NGP Capital Resources Company (NGPC, Financial) filed Amended Quarterly Report for the period ended 2008-09-30.
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.
For the nine months ended September 30, 2008, investment income increased by $0.3 million, or 1.2%, to $27.6 million from $27.3 million for the same period in 2007. For the nine months ended September 30, 2008, we recorded $24.7 million attributable to targeted investments in portfolio companies, $0.6 million from corporate notes, $2.2 million attributable to investments in cash equivalents, and $0.1 million in fee income from third parties and affiliates. This compares to investment income of $21.9 million attributable to targeted investments in portfolio companies, $0.7 million from corporate notes, $4.4 million attributable to investments in cash equivalents, and $0.3 million in fee income from third parties and affiliates, for the same period in 2007.
For the quarter ended September 30, 2008, operating expenses were $7.0 million compared to $3.8 million for the quarter ended September 30, 2007. The 2008 amount consisted of investment advisory and management and incentive fees of $4.5 million, insurance expenses, administrative services fees, professional fees, directors fees and other general and administrative expenses of $1.0 million and credit facility interest and fees of $1.5 million. This compares to investment advisory and management and incentive fees of $1.1 million, insurance expenses, administrative services fees, professional fees, directors fees and other general and administrative expenses of $1.0 million and credit facility interest and fees of $1.7 million for the quarter ended September 30, 2007. Approximately $2.5 million of incentive fees were accrued in the third quarter of 2008 with respect to the net realized gains associated with our investments in Rubicon ($12.3 million) and Resaca ($6.0 million).
For the quarter ended September 30, 2008, as restated, the increase in net unrealized depreciation before income tax benefit of $2.1 million was $3.8 million, comprised of a $5.6 million decrease in targeted portfolio fair value, a $0.6 million decrease in the fair value of corporate notes and a $2.4 million increase in the fair value of commodity derivative instruments. The decrease in targeted portfolio fair value was largely a result of the realization and reversal of $7.7 million of unrealized gains reported in previous quarters, through the sale of the assets associated with our ownership of Rubicon and the sale of our Resaca overriding royalty interests. We recorded a $3.1 million decrease in the value of our ATP Oil & Gas overriding royalty interest and a $1.3 million decrease in the value of our Venoco bonds. These decreases were partially offset by a $6.1 million increase in the value of our remaining Resaca stock and $0.4 million in unrealized appreciation of overriding royalty interests. For the quarter ended September 30, 2007, as restated, net unrealized depreciation before income taxes of $0.7 million increased $0.7 million, consisting of a $0.8 million decrease in targeted portfolio fair value and a $0.1 million increase in the fair value of corporate notes.
For the nine months ended September 30, 2008, as restated, the increase in net unrealized depreciation before income tax benefit of $2.1 million was $3.9 million, comprised of a $5.4 million decrease in targeted portfolio fair values, a $0.7 million decrease in the fair value of corporate notes and a $2.2 million increase in the fair value of commodity derivative instruments. For the nine months ended September 30, 2007, as restated, the net increase in unrealized appreciation before income taxes of $2.8 million was $5.3 million, consisting of a $5.4 million increase in portfolio fair value offset by a $0.1 million decrease in the fair value of corporate notes.
During the quarter ended September 30, 2008, we generated cash from operations, including interest earned on our portfolio securities, as well as our investments in corporate notes, U.S. government securities and other high quality debt securities that mature in one year or less. At September 30, 2008, we had cash and cash equivalents of $63.4 million, investments in U.S. Treasury Bills of $128.5 million and investments in corporate notes of $8.2 million. As of September 30, 2008, we had investments in or commitments to fund loan facilities to eighteen portfolio companies totaling $365 million, of which $301 million was drawn. We expect to fund our investments in 2008 and 2009 from income earned on our portfolio and temporary investments, repayments or realizations of existing investments and from borrowings under our Investment Facility. On September 29, 2008, we extended the term of our Investment Facility by one year, from August 31, 2009 to August 31, 2010. One of the five banks in our bank group declined to participate in the extension, which caused the total commitments on the Investment Facility to be reduced from $100 million to $87.5 million. On October 7, 2008, we repaid the entirety of the $52.625 million balance on the Investment Facility leaving the entire $87.5 million of the Investment Facility available for future draws by us. On October 9, 2008, we reduced the outstanding balance on the Treasury Facility from $126.25 million to $75 million. See description under “Note 4: Credit Facilities and Borrowings” in the accompanying notes to consolidated financial statements. Though the recent disruptions in the credit and equity markets has made our access to new debt and equity capital less certain, in the future, we may also fund a portion of our investments with issuances of equity or senior debt securities. We may also securitize a portion of our investments. We expect our primary use of funds to be investments in portfolio companies, cash distributions to holders of our common stock and payment of fees and other operating expenses.
