N-Q 1 d747290dnq.htm BLACKROCK ENERGY & RESOURCES TRUST <![CDATA[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: 10/31/2014

Date of reporting period: 07/31/2014

Item 1 – Schedule of Investments

Schedule of Investments July 31, 2014 (Unaudited)      BlackRock Energy and Resources Trust (BGR)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Energy Equipment & Services — 10.1%

      

Cameron International Corp. (a)(b)

      203,260       $ 14,413,167   

Halliburton Co. (b)

      446,900         30,831,631   

Schlumberger Ltd. (b)

      372,024         40,323,681   
     

 

 

  
                85,568,479   

Oil, Gas & Consumable Fuels — 86.9%

      

Anadarko Petroleum Corp. (b)

      371,833         39,730,356   

BG Group PLC

      826,110         16,290,327   

Cairn Energy PLC (a)

      1,856,000         5,507,768   

Canadian Natural Resources Ltd.

      497,000         21,664,979   

Canadian Oil Sands Ltd. (b)

      316,013         6,750,074   

Chevron Corp. (b)(c)

      664,828         85,922,371   

Cimarex Energy Co. (b)

      88,300         12,275,466   

ConocoPhillips (b)

      598,900         49,409,250   

CONSOL Energy, Inc. (b)

      218,021         8,463,575   

Devon Energy Corp. (b)

      313,000         23,631,500   

Enbridge, Inc. (b)

      223,800         10,970,890   

Encana Corp. (b)

      985,400         21,219,968   

EOG Resources, Inc. (b)

      227,600         24,908,544   

Exxon Mobil Corp. (b)(c)

      792,100         78,370,374   

Imperial Oil Ltd. (b)

      196,000         10,057,504   

Kosmos Energy Ltd. (a)

      881,407         8,487,950   

Murphy Oil Corp. (b)

      128,500         7,983,705   

Noble Energy, Inc. (b)

      313,092         20,817,487   

Oil Search Ltd.

      2,232,863         19,529,533   

Phillips 66 (b)

      186,300         15,110,793   

Pioneer Natural Resources Co. (b)

      109,500         24,249,870   

Range Resources Corp. (b)

      283,900         21,460,001   
Common Stocks    Shares      Value  

Oil, Gas & Consumable Fuels (concluded)

      

Royal Dutch Shell PLC — ADR (b)

      1,216,700       $ 99,562,561   

Southwestern Energy Co. (a)(b)

      533,200         21,637,256   

Statoil ASA

      763,526         21,817,433   

Total SA

      558,500         36,020,210   

TransCanada Corp. (b)

      445,000         22,324,483   
     

 

 

  
                734,174,228   

Total Long-Term Investments

(Cost — $690,027,038) — 97.0%

               819,742,707   
     
     
Short-Term Securities                

Blackrock Liquidity Funds, TempFund, Institutional Class, 0.03% (d)(e)

      31,063,246         31,063,246   

Total Short-Term Securities

(Cost — $31,063,246) — 3.7%

               31,063,246   

Total Investments Before Options Written

(Cost — $721,090,284) — 100.7%

               850,805,953   
     
     
Options Written                

(Premiums Received — $5,802,244) — (0.4)%

               (2,901,029 ) 

Total Investments Net of Options Written — 100.3%

         847,904,924   

Liabilities in Excess of Other Assets — (0.3)%

         (2,734,324 ) 
     

 

 

  

Net Assets — 100.0%

       $ 845,170,600   
     

 

 

  
 
Notes to Schedule of Investments

 

* As of July 31, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

    $ 736,209,570   
  

 

 

  

Gross unrealized appreciation

    $ 138,911,693   

Gross unrealized depreciation

      (24,315,310 ) 
  

 

 

  

Net unrealized appreciation

    $ 114,596,383   
  

 

 

  

 

(a) Non-income producing security.

 

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

 

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

 

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

 

(e) Investments in issuers considered to be an affiliate of the Trust during the period ended July 31, 2014, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares Held at
October 31, 2013		      Net
Activity		     Shares Held at
July 31, 2014		      Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

      60,810,523         (29,747,277 )      31,063,246       $ 12,845   

BlackRock Liquidity Series, LLC Money Market Series

      —         —        —       $ 16,642   

 

Portfolio Abbreviations               

ADR

    American Depositary Receipt    EUR    Euro    NOK    Norwegian Krone

AUD

    Australian Dollar    GBP    British Pound    USD    U.S. Dollar

CAD

    Canadian Dollar            

 

          JULY 31, 2014    1

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

 

 

Ÿ  

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.

