----

**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION **

**Washington,      D.C. 20549 **

**FORM      10-Q **

**(Mark        One) **

| **x** | **QUARTERLY                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                  ACT OF                  1934** |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **For                  the quarterly period ended March 31,                  2007** |
|--------|-------------------------------------------------------------------------------------|

|   | **OR** |
|--------|--------|

| ** ̈** | **TRANSITION                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                  ACT OF                  1934** |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **For                  the transition period _______ to                  _______** |
|--------|------------------------------------------------------------------------------------|

**Commission        file number: 814-00672 **

----

**NGP      Capital Resources Company **

**(Exact      name of registrant as specified in its charter) **

----

|                                                                                                |                                                                         |
|-----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|
| **Maryland**                                                                                        | **20-1371499**                                                               |
| **(State                or other jurisdiction of****incorporation                or organization)** | **(I.R.S.                employer****identification                number)** |
|                                                                                                |                                                                         |
| **1221                McKinney Street, Suite 2975****Houston,                Texas**                | **77010**                                                                    |
| **(Address                of principal executive offices)**                                         | **(Zip                Code)**                                                |

**(713)      752-0062 **

**(Registrant’s      telephone number, including area code) **

----

| Large accelerated filer  ̈ | Accelerated              filer x | Non-accelerated filer  ̈ |
|--------------------------------|----------------------------------|------------------------------|

----

----

**PART      I - FINANCIAL INFORMATION**

**Item      1. Consolidated Financial Statements. **

**NGP      CAPITAL RESOURCES      COMPANY**

**CONSOLIDATED        BALANCE SHEETS**

**(unaudited)**

|                                                                                                                 |   | March                  31, 2007 |        | December                  31, 2006 |   |
|----------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-------------|------------------------------------|--------|
| Assets                                                                                                               |   |                            |        |                          |   |
|  Investments                  in portfolio securities at fair value                                             |   |                            |        |                          |   |
|  (cost:                  $230,137,339 and $170,863,203, respectively)                                           |   | $                               | 234,871,084 |                               | $      | 172,025,498 |   |
|  Investments                  in corporate notes at fair value                                                  |   |                            |        |                               |   |   |   |
|  (cost:                  $17,671,070 and $17,681,646, respectively)                                             |   |                            | 15,264,040  |                               |   | 15,116,080 |   |
|  Investments                  in U.S. Treasury Bills, at amortized cost                                         |   |                            |        |                               |   |   |   |
|  which                  approximates fair value                                                                 |   |                            | 103,950,558 |                               |   | 142,669,579 |   |
|  Total                  investments                                                                             |   |                            | 354,085,682 |                               |   | 329,811,157 |   |
|                                                                                                                 |   |                            |        |                               |   |   |   |
|  Cash                  and cash equivalents, at cost which                                                      |   |                            |        |                               |   |   |   |
|  approximates                  fair value                                                                       |   |                            | 2,367,150   |                               |   | 12,334,329 |   |
|  Accounts                  receivable                                                                           |   |                            | 32,713      |                               |   | 452,916 |   |
|  Interest                  receivable                                                                           |   |                            | 1,220,978   |                               |   | 1,400,757 |   |
|  Prepaid                  assets                                                                                |   |                            | 1,359,917   |                               |   | 1,598,501 |   |
|                                                                                                                 |   |                            |        |                               |   |   |   |
|  Total                  assets                                                                                  |   | $                               | 359,066,440 |                               | $      | 345,597,660 |   |
|                                                                                                                 |   |                            |        |                               |   |   |   |
| Liabilities                  and stockholders' equity (net assets)                                                   |   |                            |        |                               |   |   |   |
| Current                  liabilities                                                                                 |   |                            |        |                               |   |   |   |
|  Accounts                  payable                                                                              |   | $                               | 811,204     |                               | $      | 965,105 |   |
|  Management                  and incentive fees payable                                                         |   |                            | 1,564,509   |                               |   | 1,374,299 |   |
|  Dividends                  payable                                                                             |   |                            | 4,616,901   |                               |   | - |   |
|  Total                  current liabilities                                                                     |   |                            | 6,992,614   |                               |   | 2,339,404 |   |
|                                                                                                                 |   |                            |        |                               |   |   |   |
| Long-term                  debt                                                                                      |   |                            | 105,285,000 |                               |   | 100,000,000 |   |
|                                                                                                                 |   |                            |        |                               |   |   |   |
| Total                  liabilities                                                                                   |   |                            | 112,277,614 |                               |   | 102,339,404 |   |
|                                                                                                                 |   |                            |        |                               |   |   |   |
| Commitments                  and contingencies (Note 8)                                                              |   |                            |        |                               |   |   |   |
|                                                                                                                 |   |                            |        |                               |   |   |   |
| Stockholders’                  equity (net assets)                                                             |   |                            |        |                               |   |   |   |
|  Common                  stock, $.001 par value, 250,000,000 shares authorized; 17,422,268                  and |   |                            |        |                               |   |   |   |
|  17,422,268                  issued and 17,422,268 and 17,422,268 outstanding,                  respectively    |   |                            | 17,422      |                               |   | 17,422 |   |
|  Paid-in                  capital in excess of par                                                              |   |                            | 244,660,173 |                               |   | 244,660,173 |   |
|  Undistributed                  net investment income (loss)                                                    |   |                            | 30,375      |                               |   | 229,791 |   |
|  Undistributed                  net realized capital gain (loss)                                                |   |                            | (245,859    | )                                  |   | (245,859 | ) |
|  Net                  unrealized appreciation (depreciation) of                                                 |   |                            |        |                               |   |   |   |
|  portfolio                  securities and corporate notes                                                      |   |                            | 2,326,715   |                               |   | (1,403,271 | ) |
|                                                                                                                 |   |                            |        |                               |   |   |   |
|  Total                  stockholders’ equity (net assets)                                                 |   |                            | 246,788,826 |                               |   | 243,258,256 |   |
|                                                                                                                 |   |                            |        |                               |   |   |   |
| Total                  liabilities and stockholders' equity (net assets)                                             |   | $                               | 359,066,440 |                               | $      | 345,597,660 |   |
|                                                                                                                 |   |                            |        |                               |   |   |   |
| Net                  asset value per share                                                                           |   | $                               | 14.16       |                               | $      | 13.96 |   |

|  *(See                  accompanying notes to consolidated financial                  statements)* |
|---------------------------------------------------------------------------------------------------------|

