N-Q 1 d901711dnq.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: 03/31/2015

Item 1 – Schedule of Investments

Schedule of Investments March 31, 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)

      148,600       $ 6,520,568   

Helmerich & Payne, Inc. (a)

      190,500         12,967,335   

Schlumberger Ltd. (a)

      255,724         21,337,611   
     

 

 

  
                40,825,514   

Oil, Gas & Consumable Fuels — 90.8%

      

Anadarko Petroleum Corp. (a)

      364,133         30,153,854   

BG Group PLC

      437,510         5,369,859   

BP PLC

      4,372,300         28,341,841   

Cabot Oil & Gas Corp. (b)

      499,400         14,747,282   

Cairn Energy PLC (c)

      1,817,900         4,211,990   

Canadian Natural Resources Ltd. (a)

      198,200         6,074,868   

Chevron Corp. (a)(b)

      424,328         44,545,953   

Cimarex Energy Co. (a)

      112,200         12,913,098   

ConocoPhillips (a)

      586,500         36,515,490   

Devon Energy Corp. (a)

      354,500         21,379,895   

Enbridge, Inc. (a)

      452,300         21,801,678   

Encana Corp.

      1,554,900         17,359,193   

EOG Resources, Inc. (a)

      222,900         20,437,701   

Exxon Mobil Corp. (a)(b)

      775,800         65,943,000   

Kosmos Energy Ltd. (c)

      682,907         5,401,794   

Marathon Oil Corp. (a)

      846,000         22,089,060   

Murphy Oil Corp.

      177,000         8,248,200   

Noble Energy, Inc. (a)

      306,592         14,992,349   

Oil Search Ltd.

      2,187,363         11,934,703   

Phillips 66 (a)

      182,400         14,336,640   

Pioneer Natural Resources Co. (a)

      145,400         23,774,354   

Range Resources Corp. (a)

      230,700         12,005,628   
Common Stocks    Shares      Value  

Oil, Gas & Consumable Fuels (concluded)

      

Royal Dutch Shell PLC, A Shares — ADR (a)

      718,665       $ 42,868,367   

Southwestern Energy Co. (c)

      522,200         12,109,818   

Statoil ASA

      747,826         13,222,618   

Total SA

      546,900         27,184,657   
     

 

 

  
                537,963,890   

Total Long-Term Investments

(Cost — $635,166,785) — 97.7%

               578,789,404   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.06% (d)(e)

      15,864,815         15,864,815   

Total Short-Term Securities

(Cost — $15,864,815) — 2.7%

               15,864,815   

Total Investments Before Options Written

(Cost — $651,031,600*) — 100.4%

               594,654,219   
     
Options Written                

(Premiums Received — $2,913,982) — (0.3)%

               (2,036,731 ) 

Total Investments Net of Options Written — 100.1%

         592,617,488   

Liabilities in Excess of Other Assets — (0.1)%

         (380,468 ) 
     

 

 

  

Net Assets — 100.0%

       $ 592,237,020   
     

 

 

  
 

 

Notes to Schedule of Investments

 

* As of March 31, 2015, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

    $ 656,321,248   
  

 

 

  

Gross unrealized appreciation

    $ 29,581,222   

Gross unrealized depreciation

      (91,248,251 ) 
  

 

 

  

Net unrealized depreciation

    $ (61,667,029 ) 
  

 

 

  

 

(a) All or a portion of security has been pledged/segregated as collateral in connection with outstanding 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) Represents the current yield as of report date.

 

(e) During the period ended March 31, 2015, investments in issuers considered to be an affiliate 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 Held at
March 31, 2015		      Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

      35,462,798         (19,597,983 )      15,864,815       $ 3,825   

 

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

 

          MARCH 31, 2015    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  

As of March 31, 2015, exchange-traded options written as follows:

 

Description    Put/
Call		     

Strike

Price

      Expiration
Date		      Contracts     

Market

Value

  

ConocoPhillips

      Call         USD         70.00         4/02/15         565       $ (565 ) 

EOG Resources, Inc.