 

Ÿ  

Exchange-traded options written as of July 31, 2014 were as follows:

 

Description    Put/
Call		     

Strike

Price

      Expiration
Date		      Contracts      Market
Value		  

Chevron Corp.

      Call         USD         133.00         8/01/14         87       $ (1,392 ) 

ConocoPhillips

      Call         USD         87.00         8/01/14         515         (2,575 ) 

Exxon Mobil Corp.

      Call         USD         103.00         8/01/14         617         (926 ) 

Chevron Corp.

      Call         USD         129.00         8/08/14         953         (166,299 ) 

ConocoPhillips

      Call         USD         87.00         8/08/14         515         (5,408 ) 

EOG Resources, Inc.

      Call         USD         119.00         8/08/14         253         (10,626 ) 

Exxon Mobil Corp.

      Call         USD         104.00         8/08/14         768         (4,608 ) 

Halliburton Co.

      Call         USD         71.50         8/08/14         553         (11,613 ) 

Pioneer Natural Resources Co.

      Call         USD         230.00         8/08/14         96         (23,520 ) 

Pioneer Natural Resources Co.

      Call         USD         235.00         8/08/14         96         (16,320 ) 

Schlumberger Ltd.

      Call         USD         118.00         8/08/14         649         (3,245 ) 

Murphy Oil Corp.

      Call         USD         65.00         8/11/14         225         (5,464 ) 

CONSOL Energy, Inc.

      Call         USD         47.25         8/16/14         382         (1 ) 

Southwestern Energy Co.

      Call         USD         47.75         8/16/14         212         (11 ) 

Anadarko Petroleum Corp.

      Call         USD         110.00         8/18/14         89         (13,394 ) 

Anadarko Petroleum Corp.

      Call         USD         115.00         8/18/14         89         (4,717 ) 

Cameron International Corp.

      Call         USD         67.50         8/18/14         712         (277,680 ) 

Canadian Oil Sands Ltd.

      Call         CAD         24.00         8/18/14         300         (3,027 ) 

Canadian Oil Sands Ltd.

      Call         CAD         25.00         8/18/14         465         (1,279 ) 

Chevron Corp.

      Call         USD         136.00         8/18/14         254         (4,826 ) 

ConocoPhillips

      Call         USD         85.00         8/18/14         220         (8,910 ) 

Devon Energy Corp.

      Call         USD         80.00         8/18/14         814         (34,188 ) 

Devon Energy Corp.

      Call         USD         81.00         8/18/14         281         (8,711 ) 

Enbridge, Inc.

      Call         CAD         53.00         8/18/14         525         (39,723 ) 

Encana Corp.

      Call         CAD         27.00         8/18/14         427         (1,566 ) 

Encana Corp.

      Call         CAD         28.00         8/18/14         433         (1,191 ) 

EOG Resources, Inc.

      Call         USD         120.00         8/18/14         300         (13,200 ) 

Exxon Mobil Corp.

      Call         USD         102.75         8/18/14         769         (22,059 ) 

Imperial Oil Ltd.

      Call         CAD         58.00         8/18/14         343         (4,404 ) 

Murphy Oil Corp.

      Call         USD         67.50         8/18/14         225         (4,500 ) 

Noble Energy, Inc.

      Call         USD         77.50         8/18/14         225         (2,250 ) 

Noble Energy, Inc.

      Call         USD         80.00         8/18/14         436         (2,180 ) 

Phillips 66

      Call         USD         87.50         8/18/14         326         (3,260 ) 

Pioneer Natural Resources Co.

      Call         USD         230.00         8/18/14         96         (34,080 ) 

Pioneer Natural Resources Co.

      Call         USD         235.00         8/18/14         96         (21,360 ) 

Range Resources Corp.

      Call         USD         80.00         8/18/14         167         (6,262 ) 

Royal Dutch Shell PLC — ADR

      Call         USD         82.50         8/18/14         592         (31,080 ) 

Schlumberger Ltd.

