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BlackRock Energy & Resources Trust

Regulatory Filings May 23, 2017

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N-Q 1 d330815dnq.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

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

Date of fiscal year end: 12/31/2017

Date of reporting period: 03/31/2017

Item 1 – Schedule of Investments

Schedule of Investments March 31, 2017 (Unaudited)
(Percentages shown are based on Net Assets)
Common Stocks Value
Energy Equipment & Services — 12.6%
Baker Hughes, Inc. (a) 268,450 $ 16,058,679
Halliburton Co. (a) 312,600 15,383,046
Precision Drilling Corp. (a)(b) 738,330 3,492,195
Schlumberger Ltd. (a) 196,874 15,375,859
Superior Energy Services, Inc. (a)(b) 502,750 7,169,215
57,478,994
Oil, Gas & Consumable Fuels — 87.0%
Anadarko Petroleum Corp. (a) 296,483 18,381,946
BP PLC 5,030,000 28,953,206
Cabot Oil & Gas Corp. (a) 283,900 6,788,049
Cairn Energy PLC (b) 1,810,176 4,643,928
Chevron Corp. (a) 204,950 22,005,482
Cimarex Energy Co. (a) 105,100 12,558,399
ConocoPhillips (a) 488,950 24,383,938
Devon Energy Corp. (a) 295,400 12,324,088
Enbridge, Inc. (a) 217,250 9,101,022
Encana Corp. (a) 997,050 11,681,046
Eni SpA 533,450 8,734,359
EOG Resources, Inc. (a) 235,200 22,943,760
EQT Corp. 115,900 7,081,490
Exxon Mobil Corp. (a) 544,750 44,674,948
Hess Corp. (a) 240,400 11,589,684
Kosmos Energy Ltd. (a)(b) 749,357 4,990,718
Lundin Petroleum AB (b) 146,777 2,979,015
Marathon Oil Corp. (a) 706,300 11,159,540
Noble Energy, Inc. 287,292 9,865,607
Occidental Petroleum Corp. (a) 71,500 4,530,240
Oil Search Ltd. 1,754,013 9,670,670
Phillips 66 (a) 56,700 4,491,774
Common Stocks Value
Oil, Gas & Consumable Fuels (continued)
Pioneer Natural Resources Co. (a) 89,050 $ 16,583,782
Royal Dutch Shell PLC, A Shares 713,948 18,818,396
Royal Dutch Shell PLC, A Shares — ADR (a) 698,200 36,816,086
Tesoro Corp. (a) 82,050 6,650,973
TransCanada Corp. 324,450 14,972,739
Valero Energy Corp. (a) 156,200 10,354,498
397,729,383
Total Long-Term Investments (Cost — $440,904,144) — 99.6% 455,208,377
Short-Term Securities
BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.60% (c)(d) 4,464,036 4,464,036
Total Short-Term Securities (Cost — $4,464,036) — 1.0% 4,464,036
Total Investments Before Options Written (Cost — $445,368,180*) — 100.6% 459,672,413
Options Written
(Premiums Received — $2,965,125) — (0.6)% (2,702,279 )
Total Investments Net of Options Written — 100.0% 456,970,134
Other Assets Less Liabilities — 0.0% 211,062
Net Assets — 100.0% $ 457,181,196

Notes to Schedule of Investments

  • As of March 31, 2017, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:
Tax cost $
Gross unrealized appreciation $ 29,378,417
Gross unrealized depreciation (30,827,778 )
Net unrealized appreciation $ (1,449,361 )

(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) 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

MARCH 31, 2017 1

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

(d) During the period ended March 31, 2017, 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, T-Fund, Institutional Class 3,936,617 527,419 4,464,036 $4,464,036 $ 6,455 Net Realized Gain — — Change in Unrealized Appreciation (Depreciation) — —
SL Liquidity Series, LLC, Money Market Series — — — — 22,642 1 — —
Total $4,464,036 $29,097

