NGP Capital Resources Company Announces 2006 Financial Results


HOUSTON, March 9, 2007 (PRIME NEWSWIRE) -- NGP Capital Resources Company (Nasdaq:NGPC) today announced its financial results for the fourth quarter and full year of 2006.

Highlights for the year ended 2006:



 Stockholders' Equity: $243.3 million
 Net Asset Value per share: $13.96

 Operating Results:
   Net increase in stockholders' equity (net assets)
    from operations: $15.0 million
  Net investment income: $16.55 million
  Net realized capital loss: $0.25 million
  Net unrealized depreciation: $1.3 million
  Dividends per share: $0.92

 Portfolio Investment Activity:
 New portfolio investments made during period: $121.8 million
 Total invested in portfolio companies at
  December 31, 2006: $172 million
 Number of portfolio companies at December 31, 2006: 14

Portfolio and Investment Activity

Since commencement of our investment operations in November 2004 through December 31, 2006, we have invested $266.9 million in seventeen portfolio companies, and received principal repayments of $95.1 million. At December 31, 2006, our targeted investment portfolio consisted of fourteen portfolio companies totaling $172 million. The total portfolio was invested as follows: 37.7% in senior secured term loans, 10.8% in senior subordinated secured notes, 0.6% in participating convertible preferred stock, 4.4% in corporate notes, 1.2% in LLC units, 41.7% in U.S. Treasury Bills and 3.6% in cash and cash equivalents.

The weighted average yield on targeted portfolio investments was 12.0% at December 31, 2006. The weighted average yield on investments in corporate notes was 5.5% and on investments in U.S. Treasury Bills and cash and cash equivalents was 4.6% as of December 31, 2006. The weighted average yield on our total capital invested at December 31, 2006 was 8.3%.

Operating Results -- Year ended December 31, 2006

Investment income totaled $27.5 million for the year ended December 31, 2006, with $20.5 million attributable to our targeted portfolio investments and $7.0 million attributable to investments in corporate notes, cash and cash equivalents and fee income. Operating expenses for the year were $11.0 million and included $4.7 million of management and incentive fees, $2.6 million in interest and credit facility fees and $3.7 million of general and administrative expenses. The resulting net investment income was $16.55 million. In 2006, our portfolio experienced net unrealized depreciation of $1.3 million, consisting of net appreciation from investments in portfolio companies of $0.1 million and net depreciation from investments in corporate notes of $1.4 million. We also realized net capital losses of $0.25 million on the sale of $4.0 million in corporate notes. Overall, we had a net increase in stockholders' equity (net assets) resulting from operations of $15.0 million, or $0.86 per share. After giving effect to the $0.92 per common share dividends declared during the year, stockholders' equity (net assets) per share as of December 31, 2006 was $13.96.

Operating Results -- Three months ended December 31, 2006

Investment income totaled $8.9 million for the three months ended December 31, 2006, with $6.9 million attributable to our targeted portfolio investments and $2.0 million attributable to investments in corporate notes, cash and cash equivalents and fee income. Operating expenses for the period were $4.0 million and included $1.4 million of management and incentive fees, $1.5 million in interest and credit facility fees and $1.1 million of general and administrative expenses. The resulting net investment income for the fourth quarter of 2006 was $4.9 million. For the three months ending December 31, 2006, our portfolio experienced net unrealized appreciation of $0.43 million and we realized net capital losses of $0.07 million on the sale of corporate notes. Overall, we had a net increase in stockholders' equity (net assets) resulting from operations of $5.26 million, or $0.30 per share for the three months ended December 31, 2006 and declared dividends during the period of $0.33 per share, resulting in stockholders' equity (net assets) per share of $13.96 as of December 31, 2006.

Subsequent Events

In January 2007, we closed a $36.5 million Senior Secured Credit Facility with Alden Resources, LLC, a private Louisville, Kentucky based specialty coal company. The initial funding under the facility totaled approximately $28.5 million. Also, since the beginning of the 2007 fiscal year, existing portfolio companies have drawn approximately $9.4 million under their respective facilities.

Conference Call at 11:00 a.m. Eastern Time on March 9, 2007

NGPC invites all interested persons to participate in its conference call on March 9, 2007 at 11:00 am Eastern Time. The dial-in number for the call is (877) 704-5379. International callers should dial (913) 312-1293. The pass code for the conference call is 2828242.

The Company will maintain an audio replay of the call from 2:00 pm Eastern Time on March 9, 2007 through midnight March 16, 2007. The replay dial-in number is (888) 203-1112. International callers should dial (719) 457-0820. The replay pass code is 2828242.



