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| 8-K - FORM 8-K FILING DOCUMENT - OHA Investment Corp | document.htm |
EXHIBIT 99.1
NGP Capital Resources Company Announces First Quarter 2011 Financial Results and Portfolio Activity
HOUSTON, May 5, 2011 (GLOBE NEWSWIRE) -- NGP Capital Resources Company (Nasdaq:NGPC) (the "Company") today announced its financial results for the first quarter ended March 31, 2011.
| Highlights for the quarter ended March 31, 2011: |
| Stockholders' equity: $228.6 million |
| Net asset value per share: $10.57 |
| Operating Results: |
| Net decrease in stockholders' equity (net assets) from operations: $3.3 million |
| Net investment income: $3.0 million |
| Net realized capital loss on portfolio securities before income taxes: $0.5 million |
| Net increase in unrealized depreciation on portfolio securities, corporate notes and commodity derivative instruments before income taxes: $6.4 million |
| Dividends declared per common share: $0.18 |
| Portfolio and Investment Activity: |
| New investments made in portfolio companies during period: $14.8 million |
| Redemption of portfolio securities during the quarter: $28.4 million |
| Total invested in portfolio companies at March 31, 2011: $231.4 million |
| Number of portfolio companies at March 31, 2011: 19 |
Portfolio and Investment Activity
During the first quarter ended March 31, 2011, we funded investments to one new portfolio company of $10.0 million and an additional $4.8 million to existing portfolio companies. Also during the first quarter of 2011, we received principal repayments, realizations and settlements of $28.4 million in 2011. From commencement of investment operations in November 2004 through March 31, 2011, we have invested $776.8 million in thirty-five portfolio companies, all energy-related, and received principal repayments, realizations and settlements of $545.4 million. At March 31, 2011, our targeted investment portfolio consisted of nineteen portfolio companies totaling $231.4 million.
The weighted average yield on targeted portfolio investments (exclusive of capital gains or losses) was 9.2% at March 31, 2011.
Operating Results – Three months ended March 31, 2011
Investment income totaled $6.6 million for the quarter ended March 31, 2011, with $5.8 million attributable to interest from our targeted portfolio investments, $0.8 million attributable to royalty income and other income. Operating expenses for the quarter ended March 31, 2011 were $2.9 million and included $1.3 million of advisory and management fees, $0.3 million of interest expense and credit facility fees and $1.3 million of general and administrative expenses. The resulting net investment income, including a $0.7 million provision for income taxes, was $3.0 million.
We had net realized capital losses before income taxes of $0.5 million resulting from a $1.1 million loss on the sale of our senior notes of Pioneer Natural Resources Co., partially offset by a $0.5 million gain on the sale of GMX Resources, Inc. Senior Convertible Notes. We also recorded $0.1 million gain on the sale of our overriding royalty interest in TierraMar Energy, LP.
For the three months ended March 31, 2011, we experienced net unrealized depreciation of $6.4 million before income tax benefits of $0.7 million due to decreases in targeted portfolio fair values as a result of changes in the estimated current market values of underlying assets.
Overall, we had a net decrease in stockholders' equity (net assets) resulting from operations of $3.3 million for the three months ended March 31, 2011 and dividends declared during the period of $0.18 per common share, resulting in stockholders' equity (net assets) per common share of $10.57 as of March 31, 2011.
Subsequent Events
On April 28, 2011, we closed a $13.5 million Senior Secured Credit Facility (the "Facility") with Spirit Resources, LLC ("Spirit"), a private oil and gas company based in Fort Worth, Texas. We acted as agent and sole lender for the Facility. Initial availability under the Facility is $12.3 million with approximately $5.2 million funded at closing. The Facility is secured by first liens on substantially all of Spirit's assets and pays interest at a rate of 12.0% per annum. As partial consideration for providing the Facility, we received warrants to purchase equity interests in Spirit. Spirit used proceeds from the Facility to acquire and develop oil and gas properties in Texas and Oklahoma.
