NGP Capital Resources Company (NGPC, Financial) filed Quarterly Report for the period ended 2011-03-31.
Ngp Capital Resources Company has a market cap of $194.7 million; its shares were traded at around $9 with a P/E ratio of 16.4 and P/S ratio of 8.1. The dividend yield of Ngp Capital Resources Company stocks is 8.1%.
Our total targeted portfolio balance decreased on a cost basis by approximately $27.3 million from $253.2 million at March 31, 2010 to $225.9 million at March 31, 2011. The balance of non-accruing and non-income producing investments on a cost basis was approximately $87.2 million at March 31, 2011, compared to $102.4 million at March 31, 2010. The balance of non-accruing and non-income producing investments on a fair value basis decreased from approximately $50.9 million at March 31, 2010 to approximately $45.7 million at March 31, 2011. The decrease in non-accruing and non-income producing investments was largely due to the sale of our interests in Formidable, LLC in October 2010, partially offset by the addition of our investments in BioEnergy Holdings, LLC, or BioEnergy, and Bionol Clearfield, LLC, or Bionol, to non-accrual status as of March 31, 2011. Although LIBOR rates remained low during the first quarter of 2011, they had a minimal effect on our targeted investment income because of LIBOR floors established for new portfolio companies and certain other existing portfolio companies during 2011 and 2010. Additionally, the continued downward pressure on U.S. Treasury Bill interest rates during 2011 and 2010 reduced interest from cash and cash equivalents.
At March 31, 2011, the weighted average yield on targeted portfolio investments, exclusive of capital gains, was 9.20%. Four investments totaling $44.3 million on a cost basis (Alden Tranche B, $19.5 million; BioEnergy, $15.5 million; Bionol, $5.0 million and Chroma Exploration & Production, Inc., $4.3 million) are currently on non-accrual status, down from $62.6 million at March 31, 2010. Investments totaling $42.9 million on a cost basis are non-income producing and include equity investments in TierraMar preferred units, DeanLake Operator, LLC preferred units, Resaca common stock, Alden class E units, Gatliff Services, LLC units and warrants and units associated with our investment in BioEnergy.
For the quarter ended March 31, 2011, operating expenses were $2.9 million compared to $3.0 million for the quarter ended March 31, 2010. Investment advisory and management fees were $1.3 million for both periods. Insurance expenses, administrative services fees, professional fees, director s fees and other general and administrative expenses of $1.3 million for the quarter ended March 31, 2011 were $0.1 million lower than the same period of 2010 primarily due to decreased professional fees. Credit facility interest expense and fees were $0.3 million for both periods as borrowing levels and interest rates were consistent.
For the quarter ended March 31, 2011, we had a net decrease in stockholders equity (net assets) resulting from operations of $3.3 million, or $0.15 per share, compared to a net increase of $5.0 million, or $0.24 per share for the quarter ended March 31, 2010. The $8.3 million or $0.39 per share net decrease was attributable to the $0.6 million increase in net investment income after income taxes offset by the $8.9 million increase in realized and unrealized depreciation on our investments during the first quarter of 2011, compared to the first quarter of 2010.
Our net cash used in operating activities for the three months ended March 31, 2011 was $11.6 million, $14.9 million less than the $3.3 million net cash provided by operating activities for the three months ended March 31, 2010. This decrease was primarily due to higher purchases of investments in portfolio securities and U.S. Treasury Bills offset by higher redemptions of investments in portfolio securities. Purchases of portfolio securities were $14.8 million during the first quarter of 2011, an increase of $11.5 million compared to the $3.3 million in purchases for the first quarter of 2010. The higher purchases in 2011 included Resaca, $10.0 million; Alden, $3.2 million; and Gatliff Services, LLC, $1.5 million. Additionally, we purchased $30.6 million of U.S. Treasury Bills, associated with our new Treasury Facility agreement with SunTrust. By comparison, purchases for this period in 2010 included Alden, $2.0 million and BioEnergy, $1.2 million. The higher purchases in 2011 were offset by a $25.8 million increase in redemptions of investments in portfolio securities, to $28.4 million in 2011 from $2.6 million in 2010. Primarily, the higher redemptions in 2011 included Resaca, $10.0 million; PXD, $10.0 million; GMX, $3.3 million; ATP, $2.0 million; and Tammany Oil & Gas, LLC, $1.3 million. By comparison, redemptions in 2010 included ATP, $1.4 million; Greenleaf Investments, LLC, $0.5 million; APC Drilling Fund, $0.3 million; and Tammany Oil & Gas, LLC, $0.3 million.
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Ngp Capital Resources Company has a market cap of $194.7 million; its shares were traded at around $9 with a P/E ratio of 16.4 and P/S ratio of 8.1. The dividend yield of Ngp Capital Resources Company stocks is 8.1%.
