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| 8-K - FORM 8-K FILING DOCUMENT - OHA Investment Corp | document.htm |
EXHIBIT 99.1
NGP Capital Resources Company Announces Third Quarter 2013 Financial Results and Portfolio Activity
HOUSTON, Texas, Nov. 7, 2013 (GLOBE NEWSWIRE) -- NGP Capital Resources Company (Nasdaq:NGPC) (the "Company") today announced its financial results for the third quarter of 2013.
Highlights for the quarter ended September 30, 2013:
Operating Results:
Total investment income: $6.0 million
Net investment income: $2.6 million, or $0.13 per share
Net unrealized appreciation on investments: $2.5 million, or $0.12 per share
Net asset value: $188.9 million, or $9.22 per share
Quarterly dividends declared: $0.16 per share
New investments in portfolio securities during the quarter: $2.2 million
Redemption of portfolio securities during the quarter: $0.8 million
Fair value of portfolio investments at September 30, 2013: $213.5 million
Weighted average yield on portfolio investments: 10.5%
Number of portfolio companies at September 30, 2013: 16
Portfolio and Investment Activity
During the third quarter of 2013, we invested $2.2 million with existing portfolio companies and received proceeds from redemption and repayments of portfolio securities totaling $0.8 million.
On October 2, 2013, we funded a $14.0 million participation in a $180.0 million Second Lien Term Loan (the "Term Loan") to a Houston-based, privately owned, independent oil and gas exploration and production company focused in the Gulf Coast region. Proceeds from the Term Loan were used to acquire producing oil and gas properties in South Louisiana. The Term Loan was issued at a 3% discount, earns interest at the greater of 10.25% or LIBOR + 9.0% per annum and matures on March 27, 2019.
We have continued to receive our share of monthly production payments from ATP Oil & Gas Corporation ("ATP"), pursuant to our limited-term overriding royalty interests (the "ORRIs") in ATP's Telemark offshore oil and gas properties, in accordance with the Bankruptcy Court's order and subject to a disgorgement agreement executed in August 2012. As of September 30, 2013, our unrecovered investment in the ORRIs was $30.5 million, and we had received aggregate production payments of $21.7 million subject to the disgorgement agreement, $1.7 million of which was received during the third quarter of 2013. Production payments in the third quarter were lower than in previous quarters in part because production from ATP's Gomez properties ceased on April 30, 2013, and also because production from the Telemark properties was temporarily shut-in for scheduled downstream pipeline maintenance.
On October 17, 2013, the Bankruptcy Court judge approved the sale of ATP's Telemark properties and other properties operated by ATP to a newly formed company called Bennu Oil & Gas, LLC ("Bennu"), which is owned by the lenders to ATP's debtor-in-possession ("DIP") credit facility. Our ORRI continues to burden the Telemark properties, subject to a resolution of the issues in our pending lawsuit against ATP. The sale to Bennu closed on November 1, 2013.
Operating Results
Investment income totaled $6.0 million for the quarter ended September 30, 2013, decreasing 6% compared to $6.3 million in the corresponding quarter of 2012, primarily attributable to slightly lower overall average portfolio balances, partially offset by slightly higher weighted average yields.
Operating expenses for the third quarter of 2013 were $3.3 million, increasing $0.4 million, or 15%, compared to the third quarter of 2012, primarily as a result of higher base management fees on higher total asset balances and higher interest expenses on increased borrowings to support our investment portfolio. The resulting net investment income was $2.6 million, or $0.13 per share, for the quarter ended September 30, 2013, compared to $3.4 million, or $0.16 per share, for the quarter ended September 30, 2012.
During the three months ended September 30, 2013, we recorded $2.5 million, or $0.12 per share, of net unrealized appreciation on portfolio investments, primarily due to a mark-to-market increase totaling $1.9 million in the value of our investments in the publicly-traded senior unsecured notes of Talos Production, LLC and Midstates Petroleum Company. Net increases in the estimated fair values of remaining portfolio investments totaled $0.6 million. During the three months ended September 30, 2012, we recorded net unrealized appreciation on portfolio investments totaling $7.1 million, including increases in the estimated fair value of our investments in Huff Energy Holdings, Inc. of $6.0 million, and GMX Resources, Inc. of $2.2 million, partially offset by decreases in the values of remaining investments totaling $1.1 million.
Overall, we had a net increase in net assets resulting from operations of $5.1 million, or $0.25 per share, for the three months ended September 30, 2013. After declaring dividends during the period of $0.16 per common share, our net asset value increased from $9.13 per common share as of June 30, 2013 to $9.22 per common share as of September 30, 2013.
