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: 09/30/2018

Item 1 – Schedule of Investments

Schedule of Investments

September 30, 2018 (Unaudited)

   

BlackRock Energy and Resources Trust (BGR)

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks — 100.1%  

Energy Equipment & Services — 7.2%

 

Baker Hughes a GE Co.

     255,700     $ 8,650,331  

Halliburton Co.(a)

     306,900       12,438,657  

Patterson-UTI Energy, Inc.(a)

     192,557       3,294,650  

Schlumberger Ltd.(a)

     156,674       9,544,580  
   

 

 

  
    33,928,218  
Oil, Gas & Consumable Fuels — 92.9%  

Anadarko Petroleum Corp.(a)

     161,633       10,895,681  

Andeavor

     117,150       17,982,525  

BP PLC

     4,727,000       36,231,217  

Cairn Energy PLC(b)

     1,958,245       5,918,827  

Canadian Natural Resources Ltd.

     418,540       13,674,283  

Chevron Corp.(a)(c)

     148,985       18,217,886  

CNOOC Ltd.

     3,660,000       7,247,260  

Concho Resources, Inc.(a)(b)

     62,800       9,592,700  

ConocoPhillips(a)

     295,650       22,883,310  

Devon Energy Corp.(a)

     339,050       13,541,657  

Encana Corp.

     816,700       10,704,704  

EOG Resources, Inc.(a)

     140,750       17,955,477  

EQT Corp.

     180,450       7,981,304  

Exxon Mobil Corp.(a)(c)

     553,652       47,071,493  

Galp Energia SGPS SA

     315,950       6,264,602  

Kosmos Energy Ltd.(b)

     497,508       4,651,700  

Noble Energy, Inc.

     313,292       9,771,577  

Oil Search Ltd.

     911,863       5,956,208  

Pioneer Natural Resources Co.(a)

     82,876       14,436,170  
Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)  

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

     727,400     $ 49,565,036  

Royal Dutch Shell PLC, Class A

     273,248       9,369,249  

Suncor Energy, Inc.

     597,300       23,112,340  

TOTAL SA

     429,653       27,936,360  

TransCanada Corp.

     306,250       12,390,837  

Valero Energy Corp.(a)

     175,500       19,963,125  

Williams Cos., Inc.(a)

     482,900       13,130,051  
   

 

 

  
    436,445,579  
   

 

 

  

Total Long-Term Investments — 100.1%
(Cost — $410,229,113)

 

     470,373,797  
   

 

 

  

Short-Term Securities — 0.9%

 

BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.97%(d)(e)

     4,480,032       4,480,032  
   

 

 

  

Total Short-Term Securities — 0.9%
(Cost — $4,480,032)

 

     4,480,032  
   

 

 

  

Total Investments Before Options Written — 101.0%
(Cost — $414,709,145)

 

     474,853,829  
   

 

 

  

Options Written — (1.0)%
(Premiums Received — $2,991,551)

 

     (4,466,045 ) 
   

 

 

  

Total Investments, Net of Options Written — 100.1%
(Cost — $411,717,594)

 

     470,387,784  

Liabilities in Excess of Other Assets — (0.1)%

 

     (389,920 ) 
   

 

 

  

Net Assets — 100.0%

 

   $ 469,997,864  
   

 

 

  
 
(a) 

All or a portion of the 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 September 30, 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, and/or related parties of the Trust were as follows:

 

Affiliate    Shares
Held at
12/31/17		      Net
Activity		      Shares
Held at
09/31/18		      Value at
09/31/18		      Income      Net
Realized
Gain (Loss)(a)		      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, T-Fund, Institutional Class

      3,870,844        609,188        4,480,032      $ 4,480,032      $ 50,948      $ —      $ —  
           

 

 

     

 

 

     

 

 

     

 

 

  

 

  (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.

 

Currency Abbreviations
AUD    Australian Dollar
CAD    Canadian Dollar

 

 

     1  

Schedule of Investments  (unaudited) (continued)

September 30, 2018

   

BlackRock Energy and Resources Trust (BGR)

 

Currency Abbreviations (continued)
EUR    Euro
GBP    British Pound
HKD    Hong Kong Dollar
USD    United States Dollar

 

Portfolio Abbreviations
ADR    American Depositary Receipts

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

                   

Anadarko Petroleum Corp.

      130        10/05/18        USD       66.50        USD       876      $ (18,915 ) 

Andeavor

      66        10/05/18        USD       157.50        USD       1,013        (6,930 ) 

Chevron Corp.

      105        10/05/18        USD       123.00        USD       1,284        (7,717 ) 

ConocoPhillips

      101        10/05/18        USD       74.00        USD       782        (35,350 ) 

Devon Energy Corp.

