OVERLAND PARK, Kan., July 13 /PRNewswire-FirstCall/ -- Tortoise Capital Resources Corp. today announced its financial results for the second quarter ended May 31, 2007, in its Form 10-Q filed today.
Highlights for the Quarter
-- Completed four investments totaling $23.0 million
-- Net Unrealized Appreciation of $4.2 million (Net of Deferred Tax)
-- Net Assets of $124.1 million or $14.05 per share
-- No portfolio turnover
Portfolio and Investment Activity
As of May 31, 2007, Tortoise Capital Resources' investment portfolio (excluding short-term investments) totaled $102.8 million, including equity investments of $94.0 million and debt investments of $8.8 million.
Recent Developments
In June 2007, the company completed the full investment of its initial public offering proceeds with four additional investments totaling $29.5 million. The portfolio represents a strategic mix of 17 percent upstream investments, 59 percent midstream investments, 7 percent downstream and 17 percent in aggregates and coal. Percentages are based on fair market values as of May 31, 2007, except for investments made after May 31, 2007, which are valued at cost.
In June 2007, the company made four new investments:
-- $10.0 million follow-on investment in High Sierra Energy, L.P. common
units to support the company's organic growth projects and selective
acquisitions.
-- $10.0 million in common units of International Resource Partners, L.P.
supporting the company's initial acquisition of surface and underground
coal mine operations in southern West Virginia. Initial assets include
metallurgical and steam coal reserves, a coal washing and preparation
plant, rail load-out facilities and a sales and marketing subsidiary.
-- $7.5 million in a direct placement in EV Energy Partners, L.P.'s
common units. EVEP has stated that the proceeds will be
used to repay their borrowings under a revolving credit facility used
to finance a previously completed acquisition of Monroe field
properties in Louisiana. In addition, EVEP stated that the proceeds
will fund a portion of its $100 million acquisition of oil and natural
gas properties in Central and East Texas.
-- $2.0 million follow-on investment in subordinated debt of Mowood, LLC
to finance the purchase of equipment for landfill gas-to-energy
projects in Oklahoma and Florida.
"We continue to see strong deal flow as reflected by our investment pace and pipeline," said Ed Russell, Tortoise Capital Resources' President. "We believe our platform will continue to provide us with the opportunity to select long-term accretive investments for our stockholders."
Dividends
On June 1, 2007, we paid a quarterly dividend to our stockholders of record as of May 24, 2007, of $0.16 per common share. The company anticipates its next quarterly distribution will be paid on or about Sept. 1, 2007.
About Tortoise Capital Resources Corp.
Tortoise Capital Resources invests primarily in privately-held and micro- cap public companies operating in the midstream and downstream segments, and to a lesser extent the upstream segments of the U.S. energy infrastructure sector. Tortoise Capital Resources seeks to provide stockholders a high level of total return, with an emphasis on dividends and dividend growth.
About Tortoise Capital Advisors, LLC
Tortoise Capital Advisors, LLC, the adviser to Tortoise Capital Resources Corp., is a pioneer in the capital markets for master limited partnership (MLP) investment companies and a leader in closed-end funds and separately managed accounts focused on MLPs in the energy infrastructure sector. As of June 30, 2007, the adviser had approximately $3.0 billion of energy infrastructure investment assets under management.
Safe Harbor Statement
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Tortoise Capital Resources Corporation
STATEMENTS OF ASSETS & LIABILITIES
May 31, 2007 November 30, 2006
(Unaudited)
Assets
Investments at value, non-affiliated
(cost $53,074,126 and $21,867,831,
respectively) $60,929,415 $22,196,689
Investments at value, affiliated
(cost $48,753,776 and $14,828,825,
respectively) 50,701,156 14,828,825
Investments at value, control (cost
$18,800,000 and $5,550,000,
respectively) 18,973,954 5,550,000
Total investments (cost $120,627,902
and $42,246,656, respectively) 130,604,525 42,575,514
Dividends receivable 124,586 24,262
Interest receivable from control
investments 61,859 43,983
Other receivable from affiliate - 44,487
Prepaid expenses and other assets 109,863 244,766
Total assets 130,900,833 42,933,012
Liabilities
Management fees payable to Adviser 468,000 112,765
