FS Energy & Power Fund - FORM 10-Q

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TABLE OF CONTENTS

Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q


ý		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2014
o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-00841

FS Energy and Power Fund
(Exact name of registrant as specified in its charter)


Delaware (State or other jurisdiction of incorporation or organization)		27-6822130 (I.R.S. Employer Identification No.)
Cira Centre 2929 Arch Street, Suite 675 Philadelphia, Pennsylvania 19104 (Address of principal executive office)		19104 (Zip Code)

Registrant's telephone number, including area code: (215) 495-1150

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer o		Accelerated filer o		Non-accelerated filer ý (Do not check if a smaller reporting company)		Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý.

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

The issuer had 244,072,801 common shares of beneficial interest outstanding as of July 29, 2014.

Table of Contents

TABLE OF CONTENTS



PART I—FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	1
	Consolidated Balance Sheets as of June 30, 2014 (Unaudited) and December 31, 2013	1
	Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2014 and 2013	2
	Unaudited Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2014 and 2013	3
	Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2014 and 2013	4
	Consolidated Schedules of Investments as of June 30, 2014 (Unaudited) and December 31, 2013	5
	Notes to Unaudited Consolidated Financial Statements	18
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	47
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	74
ITEM 4.	CONTROLS AND PROCEDURES	75
PART II—OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	76
ITEM 1A.	RISK FACTORS	76
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	76
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	77
ITEM 4.	MINE SAFETY DISCLOSURES	77
ITEM 5.	OTHER INFORMATION	77
ITEM 6.	EXHIBITS	78
	SIGNATURES	82

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

FS Energy and Power Fund

Consolidated Balance Sheets

(in thousands, except share and per share amounts)

	June 30, 2014 (Unaudited)			December 31, 2013

Assets
Investments, at fair value (amortized cost—$2,866,003 and $2,249,954, respectively)	$	2,954,968		$	2,300,201
Cash		142,571			91,084
Receivable for investments sold and repaid		22,680			8,306
Interest receivable		29,285			25,467
Receivable for common shares purchased		182			135
Deferred financing costs		3,471			3,445
Prepaid expenses and other assets		150			21


Total assets	$	3,153,307		$	2,428,659


Liabilities
Payable for investments purchased	$	87,819		$	81,509
Credit facilities payable		710,000			624,174
Shareholder distributions payable		—			10,700
Management fees payable		14,678			10,751
Accrued capital gains incentive fees⁽¹⁾		19,573			13,850
Subordinated income incentive fees payable⁽¹⁾		10,013			6,786
Administrative services expense payable		1,461			418
Interest payable		2,063			2,005
Trustees' fees payable		227			251
Other accrued expenses and liabilities		3,287			1,978


Total liabilities		849,121			752,422


Commitments and contingencies⁽²⁾
Shareholders' equity
Preferred shares, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding		—			—
Common shares, $0.001 par value, 450,000,000 shares authorized, 233,800,135 and 173,532,259 shares issued and outstanding, respectively		234			174
Capital in excess of par value		2,209,277			1,622,893
Accumulated undistributed net realized gains on investments and gain/loss on foreign currency⁽³⁾		15,082			10,898
Accumulated distributions in excess of net investment income⁽³⁾		(9,374	)		(7,946	)
Net unrealized appreciation (depreciation) on investments and unrealized gain/loss on foreign currency		88,967			50,218


Total shareholders' equity		2,304,186			1,676,237


Total liabilities and shareholders' equity	$	3,153,307		$	2,428,659


Net asset value per common share at period end	$	9.86		$	9.66

(1): See Note 2 and Note 4 for a discussion of the methodology employed by the Company in calculating the capital gains incentive fees and subordinated income incentive fees.
(2): See Note 9 for a discussion of the Company's commitments and contingencies.
(3): See Note 5 for a discussion of the sources of distributions paid by the Company.

See notes to unaudited consolidated financial statements.

