March 21 (Bloomberg) -- NGP Capital Resources Co., the Houston-based fund that invests in energy companies, fell the most in five months after cutting its dividend by a third because of first-quarter earnings.
NGP dropped 7.8 percent to $6.74 at the close in New York, the biggest decline since Oct. 3. Before today, the stock had risen 1.7 percent this year.
The company declared a 12 cents-a-share quarterly dividend today, a decline from the 18 cents it distributed each quarter of 2011.
The payout “closely matches our current earnings rate,” Chief Executive Officer Steve Gardner said in a statement. “Our earnings rate for the remainder of 2012 will improve as we redeploy cash proceeds received in 2011.”
The stock has one buy recommendation and three holds from analysts. NGP is managed by closely held NGP Investment Advisor LP, an affiliate of Irving, Texas-based NGP Energy Capital Management LLC.
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