Accrued capital gain incentive fees
payable to Adviser (Note 4) 1,496,494 -
Dividend payable on common shares 1,414,035 -
Accrued expenses and other
liabilities 143,289 155,303
Current tax liability 67,786 86,386
Deferred tax liability 3,174,261 250,156
Total liabilities 6,763,865 604,610
Net assets applicable to common
stockholders $124,136,968 $42,328,402
Net Assets Applicable to Common
Stockholders Consist of
Warrants, no par value; 948,005
issued and outstanding
at May 31, 2007 and 772,124 issued
and outstanding at November 30,
2006 (5,000,000 authorized) $1,374,147 $1,104,137
Capital stock, $0.001 par value;
8,837,721 shares issued and
outstanding at May 31, 2007 and
3,088,596 issued and outstanding
at November 30, 2006 (100,000,000
shares authorized) 8,838 3,089
Additional paid-in capital 118,662,119 41,018,413
Accumulated net investment loss, net
of deferred tax benefit (2,101,017) -
Accumulated realized gain (loss),
net of deferred tax expense 7,595 (906)
Net unrealized appreciation of
investments, net of deferred tax
expense 6,185,286 203,669
Net assets applicable to common
stockholders $124,136,968 $42,328,402
Net Asset Value per common share
outstanding (net assets applicable
to common shares, divided by
common shares outstanding) $14.05 $13.70
Tortoise Capital Resources Corporation
STATEMENTS OF OPERATIONS (Unaudited)
For the Period from
three December 8,
For the months 2005 (1)
three months ended For the six through
ended May 31, months ended May 31,
May 31, 2007 2006 May 31, 2007 2006
Investment Income
Distributions received
from investments
Non-affiliated
investments $347,442 $- $695,872 $-
Affiliated
investments 1,078,025 - 1,333,282 -
Total distributions
received from
investments 1,425,467 2,029,154
Less return of capital
on distributions
Non-affiliated
investments (602,896) - (889,148) -
Affiliated investments (881,245) - (1,075,050) -
Net distributions
from investments (58,674) - 64,956 -
Dividends from money
market mutual funds 442,126 347,496 581,659 751,001
Interest income from
control investments 162,404 - 290,876 -
Total Investment Income 545,856 347,496 937,491 751,001
Expenses
Base management fees 468,012 169,367 848,079 306,163
Capital gain incentive
fees (Note 4) 1,008,867 - 1,496,494 -
Professional fees 157,467 44,201 214,848 83,597
Directors' fees 25,205 23,129 48,373 43,743
Administrator fees 20,063 (6,844) 30,736 -
Reports to stockholders 11,847 2,067 16,305 15,810
Fund accounting fees 8,428 6,599 14,277 12,409
Stock transfer agent fees 3,680 7,260 7,280 10,009
Custodian fees and
expenses 2,545 1,610 5,145 3,438
Registration fees 6,395 - 8,063 -
Other expenses 11,454 3,908 17,992 10,849
Total Expenses before
Interest Expense,
Preferred Stock
Dividends and Loss on
Redemption of Preferred
Stock 1,723,963 251,297 2,707,592 486,018
Interest expense (5,771) - 117,710 -
Preferred stock dividends - - 228,750 -
Loss on redemption of
preferred stock (33,346) - 731,713 -
Total Interest Expense,
Preferred Stock
Dividends and Loss on
Redemption of
Preferred Stock (39,117) - 1,078,173 -
Total Expenses 1,684,846 251,297 3,785,765 486,018
Net Investment Income (Loss),
before Income Taxes (1,138,990) 96,199 (2,848,274) 264,983
Current tax expense - (34,855) - (95,955)
Deferred tax benefit 432,817 - 747,257 -
Total tax benefit
(expense) 432,817 (34,855) 747,257 (95,955)
Net Investment Income (Loss) (706,173) 61,344 (2,101,017) 169,028
Realized and Unrealized Gain
on Investments
Net realized gain on
investments, before
deferred tax expense 13,712 - 13,712 -
Deferred tax expense (5,211) - (5,211) -
Net Realized Gain on
Investments 8,501 - 8,501 -
Net unrealized
appreciation of non-
affiliated investments 5,179,360 - 7,507,863 -
Net unrealized
appreciation of
affiliated investments 1,505,983 - 1,965,951 -
Net unrealized
appreciation of control
investments 40,435 - 173,954 -
Net unrealized
appreciation, before
deferred tax expense 6,725,778 - 9,647,768 -
Deferred tax expense (2,555,796) - (3,666,151) -
Net Unrealized
Appreciation of
Investments 4,169,982 - 5,981,617 -
Net Realized and Unrealized
Gain on Investments 4,178,483 - 5,990,118 -
Net Increase in Net Assets
Applicable to Common
Stockholders
Resulting from Operations $3,472,310 $61,344 $3,889,101 $169,028
Net Increase in Net Assets
Applicable to Common
Stockholders: Resulting
from Operations
Per Common Share
Basic $0.39 $0.02 $0.58 $0.05
Diluted $0.35 $0.02 $0.51 $0.05
Weighted Average Shares of
Common Stock Outstanding:
Basic 8,830,580 3,088,596 6,653,445 3,088,596
Diluted 9,785,726 3,088,596 7,587,209 3,088,596
(1) Commencement of Operations.
