Regulatory Filings • Nov 22, 2016
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Download Source FileN-Q 1 d260799dnq.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 52 nd Street, New York, NY 10055
Registrants telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 12/31/2016
Date of reporting period: 09/30/2016
Item 1 Schedule of Investments
| Schedule of Investments September 30, 2016 (Unaudited) |
|---|
| (Percentages shown are based on Net Assets) |
| Common Stocks | Value | |
|---|---|---|
| Energy Equipment & Services 8.9% | ||
| Baker Hughes, Inc. (a) | 359,800 | $ 18,159,106 |
| Halliburton Co. (a) | 80,150 | 3,597,132 |
| Schlumberger Ltd. (a) | 248,924 | 19,575,383 |
| 41,331,621 | ||
| Oil, Gas & Consumable Fuels 91.2% | ||
| Anadarko Petroleum Corp. (a) | 318,083 | 20,153,738 |
| BP PLC | 4,851,300 | 28,276,798 |
| Cabot Oil & Gas Corp. (a) | 285,200 | 7,358,160 |
| Cairn Energy PLC (b) | 1,818,476 | 4,429,679 |
| Chevron Corp. (a) | 235,500 | 24,237,660 |
| Cimarex Energy Co. (a) | 105,750 | 14,209,628 |
| ConocoPhillips (a) | 504,650 | 21,937,136 |
| Devon Energy Corp. (a) | 271,600 | 11,980,276 |
| Enbridge, Inc. (a) | 311,900 | 13,707,957 |
| Encana Corp. (a) | 1,054,950 | 11,024,326 |
| Eni SpA | 533,450 | 7,687,211 |
| EOG Resources, Inc. (a) | 244,700 | 23,664,937 |
| EQT Corp. (a) | 134,000 | 9,731,080 |
| Exxon Mobil Corp. (a)(c) | 558,000 | 48,702,240 |
| Hess Corp. (a) | 214,700 | 11,512,214 |
| Kosmos Energy Ltd. (b) | 676,807 | 4,338,333 |
| Lundin Petroleum AB (b) | 240,377 | 4,399,849 |
| Marathon Oil Corp. (a) | 725,900 | 11,476,479 |
| Noble Energy, Inc. (a) | 288,592 | 10,314,278 |
| Occidental Petroleum Corp. (a) | 281,200 | 20,505,104 |
| Oil Search Ltd. | 1,762,063 | 9,704,614 |
| Phillips 66 (a) | 96,850 | 7,801,268 |
| Pioneer Natural Resources Co. (a) | 95,700 | 17,766,705 |
| Common Stocks | Value | ||
|---|---|---|---|
| Oil, Gas & Consumable Fuels (continued) | |||
| Royal Dutch Shell PLC, A Shares | 717,198 | $ 17,842,292 | |
| Royal Dutch Shell PLC, A Shares ADR (a) | 689,800 | 34,538,286 | |
| Tesoro Corp. (a) | 46,850 | 3,727,386 | |
| TransCanada Corp. | 255,700 | 12,144,264 | |
| Valero Energy Corp. (a) | 164,250 | 8,705,250 | |
| 421,877,148 | |||
| Total Long-Term Investments (Cost $448,785,376) 100.1% | 463,208,769 | ||
| Short-Term Securities | |||
| BlackRock Liquidity Funds, T-Fund, Institutional | |||
| Class, 0.20% (d)(e) | 4,748,229 | 4,748,229 | |
| Total Short-Term Securities (Cost $4,748,229) 1.0% | 4,748,229 | ||
| Total Investments Before Options | |||
| Written (Cost $453,533,605*) 101.1% | 467,956,998 | ||
| Options Written | |||
| (Premiums Received $3,583,935) (1.1)% | (4,919,103 | ) | |
| Total Investments Net of Options Written 100.0% | 463,037,895 | ||
| Liabilities in Excess of Other Assets 0.0% | (195,714 | ) | |
| Net Assets 100.0% | $ 462,842,181 |
Notes to Schedule of Investments
| Tax cost | $ | |
|---|---|---|
| Gross unrealized appreciation | $ 37,200,875 | |
| Gross unrealized depreciation | (29,660,805 | ) |
| Net unrealized appreciation | $ 7,540,070 |
(a) All or a portion of security has been pledged and/or segregated as collateral in connection with outstanding exchange-traded options written.
(b) Non-income producing security.
