N-Q 1 d52187dnq.htm BLACKROCK ENERGY & RESOURCES TRUST BlackRock Energy & Resources Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-21656

Name of Fund: BlackRock Energy and Resources Trust (BGR)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Energy and Resources Trust, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2015

Date of reporting period: 09/30/2015


Item 1 – Schedule of Investments


Schedule of Investments September 30, 2015 (Unaudited)      BlackRock Energy and Resources Trust (BGR)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Energy Equipment & Services — 6.9%

  

Halliburton Co. (a)

     146,900       $ 5,192,915   

Schlumberger Ltd. (a)

     360,824         24,886,031   
     

 

 

 
                30,078,946   

Oil, Gas & Consumable Fuels — 89.5%

     

Anadarko Petroleum Corp. (a)

     369,233         22,297,981   

BG Group PLC

     1,295,610         18,690,260   

BP PLC

     1,633,900         8,289,356   

Cabot Oil & Gas Corp. (b)

     381,400         8,337,404   

Cairn Energy PLC (c)

     2,521,300         5,355,221   

Carrizo Oil & Gas, Inc. (c)

     63,498         1,939,229   

Cimarex Energy Co.

     177,200         18,159,456   

ConocoPhillips (a)

     589,700         28,282,012   

Devon Energy Corp. (a)

     431,000         15,985,790   

Enbridge, Inc.

     526,300         19,541,525   

Encana Corp. (a)

     818,571         5,269,033   

Energen Corp. (a)

     73,922         3,685,751   

EOG Resources, Inc. (a)

     220,400         16,045,120   

EQT Corp. (a)

     125,300         8,115,681   

Exxon Mobil Corp. (a)(b)

     590,700         43,918,545   

Hess Corp. (a)

     302,700         15,153,162   

Kosmos Energy Ltd. (a)(c)

     728,107         4,062,837   

Laredo Petroleum, Inc. (a)(c)(d)

     631,731         5,957,223   

Marathon Oil Corp. (a)

     1,132,400         17,438,960   

Noble Energy, Inc. (a)

     303,192         9,150,334   

Oil Search Ltd.

     1,943,606         9,868,530   

Phillips 66 (a)

     180,300         13,854,252   

Pioneer Natural Resources Co. (a)

     132,300         16,092,972   

Range Resources Corp. (a)

     130,500         4,191,660   

Royal Dutch Shell PLC, A Shares — ADR

     911,400         43,191,246   

Southwestern Energy Co. (c)

     283,600         3,598,884   
Common Stocks    Shares      Value  

Oil, Gas & Consumable Fuels (continued)

  

Statoil ASA

     739,526       $ 10,781,617   

TOTAL SA

     384,600         17,300,506   
     

 

 

 
                394,554,547   

Total Long-Term Investments

(Cost — $553,829,680) — 96.4%

              424,633,493   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (e)(f)

     12,323,531         12,323,531   
      Beneficial
Interest
(000)
         

BlackRock Liquidity Series, LLC Money Market
Series, 0.26% (e)(f)(g)

   $ 1,759         1,758,783   

Total Short-Term Securities

(Cost — $14,082,314) — 3.2%

  

  

     14,082,314   

Total Investments Before Options Written

(Cost — $567,911,994*) — 99.6%

  

  

     438,715,807   
     
Options Written                

(Premiums Received — $3,514,369) — (0.4)%

  

     (1,689,852

Total Investments Net of Options Written — 99.2%

  

     437,025,955   

Other Assets Less Liabilities — 0.8%

  

     3,718,674   
     

 

 

 

Net Assets — 100.0%

  

   $ 440,744,629   
     

 

 

 
 
      Notes to Schedule of Investments

 

* As of period end, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 573,201,642   
  

 

 

 

Gross unrealized appreciation

   $ 8,157,267   

Gross unrealized depreciation

     (142,643,102
  

 

 

 

Net unrealized depreciation

   $ (134,485,835
  

 

 

 

 

(a) All or a portion of security has been pledged and/or segregated as collateral in connection with outstanding exchange-traded options written.