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FS Energy and Power Fund

Unaudited Consolidated Statements of Operations

(in thousands, except share and per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,

	2014			2013			2014			2013
Investment income
Interest income	$	61,752		$	23,245		$	112,719		$	41,188
Fee income		10,255			927			15,844			3,895


Total investment income		72,007			24,172			128,563			45,083


Operating expenses
Management fees		14,678			6,654			27,545			11,365
Capital gains incentive fees⁽¹⁾		3,015			(1,621	)		8,580			1,989
Subordinated income incentive fees⁽¹⁾		10,013			—			14,623			753
Administrative services expenses		1,008			544			1,943			997
Share transfer agent fees		660			475			1,307			875
Accounting and administrative fees		288			168			554			308
Interest expense		4,096			1,415			8,433			2,657
Trustees' fees		135			199			416			399
Other general and administrative expenses		1,033			767			1,737			1,210


Total operating expenses		34,926			8,601			65,138			20,553
Income taxes		51			—			107			—


Total expenses		34,977			8,601			65,245			20,553


Net investment income		37,030			15,571			63,318			24,530


Realized and unrealized gain/loss
Net realized gain (loss) on investments		2,411			3,760			4,691			3,421
Net realized gain (loss) on total return swap⁽²⁾		—			9,817			—			12,736
Net realized gain (loss) on foreign currency		31			—			(507	)		10
Net change in unrealized appreciation (depreciation) on investments		12,697			(15,946	)		38,718			(3,079	)
Net change in unrealized appreciation (depreciation) on total return swap⁽²⁾		—			(5,731	)		—			(3,141	)
Net change in unrealized gain (loss) on foreign currency		(50	)		(25	)		31			(30	)


Total net realized and unrealized gain/loss on investments		15,089			(8,125	)		42,933			9,917


Net increase (decrease) in net assets resulting from operations	$	52,119		$	7,446		$	106,251		$	34,447




Per share information—basic and diluted
Net increase (decrease) in net assets resulting from operations (Earnings per Share)	$	0.24		$	0.07		$	0.52		$	0.39




Weighted average shares outstanding		219,030,100			100,028,169			203,738,493			87,762,307

(1): See Note 2 and Note 4 for a discussion of the methodology employed by the Company in calculating the capital gains incentive fees and subordinated income incentive fees.
(2): On May 24, 2013, the Company terminated its total return swap agreement with Citibank, N.A.

See notes to unaudited consolidated financial statements.

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FS Energy and Power Fund

Unaudited Consolidated Statements of Changes in Net Assets

(in thousands)

	Six Months Ended June 30,

	2014			2013
Operations
Net investment income	$	63,318		$	24,530
Net realized gain (loss) on investments, total return swap and foreign currency⁽¹⁾		4,184			16,167
Net change in unrealized appreciation (depreciation) on investments		38,718			(3,079	)
Net change in unrealized appreciation (depreciation) on total return swap⁽¹⁾		—			(3,141	)
Net change in unrealized gain (loss) on foreign currency		31			(30	)


Net increase (decrease) in net assets resulting from operations		106,251			34,447


Shareholder distributions⁽²⁾
Distributions from net investment income		(64,746	)		(29,182	)


Net decrease in net assets resulting from shareholder distributions		(64,746	)		(29,182	)


Capital share transactions
Issuance of common shares⁽³⁾		544,468			443,853
Reinvestment of shareholder distributions⁽³⁾		48,357			16,554
Repurchases of common shares⁽³⁾		(3,250	)		(1,017	)
Offering costs		(3,131	)		(2,400	)


Net increase in net assets resulting from capital share transactions		586,444			456,990


Total increase in net assets		627,949			462,255
Net assets at beginning of period		1,676,237			602,889


Net assets at end of period	$	2,304,186		$	1,065,144




Accumulated distributions in excess of net investment income⁽²⁾	$	(9,374	)	$	(8,006	)

(1): On May 24, 2013, the Company terminated its total return swap agreement with Citibank, N.A.
(2): See Note 5 for a discussion of the sources of distributions paid by the Company.
(3): See Note 3 for a discussion of transactions with respect to the Company's common shares during the six months ended June 30, 2014 and 2013.

See notes to unaudited consolidated financial statements.