On April 29, 2011, Greenleaf Investments, LLC ("Greenleaf") repaid its entire $8.1 million Senior Secured Multiple Advance Term Loan. Concurrently, we sold our overriding royalty interest in Greenleaf for $1.0 million, resulting in a realized capital gain of approximately $1.0 million, which we will record in the quarter ending June 30, 2011, when we also will reverse approximately $0.4 million of previously recorded unrealized appreciation.
Conference Call at 11:00 a.m. Eastern Time on May 5, 2011
The Company invites all interested persons to participate in its conference call on May 5, 2011 at 11:00 a.m. Eastern Time. The dial-in number for the call is (877) 303-7617. International callers should dial (760) 666-3609.
The Company will maintain an audio replay of the call from 2:00 p.m. Eastern Time on May 5, 2011 through midnight May 11, 2011. The replay dial-in number is (800) 642-1687. International callers should dial (706) 645-9291. The replay pass code is 62640074. The call will also be accessible via the internet, on its Investor Relations page at www.ngpcrc.com.
| NGP CAPITAL RESOURCES COMPANY | ||
| CONSOLIDATED BALANCE SHEETS | ||
| March 31, 2011 | December 31, 2010 | |
| (Unaudited) | ||
| Assets | ||
| Investments in portfolio securities at fair value | ||
| Control investments - majority owned | ||
| (cost: $94,378,591 and $89,502,910, respectively) | $ 79,276,359 | $ 70,973,316 |
| Affiliate investments | ||
| (cost: $35,771,803 and $34,146,328, respectively) | 23,495,180 | 33,064,028 |
| Non-affiliate investments | ||
| (cost: $95,726,987 and $114,852,057, respectively) | 94,241,048 | 112,025,645 |
| Investments in U.S. Treasury Bills at fair value | ||
| (cost: $30,600,288 and $0, respectively) | 30,600,314 | - |
| Total investments | 227,612,901 | 216,062,989 |
| Cash and cash equivalents | 57,962,633 | 68,456,908 |
| Accounts receivable and other current assets | 1,316,303 | 3,095,882 |
| Interest receivable | 891,110 | 2,236,122 |
| Prepaid assets | 1,629,184 | 1,736,732 |
| Deferred tax assets | 1,529,867 | - |
| Total current assets | 63,329,097 | 75,525,644 |
| Total assets | $ 290,941,998 | $ 291,588,633 |
| Liabilities and stockholders' equity (net assets) | ||
| Current liabilities | ||
| Accounts payable and accrued expenses | $ 535,368 | $ 525,111 |
| Management and incentive fees payable | 1,333,288 | 1,376,032 |
| Dividends payable | 3,893,076 | 3,893,076 |
| Income taxes payable | 60,136 | 50,350 |
| Current portion of long-term debt | 30,000,000 | - |
| Total current liabilities | 35,821,868 | 5,844,569 |
| Deferred tax liabilities | 1,546,503 | 18,136 |
| Long-term debt, less current portion | 25,000,000 | 50,000,000 |
| Total liabilities | 62,368,371 | 55,862,705 |
| 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 | 293,789,803 | 293,789,803 |
| Undistributed net investment income (loss) | (8,741,083) | (7,845,925) |
| Undistributed net realized capital gain (loss) | (33,303,581) | (32,778,782) |
| Net unrealized appreciation (depreciation) of portfolio securities | ||
| and commodity derivative instruments | (23,193,140) | (17,460,796) |
| Total stockholders' equity (net assets) | 228,573,627 | 235,725,928 |
| Total liabilities and stockholders' equity (net assets) | $ 290,941,998 | $ 291,588,633 |
| Net asset value per share | $ 10.57 | $ 10.90 |
| NGP CAPITAL RESOURCES COMPANY | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (Unaudited) | ||
| For The Three Months Ended | ||
| March 31, 2011 | March 31, 2010 | |
| Investment income | ||
| Interest income: | ||
| Control investments - majority owned | $ 1,355,909 | $ 1,099,979 |
| Affiliate investments | 951,865 | 832,913 |
| Non-affiliate investments | 3,479,005 | 3,177,541 |
| Royalty income (loss), net of amortization: | ||
