<![CDATA[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: 10/31/2014

Date of reporting period: 07/31/2014


Item 1 – Schedule of Investments


Schedule of Investments July 31, 2014 (Unaudited)      BlackRock Energy and Resources Trust (BGR)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Energy Equipment & Services — 10.1%

     

Cameron International Corp. (a)(b)

     203,260       $ 14,413,167   

Halliburton Co. (b)

     446,900         30,831,631   

Schlumberger Ltd. (b)

     372,024         40,323,681   
     

 

 

 
                85,568,479   

Oil, Gas & Consumable Fuels — 86.9%

     

Anadarko Petroleum Corp. (b)

     371,833         39,730,356   

BG Group PLC

     826,110         16,290,327   

Cairn Energy PLC (a)

     1,856,000         5,507,768   

Canadian Natural Resources Ltd.

     497,000         21,664,979   

Canadian Oil Sands Ltd. (b)

     316,013         6,750,074   

Chevron Corp. (b)(c)

     664,828         85,922,371   

Cimarex Energy Co. (b)

     88,300         12,275,466   

ConocoPhillips (b)

     598,900         49,409,250   

CONSOL Energy, Inc. (b)

     218,021         8,463,575   

Devon Energy Corp. (b)

     313,000         23,631,500   

Enbridge, Inc. (b)

     223,800         10,970,890   

Encana Corp. (b)

     985,400         21,219,968   

EOG Resources, Inc. (b)

     227,600         24,908,544   

Exxon Mobil Corp. (b)(c)

     792,100         78,370,374   

Imperial Oil Ltd. (b)

     196,000         10,057,504   

Kosmos Energy Ltd. (a)

     881,407         8,487,950   

Murphy Oil Corp. (b)

     128,500         7,983,705   

Noble Energy, Inc. (b)

     313,092         20,817,487   

Oil Search Ltd.

     2,232,863         19,529,533   

Phillips 66 (b)

     186,300         15,110,793   

Pioneer Natural Resources Co. (b)

     109,500         24,249,870   

Range Resources Corp. (b)

     283,900         21,460,001   
Common Stocks    Shares      Value  

Oil, Gas & Consumable Fuels (concluded)

     

Royal Dutch Shell PLC — ADR (b)

     1,216,700       $ 99,562,561   

Southwestern Energy Co. (a)(b)

     533,200         21,637,256   

Statoil ASA

     763,526         21,817,433   

Total SA

     558,500         36,020,210   

TransCanada Corp. (b)

     445,000         22,324,483   
     

 

 

 
                734,174,228   

Total Long-Term Investments

(Cost — $690,027,038) — 97.0%

              819,742,707   
     
     
Short-Term Securities                

Blackrock Liquidity Funds, TempFund, Institutional Class, 0.03% (d)(e)

     31,063,246         31,063,246   

Total Short-Term Securities

(Cost — $31,063,246) — 3.7%

              31,063,246   

Total Investments Before Options Written

(Cost — $721,090,284) — 100.7%

              850,805,953   
     
     
Options Written                

(Premiums Received — $5,802,244) — (0.4)%

              (2,901,029

Total Investments Net of Options Written — 100.3%

        847,904,924   

Liabilities in Excess of Other Assets — (0.3)%

        (2,734,324
     

 

 

 

Net Assets — 100.0%

      $ 845,170,600   
     

 

 

 
 
Notes to Schedule of Investments

 

* As of July 31, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 736,209,570   
  

 

 

 

Gross unrealized appreciation

   $ 138,911,693   

Gross unrealized depreciation

     (24,315,310
  

 

 

 

Net unrealized appreciation

   $ 114,596,383   
  

 

 

 

 

(a) Non-income producing security.

 

(b) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(c) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

(d) Represents the current yield as of report date.

 

(e) Investments in issuers considered to be an affiliate of the Trust during the period ended July 31, 2014, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares Held at
October 31, 2013
     Net
Activity
    Shares Held at
July 31, 2014
     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     60,810,523         (29,747,277     31,063,246       $ 12,845   

BlackRock Liquidity Series, LLC Money Market Series

                          $ 16,642   

 

Portfolio Abbreviations               

ADR

   American Depositary Receipt    EUR    Euro    NOK    Norwegian Krone

AUD

   Australian Dollar    GBP    British Pound    USD    U.S. Dollar

CAD

   Canadian Dollar            

 

          JULY 31, 2014    1


Schedule of Investments (continued)      BlackRock Energy and Resources Trust (BGR)   

 

 

Ÿ  

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

 

Ÿ  

Exchange-traded options written as of July 31, 2014 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Chevron Corp.

     Call         USD         133.00         8/01/14         87       $ (1,392

ConocoPhillips

     Call         USD         87.00         8/01/14         515         (2,575

Exxon Mobil Corp.

     Call         USD         103.00         8/01/14         617         (926

Chevron Corp.

     Call         USD         129.00         8/08/14         953         (166,299

ConocoPhillips

     Call         USD         87.00         8/08/14         515         (5,408

EOG Resources, Inc.

     Call         USD         119.00         8/08/14         253         (10,626

Exxon Mobil Corp.

