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NGP Capital Resources Company Announces Third Quarter 2010 Financial Results And Portfolio Activity

On October 18, 2010, we closed a $25.0 million Senior Secured Term Loan (the "Contour Term Loan") with Pallas Contour Mining, LLC, a privately held highwall mining company based in West Virginia, and we funded our initial investment of $15.0 million. The Contour Term Loan pays cash interest at 14% per annum.

In October 2010, we purchased an additional $1.9 million face amount of GMX Notes in the secondary market. We purchased the GMX Notes, which bear interest at 5%, at a discount, resulting in an expected yield to maturity of approximately 15%.

In October 2010, we sold our overriding royalty interest associated with our BSR Holdings, LLC investment, and BSR Holdings, LLC sold all of its oil and gas working interests for gross proceeds of $340,000. We estimate that our realized capital loss, net of fees and expenses, will be approximately $5,000 on the sale and we will reverse $85,000 of unrealized appreciation.

On October 4, 2010, we sold all of our interests in Formidable, LLC ("Formidable"), Formidable's subsidiaries, and all associated rights and claims between Formidable and us for $6.0 million. The sale price comprised a $3.0 million cash payment and a promissory note for $3.0 million issued by Powder River Acquisitions, LLC that was personally guaranteed by its owner. The note bears interest at 8% per annum and has a maturity of one year. We estimate that our realized capital loss will be approximately $33.3 million and we will reverse $34.0 million of previously recorded unrealized depreciation.

Conference Call at 11:00 a.m. Eastern Time on November 9, 2010  

We invite all interested persons to participate in our conference call on November 9, 2010 at 11:00 a.m. Eastern Time. The dial-in number for the call is (877) 303-7617. International callers should dial (760) 666-3609.

We will maintain an audio replay of the call from 2:00 p.m. Eastern Time on November 9, 2010 through midnight November 15, 2010. The replay dial-in number is (800) 642-1687. International callers should dial (706) 645-9291. The replay pass code is 20916195. The call will also be accessible via the internet, on our Investor Relations page at www.ngpcrc.com .

NGP CAPITAL RESOURCES COMPANY
CONSOLIDATED BALANCE SHEETS
     
  September 30, 2010 December 31, 2009
  (Unaudited)  
Assets    
Investments in portfolio securities at fair value     
 Control investments - majority owned     
 (cost: $126,227,931 and $118,590,412, respectively)   $ 77,161,810  $ 72,449,620
 Affiliate investments     
 (cost: $34,096,517 and $30,727,367, respectively)   33,216,052  31,578,945
 Non-affiliate investments     
 (cost: $78,812,538 and $92,832,647, respectively)   76,884,017  86,965,378
Investments in corporate notes at fair value    
 (cost: $11,502,179 and $11,539,564, respectively)  10,413,838  9,062,200
Investments in commodity derivative instruments at fair value    
 (cost: $0 and $30,100, respectively)   --   49,000
Total investments  197,675,717  200,105,143
     
Cash and cash equivalents  95,315,228  108,288,217
Accounts receivable and other current assets  1,937,783  2,115,663
Interest receivable  879,360  1,241,609
Prepaid assets  1,308,235  2,201,468
Deferred tax assets  3,867,362  2,979,209
 Total current assets  103,307,968  116,826,166
     
Total assets  $ 300,983,685  $ 316,931,309
     
Liabilities and stockholders' equity (net assets)    
Current liabilities    
Accounts payable and accrued expenses  $ 1,010,799  $ 1,098,414
Management and incentive fees payable  1,409,553  1,415,866
Payables for investment securities purchased   2,856,806  -- 
Dividends payable  3,676,794  3,676,794
Income taxes payable  48,837  62,321
Total current liabilities  9,002,789  6,253,395
     
Deferred tax liabilities  3,890,519  3,002,366
Long-term debt  50,000,000  67,500,000
     
Total liabilities  62,893,308  76,755,761
     
Commitments and contingencies     
     
Stockholders' equity (net assets)    
 Common stock, $.001 par value, 250,000,000 shares authorized;    
21,628,202 shares issued and outstanding  21,628  21,628
 Paid-in capital in excess of par  295,174,063  295,174,063
 Undistributed net investment income (loss)  (7,898,735)  (4,944,530)
 Undistributed net realized capital gain (loss)  (110,492)  -- 
 Net unrealized appreciation (depreciation) of portfolio securities,    
 corporate notes and commodity derivative instruments  (49,096,087)  (50,075,613)
     
Total stockholders' equity (net assets)  238,090,377  240,175,548
     
Total liabilities and stockholders' equity (net assets)  $ 300,983,685  $ 316,931,309
     
