NGP Capital Resources Company (NASDAQ: NGPC) NGPC PROVIDING GROWTH CAPITAL FOR DIVERSE INDUSTRIES Investor Presentation June 2013
Agenda Company Overview Investment Criteria Financial Update Partnering with NGPC NGPC Page 3 NGP Capital Resources Company
Company Overview NGPC at a Glance Publicly traded, externally managed Business Development Company (BDC) Market capitalization - 135 million; 6.58/share [1] (Nasdaq: NGPC) Net Asset Value - 187 million; 9.13 per share [2] Current…
Company Overview Description and Brief History NGPC provides debt and equity capital to companies C o rp o rate P ro file within the energy sector as well as various sectors In c ep tion : 2004 within the broader middle market T ic…
Company Overview Why Invest in a BDC Business Development Companies (BDCs) were created by Congress in 1980 as lenders to small and mid-sized private companies Access to private equity / mezzanine markets with liquidity through a…
Company Overview BDC Growth Model Raise Equity Sources of Capital: Bank facilities Baby bonds Invest, Earn, Invest, Earn, Convertible debt Distribute Distribute SBIC debt Equity offering Leverage NGPC Page 7 NGP…
Company Overview Why Invest in NGPC Only BDC with energy industry focus ( 75% of the portfolio) 8+ year track record of energy investing Affiliation with NGP Energy Capital Management Recent addition of middle market non-energy…
Company Overview Peer Group / Other BDC Comps Company Market Cap Price / NAV(a) Current Dividend Yield (MMs) NGP Capital (NGPC) 136 73% 9.6% Gladstone Capital (GLAD) 179 99% 9.8% Gladstone Investment (GAIN) 192 83% 8.3% Hercules…
Company Overview Portfolio Growth and Turnover Rebuilding portfolio in wake of 2008 financial crisis Entered middle market in 2012 (closed first middle-market deals in 2013) to diversify the portfolio natural complement to NGPCs…
Company Overview Dividend History Annualized dividend yield ranges from 7.5% - 10.1% (1) from 2010 through 2013. 0.30 12.00% 10.10% 0.25 9.59% 9.71% 10.00% 8.96% 8.66% 8.88% 8.80% 8.41% 8.29% 7.96% 8.00% 7.57% 0.20 7.51%…
Company Overview NGPC Historical Performance Total Return (NAV plus distributions) 20 Total Return since Inception (1) = 19.03% Annualized Return since Inception (1) = 2.71% 18 16 3.02 0.66 1.58 4.63 14 5.27 5.96 7.25 7.57…
Company Overview NGPC Historical Stock Performance Total Return (Stock movements plus distributions) 12 Total Return since 1/1/10 (1) = 9.18% Annualized Return since 1/1/10 (1) = 2.48% 10 0.69 8 1.98 1.41 2.30 6 9.20…
Agenda Company Overview Investment Criteria Financial Update Partnering with NGPC NGPC Page 14 NGP Capital Resources Company
Investment Criteria Governance Structure Investment Committee Officers & Employees Ken Hersh (NGP ECM) Billy Quinn (NGP ECM) Steve Gardner Dick Covington (NGP ECM) Scott Biar Steve Gardner 13 Employees NGP Investment Adviser,…
Investment Criteria Investment Thesis NGPC offers investors the opportunity to participate in the energy and middle market sectors via a liquid investment with an efficient tax structure that provides yield and total return Risk…
Investment Criteria Key Metrics and Business Characteristics Debt and/or equity (equity in conjunction with debt) Structure Often a loan with equity kickers; high single-digit to low-teens coupon rate Small to mid-sized private…
Investment Criteria Key Metrics and Business Characteristics (continued) Business Focus on asset coverage and cash flow Characteristics Middle-market leverage off due diligence of equity sponsor and/or senior lenders Proven…
Investment Criteria Composition of Investment Portfolio at June 30, 2013 NGPCs Portfolio had a Fair Value of 209 million as of June 30, 2013 Sector Breakdown Structure Breakdown Medical Supplies Limited-Term Equity Kickers[1],…
Investment Criteria Capital for a Broad Range of Purposes Acquisitions & Buyouts Special Growth & Situations Development Our financings enable companies to develop their assets, accelerate their growth, Uses of and position…
Agenda Company Overview Investment Criteria Financial Update Partnering with NGPC NGPC Page 21 NGP Capital Resources Company
Financial Update Statement of Operations Q2 2013 vs. Q1 2013 (in 000s) Q2 Q1 Variance Investment income 9,613 5,803 3,810 Interest expense 998 815 (183) Management fees 1,830 1,367 (463) Other G&A 1,299 1,286 (13) Income taxes 22…
Financial Update Composition of Investment Portfolio at June 30, 2013 NGPC Portfolio Fair Value = 209 million at June 30, 2013 Investment Diversification Year Investment Initiated Kova, 4% Other, 1% Crossroads, 4% 2008, 7% 2009,…
Agenda Company Overview Investment Criteria Financial Update Partnering with NGPC NGPC Page 27 NGP Capital Resources Company
Partnering with NGPC Why Partner with NGPC Actively seeking to deploy permanent and established capital Long-term capital partner Depth of energy, engineering, and financial experience and expertise Customized financing solutions…
Partnering with NGPC Investment Team Contact Information Steve Gardner Office: (713) 425-7723 NGP Capital Resources Company Chief Executive Officer and President Email: SGardnerngpcrc.com www.ngpcrc.com Scott Biar Office: (713)…
Questions & Answers NGPC Page 30 NGP Capital Resources Company
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