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FS Energy and Power Fund

Unaudited Consolidated Statements of Cash Flows

(in thousands)

	Six Months Ended June 30,

	2014			2013
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations	$	106,251		$	34,447
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Purchases of investments		(1,059,647	)		(1,056,798	)
Paid-in-kind interest		(6,206	)		—
Proceeds from sales and repayments of investments		460,436			348,473
Net realized (gain) loss on investments		(4,691	)		(3,421	)
Net change in unrealized (appreciation) depreciation on investments		(38,718	)		3,079
Net change in unrealized (appreciation) depreciation on total return swap⁽¹⁾		—			3,141
Accretion of discount		(5,941	)		(1,332	)
Amortization of deferred financing costs		824			369
(Increase) decrease in due from counterparty		—			56,876
(Increase) decrease in receivable for investments sold and repaid		(14,374	)		(78,052	)
(Increase) decrease in interest receivable		(3,818	)		(12,306	)
(Increase) decrease in receivable due on total return swap⁽¹⁾		—			329
(Increase) decrease in prepaid expenses and other assets		(129	)		87
Increase (decrease) in payable for investments purchased		6,310			144,530
Increase (decrease) in management fees payable		3,927			3,132
Increase (decrease) in expense recoupment payable to sponsor⁽²⁾		—			(1,083	)
Increase (decrease) in accrued capital gains incentive fees		5,723			1,036
Increase (decrease) in subordinated income incentive fees payable		3,227			—
Increase (decrease) in administrative services expense payable		1,043			240
Increase (decrease) in interest payable		58			186
Increase (decrease) in trustees' fees payable		(24	)		240
Increase (decrease) in other accrued expenses and liabilities		1,309			306


Net cash used in operating activities		(544,440	)		(556,521	)


Cash flows from financing activities
Issuance of common shares		544,421			443,894
Reinvestment of shareholder distributions		48,357			16,554
Repurchases of common shares		(3,250	)		(1,017	)
Offering costs		(3,131	)		(2,400	)
Shareholder distributions		(75,446	)		(26,482	)
Borrowings under credit facilities⁽³⁾		85,826			167,768
Deferred financing costs paid		(850	)		(1,257	)


Net cash provided by financing activities		595,927			597,060


Total increase (decrease) in cash		51,487			40,539
Cash at beginning of period		91,084			48,986


Cash at end of period	$	142,571		$	89,525




Supplemental disclosure
Excise taxes paid	$	225		$	—

(1): On May 24, 2013, the Company terminated its total return swap agreement with Citibank, N.A.
(2): See Note 4 for a discussion of expense recoupments paid by the Company to its investment adviser and affiliates.
(3): See Note 8 for a discussion of the Company's credit facilities. During the six months ended June 30, 2014 and 2013, the Company paid $7,551 and $2,102, respectively, in interest expense on the credit facilities.

See notes to unaudited consolidated financial statements.

