BlackRock Energy & Resources Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-21656

Name of Fund:  BlackRock Energy and Resources Trust (BGR)

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Energy and

            Resources Trust, 55 East 52nd Street, New York, NY 10055

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

Date of fiscal year end: 12/31/2018

Date of reporting period: 03/31/2018

Item 1 – Schedule of Investments

Schedule of Investments  (unaudited) 

March 31, 2018

   

BlackRock Energy and Resources Trust (BGR)

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Common Stocks — 99.6%

 

Energy Equipment & Services — 8.7%  

Baker Hughes a GE Co.(a)

     261,150      $ 7,252,135  

Halliburton Co.(a)

     348,700        16,367,978  

Patterson-UTI Energy, Inc.(a)

     241,957        4,236,667  

Schlumberger Ltd.(a)

     151,224        9,796,291  
    

 

 

  
     37,653,071  
Oil, Gas & Consumable Fuels — 90.9%  

Anadarko Petroleum Corp.(a)

     199,633        12,059,830  

Andeavor(a)

     87,450        8,793,972  

BP PLC

     4,559,400        30,753,615  

Cabot Oil & Gas Corp.(a)

     285,950        6,857,081  

Cairn Energy PLC(b)

     1,636,595        4,743,953  

Canadian Natural Resources Ltd.

     397,890        12,507,894  

Chevron Corp.(a)

     374,485        42,706,269  

Cimarex Energy Co.

     98,500        9,209,750  

Concho Resources, Inc.(a)(b)

     26,750        4,021,328  

ConocoPhillips(a)

     369,250        21,892,833  

Devon Energy Corp.(a)

     374,150        11,894,229  

Encana Corp.

     1,116,150        12,276,047  

Eni SpA

     230,939        4,068,047  

EOG Resources, Inc.(a)

     172,700        18,180,129  

EQT Corp.

     168,300        7,995,933  

Exxon Mobil Corp.(a)(c)

     371,702        27,732,686  

Kosmos Energy Ltd.(b)

     897,658        5,655,245  

Marathon Oil Corp.(a)

     492,524        7,944,412  

Noble Energy, Inc.(c)

     353,142        10,700,203  

Oil Search Ltd.

     990,413        5,501,461  

Pioneer Natural Resources Co.(a)

     88,826        15,258,530  
Security   Shares      Value  
Oil, Gas & Consumable Fuels (continued)  

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

     705,950      $ 45,046,669  

Royal Dutch Shell PLC, Class A

     301,348        9,534,211  

Suncor Energy, Inc.

     481,950        16,642,958  

TOTAL SA

     196,153        11,243,416  

TransCanada Corp.

     304,750        12,603,004  

Valero Energy Corp.(a)

     139,750        12,964,608  

Williams Cos., Inc.(a)

     267,000        6,637,620  
    

 

 

  
     395,425,933  
    

 

 

  

Total Long-Term Investments — 99.6%
(Cost — $413,899,710)

 

      433,079,004  
    

 

 

  

Short-Term Securities — 1.0%

 

BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.58%(d)(e)

     4,454,792        4,454,792  
    

 

 

  

Total Short-Term Securities — 1.0%
(Cost — $4,454,792)

 

      4,454,792  
    

 

 

  

Total Investments Before Options Written — 100.6%
(Cost — $418,354,502)

 

      437,533,796  
    

 

 

  

Options Written — (0.6)%
(Premiums Received — $2,986,848)

 

      (2,734,415 ) 
    

 

 

  

Total Investments, Net of Options Written — 100.0%
(Cost — $415,367,654)

 

      434,799,381  

Liabilities in Excess of Other Assets — (0.0)%

 

      (2,844 ) 
    

 

 

  

Net Assets— 100.0%

 

    $ 434,796,537  
    

 

 

  
 
(a)  All or a portion of security has been pledged and/or segregated as collateral in connection with outstanding exchange-traded options written.
(b)  Non-income producing security.
(c)  All or a portion of the security has been pledged as collateral in connection with outstanding OTC derivatives.
(d)  Annualized 7-day yield as of period end.
(e)  During the period ended March 31, 2018, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
12/31/17		      Net
Activity		      Shares
Held at
03/31/18		      Value at
03/31/18		      Income     

Net

Realized
Gain (a)

      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, T-Fund, Institutional Class

      3,870,844        583,948        4,454,792      $ 4,454,792      $ 12,595      $ —      $ —  
           

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a)  Includes net capital gain distributions, if applicable.  