     Call         USD         104.00         8/08/14         768         (4,608

Halliburton Co.

     Call         USD         71.50         8/08/14         553         (11,613

Pioneer Natural Resources Co.

     Call         USD         230.00         8/08/14         96         (23,520

Pioneer Natural Resources Co.

     Call         USD         235.00         8/08/14         96         (16,320

Schlumberger Ltd.

     Call         USD         118.00         8/08/14         649         (3,245

Murphy Oil Corp.

     Call         USD         65.00         8/11/14         225         (5,464

CONSOL Energy, Inc.

     Call         USD         47.25         8/16/14         382         (1

Southwestern Energy Co.

     Call         USD         47.75         8/16/14         212         (11

Anadarko Petroleum Corp.

     Call         USD         110.00         8/18/14         89         (13,394

Anadarko Petroleum Corp.

     Call         USD         115.00         8/18/14         89         (4,717

Cameron International Corp.

     Call         USD         67.50         8/18/14         712         (277,680

Canadian Oil Sands Ltd.

     Call         CAD         24.00         8/18/14         300         (3,027

Canadian Oil Sands Ltd.

     Call         CAD         25.00         8/18/14         465         (1,279

Chevron Corp.

     Call         USD         136.00         8/18/14         254         (4,826

ConocoPhillips

     Call         USD         85.00         8/18/14         220         (8,910

Devon Energy Corp.

     Call         USD         80.00         8/18/14         814         (34,188

Devon Energy Corp.

     Call         USD         81.00         8/18/14         281         (8,711

Enbridge, Inc.

     Call         CAD         53.00         8/18/14         525         (39,723

Encana Corp.

     Call         CAD         27.00         8/18/14         427         (1,566

Encana Corp.

     Call         CAD         28.00         8/18/14         433         (1,191

EOG Resources, Inc.

     Call         USD         120.00         8/18/14         300         (13,200

Exxon Mobil Corp.

     Call         USD         102.75         8/18/14         769         (22,059

Imperial Oil Ltd.

     Call         CAD         58.00         8/18/14         343         (4,404

Murphy Oil Corp.

     Call         USD         67.50         8/18/14         225         (4,500

Noble Energy, Inc.

     Call         USD         77.50         8/18/14         225         (2,250

Noble Energy, Inc.

     Call         USD         80.00         8/18/14         436         (2,180

Phillips 66

     Call         USD         87.50         8/18/14         326         (3,260

Pioneer Natural Resources Co.

     Call         USD         230.00         8/18/14         96         (34,080

Pioneer Natural Resources Co.

     Call         USD         235.00         8/18/14         96         (21,360

Range Resources Corp.

     Call         USD         80.00         8/18/14         167         (6,262

Royal Dutch Shell PLC — ADR

     Call         USD         82.50         8/18/14         592         (31,080

Schlumberger Ltd.

     Call         USD         120.00         8/18/14         75         (338

Southwestern Energy Co.

     Call         USD         46.00         8/18/14         79         (474

TransCanada Corp.

     Call         CAD         52.00         8/18/14         600         (154,904

Cimarex Energy Co.

     Call         USD         145.05         8/22/14         20         (5,260

ConocoPhillips

     Call         USD         85.00         8/22/14         426         (24,069

EOG Resources, Inc.

     Call         USD         119.00         8/22/14         271         (22,222

Schlumberger Ltd.

     Call         USD         118.00         8/22/14         75         (1,200

Anadarko Petroleum Corp.

     Call         USD         109.00         8/26/14         178         (46,268

Chevron Corp.

     Call         USD         131.00         8/29/14         778         (113,977

ConocoPhillips

     Call         USD         85.00         8/29/14         420         (29,610

Exxon Mobil Corp.

     Call         USD         105.00         8/29/14         309         (6,798

 

 

2         JULY 31, 2014     


Schedule of Investments (continued)      BlackRock Energy and Resources Trust (BGR)   

 

 

Ÿ  

Exchange-traded options written as of July 31, 2014 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Chevron Corp.

     Call         USD         136.00         9/05/14         254       $ (12,700

Exxon Mobil Corp.

     Call         USD         105.00         9/05/14         309         (8,343

Halliburton Co.

     Call         USD         74.00         9/05/14         1,010         (38,380

Schlumberger Ltd.

     Call         USD         111.00         9/05/14         503         (83,498

Anadarko Petroleum Corp.

     Call         USD         108.75         9/12/14         473         (166,477

Phillips 66

     Call         USD         83.50         9/15/14         326         (44,466

Canadian Oil Sands Ltd.

     Call         CAD         25.00         9/22/14         300         (2,201

Encana Corp.

     Call         CAD         25.00         9/22/14         830         (22,456

Imperial Oil Ltd.

     Call         CAD         58.00         9/22/14         343         (17,931

Range Resources Corp.

     Call         USD         82.50         9/22/14         167         (14,612

Range Resources Corp.

     Call         USD         85.00         9/22/14         166         (9,130

Southwestern Energy Co.

     Call         USD         42.00         9/22/14         955         (96,455

Southwestern Energy Co.