----

|  **NGP                  CAPITAL RESOURCES COMPANY**   |
|------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF OPERATIONS** |
| **(unaudited)**                                            |

|                                                                              |   | For                  the Three Months |      | For                  the Three Months |   |
|-----------------------------------------------------------------------------------|--------|---------------------------------------|-----------|---------------------------------------|--------|
|                                                                              |   | ended                  March 31, 2007 |      | ended                  March 31, 2006 |   |
| Investment                  income                                                |   |                                  |      |                                  |   |
|  Interest                  income                                            |   | $                                     | 8,421,255 |                                  | $      | 4,858,504 |   |
|  Other                  income                                               |   |                                  | 55,507    |                                  |   | 137,549 |   |
|                                                                              |   |                                  |      |                                  |   |   |   |
|  Total                  operating income                                     |   |                                  | 8,476,762 |                                  |   | 4,996,053 |   |
|                                                                              |   |                                  |      |                                  |   |   |   |
| Operating                  expenses                                               |   |                                  |      |                                  |   |   |   |
|  Management                  fees                                            |   |                                  | 1,564,509 |                                  |   | 1,117,019 |   |
|  Professional                  fees                                          |   |                                  | 153,596   |                                  |   | 121,703 |   |
|  Insurance                  expense                                          |   |                                  | 132,423   |                                  |   | 144,354 |   |
|  Interest                  expense and fees                                  |   |                                  | 1,557,196 |                                  |   | 79,003 |   |
|  General                  and administrative expenses                        |   |                                  | 651,553   |                                  |   | 544,077 |   |
|                                                                              |   |                                  |      |                                  |   |   |   |
|  Total                  operating expenses                                   |   |                                  | 4,059,277 |                                  |   | 2,006,156 |   |
|                                                                              |   |                                  |      |                                  |   |   |   |
| Net                  investment income                                            |   |                                  | 4,417,485 |                                  |   | 2,989,897 |   |
|                                                                              |   |                                  |      |                                  |   |   |   |
| Net                  increase (decrease) in unrealized appreciation               |   |                                  |      |                                  |   |   |   |
|  (depreciation)                  on portfolio securities and corporate notes |   |                                  | 3,729,986 |                                  |   | (1,146,362 | ) |
|                                                                              |   |                                  |      |                                  |   |   |   |
| Net                  increase in stockholders' equity                             |   |                                  |      |                                  |   |   |   |
|  (net                  assets) resulting from operations                     |   | $                                     | 8,147,471 |                                  | $      | 1,843,535 |   |
|                                                                              |   |                                  |      |                                  |   |   |   |
| Net                  increase in stockholders' equity (net assets)                |   |                                  |      |                                  |   |   |   |
|  resulting                  from operations per common share                 |   | $                                     | 0.47      |                                  | $      | 0.10 |   |

| *(See                  accompanying notes to consolidated financial                  statements)* |
|---------------------------------------------------------------------------------------------------|

----

| **NGP                    CAPITAL RESOURCES COMPANY**                                                              |
|-------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                    STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (NET                    ASSETS)** |
| **(unaudited)**                                                                                                   |

|                                                                                                                  |   |  Common                    Stock |       | Paid-in                    Capitalin                    Excess |   | UndistributedNet                    Investment |   | UndistributedNet                    RealizedCapital                    Gain |        | Net                    UnrealizedAppreciation(Depreciation)of                    Portfolio Securitiesand                    Corporate |   | TotalStockholders'Equity |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|----------------------------------------------------------------|--------|------------------------------------------------|--------|-----------------------------------------------------------------------------|-------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                                                  |   | Shares                                |       | Amount                                                         |   | of                    Par                      |   | Income                    (Loss)                                            |        | (Loss)                                                                                                                                |   | Notes                    |   | (Net                    Assets) |   |
| Balance                    at December 31, 2006                                                                       |   |                                  | 17,422,268 |                                                           | $      | 17,422                                         |   | $                                                                           | 244,660,173 |                                                                                                                                  | $      | 229,791                  |   | $ | (245,859 | ) | $ | (1,403,271 | ) | $ | 243,258,256 |   |
| Net                      increase in stockholders' equity (net assets) resulting from                      operations |   |                                  | -          |                                                           |   | -                                              |   |                                                                        | -           |                                                                                                                                  |   | 4,417,485                |   |   | - |   |   | 3,729,986 |   |   | 8,147,471 |   |
| Dividends                    declared                                                                                 |   |                                  | -          |                                                           |   | -                                              |   |                                                                        | -           |                                                                                                                                  |   | (4,616,901               | )      |   | - |   |   | - |   |   | (4,616,901 | )  |
| Balance                    at March 31, 2007                                                                          |   |                                  | 17,422,268 |                                                           | $      | 17,422                                         |   | $                                                                           | 244,660,173 |                                                                                                                                  | $      | 30,375                   |   | $ | (245,859 | ) | $ | 2,326,715 |   | $ | 246,788,826 |   |

| *(See                  accompanying notes to consolidated financial                  statements)* |
|---------------------------------------------------------------------------------------------------|

----

| **NGP                  CAPITAL RESOURCES COMPANY**         |
|------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS** |
| **(unaudited)**                                            |

|                                                                                                                     |   | For                    the Three Months |        | For                    the Three Months |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|-------------|-----------------------------------------|--------|
|                                                                                                                     |   | ended                    March 31, 2007 |        | ended                    March 31, 2006 |   |
| Cash                    flows from operating activities                                                                  |   |                                    |        |                                    |   |
|  Net                    increase in stockholders' equity (net assets) resulting from                    operations  |   | $                                       | 8,147,471   |                                    | $      | 1,843,535 |   |
|  Adjustments                    to reconcile net increase in stockholders' equity (net                    assets)   |   |                                    |             |                                    |   |  |   |
|  resulting                    from operations to net cash used in operating activities                              |   |                                    |             |                                    |   |  |   |
|  Payment-in-kind                    interest                                                                        |   |                                    | (1,115,048  | )                                       |   | (23,781 | ) |
|  Net                    amortization of premiums, discounts and fees                                                |   |                                    | (381,727    | )                                       |   | (92,584 | ) |
|  Effects                    of changes in operating assets and liabilities                                          |   |                                    |             |                                    |   |  |   |
|  Accounts                    receivable                                                                             |   |                                    | 420,203     |                                    |   | 12,500 |   |
|  Interest                    receivable                                                                             |   |                                    | 179,779     |                                    |   | 25,337 |   |
|  Prepaid                    assets                                                                                  |   |                                    | 238,584     |                                    |   | 199,223 |   |
|  Accounts                    payable                                                                                |   |                                    | 36,309      |                                    |   | 896,711 |   |
| Unrealized                    appreciation (depreciation) on portfolio securities and corporate                    notes |   |                                    | (3,729,986  | )                                       |   | 1,146,362 |   |
|  Purchase                    of investments in portfolio securities                                                 |   |                                    | (58,354,311 | )                                       |   | (20,111,132 | ) |
|  Redemption                    of investments in portfolio securities                                               |   |                                    | 587,526     |                                    |   | 2,402 |   |
|  Net                    sale of investments in U.S. Treasury Bills                                                  |   |                                    | 38,719,021  |                                    |   | 13,269,118 |   |
|                                                                                                                     |   |                                    |             |                                    |   |  |   |
|  Net                    cash (used in) operating activities                                                         |   |                                    | (15,252,179 | )                                       |   | (2,832,309 | ) |
|                                                                                                                     |   |                                    |             |                                    |   |  |   |
| Cash                    flows from financing activities                                                                  |   |                                    |             |                                    |   |  |   |
|  Borrowings                    under revolving credit facility                                                      |   |                                    | 5,285,000   |                                    |   | - |   |
|  Dividends                    paid                                                                                  |   |                                    | -           |                                    |   | (4,785,028 | ) |
|                                                                                                                     |   |                                    |             |                                    |   |  |   |
|  Net                    cash provided by (used in) financing activities                                             |   |                                    | 5,285,000   |                                    |   | (4,785,028 | ) |
|                                                                                                                     |   |                                    |             |                                    |   |  |   |
| Net                    (decrease) in cash and cash equivalents                                                           |   |                                    | (9,967,179  | )                                       |   | (7,617,337 | ) |
| Cash                    and cash equivalents, beginning of the period                                                    |   |                                    | 12,334,329  |                                    |   | 13,350,588 |   |
|                                                                                                                     |   |                                    |             |                                    |   |  |   |
| Cash                    and cash equivalents, end of period                                                              |   | $                                       | 2,367,150   |                                    | $      | 5,733,251 |   |

|  *(See                  accompanying notes to consolidated financial                  statements)* |
|---------------------------------------------------------------------------------------------------------|