 

(b) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

(c) Non-income producing security.

 

(d) Security, or a portion of security, is on loan.

 

(e) Represents the current yield as of report date.

 

      Portfolio Abbreviations               
ADR    American Depositary Receipt      EUR    Euro    NOK    Norwegian Krone
AUD    Australian Dollar      GBP    British Pound    USD    U.S. Dollar
CAD    Canadian Dollar              

 

    

 

          SEPTEMBER 30, 2015    1


Schedule of Investments (continued)      BlackRock Energy and Resources Trust (BGR)   

 

(f) During the period ended September 30, 2015, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
December 31,
2014
    

Net

Activity

    Shares/
Beneficial Interest
Held at
September  30,
2015
     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     35,462,798         (23,139,267     12,323,531       $ 9,440   

BlackRock Liquidity Series, LLC Money Market Series

           $ 1,758,783      $ 1,758,783       $ 153,490 1 

 

  1   

Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

(g) Security was purchased with the cash collateral from loaned securities. The Trust may withdraw up to 25% of its investment daily, although the manager of the BlackRock Liquidity Series LLC, Money Market Series, in its sole discretion, may permit an investor to withdraw more than 25% on any one day.

 

 

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

      Derivative Financial Instruments Outstanding as of Period End

Exchange-Traded Options Written

 

Description    Put/
Call
       Expiration
Date
    

Strike

Price

       Contracts        Value  

Anadarko Petroleum Corp.

     Call         10/02/15        USD         73.50           413         $ (4,956

ConocoPhillips

     Call         10/02/15        USD         52.50           440           (1,760

Devon Energy Corp.

     Call         10/02/15        USD         42.50           500           (5,000

EOG Resources, Inc.

     Call         10/02/15        USD         81.00           200           (10,000

Exxon Mobil Corp.

     Call         10/02/15        USD         75.50           583           (8,162

Halliburton Co.

     Call         10/02/15        USD         41.50           257           (5,397

Hess Corp.

     Call         10/02/15        USD         56.00           150           (1,650

Marathon Oil Corp.

     Call         10/02/15        USD         18.50           300           (300

Phillips 66

     Call         10/02/15        USD         80.00           126           (2,520

ConocoPhillips

     Call         10/09/15        USD         52.00           440           (14,080

Exxon Mobil Corp.

     Call         10/09/15        USD         76.00           150           (5,700

Hess Corp.

     Call         10/09/15        USD         60.00           760           (9,880

Marathon Oil Corp.

     Call         10/09/15        USD         17.00           740           (7,770

Phillips 66

     Call         10/09/15        USD         83.50           150           (3,000

Pioneer Natural Resources Co.

     Call         10/09/15        USD         121.00           100           (38,000

Schlumberger Ltd.

     Call         10/09/15        USD         77.50           418           (8,360

Anadarko Petroleum Corp.

     Call         10/16/15        USD         77.50           413           (1,446

ConocoPhillips

     Call         10/16/15        USD         47.50           880           (124,520

Encana Corp.

     Call         10/16/15        CAD         11.00           1,000           (6,369

EOG Resources, Inc.

     Call         10/16/15        USD         80.00           99           (5,296

EQT Corp.

     Call         10/16/15        USD         80.00           150           (7,500

Exxon Mobil Corp.

     Call         10/16/15        USD         77.50           315           (9,293

Kosmos Energy Ltd.

     Call         10/16/15        USD         7.50           1,000           (10,000

Laredo Petroleum, Inc.

     Call         10/16/15        USD         10.00           1,000           (32,500

Laredo Petroleum, Inc.

     Call         10/16/15        USD         13.00           500           (10,000

Marathon Oil Corp.

     Call         10/16/15        USD         18.00           652           (4,564

Noble Energy, Inc.

     Call         10/16/15        USD         35.00           300           (3,750

Phillips 66

     Call         10/16/15        USD         80.00           200           (17,500

Range Resources Corp.