                      NGP CAPITAL RESOURCES COMPANY
                       CONSOLIDATED BALANCE SHEETS


                                           December 31,   December 31,
                                               2006           2005
                                           ------------  ------------
 Assets                                    
                                           
  Investments in portfolio securities      
   at fair value (cost: $170,863,203 and   
   $91,761,111, respectively)              $172,025,498  $ 92,847,043
  Investments in corporate notes at        
   fair value (cost: $17,681,646 and       
   $21,727,976, respectively)                15,116,080    20,537,900
  Investments in U.S. Treasury Bills,      
   at amortized cost which approximates    
   fair value                               142,669,579   121,518,196
                                           ------------  ------------
     Total investments                      329,811,157   234,903,139
                                           ------------  ------------
                                           
  Cash and cash equivalents, at cost       
   which approximates fair value             12,334,329    13,350,588
  Accounts receivable                           452,916        50,965
  Interest receivable                         1,400,757       609,545
  Prepaid assets                              1,598,501       576,029
                                           ------------  ------------
                                           
     Total assets                          $345,597,660  $249,490,266
                                           ============  ============
                                           
 Liabilities and stockholders'             
  equity (net assets)                      
 Current Liabilities                       
                                           
   Accounts payable                        $    965,105  $    407,580
   Management and incentive fees payable      1,374,299       399,173
   Dividends payable                                 --     4,785,028
                                           ------------  ------------
     Total current liabilities                2,339,404     5,591,781
                                           ------------  ------------
                                           
 Long-term debt                             100,000,000            --
                                           ------------  ------------
                                           
 Total liabilities                          102,339,404     5,591,781
                                           ------------  ------------
                                           
 Commitments and contingencies             
                                           
 Stockholders' equity (net assets)         
  Common stock, $.001 par value,           
   250,000,000 shares authorized;          
   17,422,268 and 17,400,100 issued and    
   17,422,268 and 17,400,100 outstanding,  
   respectively                                  17,422        17,400
  Paid-in capital in excess of par          244,660,173   244,309,260
  Undistributed net investment             
   income (loss)                                (16,068)     (324,031)
  Net unrealized appreciation              
   (depreciation) of portfolio securities  
   and corporate notes                       (1,403,271)     (104,144)
                                           ------------  ------------
                                           
     Total stockholders' equity 
      (net assets)                          243,258,256   243,898,485
                                           ------------  ------------
                                           
 Total liabilities and stockholders'       
  equity (net assets)                      $345,597,660  $249,490,266
                                           ============  ============
                                           
 Net asset value per share                 $      13.96  $      14.02
                                           ============  ============



                     NGP CAPITAL RESOURCES COMPANY
                CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                                             Period
                                                          Aug 6, 2004
                                                         (commencement
                                                               of
                                                           operations)
                              Yr ended      Yr ended         through
                            Dec 31, 2006  Dec 31, 2005    Dec 31, 2004
                            ------------  ------------   ------------
Investment income                                           
 Interest income            $ 26,905,712  $ 16,960,044   $   853,038
 Dividend income                 123,750        33,250            --
 Other income                    487,631       313,500            --
                            ------------  ------------   -----------
                            
   Total operating income     27,517,093    17,306,794       853,038
                            ------------  ------------   -----------
                            
 Operating expenses         
  Management fees              4,737,727     3,699,173       452,676
  Organization costs                  --         1,111       704,808
  Professional fees              713,969       866,880            --
  Insurance expense              570,462       570,891        79,278
  Interest expense and fees    2,554,546       199,983            --
  State franchise taxes          142,517            --            --
  General and administrative 
   expenses                    2,251,668     1,560,847       206,493
                            ------------  ------------   -----------
                            
   Total operating expenses   10,970,889     6,898,885     1,443,255
                            ------------  ------------   -----------
                            
 Net investment income      
  (loss)                      16,546,204    10,407,909      (590,217)
                            
 Net realized capital gain  
  (loss) on portfolio       
  securities and corporate   
  notes                         (245,859)    1,338,351            --
 Net increase (decrease) in 
  unrealized appreciation   
  (depreciation) on portfolio
  securities and corporate   
  notes                       (1,299,127)     (394,933)      290,789
                            ------------  ------------   -----------
                            
 Net increase (decrease) in 
  stockholders' equity      
  (net assets) resulting    
  from operations           $ 15,001,218  $ 11,351,327   $  (299,428)
                            ============  ============   ===========
                            
 Net increase (decrease) in 
  stockholders' equity      
  (net assets)              
  resulting from operations 
  per common share          $       0.86  $       0.65   $     (0.02)
                            ============  ============   ===========
                          
                                                                     
Per Share Data                                                       
                                                             Period
                                                          Aug 6, 2004
                                                         (commencement
                                                               of
                                                           operations)
                              Yr ended      Yr ended         through
                            Dec 31, 2006  Dec 31, 2005    Dec 31, 2004
                            ------------  ------------   ------------
                                                              