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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 quarter ended September 30, 2008, we had one full realization and one partial realization, and the exchange of our note and warrants for equity in one company. We did not add any new companies to our portfolio during the third quarter. In August, Rubicon Energy Partners, LLC sold its assets, repaid its Senior Subordinated Secured Multiple-Advance Term Loan in full and Rubicon distributed the proceeds from its asset sale to its members, with approximately $16.3 million distributed to the Company, resulting in a realized capital gain of $12.3 million before taxes. In July, in connection with Resaca s $105.5 million initial public offering of ordinary shares on the Alternative Investment Market of the London Stock Exchange, we converted our $4.0 million Senior Subordinated Secured Convertible Term Loan into ordinary shares of Resaca, sold 1.554 million of those shares for gross proceeds of $4.0 million and continue to hold 6.6 million shares. Immediately following the offering, Resaca repaid its $6.0 million Senior Secured Tranche B Term Loan in full and repurchased overriding royalty interests held by the Company. The Company has become Resaca s sole lender, providing a $60 million Senior Secured Multiple-Advance Term Loan of which $22.0 million was outstanding as of September 30, 2008. The sale of the shares and the overriding royalty interest resulted in realized capital gains of approximately $6.0 million. Also in July we exchanged our $13.4 million Senior Secured Note and warrants for preferred membership interests in DeanLake Operator, LLC and made available an additional $3.6 million for capital expenditures.For the nine months ended September 30, 2008, investment income increased by $0.3 million, or 1.2%, to $27.6 million from $27.3 million for the same period in 2007. For the nine months ended September 30, 2008, we recorded $24.7 million attributable to targeted investments in portfolio companies, $0.6 million from corporate notes, $2.2 million attributable to investments in cash equivalents, and $0.1 million in fee income from third parties and affiliates. This compares to investment income of $21.9 million attributable to targeted investments in portfolio companies, $0.7 million from corporate notes, $4.4 million attributable to investments in cash equivalents, and $0.3 million in fee income from third parties and affiliates, for the same period in 2007.
For the quarter ended September 30, 2008, operating expenses were $7.0 million compared to $3.8 million for the quarter ended September 30, 2007. The 2008 amount consisted of investment advisory and management and incentive fees of $4.5 million, insurance expenses, administrative services fees, professional fees, directors fees and other general and administrative expenses of $1.0 million and credit facility interest and fees of $1.5 million. This compares to investment advisory and management and incentive fees of $1.1 million, insurance expenses, administrative services fees, professional fees, directors fees and other general and administrative expenses of $1.0 million and credit facility interest and fees of $1.7 million for the quarter ended September 30, 2007. Approximately $2.5 million of incentive fees were accrued in the third quarter of 2008 with respect to the net realized gains associated with our investments in Rubicon ($12.3 million) and Resaca ($6.0 million).
For the quarter ended September 30, 2008, as restated, the increase in net unrealized depreciation before income tax benefit of $2.1 million was $3.8 million, comprised of a $5.6 million decrease in targeted portfolio fair value, a $0.6 million decrease in the fair value of corporate notes and a $2.4 million increase in the fair value of commodity derivative instruments. The decrease in targeted portfolio fair value was largely a result of the realization and reversal of $7.7 million of unrealized gains reported in previous quarters, through the sale of the assets associated with our ownership of Rubicon and the sale of our Resaca overriding royalty interests. We recorded a $3.1 million decrease in the value of our ATP Oil & Gas overriding royalty interest and a $1.3 million decrease in the value of our Venoco bonds. These decreases were partially offset by a $6.1 million increase in the value of our remaining Resaca stock and $0.4 million in unrealized appreciation of overriding royalty interests. For the quarter ended September 30, 2007, as restated, net unrealized depreciation before income taxes of $0.7 million increased $0.7 million, consisting of a $0.8 million decrease in targeted portfolio fair value and a $0.1 million increase in the fair value of corporate notes.
For the nine months ended September 30, 2008, as restated, the increase in net unrealized depreciation before income tax benefit of $2.1 million was $3.9 million, comprised of a $5.4 million decrease in targeted portfolio fair values, a $0.7 million decrease in the fair value of corporate notes and a $2.2 million increase in the fair value of commodity derivative instruments. For the nine months ended September 30, 2007, as restated, the net increase in unrealized appreciation before income taxes of $2.8 million was $5.3 million, consisting of a $5.4 million increase in portfolio fair value offset by a $0.1 million decrease in the fair value of corporate notes.
During the quarter ended September 30, 2008, we generated cash from operations, including interest earned on our portfolio securities, as well as our investments in corporate notes, U.S. government securities and other high quality debt securities that mature in one year or less. At September 30, 2008, we had cash and cash equivalents of $63.4 million, investments in U.S. Treasury Bills of $128.5 million and investments in corporate notes of $8.2 million. As of September 30, 2008, we had investments in or commitments to fund loan facilities to eighteen portfolio companies totaling $365 million, of which $301 million was drawn. We expect to fund our investments in 2008 and 2009 from income earned on our portfolio and temporary investments, repayments or realizations of existing investments and from borrowings under our Investment Facility. On September 29, 2008, we extended the term of our Investment Facility by one year, from August 31, 2009 to August 31, 2010. One of the five banks in our bank group declined to participate in the extension, which caused the total commitments on the Investment Facility to be reduced from $100 million to $87.5 million. On October 7, 2008, we repaid the entirety of the $52.625 million balance on the Investment Facility leaving the entire $87.5 million of the Investment Facility available for future draws by us. On October 9, 2008, we reduced the outstanding balance on the Treasury Facility from $126.25 million to $75 million. See description under “Note 4: Credit Facilities and Borrowings” in the accompanying notes to consolidated financial statements. Though the recent disruptions in the credit and equity markets has made our access to new debt and equity capital less certain, in the future, we may also fund a portion of our investments with issuances of equity or senior debt securities. We may also securitize a portion of our investments. We expect our primary use of funds to be investments in portfolio companies, cash distributions to holders of our common stock and payment of fees and other operating expenses.
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