NGP Capital Resources Company Announces Third Quarter 2010 Financial Results And Portfolio Activity
The weighted average yield on targeted portfolio investments, exclusive of capital gains, was 8.36% at September 30, 2010. The weighted average yield on investments in corporate notes was 5.82%, and the weighted average yield on investments in cash and cash equivalents was 0.59%. The weighted average yield on our total capital invested at September 30, 2010 was 6.13%.
Operating Results – Three months ended September 30, 2010
Investment income totaled $6.2 million for the quarter ended September 30, 2010, with $4.9 million attributable to interest from our targeted portfolio investments, $0.4 million attributable to royalty income and $0.9 million attributable to investments in corporate notes, cash equivalents and fee income from third parties and affiliates. Operating expenses for the quarter ended September 30, 2010 were $3.1 million and included $1.4 million of advisory and management fees, $0.3 million of interest expense and credit facility fees and $1.4 million of general and administrative expenses. The resulting net investment income, including a $0.8 million provision for income taxes, was $2.4 million.
For the three months ended September 30, 2010, we experienced net unrealized depreciation of $3.1 million before income tax benefits of $0.9 million, consisting of a $4.0 million decrease in targeted portfolio fair value and a $0.9 million increase in the fair value of corporate notes. The decrease in targeted portfolio fair value was largely a result of changes in the estimated current market values of underlying assets.Overall, we had a net increase in stockholders' equity (net assets) resulting from operations of $0.1 million for the three months ended September 30, 2010 and dividends declared during the period of $0.17 per common share, resulting in stockholders' equity (net assets) per common share of $11.01 as of September 30, 2010. Subsequent Events On October 14, 2010, we closed a $9.0 million participation in a $180.0 million Term Loan (the "Crestwood Term Loan") issued by Crestwood Holdings, LLC ("Crestwood"), the holding company for wholly-owned subsidiary Crestwood Midstream Partners, LP ("Crestwood Midstream"). Crestwood Midstream is a gas gathering and processing company operating primarily in the Barnett Shale in north Texas. The Crestwood Term Loan earns interest at LIBOR (subject to a 2% floor) plus 850 basis points. We purchased the participation at a 2% discount, resulting in an expected yield to maturity of approximately 10.9%. Crestwood's interests in Crestwood Midstream serve as collateral for the Crestwood Term Loan. Crestwood used the proceeds from the Crestwood Term Loan to facilitate the acquisition of the interests in Crestwood Midstream from Quicksilver Resources, Inc.
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