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 Trust’s 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 Put/ Call Expiration Date Strike Price Contracts Value
Anadarko Petroleum Corp. Call 4/07/17 USD 67.00 272 $ (1,632 )
Baker Hughes, Inc. Call 4/07/17 USD 62.00 218 (3,270 )
Cabot Oil & Gas Corp. Call 4/07/17 USD 23.50 225 (15,750 )
ConocoPhillips Call 4/07/17 USD 48.50 333 (49,617 )
Devon Energy Corp. Call 4/07/17 USD 45.00 98 (294 )
EOG Resources, Inc. Call 4/07/17 USD 100.00 149 (4,470 )
Halliburton Co. Call 4/07/17 USD 52.50 305 (610 )
Hess Corp. Call 4/07/17 USD 55.50 93 (837 )
Marathon Oil Corp. Call 4/07/17 USD 16.50 70 (490 )
Royal Dutch Shell PLC, A Shares — ADR Call 4/07/17 USD 52.00 400 (29,000 )
Schlumberger Ltd. Call 4/07/17 USD 82.50 86 (258 )
Tesoro Corp. Call 4/07/17 USD 88.00 174 (1,044 )
Valero Energy Corp. Call 4/07/17 USD 67.00 132 (4,884 )
Marathon Oil Corp. Call 4/10/17 USD 17.50 321 (292 )
Cabot Oil & Gas Corp. Call 4/13/17 USD 24.00 548 (30,140 )
ConocoPhillips Call 4/13/17 USD 47.50 159 (39,670 )
Devon Energy Corp. Call 4/13/17 USD 45.00 102 (1,326 )
EOG Resources, Inc. Call 4/13/17 USD 98.00 43 (5,698 )
Exxon Mobil Corp. Call 4/13/17 USD 84.00 137 (2,055 )
Marathon Oil Corp. Call 4/13/17 USD 17.00 281 (1,967 )
Royal Dutch Shell PLC, A Shares — ADR Call 4/13/17 USD 52.50 228 (17,670 )
Schlumberger Ltd. Call 4/13/17 USD 82.50 136 (1,088 )
Tesoro Corp. Call 4/13/17 USD 84.50 113 (4,407 )
Valero Energy Corp. Call 4/13/17 USD 68.00 131 (4,323 )
Anadarko Petroleum Corp. Call 4/21/17 USD 65.00 176 (6,072 )
Baker Hughes, Inc. Call 4/21/17 USD 60.00 98 (10,535 )
Baker Hughes, Inc. Call 4/21/17 USD 65.00 307 (3,991 )
Chevron Corp. Call 4/21/17 USD 115.00 191 (860 )
Cimarex Energy Co. Call 4/21/17 USD 125.00 281 (23,182 )
Enbridge, Inc. Call 4/21/17 CAD 56.00 256 (10,973 )
EOG Resources, Inc. Call 4/21/17 USD 105.00 103 (1,545 )
Exxon Mobil Corp. Call 4/21/17 USD 85.00 183 (2,654 )
Kosmos Energy Ltd. Call 4/21/17 USD 7.50 500 (5,000 )
Phillips 66 Call 4/21/17 USD 80.00 98 (8,085 )
Pioneer Natural Resources Co. Call 4/21/17 USD 195.00 37 (4,902 )
Royal Dutch Shell PLC, A Shares — ADR Call 4/21/17 USD 55.00 200 (2,000 )
Schlumberger Ltd. Call 4/21/17 USD 81.00 135 (4,320 )
Superior Energy Services, Inc. Call 4/21/17 USD 17.50 237 (1,185 )
Valero Energy Corp. Call 4/21/17 USD 69.00 22 (693 )
Anadarko Petroleum Corp. Call 4/28/17 USD 64.00 208 (17,472 )
Baker Hughes, Inc. Call 4/28/17 USD 60.00 98 (13,279 )
Chevron Corp. Call 4/28/17 USD 113.00 46 (1,426 )
ConocoPhillips Call 4/28/17 USD 47.50 580 (165,300 )

