An Energy Play for Dividend Investors: NGP Capital Resources

NGP Capital Resources Company (NGPC) is a Business Development Company (BDC) specializing in the energy sector. It provides financing to a variety of small energy companies -- primarily oil and gas producers, but also coal mining companies and energy infrastructure companies. Its assets consist primarily of debt instruments, of which a large proportion are secured. However, it also has royalty interests and equity interests which constitute roughly 15% of the fair value of its investment portfolio. Its cash holdings exceed its debt by roughly $46 million, so that it is not one of those BDCs that could be described as being under the shadow of "lender problems" or ratio issues.NGPC closed Monday at $9.85 per share, which represents a significant discount from its $11.01 a share book value... Read more