      157        10/05/18        USD       44.50        USD       627        (314 ) 

EOG Resources, Inc.

      89        10/05/18        USD       122.00        USD       1,135        (52,065 ) 

Halliburton Co.

      392        10/05/18        USD       41.50        USD       1,589        (6,468 ) 

Royal Dutch Shell PLC — ADR, Class A

      126        10/05/18        USD       65.00        USD       859        (40,950 ) 

Royal Dutch Shell PLC — ADR, Class A

      410        10/05/18        USD       67.50        USD       2,794        (42,025 ) 

Valero Energy Corp.

      60        10/05/18        USD       123.00        USD       683        (300 ) 

Williams Cos., Inc.

      192        10/05/18        USD       30.50        USD       522        (384 ) 

Chevron Corp.

      32        10/12/18        USD       121.00        USD       391        (7,520 ) 

ConocoPhillips

      101        10/12/18        USD       73.00        USD       782        (49,995 ) 

Devon Energy Corp.

      157        10/12/18        USD       45.00        USD       627        (942 ) 

Devon Energy Corp.

      78        10/12/18        USD       42.00        USD       312        (1,989 ) 

EOG Resources, Inc.

      58        10/12/18        USD       121.00        USD       740        (41,325 ) 

Exxon Mobil Corp.

      410        10/12/18        USD       82.00        USD       3,486        (136,325 ) 

Pioneer Natural Resources Co.

      95        10/12/18        USD       167.50        USD       1,655        (77,900 ) 

Royal Dutch Shell PLC — ADR, Class A

      410        10/12/18        USD       67.50        USD       2,794        (53,300 ) 

Schlumberger Ltd.

      139        10/12/18        USD       62.00        USD       847        (7,575 ) 

Valero Energy Corp.

      197        10/12/18        USD       119.00        USD       2,241        (8,175 ) 

Williams Cos., Inc.

      163        10/12/18        USD       29.00        USD       443        (652 ) 

Anadarko Petroleum Corp.

      248        10/19/18        USD       67.50        USD       1,672        (39,804 ) 

Canadian Natural Resources Ltd.

      393        10/19/18        CAD       44.00        CAD       1,658        (7,150 ) 

Chevron Corp.

      105        10/19/18        USD       125.00        USD       1,284        (8,452 ) 

Concho Resources, Inc.

      110        10/19/18        USD       145.00        USD       1,680        (102,850 ) 

ConocoPhillips

      391        10/19/18        USD       75.00        USD       3,026        (117,887 ) 

Devon Energy Corp.

      161        10/19/18        USD       44.00        USD       643        (2,415 ) 

Devon Energy Corp.

      182        10/19/18        USD       42.00        USD       727        (7,826 ) 

EOG Resources, Inc.

      223        10/19/18        USD       120.00        USD       2,845        (183,975 ) 

Encana Corp.

      261        10/19/18        CAD       17.00        CAD       442        (8,285 ) 

Halliburton Co.

      290        10/19/18        USD       40.00        USD       1,175        (35,090 ) 

Patterson-UTI Energy, Inc.

      353        10/19/18        USD       19.00        USD       604        (2,647 ) 

Pioneer Natural Resources Co.

      55        10/19/18        USD       180.00        USD       958        (11,687 ) 

Royal Dutch Shell PLC — ADR, Class A

      346        10/19/18        USD       65.00        USD       2,358        (119,370 ) 

Schlumberger Ltd.

      181        10/19/18        USD       67.50        USD       1,103        (1,538 ) 

Suncor Energy, Inc.

      937        10/19/18        CAD       54.00        CAD       4,683        (6,892 ) 

Valero Energy Corp.

      128        10/19/18        USD       120.00        USD       1,456        (6,976 ) 

Williams Cos., Inc.

      162        10/19/18        USD       29.00        USD       440        (648 ) 

Williams Cos., Inc.

      92        10/19/18        USD       28.50        USD       250        (874 ) 

 

 

2   

Schedule of Investments  (unaudited) (continued)

September 30, 2018

   

BlackRock Energy and Resources Trust (BGR)

 

Exchange-Traded Options Written (continued)

 

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

Chevron Corp.

      176        10/26/18        USD     $ 119.00        USD       2,152      $ (72,160 ) 

ConocoPhillips

      164        10/26/18        USD       77.00        USD       1,269        (32,226 ) 

Devon Energy Corp.

      50        10/26/18        USD       43.50        USD       200        (1,425 ) 

Devon Energy Corp.

      99        10/26/18        USD       40.50        USD       395        (10,741 ) 

Exxon Mobil Corp.