2 MARCH 31, 2017

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

Description — Devon Energy Corp. Call 4/28/17 USD 42.00 55 Value — $ (6,572 )
Encana Corp. Call 4/28/17 CAD 16.50 159 (3,168 )
EOG Resources, Inc. Call 4/28/17 USD 98.50 85 (16,108 )
Exxon Mobil Corp. Call 4/28/17 USD 83.50 256 (19,712 )
Halliburton Co. Call 4/28/17 USD 51.50 305 (18,605 )
Hess Corp. Call 4/28/17 USD 49.00 255 (31,365 )
Marathon Oil Corp. Call 4/28/17 USD 17.00 233 (4,544 )
Occidental Petroleum Corp. Call 4/28/17 USD 66.00 100 (3,500 )
Pioneer Natural Resources Co. Call 4/28/17 USD 187.50 59 (27,140 )
Pioneer Natural Resources Co. Call 4/28/17 USD 192.50 118 (31,270 )
Schlumberger Ltd. Call 4/28/17 USD 82.00 69 (2,312 )
Valero Energy Corp. Call 4/28/17 USD 68.50 130 (11,440 )
Anadarko Petroleum Corp. Call 5/05/17 USD 64.00 208 (26,000 )
Baker Hughes, Inc. Call 5/05/17 USD 60.50 218 (28,122 )
Chevron Corp. Call 5/05/17 USD 111.00 196 (14,896 )
EOG Resources, Inc. Call 5/05/17 USD 96.50 257 (93,805 )
Exxon Mobil Corp. Call 5/05/17 USD 83.50 158 (14,457 )
Halliburton Co. Call 5/05/17 USD 50.50 226 (23,843 )
Marathon Oil Corp. Call 5/05/17 USD 17.50 268 (5,360 )
Schlumberger Ltd. Call 5/05/17 USD 80.00 23 (2,174 )
Chevron Corp. Call 5/12/17 USD 110.00 57 (6,982 )
ConocoPhillips Call 5/12/17 USD 51.00 370 (41,440 )
Devon Energy Corp. Call 5/12/17 USD 43.00 193 (24,704 )
EOG Resources, Inc. Call 5/12/17 USD 100.00 186 (44,175 )
Exxon Mobil Corp. Call 5/12/17 USD 84.50 107 (6,741 )
Halliburton Co. Call 5/12/17 USD 50.50 226 (27,346 )
Hess Corp. Call 5/12/17 USD 50.00 288 (38,592 )
Marathon Oil Corp. Call 5/12/17 USD 17.00 352 (13,024 )
Royal Dutch Shell PLC, A Shares — ADR Call 5/12/17 USD 54.00 100 (8,250 )
Schlumberger Ltd. Call 5/12/17 USD 80.00 104 (11,752 )
Anadarko Petroleum Corp. Call 5/19/17 USD 62.50 174 (39,585 )
Cabot Oil & Gas Corp. Call 5/19/17 USD 24.00 220 (26,950 )
ConocoPhillips Call 5/19/17 USD 47.00 269 (98,185 )
Devon Energy Corp. Call 5/19/17 USD 41.00 580 (136,010 )
Exxon Mobil Corp. Call 5/19/17 USD 85.00 383 (21,256 )
Halliburton Co. Call 5/19/17 USD 52.50 32 (2,176 )
Hess Corp. Call 5/19/17 USD 50.00 350 (50,225 )
Marathon Oil Corp. Call 5/19/17 USD 17.00 231 (9,356 )
Occidental Petroleum Corp. Call 5/19/17 USD 67.50 25 (1,125 )
Phillips 66 Call 5/19/17 USD 80.00 100 (16,250 )
Pioneer Natural Resources Co. Call 5/19/17 USD 195.00 60 (26,400 )
Precision Drilling Corp. Call 5/19/17 CAD 7.00 327 (3,074 )
Royal Dutch Shell PLC, A Shares — ADR Call 5/19/17 USD 53.85 1,415 (134,576 )
Schlumberger Ltd. Call 5/19/17 USD 82.50 136 (7,684 )
Exxon Mobil Corp. Call 6/16/17 USD 85.00 254 (23,238 )
Pioneer Natural Resources Co. Call 6/16/17 USD 190.00 37 (32,560 )
Total $ (1,740,315 )
OTC Options Written — Description Put/ Call Counterparty Expiration Date Strike Price Contracts Value
Enbridge, Inc. Call UBS AG 4/07/17 CAD 56.31 19,000 $ (2,461 )
BP PLC Call Citibank N.A. 4/11/17 GBP 4.65 290,500 (13,268 )
BP PLC Call Deutsche Bank AG 4/11/17 GBP 4.53 150,000 (18,729 )
Encana Corp. Call Citibank N.A. 4/11/17 CAD 17.22 53,000 (876 )
Royal Dutch Shell PLC, A Shares Call UBS AG 4/11/17 GBP 22.09 111,000 (565 )
TransCanada Corp. Call Deutsche Bank AG 4/11/17 CAD 62.06 24,000 (4,508 )
Noble Energy, Inc. Call Citibank N.A. 4/12/17 USD 38.54 16,000 (62 )
Encana Corp. Call Citibank N.A. 4/17/17 CAD 15.52 27,500 (10,522 )
Precision Drilling Corp. Call Deutsche Bank AG 4/17/17 CAD 6.35 45,000 (6,506 )
Precision Drilling Corp. Call UBS AG 4/17/17 CAD 6.34 50,000 (7,384 )
BP PLC Call Credit Suisse International 4/19/17 GBP 4.67 285,000 (16,711 )
Eni SpA Call UBS AG 4/19/17 EUR 14.99 87,000 (42,180 )
Lundin Petroleum AB Call Morgan Stanley & Co. International PLC 4/19/17 SEK 187.46 10,206 (1,990 )