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FS Energy and Power Fund

Unaudited Consolidated Schedule of Investments

As of June 30, 2014

(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate^(b)	Floor	Maturity	Principal Amount^(c)		Amortized Cost		Fair Value^(d)
Senior Secured Loans—First Lien—37.1%
Allied Wireline Services, LLC	(j)	Service & Equipment	L+800	1.5%	2/28/19	$	108,625	$	106,930	$	108,625
Alon USA Partners, L.P.	(g)(l)	Downstream	L+800	1.3%	11/26/18		4,104		4,251		4,279
AP Exhaust Acquisition, LLC	(h)	Service & Equipment	L+775	1.5%	1/16/21		15,000		15,000		15,000
Astoria Generating Co.	(g)(h)(k)	Power	L+700	1.5%	10/26/17		26,538		27,401		27,334
Atlas Energy, L.P.	(g)(l)	Midstream	L+550	1.0%	7/31/19		5,514		5,466		5,600
Azure Midstream Energy LLC	(g)	Midstream	L+550	1.0%	11/15/18		13,163		12,985		13,302
BBH Operating LLC		Upstream	Prime+500	3.3%	2/26/15		18,500		18,500		18,546
BBH Operating LLC	(e)	Upstream	Prime+500	3.3%	2/26/15		11,500		11,500		11,529
BL Sand Hills Unit, L.P.		Upstream	Prime+650	3.5%	12/17/17		7,787		6,763		7,281
BL Sand Hills Unit, L.P.	(e)	Upstream	Prime+650	3.5%	12/17/17		51,652		44,857		48,295
BlackBrush TexStar L.P.	(f)(g)(h)	Midstream	L+650	1.3%	6/4/19		69,999		69,679		70,760
Boomerang Tube, LLC	(f)(g)	Service & Equipment	L+950	1.5%	10/11/17		19,108		18,941		17,388
Buffalo Gulf Coast Terminals LLC	(g)	Midstream	L+400	1.3%	10/31/17		6,520		6,624		6,561
Crestwood Holdings LLC	(g)(h)(j)	Midstream	L+600	1.0%	6/19/19		33,086		33,258		33,675
EnergySolutions, LLC	(f)(g)	Service & Equipment	L+575	1.0%	5/29/20		21,818		21,385		22,100
EP Acquisition LLC		Upstream	Prime+500	3.3%	3/31/15		750		750		752
FR Dixie Acquisition Corp.	(g)(k)	Service & Equipment	L+475	1.0%	12/18/20		10,224		10,237		10,288
FR Utility Services LLC	(g)(k)	Service & Equipment	L+575	1.0%	10/18/19		15,078		14,977		15,248
Harvey Gulf International Marine, LLC	(g)	Service & Equipment	L+450	1.0%	6/18/20		7,935		7,844		7,902
Hudson Products Holdings Inc.	(g)	Service & Equipment	L+400	1.0%	3/15/19		5,792		5,778		5,819
Industrial Group Intermediate Holdings, LLC		Service & Equipment	L+800	1.3%	5/31/20		14,962		14,962		14,962
Larchmont Resources, LLC	(g)(h)(k)	Upstream	L+725	1.0%	8/7/19		21,488		21,491		21,971
MB Precision Holdings LLC	(h)	Service & Equipment	L+725	1.3%	1/23/20		13,433		13,433		13,433
McJunkin Red Man Corp.	(g)(l)	Service & Equipment	L+400	1.0%	11/8/19		1,777		1,777		1,791
Moxie Liberty LLC	(g)(h)(j)(k)	Power	L+650	1.0%	8/21/20		32,432		32,571		33,405
Moxie Patriot LLC	(j)	Power	L+575	1.0%	12/19/20		2,000		2,044		2,060
NES Global Talent Finance US LLC	(g)(h)(l)	Service & Equipment	L+550	1.0%	10/3/19		17,775		17,550		17,819
Panda Sherman Power, LLC	(f)(g)(h)(k)	Power	L+750	1.5%	9/14/18		16,909		17,242		17,363
Panda Temple Power, LLC (TLA)	(j)	Power	L+700	1.5%	7/17/18		16,200		15,999		16,605
Panda Temple Power, LLC (TLB)	(g)(h)(j)	Power	L+1000	1.5%	7/17/18		40,000		39,390		41,083
Panda Temple Power II, LLC	(g)(h)	Power	L+600	1.3%	4/3/19		23,809		24,324		24,404
PeroxyChem LLC	(h)(j)	Service & Equipment	L+650	1.0%	2/28/20		13,965		13,809		14,105
ProPetro Services, Inc.	(h)	Service & Equipment	L+625	1.0%	9/30/19		8,663		8,617		8,771
San Pedro Development, LLC		Upstream	Prime+400		6/30/15		21,200		17,685		20,458

See notes to unaudited consolidated financial statements.

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FS Energy and Power Fund

Unaudited Consolidated Schedule of Investments (continued)

As of June 30, 2014

(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate^(b)	Floor	Maturity	Principal Amount^(c)		Amortized Cost			Fair Value^(d)
Sprint Industrial Holdings LLC	(h)	Service & Equipment	L+575	1.3%	11/14/19	$	14,850	$	14,833		$	14,961
Stallion Oilfield Holdings, Inc.	(f)(g)(h)	Service & Equipment	L+675	1.3%	6/19/18		63,868		63,744			64,906
Swift Worldwide Resources US Holdings Corp.	(h)(j)	Service & Equipment	L+800	1.3%	4/30/19		59,961		59,961			59,961
Tervita Corp.	(g)(h)(k)(l)	Service & Equipment	L+500	1.3%	5/15/18		18,994		18,819			19,093
Total Safety U.S., Inc.	(g)	Service & Equipment	L+450	1.3%	3/13/20		4,416		4,479			4,355
TPF II LC, LLC	(g)(h)	Power	L+550	1.0%	8/21/19		17,588		17,616			17,940
Wastequip, LLC	(g)	Service & Equipment	L+450	1.0%	8/9/19		8,727		8,755			8,793
Willbros Group, Inc.	(g)(h)(l)	Service & Equipment	L+975	1.3%	8/7/19		22,085		21,440			22,499


