BlackRock Energy and Resources Trust (BGR)

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: 10/31/2012

Date of reporting period: 07/31/2012


Item 1 – Schedule of Investments


  

 

Schedule of Investments July 31, 2012 (Unaudited)

  

 

BlackRock Energy and Resources Trust (BGR)

(Percentages shown are based on Net Assets)

 

Common Stocks   Shares     Value  

Energy Equipment & Services – 16.6%

   

Cameron International Corp. (a)(b)(c)

    486,000      $ 24,431,220   

Core Laboratories NV (b)

    89,700        10,006,932   

National Oilwell Varco, Inc. (b)

    380,700        27,524,610   

Schlumberger Ltd. (b)

    235,900        16,810,234   

Superior Energy Services, Inc. (a)(b)(c)

    205,300        4,448,851   

Technip SA

    163,600        17,173,937   

Transocean Ltd. (b)

    301,200        14,105,196   

Weatherford International Ltd. (a)(b)

    606,300        7,305,915   
   

 

 

 
      121,806,895   

 

 

Metals & Mining – 3.2%

   

Goldcorp, Inc. (b)

    96,200        3,467,048   

Pan American Silver Corp. (b)

    177,100        2,645,874   

Prospect Global Resources, Inc. (a)

    2,884,615        6,634,616   

Silver Wheaton Corp. (b)

    377,000        10,382,580   
   

 

 

 
      23,130,118   

 

 

Oil, Gas & Consumable Fuels – 77.8%

   

Access Midstream Partners LP (b)

    270,600        7,847,400   

Alpha Natural Resources, Inc. (a)(b)(c)

    2,059,414        14,436,492   

AltaGas Ltd. (b)

    513,100        15,963,225   

Anadarko Petroleum Corp. (b)

    438,700        30,463,328   

Bonanza Creek Energy, Inc. (a)(b)

    670,000        11,745,100   

Cabot Oil & Gas Corp. (b)

    387,000        16,327,530   

Cheniere Energy, Inc. (a)(b)

    2,289,985        31,212,495   

Cimarex Energy Co. (b)

    148,200        8,401,458   

Concho Resources, Inc. (a)(b)

    69,800        5,950,450   

CONSOL Energy, Inc. (b)

    280,100        8,117,298   

Crescent Point Energy Corp. (b)

    336,400        13,370,797   

Crew Energy, Inc. (a)(b)

    1,709,192        11,793,996   

DCP Midstream Partners LP

    242,600        10,342,038   

Denbury Resources, Inc. (a)(b)

    754,500        11,408,040   

Energy XXI (Bermuda) Ltd. (b)

    455,700        14,208,726   

EQT Corp. (b)

    409,611        23,102,060   

Golar LNG Ltd.

    346,173        13,383,048   

Keyera Corp. (b)

    466,667        21,065,977   

Kodiak Oil & Gas Corp. (a)(b)(c)

    827,700        6,911,295   

Kosmos Energy Ltd. (a)(b)

    1,041,300        9,934,002   

Magnum Hunter Resources
Corp. (a)(b)(c)

    745,500        2,832,900   

MarkWest Energy Partners LP (b)

    375,589        19,744,714   

Noble Energy, Inc. (b)

    295,400        25,826,822   

NuVista Energy Ltd. (a)(b)

    589,300        2,656,066   

Occidental Petroleum Corp. (b)

    344,607        29,991,147   

ONEOK Partners LP (b)

    325,402        18,918,872   

Pembina Pipeline Corp.

    301,800        8,065,254   

Pioneer Natural Resources Co. (b)

    219,109        19,419,631   

Plains All American Pipeline LP (b)

    185,500        16,324,000   

Range Resources Corp.