(c) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.
(d) Current yield as of period end.
Portfolio Abbreviations
| ADR | American Depositary Receipt | EUR | Euro | SEK | Swedish Krona |
|---|---|---|---|---|---|
| AUD | Australian Dollar | GBP | British Pound | USD | U.S. Dollar |
| CAD | Canadian Dollar |
SEPTEMBER 30, 2016 1
Schedule of Investments (continued) BlackRock Energy and Resources Trust (BGR)
(e) During the period ended September 30, 2016, 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 — BlackRock Liquidity Funds, TempFund, Institutional Class | 5,394,590 | Net Activity — (5,394,590 | ) | | | Income — $ 28,452 | |
|---|---|---|---|---|---|---|---|
| BlackRock Liquidity Funds, T-Fund, Institutional Class | | 4,748,229 | 4,748,229 | $4,748,229 | 1,016 | ||
| BlackRock Liquidity Series, LLC Money Market Series | $ 944,554 | $ (944,554 | ) | | | 1,031 | 1 |
| Total | $4,748,229 | $ 30,499 |
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.
For Trust compliance purposes, the Trusts industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. 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 — Baker Hughes, Inc. | Call | Expiration Date — 10/07/16 | USD | 52.00 | 118 | Value — $ (3,245 | ) |
|---|---|---|---|---|---|---|---|
| Chevron Corp. | Call | 10/07/16 | USD | 104.00 | 162 | (7,452 | ) |
| ConocoPhillips | Call | 10/07/16 | USD | 45.00 | 195 | (3,315 | ) |
| Devon Energy Corp. | Call | 10/07/16 | USD | 45.00 | 191 | (10,028 | ) |
| EOG Resources, Inc. | Call | 10/07/16 | USD | 91.00 | 75 | (44,812 | ) |
| Exxon Mobil Corp. | Call | 10/07/16 | USD | 88.50 | 95 | (2,660 | ) |
| Marathon Oil Corp. | Call | 10/07/16 | USD | 17.00 | 575 | (3,738 | ) |
| Occidental Petroleum Corp. | Call | 10/07/16 | USD | 77.50 | 165 | (660 | ) |
| Phillips 66 | Call | 10/07/16 | USD | 81.50 | 98 | (4,900 | ) |
| Pioneer Natural Resources Co. | Call | 10/07/16 | USD | 190.00 | 82 | (10,660 | ) |
| Royal Dutch Shell PLC, A Shares ADR | Call | 10/07/16 | USD | 51.00 | 114 | (3,135 | ) |
| Tesoro Corp. | Call | 10/07/16 | USD | 77.00 | 53 | (16,086 | ) |
| Valero Energy Corp. | Call | 10/07/16 | USD | 56.50 | 96 | (432 | ) |
| Anadarko Petroleum Corp. | Call | 10/14/16 | USD | 55.00 | 43 | (36,228 | ) |
| Anadarko Petroleum Corp. | Call | 10/14/16 | USD | 61.50 | 173 | (49,132 | ) |
| Baker Hughes, Inc. | Call | 10/14/16 | USD | 51.50 | 157 | (10,833 | ) |
| Baker Hughes, Inc. | Call | 10/14/16 | USD | 52.00 | 238 | (12,495 | ) |
| Chevron Corp. | Call | 10/14/16 | USD | 104.00 | 146 | (12,264 | ) |
| ConocoPhillips | Call | 10/14/16 | USD | 44.50 | 252 | (11,718 | ) |
| Devon Energy Corp. | Call | 10/14/16 | USD | 41.00 | 113 | (38,985 | ) |
| Devon Energy Corp. | Call | 10/14/16 | USD | 43.00 | 114 | (22,344 | ) |
| Encana Corp. | Call | 10/14/16 | CAD | 12.50 | 175 | (17,941 | ) |
| EOG Resources, Inc. | Call | 10/14/16 | USD | 92.50 | 85 | (41,438 | ) |
| Exxon Mobil Corp. | Call | 10/14/16 | USD | 90.00 | 47 | (916 | ) |
| Hess Corp. | Call | 10/14/16 | USD | 55.50 | 110 | (8,525 | ) |
| Marathon Oil Corp. | Call | 10/14/16 | USD | 17.00 | 630 | (12,285 | ) |