----

|  **NGP                  CAPITAL RESOURCES COMPANY**        |
|-----------------------------------------------------------------|
|  **CONSOLIDATED                  SCHEDULE OF INVESTMENTS** |

|  **March                  31, 2007** |
|-------------------------------------------|
|  **(unaudited)**                     |

| **Portfolio                  Company**              | **Investment                  (2) (4)**                          |   | **Principal** |   | **Cost**   |   |   | **Fair                  Value (3)** |   |
|-----------------------------------------------------|------------------------------------------------------------------|--------|---------------|--------|------------|--------|--------|-------------------------------------|--------|
| **TARGETED                  INVESTMENTS**           |                                                             |   |          |   |       |   |   |                                |   |
| Venoco,                  Inc. (1)                   | Senior                  Notes (7)                                | $      | 8,000,000     | $      | 7,962,383  |   | $      | 8,040,000                           |   |
|                                                | (8.75%,                  due 12/15/2011)                         |   |          |   |       |   |   |                                |   |
|                                                |                                                             |   |          |   |       |   |   |                                |   |
| Venoco,                  Inc. (1)                   | Senior                  Notes (7)                                |   | 4,000,000     |   | 3,937,641  |   |   | 4,020,000                           |   |
|                                                | (8.75%,                  due 12/15/2011)                         |   |          |   |       |   |   |                                |   |
|                                                |                                                             |   |          |   |       |   |   |                                |   |
| TierraMar                  Energy, LLC (1)          | Senior                  Secured                                  |   | 10,095,421    |   | 9,970,546  |   |   | 9,970,546                           |   |
|                                                | Multiple-Advance                  Term Loan                      |   |          |   |       |   |   |                                |   |
|                                                | (LIBOR                  + 6.00% cash, +7.50% PIK, due 5/13/2008) |   |          |   |       |   |   |                                |   |
|                                                | Overriding                  Royalty Interest (6)                 |   | 20,000        |   | 18,387     |   |   | 200,000                             |   |
|                                                | Warrants                  (5)                                    |   | 10,000        |   | 10,000     |   |   | 200,000                             |   |
|                                                |                                                             |   |          |   |       |   |   |                                |   |
| C-Gas,                  LLC (1)                     | Senior                  Secured                                  |   | 18,570,200    |   | 18,375,278 |   |   | 18,375,278                          |   |
|                                                | Multiple-Advance                  Term Loan                      |   |          |   |       |   |   |                                |   |
|                                                | (LIBOR                  + 5.50% cash, +7.50% PIK, due 4/25/2009) |   |          |   |       |   |   |                                |   |
|                                                | Overriding                  Royalty Interest (6)                 |   | 45,000        |   | 44,575     |   |   | 200,000                             |   |
|                                                |                                                             |   |          |   |       |   |   |                                |   |
|                                                | Senior                  Secured                                  |   | 4,300,000     |   | 4,300,000  |   |   | 4,300,000                           |   |
|                                                | Multiple-Advance                  Supplemental Term Loan         |   |          |   |       |   |   |                                |   |
|                                                | (LIBOR                  + 5.50% cash, +7.50% PIK, due 4/30/2007) |   |          |   |       |   |   |                                |   |
|                                                |                                                             |   |          |   |       |   |   |                                |   |
| Atchee                  CBM, LLC (1)                | Senior                  Secured                                  |   | 1,460,540     |   | 1,440,229  |   |   | 1,440,229                           |   |
|                                                | Multiple-Advance                  Term Loan                      |   |          |   |       |   |   |                                |   |
|                                                | (LIBOR                  + 5.50% cash, +7.50% PIK, due 4/25/2009) |   |          |   |       |   |   |                                |   |
|                                                | Overriding                  Royalty Interest (5)(6)              |   | 5,000         |   | 5,000      |   |   | 5,000                               |   |
|                                                |                                                             |   |          |   |       |   |   |                                |   |
|                                                | Senior                  Secured                                  |   | 713,036       |   | 713,036    |   |   | 713,036                             |   |
|                                                | Multiple-Advance                  Supplemental Term Loan         |   |          |   |       |   |   |                                |   |
|                                                | (LIBOR                  + 5.50% cash, +7.50% PIK, due 4/30/2007) |   |          |   |       |   |   |                                |   |
|                                                |                                                             |   |          |   |       |   |   |                                |   |
| Chroma                  Exploration &           | Tranche                  A - Senior Secured                      |   | 15,000,000    |   | 14,809,895 |   |   | 14,809,895                          |   |
|  Production,                  Inc. (1)         | Multiple-Advance                  Term Loan                      |   |          |   |       |   |   |                                |   |
|                                                | (LIBOR                  + 7.75% until Tranche B payoff, +6.00%   |   |          |   |       |   |   |                                |   |
|                                                | thereafter,                  due 9/20/2008)                      |   |          |   |       |   |   |                                |   |
|                                                | Overriding                  Royalty Interest (6)                 |   | 87,500        |   | 81,979     |   |   | 1,650,000                           |   |
|                                                |                                                             |   |          |   |       |   |   |                                |   |
|                                                | 8,628                  Shares Series A Participating             |   | -             |   | 2,157,000  |   |   | 2,157,000                           |   |
|                                                | Convertible                  Preferred Stock                     |   |          |   |       |   |   |                                |   |
|                                                | 8.11                  Shares Common Stock                        |   | -             |   | -          |   |   | -                                   |   |
|                                                |                                                             |   |          |   |       |   |   |                                |   |
|                                                | Tranche                  B - Senior Secured                      |   | 2,100,000     |   | 2,098,872  |   |   | 2,098,872                           |   |
|                                                | Multiple-Advance                  Term Loan                      |   |          |   |       |   |   |                                |   |
|                                                | (LIBOR                  + 7.75%, due 4/04/2007)                  |   |          |   |       |   |   |                                |   |
|                                                |                                                             |   |          |   |       |   |   |                                |   |
| Piceance                  Basin Properties, LLC (1) | Senior                  Secured                                  |   | 5,372,812     |   | 5,414,994  |   |   | 5,414,994                           |   |
|                                                | Multiple-Advance                  Term Loan                      |   |          |   |       |   |   |                                |   |
|                                                | (11.3868%,                  due 10/31/2010)                      |   |          |   |       |   |   |                                |   |
|                                                | LLC                  Units (19,900 units) (8)                    |   | -             |   | 40,876     |   |   | 30,631                              |   |
|                                                | Warrants                  (5)                                    |   | 25,000        |   | 25,000     |   |   | 25,000                              |   |