    559,300        35,012,180   

Southwestern Energy Co. (a)(b)(c)

    299,965        9,973,836   

Targa Resources Partners LP (b)

    145,400        5,520,838   

Trilogy Energy Corp. (b)

    354,770        8,592,874   

Valero Energy Corp. (b)

    1,567,174        43,097,285   

Whiting Petroleum Corp. (a)(b)

    560,800        22,656,320   

 

Common Stocks   Shares     Value  

Oil, Gas & Consumable Fuels (concluded)

  

 

Williams Partners LP

    300,784      $ 16,335,579   
   

 

 

 
      570,953,073   

 

 

Total Common Stocks – 97.6%

      715,890,086   

 

 

    

   
   
Rights              

Oil, Gas & Consumable Fuels – 0.0%

  

 

Magnum Hunter Resources Corp., Expires 10/14/2013 (a)(c)

    70,300          

 

 

Total Long-Term Investments

   

(Cost – $674,438,342) – 97.6%

      715,890,086   

 

 

    

   
   
Short-Term Securities              

BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.15% (d)(f)

    28,831,251        28,831,251   

 

 
    

Beneficial

Interest

(000)

        

BlackRock Liquidity Series, LLC Money Market Series, 0.30% (d)(e)(f)

    $  13,640        13,640,239   

 

 

Total Short-Term Securities

   

(Cost – $42,471,490) – 5.8%

      42,471,490   

 

 

Total Investments Before Outstanding Options Written

   

(Cost – $716,909,832*) – 103.4%

      758,361,576   

 

 

    

   
   
Options Written   Contracts         

Exchange-Traded Call Options – (1.1)%

  

 

Access Midstream Partners LP, Strike Price
USD 30, Expires 9/24/12

    450        (22,500

Alpha Natural Resources, Inc., Strike Price USD 11, Expires 8/20/12

    1,000        (4,000

AltaGas Ltd., Strike Price CAD 30,
Expires 10/22/12

    1,700        (258,513

Anadarko Petroleum Corp.:

   

Strike Price USD 72.50,
Expires 8/20/12

    1,000        (115,000

Strike Price USD 72.50,
Expires 9/24/12

    450        (119,475

Bonanza Creek Energy, Inc.:

   

Strike Price USD 17.50,
Expires 8/20/12

    1,030        (79,825

Strike Price USD 20,
Expires 9/24/12

    450        (21,375

 

 

 

      Portfolio Abbreviations

 

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many securities have been abbreviated according to the following list:     CAD EUR     

Canadian Dollar

Euro

   USD       US Dollar

 

                 
        JULY 31, 2012    1


 

 

Schedule of Investments (continued)

 

 

BlackRock Energy and Resources Trust (BGR)

(Percentages shown are based on Net Assets)

 

 

Options Written   Contracts     Value  

Exchange-Traded Call Options (continued)

   

Cabot Oil & Gas Corp.:

   

Strike Price USD 39, Expires 8/20/12

    600        $  (228,000

Strike Price USD 44, Expires 9/24/12

    100        (21,750

Cameron International Corp.:

   

Strike Price USD 44, Expires 8/20/12

    650        (419,250

Strike Price USD 47, Expires 9/24/12

    450        (209,250

Strike Price USD 50, Expires 11/19/12

    500        (200,000

Cheniere Energy, Inc.:

   

Strike Price USD 16, Expires 8/20/12

    2,000        (40,000

Strike Price USD 17, Expires 8/20/12

    1,500        (11,250

Strike Price USD 15, Expires 9/24/12

    1,806        (139,965

Strike Price USD 16, Expires 9/24/12

    2,250        (112,500

Cimarex Energy Co.:

   

Strike Price USD 55, Expires 8/20/12

    115        (40,825

Strike Price USD 60, Expires 8/20/12

    200        (28,500

Strike Price USD 60, Expires 9/24/12

    175        (44,625

Concho Resources, Inc., Strike Price USD 85, Expires 9/24/12

    230        (120,750

CONSOL Energy, Inc., Strike Price USD 31, Expires 8/20/12

    580        (20,880

Core Laboratories NV:

   

Strike Price USD 120, Expires 8/20/12

    150        (4,875

Strike Price USD 110, Expires 9/24/12

    146        (86,870

Crescent Point Energy Corp.:

   

Strike Price CAD 40, Expires 8/20/12

    555        (31,822

Strike Price CAD 41, Expires 8/20/12

    555        (12,452

Crew Energy, Inc.:

   

Strike Price CAD 7.50, Expires 8/20/12

    1,000        (19,943

Strike Price CAD 7, Expires 9/24/12

    1,640        (106,297

Denbury Resources, Inc.:

   

Strike Price USD 15, Expires 8/20/12

    300        (22,500

Strike Price USD 16, Expires 9/24/12

    1,000        (65,000

Energy XXI (Bermuda) Ltd.:

   

Strike Price USD 32, Expires 8/20/12

    350        (41,125

Strike Price USD 35, Expires 9/24/12

    650        (58,500

EQT Corp., Strike Price USD 50,
Expires 8/20/12

    865        (588,200

Goldcorp, Inc.:

   

Strike Price USD 34, Expires 9/24/12

    160        (50,400

Strike Price USD 35, Expires 9/24/12

    160        (40,160

Keyera Corp.:

   

Strike Price CAD 44, Expires 8/20/12

    500        (67,308

Strike Price CAD 44, Expires 10/22/12

    500        (97,223

Kodiak Oil & Gas Corp.:

   

Strike Price USD 9, Expires 8/20/12

    1,167        (37,928

Strike Price USD 10, Expires 9/24/12

    400        (17,000

Kosmos Energy Ltd., Strike Price USD 12.50, Expires 8/20/12

    600        (9,000

Magnum Hunter Resources Corp.:

   

Strike Price USD 5, Expires 8/20/12

    500        (2,500

Strike Price USD 5, Expires 11/19/12

    400        (8,000

MarkWest Energy Partners LP:

   

Strike Price USD 50, Expires 8/20/12

    425        (76,500

Strike Price USD 52.50, Expires 8/20/12

    200        (16,500

Strike Price USD 55, Expires 9/24/12

    395        (20,737

National Oilwell Varco, Inc.:

   

Strike Price USD 70, Expires 8/20/12

    610        (210,450

Strike Price USD 70, Expires 9/24/12

    645        (312,825

Noble Energy, Inc., Strike Price USD 90,
Expires 8/20/12

    1,000        (105,000
Options Written   Contracts     Value  

Exchange-Traded Call Options (concluded)

  

 

NuVista Energy Ltd.:

   

Strike Price CAD 4, Expires 8/20/12

    500      $ (32,408

Strike Price CAD 5, Expires 9/24/12

    1,000        (42,379

Occidental Petroleum Corp.:

   

Strike Price USD 90, Expires 8/20/12

    230        (22,540

Strike Price USD 90, Expires 11/19/12

    500        (195,000

Strike Price USD 92.50, Expires 11/19/12

    500        (144,000

ONEOK Partners LP:

   

Strike Price USD 55, Expires 8/20/12

    389        (122,535

Strike Price USD 60, Expires 10/22/12

    700        (52,500

Pan American Silver Corp.:

   

Strike Price USD 21, Expires 8/20/12

    180        (900

Strike Price USD 15, Expires 9/24/12

    405        (43,538

Pioneer Natural Resources Co.:

   

Strike Price USD 100, Expires 8/20/12

    435        (26,100

Strike Price USD 95, Expires 9/24/12

    287        (100,450

Plains All American Pipeline LP:

   

Strike Price USD 87.50, Expires 9/24/12

    298        (43,955

Strike Price USD 82.50, Expires 11/19/12

    100        (53,000

Strike Price USD 87.50, Expires 11/19/12

    250        (55,000

Schlumberger Ltd.:

   

Strike Price USD 67.50, Expires 8/20/12

    285        (126,825

Strike Price USD 71, Expires 9/07/12

    500        (139,812

Silver Wheaton Corp.:

   

Strike Price USD 29, Expires 8/20/12

    200        (8,800

Strike Price USD 32, Expires 8/20/12

    200        (800

Strike Price USD 28, Expires 9/24/12

    900        (129,150

Southwestern Energy Co.:

   

Strike Price USD 31, Expires 8/20/12

    400        (110,600

Strike Price USD 33, Expires 9/24/12

    205        (43,152

Superior Energy Services, Inc., Strike Price USD 25, Expires 9/24/12

    680        (30,600

Targa Resources Partners LP, Strike Price USD 37, Expires 8/20/12

    440        (72,600

Transocean Ltd.:

   