For Trust compliance purposes, the Trust’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

 

 

    
 1
  

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Energy and Resources Trust (BGR)

 

Portfolio Abbreviations

ADR — American Depositary Receipts

AUD — Australian Dollar

CAD — Canadian Dollar

EUR — Euro

GBP — British Pound

USD — U.S. Dollar

Derivative Financial Instruments Outstanding as of Period End

Exchange-Traded Options Written

 

Description    Number of
Contracts		        Expiration
Date		        Exercise
Price		        Notional
Amount (000)		        Value  

Call

 

Royal Dutch Shell PLC — ADR, Class A

      172          04/03/18        USD     71.50        USD     1,098        $ —  

Anadarko Petroleum Corp.

      177          04/06/18        USD     61.00        USD     1,069          (13,717 ) 

Andeavor

      80          04/06/18        USD     96.00        USD     804          (40,000 ) 

Chevron Corp.

      204          04/06/18        USD     114.00        USD     2,326          (28,458 ) 

Chevron Corp.

      39          04/06/18        USD     117.00        USD     445          (1,170 ) 

Devon Energy Corp.

      480          04/06/18        USD     33.00        USD     1,526          (10,560 ) 

Exxon Mobil Corp.

      462          04/06/18        USD     78.00        USD     3,447          (2,079 ) 

Halliburton Co.

      299          04/06/18        USD     49.00        USD     1,404          (4,036 ) 

Marathon Oil Corp.

      352          04/06/18        USD     16.50        USD     568          (6,160 ) 

Schlumberger Ltd.

      337          04/06/18        USD     67.00        USD     2,183          (8,256 ) 

TransCanada Corp.

      197          04/06/18        CAD     56.50        CAD     1,050          (917 ) 

Concho Resources, Inc.

      38          04/11/18        USD     146.25        USD     571          (21,393 ) 

Anadarko Petroleum Corp.

      292          04/13/18        USD     59.00        USD     1,764          (69,642 ) 

Andeavor

      103          04/13/18        USD     100.00        USD     1,036          (26,935 ) 

Chevron Corp.

      78          04/13/18        USD     117.00        USD     890          (5,499 ) 

Chevron Corp.

      40          04/13/18        USD     118.00        USD     456          (1,860 ) 

ConocoPhillips

      212          04/13/18        USD     55.00        USD     1,257          (96,460 ) 

Exxon Mobil Corp.

      359          04/13/18        USD     76.50        USD     2,678          (14,180 ) 

Marathon Oil Corp.

      352          04/13/18        USD     16.51        USD     568          (11,901 ) 

Pioneer Natural Resources Co.

      198          04/13/18        USD     175.00        USD     3,401          (45,540 ) 

Pioneer Natural Resources Co.

      56          04/13/18        USD     177.50        USD     962          (8,540 ) 

Royal Dutch Shell PLC — ADR, Class A

      305          04/13/18        USD     64.00        USD     1,946          (27,450 ) 

Valero Energy Corp.

      210          04/13/18        USD     92.50        USD     1,948          (43,155 ) 

Baker Hughes a GE Co.

      287          04/20/18        USD     27.50        USD     797          (38,028 ) 

Baker Hughes a GE Co.

      313          04/20/18        USD     31.00        USD     869          (7,825 ) 

Cabot Oil & Gas Corp.

      250          04/20/18        USD     26.00        USD     600          (3,125 ) 

Canadian Natural Resources Ltd.

      671          04/20/18        CAD     40.00        CAD     2,718          (64,321 ) 

Chevron Corp.

      359          04/20/18        USD     120.00        USD     4,094          (12,924 ) 

Concho Resources, Inc.

      55          04/20/18        USD     155.00        USD     827          (10,587 ) 

ConocoPhillips

      328          04/20/18        USD     57.50        USD     1,945          (87,412 ) 

EOG Resources, Inc.

      52          04/20/18        USD     105.00        USD     547          (13,416 ) 

Encana Corp.

      980          04/20/18        CAD     15.00        CAD     1,389          (17,495 ) 

Encana Corp.

      1,530          04/20/18        CAD     14.00        CAD     2,168          (77,192 ) 

Halliburton Co.

      318          04/20/18        USD     47.50        USD     1,493          (33,708 ) 

Marathon Oil Corp.

      422          04/20/18        USD     16.00        USD     681          (28,485 ) 

Patterson-UTI Energy, Inc.

      140          04/20/18        USD     21.00        USD     245          (700 ) 

Royal Dutch Shell PLC — ADR, Class A

      410          04/20/18        USD     65.00        USD     2,616          (27,675 ) 

Suncor Energy, Inc.

      616          04/20/18        CAD     44.00        CAD     2,741          (51,877 ) 

TransCanada Corp.

