HOUSTON, March 12 /PRNewswire-FirstCall/ -- NGP Capital Resources Company (Nasdaq: NGPC) (the 'Company') today announced that its Board of Directors has declared a quarterly dividend to stockholders in the amount of $0.20 per common share. The expected dividend payment date is April 10, 2009 to shareholders of record on March 31, 2009. It is expected that the dividend will be paid out of ordinary income for tax purposes. The tax characteristics of all dividends will be reported to each shareholder on Form 1099 after the end of the year.
The Company also announced its financial results for the fourth quarter and full year of 2008.
Highlights for the year ended 2008:
Stockholders' equity: $265.8 million
Net asset value per share: $12.29
Operating Results:
Net decrease in stockholders' equity (net assets) from operations: $13.3 million
Net investment income: $23.6 million
Net realized capital gains on portfolio securities, corporate notes and commodity derivative instruments: $19.3 million (before taxes)
Net increase in unrealized depreciation on portfolio securities, corporate notes and commodity derivative instruments: $51.6 million
Dividends declared per common share: $1.61
Portfolio and Investment Activity:
New investments made in portfolio companies during period: $113.1 million
Total invested in portfolio companies at December 31, 2008: $296 million
Number of portfolio companies at December 31, 2008: 19
Portfolio and Investment Activity
During 2008, the Company added investments of $62.8 million in five new portfolio companies and funded $50.3 million to existing portfolio companies, for a total of $113.1 million in 2008. The Company received principal repayments and realizations of $96.2 million in 2008. From commencement of investment operations in November 2004 through December 31, 2008, the Company has invested $613.6 million in twenty-eight portfolio companies, all energy-related, and received principal repayments and realizations of $317.6 million. At December 31, 2008, the Company's targeted investment portfolio consisted of nineteen portfolio companies totaling $296.0 million.
The weighted average yield on targeted portfolio investments was 9.1% at December 31, 2008. The weighted average yield on investments in corporate notes was 5.8%, on investments in commodity derivatives was 934.6% and on investments in cash and cash equivalents was 0.5% as of December 31, 2008. The weighted average yield on the Company's total capital invested at December 31, 2008 was 8.0%.
Operating Results - Year ended December 31, 2008
Investment income totaled $37.5 million for the year ended December 31, 2008, with $34.2 million attributable to the Company's targeted portfolio investments and $3.3 million attributable to investments in corporate notes, cash and cash equivalents and fee income. Operating expenses for the year ended December 31, 2008 were $18.8 million and included $7.6 million of advisory and management and capital gains incentive fees, $6.6 million of interest expense and credit facility fees and $4.6 million of general and administrative expenses. The resulting net investment income, including a $4.9 million tax benefit, was $23.6 million.
The Company had net realized capital gains before taxes of $19.3 million. After provision for taxes, net realized capital gains totaled $14.8 million.
As a consequence of the general economic downturn, associated weakness in the energy commodity markets and dislocation in the credit markets, the Company experienced a net increase in unrealized depreciation of $51.6 million, consisting of a $56.5 million decrease in targeted portfolio fair value, a $2.5 million decrease in the fair value of corporate notes and a $7.4 million increase in the fair value of commodity derivative instruments.
The combined decrease in targeted portfolio fair value and hedge position fair value of $49.1 million ($56.5 million decrease in targeted portfolio offset by $7.4 million increase in hedge position) is the result of a combination of adjustments. Approximately 20% of the change is due to changes in the current market values of exchange listed securities, approximately 20% is due to changes in the estimated market yields required for comparable securities, approximately 10% is due to changes in the current market values for commodities, approximately 35% is due to changes in the estimated current market values of underlying assets and approximately 15% is due to the reversal of unrealized gain upon realization.
Overall, the Company had a net decrease in stockholders' equity (net assets) resulting from operations of $13.3 million, or a decrease of $0.62 per share. After giving effect to the $1.61 per common share dividend declared during the year, stockholders' equity (net assets) per share as of December 31, 2008 was $12.29.
Operating Results - Three months ended December 31, 2008
Investment income totaled $9.9 million for the three months ended December 31, 2008, with $9.5 million attributable to targeted portfolio investments and $0.4 million attributable to investments in corporate notes, cash and cash equivalents and fee income. Operating expenses for the period were $2.0 million and included a decrease of $0.5 million of management and incentive fees, $1.3 million of interest and credit facility fees and $1.2 million of general and administrative expenses.