     Call         USD         46.00         9/22/14         193         (4,343

TransCanada Corp.

     Call         CAD         55.50         9/22/14         947         (72,522

Anadarko Petroleum Corp.

     Call         USD         108.75         9/26/14         473         (198,231

Total

                  $ (1,992,720
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of July 31, 2014 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Cimarex Energy Co.

   Credit Suisse International      Call         USD         139.25         8/04/14         24,500       $ (23,654

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         81.13         8/04/14         118,300         (87,822

Canadian Natural Resources Ltd.

   Citibank N.A.      Call         CAD         47.72         8/05/14         34,800         (14,346

Total SA

   Morgan Stanley & Co. International PLC      Call         EUR         53.49         8/06/14         67,300         (14

Range Resources Corp.

   Citibank N.A.      Call         USD         90.00         8/11/14         24,200           

Enbridge, Inc.

   Citibank N.A.      Call         CAD         51.01         8/20/14         26,000         (58,302

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         81.75         8/20/14         94,500         (89,793

Cimarex Energy Co.

   Credit Suisse International      Call         USD         139.25         8/22/14         24,500         (104,771

Encana Corp.

   Goldman Sachs International      Call         CAD         25.85         8/25/14         64,000         (2,543

Range Resources Corp.

   Citibank N.A.      Call         USD         90.00         8/25/14         24,200         (147

BG Group PLC

   Deutsche Bank AG      Call         GBP         12.28         8/26/14         63,100         (14,001

Oil Search Ltd.

   Morgan Stanley & Co. International PLC      Call         AUD         9.68         8/26/14         195,000         (13,411

Statoil ASA

   Deutsche Bank AG      Call         NOK         190.82         8/26/14         155,000         (10,077

Total SA

   Goldman Sachs International      Call         EUR         53.91         8/26/14         64,000         (1,078

Canadian Natural Resources Ltd.

   Deutsche Bank AG      Call         CAD         49.00         8/27/14         75,000         (46,052

Oil Search Ltd.

   Morgan Stanley & Co. International PLC      Call         AUD         9.72         9/03/14         195,000         (15,157

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         81.75         9/03/14         94,500         (105,004

Statoil ASA

   Deutsche Bank AG      Call         NOK         191.66         9/03/14         110,000         (9,834

Total SA

   Deutsche Bank AG      Call         EUR         53.46         9/05/14         64,000         (4,354

Kosmos Energy Ltd.

   Citibank N.A.      Call         USD         11.08         9/08/14         95,600         (4,102

Noble Energy, Inc.

   Citibank N.A.      Call         USD         74.91         9/08/14         38,300         (6,424

BG Group PLC

   UBS AG      Call         GBP         12.27         9/09/14         226,000         (61,113

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         83.45         9/09/14         59,300         (32,472

Canadian Natural Resources Ltd.

   Citibank N.A.      Call         CAD         48.10         9/16/14         64,200         (68,706

Oil Search Ltd.

   Bank of America N.A.      Call         AUD         9.53         9/24/14         392,000         (70,285

Kosmos Energy Ltd.

   Citibank N.A.      Call         USD         10.36         9/29/14         59,000         (11,813

Noble Energy, Inc.

   Citibank N.A.      Call         USD         74.91         9/29/14         38,300         (15,564

Southwestern Energy Co.

   Deutsche Bank AG      Call         USD         43.75         10/03/14         43,000         (29,463

Kosmos Energy Ltd.

   Morgan Stanley & Co. International PLC      Call         USD         10.64         10/14/14         45,500         (8,007

Total

                     $ (908,309
                    

 

 

 

 

 

          JULY 31, 2014    3


Schedule of Investments (concluded)      BlackRock Energy and Resources Trust (BGR)   

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

 

  Ÿ  

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)

 

  Ÿ  

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

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.

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

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of July 31, 2014:

 

      Level 1     Level 2     Level 3      Total  

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Energy Equipment & Services

   $ 85,568,479                     $ 85,568,479   

Oil, Gas & Consumable Fuels

     635,008,957      $ 99,165,271                734,174,228   

Short-Term Securities

     31,063,246                       31,063,246   

Total

   $ 751,640,682      $ 99,165,271              $ 850,805,953   
  

 

 

 
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (1,504,484   $ (1,396,545           $ (2,901,029

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

       

The carrying amount for certain of the Trust’s assets approximates fair value for financial reporting purposes. As of July 31, 2014, such assets are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

         

Cash

   $ 6,930                     $ 6,930   

Foreign currency at value

     198,980                       198,980   

Total

   $ 205,910                     $ 205,910   
  

 

 

 

There were no transfers between levels during the period ended July 31, 2014.

 

4         JULY 31, 2014     


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

 

2


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

 

BlackRock Energy and Resources Trust
By:         /s/ John M. Perlowski
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Energy and Resources Trust
Date: September 25, 2014

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

 

By:         /s/ John M. Perlowski
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Energy and Resources Trust
Date: September 25, 2014
By:     /s/ Neal J. Andrews
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Energy and Resources Trust
Date: September 25, 2014

 

3