| Occidental Petroleum Corp. | Call | 10/14/16 | USD | 78.00 | 221 | (2,210 | ) |
| Phillips 66 | Call | 10/14/16 | USD | 81.50 | 64 | (5,920 | ) |
| Pioneer Natural Resources Co. | Call | 10/14/16 | USD | 182.50 | 121 | (73,810 | ) |
| Royal Dutch Shell PLC, A Shares ADR | Call | 10/14/16 | USD | 51.00 | 114 | (5,985 | ) |
| Schlumberger Ltd. | Call | 10/14/16 | USD | 81.00 | 168 | (5,292 | ) |
| Valero Energy Corp. | Call | 10/14/16 | USD | 57.00 | 95 | (1,140 | ) |
| Anadarko Petroleum Corp. | Call | 10/21/16 | USD | 60.00 | 350 | (149,625 | ) |
| Baker Hughes, Inc. | Call | 10/21/16 | USD | 50.50 | 435 | (61,118 | ) |
| Cabot Oil & Gas Corp. | Call | 10/21/16 | USD | 27.00 | 300 | (10,500 | ) |
| Chevron Corp. | Call | 10/21/16 | USD | 105.00 | 147 | (11,392 | ) |
| Cimarex Energy Co. | Call | 10/21/16 | USD | 140.00 | 200 | (31,500 | ) |
| ConocoPhillips | Call | 10/21/16 | USD | 44.00 | 102 | (8,160 | ) |
| ConocoPhillips | Call | 10/21/16 | USD | 46.00 | 292 | (5,986 | ) |
| Devon Energy Corp. | Call | 10/21/16 | USD | 44.00 | 94 | (15,839 | ) |
| Encana Corp. | Call | 10/21/16 | CAD | 13.00 | 355 | (28,818 | ) |
| EOG Resources, Inc. | Call | 10/21/16 | USD | 90.00 | 159 | (118,058 | ) |
2 SEPTEMBER 30, 2016
Schedule of Investments (continued) BlackRock Energy and Resources Trust (BGR)
| Description — EQT Corp. | Call | 10/21/16 | USD | 75.00 | 235 | Value — $ (22,325 | ) |
|---|---|---|---|---|---|---|---|
| Exxon Mobil Corp. | Call | 10/21/16 | USD | 84.50 | 491 | (164,485 | ) |
| Hess Corp. | Call | 10/21/16 | USD | 62.50 | 195 | (9,750 | ) |
| Noble Energy, Inc. | Call | 10/21/16 | USD | 37.50 | 388 | (16,490 | ) |
| Royal Dutch Shell PLC, A Shares ADR | Call | 10/21/16 | USD | 52.50 | 800 | (21,995 | ) |
| Schlumberger Ltd. | Call | 10/21/16 | USD | 82.50 | 96 | (3,504 | ) |
| Tesoro Corp. | Call | 10/21/16 | USD | 85.00 | 60 | (3,510 | ) |
| Valero Energy Corp. | Call | 10/21/16 | USD | 57.00 | 96 | (2,112 | ) |
| Valero Energy Corp. | Call | 10/21/16 | USD | 57.50 | 191 | (3,247 | ) |
| Anadarko Petroleum Corp. | Call | 10/28/16 | USD | 65.00 | 272 | (47,192 | ) |
| Baker Hughes, Inc. | Call | 10/28/16 | USD | 50.00 | 157 | (32,813 | ) |
| ConocoPhillips | Call | 10/28/16 | USD | 42.00 | 250 | (56,250 | ) |
| Devon Energy Corp. | Call | 10/28/16 | USD | 44.50 | 150 | (25,500 | ) |
| EOG Resources, Inc. | Call | 10/28/16 | USD | 93.50 | 280 | (137,200 | ) |
| EOG Resources, Inc. | Call | 10/28/16 | USD | 94.50 | 56 | (23,660 | ) |
| Hess Corp. | Call | 10/28/16 | USD | 51.00 | 111 | (48,840 | ) |
| Hess Corp. | Call | 10/28/16 | USD | 54.00 | 19 | (4,132 | ) |
| Marathon Oil Corp. | Call | 10/28/16 | USD | 16.50 | 195 | (11,018 | ) |
| Occidental Petroleum Corp. | Call | 10/28/16 | USD | 73.00 | 256 | (49,280 | ) |
| Pioneer Natural Resources Co. | Call | 10/28/16 | USD | 182.50 | 126 | (100,800 | ) |
| Royal Dutch Shell PLC, A Shares ADR | Call | 10/28/16 | USD | 49.50 | 450 | (72,000 | ) |
| Schlumberger Ltd. | Call | 10/28/16 | USD | 81.50 | 202 | (15,756 | ) |
| Tesoro Corp. | Call | 10/28/16 | USD | 87.00 | 50 | (2,950 | ) |
| Baker Hughes, Inc. | Call | 11/04/16 | USD | 52.50 | 155 | (19,608 | ) |