      471        10/26/18        USD       85.00        USD       4,004        (72,534 ) 

Halliburton Co.

      196        10/26/18        USD       42.00        USD       794        (12,152 ) 

Pioneer Natural Resources Co.

      56        10/26/18        USD       175.00        USD       975        (27,440 ) 

Royal Dutch Shell PLC — ADR, Class A

      351        10/26/18        USD       65.00        USD       2,392        (117,585 ) 

Valero Energy Corp.

      229        10/26/18        USD       117.00        USD       2,605        (42,251 ) 

Williams Cos., Inc.

      65        10/26/18        USD       29.50        USD       177        (260 ) 

Williams Cos., Inc.

      93        10/26/18        USD       28.50        USD       253        (930 ) 

Pioneer Natural Resources Co.

      32        10/31/18        USD       179.50        USD       557        (11,008 ) 

Anadarko Petroleum Corp.

      70        11/02/18        USD       67.00        USD       472        (19,250 ) 

Chevron Corp.

      137        11/02/18        USD       120.00        USD       1,675        (58,568 ) 

Chevron Corp.

      71        11/02/18        USD       125.00        USD       868        (11,821 ) 

ConocoPhillips

      169        11/02/18        USD       79.00        USD       1,308        (22,393 ) 

Devon Energy Corp.

      152        11/02/18        USD       41.00        USD       607        (15,960 ) 

EOG Resources, Inc.

      91        11/02/18        USD       119.00        USD       1,161        (89,635 ) 

Exxon Mobil Corp.

      419        11/02/18        USD       86.50        USD       3,562        (44,833 ) 

Pioneer Natural Resources Co.

      52        11/02/18        USD       177.50        USD       906        (23,140 ) 

Royal Dutch Shell PLC — ADR, Class A

      345        11/02/18        USD       66.00        USD       2,351        (102,638 ) 

Royal Dutch Shell PLC — ADR, Class A

      351        11/02/18        USD       67.00        USD       2,392        (77,220 ) 

Schlumberger Ltd.

      138        11/02/18        USD       65.50        USD       841        (5,313 ) 

Williams Cos., Inc.

      69        11/02/18        USD       29.00        USD       188        (793 ) 

Anadarko Petroleum Corp.

      117        11/16/18        USD       65.00        USD       789        (54,990 ) 

Canadian Natural Resources Ltd.

      392        11/16/18        CAD       44.00        CAD       1,654        (22,003 ) 

Chevron Corp.

      137        11/16/18        USD       120.00        USD       1,675        (65,418 ) 

Concho Resources, Inc.

      110        11/16/18        USD       145.50        USD       1,680        (122,330 ) 

ConocoPhillips

      108        11/16/18        USD       72.50        USD       836        (62,370 ) 

Devon Energy Corp.

      152        11/16/18        USD       41.00        USD       607        (24,928 ) 

EOG Resources, Inc.

      31        11/16/18        USD       130.00        USD       395        (10,850 ) 

Encana Corp.

      1,464        11/16/18        CAD       17.00        CAD       2,479        (86,141 ) 

Exxon Mobil Corp.

      637        11/16/18        USD       87.50        USD       5,416        (57,649 ) 

Patterson-UTI Energy, Inc.

      110        11/16/18        USD       19.00        USD       188        (4,400 ) 

Royal Dutch Shell PLC — ADR, Class A

      206        11/16/18        USD       70.00        USD       1,404        (22,145 ) 

TransCanada Corp.

      1,071        11/16/18        CAD       54.00        CAD       5,597        (50,165 ) 

Williams Cos., Inc.

      163        11/16/18        USD       30.00        USD       443        (1,793 ) 
                  

 

 

  

Total

                    $ (2,718,940 ) 
                  

 

 

  

OTC Options Written

 

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

Call

                      

Patterson-UTI Energy, Inc.

    Citibank N.A.      21,000        10/02/18        USD       17.58        USD       359      $ (2,217 ) 

BP PLC

    Goldman Sachs International      311,600        10/03/18        GBP       5.67        GBP       1,832        (90,381 ) 

Galp Energia SGPS SA

    Bank of America N.A.      36,800        10/03/18        EUR       17.86        EUR       629        (6 ) 

Noble Energy, Inc.

    Citibank N.A.      53,200        10/05/18        USD       29.69        USD       1,659        (82,965 ) 

Canadian Natural Resources Ltd.

    Credit Suisse International      67,900        10/09/18        CAD       45.29        CAD       2,865        (660 ) 

TOTAL SA

    Barclays Bank PLC      27,900        10/17/18        EUR       53.06        EUR       1,562        (97,862 ) 

Noble Energy, Inc.