Liquidity and Capital Resources
At September 30, 2013, we had cash and cash equivalents totaling $42.3 million. The amount outstanding under our Investment Facility at September 30, 2013 was $66.0 million and there was an additional $6.0 million available for borrowing. We repaid $23.0 million of the $66.0 million balance outstanding under the Investment Facility in October 2013. The amount outstanding under our Treasury Facility at September 30, 2013 was $45.0 million and there was no additional amount available for borrowing. We repaid the entire balance outstanding under the Treasury Facility in October 2013.
Conference Call at 11:00 a.m. Eastern Time on November 7, 2013
We invite all interested persons to participate in our conference call on Thursday, November 7, 2013 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 call will also be accessible via the internet, on our Investor Relations page at www.ngpcrc.com.
| NGP CAPITAL RESOURCES COMPANY | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In Thousands, Except Share and Per Share Amounts) | ||
| September 30, | December 31, | |
| 2013 | 2012 | |
| (Unaudited) | ||
| Assets | ||
| Investments in portfolio securities at fair value | ||
| Control investments - majority owned | ||
| (cost: $27,119 and $8,140, respectively) | $ 24,117 | $ 8,608 |
| Affiliate investments | ||
| (cost: $20,656 and $16,280, respectively) | 17,799 | 13,153 |
| Non-affiliate investments | ||
| (cost: $180,058 and $193,332, respectively) | 171,536 | 191,853 |
| Total portfolio investments | 213,452 | 213,614 |
| Investments in U.S. Treasury Bills at fair value | ||
| (cost: $46,000 and $45,996, respectively) | 46,000 | 45,996 |
| Total investments | 259,452 | 259,610 |
| Cash and cash equivalents | 42,271 | 47,655 |
| Accounts receivable and other current assets | 180 | 732 |
| Interest receivable | 1,103 | 1,876 |
| Prepaid assets | 2,743 | 2,449 |
| Total current assets | 46,297 | 52,712 |
| Total assets | $ 305,749 | $ 312,322 |
| Liabilities and net assets | ||
| Current liabilities | ||
| Accounts payable and accrued expenses | $ 1,097 | $ 1,372 |
| Management and incentive fees payable | 1,405 | 1,305 |
| Dividends payable | 3,280 | 3,363 |
| Income taxes payable | 48 | 515 |
| Short-term debt | 45,000 | 45,000 |
| Total current liabilities | 50,830 | 51,555 |
| Deferred tax liabilities | -- | 1 |
| Long-term debt | 66,000 | 59,500 |
| Total liabilities | 116,830 | 111,056 |
| Commitments and contingencies | ||
| Net assets | ||
| Common stock, $.001 par value, 250,000,000 shares authorized; | ||
| 20,499,188 and 21,020,077 shares issued and outstanding | 20 | 21 |
| Paid-in capital in excess of par | 247,708 | 251,088 |
| Undistributed net investment income (loss) | (1,179) | (1,672) |
| Undistributed net realized capital gain (loss) | (46,365) | (47,148) |
| Net unrealized appreciation (depreciation) on investments | (11,265) | (1,023) |
| Total net assets | 188,919 | 201,266 |
| Total liabilities and net assets | $ 305,749 | $ 312,322 |
| Net asset value per share | $ 9.22 | $ 9.57 |
| NGP CAPITAL RESOURCES COMPANY | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (In Thousands, Except Per Share Data) | ||||
| (Unaudited) | ||||
| For The Three Months Ended | For The Nine Months Ended | |||
| September 30, | September 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Investment income | ||||
| Interest income: | ||||
| Control investments - majority owned | $ 546 | $ -- | $ 1,439 | $ -- |
| Affiliate investments | 513 | 451 | 4,568 | 1,260 |
| Non-affiliate investments | 3,896 | 4,883 | 12,356 | 14,167 |
| Dividend income: | ||||
| Non-affiliate investments | 1,005 | 910 | 2,983 | 910 |
| Royalty income, net of amortization: | ||||
| Control investments - majority owned | 19 | -- | 34 | -- |
| Non-affiliate investments | 16 | 124 | 16 | 432 |
| Other income (loss) | (29) | (42) | (14) | 487 |
| Total investment income | 5,966 | 6,326 | 21,382 | 17,256 |
| Operating expenses | ||||
| Interest expense and bank fees | 655 | 598 | 2,468 | 1,256 |
| Management and incentive fees | 1,405 | 1,127 | 4,602 | 3,275 |
| Professional fees, net of legal fees of $558, $0, $2,914 and $0 | ||||
| related to the ATP bankruptcy | 271 | 272 | 830 | 794 |
| Insurance expense | 180 | 180 | 539 | 541 |
