HOUSTON, Nov. 5, 2009 (GLOBE NEWSWIRE) -- NGP Capital Resources Company (Nasdaq:NGPC) (the "Company") today announced its financial results for the third quarter ended September 30, 2009.
Highlights for the quarter ended September 30, 2009:
Stockholders' equity: $249.4 million Net asset value per share: $11.53 Operating Results: Net increase in stockholders' equity (net assets) from operations: $15.0 million Net investment income: $3.7 million Net decrease in unrealized depreciation on portfolio securities, corporate notes and commodity derivative instruments: $11.3 million Dividends declared per common share: $0.15 Portfolio and Investment Activity: New investments made in portfolio companies during period: $12.1 million Total invested in portfolio companies at September 30, 2009: $257 million Number of portfolio companies at September 30, 2009: 18
Portfolio and Investment Activity
During the quarter ended September 30, 2009, the Company funded $12.1 million to existing portfolio companies and received $24.9 million in repayments. The Company did not add any new companies to its portfolio during the third quarter of 2009. At September 30, 2009, the Company's targeted investment portfolio consisted of eighteen portfolio companies totaling $257 million. The Company had commitments to fund an additional $5.3 million on total committed amounts of $262.3 million.
The weighted average yield on targeted portfolio investments (excluding revenue from commodity derivative transactions) was 3.63% at September 30, 2009. The weighted average yield on investments in corporate notes was 5.82%, and the weighted average yield on investments in cash and cash equivalents was 0.64%. The weighted average yield on the Company's total capital invested at September 30, 2009 was 3.16%.
Operating Results - Three months ended September 30, 2009
Investment income totaled $6.0 million for the quarter ended September 30, 2009, with $5.9 million attributable to interest from the Company's targeted portfolio investments, $0.8 million attributable to income from commodity derivative instruments, $0.9 million net loss attributable to royalty income, net of amortization, and $0.2 million net income attributable to investments in corporate notes, cash equivalents and fee income from third parties and affiliates. Operating expenses for the quarter ended September 30, 2009 were $3.2 million and included $1.5 million of advisory and management fees, $0.5 million of interest expense and credit facility fees and $1.2 million of general and administrative expenses. The resulting net investment income for the third quarter of 2009, including a $0.9 million tax benefit, was $3.7 million.
For the three months ended September 30, 2009, the Company experienced a net decrease in unrealized depreciation of $11.3 million, consisting of an $11.1 million increase in targeted portfolio fair value, a $0.7 million decrease in the fair value of commodity derivative instruments and a $0.9 million increase in the fair value of corporate notes. The increase in targeted portfolio fair value was largely a result of changes in the estimated current market values of underlying assets. The decrease in the fair value of commodity derivative instruments was a result of the reversal of prior period unrealized appreciation due to realizations in the third quarter of 2009.
Overall, the Company had a net increase in stockholders' equity (net assets) resulting from operations of $15.0 million, or $0.69 per common share, for the three months ended September 30, 2009 and dividends declared during the period of $0.15 per common share, resulting in stockholders' equity (net assets) per common share of $11.53 as of September 30, 2009.
Subsequent Events
On October 2, 2009, the Company entered into a Fourth Amendment to Amended and Restated Revolving Credit Agreement (the "Fourth Amendment'), among the Company, the lender parties thereto and SunTrust Bank, as administrative agent for the lenders. The Fourth Amendment extended the maturity of the Company's Investment Facility from August 31, 2010 to August 31, 2012. The Investment Facility is priced at LIBOR plus 425 to 575 basis points, depending on the amount drawn. The Company paid a 100 basis point fee in conjunction with the extension of the maturity. Three of the four banks in the syndicate reduced their commitments, resulting in the reduction of the current commitments under the Investment Facility from $87.5 million to $67.5 million.
On October 9, 2009, the Company sold its entire investment in Venoco Inc. Senior Notes for approximately $12.3 million, resulting in a realized capital gain of approximately $307,000.