      Call         USD         120.00         8/18/14         75         (338 ) 

Southwestern Energy Co.

      Call         USD         46.00         8/18/14         79         (474 ) 

TransCanada Corp.

      Call         CAD         52.00         8/18/14         600         (154,904 ) 

Cimarex Energy Co.

      Call         USD         145.05         8/22/14         20         (5,260 ) 

ConocoPhillips

      Call         USD         85.00         8/22/14         426         (24,069 ) 

EOG Resources, Inc.

      Call         USD         119.00         8/22/14         271         (22,222 ) 

Schlumberger Ltd.

      Call         USD         118.00         8/22/14         75         (1,200 ) 

Anadarko Petroleum Corp.

      Call         USD         109.00         8/26/14         178         (46,268 ) 

Chevron Corp.

      Call         USD         131.00         8/29/14         778         (113,977 ) 

ConocoPhillips

      Call         USD         85.00         8/29/14         420         (29,610 ) 

Exxon Mobil Corp.

      Call         USD         105.00         8/29/14         309         (6,798 ) 

 

 

2         JULY 31, 2014     

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

 

 

Ÿ  

Exchange-traded options written as of July 31, 2014 were as follows: (concluded)

 

Description    Put/
Call		     

Strike

Price

      Expiration
Date		      Contracts      Market
Value		  

Chevron Corp.

      Call         USD         136.00         9/05/14         254       $ (12,700 ) 

Exxon Mobil Corp.

      Call         USD         105.00         9/05/14         309         (8,343 ) 

Halliburton Co.

      Call         USD         74.00         9/05/14         1,010         (38,380 ) 

Schlumberger Ltd.

      Call         USD         111.00         9/05/14         503         (83,498 ) 

Anadarko Petroleum Corp.

      Call         USD         108.75         9/12/14         473         (166,477 ) 

Phillips 66

      Call         USD         83.50         9/15/14         326         (44,466 ) 

Canadian Oil Sands Ltd.

      Call         CAD         25.00         9/22/14         300         (2,201 ) 

Encana Corp.

      Call         CAD         25.00         9/22/14         830         (22,456 ) 

Imperial Oil Ltd.

      Call         CAD         58.00         9/22/14         343         (17,931 ) 

Range Resources Corp.

      Call         USD         82.50         9/22/14         167         (14,612 ) 

Range Resources Corp.

      Call         USD         85.00         9/22/14         166         (9,130 ) 

Southwestern Energy Co.

      Call         USD         42.00         9/22/14         955         (96,455 ) 

Southwestern Energy Co.

      Call         USD         46.00         9/22/14         193         (4,343 ) 

TransCanada Corp.

      Call         CAD         55.50         9/22/14         947         (72,522 ) 

Anadarko Petroleum Corp.

      Call         USD         108.75         9/26/14         473         (198,231 ) 

Total

                   $ (1,992,720 ) 
                 

 

 

  

 

Ÿ  

Over-the-counter options written as of July 31, 2014 were as follows:

 

Description    Counterparty    Put/
Call		     

Strike

Price

      Expiration
Date		      Contracts      Market
Value		  

Cimarex Energy Co.

    Credit Suisse International      Call         USD         139.25         8/04/14         24,500       $ (23,654 ) 

Royal Dutch Shell PLC — ADR

    Citibank N.A.      Call         USD         81.13         8/04/14         118,300         (87,822 ) 

Canadian Natural Resources Ltd.

    Citibank N.A.      Call         CAD         47.72         8/05/14         34,800         (14,346 ) 

Total SA

    Morgan Stanley & Co. International PLC      Call         EUR         53.49         8/06/14         67,300         (14 ) 

Range Resources Corp.

    Citibank N.A.      Call         USD         90.00         8/11/14         24,200         —   

Enbridge, Inc.

    Citibank N.A.      Call         CAD         51.01         8/20/14         26,000         (58,302 ) 

Royal Dutch Shell PLC — ADR

    Citibank N.A.      Call         USD         81.75         8/20/14         94,500         (89,793 ) 

Cimarex Energy Co.

    Credit Suisse International      Call         USD         139.25         8/22/14         24,500         (104,771 ) 

Encana Corp.

    Goldman Sachs International      Call         CAD         25.85         8/25/14         64,000         (2,543 ) 

Range Resources Corp.