| Other general and administrative expenses | 811 | 717 | 2,478 | 2,327 |
| Total operating expenses | 3,322 | 2,894 | 10,917 | 8,193 |
| Income tax provision (benefit), net | 11 | 30 | 49 | 54 |
| Net investment income | 2,633 | 3,402 | 10,416 | 9,009 |
| Net realized capital gain (loss) on investments | ||||
| Control investments - majority owned | -- | -- | (464) | (36) |
| Affiliate investments | -- | -- | (250) | -- |
| Non-affiliate investments | -- | 1,693 | 1,550 | 1,693 |
| Benefit (provision) for taxes on realized gain (loss) | (53) | -- | (53) | -- |
| Total net realized capital gain (loss) on investments | (53) | 1,693 | 783 | 1,657 |
| Net unrealized appreciation (depreciation) on investments | ||||
| Control investments - majority owned | (459) | -- | (3,469) | (150) |
| Affiliate investments | 189 | (461) | 270 | (1,066) |
| Non-affiliate investments | 2,741 | 7,596 | (7,044) | 8,077 |
| Benefit (provision) for taxes on unrealized | ||||
| appreciation (depreciation) on investments | -- | 4 | 1 | 7 |
| Total net unrealized appreciation (depreciation) | ||||
| on investments | 2,471 | 7,139 | (10,242) | 6,868 |
| Net increase in net assets resulting from operations | $ 5,051 | $ 12,234 | $ 957 | $ 17,534 |
| Net increase in net assets resulting from operations per common share | $ 0.25 | $ 0.57 | $ 0.05 | $ 0.82 |
| Dividends declared per common share | $ 0.16 | $ 0.16 | $ 0.48 | $ 0.41 |
| Weighted average shares outstanding - basic and diluted | 20,499 | 21,378 | 20,764 | 21,507 |
| For The Three Months Ended | For The Nine Months Ended | |||
| September 30, | September 30, | |||
| Per Share Data (1) | 2013 | 2012 | 2013 | 2012 |
| Net asset value, beginning of period | $ 9.13 | $ 9.29 | $ 9.57 | $ 9.26 |
| Net investment income | 0.13 | 0.16 | 0.50 | 0.42 |
| Net realized and unrealized gain (loss) on investments | 0.12 | 0.41 | (0.45) | 0.40 |
| Net increase in net assets resulting from operations | 0.25 | 0.57 | 0.05 | 0.82 |
| Dividends declared | (0.16) | (0.16) | (0.48) | (0.41) |
| Other (2) | -- | -- | 0.08 | 0.03 |
| Net asset value, end of period | $ 9.22 | $ 9.70 | $ 9.22 | $ 9.70 |
| (1) Per Share Data is based on weighted average number of common shares outstanding for the period. | ||||
| (2) Represents the impact of common stock repurchases. | ||||
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 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 interests 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 ECM"). Founded in 1988, NGP ECM is a premier investment franchise in the natural resources industry, which together with its affiliates has managed approximately $13 billion in cumulative committed capital since inception. NGP ECM's investment platform includes Natural Gas Partners, NGP Global Adaptation Partners, NGP Capital Resources Company and NGP Energy Technology Partners, L.P. www.ngpenergycapital.com.
Forward-Looking Statements
This press release may contain forward-looking statements. We may use words such as "anticipates," "believes," "intends," "plans," "expects," "projects," "estimates," "will," "should," "may" and similar expressions to identify forward-looking statements. These forward-looking statements are subject to various risks and uncertainties. Certain factors 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, regulatory factors, changes in regional, national, or international economic conditions and their impact on the industries in which we invest, other 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").
You should not place undue reliance on such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update our forward-looking statements made herein, 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 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. Such materials are filed with the SEC and copies are available on the SEC's website, www.sec.gov, and in the Investor Relations section of our website at www.ngpcrc.com. Prospective investors should read such materials carefully before investing.
CONTACT: INVESTMENT CONTACT:
Please send investment proposals to:
NGP Capital Resources Company 713-752-0062
Steve Gardner (sgardner@ngpcrc.com),
Michael Brown (mbrown@ngpcrc.com), or
Hans Hubbard (hhubbard@ngpcrc.com)
INVESTOR RELATIONS CONTACT:
L. Scott Biar (investor_relations@ngpcrc.com)
713-752-0062