| Chevron Corp. | Call | 11/04/16 | USD | 103.00 | 276 | (65,274 | ) |
| ConocoPhillips | Call | 11/04/16 | USD | 43.00 | 275 | (49,088 | ) |
| Devon Energy Corp. | Call | 11/04/16 | USD | 45.00 | 95 | (17,385 | ) |
| Devon Energy Corp. | Call | 11/04/16 | USD | 46.50 | 97 | (12,028 | ) |
| EOG Resources, Inc. | Call | 11/04/16 | USD | 100.00 | 117 | (24,746 | ) |
| Exxon Mobil Corp. | Call | 11/04/16 | USD | 87.00 | 453 | (93,771 | ) |
| Halliburton Co. | Call | 11/04/16 | USD | 44.50 | 280 | (51,800 | ) |
| Hess Corp. | Call | 11/04/16 | USD | 51.00 | 97 | (45,590 | ) |
| Hess Corp. | Call | 11/04/16 | USD | 51.50 | 86 | (37,625 | ) |
| Hess Corp. | Call | 11/04/16 | USD | 54.50 | 18 | (4,248 | ) |
| Marathon Oil Corp. | Call | 11/04/16 | USD | 15.00 | 472 | (70,564 | ) |
| Marathon Oil Corp. | Call | 11/04/16 | USD | 16.50 | 195 | (13,942 | ) |
| Occidental Petroleum Corp. | Call | 11/04/16 | USD | 73.50 | 192 | (35,808 | ) |
| Phillips 66 | Call | 11/04/16 | USD | 81.00 | 175 | (37,188 | ) |
| Royal Dutch Shell PLC, A Shares ADR | Call | 11/04/16 | USD | 48.00 | 900 | (294,750 | ) |
| Schlumberger Ltd. | Call | 11/04/16 | USD | 76.50 | 146 | (51,465 | ) |
| Valero Energy Corp. | Call | 11/04/16 | USD | 57.50 | 48 | (2,136 | ) |
| ConocoPhillips | Call | 11/11/16 | USD | 45.00 | 127 | (13,081 | ) |
| Devon Energy Corp. | Call | 11/11/16 | USD | 46.50 | 98 | (14,259 | ) |
| Exxon Mobil Corp. | Call | 11/11/16 | USD | 87.00 | 453 | (96,942 | ) |
| Hess Corp. | Call | 11/11/16 | USD | 57.00 | 18 | (2,961 | ) |
| Anadarko Petroleum Corp. | Call | 11/18/16 | USD | 65.00 | 275 | (72,738 | ) |
| Cabot Oil & Gas Corp. | Call | 11/18/16 | USD | 26.00 | 390 | (48,750 | ) |
| Chevron Corp. | Call | 11/18/16 | USD | 105.00 | 240 | (40,320 | ) |
| Cimarex Energy Co. | Call | 11/18/16 | USD | 135.00 | 26 | (16,900 | ) |
| ConocoPhillips | Call | 11/18/16 | USD | 43.00 | 275 | (58,025 | ) |
| Enbridge, Inc. | Call | 11/18/16 | CAD | 58.00 | 328 | (31,876 | ) |
| EOG Resources, Inc. | Call | 11/18/16 | USD | 95.00 | 85 | (44,200 | ) |
| Exxon Mobil Corp. | Call | 11/18/16 | USD | 87.50 | 414 | (81,144 | ) |
| Hess Corp. | Call | 11/18/16 | USD | 52.50 | 98 | (38,220 | ) |
| Marathon Oil Corp. | Call | 11/18/16 | USD | 15.00 | 472 | (77,880 | ) |
| Noble Energy, Inc. | Call | 11/18/16 | USD | 37.50 | 465 | (46,500 | ) |
| Schlumberger Ltd. | Call | 11/18/16 | USD | 80.00 | 259 | (49,340 | ) |
| Valero Energy Corp. | Call | 11/18/16 | USD | 57.50 | 48 | (3,192 | ) |
| Total | $ (3,459,733 | ) |
OTC Options Written
| Description — Enbridge, Inc. | Call | Counterparty — Citibank N.A. | Expiration Date — 10/03/16 | CAD | 55.38 | 38,000 | Value — $ (67,597 | ) |
|---|---|---|---|---|---|---|---|---|
SEPTEMBER 30, 2016 3
Schedule of Investments (continued) BlackRock Energy and Resources Trust (BGR)
| Description — Encana Corp. | Call | Counterparty — Citibank N.A. | 10/03/16 | CAD | 11.75 | 56,000 | Value — $ (83,721 | ) |
|---|---|---|---|---|---|---|---|---|
| BP PLC | Call | Credit Suisse International | 10/04/16 | GBP | 4.20 | 260,000 | (99,788 | ) |
| Eni SpA | Call | Credit Suisse International | 10/05/16 | EUR | 13.82 | 13,000 | (10 | ) |