     Call         10/16/15        USD         45.00           100           (2,500

Anadarko Petroleum Corp.

     Call         10/23/15        USD         69.00           466           (12,582

EOG Resources, Inc.

     Call         10/23/15        USD         82.00           99           (4,802

Exxon Mobil Corp.

     Call         10/23/15        USD         74.00           560           (108,360

Exxon Mobil Corp.

     Call         10/23/15        USD         76.00           137           (12,878

Marathon Oil Corp.

     Call         10/23/15        USD         18.00           652           (8,476

Phillips 66

     Call         10/23/15        USD         81.00           153           (14,535

Pioneer Natural Resources Co.

     Call         10/23/15        USD         132.00           97           (15,763

Schlumberger Ltd.

     Call         10/23/15        USD         76.50           411           (11,919

Exxon Mobil Corp.

     Call         10/28/15        USD         74.00           387           (79,327

ConocoPhillips

     Call         10/30/15        USD         50.00           299           (24,668

Devon Energy Corp.

     Call         10/30/15        USD         45.00           510           (6,630

EOG Resources, Inc.

     Call         10/30/15        USD         75.00           376           (90,804

Laredo Petroleum, Inc.

     Call         10/30/15        USD         11.62           750           (12,087

 

 

    

 

2         SEPTEMBER 30, 2015     


Schedule of Investments (continued)      BlackRock Energy and Resources Trust (BGR)   

 

Description    Put/
Call
       Expiration
Date
    

Strike

Price

       Contracts        Value  

Marathon Oil Corp.

     Call         10/30/15        USD         18.00           652         $ (13,366

Hess Corp.

     Call         11/06/15        USD         54.00           150           (15,525

Pioneer Natural Resources Co.

     Call         11/06/15        USD         130.00           267           (89,445

Schlumberger Ltd.

     Call         11/06/15        USD         76.50           440           (18,920

Energen Corp.

     Call         11/20/15        USD         55.00           350           (52,500

Total

                          $ (954,360
                         

 

 

 

OTC Options Written

 

Description    Put/
Call
     Counterparty    Expiration
Date
  

Strike

Price

     Contracts      Value  

Cabot Oil & Gas Corp.

     Call       Goldman Sachs International    10/01/15      USD         27.79         35,000       $   

Cairn Energy PLC

     Call       Bank of America N.A.    10/01/15      GBP         1.64         150,000         (2

Oil Search Ltd.

     Call       UBS AG    10/01/15      AUD         6.71         201,000         (73,435

BG Group PLC

     Call       UBS AG    10/06/15      GBP         11.31         100,000         (126

Cairn Energy PLC

     Call       UBS AG    10/06/15      GBP         1.62         82,500         (55

TOTAL SA

     Call       Deutsche Bank AG    10/06/15      EUR         44.98         65,900         (18

BP PLC

     Call       Deutsche Bank AG    10/09/15      GBP         3.88         177,000         (979

Cimarex Energy Co.

     Call       Goldman Sachs International    10/12/15      USD         118.99         20,000         (999

Enbridge, Inc.

     Call       Deutsche Bank AG    10/13/15      CAD         53.75         55,000         (4,727

Cairn Energy PLC

     Call       UBS AG    10/14/15      GBP         1.62         82,500         (562

Statoil ASA

     Call       Bank of America N.A.    10/14/15      NOK         123.69         66,900         (28,102

Cabot Oil & Gas Corp.

     Call       Citibank N.A.    10/15/15      USD         25.78         63,000         (2,699

Royal Dutch Shell PLC, A Shares — ADR

     Call       Credit Suisse International    10/15/15      USD         56.93         90,000         (1

Cairn Energy PLC

     Call       Morgan Stanley & Co. International PLC    10/20/15      GBP         1.53         65,000         (2,271

BG Group PLC

     Call       Deutsche Bank AG    10/22/15      GBP         10.36         100,000         (14,975

BP PLC

     Call       Morgan Stanley & Co. International PLC    10/22/15      GBP         3.40         395,000         (54,681

Cimarex Energy Co.

