NGP Capital Resources Company Announces 2nd Quarter 2005 Financial Results.HOUSTON Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; -- NGP NGP Neo-Geo Pocket (SNK) NGP Nearest Grid Point NGP New Growth Point (UK) NGP National Grid Project NGP Next-Generation Program (fire suppression) NGP Next Generation Product Capital Resources Company (Nasdaq:NGPC NGPC Nebraska Game and Parks Commission NGPC NeoGeo Pocket Color NGPC National Guaranty Purchase Center ) today announced financial results for the second quarter of 2005, ending June June: see month. 30th. Highlights for the quarter ending June 30, 2005: Stockholders' Equity: $243.0 million Net Asset Value per share: $13.96 Operating Results (in thousands): Net increase in stockholders' equity (net assets) from operations: $1,942 Net investment income: $1,890 Net realized capital gain on portfolio securities: $140 Net unrealized depreciation on portfolio securities: ($88) Portfolio Investment Activity: Portfolio companies added: 3 Investments during the quarter: $10.7 million Number of portfolio companies at June 30, 2005: 5 Portfolio and Investment Activity During the three months ended June 30, 2005, we added three companies to our portfolio, creating senior secured multiple advance term loan facilities totaling $65 million, with currently committed and available amounts totaling $23 million. As of the end of the quarter, there was a total of $6.7 million advanced under the facilities. We extended a $20 million senior secured term loan facility to TierraMar Energy, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control for the development of oil and gas properties in south Texas, with an initial committed funding limit of $4 million. On June 30, 2005, $3.4 million was drawn on the facility. We extended a $30 million senior secured term loan facility to C-Gas, LLC for the development of oil and gas properties in the Rocky Mountain region The Rocky Mountain Region is a floristic region within the Holarctic Kingdom in western North America (Canada and the United States) delineated by Armen Takhtajan and Robert F. Thorne. , with an initial committed funding limit of $17.6 million. On June 30, 2005, $3.3 million was drawn on the facility. We also extended a $15 million senior secured term loan facility to Atchee CBM CBM Commodore Business Machines CBM Coalbed Methane CBM Christoffel Blindenmission CBM Condition Based Maintenance CBM Confidence-Building Measures CBM Curriculum Based Measurement (education) CBM Cubic Meter , LLC for the development of oil and gas properties in the Rocky Mountain region, with an initial committed funding limit of $1.4 million. There were no borrowings on this facility as of June 30, 2005. We expect these companies to continue to draw on the facilities as their development of oil and gas properties progresses. Further, we acquired an additional $4 million of the senior notes of Venoco, Inc. Since commencement of operations in the fall of 2004, we have extended credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities to or made investments in the debt securities of portfolio companies totaling $136 million, and have committed and made available a total of $94 million under these facilities. Of the $94 million, $83 million remained committed and available and $66 million was outstanding as of June 30, 2005, following the March 2005 repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of Crescent crescent, emblematic representation of the quarter moon. The crescent and star, ancient Byzantine symbols that became the emblems of Constantinople, were also assumed as the standard of the Ottoman Turks. Resources' $10.8 million Senior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Secured Bridge loan. During the second quarter, we sold $10 million of our investments in investment grade senior notes issued by independent exploration and production companies, realizing a positive return. As of June 30, 2005 our portfolio was invested as follows: 19.4% in senior subordinated secured notes, 2.7% in senior secured multiple-advance term loans, 4.8% in corporate senior notes, 16.3% in investment grade senior notes, 51.1% in U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. Bills, and 5.7% in cash and cash equivalents. At June 30, 2005, the weighted average yield of our targeted investments was 10.2%. The weighted average yield of our investment grade senior notes was 5.5%. The 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 The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. fees, original issue discount and market premium or discount, weighted by their respective costs when averaged. Operating Results -- Quarter ended June 30, 2005 Investment income totaled $3.7 million for the quarter ended June 30, 2005, with $2.0 million attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to our targeted investments and $1.7 million attributable to investments in cash equivalents, auction rate securities and investment grade senior notes. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter were $1.7 million and included $0.9 million of management fees and $0.8 million of general and administrative expenses. The resulting net investment income was $1.9 million. For the quarter ending June 30, 2005, our portfolio experienced net unrealized depreciation of ($0.1) million attributable to changes in market prices of the investment grade and corporate senior notes. We also realized a capital gain of $0.1 million on the sale of $10 million in investment grade senior notes. Overall, NGPC had a net increase in stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. (net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. ) resulting from operations of $1.9 million, or $0.11 per share. After giving effect to the $0.125 per common share dividend declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. during the quarter, stockholders' equity (net assets) per share as of June 30, 2005 was $13.96. Operating Results -- Six months ended June 30, 2005 Investment income totaled $7.8 million for the six months ended June 30, 2005, with $4.8 million attributable to our targeted investments and $3.0 million attributable to investments in cash equivalents, auction rate securities and investment grade senior notes. Operating expenses for the period were $3.3 million and included $1.8 million of management fees and $1.5 million of general and administrative expenses. The resulting net investment income was $4.5 million. For the six months ending June 30, 2005, our portfolio experienced net unrealized depreciation of ($1.4) million attributable to changes in market prices of the investment grade and corporate senior notes. We also realized a capital gain of $0.1 million on the sale of $10 million in investment grade senior notes. Overall, NGPC had a net increase in stockholders' equity (net assets) resulting from operations of $3.2 million, or $0.18 per share for the six months ended June 30, 2005. The financial statements below are presented without footnotes. Shortly, we will file our quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ending June 30, 2005. Conference Call at 11:00 a.m. Eastern Time on August 4, 2005 NGPC invites all interested persons to participate in its conference call on Thursday Thursday: see week. , August 4, 2005 at 11:00 am Eastern Time. The dial-in number for the call is 866-249-6463. International callers should dial 303-205-0055. The Company will maintain an audio replay of the call from 2:00 pm Eastern Time on August 4, 2005 through 11:59 pm Eastern Time on August 9, 2005. The replay dial-in number is 888-203-1112. International callers should dial 719-457-0820. The replay pass code is 2696424.