Strike Price USD 50, Expires 8/20/12

    250        (14,000

Strike Price USD 52.50, Expires 11/19/12

    750        (112,500

Trilogy Energy Corp.:

   

Strike Price CAD 26, Expires 8/20/12

    585        (23,333

Strike Price CAD 23, Expires 9/24/12

    585        (140,001

Valero Energy Corp.:

   

Strike Price USD 23, Expires 8/20/12

    1,018        (460,645

Strike Price USD 24, Expires 8/20/12

    1,030        (365,650

Strike Price USD 25, Expires 8/20/12

    850        (222,275

Strike Price USD 26, Expires 9/24/12

    1,290        (285,735

Strike Price USD 27, Expires 9/24/12

    1,290        (208,980

Weatherford International Ltd.:

   

Strike Price USD 14, Expires 8/20/12

    500        (2,000

Strike Price USD 15, Expires 9/24/12

    1,500        (15,000

Whiting Petroleum Corp.:

   

Strike Price USD 40, Expires 8/20/12

    500        (92,500

Strike Price USD 42.50, Expires 8/20/12

    500        (40,000

Strike Price USD 42.50, Expires 9/24/12

    425        (76,500

Strike Price USD 45, Expires 9/24/12

    425        (42,500

 

 

Total Exchange-Traded Call Options

      (8,065,611

 

 
 

 

                 
2         JULY 31, 2012   


 

 

Schedule of Investments (continued)

 

 

BlackRock Energy and Resources Trust (BGR)

(Percentages shown are based on Net Assets)

 

Options Written   Contracts     Value  

Over-the-Counter Call Options – (0.4)%

   

Access Midstream Partners LP, Strike Price USD 27.78, Expires 9/10/12, Broker Citigroup Global Markets, Inc.

    50,000      $ (96,846

Bonanza Creek Energy, Inc.:

   

Strike Price USD 18, Expires 8/24/12, Broker Goldman Sachs & Co.

    50,000        (30,138

Strike Price USD 16.32, Expires 9/06/12, Broker Morgan Stanley & Co., Inc.

    40,000        (69,202

Cabot Oil & Gas Corp., Strike Price USD 34.16, Expires 8/06/12, Broker Morgan Stanley & Co., Inc.

    62,000        (497,860

CONSOL Energy, Inc., Strike Price USD 29.95, Expires 8/03/12, Broker Morgan Stanley & Co., Inc.

    40,000        (2,932

DCP Midstream Partners LP, Strike Price USD 41.55, Expires 8/24/12, Broker Deutsche Bank Securities Corp.

    25,000        (43,473

Energy XXI (Bermuda) Ltd., Strike Price USD 31.06, Expires 8/16/12, Broker Goldman Sachs & Co.

    50,000        (63,603

EQT Corp., Strike Price USD 57.07, Expires 9/14/12, Broker Goldman Sachs & Co.

    48,500        (88,077

Golar LNG Ltd.:

   

Strike Price USD 35.84, Expires 8/06/12, Broker Goldman Sachs & Co.

    57,000        (160,740

Strike Price USD 35.84, Expires 8/14/12, Broker Goldman Sachs & Co.

    57,000        (169,956

Keyera Corp., Strike Price CAD 42.93, Expires 8/24/12, Broker Morgan Stanley & Co., Inc.

    70,000        (181,005

Kodiak Oil & Gas Corp., Strike Price USD 8.64, Expires 8/09/12, Broker Deutsche Bank Securities Corp.

    116,500        (20,279

Kosmos Energy Ltd.:

   

Strike Price USD 10.50, Expires 8/24/12, Broker Banc of America Securities

    60,000        (4,275

Strike Price USD 11.20, Expires 8/30/12, Broker Goldman Sachs & Co.

    60,000        (4,990

Strike Price USD 9.99, Expires 9/28/12, Broker Deutsche Bank Securities Corp.

    60,000        (24,658

Magnum Hunter Resources Corp., Strike Price USD 4.05, Expires 8/01/12, Broker Banc of America Securities

    60,000        (127
Options Written   Contracts     Value  

Over-the-Counter Call Options (concluded)

   

MarkWest Energy Partners LP, Strike Price USD 55.04, Expires 9/07/12, Broker Banc of America Securities

    22,000      $ (8,160

ONEOK Partners LP, Strike Price USD 58.58, Expires 9/14/12, Broker Citigroup Global Markets, Inc.