On October 14, 2009, the Company closed an investment with ATP Oil & Gas Corporation ("ATP"). The Company acquired a limited term overriding royalty interest in certain oil and gas producing properties operated by ATP for $15.0 million. The investment will be accounted for as a dollar denominated production payment.
Conference Call at 11:00 a.m. Eastern Time on November 5, 2009
The Company invites all interested persons to participate in its conference call on November 5, 2009 at 11:00 a.m. Eastern Time. The dial-in number for the call is (888) 765-5547. International callers should dial (913) 312-1517.
The Company will maintain an audio replay of the call from 2:00 p.m. Eastern Time on November 5, 2009 through midnight November 11, 2009. The replay dial-in number is (888) 203-1112. International callers should dial (719) 457-0820. The replay pass code is 2442617. The call will also be accessible via the internet, on our Investor Relations page at www.ngpcrc.com.
NGP CAPITAL RESOURCES COMPANY
CONSOLIDATED BALANCE SHEETS
Sept. 30, 2009 Dec. 31, 2008
-------------- --------------
(Unaudited)
Assets
Investments in portfolio securities
at fair value (cost: $257,026,622
and $294,432,215, respectively) $ 193,728,176 $ 244,229,568
Investments in corporate notes
at fair value (cost: $11,551,596
and $11,586,899, respectively) 8,697,900 6,350,000
Investments in commodity derivative
instruments at fair value (cost:
$140,825 and $774,095, respectively) 616,053 8,212,872
-------------- --------------
Total investments 203,042,129 258,792,440
-------------- --------------
Cash and cash equivalents 83,506,819 133,805,575
Interest receivable 1,095,418 2,410,360
Prepaid assets and other
current assets 1,146,045 1,940,282
Deferred tax assets 7,033,472 200,000
-------------- --------------
Total current assets 92,781,754 138,356,217
-------------- --------------
Deferred tax assets -- 3,600,000
-------------- --------------
Total assets $ 295,823,883 $ 400,748,657
============== ==============
Liabilities and stockholders'
equity (net assets)
Current liabilities
Accounts payable and accrued expenses $ 674,190 $ 512,926
Management and incentive fees payable 1,540,756 2,016,214
Dividends payable 3,244,230 8,867,563
Income taxes payable 93,787 3,529,308
Current portion of long-term debt 40,000,000 75,000,000
-------------- --------------
Total current liabilities 45,552,963 89,926,011
-------------- --------------
Deferred tax liabilities 854,605 --
Long-term debt, less current portion -- 45,000,000
-------------- --------------
Total liabilities 46,407,568 134,926,011
-------------- --------------
Commitments and contingencies
Stockholders' equity (net assets)
Common stock, $.001 par value,
250,000,000 shares authorized;
21,628,202 shares issued and
outstanding 21,628 21,628
Paid-in capital in excess of par 315,184,191 315,184,191
Undistributed net investment
income (loss) (2,096,939) (3,420,716)
Undistributed net realized
capital gain (loss) 1,984,349 2,038,312
Net unrealized appreciation
(depreciation) of portfolio
securities, corporate notes and
commodity derivative instruments (65,676,914) (48,000,769)
-------------- --------------
Total stockholders' equity
(net assets) 249,416,315 265,822,646
-------------- --------------
Total liabilities and stockholders'
equity (net assets) $ 295,823,883 $ 400,748,657
============== ==============
Net asset value per share $ 11.53 $ 12.29
============== ==============
NGP CAPITAL RESOURCES COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months For the Nine Months
Ended Ended
------------------------ ------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
----------- ----------- ----------- -----------
Investment income
Interest income $ 6,091,199 $ 7,638,673 $18,658,074 $24,168,913
Royalty income
(loss), net of
amortization (927,004) 2,452,763 (4,595,107) 3,573,202
Commodity
derivative income,
net of expired
options 829,946 (274,625) 5,884,027 (274,625)
