HOUSTON, Aug 05, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- 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.
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 value 177,958,876 163,925,625 Total investments 526,186,813 457,109,698 Cash and cash equivalents 11,108,533 18,437,115 Accounts receivable 10,308 17,569 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 11,084,862 11,973,539 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, respectively 21,628 17,500 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 Months For the Six Months Ended Ended June 30, June 30, June 30, June 30, 2008 2007 2008 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 8,197,233 9,743,809 17,735,569 18,220,572 Operating expenses Management fees 1,838,009 1,585,494 3,638,215 3,150,003 Incentive fees - 1,054,358 - 1,054,358 Professional fees 224,390 174,987 433,369 328,583 Insurance expense 198,812 132,423 397,629 264,846 Interest expense and fees 1,440,572 1,619,226 3,881,648 3,176,422 State franchise taxes 23,196 34,612 32,712 34,593 Other general and administrative expenses 713,063 631,491 1,451,664 1,283,063 Total operating expenses 4,438,042 5,232,591 9,835,237 9,291,868 Net investment income (loss) 3,759,191 4,511,218 7,900,332 8,928,704 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 1,611,339 2,291,165 (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 14.24 14.16 14.50 13.96 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 (firstname.lastname@example.org), Kelly Plato (email@example.com) or Dan Schockling (firstname.lastname@example.org), 713-752-0062.
INVESTOR RELATIONS CONTACT: Steve Gardner (email@example.com), 713-752-0062.
SOURCE NGP Capital Resources Company
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