Total Senior Secured Loans—First Lien									893,667			911,022
Unfunded Loan Commitments									(56,357	)		(56,357	)


Net Senior Secured Loans—First Lien									837,310			854,665


Senior Secured Loans—Second Lien—39.5%
Alison US LLC	(j)(k)(l)	Service & Equipment	L+850	1.0%	6/17/22		22,222		21,333			21,750
American Energy—Utica, LLC	(h)(j)	Upstream	L+400, 5.5% PIK (5.5% Max PIK)	1.5%	9/30/18		119,306		119,306			121,096
American Energy—Utica, LLC		Upstream	L+400, 5.5% PIK (5.5% Max PIK)	1.5%	9/30/18		81,010		81,010			82,225
Ameriforge Group Inc.	(f)(h)(j)(k)	Service & Equipment	L+750	1.3%	12/21/20		33,950		34,499			34,798
Brock Holdings III, Inc.	(f)(h)(j)	Service & Equipment	L+825	1.8%	3/16/18		33,605		33,848			33,983
Chief Exploration & Development LLC	(k)	Upstream	L+650	1.0%	5/16/21		19,576		19,489			20,066
Citrus Energy Appalachia, LLC	(g)(j)	Upstream	L+850	1.3%	7/26/18		56,574		55,131			56,716

See notes to unaudited consolidated financial statements.

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FS Energy and Power Fund

Unaudited Consolidated Schedule of Investments (continued)

As of June 30, 2014

(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate^(b)	Floor	Maturity	Principal Amount^(c)		Amortized Cost		Fair Value^(d)
Consolidated Precision Products Corp.	(f)(g)(h)(j)	Service & Equipment	L+775	1.0%	4/30/21	$	33,500	$	33,345	$	33,898
Drew Marine Group Inc.	(h)(j)(l)	Service & Equipment	L+700	1.0%	5/19/21		10,000		9,977		10,150
Extraction Oil & Gas Holdings, LLC		Upstream	11.0%		5/29/19		55,000		55,000		55,000
Fieldwood Energy LLC	(k)	Upstream	L+713	1.3%	9/30/20		8,547		8,846		8,830
Filtration Group Corp.	(g)	Service & Equipment	L+725	1.0%	11/21/21		2,632		2,607		2,698
Horn Intermediate Holdings, Inc.	(h)	Service & Equipment	L+775	1.3%	10/2/18		67,500		67,500		68,175
Husky Injection Molding Systems Ltd.	(f)(k)(l)	Service & Equipment	L+625	1.0%	6/30/22		3,000		2,985		3,026
Jonah Energy LLC	(f)	Upstream	L+650	1.0%	5/8/21		25,685		25,305		25,952
Neff Rental LLC	(f)	Service & Equipment	L+625	1.0%	6/9/21		5,435		5,408		5,431
Oxbow Carbon LLC	(h)	Midstream	L+700	1.0%	1/19/20		15,000		14,866		15,394
P2 Upstream Acquisition Co.	(f)(h)(j)(k)	Service & Equipment	L+800	1.0%	4/30/21		32,599		32,920		33,237
Power Buyer, LLC	(g)	Service & Equipment	L+725	1.0%	11/6/20		3,500		3,530		3,430
Sabine Oil & Gas LLC	(f)(g)	Upstream	L+750	1.3%	12/31/18		12,660		12,883		12,913
Teine Energy Ltd.	(j)(k)(l)	Upstream	L+625	1.3%	5/17/19		24,794		25,041		25,135
Templar Energy LLC	(f)(j)	Upstream	L+700	1.0%	11/25/20		76,923		75,479		76,538
Total Safety U.S., Inc.	(g)(h)	Service & Equipment	L+800	1.3%	9/13/20		12,805		13,079		12,837
UTEX Industries, Inc.	(g)(h)(j)	Service & Equipment	L+725	1.0%	5/20/22		30,636		30,520		31,058
Vantage Energy II, LLC		Upstream	L+750	1.0%	5/8/17		85,000		85,000		85,000
Vantage Energy, LLC	(j)	Upstream	L+750	1.0%	12/20/18		30,539		30,329		30,768