| Cairn Energy PLC | Call | Deutsche Bank AG | 10/06/16 | GBP | 1.83 | 110,000 | (10,515 | ) |
| EQT Corp. | Call | UBS AG | 10/06/16 | USD | 70.60 | 23,500 | (56,814 | ) |
| Oil Search Ltd. | Call | UBS AG | 10/06/16 | AUD | 7.48 | 180,000 | (3,638 | ) |
| Royal Dutch Shell PLC, A Shares | Call | UBS AG | 10/06/16 | GBP | 19.51 | 111,000 | (15,281 | ) |
| Occidental Petroleum Corp. | Call | Citibank N.A. | 10/10/16 | USD | 78.49 | 15,000 | (245 | ) |
| BP PLC | Call | Citibank N.A. | 10/11/16 | GBP | 4.29 | 200,000 | (58,231 | ) |
| Cabot Oil & Gas Corp. | Call | Bank of America N.A. | 10/11/16 | USD | 24.70 | 27,000 | (36,519 | ) |
| Eni SpA | Call | Credit Suisse International | 10/11/16 | EUR | 13.90 | 87,000 | (3,272 | ) |
| TransCanada Corp. | Call | Deutsche Bank AG | 10/11/16 | CAD | 61.58 | 45,000 | (40,899 | ) |
| Cairn Energy PLC | Call | Deutsche Bank AG | 10/13/16 | GBP | 1.92 | 75,000 | (3,941 | ) |
| Lundin Petroleum AB | Call | Credit Suisse International | 10/13/16 | SEK | 155.22 | 40,000 | (16,892 | ) |
| Enbridge, Inc. | Call | Citibank N.A. | 10/17/16 | CAD | 55.38 | 38,000 | (85,247 | ) |
| Cairn Energy PLC | Call | Credit Suisse International | 10/20/16 | GBP | 1.83 | 110,000 | (14,393 | ) |
| Cimarex Energy Co. | Call | Credit Suisse International | 10/25/16 | USD | 133.01 | 5,800 | (29,758 | ) |
| Encana Corp. | Call | Deutsche Bank AG | 10/26/16 | CAD | 14.18 | 75,000 | (28,262 | ) |
| BP PLC | Call | Goldman Sachs International | 10/27/16 | GBP | 4.43 | 200,000 | (36,866 | ) |
| Cimarex Energy Co. | Call | Morgan Stanley & Co. International PLC | 10/28/16 | USD | 132.66 | 8,600 | (47,997 | ) |
| Encana Corp. | Call | Morgan Stanley & Co. International PLC | 11/01/16 | CAD | 12.80 | 71,500 | (77,868 | ) |
| TransCanada Corp. | Call | Morgan Stanley & Co. International PLC | 11/02/16 | CAD | 63.30 | 44,000 | (25,558 | ) |
| Cairn Energy PLC | Call | Morgan Stanley & Co. International PLC | 11/03/16 | GBP | 1.94 | 126,500 | (10,244 | ) |
| Oil Search Ltd. | Call | Morgan Stanley & Co. International PLC | 11/03/16 | AUD | 6.55 | 184,000 | (100,611 | ) |
| Encana Corp. | Call | Credit Suisse International | 11/04/16 | CAD | 12.80 | 21,000 | (23,473 | ) |
| Encana Corp. | Call | Morgan Stanley & Co. International PLC | 11/04/16 | CAD | 13.01 | 35,500 | (33,326 | ) |
| Noble Energy, Inc. | Call | Barclays Bank PLC | 11/08/16 | USD | 36.19 | 16,000 | (22,318 | ) |
| Royal Dutch Shell PLC, A Shares | Call | Bank of America N.A. | 11/08/16 | GBP | 19.48 | 140,000 | (80,002 | ) |
| BP PLC | Call | Goldman Sachs International | 11/10/16 | GBP | 4.43 | 202,000 | (34,591 | ) |
| BP PLC | Call | Morgan Stanley & Co. International PLC | 11/10/16 | GBP | 4.29 | 200,000 | (53,874 | ) |
| Eni SpA | Call | Bank of America N.A. | 11/10/16 | EUR | 12.94 | 87,000 | (35,700 | ) |
| Lundin Petroleum AB | Call | Credit Suisse International | 11/10/16 | SEK | 155.10 | 44,000 | (30,553 | ) |
| BP PLC | Call | UBS AG | 11/15/16 | GBP | 4.55 | 272,000 | (29,854 | ) |
| Cairn Energy PLC | Call | Morgan Stanley & Co. International PLC | 11/15/16 | GBP | 1.92 | 74,000 | (8,246 | ) |