    Citibank N.A.      Call         USD         90.00         8/25/14         24,200         (147 ) 

BG Group PLC

    Deutsche Bank AG      Call         GBP         12.28         8/26/14         63,100         (14,001 ) 

Oil Search Ltd.

    Morgan Stanley & Co. International PLC      Call         AUD         9.68         8/26/14         195,000         (13,411 ) 

Statoil ASA

    Deutsche Bank AG      Call         NOK         190.82         8/26/14         155,000         (10,077 ) 

Total SA

    Goldman Sachs International      Call         EUR         53.91         8/26/14         64,000         (1,078 ) 

Canadian Natural Resources Ltd.

    Deutsche Bank AG      Call         CAD         49.00         8/27/14         75,000         (46,052 ) 

Oil Search Ltd.

    Morgan Stanley & Co. International PLC      Call         AUD         9.72         9/03/14         195,000         (15,157 ) 

Royal Dutch Shell PLC — ADR

    Citibank N.A.      Call         USD         81.75         9/03/14         94,500         (105,004 ) 

Statoil ASA

    Deutsche Bank AG      Call         NOK         191.66         9/03/14         110,000         (9,834 ) 

Total SA

    Deutsche Bank AG      Call         EUR         53.46         9/05/14         64,000         (4,354 ) 

Kosmos Energy Ltd.

    Citibank N.A.      Call         USD         11.08         9/08/14         95,600         (4,102 ) 

Noble Energy, Inc.

    Citibank N.A.      Call         USD         74.91         9/08/14         38,300         (6,424 ) 

BG Group PLC

    UBS AG      Call         GBP         12.27         9/09/14         226,000         (61,113 ) 

Royal Dutch Shell PLC — ADR

    Citibank N.A.      Call         USD         83.45         9/09/14         59,300         (32,472 ) 

Canadian Natural Resources Ltd.

    Citibank N.A.      Call         CAD         48.10         9/16/14         64,200         (68,706 ) 

Oil Search Ltd.

    Bank of America N.A.      Call         AUD         9.53         9/24/14         392,000         (70,285 ) 

Kosmos Energy Ltd.

    Citibank N.A.      Call         USD         10.36         9/29/14         59,000         (11,813 ) 

Noble Energy, Inc.

    Citibank N.A.      Call         USD         74.91         9/29/14         38,300         (15,564 ) 

Southwestern Energy Co.

    Deutsche Bank AG      Call         USD         43.75         10/03/14         43,000         (29,463 ) 

Kosmos Energy Ltd.

    Morgan Stanley & Co. International PLC      Call         USD         10.64         10/14/14         45,500         (8,007 ) 

Total

                      $ (908,309 ) 
                    

 

 

  

 

 

          JULY 31, 2014    3

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

 

Ÿ  

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

 

  Ÿ  

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

 

  Ÿ  

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)

 

  Ÿ  

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.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure 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 investment and derivative financial instrument 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, please 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 as of July 31, 2014:

 

      Level 1     Level 2     Level 3      Total  

Assets:

          

Investments:

          

Long-Term Investments:

          

Common Stocks:

          

Energy Equipment & Services

    $ 85,568,479        —        —       $ 85,568,479   

Oil, Gas & Consumable Fuels

      635,008,957      $ 99,165,271        —         734,174,228   

Short-Term Securities

      31,063,246        —        —         31,063,246   

Total

    $ 751,640,682      $ 99,165,271        —       $ 850,805,953   
  

 

 

  
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

          

Liabilities:

          

Equity contracts

    $ (1,504,484 )    $ (1,396,545 )      —       $ (2,901,029 ) 

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

       

The carrying amount for certain of the Trust’s assets approximates fair value for financial reporting purposes. As of July 31, 2014, such assets are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

          

Cash

    $ 6,930        —        —       $ 6,930   

Foreign currency at value

      198,980        —        —         198,980   

Total

    $ 205,910        —        —       $ 205,910   
  

 

 

  

There were no transfers between levels during the period ended July 31, 2014.

 

4         JULY 31, 2014     

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

 

2

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: September 25, 2014

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: September 25, 2014
By:     /s/ Neal J. Andrews
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Energy and Resources Trust
Date: September 25, 2014

 

3