Net asset value, beginning 
 of period                  $      14.02  $      14.03   $     15.00 
                            ------------  ------------   -----------
Underwriting discounts, 
 commissions related to IPO           --            --         (0.82)
                                                    
Net realized and unrealized 
 (loss) on portfolio 
 securities                           --            --         (0.13)
                            ------------  ------------   -----------
Net asset value after initial 
 public offering                                               14.05 
Net investment income               0.95          0.60         (0.03)
Net realized and unrealized 
 (loss) on portfolio 
 securities                        (0.09)         0.05          0.01 
                            ------------  ------------   -----------
Net increase in stockholders' 
 equity (net assets)                                
 resulting from operations          0.86          0.65         (0.02)
                            ------------  ------------   -----------
                                               
Net asset value before 
 dividends                         14.88         14.68         14.03 
                                                                
Dividends declared                 (0.92)        (0.66)           -- 
                            ------------  ------------   -----------
                                                                
Net asset value, 
 end of period              $      13.96  $      14.02  $      14.03 
                            ============  ============  ============


                     NGP CAPITAL RESOURCES COMPANY
                 CONSOLIDATED STATEMENTS OF OPERATIONS

                                                 For the Three
                                                  Months Ended
                                                  Dec 31, 2006
                                                   (unaudited)
                                                   -----------
 Investment income
  Interest income                                  $ 8,865,203
  Dividend income                                       62,753
  Other income                                          36,370
                                                   -----------

   Total operating income                            8,964,326
                                                   -----------

 Operating expenses
  Management fees                                    1,374,300
  Organization costs                                        -- 
  Professional fees                                    170,009
  Insurance expense                                    137,639
  Interest expense and fees                          1,558,405
  State franchise taxes                                142,517
  General and administrative expenses                  652,639
                                                   -----------

   Total operating expenses                          4,035,509
                                                   -----------

 Net investment income (loss)                        4,928,817

 Net realized capital gain (loss)
  on portfolio securities and
  corporate notes                                      (71,458)

 Net increase (decrease) in
  unrealized appreciation
  (depreciation) on portfolio
  securities and corporate notes                       431,535
                                                   -----------

 Net increase (decrease) in
  stockholders' equity (net assets)
  resulting from operations                        $ 5,288,894
                                                   ===========

 Net increase (decrease) in
  stockholders' equity (net assets)
  resulting from operations per
  common share                                     $      0.30
                                                   ===========


Per Share Data
                                                 For the Three
                                                  Months Ended
                                                  Dec 31, 2006
                                                   (unaudited)
                                                   -----------

 Net asset value,
  beginning of period                              $     13.99
                                                   -----------

 Underwriting discounts,
  commissions related to IPO                                --
 Net realized and unrealized
  (loss) on portfolio securities                            -- 
                                                   -----------
 Net asset value after initial
  public offering
 Net investment income                                    0.28
 Net realized and unrealized (loss)
  on portfolio securities                                 0.02
                                                   -----------
 Net increase in stockholders'
  equity (net assets)
 resulting from operations                                0.30
                                                   -----------

 Net asset value before dividends                        14.29

 Dividends declared                                      (0.33)
                                                   -----------

 Net asset value, end of period                    $     13.96
                                                   ===========

About NGP Capital Resources Company

NGP Capital Resources Company is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The Company's investment portfolio is principally invested in energy related private companies. From time to time, the Company may also invest in public companies. The Company invests primarily in senior secured and mezzanine loans in furtherance of its business plan and in some instances receives equity investments in portfolio companies in connection with such investments. NGP Capital Resources Company is managed by NGP Investment Advisor, LP, an affiliate of NGP Energy Capital Management. NGP Energy Capital Management, based in Irving, Texas, is a leading investment firm with over $3.6 billion of cumulative capital under management since inception, serving all sectors of the energy industry.

This press release may contain forward-looking statements. These forward-looking statements are subject to various risks and uncertainties, which could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, the future operating results of our portfolio companies, changes in regional, national, or international economic conditions and their impact on the industries in which we invest, or changes in the conditions of the industries in which we invest, and other factors enumerated in our filings with the Securities and Exchange Commission.

We may use words such as "anticipates," "believes," "expects," "intends," "will," "should," "may" and similar expressions to identify forward-looking statements. Undue reliance should not be placed on such forward-looking statements as such statements speak only as of the date on which they are made. We do not undertake to update our forward-looking statements unless required by law.

Persons considering an investment in NGP Capital Resources Company should consider the investment objectives, risks, and charges and expenses of the company carefully before investing. Such information and other information about the company is available in our annual report on Form 10-K, in our quarterly reports on Form 10-Q and in prospectuses we issue from time to time in connection with our offering of securities. Such materials are filed with the SEC and copies are available on the SEC's website, www.sec.gov. Prospective investors should read such materials carefully before investing.



            

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