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8-K - OHA Investment Corp | v232467_8-k.htm |
Exhibit 99.1
NGP Capital Resources Company
(NASDAQ: NGPC)
NGPC
Growth Capital for the Energy Industry
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
EnerCom - The Oil & Gas Conference 2011
Forward Looking Statements
This presentation 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.
Words such as "anticipates," "believes," "expects," "intends," "will," "should," "may" and similar expressions may be used 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, 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. Past performance is not indicative of future results.
NGPC
NGP Capital Resources Company
Page 2
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Agenda
Company Overview
Investment Criteria
Portfolio Highlights
Partnering with NGPC
NGPC
NGP Capital Resources Company
Page 3
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Company Overview Description and Brief History
Publicly-traded business development company specializing in debt and equity investments in the energy industry
Established in November 2004 as an affiliate of NGP Energy Capital Management, a $9.5 billion energy and natural resources focused investment franchise
Raised $244 million of permanent capital in 2004 via an IPO and completed a $61 million follow-on offering in 2008 (1)
Invested approximately $800 million in 32 different companies since inception
Paid out approximately $122 million to investors in the form of dividends since inception
Aggressively seeking opportunities to deploy approximately $140 million of capital
Corporate Profile
Inception: 2004
Ticker Symbol: NASDAQ: NGPC
Headquarters: Houston, Texas Investment Professionals: 8
Engineering Staff: 2
Investment Profile
Type of Investment: Sectors and Industries:
Geographical Focus: Transaction Size: Target Investment Size:
Debt / Equity
Upstream oil and gas Midstream oil and gas Coal mining and services Oilfield services Power
North America
$5-$100 million $15-$45 million
(1) Net proceeds after costs.
NGPC
NGP Capital Resources Company
Page 4
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Company Overview
Governance Structure
Investment Committee
Officers & Employees
Ken Hersh (NGP ECM) Billy Quinn (NGP ECM) Dick Covington (NGP ECM) Steve Gardner Kelly Plato
Steve Gardner Kelly Plato Scott Biar 14 Employees
NGP Investment Adviser, LP
Board of Directors
Ken Hersh (NGP ECM) David Albin (NGP ECM) Edward Blessing (Ind.) Lon Kile (Ind.) Jim Latimer (Ind.)
NGPC
Officers
Steve Gardner President and CEO Kelly Plato
Chief Investment Officer Scott Biar
Chief Financial Officer
NGPC
NGP Capital Resources Company
Page 5
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Company Overview
Investment Thesis
The energy industry requires constant
investment to maintain and grow
capacity
Equity
30%+
NGPC offers investors the
opportunity to participate in this
sector via a liquid investment with
an efficient tax structure that
provides yield and total return
Risk Reward Spectrum
20%
15%
10% 5%
Mezzanine
Sr. Sub Loans
Senior Loans
Risk
NGPC
NGPC
NGP Capital Resources Company
Page 6
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Agenda
Company Overview
Investment Criteria
Portfolio Highlights
Partnering with NGPC
NGPC
NGP Capital Resources Company
Page 7
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Investment Criteria
Key Metrics and Business Characteristics
Structure: Debt and/or equity (equity in conjunction with debt)
- Often a loan with equity kickers; high single-digit to low-teens coupon rate
Target Market: Small to mid-sized private and public energy companies
with a market capitalization of less than $250 million
- Will opportunistically invest in the high yield market and consider public company project finance opportunities
Target Returns: 10% - 25% Primary Sectors and Industries:
- Oil and gas production and development (limited exploration or technology risk) - Midstream - pipelines, storage, gathering / processing systems - Coal mining and services
- Oilfield services
- Power generation
NGPC
NGP Capital Resources Company
Page 8
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Investment Criteria
Key Metrics and Business Characteristics (cont.)
Geography: North American focus / U.S. based headquarters
- Company can have international assets / operations
Transaction Size:
$5-$100 million
Target Size: $10-$45 million
Investment
Management Team:
- Proven energy track record
- Regional, asset, and/or technical expertise
- Engineering orientation and development
- Control of operations
Business Characteristics:
- Focus on asset coverage and cash flow
Exit Strategy: Realistic and feasible
NGPC
NGP Capital Resources Company
Page 9
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Investment Criteria
Customized Financing Solutions
Senior Debt
2nd Lien Debt
Subordinated Debt
1st Lien Stretch
Sr. / Sub. Combined
Project Finance
Convertible Debt
Mezzanine
Capital
(1) Includes overriding royalty interests, warrants, and similar securities.
Preferred Equity
Convertible Preferred
Common Equit
Common Equity
Equity Kickers (1)
Project Equity
NGPC
NGP Capital Resources Company
Page 10
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Investment Criteria
Capital for a Broad Range of Purposes
Our financings enable companies to develop their assets, accelerate their growth, and position themselves for other capital markets activities
NGPC
NGP Capital Resources Company
Page 11
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Agenda
Company Overview
Investment Criteria
Portfolio Highlights
Partnering with NGPC
NGPC
NGP Capital Resources Company
Page 12
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Portfolio Highlights
Sector Diversification and Flexible Structure
Weighted average yield on targeted investments (exclusive of capital gains) is
approximately 9.1% (1)
Sector Breakdown (2)(3)
Structure Breakdown (2)(3)
(1) As of 6/30/11.
(2) As of 8/11.
(3) Sector breakdown is based on amount outstanding and structure breakdown is based on fair value of securities. (4) Includes overriding royalty interests, warrants, and similar securities.
NGPC
NGP Capital Resources Company
Page 13
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Agenda
Company Overview
Investment Criteria
Portfolio Highlights
Partnering with NGPC
NGPC
NGP Capital Resources Company
Page 14
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Partnering with NGPC
Why Partner with NGPC?
Actively seeking to deploy $140 million of permanent and established capital
Long-term capital partner
Depth of energy, engineering, and financial experience and expertise
Customized financing solutions - "One-Stop Shop"
Pricing and structure tailored to the risk assumed
Management assistance
Speed of commitment and closing
Underwriting capability
Ability to leverage resources from NGP Energy Capital Management
NGPC
NGP Capital Resources Company
Page 15
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT
Partnering with NGPC
Investment Team Contact Information
Steve Chief Executive Office: (713) 425-7723
Gardner Email: SGardner@ngpcrc.com
Officer and President
R. Kelly Chief Investment Office: (713) 425-7742
Plato Email: KPlato@ngpcrc.com
Officer
Director Dan Schockling Office: (713) 425-7726 NGP Capital Resources Company
Email: DSchockling@ngpcrc.com
Director Hans Hubbard Office: (713) 425-7725 1221 McKinney Street, Suite 2975
Email: HHubbard@ngpcrc.com Houston, Texas 77010
Office:
Chris Ryals Office: (713) 425-7746 (713) 752-0062
Director Email: CRyals@ngpcrc.com Fax:
(713) 752-0063
Aaron Killian Office: (713) 425-7758
Associate Email: AKillian@ngpcrc.com www.ngpcrc.com
Associate John Horstman Office: (713) 425-7735 Please send investment proposals to Dan
Email: JHorstman@ngpcrc.com Schockling, Hans Hubbard, or Chris Ryals
Bob Carter Office: (713) 425-7744
Analyst Email: BCarter@ngpcrc.com
NGPC
NGP Capital Resources Company
Page 16
an affiliate of
NGP ENERGY CAPITAL MANAGEMENT