----

|  **NGP                  CAPITAL RESOURCES COMPANY**        |
|-----------------------------------------------------------------|
|  **CONSOLIDATED                  SCHEDULE OF INVESTMENTS** |
|  **March                  31, 2007**                       |
|  **(unaudited)**                                           |
|  (Continued)                                               |

| **Portfolio                  Company**            | **Investment                  (2) (4)**                            |   | **Principal** |   | **Cost**   |   |   | **Fair                  Value (3)** |   |
|---------------------------------------------------|--------------------------------------------------------------------|--------|---------------|--------|------------|--------|--------|-------------------------------------|--------|
| Resaca                  Exploitation, LP (1)      | Senior                  Secured                                    |   | 23,720,000    |   | 23,375,184 |   |   | 23,375,184                          |   |
|                                              | Multiple-Advance                  Tranche A Term Loan              |   |          |   |       |   |   |                                |   |
|                                              | (LIBOR                  + 6.00%, due 5/01/2012)                    |   |          |   |       |   |   |                                |   |
|                                              | Overriding                  Royalty Interest (6)                   |   | 30,000        |   | 30,000     |   |   | 125,000                             |   |
|                                              |                                                               |   |          |   |       |   |   |                                |   |
|                                              | Senior                  Secured Tranche B Term Loan                |   | 6,000,000     |   | 5,957,025  |   |   | 5,957,025                           |   |
|                                              | (LIBOR                  + 9.00%, due 8/01/2007)                    |   |          |   |       |   |   |                                |   |
|                                              | Overriding                  Royalty Interest (6)                   |   | 30,000        |   | 30,000     |   |   | 125,000                             |   |
|                                              |                                                               |   |          |   |       |   |   |                                |   |
|                                              | Senior                  Subordinated                               |   | 4,000,000     |   | 4,000,000  |   |   | 4,000,000                           |   |
|                                              | Secured                  Convertible Term Loan                     |   |          |   |       |   |   |                                |   |
|                                              | (6.00%                  cash, 8.00% PIK, due 5/01/2012)            |   |          |   |       |   |   |                                |   |
|                                              |                                                               |   |          |   |       |   |   |                                |   |
| Crossroads                  Energy, LP (1)        | Senior                  Secured                                    |   | 2,648,580     |   | 2,571,753  |   |   | 2,571,753                           |   |
|                                              | Multiple-Advance                  Term Loan                        |   |          |   |       |   |   |                                |   |
|                                              | (LIBOR                  + 5.50% cash, +7.50% PIK - until 12/29/07, |   |          |   |       |   |   |                                |   |
|                                              | cash                  only thereafter, due 6/29/2009)              |   |          |   |       |   |   |                                |   |
|                                              | Overriding                  Royalty Interest (6)                   |   | 10,000        |   | 9,926      |   |   | 70,000                              |   |
|                                              |                                                               |   |          |   |       |   |   |                                |   |
| Rubicon                  Energy Partners, LLC (8) | Senior                  Secured                                    |   | 33,597,349    |   | 33,152,493 |   |   | 33,152,493                          |   |
|                                              | Multiple-Advance                  Term Loan                        |   |          |   |       |   |   |                                |   |
|                                              | (LIBOR                  + 6.50%, due 7/26/2010)                    |   |          |   |       |   |   |                                |   |
|                                              | LLC                  Units (4,000 units )                          |   | -             |   | 4,000,000  |   |   | 6,000,000                           |   |
|                                              |                                                               |   |          |   |       |   |   |                                |   |
| BSR                  Alto, LLC (1)                | Senior                  Secured                                    |   | 2,445,129     |   | 2,325,845  |   |   | 2,325,845                           |   |
|                                              | Multiple-Advance                  Term Loan                        |   |          |   |       |   |   |                                |   |
|                                              | (LIBOR                  + 5.50% cash, +7.50% PIK - until 8/17/08,  |   |          |   |       |   |   |                                |   |
|                                              | cash                  only thereafter, due 8/17/2009)              |   |          |   |       |   |   |                                |   |
|                                              | Overriding                  Royalty Interest (6)                   |   | 30,000        |   | 29,722     |   |   | 75,000                              |   |
|                                              | Warrants                  (5)                                      |   | 10,000        |   | 10,000     |   |   | 100,000                             |   |
|                                              |                                                               |   |          |   |       |   |   |                                |   |
| BSR                  Loco Bayou, LLC (1)          | Senior                  Secured                                    |   | 3,523,760     |   | 3,360,390  |   |   | 3,360,390                           |   |
|                                              | Multiple-Advance                  Term Loan                        |   |          |   |       |   |   |                                |   |
|                                              | (LIBOR                  + 5.50% cash, +7.50% PIK - until 8/15/08,  |   |          |   |       |   |   |                                |   |
|                                              | cash                  only thereafter, due 8/15/2009)              |   |          |   |       |   |   |                                |   |
|                                              | Overriding                  Royalty Interest (5)(6)                |   | 20,000        |   | 20,000     |   |   | 20,000                              |   |
|                                              | Warrants                  (5)                                      |   | 10,000        |   | 10,000     |   |   | 10,000                              |   |
|                                              |                                                               |   |          |   |       |   |   |                                |   |
| Nighthawk                  Transport I, LP (1)    | Senior                  Secured                                    |   | 2,034,660     |   | 2,005,435  |   |   | 2,005,435                           |   |
|                                              | Term                  Loan A                                       |   |          |   |       |   |   |                                |   |
|                                              | (LIBOR                  + 3.50%, due 6/15/2010)                    |   |          |   |       |   |   |                                |   |
|                                              |                                                               |   |          |   |       |   |   |                                |   |
|                                              | Second                  Lien                                       |   | 3,487,715     |   | 3,416,487  |   |   | 3,416,487                           |   |
|                                              | Term                  Loan B                                       |   |          |   |       |   |   |                                |   |
|                                              | (LIBOR                  + 8.00%, due 6/15/2011)                    |   |          |   |       |   |   |                                |   |
|                                              |                                                               |   |          |   |       |   |   |                                |   |
|                                              | Second                  Lien                                       |   | 3,387,585     |   | 3,322,913  |   |   | 3,322,913                           |   |
|                                              | Delayed                  Draw Term Loan B                          |   |          |   |       |   |   |                                |   |
|                                              | (LIBOR                  + 8.00%, due 6/15/2011)                    |   |          |   |       |   |   |                                |   |
|                                              | Warrants                  (5)                                      |   | -             |   | 224        |   |   | 100,000                             |   |

----

|   **NGP                    CAPITAL RESOURCES COMPANY**  |
|-------------------------------------------------------------------|
|  **CONSOLIDATED                    SCHEDULE OF INVESTMENTS** |
|  **March                    31, 2007**                       |
| **(unaudited)**                                                   |
| (Continued)                                                       |

|  **Portfolio                    Company**                                  | **Investment                    (2) (4)**                              |   | **Principal** |            | **Cost**   |   |            | **Fair                    Value (3)** |   |
|---------------------------------------------------------------------------------|------------------------------------------------------------------------|--------|---------------|-----------------|------------|--------|-----------------|---------------------------------------|--------|
| Energy                    XXI Gulf Coast, Inc. (1)                              | Second                    Lien Term Loan                               |   | 14,000,000    |            | 14,000,000 |   |            | 14,000,000                            |   |
|                                                                            | (LIBOR                    + 5.50%, due 4/04/2010)                      |   |          |            |       |   |            |                                  |   |
|                                                                            |                                                                   |   |          |            |       |   |            |                                  |   |
| Sonoran                    Energy, Inc. (1)                                     | Senior                    Secured                                      |   | 6,943,853     |            | 6,756,727  |   |            | 6,756,727                             |   |
|                                                                            | Multiple-Advance                    Term Loan                          |   |          |            |       |   |            |                                  |   |
|                                                                            | (LIBOR                    + 6.00%, due 2/28/2008)                      |   |          |            |       |   |            |                                  |   |
|                                                                            | Overriding                    Royalty Interest (6)                     |   | 100,000       |            | 99,194     |   |            | 100,000                               |   |
|                                                                            | Warrants                    (5)                                        |   | 10,000        |            | 10,000     |   |            | 10,000                                |   |
|                                                                            |                                                                   |   |          |            |       |   |            |                                  |   |
| Alden                    Resources, LLC (1)                                     | Senior                    Secured                                      |   | 33,749,111    |            | 30,541,748 |   |            | 30,541,748                            |   |
|                                                                            | Multiple-Advance                    Term Loan                          |   |          |            |       |   |            |                                  |   |
|                                                                            | (LIBOR                    + 8.00% cash, +10.00% PIK - until 1/05/2008) |   |          |            |       |   |            |                                  |   |
|                                                                            | cash                    only thereafter, due 1/05/2013)                |   |          |            |       |   |            |                                  |   |
|                                                                            | Royalty                    Interest (6)                                |   | 2,660,000     |            | 2,656,979  |   |            | 2,660,000                             |   |
|                                                                            | Warrants                    (5)                                        |   | 100,000       |            | 100,000    |   |            | 100,000                               |   |
|                                                                            |                                                                   |   |          |            |       |   |            |                                  |   |
| Tammany                    Oil & Gas, LLC (1)                               | Senior                    Secured                                      |   | 17,235,796    |            | 16,739,603 |   |            | 16,739,603                            |   |
|                                                                            | Multiple-Advance                    Term Loan                          |   |          |            |       |   |            |                                  |   |
|                                                                            | (LIBOR                    + 6.00%, due 3/21/2010)                      |   |          |            |       |   |            |                                  |   |
|                                                                            | Overriding                    Royalty Interest (6)                     |   | 200,000       |            | 200,000    |   |            | 200,000                               |   |
|                                                                            |                                                                   |   |          |            |       |   |            |                                  |   |
| **Subtotal                  Targeted Investments (65.9% of total investments)** |                                                                   |   | **$**         | **230,137,339** |       | **$**  | **234,871,084** |                                  |