Other income 27,526 52,877 144,264 137,767
----------- --------- ----------- -----------
Total investment
income 6,021,667 9,869,688 20,091,258 27,605,257
----------- --------- ----------- -----------
Operating expenses
Management fees 1,540,756 1,944,869 5,021,782 5,583,084
Incentive fees -- 2,526,011 -- 2,526,011
Professional fees 214,591 174,150 701,217 607,519
Insurance expense 199,959 198,812 600,140 596,442
Interest expense
and fees 446,600 1,470,091 2,541,151 5,351,738
State and excise
taxes 30,047 -- 42,732 32,712
Other general
and
administrative
expenses 718,585 690,152 2,261,123 2,134,624
----------- --------- ----------- -----------
Total operating
expenses 3,150,538 7,004,085 11,168,145 16,832,130
----------- --------- ----------- -----------
Net investment
income (loss)
before income
taxes 2,871,129 2,865,603 8,923,113 10,773,127
Benefit (provision)
for income taxes 847,254 1,400,000 2,565,919 1,392,808
----------- --------- ----------- -----------
Net investment
income (loss) 3,718,383 4,265,603 11,489,032 12,165,935
----------- --------- ----------- -----------
Net realized
capital gain
(loss) on
investments
Net realized
capital gain
(loss) on
portfolio
securities,
corporate notes
and commodity
derivative
instruments -- 18,301,090 (53,963) 18,301,090
Benefit
(provision)
for taxes on
capital gain -- (4,300,000) -- (4,300,000)
----------- ----------- ----------- -----------
Total net
realized
capital gain
(loss) on
investments -- 14,001,090 (53,963) 14,001,090
----------- ----------- ----------- -----------
Net increase
(decrease) in
unrealized
appreciation
(depreciation) on
portfolio
securities,
corporate notes
and commodity
derivative
instruments 11,313,227 (3,812,904) (17,676,145) (3,947,727)
----------- ----------- ----------- -----------
Net increase
(decrease) in
stockholders'
equity (net
assets) resulting
from operations $15,031,610 $14,453,789 $(6,241,076) $22,219,298
=========== =========== =========== ===========
Net increase
(decrease) in
stockholders'
equity (net
assets)resulting
from operations
per common share $ 0.69 $ 0.66 $ (0.29) $ 1.02
=========== =========== =========== ===========
Per Share Data (1) For the Three Months For the Nine Months
Ended Ended
------------------------ ------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Net asset value,
beginning of
period $ 10.99 $ 14.08 $ 12.29 $ 14.30
----------- ----------- ----------- -----------
Net increase in
net assets from
secondary public
offering -- -- -- 0.22
----------- ----------- ----------- -----------
Net asset value
after public
offering 10.99 14.08 12.29 14.52
----------- ----------- ----------- -----------
Net investment
income 0.17 0.20 0.53 0.56
Net realized and
unrealized gain
(loss) on
portfolio
securities,
corporate notes
and commodity
derivative
instruments 0.52 0.46 (0.82) 0.46
----------- ----------- ----------- -----------
Net increase
(decrease) in
stockholders'
equity (net
assets)resulting
from operations 0.69 0.66 (0.29) 1.02
----------- ----------- ----------- -----------
Net asset value
before dividends 11.68 14.74 12.00 15.54
Dividends declared (0.15) (0.40) (0.47) (1.20)
----------- ----------- ----------- -----------
Net asset value,
end of period $ 11.53 $ 14.34 $ 11.53 $ 14.34
=========== =========== =========== ===========
(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, non-diversified management investment company that has elected to be regulated 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 over $9.5 billion of cumulative capital under management since inception, serving all sectors of the energy industry.
The NGP Capital Resources Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4362
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), Dan Schockling (dschockling@ngpcrc.com), Hans Hubbard (hhubbard@ngpcrc.com), or Chris Ryals (cryals@ngpcrc.com), 713-752-0062.
INVESTOR RELATIONS CONTACT: Steve Gardner (investor_relations@ngpcrc.com), 713-752-0062.