      Call         USD         95.00         4/02/15         380         (2,660 ) 

Exxon Mobil Corp.

      Call         USD         93.00         4/02/15         638         (1,276 ) 

Devon Energy Corp.

      Call         USD         62.50         4/10/15         465         (13,718 ) 

EOG Resources, Inc.

      Call         USD         92.50         4/10/15         301         (32,809 ) 

Phillips 66

      Call         USD         80.00         4/10/15         325         (25,188 ) 

Canadian Natural Resources Ltd.

      Call         CAD         40.00         4/17/15         460         (19,068 ) 

Cimarex Energy Co.

      Call         USD         110.00         4/17/15         200         (140,000 ) 

Cimarex Energy Co.

      Call         USD         115.25         4/17/15         202         (64,306 ) 

ConocoPhillips

      Call         USD         70.00         4/17/15         462         (1,617 ) 

Enbridge, Inc.

      Call         CAD         58.00         4/17/15         510         (146,974 ) 

Helmerich & Payne, Inc.

      Call         USD         75.00         4/17/15         170         (2,550 ) 

Marathon Oil Corp.

      Call         USD         27.00         4/17/15         740         (20,720 ) 

Noble Energy, Inc.

      Call         USD         50.00         4/17/15         350         (26,250 ) 

Pioneer Natural Resources Co.

      Call         USD         170.00         4/17/15         80         (15,000 ) 

Range Resources Corp.

      Call         USD         55.00         4/17/15         200         (14,500 ) 

Chevron Corp.

      Call         USD         108.00         4/24/15         370         (32,005 ) 

Chevron Corp.

      Call         USD         109.00         4/24/15         223         (13,157 ) 

Exxon Mobil Corp.

      Call         USD         86.50         4/24/15         327         (25,342 ) 

Exxon Mobil Corp.

      Call         USD         87.00         4/24/15         420         (25,620 ) 

Phillips 66

      Call         USD         80.50         4/24/15         313         (42,255 ) 

Pioneer Natural Resources Co.

      Call         USD         167.50         4/24/15         230         (93,150 ) 

Schlumberger Ltd.

      Call         USD         86.00         4/24/15         447         (42,465 ) 

Anadarko Petroleum Corp.

      Call         USD         86.00         5/01/15         635         (100,330 ) 

ConocoPhillips

      Call         USD         65.00         5/01/15         514         (42,148 ) 

Devon Energy Corp.

      Call         USD         63.50         5/01/15         388         (31,622 ) 

EOG Resources, Inc.

      Call         USD         95.00         5/01/15         100         (14,400 ) 

Halliburton Co.

      Call         USD         46.00         5/01/15         173         (9,861 ) 

Marathon Oil Corp.

      Call         USD         27.00         5/01/15         740         (39,960 ) 

Pioneer Natural Resources Co.

      Call         USD         165.00         5/01/15         200         (114,000 ) 

Canadian Natural Resources Ltd.

      Call         CAD         40.00         5/15/15         235         (24,677 ) 

Enbridge, Inc.

      Call         CAD         62.00         5/15/15         282         (33,843 ) 

Enbridge, Inc.

      Call         CAD         64.00         5/15/15         283         (17,317 ) 

Exxon Mobil Corp.

      Call         USD         87.50         5/15/15         420         (39,060 ) 

Helmerich & Payne, Inc.

      Call         USD         75.00         5/15/15         495         (44,550 ) 

Noble Energy, Inc.

      Call         USD         50.00         5/15/15         350         (60,375 ) 

Range Resources Corp.

      Call         USD         55.00         5/15/15         150         (27,750 ) 

Range Resources Corp.

      Call         USD         57.50         5/15/15         150         (17,250 ) 

Royal Dutch Shell PLC, A Shares — ADR

      Call         USD         65.00         5/15/15         1,250         (43,750 ) 

Schlumberger Ltd.