Total Senior Secured Loans—Second Lien									899,236		910,104


Senior Secured Bonds—7.4%
Erickson Air-Crane Inc.	(f)(i)(l)	Service & Equipment	8.3%		5/1/20		24,725		25,501		25,590
FourPoint Energy, LLC		Upstream	8.5%		12/31/20		74,250		64,934		64,226
Gastar Exploration USA, Inc.	(i)(l)	Upstream	8.6%		5/15/18		22,000		21,492		23,028
Globe Luxembourg SCA	(f)(l)	Service & Equipment	9.6%		5/1/18		10,000		9,672		11,186
Mirant Mid-Atlantic Trust	(f)(i)	Power	10.1%		12/30/28		11,643		13,011		13,244
Permian Tank & Manufacturing, Inc.	(g)	Service & Equipment	10.5%		1/15/18		4,000		4,082		4,120

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Unaudited Consolidated Schedule of Investments (continued)

As of June 30, 2014

(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate^(b)	Floor	Maturity	Principal Amount^(c)		Amortized Cost		Fair Value^(d)
Prince Mineral Holding Corp.	(i)	Service & Equipment	11.5%		12/15/19	$	16,500	$	18,004	$	18,810
Ryerson Inc.	(f)(g)	Service & Equipment	9.0%		10/15/17		2,300		2,373		2,470
Tervita Corp.	(h)(i)(l)	Service & Equipment	8.0%		11/15/18		8,500		8,620		8,883


Total Senior Secured Bonds									167,689		171,557


Subordinated Debt—37.5%
Alta Mesa Holdings, L.P.	(f)	Upstream	9.6%		10/15/18		36,616		36,540		38,742
Atlas Energy Holdings Operating Co., LLC	(f)(i)(l)	Upstream	7.8%		1/15/21		21,450		20,586		22,241
Atlas Energy Holdings Operating Co., LLC	(i)(l)	Upstream	9.3%		8/15/21		2,563		2,767		2,781
Brand Energy & Infrastructure Services, Inc.	(f)(i)	Service & Equipment	8.5%		12/1/21		25,000		25,000		26,563
Chaparral Energy Inc.	(f)	Upstream	8.3%		9/1/21		2,000		2,056		2,209
Chaparral Energy Inc.	(f)(g)	Upstream	7.6%		11/15/22		15,225		16,304		16,518
CHC Helicopter S.A.	(f)(i)(l)	Service & Equipment	9.4%		6/1/21		12,500		12,716		13,379
Clayton Williams Energy, Inc.	(i)(l)	Upstream	7.8%		4/1/19		9,300		9,287		9,925
Comstock Resources, Inc.	(f)(l)	Upstream	9.5%		6/15/20		5,000		4,809		5,716
Crestwood Midstream Partners L.P.	(i)(l)	Midstream	6.1%		3/1/22		5,500		5,500		5,811
Crew Energy Inc.	(i)(l)(s)	Upstream	8.4%		10/21/20	C$	11,240		11,506		12,167
CrownRock, L.P.	(f)	Upstream	7.1%		4/15/21	$	37,500		37,500		39,747
Diamondback Energy, Inc.	(i)(l)	Upstream	7.6%		10/1/21		5,500		5,500		6,097
Energy XXI Gulf Coast, Inc.	(i)	Upstream	7.5%		12/15/21		4,000		3,982		4,317
EP Energy LLC	(f)(l)	Upstream	7.8%		9/1/22		6,600		6,621		7,471
Era Group Inc.	(f)(l)	Service & Equipment	7.8%		12/15/22		7,750		7,633		8,254
Everest Acquisition LLC	(f)	Upstream	9.4%		5/1/20		19,250		19,823		22,152
Gardner Denver, Inc.	(f)(k)	Service & Equipment	6.9%		8/15/21		735		777		775
GenOn Energy, Inc.	(f)(i)	Power	9.9%		10/15/20		23,000		24,311		25,090
Global Partners L.P.	(f)(i)(l)	Midstream	6.3%		7/15/22		85,000		85,000		85,425
Hercules Offshore, Inc.	(f)(l)	Service & Equipment	8.8%		7/15/21		3,900		3,900		4,153
Hercules Offshore, Inc.	(f)(l)	Service & Equipment	7.5%		10/1/21		5,000		5,000		4,800