| **Issuing                    Company**                                                                       | **Investment                    (4)**                          |    | **Principal** |       | **Cost**   |        |                  | **Value**       |   |
|--------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|--------------|---------------|-----------------|------------|--------|------------------|-----------------|--------|
| **CORPORATE                      NOTES**                                                                     |                                                           |         |               |                 |            |   |             |                 |   |
| Pioneer                      Natural Resources Co.                                                           | Senior                    Notes, 7.2%, due 2028                | $            | 10,000,000    | $               | 11,663,432 |   | $                | 9,512,800       |   |
| XTO                    Energy, Inc.                                                                          | Senior                    Notes, 5.0%, due 2015                |         | 6,000,000     |            | 6,007,638  |   |             | 5,751,240       |   |
|                                                                                                              |                                                                |         |               |                 |       |   |             |            |   |
| **Subtotal                    Corporate Notes ( 4.28% of total investments)**                                |                                                           |         | **$**         | **17,671,070**  |       | **$**  | **15,264,040**   |            |
|                                                                                                         |                                                           |         |          |            |       |   |             |            |   |
| **GOVERNMENT                    SECURITIES**                                                                 |                                                           |         |          |            |            |   |             |                 |   |
| U.S.                    Treasury Bills                                                                       | U.S.                    Treasury Bills, 4.982%, due 05/24/2007 | $            | 8,907,000     | $               | 8,645,918  |   | $                | 8,645,918       |   |
| U.S.                    Treasury Bills                                                                       | U.S.                    Treasury Bills, 4.982%, due 05/24/2007 |         | 12,000,000    |            | 11,913,080 |   |             | 11,913,080      |   |
| U.S.                    Treasury Bills                                                                       | U.S.                    Treasury Bills, 4.982%, due 05/24/2007 |         | 12,000,000    |            | 11,913,080 |   |             | 11,913,080      |   |
| U.S.                    Treasury Bills                                                                       | U.S.                    Treasury Bills, 4.982%, due 05/24/2007 |         | 12,000,000    |            | 11,913,080 |   |             | 11,913,080      |   |
| U.S.                    Treasury Bills                                                                       | U.S.                    Treasury Bills, 4.982%, due 05/24/2007 |         | 12,000,000    |            | 11,913,080 |   |             | 11,913,080      |   |
| U.S.                    Treasury Bills                                                                       | U.S.                    Treasury Bills, 4.982%, due 05/24/2007 |         | 12,000,000    |            | 11,913,080 |   |             | 11,913,080      |   |
| U.S.                    Treasury Bills                                                                       | U.S.                    Treasury Bills, 4.982%, due 05/24/2007 |         | 12,000,000    |            | 11,913,080 |   |             | 11,913,080      |   |
| U.S.                    Treasury Bills                                                                       | U.S.                    Treasury Bills, 4.982%, due 05/24/2007 |         | 12,000,000    |            | 11,913,080 |   |             | 11,913,080      |   |
| U.S.                    Treasury Bills                                                                       | U.S.                    Treasury Bills, 4.982%, due 05/24/2007 |         | 12,000,000    |            | 11,913,080 |   |             | 11,913,080      |   |
|                                                                                                         |                                                           |         |          |            |       |   |             |            |
|  **Subtotal                    Government Securities (29.16% of total                    investments)** |                                                           |         | **$**         | **103,950,558** |       | **$**  | **103,950,558**  |            |
|                                                                                                         |                                                           |         |          |            |       |   |             |            |   |
| **CASH**                                                                                                     |                                                           |         |          |            |       |   |             |            |   |
|  **Subtotal                    Cash (0.66% of total investments)**                                      |                                                           |         | **$**         | **2,367,150**   |       | **$**  | **2,367,150**    |            |
|                                                                                                         |                                                           |         |          |            |       |   |             |            |
| **TOTAL                    INVESTMENTS, CASH AND CASH EQUIVALENTS**                                          |                                                           |         | **$**         | **354,126,117** |       | **$**  | **356,452,832**  |            |
|                                                                                                         |                                                           |         |          |            |       |   |             |            |
| **LIABILITIES                    IN EXCESS OF OTHER ASSETS**                                                 |                                                           |         |          |            |       | **$**  | **(109,664,006** | **)**           |
|                                                                                                         |                                                           |         |          |            |       |   |             |            |   |
| **NET                    ASSETS**                                                                            |                                                           |         |          |            |       |   | **$**            | **246,788,826** |   |

| (1 | ) | Portfolio                  company is not controlled by or affiliated with us as defined by                  the                  Investment Company Act of 1940.                                                      |
|----|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2 | ) | Percentages                  represent interest rates in effect at March 31, 2007, and due dates                  represent the contractual maturity dates.                                                            |
| (3 | ) | Fair                  value of targeted investments is determined by or under the direction                  of                  the Board of Directors.                                                               |
| (4 | ) | All                  investments are in entities with primary operations in the United                  States                  of America.                                                                            |
| (5 | ) | Non-income                  producing securities.                                                                                                                                                                      |
| (6 | ) | Securities                  are subject to restrictions as to their sale.                                                                                                                                              |
| (7 | ) | Upon                  the March 30, 2006 closing of Venoco, Inc.'s TexCal acquisition,                  Venoco                  Inc.'s senior notes became collateralized                    by second priority liens. |
| (8 | ) | Portfolio                  company is controlled by us as defined by the Investment Company                  Act of                  1940.                                                                             |

