HOUSTON, Nov. 11 /PRNewswire-FirstCall/ -- NGP Capital Resources Company (Nasdaq: NGPC) (the 'Company') today announced its financial results for the third quarter ended September 30, 2008.

    Highlights for the quarter ended September 30, 2008:
    Stockholders' equity:  $310.2 million
    Net asset value per share:  $14.34
    Operating Results:
    Net increase in stockholders' equity (net assets) from operations:  $14.5
      million
    Net investment income:  $4.3 million
    Net realized capital gains on portfolio securities, corporate notes and
      commodity derivative instruments:  $18.3 million (before taxes)
    Net increase in unrealized depreciation on portfolio securities, corporate
      notes and commodity derivative instruments:  $3.8 million
    Dividends declared per common share:  $0.40
    Portfolio and Investment Activity:
    New investments made in portfolio companies during period: $20.1 million
    Total invested in portfolio companies at September 30, 2008:  $301 million
    Number of portfolio companies at September 30, 2008:  18

Portfolio and Investment Activity

At September 30, 2008, the Company's targeted investment portfolio consisted of 18 portfolio companies totaling $301 million. The Company had commitments to fund an additional $64 million on total committed amounts of $365 million. At September 30, 2008, the total portfolio was invested as follows: 31.6% in senior secured term loans, 5.0% in senior subordinated secured notes, 0.3% in participating convertible preferred stock, 1.8% in common stock, 1.6% in corporate notes, 6.5% in member and partnership units, 9.5% in net profits interest, 4.8% in limited term royalty interests and 0.8% in other investments. The balance of the Company's investment portfolio was comprised 25.5% in U.S. Treasury Bills and 12.6% in cash and cash equivalents.

The weighted average yield on targeted portfolio investments, exclusive of capital gains, was 12.41% at September 30, 2008. The weighted average yield on investments in corporate notes was 5.82% and on investments in U.S. Treasury Bills and cash and cash equivalents was 1.71% as of September 30, 2008. The weighted average yield on the Company's total capital invested at September 30, 2008 was 8.16%.

Operating Results - Quarter ended September 30, 2008

Investment income totaled $9.9 million for the quarter ended September 30, 2008, with $9.0 million attributable to the Company's targeted portfolio investments and $0.9 million attributable to investments in corporate notes, cash and cash equivalents and fee income. Operating expenses for the quarter ended September 30, 2008 were $7.0 million and included $4.5 million of advisory and management and capital gains incentive fees, $1.5 million of interest expense and credit facility fees and $1.0 million of general and administrative expenses. The resulting net investment income, including a $1.4 million tax benefit from affiliates, was $4.3 million. The Company experienced a net increase in unrealized depreciation of $3.8 million, consisting 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 the Company's ownership of Rubicon and the sale of its Resaca ORRI. The Company recorded a $3.1 million decrease in the value of its ATP Oil & Gas overriding royalty interest and a $1.3 million decrease in the value of its Venoco bonds. These decreases were partially offset by a $6.1 million increase in the value of the Company's remaining Resaca stock and $0.4 million in unrealized appreciation of overriding royalty interests. Overall, the Company had a net increase in stockholders' equity (net assets) resulting from operations of $14.5 million, or $0.66 per share. After giving effect to the $0.40 per common share dividend declared during the quarter, stockholders' equity (net assets) per share as of September 30, 2008 was $14.34.

Subsequent Events

On October 7, 2008, the Company repaid the entirety of its $52.625 million balance on the Investment Credit Facility and on October 9, 2008, the Company reduced the outstanding balance on the Treasury Credit Facility from $126.25 million to $75 million.

On October 31, 2008, the Company closed a $30 million Senior Secured Credit Facility (the 'Facility') with Black Pool Energy Partners, LLC ('BPEP'), a private company based in Houston, Texas. The Company acted as agent and sole lender for the Facility.