    Citibank N.A.      53,200        10/22/18        USD       29.69        USD       1,659        (96,686 ) 

TOTAL SA

    Morgan Stanley & Co. International PLC      29,300        10/23/18        EUR       54.81        EUR       1,641        (62,261 ) 

 

 

     3  

Schedule of Investments  (unaudited) (continued)

September 30, 2018

   

BlackRock Energy and Resources Trust (BGR)

 

OTC Options Written (continued)

 

Description    Counterparty    Number of
Contracts		      Expiration
Date		     

Exercise
Price

      Notional
Amount (000)		      Value  

Call

                      

Baker Hughes a GE Co.

    Citibank N.A.      15,700        10/24/18        USD     $ 32.94        USD       531      $ (25,046 ) 

Royal Dutch Shell PLC — ADR, Class A

    Goldman Sachs International      95,700        10/24/18        GBP       25.06        GBP       2,518        (173,799 ) 

Suncor Energy, Inc.

    Deutsche Bank AG      98,200        10/24/18        CAD       51.80        CAD       4,908        (31,961 ) 

BP PLC

    Credit Suisse International      262,800        10/26/18        GBP       5.60        GBP       1,545        (109,347 ) 

Baker Hughes a GE Co.

    Citibank N.A.      15,700        10/26/18        USD       32.94        USD       531        (25,707 ) 

CNOOC Ltd.

    Citibank N.A.      207,000        10/26/18        HKD       13.71        HKD       3,209        (47,970 ) 

Oil Search Ltd.

    Citibank N.A.      129,200        10/30/18        AUD       8.68        AUD       1,168        (43,462 ) 

BP PLC

    Barclays Bank PLC      230,000        10/31/18        GBP       5.56        GBP       1,352        (112,128 ) 

CNOOC Ltd.

    JPMorgan Chase Bank N.A.      261,000        10/31/18        HKD       14.57        HKD       4,046        (36,910 ) 

Encana Corp.

    Goldman Sachs International      113,100        10/31/18        CAD       17.52        CAD       1,915        (32,921 ) 

TOTAL SA

    Citibank N.A.      47,000        10/31/18        EUR       54.13        EUR       2,632        (134,259 ) 

BP PLC

    Credit Suisse International      311,000        11/01/18        GBP       5.67        GBP       1,829        (113,853 ) 

CNOOC Ltd.

    Goldman Sachs International      300,000        11/07/18        HKD       15.39        HKD       4,650        (26,050 ) 

CNOOC Ltd.

    UBS AG      513,000        11/07/18        HKD       14.99        HKD       7,952        (57,651 ) 

Galp Energia SGPS SA

    Goldman Sachs International      36,900        11/07/18        EUR       16.47        EUR       630        (34,428 ) 

TOTAL SA

    Credit Suisse International      30,000        11/07/18        EUR       54.09        EUR       1,680        (89,745 ) 

Baker Hughes a GE Co.

    Morgan Stanley & Co. International PLC      58,000        11/12/18        USD       33.59        USD       1,962        (90,795 ) 

BP PLC

    UBS AG      539,000        11/14/18        GBP       5.98        GBP       3,169        (62,504 ) 

Galp Energia SGPS SA

    Barclays Bank PLC      36,800        11/20/18        EUR       17.31        EUR       629        (16,533 ) 

Oil Search Ltd.

    Morgan Stanley & Co. International PLC      190,000        11/20/18        AUD       9.32        AUD       1,718        (23,593 ) 

TOTAL SA

    Credit Suisse International      16,100        11/20/18        EUR       56.37        EUR       902        (25,405 ) 
                     

 

 

  
                      $ (1,747,105 ) 
                     

 

 

  

 

 

4   

Schedule of Investments  (unaudited) (continued)

September 30, 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 and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 — Unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that 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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

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

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

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Common Stocks:

                  

Energy Equipment & Services

   $ 33,928,218        $ —        $ —        $ 33,928,218  

Oil, Gas & Consumable Fuels

     337,521,856          98,923,723          —          436,445,579  

Short-Term Securities

     4,480,032          —          —          4,480,032  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 375,930,106        $ 98,923,723        $ —        $ 474,853,829  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                  

Liabilities:

                 

Equity contracts

   $ (2,585,602 )       $ (1,880,443 )       $ —        $ (4,466,045 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a) 

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

 

During the period ended September 30, 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: November 19, 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: November 19, 2018
By:      /s/ Neal J. Andrews                          
     Neal J. Andrews
     Chief Financial Officer (principal financial officer) of
     BlackRock Energy and Resources Trust
Date: November 19, 2018