In August 2011, the Company expects to make tax payments of approximately $19 million. These tax payments are primarily associated with the sale of IRP and other non-recurring income. The Company intends to fund such tax payments primarily through the sale of portfolio securities.Operating results at Direct Fuels Partners, L.P. (“Direct Fuels”) improved substantially during the quarter. Also during the quarter, Direct Fuels sold its biodiesel business. Proceeds from the sale, including the reduction in working capital needs, along with a cash tax refund related to 2010 biodiesel production, were used to repay approximately $11 million of debt. As a result, the partnership was able to amend its credit agreement to allow the payment of cash distributions to its preferred and common unit holders for the first time since the fourth quarter of 2009. Additionally, because of Direct Fuels’ reduced debt levels and improving operating results, the Company expects Direct Fuels to continue paying $0.45 per common unit for the remainder of 2011. The Company’s guidance, however, assumes a distribution rate of $0.37 per common unit, which reflects lower margins that are more consistent with long-term historical averages. During the quarter, the Company began accruing interest on its first lien debt investment in ProPetro Services, Inc. (“ProPetro”). As a result of the debt restructuring that was completed in January and substantially improved operating results, the Company now expects to be repaid the full face value plus accrued interest when the notes mature. These first lien notes have a face value of $11.1 million and interest is paid-in-kind until their February 2012 maturity date. As of May 31 st, the Company valued the first lien notes at $11.1 million (face value) and its ProPetro common shares at $5.6 million. ProPetro is currently exploring strategic alternatives, which may result in a sale of all or a portion of its assets or businesses. RESULTS OF OPERATIONS – QUARTER ENDED MAY 31, 2011 Investment income totaled $5.3 million and consisted primarily of net dividends and distributions and interest income on the Company’s debt investments. The Company received $4.1 million of cash dividends and distributions, of which $0.5 million was treated as a return of capital during the period. During fiscal 2010, the Company estimated the return of capital portion of cash distributions received from IRP to be $1.4 million; however, during the second quarter, the Company reduced this amount to zero in accordance with tax reporting information received from IRP. During the quarter, the Company received $1.7 million of interest income, of which $0.6 million was paid-in-kind interest from ProPetro. The Company also received $0.7 million of paid-in-kind dividends, of which $0.5 million was from VantaCore Partners LP (“VantaCore”). These paid-in-kind dividends are not included in investment income, but are reflected as an unrealized gain.