      277          04/20/18        CAD     57.00        CAD     1,476          (2,903 ) 

 

 

2   

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Energy and Resources Trust (BGR)

 

Exchange-Traded Options Written (continued)

 

Description    Number of
Contracts		        Expiration
Date		        Exercise
Price		        Notional
Amount (000)		        Value  

Call

                           

Valero Energy Corp.

      210          04/20/18        USD     97.50        USD     1,948        $ (13,860 ) 

Williams Cos., Inc.

      467          04/20/18        USD     28.00        USD     1,161          (2,335 ) 

Anadarko Petroleum Corp.

      106          04/27/18        USD     61.00        USD     640          (19,928 ) 

Cabot Oil & Gas Corp.

      261          04/27/18        USD     26.00        USD     626          (6,525 ) 

Chevron Corp.

      141          04/27/18        USD     121.00        USD     1,608          (7,896 ) 

ConocoPhillips

      280          04/27/18        USD     56.00        USD     1,660          (113,400 ) 

EOG Resources, Inc.

      184          04/27/18        USD     110.00        USD     1,937          (18,400 ) 

Pioneer Natural Resources Co.

      56          04/27/18        USD     175.00        USD     962          (22,120 ) 

Royal Dutch Shell PLC — ADR, Class A

      296          04/27/18        USD     64.00        USD     1,889          (33,300 ) 

Schlumberger Ltd.

      192          04/27/18        USD     68.50        USD     1,244          (15,648 ) 

Williams Cos., Inc.

      467          04/27/18        USD     28.00        USD     1,161          (5,604 ) 

Anadarko Petroleum Corp.

      123          05/04/18        USD     62.50        USD     743          (21,217 ) 

Andeavor

      123          05/04/18        USD     103.00        USD     1,237          (29,306 ) 

Baker Hughes a GE Co.

      314          05/04/18        USD     31.01        USD     872          (14,073 ) 

Cabot Oil & Gas Corp.

      239          05/04/18        USD     25.00        USD     573          (13,672 ) 

Chevron Corp.

      309          05/04/18        USD     119.00        USD     3,524          (39,398 ) 

ConocoPhillips

      177          05/04/18        USD     60.00        USD     1,049          (30,621 ) 

ConocoPhillips

      295          05/04/18        USD     61.00        USD     1,749          (41,890 ) 

EOG Resources, Inc.

      184          05/04/18        USD     111.00        USD     1,937          (23,368 ) 

Halliburton Co.

      603          05/04/18        USD     49.50        USD     2,830          (50,954 ) 

Marathon Oil Corp.

      298          05/04/18        USD     17.50        USD     481          (10,281 ) 

Royal Dutch Shell PLC — ADR, Class A

      578          05/04/18        USD     65.50        USD     3,688          (50,286 ) 

Valero Energy Corp.

      69          05/04/18        USD     95.00        USD     640          (15,111 ) 

Cabot Oil & Gas Corp.

      250          05/18/18        USD     25.00        USD     600          (17,500 ) 

Chevron Corp.

      140          05/18/18        USD     120.00        USD     1,597          (19,740 ) 

EOG Resources, Inc.

      184          05/18/18        USD     110.00        USD     1,937          (37,720 ) 

Encana Corp.

      1,396          05/18/18        CAD     15.00        CAD     1,978          (55,261 ) 

Exxon Mobil Corp.

      479          05/18/18        USD     77.50        USD     3,574          (44,787 ) 

Marathon Oil Corp.

      299          05/18/18        USD     16.00        USD     482          (31,844 ) 

Royal Dutch Shell PLC — ADR, Class A

      709          05/18/18        USD     65.00        USD     4,524          (88,625 ) 

Suncor Energy, Inc.

      268          05/18/18        CAD     46.00        CAD     1,192          (12,689 ) 

TransCanada Corp.

      118          05/18/18        CAD     58.00        CAD     629          (2,290 ) 

TransCanada Corp.

      156          05/18/18        CAD     56.00        CAD     831          (6,781 ) 
                          

 

 

  
     $ (1,882,011 ) 
                          

 

 

  

 

 

     3  

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Energy and Resources Trust (BGR)

 

OTC Options Written

 

Description    Counterparty    Number of
Contracts		      Expiration
Date		      Exercise
Price		      Notional
Amount (000)		      Value  

Call

 

Eni SpA

    Bank of America N.A.      15,400        04/04/18      EUR     13.80      EUR     221      $ (10,055 ) 

Noble Energy, Inc.