    10,000        (8,596

Range Resources Corp., Strike Price USD 60, Expires 8/07/12, Broker Banc of America Securities

    196,000        (591,422

Southwestern Energy Co., Strike Price USD 29.84, Expires 8/10/12, Broker Deutsche Bank Securities Corp.

    38,500        (134,365

Technip SA:

   

Strike Price EUR 78.52, Expires 8/13/12, Broker UBS Securities LLC

    29,200        (256,863

Strike Price EUR 88.98, Expires 9/12/12, Broker Morgan Stanley & Co., Inc.

    24,800        (65,292

 

 

Total Over-the-Counter Call Options

      (2,522,859

 

 

Total Options Written

   

(Premiums Received – $7,274,000) – (1.5)%

  

    (10,588,470

 

 

Total Investments Net of Outstanding Options

  

 

Written – 101.9%

      747,773,106   

Liabilities in Excess of Other Assets – (1.9)%

  

    (14,139,871
   

 

 

 

Net Assets – 100.0%

    $ 733,633,235   
   

 

 

 

 

* As of July 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 721,301,338   
  

 

 

 

Gross unrealized appreciation

   $ 144,467,454   

Gross unrealized depreciation

     (107,407,216
  

 

 

 

Net unrealized appreciation

   $ 37,060,238   
  

 

 

 

 

(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)   Security, or a portion of security, is on loan.
(d)   Represents the current yield as of report date.
(e)   Security was purchased with the cash collateral from loaned securities.
 

 

(f) Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliate   

Shares/
Beneficial Interest
Held at
October 31,

2011

    

Net

Activity

    

Shares/
Beneficial Interest
Held at

July 31,

2012

     Realized
Gain
     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     14,873,138         13,958,113         28,831,251         $412         $26,886   

BlackRock Liquidity Series, LLC Money Market Series

     $60,660,178         $(47,019,939)         $13,640,239         –           $62,561   

 

                 
        JULY 31, 2012    3


 

 

Schedule of Investments (concluded)

 

 

BlackRock Energy and Resources Trust (BGR)

 

 

 

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 Trust management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

 

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:

 

   

Level 1 - unadjusted price quotations in active markets/exchanges for identical assets and liabilities

 

   

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)

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 and other significant accounting policies, 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, 2012:

 

       Level 1     Level 2     Level 3   Total  

Assets:

       

Investments:

       

Long-Term Investments:

       

Common Stocks:

       

Energy Equipment & Services

  $ 104,632,958      $ 17,173,937        $ 121,806,895   

Metals & Mining

    23,130,118                 23,130,118   

Oil, Gas & Consumable Fuels

    570,953,073                 570,953,073   

Rights

                      

Short-Term Securities

    28,831,251        13,640,239          42,471,490   

 

 

Total

  $ 727,547,400      $ 30,814,176        $ 758,361,576   
 

 

 

 

 

       Level 1     Level 2     Level 3   Total  

Derivative Financial Instruments1

       

Liabilities:

       

Equity contracts

  $ (7,925,800   $ (2,662,670     $ (10,588,470
 

 

 

 

 

1 

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

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of July 31, 2012, such assets and liabilities are categorized within the disclosure hierarchy as follows:

 

       Level 1     Level 2     Level 3   Total  

Assets:

       

Cash

  $ 116,151               $ 116,151   

Foreign currency

    1,934                 1,934   

Cash pledged as collateral for options written

    330,619                 330,619   

Liabilities:

       

Collateral on securities loaned at value

         $ (13,640,239       (13,640,239

 

 

Total

  $ 448,704      $ (13,640,239     $ (13,191,535
 

 

 

 

There were no transfers between levels during the period ended July 31, 2012.

 

 

                 
4         JULY 31, 2012   


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: September 25, 2012   

 

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, 2012   
By:   

/s/ Neal J. Andrews

  
   Neal J. Andrews   
   Chief Financial Officer (principal financial officer) of
   BlackRock Energy and Resources Trust
Date: September 25, 2012