NGP CAPITAL RESOURCES COMPANY
BALANCE SHEET
June 30, 2005 December 31, 2004
(unaudited) (audited)
---------------------------------
Assets:
Investments in portfolio securities
at fair value (cost: $65,883,536
and $65,770,724, respectively) $ 65,711,294 $ 66,061,513
Investments in Agency and Auction
Rate Securities, at cost which
approximates fair value - 41,301,002
Investments in high grade corporate
notes (cost: $40,852,809 and $0,
respectively) 39,929,400 -
Investments in U.S. Treasury Bills,
at cost which approximates fair
value 124,927,222 -
------------ ----------------
Total investments 230,567,916 107,362,515
------------ ----------------
Cash and cash equivalents, at cost
which approximates fair value 13,914,737 136,314,402
Accounts receivable - 80,000
Interest receivable 842,035 303,484
Prepaid assets 403,334 491,602
------------ ----------------
Total Assets $245,728,022 $ 244,552,003
============ ================
Liabilities and stockholders' equity
(net assets):
Liabilities:
Accounts payable $ 241,832 $ 513,173
Management fees payable 300,000 -
Dividends payable 2,175,013 -
------------ ----------------
Total Liabilities 2,716,845 513,173
------------ ----------------
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 loss - (590,217)
Distributions in excess of net
investment income (367,394) -
Undistributed realized capital gain 143,570 -
Net unrealized appreciation
(depreciation) of portfolio
securities (1,095,651) 290,789
------------ ----------------
Total stockholders' equity (net
assets) 243,011,177 244,038,830
------------ ----------------
Total liabilities and stockholders'
equity (net assets) $245,728,022 $ 244,552,003
============ ================
Net assets per share $ 13.96 $ 14.03
============ ================
NGP CAPITAL RESOURCES COMPANY
STATEMENT OF OPERATIONS
For the Three For the Six
Months Months
ended June 30, ended June 30,
2005 2005
(unaudited) (unaudited)
-----------------------------
Investment income
Interest income $ 3,666,009 $ 7,844,765
----------- -----------
Total investment income 3,666,009 7,844,765
----------- -----------
Operating expenses
Management fees 900,000 1,800,000
Organization costs - 1,111
General and administrative expenses 836,683 1,517,053
----------- -----------
Total operating expenses 1,736,683 3,318,164
----------- -----------
Interest expense 11,250 12,237
Credit Facility Fee Amortization 28,516 28,516
----------- -----------
Net investment income 1,889,560 4,485,848
Net realized capital gain on portfolio
securities 140,036 143,570
Net increase in unrealized (depreciation)
on portfolio securities (87,655) (1,386,440)
----------- -----------
Net increase in stockholders' equity
(net assets) resulting from operations $ 1,941,941 $ 3,242,978
=========== ===========
Net increase in stockholders' equity (net
assets) resulting from operations per
common share $ 0.11 $ 0.18
=========== ===========
Per Share Data For the Three For the Six
Months Months
ended June 30, ended June
2005 30, 2005
(unaudited) (unaudited)
---------------------------
Net asset value, beginning of period $13.98 $14.03
------ ------
Net investment income 0.11 0.26
Net realized and unrealized gain (loss) on
portfolio securities - (0.08)
------ ------
Net increase in stockholders' equity (net
assets) resulting from operations 0.11 0.18
------ ------
Net asset value before dividends 14.09 14.21
Dividends declared (0.13) (0.25)
------ ------
Net asset value, end of period $13.96 $13.96
====== ======
About NGP Capital Resources Company NGP Capital Resources Company is a closed-end investment company closed-end investment company: see mutual fund. that has elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. 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 Thinly traded Infrequently traded. . The Company expects to invest primarily in senior secured and mezzanine loans A mezzanine loan is a relatively large loan, typically unsecured (ie., not backed by a pledging of assets) or with a deeply subordinated security structure (e.g., third lien on the property but non-recourse vis-a-vis the borrower). in furtherance fur·ther·ance n. The act of furthering, advancing, or helping forward: "Pakistan does not aspire to any . . . role in furtherance of the strategies of other powers" Ismail Patel. 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 Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and , LP, an affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. of Natural Gas Partners, LLC, a leading energy sector private equity investor. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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 This term is often used in law as equivalent to mentioned specifically, designated, or expressly named or granted; as in speaking of enumerated governmental powers, items of property, or articles in a tariff schedule. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 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 See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Prospective investors should read such materials carefully before investing. |
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