* (See        accompanying notes to consolidated financial statements)*

----

| **NGP                  CAPITAL RESOURCES COMPANY**     |
|--------------------------------------------------------|
| **CONSOLIDATED                  FINANCIAL HIGHLIGHTS** |
|  **(unaudited)**                                  |

|                                                                                              |   | For                  the Three Months   |    | For                  the Three Months |   |
|---------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|---------------------------------------|--------|
|                                                                                              |   | ended                    March 31, 2007 |    | ended                  March 31, 2006 |   |
| **Per                  Share Data**                                                               |   |                                    |    |                             |   |
|                                                                                              |   |                                    |    |                                  |   |
| Net                  asset value, beginning of period                                             |   | $                                       | 13.96   |                                  | $      | 14.02 |   |
|                                                                                              |   |                                    |    |                                  |   |   |   |
| Net                  investment income                                                            |   |                                    | 0.25    |                                  |   | 0.17 |   |
| Net                  realized and unrealized gain (loss) on portfolio                  securities |   |                                    |    |                                  |   |   |   |
|  and                  corporate notes                                                        |   |                                    | 0.22    |                                  |   | (0.07 | ) |
|                                                                                              |   |                                    |    |                                  |   |   |   |
| Net                  increase in stockholders' equity (net assets)                                |   |                                    |    |                                  |   |   |   |
|  resulting                  from operations                                                  |   |                                    | 0.47    |                                  |   | 0.10 |   |
|                                                                                              |   |                                    |    |                                  |   |   |   |
| Dividends                  declared                                                               |   |                                    | (0.27   | )                                     |   | (0.16 | ) |
|                                                                                              |   |                                    |    |                                  |   |   |   |
| Net                  asset value, end of period                                                   |   | $                                       | 14.16   |                                  | $      | 13.96 |   |
|                                                                                              |   |                                    |    |                                  |   |   |   |
| Market                  value, beginning of period                                                |   | $                                       | 16.75   |                                  | $      | 13.13 |   |
| Market                  value, end of period                                                      |   | $                                       | 15.81   |                                  | $      | 13.60 |   |
| Market                  value return (1)                                                          |   |                                    | -4.03   | %                                     |   | 4.85 | % |
| Net                  asset value return (1)                                                       |   |                                    | 3.13    | %                                     |   | 0.79 | % |
|                                                                                              |   |                                    |    |                                  |   |   |   |
| **Ratios                  and Supplemental Data**                                                 |   |                                    |    |                                  |   |   |   |
| ($                  and shares in thousands)                                                      |   |                                    |    |                                  |   |   |   |
|                                                                                              |   |                                    |    |                                  |   |   |   |
| Net                  assets, end of period                                                        |   | $                                       | 246,789 |                                  | $      | 242,958 |   |
| Average                  net assets                                                               |   |                                    | 245,024 |                                  |   | 243,428 |   |
| Common                  shares outstanding at end of period                                       |   |                                    | 17,422  |                                  |   | 17,400 |   |
| General                  and administrative expenses/average net assets (2) (3)                   |   |                                    | 4.13    | %                                     |   | 1.48 | % |
| Total                  operating expenses/average net assets (2)                                  |   |                                    | 6.72    | %                                     |   | 3.34 | % |
| Net                  investment income/average net assets (2)                                     |   |                                    | 7.31    | %                                     |   | 4.98 | % |
| Net                  increase in net assets resulting from                                        |   |                                    |    |                                  |   |   |   |
|  operations/average                  net assets (2)                                          |   |                                    | 13.49   | %                                     |   | 3.07 | % |
| Portfolio                  turnover rate                                                          |   |                                    | 0.24    | %                                     |   | 0.00 | % |

| (1)                  Return calculations assume reinvestment of dividends and are not                  annualized.                        |   |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| (2)                  Annualized.                                                                                                          |   |   |   |   |   |   |   |
| (3)                  Includes interest expense. Excluding interest expense results in                  a ratio                  of 1.55%. |   |   |   |   |   |   |   |

*(See          accompanying notes to consolidated financial statements)*

----

**NGP      CAPITAL RESOURCES COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS **

**March      31, 2007 **

**Note      1: Organization **

**Note      2: Significant Accounting Policies **

***Use      of Estimates***
** **

***Cash      and Cash Equivalents***

----

***Prepaid      Assets***

***Concentration      of Credit Risk***

***Valuation      of Investments***

*Debt      Securities:*
*pari      passu*
*pari      passu*

*Equity      Securities:*

*Property-Based      Equity Participation Rights:*

----

***Securities      Transactions, Interest and Dividend Income Recognition***

***Net      Realized Gains or Losses and Net Change in Unrealized Appreciation or      Depreciation***

***Fee      Income Recognition***

----

***Dividends***

|                                |   | Dividend                  History |   |                                |   |
|-------------------------------------|--------|-----------------------------------|--------|-------------------------------------|--------|
| Declaration                  Date   |   | * *Amount                    |   |                    Record Date |   |                    Payment Date |   |
| March                  18, 2005     |   | $                                 | 0.120  |                                |   | March                  31, 2005 |   |   | April                  15, 2005 |   |
| June                  17, 2005      |   | $                                 | 0.125  |                                |   | June                  30, 2005 |   |   | July                  15, 2005 |   |
| September                  19, 2005 |   | $                                 | 0.140  |                                |   | September                  30, 2005 |   |   | October                  14, 2005 |   |
| December                  15, 2005  |   | $                                 | 0.275  |                                |   | December                  27, 2005 |   |   | January                  4, 2006 |   |
| March                  10, 2006     |   | $                                 | 0.160  |                                |   | March                  31, 2006 |   |   | April                  17, 2006 |   |
| June                  14, 2006      |   | $                                 | 0.180  |                                |   | June                  30, 2006 |   |   | July                  14, 2006 |   |
| September                  14, 2006 |   | $                                 | 0.250  |                                |   | September                  29, 2006 |   |   | October                  13, 2006 |   |
| December                  7, 2006   |   | $                                 | 0.330  |                                |   | December                  19, 2006 |   |   | December                  29, 2006 |   |
| March                  19, 2007     |   | $                                 | 0.265  |                                |   | March                  30, 2007 |   |   | April                  13, 2007 |   |

----

|   **Dividend                  Reinvestment Plan Participation**                                                                                 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                      |   |   |   | **Percentage                  of** |   |    |   |   |   | **Common                  Stock Dividends** |   |
|                                                                                                                                                      |   | **Participating** |   | **Outstanding** |   |   **Total** |   |   |   | **Purchased                  in** |   |  **Newly                  Issued Shares** |   |
| **Dividend**                                                                                                                                              |   | **Shares** |   | **Shares** |   | **Distribution** |   | **Cash                  Dividends** |   | **Open                  Market** |   | **Amount** |   | **Shares** |   |
| March                  2005                                                                                                                               |   |   | **-** |   |   | 0.0 | % | $ | 2,088,012 |   | $ | 2,088,012 |   | $ | - |   | $ | - |   |   | - |   |
| June                  2005                                                                                                                                |   |   | 1,215,870 |   |   | 7.0 | % | $ | 2,175,013 |   | $ | 2,023,029 |   | $ | 151,984 |   | $ | - |   |   | - |   |
| September                  2005                                                                                                                           |   |   | 1,488,904 |   |   | 8.6 | % | $ | 2,436,014 |   | $ | 2,227,567 |   | $ | 208,447 |   | $ | - |   |   | - |   |
| December                  2005                                                                                                                            |   |   | 1,660,140 |   |   | 9.5 | % | $ | 4,785,028 |   | $ | 4,328,488 |   | $ | 456,540 |   | $ | - |   |   | - |   |
| March                  2006                                                                                                                               |   |   | 1,618,940 |   |   | 9.3 | % | $ | 2,784,016 |   | $ | 2,524,986 |   | $ | 259,030 |   | $ | - |   |   | - |   |
| June                  2006                                                                                                                                |   |   | 1,410,227 |   |   | 8.1 | % | $ | 3,132,018 |   | $ | 2,878,177 |   | $ | 253,841 |   | $ | - |   |   | - |   |
| September                  2006                                                                                                                           |   |   | 1,270,634 |   |   | 7.3 | % | $ | 4,350,025 |   | $ | 4,032,366 |   | $ | 317,659 |   | $ | - |   |   | - |   |
| December                  2006                                                                                                                            |   |   | 1,111,045 |   |   | 6.4 | % | $ | 5,742,033 |   | $ | 5,375,388 |   | $ | - |   | $ | 366,645 |   |   | 22,168 |   |
| March                  2007                                                                                                                               |   |   | 1,355,671 |   |   | 7.8 | % | $ | 4,616,901 |   | $ | 4,257,648 |   | $ | - |   | $ | 359,253 |   |   | 22,692 | (1) |
| (1)                  Shares were issued on 4/13/07 for the March 2007 dividend. See                  above and                  Note 4 for futher detail. |   |   |   |   |   |

