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NGP
Capital Resources Company Announces
December 31, 2004 Financial Results
Houston (BusinessWire)
- March 15, 2005 – NGP Capital
Resources Company (NASDAQ: NGPC)
today announced financial results
for the period August 6, 2004 through
December 31, 2004. NGPC began its
investment activities on November
15, 2004 after closing its initial
public offering of 17,400,000 shares
of common stock at $15.00 per share.
After deducting underwriting discounts,
commissions and offering expenses,
NGPC received net proceeds of $244.3
million or approximately $14.04
per share. At December 31, 2004,
our net asset value was $14.03 per
share. The purpose of the initial
public offering was to obtain capital
with which to invest primarily in
mezzanine loans and senior and subordinated
secured loans in U.S. energy companies
(portfolio investments). As of December
31, 2004, we have invested approximately
$66 million or 27% of our initial
net proceeds in portfolio investments.
Highlights
on December 31, 2004:
Stockholders'
Equity: $244.0 million
Net
Asset Value per share: $14.03
Operating
Results (in thousands):
Net decrease in stockholders' equity
(net assets) from operations: $299
Net investment loss: $590
Net unrealized appreciation: $291
Portfolio
Investment Activity:
Cost of portfolio investments made
during period: $66 million
Number of portfolio companies at
December 31, 2004: 2
Portfolio and Investment Activity
As
of December 31, 2004 we had invested
the net proceeds of our initial
offering portfolio as follows: 24%
in senior subordinated secured notes,
3% in corporate senior notes, 17%
in agency and auction rate securities,
and 56% in cash equivalents. At
December 31, 2004, the weighted
average yield of our targeted investments
(excluding cash equivalents, agency
and auction rate securities) was
12.1%. The weighted average yield
on our senior subordinated secured
debt was 12.6%. The weighted average
yield of our corporate senior notes
was 8.8%. Computed yields use interest
rates as of the balance sheet date
and include amortization of loan
origination fees, original issue
discount and market premium or discount,
weighted by their respective costs
when averaged.
Operating
Results
Investment
income was modest during our initial
45 days of investment activity following
the closing of our initial offering
as it largely reflected income generated
from invested cash and cash equivalents,
agency and auction rate securities.
Investment income totaled $853 thousand
for the period with $610 thousand
attributable to cash equivalents,
agency and auction rate securities
and $243 thousand attributable to
our targeted investments. Operating
expenses for the period were $1.4
million and included management
fees, insurance expenses, professional
fees, directors' fees and other
general and administrative expenses.
It also included a non-recurring
charge of approximately $705 thousand
in expenses related to the organization
of the company. The resulting net
investment loss was $590 thousand.
At December 31, 2004, our portfolio
had net unrealized appreciation
of $291 thousand. Overall, NGPC
had a net decrease in stockholders'
equity (net assets) resulting from
operations of $299 thousand or $0.02
per share.
Conference
Call at 10:30 a.m. Eastern Time
on March 15, 2005
NGPC
invites all interested persons to
participate in its conference call
on March 15, 2005 at 10:30 am Eastern
Time. The dial-in number for the
call is (800) 818-5264. International
callers should dial (913) 981-4910.
The pass code for the conference
call is 3434607.
We
will maintain an audio replay of
the call from 1:30 pm Eastern Time
on March 15, through March 18, 2005.
The replay dial-in number is (888)
203-1112. International callers
should dial (719) 457-0820. The
replay pass code is 3434607.
Change
in Record Date for the Annual Meeting
NGPC
also announced that it has changed
the record date for its May 18,
2005 annual meeting to April 8,
2005, from the previously announced
date of March 15, 2005.
BALANCE
SHEET
(in thousands, except per share
amounts)
December 31, 2004
(unaudited)
ASSETS
Investments in portfolio securities,
at fair value (cost - $65,771) $
66,062
Cash and cash equivalents, at cost
which approximates fair value 136,314
Investments in Agency and Auction
Rate Securities, at cost
which approximates fair value 41,301
Accounts receivable 80
Interest receivable 303
Prepaid assets 492
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Total assets $ 244,552
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LIABILITIES
Accounts Payable 513
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Total liabilities $ 513
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STOCKHOLDERS’ EQUITY (NET
ASSETS)
Common stock, par value $.001 per
share, 250,000,000 common
shares authorized, 17,400,100 issued
and outstanding $ 17
Paid-in capital in excess of par
244,321
Accumulated net investment loss
(590)
Net unrealized appreciation of portfolio
securities 291
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Total stockholders' equity (net
assets) $ 244,039
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Total liabilities and stockholders'
equity (net assets) $ 244,552
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STATEMENT
OF OPERATIONS
(in thousands, except per share
amounts)
For the period August 6, 2004
(commencement of operations)
through December 31, 2004
---------------------------
OPERATING
INCOME
Interest income $ 853
-------
Total operating income 853
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OPERATING EXPENSES
Management fee $ 453
Organization costs 705
General and administrative expenses
285
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Total operating expenses 1,443
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Net
investment loss ($590)
Net unrealized appreciation on portfolio
securities 291
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Net decrease in stockholders' equity
(net assets)
resulting from operations $ (299)
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Loss per common share $(0.02)
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PER
SHARE DATA
For the period August 6, 2004
(commencement of operations)
through December 31, 2004
--------------------------
Net
asset value, beginning of period
$ 15.00
Underwriting discounts and commissions
(0.82)
Costs related to the initial public
offering (0.13)
-------
Net asset value after offering costs
14.05
-------
Net
investment loss (0.03)
Net unrealized appreciation on portfolio
securities 0.01
-------
Net decrease in stockholders' equity
(net assets)
resulting from operations (0.02)
-------
Net asset value, end of period $
14.03 -------
About NGP Capital Resources Company
NGP
Capital Resources Company is a closed-end
investment company that has elected
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. The
Company expects to invest primarily
in senior secured and mezzanine
loans in furtherance 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, LP, an affiliate
of Natural Gas Partners, LLC, a
leading energy sector private equity
investor.
This
press release contains forward-looking
statements. 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 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 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, ww.sec.gov.
Prospective investors should read
such materials carefully before
investing.
INVESTOR
RELATIONS CONTACT: Steve Gardner,
713-752-0062 (investor_relations@ngpcrc.com)
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