| Oil Search Ltd. | Call | Goldman Sachs International | 11/15/16 | AUD | 7.14 | 250,000 | (45,806 | ) |
| Encana Corp. | Call | Citibank N.A. | 11/17/16 | CAD | 13.92 | 36,000 | (27,245 | ) |
| Encana Corp. | Call | Credit Suisse International | 11/17/16 | CAD | 12.80 | 21,000 | (25,944 | ) |
| BP PLC | Call | Goldman Sachs International | 11/29/16 | GBP | 4.48 | 202,000 | (35,516 | ) |
| Cairn Energy PLC | Call | Morgan Stanley & Co. International PLC | 11/29/16 | GBP | 1.92 | 74,000 | (9,614 | ) |
| Cairn Energy PLC | Call | Credit Suisse International | 12/07/16 | GBP | 1.93 | 67,000 | (9,141 | ) |
| Total | $ (1,459,370 | ) |
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 methodologies 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 Trusts 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. The significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments are typically categorized as Level 3.
4 SEPTEMBER 30, 2016
Schedule of Investments (concluded) BlackRock Energy and Resources Trust (BGR)
Changes in valuation methodologies may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trusts 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 Trusts policy regarding valuation of investments and derivative financial instruments, refer to the Trusts most recent financial statements as contained in its semi-annual report.
As of period end, the following tables summarize the Trusts investments and derivative financial instruments categorized in the disclosure hierarchy:
| Level 1 | Level 2 | Total | |||||
|---|---|---|---|---|---|---|---|
| Assets: | |||||||
| Investments: | |||||||
| Long-Term Investments: | |||||||
| Common Stocks: | |||||||
| Energy Equipment & Services | $ 41,331,621 | | | $ 41,331,621 | |||
| Oil, Gas & Consumable Fuels | 349,536,705 | $ 72,340,443 | | 421,877,148 | |||
| Short-Term Securities | 4,748,229 | | | 4,748,229 | |||
| Total | $ 395,616,555 | $ 72,340,443 | | $ 467,956,998 | |||
| Derivative Financial Instruments 1 | |||||||
| Liabilities: | |||||||
| Equity contracts | $ (3,459,733 | ) | $ (1,459,370 | ) | | $ (4,919,103 | ) |
| 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: | |||||||
| Foreign currency at value | $ 9,947 | | | $ 9,947 | |||
| Liabilities: | |||||||
| Bank overdraft | | $ (187,532 | ) | | (187,532 | ) | |
| Total | $ 9,947 | $ (187,532 | ) | | $ (177,585 | ) |
During the period ended September 30, 2016, there were no transfers between levels.
SEPTEMBER 30, 2016 5
Item 2 Controls and Procedures
| 2(a) | The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants 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 registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrants last fiscal quarter that have materially affected,
or are reasonably likely to materially affect, the registrants 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 22, 2016 | |
| 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 22, 2016 | |
| By: | /s/ Neal J. Andrews |
| Neal J. Andrews | |
| Chief Financial Officer (principal financial officer) of | |
| BlackRock Energy and Resources Trust | |
| Date: November 22, 2016 |
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