Net increase
(decrease) in
unrealized
appreciation
(depreciation) on
portfolio
securities,
corporate notes
and commodity
derivative
instruments 1,611,3392,291,165 (134,823) 6,021,150
Net increase
(decrease) in
stockholders'
equity
(net assets)
resulting from
operations $5,370,530 $13,469,241 $7,765,509 $21,616,712
Net increase
(decrease) in
stockholders'
equity (net
assets)
resulting from
operations per
common share$0.24$0.78$0.38$1.25
For the Three For the Six
Months Ended Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
Per Share Data (1)
Net asset value, beginning of period $14.04 $14.16 $14.30 $13.96
Increase in net assets as a result of
secondary public stock offering 0.38 - 0.38 -
Underwriting discounts and
commissions related to secondary
public stock offering (0.15) - (0.15) -
Other costs related to secondary
public stock offering (0.03) - (0.03) -
Net increase in net assets from
secondary public offering 0.20 - 0.20 -
Net asset value after public stock
offering 14.2414.1614.5013.96
Net investment income (loss) 0.17 0.26 0.37 0.51
Net realized and unrealized gain
(loss) on portfolio securities,
corporate notes and commodity
derivative instruments 0.07 0.52 0.01 0.74
Net increase (decrease) in
stockholders' equity (net assets)
resulting from operations 0.24 0.78 0.38 1.25
Dividends declared (0.40) (0.31) (0.80) (0.58)
Net asset value, end of period $14.08 $14.63 $14.08 $14.63
(1) Per Share Data is based on common shares outstanding at end of
period.
About NGP Capital Resources Company
NGP Capital Resources Company is a closed-end investment company that has
elected to be treated as a business development company under the Investment
Company Act of 1940. The Company's investment portfolio is principally
invested in energy related private companies. From time to time, the Company
may also invest in public companies. The Company invests primarily in senior
secured and mezzanine loans in furtherance of its business plan and in some
instances receives equity investments in portfolio companies in connection
with such investments. NGP Capital Resources Company is managed by NGP
Investment Advisor, LP, an affiliate of NGP Energy Capital Management, L.L.C.
NGP Energy Capital Management, L.L.C., based in Irving, Texas, is a leading
investment firm with $9.3 billion of cumulative capital under management since
inception, serving all sectors of the energy industry.
This press release may contain forward-looking statements. These forward-
looking statements are subject to various risks and uncertainties, which
could cause actual results and conditions to differ materially from those
projected, including the uncertainties associated with the timing of
transaction closings, changes in interest rates, availability of transactions,
the future operating results of our portfolio companies, changes in regional,
national or international economic conditions and their impact on the
industries in which we invest, or changes in the conditions of the industries
in which we invest, and other factors enumerated in our filings with the
Securities and Exchange Commission (the "SEC").
We may use words such as "anticipates," "believes," "expects," "intends,"
"will," "should," "may" and similar expressions to identify forward-looking
statements. Undue reliance should not be placed on such forward-looking
statements as such statements speak only as of the date on which they are
made. We do not undertake to update our forward-looking statements unless
required by law.
Persons considering an investment in NGP Capital Resources Company should
consider the investment objectives, risks and charges and expenses of the
Company carefully before investing. Such information and other information
about the Company is available in our annual report on Form 10-K, in our
quarterly reports on Form 10-Q and in prospectuses we issue from time to time
in connection with our offering of securities. Such materials are filed with
the SEC and copies are available on the SEC's website, www.sec.gov.
Prospective investors should read such materials carefully before investing.
INVESTMENT CONTACT: Please send investment proposals to: NGP Capital
Resources Company, John Homier (jhomier@ngpcrc.com), Kelly Plato
(kplato@ngpcrc.com) or Dan Schockling (dschockling@ngpcrc.com), 713-752-0062.
INVESTOR RELATIONS CONTACT: Steve Gardner
(investor_relations@ngpcrc.com), 713-752-0062.
SOURCE NGP Capital Resources Company