***Income      Taxes***

*Accounting      for Uncertainty in Income Taxes—an interpretation of FASB Statement No. 109      (“FIN 48”), *
* *

**Note      3: Credit Facility **

----

**Note      4: Issuance of Common Stock **

----

**Note      5: Investment Management **

----

----

**Note      6: Federal Income Taxes **

*Accounting      for Uncertainty in Income Taxes—an interpretation of FASB Statement No. 109      (“FIN 48”), *
* *

|                                                                       |   | For                  the Three Months |   | For                  the Three Months |   |
|----------------------------------------------------------------------------|--------|---------------------------------------|--------|---------------------------------------|--------|
|                                                                       |   | ended                  March 31, 2007 |   | ended                  March 31, 2006 |   |
|                                                                       |   | (unaudited)                           |   | (unaudited)                           |   |
|                                                                       |   |                                  |   |                                  |   |   |   |
| Statutory                  federal rate on loss from continuing operations |   |                                  | 34     | %                                     |   | 34 | % |
| Effect                  of net deferred tax assets                         |   |                                  | (34    | %)                                    |   | (34 | %) |
|                                                                       |   |                                  |   |                                  |   |   |   |
| Effective                  tax rate on earnings from continuing operations |   |                                  | 0      | %                                     |   | 0 | % |

----

|                                                     |   | For                  the Three Months |     | For                  the Three Months |   |
|----------------------------------------------------------|--------|---------------------------------------|----------|---------------------------------------|--------|
|                                                     |   | ended                  March 31, 2007 |     | ended                  March 31, 2006 |   |
|                                                     |   | (unaudited)                           |     | (unaudited)                           |   |
|                                                     |   |                                  |     |                                  |   |
| Deferred                  tax assets                     |   |                                  |     |                                  |   |
|  Net                  operating loss carry forwards |   | $                                     | 156,674  |                                  | $      | 157,862 |   |
|  Net                  organization costs            |   |                                  | 111,830  |                                  |   | 159,756 |   |
| Total                  gross deferred tax assets         |   |                                  | 268,504  |                                  |   | 317,618 |   |
|  Less                  valuation allowance          |   |                                  | (268,504 | )                                     |   | (317,618 | ) |
|  Net                  deferred tax assets           |   |                                  | -        |                                  |   | - |   |
|                                                     |   |                                  |     |                                  |   |   |   |
| Deferred                  tax liabilities                |   |                                  |     |                                  |   |   |   |
|  Unrealized                  gains, net             |   |                                  | -        |                                  |   | - |   |
|  Prepaid                  expenses                  |   |                                  | -        |                                  |   | - |   |
| Total                  gross deferred tax liabilities    |   |                                  | -        |                                  |   | - |   |
|                                                     |   |                                  |     |                                  |   |   |   |
|  Net                  deferred tax assets           |   | $                                     | -        |                                  | $      | - |   |

**Note      7: Commitments and Contingencies **

----

**Note      8: Reclassifications **

**Note      9: Subsequent Events**

**Note      10: New Accounting Interpretations and Standards**

*,      Fair Value Measurements*

----

*The      Fair Value Options for Financial Assets and Financial Liabilities,*

**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations. **

*The      following analysis of our financial condition and results of operations should      be read in conjunction with our financial statements and the notes thereto      contained elsewhere in this report.*

**Forward-Looking      Statements **

| ·   | uncertainties                associated with the timing of transaction                closings; |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | changes                in the prospects of our portfolio                companies; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | changes                in interest rates; |
|--------------------|-------------------------------------------|

| ·   | changes                in regional, national, or international economic conditions and their                impact on the industries in which we                invest; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                future operating results of our portfolio companies and their ability                to                achieve their objectives; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                in the conditions of the industries in which we                invest; |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | the                adequacy of our cash resources and working                capital; |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | the                timing of cash flows, if any, from the operations of our portfolio                companies; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | the                ability of our Manager to locate suitable investments for us and                to                monitor and administer the investments;                and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | other                factors enumerated in our filings with the Securities and Exchange                Commission. |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

**Overview**

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**Portfolio      and Investment Activity **

**Results      of Operations **

***Investment      Income***

----

***Operating      Expenses***

***Net      Investment Income***

***Unrealized      Appreciation or Depreciation on Investments***

***Net      Realized Gains***

***Net      Increase in Stockholders’ Equity from Operations***

**Financial      Condition, Liquidity and Capital Resources **

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**Dividends      **

**Portfolio      Credit Quality **

| **Recently                Issued Accounting Pronouncements**                                                                                                                                                                                                                                                                                            |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                    |
| See                Note 10: New Accounting Interpretations and Standards in the                accompanying notes to consolidated financial statements for details                of                recently issued accounting pronouncements and their expected impact                on the                Company’s financial statements. |