Highlight of Business Operations:
Investment income for the quarter ended March 31, 2011 was $6.6 million, comprised of $5.8 million in interest from targeted investments in fifteen of our portfolio companies and $0.8 million from net royalty income and other income. This compares to investment income for the quarter ended March 31, 2010 of $5.2 million, with $5.1 million attributable to interest from targeted investments in eleven portfolio companies and $0.1 million net income attributable to net royalty income and other income. The $1.4 million increase in investment income for the first quarter of 2011 compared to the first quarter of 2010 is from higher net royalty income and other income of $0.7 million and higher interest income on targeted investments of $0.7 million.Our total targeted portfolio balance decreased on a cost basis by approximately $27.3 million from $253.2 million at March 31, 2010 to $225.9 million at March 31, 2011. The balance of non-accruing and non-income producing investments on a cost basis was approximately $87.2 million at March 31, 2011, compared to $102.4 million at March 31, 2010. The balance of non-accruing and non-income producing investments on a fair value basis decreased from approximately $50.9 million at March 31, 2010 to approximately $45.7 million at March 31, 2011. The decrease in non-accruing and non-income producing investments was largely due to the sale of our interests in Formidable, LLC in October 2010, partially offset by the addition of our investments in BioEnergy Holdings, LLC, or BioEnergy, and Bionol Clearfield, LLC, or Bionol, to non-accrual status as of March 31, 2011. Although LIBOR rates remained low during the first quarter of 2011, they had a minimal effect on our targeted investment income because of LIBOR floors established for new portfolio companies and certain other existing portfolio companies during 2011 and 2010. Additionally, the continued downward pressure on U.S. Treasury Bill interest rates during 2011 and 2010 reduced interest from cash and cash equivalents.
At March 31, 2011, the weighted average yield on targeted portfolio investments, exclusive of capital gains, was 9.20%. Four investments totaling $44.3 million on a cost basis (Alden Tranche B, $19.5 million; BioEnergy, $15.5 million; Bionol, $5.0 million and Chroma Exploration & Production, Inc., $4.3 million) are currently on non-accrual status, down from $62.6 million at March 31, 2010. Investments totaling $42.9 million on a cost basis are non-income producing and include equity investments in TierraMar preferred units, DeanLake Operator, LLC preferred units, Resaca common stock, Alden class E units, Gatliff Services, LLC units and warrants and units associated with our investment in BioEnergy.
For the quarter ended March 31, 2011, operating expenses were $2.9 million compared to $3.0 million for the quarter ended March 31, 2010. Investment advisory and management fees were $1.3 million for both periods. Insurance expenses, administrative services fees, professional fees, director s fees and other general and administrative expenses of $1.3 million for the quarter ended March 31, 2011 were $0.1 million lower than the same period of 2010 primarily due to decreased professional fees. Credit facility interest expense and fees were $0.3 million for both periods as borrowing levels and interest rates were consistent.
For the quarter ended March 31, 2011, we had a net decrease in stockholders equity (net assets) resulting from operations of $3.3 million, or $0.15 per share, compared to a net increase of $5.0 million, or $0.24 per share for the quarter ended March 31, 2010. The $8.3 million or $0.39 per share net decrease was attributable to the $0.6 million increase in net investment income after income taxes offset by the $8.9 million increase in realized and unrealized depreciation on our investments during the first quarter of 2011, compared to the first quarter of 2010.
Our net cash used in operating activities for the three months ended March 31, 2011 was $11.6 million, $14.9 million less than the $3.3 million net cash provided by operating activities for the three months ended March 31, 2010. This decrease was primarily due to higher purchases of investments in portfolio securities and U.S. Treasury Bills offset by higher redemptions of investments in portfolio securities. Purchases of portfolio securities were $14.8 million during the first quarter of 2011, an increase of $11.5 million compared to the $3.3 million in purchases for the first quarter of 2010. The higher purchases in 2011 included Resaca, $10.0 million; Alden, $3.2 million; and Gatliff Services, LLC, $1.5 million. Additionally, we purchased $30.6 million of U.S. Treasury Bills, associated with our new Treasury Facility agreement with SunTrust. By comparison, purchases for this period in 2010 included Alden, $2.0 million and BioEnergy, $1.2 million. The higher purchases in 2011 were offset by a $25.8 million increase in redemptions of investments in portfolio securities, to $28.4 million in 2011 from $2.6 million in 2010. Primarily, the higher redemptions in 2011 included Resaca, $10.0 million; PXD, $10.0 million; GMX, $3.3 million; ATP, $2.0 million; and Tammany Oil & Gas, LLC, $1.3 million. By comparison, redemptions in 2010 included ATP, $1.4 million; Greenleaf Investments, LLC, $0.5 million; APC Drilling Fund, $0.3 million; and Tammany Oil & Gas, LLC, $0.3 million.
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