    Morgan Stanley & Co. International PLC      61,800        04/04/18      USD     27.64      USD     1,873        (166,068 ) 

Canadian Natural Resources Ltd.

    Citibank N.A.      6,600        04/09/18      CAD     40.88      CAD     267        (2,608 ) 

Patterson-UTI Energy, Inc.

    UBS AG      35,300        04/09/18      USD     19.25      USD     618        (2,510 ) 

BP PLC

    UBS AG      290,000        04/10/18      GBP     5.16      GBP     1,395        (2,300 ) 

TOTAL SA

    Goldman Sachs International      10,700        04/11/18      EUR     47.70      EUR     498        (2,722 ) 

Suncor Energy, Inc.

    Morgan Stanley & Co. International PLC      53,500        04/12/18      CAD     45.08      CAD     2,380        (16,078 ) 

Oil Search Ltd.

    UBS AG      189,700        04/17/18      AUD     7.72      AUD     1,372        (3,360 ) 

BP PLC

    UBS AG      214,000        04/18/18      GBP     4.81      GBP     1,029        (26,056 ) 

Eni SpA

    UBS AG      32,750        04/18/18      EUR     14.14      EUR     469        (13,346 ) 

Patterson-UTI Energy, Inc.

    UBS AG      35,300        04/19/18      USD     19.25      USD     618        (6,899 ) 

BP PLC

    Morgan Stanley & Co. International PLC      230,000        04/24/18      GBP     4.82      GBP     1,106        (31,219 ) 

TOTAL SA

    Morgan Stanley & Co. International PLC      41,900        04/25/18      EUR     46.61      EUR     1,952        (44,845 ) 

Canadian Natural Resources Ltd.

    Credit Suisse International      65,500        04/30/18      CAD     40.10      CAD     2,653        (70,216 ) 

BP PLC

    Barclays Bank PLC      247,000        05/02/18      GBP     4.87      GBP     1,188        (33,789 ) 

Cimarex Energy Co.

    UBS AG      17,200        05/02/18      USD     96.19      USD     1,608        (39,859 ) 

Royal Dutch Shell PLC, Class A

    Credit Suisse International      105,500        05/02/18      GBP     22.89      GBP     2,379        (52,049 ) 

TOTAL SA

    Goldman Sachs International      16,000        05/03/18      EUR     46.70      EUR     745        (19,684 ) 

BP PLC

    Barclays Bank PLC      491,300        05/09/18      GBP     4.74      GBP     2,363        (121,814 ) 

BP PLC

    Credit Suisse International      123,400        05/09/18      GBP     4.77      GBP     594        (28,052 ) 

Noble Energy, Inc.

    Barclays Bank PLC      61,700        05/11/18      USD     30.80      USD     1,870        (79,311 ) 

Cimarex Energy Co.

    UBS AG      17,200        05/16/18      USD     96.19      USD     1,608        (50,159 ) 

Oil Search Ltd.

    Morgan Stanley & Co. International PLC      157,000        05/17/18      AUD     7.35      AUD     1,135        (21,570 ) 

Eni SpA

    UBS AG      32,750        05/29/18      EUR     14.48      EUR     469        (7,835 ) 
                     

 

 

  
   $ (852,404 ) 
                     

 

 

  

 

 

4   

Schedule of Investments  (unaudited) (continued)

March 31, 2018

   

BlackRock Energy and Resources Trust (BGR)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •   Level 1 — Unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

 

  •   Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  •   Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in these securities. For information about the Trust’s policy regarding valuation of investments, refer to the Trust’s most recent financial statements as contained in its annual report.

As of March 31, 2018, the following tables summarize the Trust’s investments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Common Stocks:

 

Energy Equipment & Services

   $ 37,653,071        $ —        $             —        $ 37,653,071  

Oil, Gas & Consumable Fuels

     329,581,230          65,844,703          —          395,425,933  

Short-Term Securities

     4,454,792          —          —          4,454,792  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 371,689,093        $ 65,844,703        $ —        $ 437,533,796  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

 

Liabilities:

 

Equity contracts

   $ (1,834,644 )       $ (899,771 )       $ —        $ (2,734,415 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a)  Derivative financial instruments are options written, which are shown at value.  

During the period ended March 31, 2018, there were no transfers between levels.

 

 

     5  

Item 2 –  Controls and Procedures

 

2(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

2(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 –  Exhibits

Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Energy and Resources Trust

 

By:       /s/ John M. Perlowski                
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Energy and Resources Trust

Date: May 21, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:       /s/ John M. Perlowski                
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Energy and Resources Trust

Date: May 21, 2018

 

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

Date: May 21, 2018