      Call         USD         87.50         5/15/15         447         (49,170 ) 

Total

                   $ (1,511,258 ) 
                 

 

 

  

 

Ÿ  

As of March 31, 2015, over-the-counter options written were as follows:

 

Description    Counterparty    Put/
Call		     

Strike

Price

      Expiration
Date		    Contracts      Market
Value		  

Enbridge, Inc.

    Deutsche Bank AG      Call         CAD         63.44       4/02/15      50,900       $ (67 ) 

Oil Search Ltd.

    Goldman Sachs International      Call         AUD         8.26       4/08/15      364,500         (28 ) 

Cairn Energy PLC

    UBS AG      Call         GBP         1.86       4/09/15      100,000         (96 ) 

Total SA

    Goldman Sachs International      Call         EUR         49.25       4/09/15      64,000         (1,156 ) 

BP PLC

    Goldman Sachs International      Call         GBP         4.67       4/14/15      417,000         (1,544 ) 

Statoil ASA

    Bank of America N.A.      Call         NOK         145.42       4/14/15      127,500         (51,487 ) 

BP PLC

    Goldman Sachs International      Call         GBP         4.37       4/29/15      511,300         (86,887 ) 

Cairn Energy PLC

    UBS AG      Call         GBP         1.86       4/29/15      100,000         (556 ) 

Total SA

    Goldman Sachs International      Call         EUR         45.92       4/29/15      60,000         (91,007 ) 

Cairn Energy PLC

    Goldman Sachs International      Call         GBP         1.56       4/30/15      100,000         (10,330 ) 

Noble Energy, Inc.

    Citibank N.A.      Call         USD         50.40       4/30/15      38,000         (37,501 ) 

Oil Search Ltd.

    Morgan Stanley & Co. International PLC      Call         AUD         7.94       5/06/15      200,000         (7,171 ) 

Total SA

    Goldman Sachs International      Call         EUR         46.81       5/06/15      67,400         (81,358 ) 

BG Group PLC

    Goldman Sachs International      Call         GBP         9.03       5/11/15      50,000         (7,497 ) 

 

2         MARCH 31, 2015     

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

 

As of March 31, 2015, over-the-counter options written were as follows: (concluded)

 

Description    Counterparty    Put/
Call		     

Strike

Price

      Expiration
Date		    Contracts      Market
Value		  

BP PLC

    Goldman Sachs International      Call         GBP         4.53       5/12/15      602,000       $ (31,124 ) 

Cairn Energy PLC

    Morgan Stanley & Co. International PLC      Call         GBP         1.66       5/12/15      67,000         (4,119 ) 

Statoil ASA

    Bank of America N.A.      Call         NOK         144.38       5/13/15      135,000         (72,210 ) 

Oil Search Ltd.

    UBS AG      Call         AUD         7.38       5/27/15      201,000         (41,335 ) 

Total

                      $ (525,473 ) 
                    

 

 

  

 

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. 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. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

 

  Ÿ  

Level 1 — unadjusted quoted prices 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)

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. 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 annual report.

As of March 31, 2015, 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

    $ 40,825,514        —      —    $ 40,825,514   

Oil, Gas & Consumable Fuels

      447,698,222      $ 90,265,668      —      537,963,890   

Short-Term Securities

      15,864,815        —      —      15,864,815   
  

 

 

  

Total

    $ 504,388,551      $ 90,265,668      —    $ 594,654,219   
  

 

 

  
         
      Level 1     Level 2     Level 3    Total  

Derivative Financial Instruments1

          

Liabilities:

          

Equity contracts

    $ (1,446,951 )    $ (589,780 )    —    $ (2,036,731 ) 
  

 

 

  

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

          

The Trust may hold assets in which the fair value approximates the carrying amount for financial reporting purposes. As of March 31, 2015, cash of $6,930 is categorized as Level 1 within the disclosure hierarchy.

During the period ended March 31, 2015, there were no transfers between levels.

 

          MARCH 31, 2015    3

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: May 22, 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: May 22, 2015
By:

    /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Energy and Resources Trust
Date: May 22, 2015