Exhibit 99.1
NGP Capital Resources Company Announces 3rd Quarter 2005 Financial Results
HOUSTON--(BUSINESS WIRE)--Nov. 3, 2005--NGP Capital Resources
Company (NASDAQ:NGPC) today announced financial results for the third
quarter ending September 30, 2005.
Highlights for the quarter ending September 30, 2005:
Stockholders' Equity: $244 million
Net Asset Value per share: $14.02
Operating Results (in thousands):
Net increase in stockholders' equity (net assets) from operations: $3,393
Net investment income: $2,817
Net realized capital gain on portfolio securities: $173
Net unrealized appreciation on portfolio securities: $403
Portfolio Investment Activity:
Portfolio investments added: 2
Investments during the quarter: $39.3 million
Number of portfolio companies at September 30, 2005: 7
Portfolio and Investment Activity
During the three months ended September 30, 2005, we added two
investments to our portfolio. In August, we extended a $25 million
Senior Secured Bridge Loan to Millennium Offshore Group, Inc. on which
we had advanced $22.5 million as of the end of the quarter. In
September, we acted as agent on a multi-layered investment in Chroma
Exploration & Production, Inc., creating a $50 million Senior Secured
Multiple Advance Term Loan Facility, with currently committed and
available amounts totaling $19.5 million. We have committed to fund
50% of the facility, and as of the end of the quarter we had advanced
$9.75 million. In addition to the loan facility, we purchased $2
million of Chroma Series A Participating Convertible Preferred Stock.
Three of our existing portfolio companies drew additional funds on
their facilities during the quarter as follows: TierraMar Energy, LLC
borrowed $1.6 million; C-Gas, LLC borrowed $3.3 million; and Atchee
CBM, LLC borrowed $145 thousand.
As of September 30, 2005, we had commitments to or investments in
7 portfolio companies totaling $122 million, of which $106 million was
outstanding. During the third quarter, we sold $15 million of our
investments in investment grade senior notes issued by independent
exploration and production companies, realizing capital gains of $173
thousand.
As of September 30, 2005 our portfolio was invested as follows:
19.3% in senior subordinated secured notes, 17.5% in senior secured
bridge and multiple-advance term loans, 5.1% in corporate senior
notes, 0.8% in preferred stock, 8.3% in investment grade senior notes,
42.3% in U.S. Treasury Bills, and 6.7% in cash and cash equivalents.
At September 30, 2005, the annualized weighted average yield
(exclusive of capital gains and royalty income) of our targeted
investments was 12.8%. The annualized weighted average yield of our
investment grade senior notes was 5.4%. The annualized weighted
average yield of our U.S. Treasury Bills and cash equivalents was
2.7%. Computed yields use interest rates as of the balance sheet date
and include amortization of loan origination fees, original issue
discount and market premium or discount, weighted by their respective
costs when averaged.
Operating Results - Quarter ended September 30, 2005
Investment income totaled $4.4 million for the quarter ended
September 30, 2005, with $2.9 million attributable to our targeted
investments and $1.5 million attributable to investments in cash
equivalents and investment grade senior notes. Operating expenses for
the quarter were $1.5 million and included $0.9 million of management
fees and $0.6 million of general and administrative expenses. The
resulting net investment income was $2.8 million. For the quarter
ending September 30, 2005, our portfolio experienced net unrealized
appreciation of $0.4 million attributable to changes in market prices
of the investment grade and corporate senior notes. We also realized a
capital gain of $0.2 million on the sale of $15 million in investment
grade senior notes. Overall, we had a net increase in stockholders'
equity (net assets) resulting from operations of $3.4 million, or
$0.20 per share. After giving effect to the $0.14 per common share
dividend declared during the quarter, stockholders' equity (net
assets) per share as of September 30, 2005 was $14.02.
Operating Results - Nine months ended September 30, 2005
Investment income totaled $12.3 million for the nine months ended
September 30, 2005, with $7.7 million attributable to our targeted
investments and $4.6 million attributable to investments in cash
equivalents, auction rate securities and investment grade senior
notes. Operating expenses for the period were $4.9 million and
included $2.7 million of management fees and $2.2 million of general
and administrative expenses. The resulting net investment income was
$7.3 million. For the nine months ending September 30, 2005, our
portfolio experienced net unrealized depreciation of ($1.0) million
attributable to changes in market prices of the investment grade and
corporate senior notes. We also realized capital gains of $0.3 million
on the sale of $25 million in investment grade senior notes. Overall,
we had a net increase in stockholders' equity (net assets) resulting
from operations of $6.6 million, or $0.38 per share for the nine
months ended September 30, 2005 and declared dividends during such
period totaling $0.39 per share, resulting in stockholders' equity
(net assets) per share of $14.02 as of September 30, 2005.
Subsequent Events
On October 31, 2005 Millennium Offshore Group, Inc. repaid in full
the $22.5 million balance outstanding on its $25 million Senior
Secured Bridge Loan, which represented approximately 9% of our total
investments as of September 30, 2005. In addition, Millennium
repurchased our overriding royalty interest in its properties
resulting in a capital gain of approximately $1 million, which will be
recognized in the fourth quarter of 2005.