     Call       Goldman Sachs International    10/26/15      USD         110.46         21,000         (31,163

Cairn Energy PLC

     Call       Bank of America N.A.    10/27/15      GBP         1.48         152,400         (10,538

Enbridge, Inc.

     Call       Deutsche Bank AG    10/27/15      CAD         54.14         78,000         (19,492

TOTAL SA

     Call       Deutsche Bank AG    10/27/15      EUR         43.57         48,000         (25,512

BG Group PLC

     Call       Bank of America N.A.    10/29/15      GBP         9.75         100,000         (57,599

Cabot Oil & Gas Corp.

     Call       Morgan Stanley & Co. International PLC    10/30/15      USD         24.99         40,000         (11,428

Cairn Energy PLC

     Call       UBS AG    10/30/15      GBP         1.44         22,000         (2,187

EQT Corp.

     Call       Credit Suisse International    10/30/15      USD         75.88         15,000         (5,786

Royal Dutch Shell PLC, A Shares — ADR

     Call       Deutsche Bank AG    11/03/15      USD         48.28         56,000         (73,036

Statoil ASA

     Call       Deutsche Bank AG    11/03/15      NOK         129.09         125,000         (39,729

Cairn Energy PLC

     Call       Bank of America N.A.    11/04/15      GBP         1.41         100,000         (11,870

Oil Search Ltd.

     Call       Morgan Stanley & Co. International PLC    11/04/15      AUD         8.09         192,000         (13,434

BG Group PLC

     Call       Bank of America N.A.    11/10/15      GBP         9.75         100,000         (68,136

Oil Search Ltd.

     Call       UBS AG    11/10/15      AUD         7.34         364,000         (97,240

TOTAL SA

     Call       Goldman Sachs International    11/12/15      EUR         41.77         21,000         (26,389

Cimarex Energy Co.

     Call       Goldman Sachs International    11/16/15      USD         110.46         21,000         (58,321

Total

                     $ (735,492
                    

 

 

 

 

      Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

   

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

 

   

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

   

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

 

  

 

    

 

          SEPTEMBER 30, 2015    3


Schedule of Investments (concluded)      BlackRock Energy and Resources Trust (BGR)   

 

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1    Level 2    Level 3    Total

Assets:

                 

Investments:

                 

Long-Term Investments:

                 

Common Stocks:

                 

Energy Equipment & Services

     $ 30,078,946                    $ 30,078,946  

Oil, Gas & Consumable Fuels

       324,269,057        $ 70,285,490             394,554,547  

Short-Term Securities

       12,323,531          1,758,783             14,082,314  
    

 

 

 

Total

     $ 366,671,534        $ 72,044,273           $ 438,715,807  
    

 

 

 
                 
      Level 1    Level 2    Level 3    Total

Derivative Financial Instruments1

                 

Liabilities:

                 

Equity contracts

     $ (862,944 )      $ (826,908 )         $ (1,689,852 )
    

 

 

 

 

1    Derivative financial instruments are options written, which are shown at value.

                 
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:    
                 
      Level 1    Level 2    Level 3    Total

Assets:

                 

Cash

     $ 91,098                    $ 91,098  

Foreign currency at value

       176,671                      176,671  

Liabilities:

                 

Collateral on securities loaned at value

              $ (1,758,783 )           (1,758,783 )

Total

     $ 267,769        $ (1,758,783 )         $ (1,491,014 )
    

 

 

 

During the period ended September 30, 2015, there were no transfers between levels.

 

    

 

4         SEPTEMBER 30, 2015     


Item 2 – Controls and Procedures

 

2(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

2(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Energy and Resources Trust

 

By:      

    /s/ John M. Perlowski

 
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of BlackRock Energy and Resources Trust
Date: November 23, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:      

    /s/ John M. Perlowski

 
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of BlackRock Energy and Resources Trust
Date: November 23, 2015
By:  

    /s/ Neal J. Andrews

 
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of BlackRock Energy and Resources Trust
Date: November 23, 2015