| Control investments - majority owned | 478,350 | 294,811 |
| Non-affiliate investments | 255,782 | (518,056) |
| Commodity derivative income, net of expired options | - | 16,079 |
| Other income | 33,750 | 290,000 |
| Total investment income | 6,554,661 | 5,193,267 |
| Operating expenses | ||
| Management and incentive fees | 1,333,288 | 1,338,569 |
| Professional fees | 199,040 | 265,304 |
| Insurance expense | 182,543 | 185,658 |
| Interest expense and fees | 309,421 | 313,063 |
| State and excise taxes | 656 | - |
| Other general and administrative expenses | 829,079 | 946,420 |
| Total operating expenses | 2,854,027 | 3,049,014 |
| Net investment income before income taxes | 3,700,634 | 2,144,253 |
| Benefit (provision) for income taxes | (702,716) | 287,074 |
| Net investment income | 2,997,918 | 2,431,327 |
| Net realized capital gain (loss) on investments | ||
| Net realized capital gain (loss) on portfolio securities: | ||
| Control investments - majority owned | 81,275 | - |
| Non-affiliate investments | (606,361) | - |
| Benefit (provision) for taxes on capital gain (loss) | 287 | (9,151) |
| Total net realized capital gain (loss) on investments | (524,799) | (9,151) |
| Net unrealized gain (loss) on investments | ||
| Net increase (decrease) in unrealized appreciation | ||
| (depreciation) on portfolio securities and | ||
| commodity derivative instruments: | ||
| Control investments - majority owned | 3,427,363 | 6,501 |
| Affiliate investments | (11,194,323) | 558,719 |
| Non-affiliate investments | 1,340,473 | 2,313,989 |
| Benefit (provision) for taxes on unrealized gain (loss) | 694,143 | (293,149) |
| Total net unrealized gain (loss) on investments | (5,732,344) | 2,586,060 |
| Net increase (decrease) in stockholders' equity | ||
| (net assets) resulting from operations | $ (3,259,225) | $ 5,008,236 |
| Net increase (decrease) in stockholders' equity (net assets) | ||
| resulting from operations per common share | $ (0.15) | $ 0.24 |
| For The Three Months Ended | ||
| Per Share Data (1) | March 31, 2011 | March 31, 2010 |
| unaudited | unaudited | |
| Net asset value, beginning of period | $ 10.90 | $ 11.10 |
| Net investment income | 0.14 | 0.11 |
| Net realized and unrealized gain (loss) on portfolio securities | ||
| and commodity derivative instruments | (0.29) | 0.13 |
| Net increase (decrease) in stockholders' equity (net assets) | ||
| resulting from operations | (0.15) | 0.24 |
| Net asset value before dividends | 10.75 | 11.34 |
| Dividends declared | (0.18) | (0.17) |
| Net asset value, end of period | $ 10.57 | $ 11.17 |
| (1) We base Per Share Data on common shares outstanding at the end of the 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. We principally invest in energy related private companies and from time to time, we may also invest in public companies. We invest primarily in senior secured and mezzanine loans according to our business plan and in some instances receive equity investments in portfolio companies in connection with such investments. Our manager is 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. You should not place undue reliance 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.
Before considering an investment in NGP Capital Resources Company, you should consider our investment objectives, risks, and charges and expenses carefully. Such information and other information about us 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. We file such materials 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, Kelly Plato (kplato@ngpcrc.com), Dan Schockling (dschockling@ngpcrc.com), Hans Hubbard (hhubbard@ngpcrc.com), or Chris Ryals (cryals@ngpcrc.com), 713-752-0062.
CONTACT: INVESTOR RELATIONS CONTACT:
Steve Gardner
investor_relations@ngpcrc.com
713-752-0062