Conference Call at 11:00 a.m. Eastern Time on November 3, 2005
NGPC invites all interested persons to participate in its
conference call on Thursday, November 3, 2005 at 11:00 a.m. Eastern
Time. The dial-in number for the call is 800-289-0572. International
callers should dial 913-981-5543. The Company will maintain an audio
replay of the call from 2:00 p.m. Eastern Time on November 3, 2005
through 11:59 p.m. Eastern Time on November 9, 2005. The replay
dial-in number is 888-203-1112. International callers should dial
719-457-0820. The replay pass code is 9790604.
NGP CAPITAL RESOURCES COMPANY
BALANCE SHEET
September 30, 2005 December 31, 2004
(unaudited) (audited)
------------------ -----------------
Assets:
Investments in portfolio
securities at fair value (cost:
$104,497,598 and $65,770,724,
respectively) $105,191,631 $66,061,513
Investments in agency and auction
rate securities, at cost which
approximates fair value - 41,301,002
Investments in corporate notes
(cost: $21,737,866 and $0,
respectively) 20,351,400 -
Investments in U.S. treasury
bills, at cost which
approximates fair value 103,977,808 -
------------------ -----------------
Total investments 229,520,839 107,362,515
------------------ -----------------
Cash and cash equivalents, at
cost which approximates fair
value 16,513,532 136,314,402
Accounts receivable 101,930 80,000
Interest receivable 621,768 303,484
Prepaid assets 204,370 491,602
------------------ -----------------
Total assets $246,962,439 $244,552,003
================== =================
Liabilities and stockholders'
equity (net assets):
Liabilities:
Accounts payable $258,028 $213,173
Management fees payable 300,000 300,000
Dividends payable 2,436,014 -
------------------ -----------------
Total liabilities 2,994,042 513,173
------------------ -----------------
Commitments and contingencies
Stockholders' equity (net assets)
Common stock, $.001 par value,
250,000,000 shares authorized;
17,400,100 issued and
outstanding 17,400 17,400
Paid-in capital in excess of par 244,313,252 244,320,858
Undistributed net investment
income (loss) 13,526 (590,217)
Undistributed realized capital
gain 316,651 -
Net unrealized appreciation
(depreciation) of portfolio
securities (692,432) 290,789
------------------ -----------------
Total stockholders' equity
(net assets) 243,968,397 244,038,830
------------------ -----------------
Total liabilities and
stockholders' equity (net
assets) $246,962,439 $244,552,003
================== =================
Net assets per share $14.02 $14.03
================== =================
NGP CAPITAL RESOURCES COMPANY
STATEMENT OF OPERATIONS
For the Three For the Nine
Months ended Months ended
September 30, September 30,
2005 2005
(unaudited) (unaudited)
------------------ -----------------
Investment income
Interest income $4,439,322 $12,284,087
------------------ -----------------
Total investment income 4,439,322 12,284,087
------------------ -----------------
Operating expenses
Management fees 900,000 2,700,000
Organization costs - 1,111
General and administrative
expenses 642,911 2,159,964
------------------ -----------------
Total operating expenses 1,542,911 4,861,075
------------------ -----------------
Interest expense 23,000 35,237
Credit facility fee amortization 56,477 84,993
------------------ -----------------
Net investment income 2,816,934 7,302,782
Net realized capital gain on
portfolio securities 173,081 316,651
Net increase in unrealized
appreciation (depreciation) on
portfolio securities 403,219 (983,221)
------------------ -----------------
Net increase in stockholders'
equity (net assets) resulting
from operations $3,393,234 $6,636,212
================== =================
Net increase in stockholders'
equity (net assets) resulting
from operations per common share $0.20 $0.38
================== =================
Per Share Data For the Three For the Nine
Months ended Months ended
September 30, September 30,
2005 2005
(unaudited) (unaudited)
----------------- -----------------
Net asset value, beginning of
period $13.96 $14.03
----------------- -----------------
Net investment income 0.16 0.42
Net realized and unrealized gain
(loss) on portfolio securities 0.04 (0.04)
----------------- -----------------
Net increase in stockholders'
equity (net assets) resulting
from operations 0.20 0.38
----------------- -----------------
Net asset value before dividends 14.16 14.41
Dividends declared (0.14) (0.39)
----------------- -----------------
Net asset value, end of period $14.02 $14.02
================= =================
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
will be principally in energy related private companies. From time to
time, the Company may also invest in public companies that are not
thinly traded. The Company expects to invest primarily in senior
secured and mezzanine loans in furtherance of its business plan and
may receive 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 $2 billion of cumulative capital under
management serving all sectors of the energy industry.
This press release contains 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.
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 will be 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, Rich Bernardy (rbernardy@ngpcrc.com) or
Kelly Plato (kplato@ngpcrc.com), 713-752-0062.
CONTACT: NGP Capital Resources Company, Houston
Investment Contact:
Rich Bernardy, 713-752-0062
rbernardy@ngpcrc.com
or
Kelly Plato, 713-752-0062
kplato@ngpcrc.com
or
Investor Relations Contact:
Steve Gardner, 713-752-0062
investor_relations@ngpcrc.com