Portfolio and Investment Activity

Crossroads Energy, LP

On June 18, 2009, Crossroads Energy, LP ("Crossroads") repaid in its entirety its $5.24 million Senior Secured Credit Facility with the proceeds from a new senior bank facility. On June 25, 2009, Crossroads repurchased the Company's overriding royalty interest, resulting in a $0.29 million realized capital gain for the Company.

Resaca Exploitation, Inc.

On June 26, 2009 Resaca Exploitation, Inc. repaid in full the $31.1 million balance on its Multiple Advance Senior Secured Term Loan. Concurrently, the Company provided a $10 million commitment as part of Resaca's new $35 million Senior Secured Revolving Credit Facility, agented by another financial institution, and funded $9.1 million at closing. The Revolving Credit Facility matures on July 1, 2012, and bears interest at LIBOR plus 5.50%, with a LIBOR floor of 2.50%.

Nighthawk Transport I, LP

In May of this year, Nighthawk Transport I, LP and its subsidiaries (collectively, "Nighthawk") defaulted under the terms of its senior credit facility. Nighthawk was unable to restructure its obligations under the senior credit facility and on July 10, 2009 filed a voluntary petition under Chapter 7 of the United States Bankruptcy Code. The Company holds a 16.98% participation in a $109 million senior secured, second lien facility for Nighthawk. As of July 21, 2009, the outstanding balance due to the Company under this facility was $14.5 million. As of March 31, 2009, the Company recorded its investment in Nighthawk at a fair value of $10.0 million, representing a net asset value of $0.46 per common share of the Company. Although the Company is pursuing its claims, it does not expect a material recovery.

Alden Resources, LLC

On July 20, 2009, the Company closed a recapitalization transaction with Alden Resources, LLC ("Alden"), a Kentucky-based specialty coal producer. As part of the recapitalization, NGPC Asset Holdings, LP, a wholly-owned subsidiary of the Company, purchased $5.8 million of preferred units representing substantially all of the equity interest in Alden. The proceeds of the preferred equity issuance will be used for capital expenditures, working capital, and general corporate purposes. In addition to acquiring a majority ownership position, the Company will hold a majority of the seats on the board of directors of Alden.