Houston, TX, Sept. 18, 2012 (GLOBE NEWSWIRE) -- NGP Capital Resources Company (NASDAQ: NGPC) (the"Company") today announced that its Board of Directors has declareda quarterly dividend to stockholders in the amount of $0.16 percommon share. The expected dividend payment date is October8, 2012 to stockholders of record on September 28, 2012. Steve Gardner, President and CEO, commented, "This marks thethirty-first consecutive quarterly dividend since our initialpublic offering in November 2004, and a 23% increase from thedividend declared in the second quarter of 2012." Management expects that the dividend will be paid out ofordinary income for tax purposes. The Company determines thetax characteristics of its dividend distributions as of the end ofthe fiscal year, based on the taxable income for the full year anddistributions paid during the year. The tax characteristicsfor dividends paid in 2012 will be reported to each stockholder onForm 1099-DIV after the end of the year. All dividenddistributions in 2011 were paid from ordinary income. The Company has an "opt out" dividend reinvestment plan, or"DRIP," for its stockholders. Consequently, when the Companydeclares a cash dividend, stockholders who have not opted out ofthe DRIP automatically have their dividends reinvested in shares ofNGPC common stock, rather than receiving their dividends incash. A stockholder who has elected to receive dividends incash may re-enroll in the DRIP at any time be notifying the planadministrator. The Company also announced portfolio activity and developmentsinvolving a number of portfolio investments, including ATP Oil& Gas Corporation ("ATP"), Everest Acquisition, LLC("Everest"), and a new investment in Midstates Petroleum Company,Inc. ("Midstates"). ATP In 2011 and 2012, the Company purchased from ATP limited-termoverriding royalty interests ("ORRI") in certain offshore oil andgas producing properties operated by ATP in the Gulf ofMexico. Under this arrangement, the Company owns the right toportions (ranging from 5.0% to 10.8%) of the monthly revenues fromthe production from various oil and gas properties subject to theORRI in ATP's Gomez and Telemark properties. The Company'sunrecovered investment as of the date of this release is $42.9million. The terms of the ORRI provide that it will terminateafter the Company receives payments that equal its investments inthe ORRI plus a time-value factor that is calculated at a rate of13.2 % per annum.
On August 17, 2012, ATP filed for protection under Ch. 11 of theU.S. Bankruptcy Code, and received debtor-in-possession financingof approximately $600 million. On August 23, 2012, thebankruptcy judge presiding over ATP's case signed an order allowingATP to pay amounts received after August 17, 2012 to those partiesentitled to receive them, including the ORRIs, provided that theowners of the ORRIs execute an agreement providing for therepayment to ATP of any amounts that the bankruptcy court laterfinds to have been inappropriately paid (a "DisgorgementAgreement"). The Company has executed a DisgorgementAgreement and consequently expects to receive distribution from ATPof its share of production proceeds received by ATP after August17, 2012. The Company anticipates that it will begin toreceive monthly ORRI payments from ATP in September.Everest In August 2012, the Company sold $15.0 million face amount ofits Everest Senior Unsecured Notes for an average price of 108.5,resulting in a realized short-term capital gain of $1.3 million, or$0.06 per share. This portion of the Company's investment inEverest Senior Unsecured Notes generated a 46.2% internal rate ofreturn and a return on investment of 1.12x. The Companycontinues to hold $10.0 million face amount of Everest SeniorUnsecured Notes. Midstates On September 13, 2012, the Company agreed to purchase a $6.0million participation in Midstates's $600 million private placementof 10.75% Senior Unsecured Notes due 2020 (the "MidstatesNotes"). Proceeds from the Midstates Notes offering areexpected to be used primarily to fund the cash portion of thepurchase price for Midstates acquisition of assets of Eagle EnergyProduction, LLC. The Midstates Notes offering is expected toclose on October 1, 2012. Steve Gardner, President and CEO stated, "We are pleased toreport these developments with our portfolio investments during thequarter. The bankruptcy court approved ATP's motion to payour ORRI's in the ordinary course of business. In addition,the bankruptcy court's finance order allows ATP to use funds todrill an additional well in the Gomez field in which we have anORRI. We were pleased to participate in the Everest SeniorUnsecured Note issuance in May. We sold down our position inAugust at attractive pricing to enhance our flexibility for futureinvestment. After factoring in the Midstates Notes purchase,we have made gross investments totaling $117 million thus far in2012 and currently have approximately $55 million available underour Investment Facility for new portfolio investments."
About NGP Capital Resources CompanyNGP Capital Resources Company is a closed-end, non-diversifiedmanagement investment company that has elected to be regulated as abusiness development company under the Investment Company Act of1940. We principally invest in private companies and fromtime to time, we may also invest in public companies. Weinvest primarily in senior secured and mezzanine loans according toour business plan and in some instances receive equity interests inportfolio companies in connection with such investments. Ourmanager is NGP Investment Advisor, LP, an affiliate of NGP EnergyCapital Management (NGP ECM). Founded in 1988, NGP ECM is apremier investment franchise in the natural resources industry,which together with its affiliates has managed $13 billion incumulative committed capital since inception. Forward-Looking Statements This press release may contain forward-looking statements. We may use words such as "anticipates," "believes," "intends,""plans," "expects," "projects," "estimates," "will," "should,""may" and similar expressions to identify forward-lookingstatements. These forward-looking statements are subject tovarious risks and uncertainties. Certain factors could causeactual results and conditions to differ materially from thoseprojected, including the uncertainties associated with the timingof transaction closings, changes in interest rates, availability oftransactions, the future operating results of our portfoliocompanies, regulatory factors, changes in regional, national, orinternational economic conditions and their impact onthe industries in which we invest, other changes in the conditionsof the industries in which we invest and other factors enumeratedin our filings with the Securities and Exchange Commission (the"SEC"). You should not place undue reliance on such forward-lookingstatements, which speak only as of the date they are made. Weundertake no obligation to update our forward-looking statementsmade herein, unless required by law. Persons considering an investment in NGP Capital ResourcesCompany should consider the investment objectives, risks, andcharges and expenses of the Company carefully beforeinvesting. Such information and other information about us isavailable in our annual report on Form 10-K, in our quarterlyreports on Form 10-Q and in prospectuses we issue from time to timein connection with our offering of securities. Such materialsare filed with the SEC and copies are available on the SEC'swebsite, www.sec.gov, and in the Investor Relations section of ourwebsite at www.ngpcrc.com. Prospective investors should readsuch materials carefully before investing.
INVESTMENT CONTACT:Please send investment proposals to: NGP Capital Resources Company 713-752-0062 Kelly Plato (email@example.com), Michael Brown (firstname.lastname@example.org), Hans Hubbard (email@example.com), or Chris Ryals (firstname.lastname@example.org).
CONTACT: L. Scott Biar (email@example.com), 713-752-0062.