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NGP Capital Resources Company Reports Operating Results (10-Q/A)

June 25, 2010 | About:
10qk

10qk

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NGP Capital Resources Company (NGPC) filed Amended Quarterly Report for the period ended 2007-06-30.

Ngp Capital Resources Company has a market cap of $163.6 million; its shares were traded at around $7.56 with a P/E ratio of 36.1 and P/S ratio of 6.7. The dividend yield of Ngp Capital Resources Company stocks is 9.1%.NGPC is in the portfolios of Chuck Royce of Royce& Associates.

Highlight of Business Operations:

During the three months ended June 30, 2007, we added three companies to our portfolio. In April 2007, we closed an investment in the Anadarko Petroleum Corporation 2007-III Drilling Fund of Houston, Texas. The investment is in the form of a term net profits interest. NGPC s commitment is for a total of approximately $95.0 million and as of June 30, 2007, approximately $22.5 million had been funded. In June 2007, we closed a $32 million senior secured credit facility with DeanLake Operator, LLC, to acquire and develop oil and gas properties located in Montgomery County, Texas. Initial availability under the facility was $17.3 million, and as of June 30, 2007, approximately $11.4 million was drawn. Additionally, as partial consideration for providing the facility, NGPC received an overriding royalty interest and warrants in DeanLake. Also in June 2007, we provided a $40.0 million senior secured credit facility to Formidable, LLC. The facility has an initial availability of $34.0 million and as of June 30, 2007, approximately $27.2 million was funded. The proceeds of the Formidable facility was used to repay the existing C-Gas, LLC and Atchee CBM, LLC credit facilities and to acquire additional oil and gas properties. It will also fund development and working capital. As part of the transaction, NGPC exchanged its overriding royalty interest in C-Gas, LLC and Atchee CBM, LLC for warrants in Formidable, LLC.

During the three months ended June 30, 2007, four companies repaid their facilities. In May 2007, Piceance Basin Properties, LLC (“PBP”) fully repaid the outstanding balance on its senior secured term loan of approximately $5.2 million. Concurrent with the debt repayment, NGPC realized a capital gain of approximately $5.1 million through the sale of its warrant and equity positions in PBP. In June 2007, Energy XXI Gulf Coast, Inc. repaid in full the $14.0 million balance on its second lien term loan. Also in June 2007, C-Gas, LLC and Atchee CBM, LLC repaid in full their senior secured credit facilities, of approximately $22.8 million and $2.2 million, respectively, with partial proceeds from the Formidable, LLC facility. In April 2007, Rubicon Energy Partners, LLC repaid in full the $33.6 million balance outstanding on its senior secured term loan. NGPC continues to hold its membership units, which represent a 50% ownership interest in Rubicon. Also during the second quarter of 2007, Chroma Exploration & Production, Inc. repaid its $17.5 million senior secured term loan and repurchased its overriding royalty interest resulting in a realized capital gain of approximately $1.6 million. NGPC continues to hold its $2.0 million of Series A participating convertible preferred stock and has also purchased $2.0 million of Chroma s Series AA participating convertible preferred stock.

Investment income for the quarter ended June 30, 2007 was $9.7 million with $7.7 million attributable to targeted investments in nineteen portfolio companies, $0.3 million from corporate notes, $1.6 million attributable to investments in cash equivalents, and $0.1 million in fee income from third parties and affiliates. This compares to investment income for the quarter ended June 30, 2006 of $6.0 million with $4.6 million attributable to targeted investments in ten portfolio companies, $0.3 million from corporate notes, $0.1 million in fee income from third parties and affiliates, and $1.0 million attributable to investments in cash equivalents, agency notes and auction rate securities.

For the six months ended June 30, 2007, investment income increased by $7.2 million, or approximately 65%, to $18.2 million from $11.0 million for the same period in 2006. For the six months ended June 30, 2007, we recorded $14.4 million attributable to targeted investments in portfolio companies, $0.5 million from corporate notes, $3.1 million attributable to investments in cash equivalents, and $0.2 million in fee income from third parties and affiliates. This compares to investment income of $7.7 million attributable to targeted investments portfolio companies, $0.6 million from corporate notes, $0.3 million in fee income from third parties and affiliates, and $2.4 million attributable to investments in cash equivalents and auction rate securities for the same period in 2006.

For the quarter ended June 30, 2007, as restated, net unrealized appreciation before income taxes of $1.4 million was $2.3 million, compared to $1.4 million net unrealized depreciation for the second quarter of 2006. The $3.7 million increase is attributable to $3.1 million in changes in the fair values of our targeted investments and $0.6 million in changes in market prices of our corporate notes. For the six months ended June 30, 2007, as restated, net unrealized appreciation before income taxes of $2.1 million was $6.0 million, compared to $2.5 million net unrealized depreciation for the same period of 2006. The $8.5 million increase is attributable to $6.7 million in changes in the fair values of our targeted investments and $1.8 million in changes in market prices of our corporate notes.

For the quarter ended June 30, 2007, as restated, we had a net increase in stockholders equity (net assets) resulting from operations of $11.9 million, or $0.70 per share, compared to $2.5 million, or $0.15 per share for the quarter ended June 30, 2006. For the six months ended June 30, 2007, as restated, the net increase in stockholders equity (net assets) resulting from operations was $19.3 million, or $1.12 per share, compared to $4.4 million, or $0.25 per share for the six months ended June 30, 2006.

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