**Item      3. Quantitative and Qualitative Disclosures About Market      Risk.**

**Item      4. Controls and Procedures. **

**Disclosure      Controls and Procedures**

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** **

**PART      II - OTHER INFORMATION **

**Item      1. Legal Proceedings. **

**Item      1A. Risk Factors.**

**Item      2. Unregistered Sales of Equity Securities and Use of Proceeds.**

**Item      3. Defaults Upon Senior Securities. **

**Item      4. Other Information. **

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**Item      5. Exhibits.**

| **No.** |   | **Exhibit**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.1     | -      | Articles                  of Incorporation of NGP Capital Resources Company dated as of July                  15,                  2004 (filed as Exhibit (a)(1) to the Company’s Registration Statement on                  Form N-2 dated November 9, 2004 (Registration No. 333-118279) and                  incorporated herein by reference)                                                                                                                                               |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.2     | -      | Articles                  of Amendment and Restatement of NGP Capital Resources Company dated                  as of                  October 29, 2004 (filed as Exhibit 3.2 to the Company’s Annual Report on                  Form 10-K for the year ended December 31, 2004, and incorporated                  herein by                  reference)                                                                                                                                         |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.3     | -      | Bylaws                  of NGP Capital Resources Company (filed as Exhibit (b) to the Company’s                  Registration Statement on Form N-2 dated August 16, 2004 (Registration                  No.                  333-118279) and incorporated herein by reference)                                                                                                                                                                                                                 |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.1    | -      | Investment                  Advisory Agreement dated as of November 9, 2004, between NGP Capital                  Resources Company and NGP Investment Advisor, LP (filed as Exhibit                  10.1 to                  the Company’s Annual Report on Form 10-K for the year ended December 31,                  2004, and incorporated herein by reference)                                                                                                                            |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.2    | -      | Administration                  Agreement dated as of November 9, 2004, by and between NGP Capital                  Resources Company and NGP Administration, LLC (filed as Exhibit                  10.2 to                  the Company’s Annual Report on Form 10-K for the year ended December 31,                  2004, and incorporated herein by reference)                                                                                                                             |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.3    | -      | License                  Agreement dated as of November 9, 2004, by and between NGP Capital                  Resources Company and Natural Gas Partners, LLC (filed as Exhibit                  10.3 to                  the Company’s Annual Report on Form 10-K for the year ended December 31,                  2004, and incorporated herein by reference)                                                                                                                                  |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.4    | -      | Joint                  Code of Ethics (filed as Exhibit (r) to the Company’s Registration                  Statement on Form N-2 dated November 9, 2004 (Registration No.                  333-118279)                  and incorporated herein by reference)                                                                                                                                                                                                                                   |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.5    | -      | Form                  of Indemnity Agreement (filed as Exhibit 10.5 to the Company’s Annual                  Report on Form 10-K for the year ended December 31, 2004, and incorporated                  herein by reference)                                                                                                                                                                                                                                                                   |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.6    | -      | Revolving                  Credit Agreement dated as of May 16, 2005, by and between NGP Capital                  Resources Company, the lenders from time to time party thereto                  and                  SunTrust Bank (filed as Exhibit 10.4 to the Company’s Quarterly Report on                  Form 10-Q for the quarterly period ended June 30, 2005, and incorporated                  herein by reference)                                                                |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.7    | -      | Amended                  and Restated Revolving Credit Agreement dated as of August 31,                  2006, by                  and between NGP Capital Resources Company, the lenders from time                  to time                  party thereto and SunTrust Bank (filed as Exhibit 10.6 to the Company’s                  Quarterly Report on Form 10-Q for the quarterly period ended September                  30,                  2006, and incorporated herein by reference) |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.8    | -      | Treasury                  Secured Revolving Credit Agreement dated as of August 31, 2006,                  by and                  between NGP Capital Resources Company, the lenders from time to                  time party                  thereto and SunTrust Bank (filed as Exhibit 10.7 to the Company’s                  Quarterly Report on Form 10-Q for the quarterly period ended September                  30,                  2006, and incorporated herein by reference)     |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 31.1    | -      | Certification                  required by Rule 13a-14(a)/15d-14(a) by the Chief Executive                  Officer                                                                                                                                                                                                                                                                                                                                                                                   |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 31.2    | -      | Certification                  required by Rule 13a-14(a)/15d-14(a) by the Chief Financial                  Officer                                                                                                                                                                                                                                                                                                                                                                                   |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 32.1    | -      | Section                  1350 Certification by the Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 32.2    | -      | Section                  1350 Certification by the Chief Financial                  Officer                                                                                                                                                                                                                                                                                                                                                                                                           |

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|         |                                                                                                                         |                                                                                                    |
|--------------|------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
|         | NGP              CAPITAL              RESOURCES COMPANY                                                                      |
|    |                                                                                                                    |                                                                                               |
|         | By:                                                                                                                |                          /s/ John H. Homier |
|         |                               John H. Homier |
|         | President              and              Chief Executive Officer                                                              |

|         |                                                                                                                                   |                                                                                                              |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
|         | NGP              CAPITAL              RESOURCES COMPANY                                                                                |
|    |                                                                                                                              |                                                                                                         |
|         | By:                                                                                                                          |                           /s/ Stephen K. Gardner |
|         |                                Stephen K. Gardner |
|         | Chief              Financial Officer, Treasurer and              Secretary                                                             |

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**Index      to Exhibits**

| **No.** |   | **Exhibit**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3.1     | -      | Articles                    of Incorporation of NGP Capital Resources Company dated as of                    July 15,                    2004 (filed as Exhibit (a)(1) to the Company’s Registration Statement on                    Form N-2 dated November 9, 2004 (Registration No. 333-118279)                    and                    incorporated herein by reference)                                                                                                                                                     |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3.2     | -      | Articles                    of Amendment and Restatement of NGP Capital Resources Company                    dated as of                    October 29, 2004 (filed as Exhibit 3.2 to the Company’s Annual Report on                    Form 10-K for the year ended December 31, 2004, and incorporated                    herein by                    reference)                                                                                                                                                                |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3.3     | -      | Bylaws                    of NGP Capital Resources Company (filed as Exhibit (b) to the                    Company’s                    Registration Statement on Form N-2 dated August 16, 2004 (Registration                    No.                    333-118279) and incorporated herein by reference)                                                                                                                                                                                                                         |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.1    | -      | Investment                    Advisory Agreement dated as of November 9, 2004, between NGP                    Capital                    Resources Company and NGP Investment Advisor, LP (filed as Exhibit                    10.1 to                    the Company’s Annual Report on Form 10-K for the year ended December 31,                    2004, and incorporated herein by reference)                                                                                                                                  |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.2    | -      | Administration                    Agreement dated as of November 9, 2004, by and between NGP Capital                    Resources Company and NGP Administration, LLC (filed as Exhibit                    10.2 to                    the Company’s Annual Report on Form 10-K for the year ended December 31,                    2004, and incorporated herein by reference)                                                                                                                                                      |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.3    | -      | License                    Agreement dated as of November 9, 2004, by and between NGP Capital                    Resources Company and Natural Gas Partners, LLC (filed as Exhibit                    10.3 to                    the Company’s Annual Report on Form 10-K for the year ended December 31,                    2004, and incorporated herein by reference)                                                                                                                                                           |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.4    | -      | Joint                    Code of Ethics (filed as Exhibit (r) to the Company’s Registration                    Statement on Form N-2 dated November 9, 2004 (Registration No.                    333-118279)                    and incorporated herein by reference)                                                                                                                                                                                                                                                              |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.5    | -      | Form                    of Indemnity Agreement (filed as Exhibit 10.5 to the Company’s Annual                    Report on Form 10-K for the year ended December 31, 2004, and                    incorporated                    herein by reference)                                                                                                                                                                                                                                                                             |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.6    | -      | Revolving                    Credit Agreement dated as of May 16, 2005, by and between NGP                    Capital                    Resources Company, the lenders from time to time party thereto                    and                    SunTrust Bank (filed as Exhibit 10.4 to the Company’s Quarterly Report on                    Form 10-Q for the quarterly period ended June 30, 2005, and incorporated                    herein by reference)                                                                    |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.7    | -      | Amended                    and Restated Revolving Credit Agreement dated as of August 31,                    2006, by                    and between NGP Capital Resources Company, the lenders from time                    to time                    party thereto and SunTrust Bank (filed as Exhibit 10.6 to the                    Company’s                    Quarterly Report on Form 10-Q for the quarterly period ended                    September 30,                    2006, and incorporated herein by reference) |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.8    | -      | Treasury                    Secured Revolving Credit Agreement dated as of August 31, 2006,                    by and                    between NGP Capital Resources Company, the lenders from time                    to time party                    thereto and SunTrust Bank (filed as Exhibit 10.7 to the Company’s                    Quarterly Report on Form 10-Q for the quarterly period ended                    September 30,                    2006, and incorporated herein by reference)                        |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 31.1    | -      | Certification                    required by Rule 13a-14(a)/15d-14(a) by the Chief Executive                    Officer                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 31.2    | -      | Certification                    required by Rule 13a-14(a)/15d-14(a) by the Chief Financial                    Officer                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 32.1    | -      | Section                    1350 Certification by the Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 32.2    | -      | Section                    1350 Certification by the Chief Financial                    Officer                                                                                                                                                                                                                                                                                                                                                                                                                                          |

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