EXHIBIT 99.1
HOUSTON, May 7, 2009 (GLOBE NEWSWIRE) -- NGP Capital Resources Company (Nasdaq:NGPC) (the "Company") today announced its financial results for the first quarter ended March 31, 2009.
Highlights for the quarter ended March 31, 2009:
Stockholders' equity: $242.8 million Net asset value per share: $11.23 Operating Results: Net decrease in stockholders' equity (net assets) from operations: $18.7 million Net investment income: $5.9 million Net increase in unrealized depreciation on portfolio securities, corporate notes and commodity derivative instruments: $24.6 million Dividends declared per common share: $0.20 Portfolio and Investment Activity: New investments made in portfolio companies during period: $12 million Total invested in portfolio companies at March 31, 2009: $300.5 million Number of portfolio companies at March 31, 2009: 19
Portfolio and Investment Activity
During the quarter ended March 31, 2009, the Company funded $12.0 million to existing portfolio companies and received $7.6 million in repayments. The Company did not add any new companies to its portfolio during the first quarter of 2009. At March 31, 2009, the Company's targeted investment portfolio consisted of nineteen portfolio companies totaling $300.5 million. The Company had commitments to fund an additional $49.1 million on total committed amounts of $349.6 million.
The weighted average yield on targeted portfolio investments was 6.51% at March 31, 2009. The weighted average yield on investments in corporate notes was 5.82%, on investments in U.S Treasury Bills and cash equivalents was 0.13% and 0.31%, respectively, as of March 31, 2009. The weighted average yield on the Company's total capital invested at March 31, 2009 was 6.05%.
The primary cause of the decline in the weighted average yield on targeted portfolio investments as of March 31, 2009 is that the calculation includes a negative yield on our investment in the ATP Oil & Gas Corporation limited term royalty, which had a cost basis of $22.5 million as of quarter end. The negative yield is the result of amortization on the investment being substantially higher than the income earned for the month of March 2009 due to lower oil and natural gas prices. In addition, though the investment is substantially hedged and such hedges produced substantial income for the month of March 2009, such income is not included in the yield calculation for targeted portfolio investments as the investment in commodity hedges is not included in the targeted investment portfolio. Further, we continue to maintain our investments in Formidable, LLC ("Formidable") ($37.9 million cost basis), BSR Loco Bayou, LLC ($2.4 million cost basis) and Chroma Exploration & Production, Inc. ($4.2 million cost basis) on non-accrual status.
Operating Results - Three months ended March 31, 2009
Investment income totaled $8.5 million for the quarter ended March 31, 2009, with $6.0 million attributable to interest from the Company's targeted portfolio investments, $3.2 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 and cash equivalents. Operating expenses for the quarter ended March 31, 2009 were $4.0 million and included $1.8 million of advisory and management fees, $1.0 million of interest expense and credit facility fees and $1.2 million of general and administrative expenses. The resulting net investment income for the first quarter of 2009, including a $1.3 million tax benefit, was $5.9 million.
For the three months ended March 31, 2009, the Company experienced a net increase in unrealized depreciation of $24.6 million, consisting of a $21.2 million decrease in targeted portfolio fair value, a $3.2 million decrease in the fair value of commodity derivative instruments and a $0.2 million decrease in the fair value of corporate notes. The $21.2 million decrease in targeted portfolio fair value consisted primarily of increases in unrealized depreciation on TierraMar Energy LP ("TierraMar") preferred LP units, $4.1 million, and Formidable Senior Secured Note, $17.5 million. The increase in unrealized depreciation on TierraMar's preferred LP units was primarily due to changes in our forecast of oil and natural gas prices. The increase in unrealized depreciation on the Formidable Senior Secured Note is primarily due to deterioration in the market for Powder River Basin natural gas assets.
Overall, we had a net decrease in stockholders' equity (net assets) resulting from operations of $18.7 million, or $0.86 per common share for the three months ended March 31, 2009 and dividends declared during the period of $0.20 per common share, resulting in stockholders' equity (net assets) per common share of $11.23 as of March 31, 2009.
Conference Call at 11:00 a.m. Eastern Time on May 7, 2009
The Company invites all interested persons to participate in its conference call on May 7, 2009 at 11:00 a.m. Eastern Time. The dial-in number for the call is (888) 471-3843. International callers should dial (719) 325-2473.