MARCH 31, 2017 3

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

Description — TransCanada Corp. Call Counterparty — Credit Suisse International 4/19/17 CAD 61.63 43,000 Value — $ (19,945 )
EQT Corp. Call Morgan Stanley & Co. International PLC 4/26/17 USD 59.32 20,300 (56,641 )
BP PLC Call Deutsche Bank AG 4/27/17 GBP 4.56 285,000 (39,731 )
Encana Corp. Call UBS AG 4/27/17 CAD 15.01 65,000 (45,071 )
Kosmos Energy Ltd. Call Barclays Bank PLC 4/27/17 USD 6.03 50,000 (35,304 )
Lundin Petroleum AB Call Morgan Stanley & Co. International PLC 4/27/17 SEK 185.43 34,000 (14,656 )
Oil Search Ltd. Call Deutsche Bank AG 4/27/17 AUD 7.42 215,000 (17,046 )
Eni SpA Call Deutsche Bank AG 4/28/17 EUR 14.60 12,800 (10,330 )
Encana Corp. Call Citibank N.A. 5/02/17 CAD 14.84 139,700 (113,901 )
Lundin Petroleum AB Call Morgan Stanley & Co. International PLC 5/02/17 SEK 179.98 7,200 (5,541 )
TransCanada Corp. Call Citibank N.A. 5/02/17 CAD 62.26 22,500 (8,733 )
BP PLC Call Deutsche Bank AG 5/03/17 GBP 4.69 300,000 (31,357 )
EQT Corp. Call Morgan Stanley & Co. International PLC 5/03/17 USD 59.32 20,300 (64,313 )
Eni SpA Call Bank of America N.A. 5/09/17 EUR 14.78 87,000 (53,664 )
Oil Search Ltd. Call Deutsche Bank AG 5/09/17 AUD 7.16 190,000 (38,606 )
Superior Energy Services, Inc. Call Morgan Stanley & Co. International PLC 5/11/17 USD 14.65 27,700 (18,023 )
Superior Energy Services, Inc. Call Citibank N.A. 5/17/17 USD 14.51 31,050 (28,572 )
Enbridge, Inc. Call Morgan Stanley & Co. International PLC 5/18/17 CAD 56.42 32,000 (13,711 )
Superior Energy Services, Inc. Call UBS AG 5/22/17 USD 14.29 17,400 (18,407 )
TransCanada Corp. Call Deutsche Bank AG 5/23/17 CAD 61.93 12,000 (9,144 )
TransCanada Corp. Call UBS AG 5/23/17 CAD 63.36 12,000 (4,507 )
BP PLC Call Credit Suisse International 5/25/17 GBP 4.66 450,000 (53,295 )
Royal Dutch Shell PLC, A Shares Call Credit Suisse International 5/25/17 GBP 21.38 138,900 (45,164 )
Superior Energy Services, Inc. Call Citibank N.A. 5/31/17 USD 14.51 31,050 (33,050 )
Oil Search Ltd. Call Deutsche Bank AG 6/01/17 AUD 7.44 209,000 (36,259 )
Superior Energy Services, Inc. Call Morgan Stanley & Co. International PLC 6/14/17 USD 14.99 22,500 (21,231 )
Total $ (961,964 )

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. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

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 annual report.

4 MARCH 31, 2017

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

As of period end, 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 $ 57,478,994 — — $ 57,478,994
Oil, Gas & Consumable Fuels 323,929,809 $ 73,799,574 — 397,729,383
Short-Term Securities 4,464,036 — — 4,464,036
Total Investments $ 385,872,839 $ 73,799,574 — $ 459,672,413
Derivative Financial Instruments 1
Liabilities:
Equity contracts. $ (1,605,447 ) $ (1,096,832 ) — $ (2,702,279 )

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

During the period ended March 31, 2017, there were no transfers between levels.

MARCH 31, 2017 5

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 23, 2017
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 23, 2017
By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of BlackRock Energy and Resources Trust
Date: May 23, 2017

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