Net asset value per share  $ 11.01  $ 11.10
 
NGP CAPITAL RESOURCES COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
         
  For The Three Months Ended For The Nine Months Ended
  September 30, 2010 September 30, 2009 September 30, 2010 September 30, 2009
         
Investment income        
 Interest and dividend income:        
 Control investments - majority owned  $ 1,188,139  $ 967,554  $ 3,384,042  $ 967,554
 Affiliate investments  959,298  1,158,016  2,692,192  3,959,181
 Non-affiliate investments  3,011,209  3,965,629  9,568,456  13,731,339
 Royalty income (loss), net of amortization:        
 Control investments - majority owned  522,473  828,553  1,277,258  894,233
 Non-affiliate investments  (75,337)  (1,755,557)  (1,038,012)  (5,489,340)
 Commodity derivative income, net of expired options  --   829,946  16,079  5,884,027
 Other income  640,000  27,526  1,570,000  144,264
         
 Total investment income  6,245,782  6,021,667  17,470,015  20,091,258
         
Operating expenses        
 Management and incentive fees  1,409,553  1,540,756  4,171,952  5,021,782
 Professional fees  159,960  214,591  646,936  701,217
 Insurance expense  185,658  199,959  556,974  600,140
 Interest expense and fees  339,073  446,600  956,254  2,541,151
 Other general and administrative expenses  973,024  718,585  2,763,012  2,261,123
         
 Total operating expenses  3,067,268  3,120,491  9,095,128  11,125,413
         
Net investment income before income taxes  3,178,514  2,901,176  8,374,887  8,965,845
         
Benefit (provision) for income taxes  (808,279)  2,321  (298,709)  15,314
         
Net investment income   2,370,235  2,903,497  8,076,178  8,981,159
         
Net realized capital gain (loss) on investments        
 Net realized capital gain (loss) on portfolio securities,        
 and corporate notes:        
 Control investments - majority owned  --   --   --   (350,000)
 Non-affiliate investments  --   --   --   296,037
 Benefit (provision) for taxes on capital gain (loss)   (91,879)  --   (110,492)  119,000
         
 Total net realized capital gain (loss) on investments  (91,879)  --   (110,492)  65,037
         
Net unrealized gain (loss) on investments        
 Net increase (decrease) in unrealized appreciation        
 (depreciation) on portfolio securities, corporate        
 notes and commodity derivative instruments:        
 Control investments - majority owned  (2,838,653)  1,688,108  (2,925,328)  (3,056,931)
 Affiliate investments  (1,542,752)  4,511,162  (1,732,043)  5,105,390
 Non-affiliate investments  1,261,745  5,113,957  5,308,870  (19,724,604)
 Benefit for taxes on unrealized gain (loss)  905,413  513,400  328,027  2,154,226
         
 Total net unrealized gain (loss) on investments  (2,214,247)  11,826,627  979,526  (15,521,919)
         
Net increase (decrease) in stockholders' equity         
 (net assets) resulting from operations  $ 64,109  $ 14,730,124  $ 8,945,212  $ (6,475,723)
         
Net increase (decrease) in stockholders' equity (net assets)         
 resulting from operations per common share  $ --   $ 0.68  $ 0.42  $ (0.30)
     
  For The Three Months Ended For The Nine Months Ended
Per Share Data (1) September 30, 2010 September 30, 2009 September 30, 2010 September 30, 2009
  (unaudited) (unaudited) (unaudited) (unaudited)
         
Net asset value, beginning of period  $ 11.18  $ 10.85  $ 11.10  $ 12.15
         
Net investment income   0.11  0.13  0.37  0.42
Net realized and unrealized gain (loss) on portfolio securities,        
 corporate notes and commodity derivative instruments  (0.11)  0.55  0.05  (0.72)
Net increase (decrease) in stockholders' equity (net assets)        
 resulting from operations  --   0.68  0.42  (0.30)
         
Net asset value before dividends  11.18  11.53  11.52  11.85
         
Dividends declared  (0.17)  (0.15)  (0.51)  (0.47)
         
Net asset value, end of period  $ 11.01  $ 11.38  $ 11.01  $ 11.38
         
(1) Per Share Data is based on common shares outstanding at the end of the period.    

About NGP Capital Resources Company

NGP Capital Resources Company is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. We principally invest in energy related private companies and from time to time, we may also invest in public companies. We invest primarily in senior secured and mezzanine loans according to our business plan and in some instances receive equity investments in portfolio companies in connection with such investments. Our manager is NGP Investment Advisor, LP, an affiliate of NGP Energy Capital Management, L.L.C. NGP Energy Capital Management, L.L.C., based in Irving, Texas, is a leading investment firm with over $9.5 billion of cumulative capital under management since inception, serving all sectors of the energy industry.

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