The Company will maintain an audio replay of the call from 2:00 p.m. Eastern Time on May 7, 2009 through midnight Thursday, May 14, 2009. The replay dial-in number is (888) 203-1112. International callers should dial (719) 457-0820. The replay pass code is 9494402. 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
March 31,
2009 December 31,
(Unaudited) 2008
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Assets
Investments in portfolio
securities at fair value
(cost: $299,565,738 and
$294,432,215, respectively) $ 228,217,795 $ 244,229,568
Investments in corporate
notes at fair value
(cost: $11,575,262 and
$11,586,899, respectively) 6,113,300 6,350,000
Investments in commodity
derivative instruments
at fair value (cost:
$480,130 and $774,095,
respectively) 4,729,234 8,212,872
Investments in U.S. Treasury
Bills, at amortized cost
which approximates fair value 76,134,101 --
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Total investments 315,194,430 258,792,440
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Cash and cash equivalents 26,916,388 133,805,575
Accounts receivable 11,672 41,377
Interest receivable 2,730,634 2,410,360
Prepaid assets 1,426,983 1,898,905
Deferred tax assets 6,252,617 200,000
------------- -------------
Total current assets 37,338,294 138,356,217
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Deferred tax assets 797,835 3,600,000
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Total assets $ 353,330,559 $ 400,748,657
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Liabilities and stockholders'
equity (net assets)
Current liabilities
Accounts payable and accrued
expenses $ 328,843 $ 512,926
Management and incentive
fees payable 1,833,848 2,016,214
Dividends payable 4,325,640 8,867,563
Income taxes payable 163,569 3,529,308
Current portion of
long-term debt 75,000,000 75,000,000
------------- -------------
Total current liabilities 81,651,900 89,926,011
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Deferred tax liabilities 1,868,009 --
Long-term debt, less current
portion 27,000,000 45,000,000
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Total liabilities 110,519,909 134,926,011
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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) (1,872,680) (3,420,716)
Undistributed net realized
capital gain (loss) 2,038,312 2,038,312
Net unrealized appreciation
(depreciation) of portfolio
securities, corporate notes
and commodity derivative
instruments (72,560,801) (48,000,769)
------------- -------------
Total stockholders'
equity (net assets) 242,810,650 265,822,646
------------- -------------
Total liabilities and
stockholders' equity
(net assets) $ 353,330,559 $ 400,748,657
============= =============
Net asset value per share $ 11.23 $ 12.29
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NGP CAPITAL RESOURCES COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended
March 31, March 31,
2009 2008
------------- -------------
Investment income
Interest income $ 6,194,539 $ 8,952,116
Royalty income (loss),
net of amortization (894,302) 545,850
Commodity derivative
income, net of
expired options 3,173,852 --
Other income 58,800 40,370
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Total investment income 8,532,889 9,538,336
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Operating expenses
Management fees 1,833,848 1,800,206
Professional fees 166,727 208,979
Insurance expense 200,221 198,817
Interest expense and fees 997,842 2,441,076
State and excise taxes 5,619 9,516
Other general and
administrative expenses 796,949 738,600
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Total operating expenses 4,001,206 5,397,194
------------- -------------
Net investment income (loss)
before income taxes 4,531,683 4,141,142
Benefit (provision) for
income taxes 1,341,993 --
------------- -------------
Net investment income (loss) 5,873,676 4,141,142
------------- -------------
Net increase (decrease) in
unrealized appreciation
(depreciation) on portfolio
securities, corporate notes
and commodity derivative
instruments (24,560,032) (1,746,162)
------------- -------------
Net increase (decrease) in
stockholders' equity
(net assets) resulting
from operations $ (18,686,356) $ 2,394,980
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Net increase (decrease) in
stockholders' equity (net
assets) resulting from
operations per common share $ (0.86) $ 0.14
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For the Three Months Ended
March 31, March 31,
Per Share Data 2009 2008
------------- -------------
Net asset value, beginning
of period $ 12.29 $ 14.30
------------- -------------
Net investment income 0.28 0.24
Net realized and unrealized
gain (loss) on portfolio
securities, corporate notes
and commodity derivative
instruments (1.14) (0.10)
------------- -------------
Net increase (decrease) in
stockholders' equity (net
assets) resulting from
operations (0.86) 0.14
------------- -------------
Net asset value before
dividends 11.43 14.44
Dividends declared (0.20) (0.40)
------------- -------------
Net asset value, end of
period $ 11.23 $ 14.04
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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. NGP Energy Capital Management, based in Irving, Texas, is a leading investment firm with over $9.6 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.
CONTACT: NGP Capital Resources Company
Investment Contact:
Please send investment proposals to:
John Homier
jhomier@ngpcrc.com
Kelly Plato
kplato@ngpcrc.com
Dan Schockling
dschockling@ngpcrc.com
Hans Hubbard
hhubbard@ngpcrc.com
Chris Ryals
cryals@ngpcrc.com
713-752-0062
Investor Relations Contact:
Steve Gardner
713-752-0062
investor_relations@ngpcrc.com