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Unaudited Consolidated Schedule of Investments (continued)

As of June 30, 2014

(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate^(b)	Floor	Maturity	Principal Amount^(c)		Amortized Cost		Fair Value^(d)
Hercules Offshore, Inc.	(i)(l)	Service & Equipment	6.8%		4/1/22	$	5,000	$	5,000	$	4,775
The Hillman Group, Inc.	(f)	Service & Equipment	6.4%		7/15/22		5,000		5,025		5,013
Ithaca Energy Inc.	(k)(l)	Upstream	8.1%		7/1/19		2,000		2,000		2,000
Jones Energy, Inc.	(i)(l)	Upstream	6.8%		4/1/22		17,000		17,000		18,035
The Kenan Advantage Group, Inc.	(f)(i)	Service & Equipment	8.4%		12/15/18		18,000		18,496		19,328
Legacy Reserves L.P.	(f)(i)(l)	Upstream	6.6%		12/1/21		14,000		13,818		14,271
Legacy Reserves L.P.	(f)(l)	Upstream	8.0%		12/1/20		16,750		16,441		17,973
Lightstream Resources Ltd.	(i)(l)	Upstream	8.6%		2/1/20		35,695		35,951		37,606
Lonestar Resources America Inc.	(i)	Upstream	8.8%		4/15/19		21,500		21,626		21,728
Martin Midstream Partners L.P.	(f)(l)	Midstream	7.3%		2/15/21		3,000		3,000		3,180
Memorial Production Partners L.P.	(i)(l)	Upstream	7.6%		5/1/21		7,000		6,804		7,355
Memorial Resource Development LLC	(i)	Upstream	10.8% PIK (10.8% Max PIK)		12/15/18		13,300		13,055		13,659
The Pantry Inc.	(f)(l)	Service & Equipment	8.4%		8/1/20		250		271		270
Peabody Energy Corp.	(f)(l)	Upstream	7.9%		11/1/26		2,000		2,100		2,107
Peabody Energy Corp.	(f)(k)(l)	Upstream	6.3%		11/15/21		1,985		1,992		1,994
Pinnacle Operating Corp.	(i)	Service & Equipment	9.0%		11/15/20		2,500		2,500		2,725
QR Energy, L.P.	(f)(i)(l)	Upstream	9.3%		8/1/20		25,030		25,568		27,533
Resolute Energy Corp.	(i)(l)	Upstream	8.5%		5/1/20		6,230		6,574		6,573
Rex Energy Corp.	(i)(l)	Upstream	8.9%		12/1/20		14,000		14,010		15,625
Rice Energy Inc.	(i)	Upstream	6.3%		5/1/22		7,350		7,350		7,571
RKI Exploration & Production, LLC	(f)	Upstream	8.5%		8/1/21		34,100		34,122		37,211
Samson Investment Co.	(f)(i)	Upstream	9.8%		2/15/20		25,500		25,751		27,086
Sanchez Energy Corp.	(i)(l)	Upstream	7.8%		6/15/21		14,500		14,251		16,030
SemGroup Corp.	(f)(l)	Midstream	7.5%		6/15/21		9,400		9,400		10,337
Sidewinder Drilling Inc.	(i)	Service & Equipment	9.8%		11/15/19		21,500		21,589		21,984
Silver II US Holdings, LLC	(f)	Service & Equipment	7.8%		12/15/20		1,835		1,977		1,973
Summit Midstream Holdings, LLC	(f)(l)	Midstream	7.5%		7/1/21		1,000		1,000		1,094
Swift Energy Co.	(f)(i)(l)	Upstream	7.9%		3/1/22		20,000		20,048		21,067
Talos Production LLC	(f)(i)	Upstream	9.8%		2/15/18		43,250		43,273		46,007
Tenrgys, LLC	(j)	Upstream	L+900	2.5%	12/23/18		75,000		75,000		75,750
Zachry Holdings, Inc.	(f)	Service & Equipment	7.5%		2/1/20		11,800		12,040		12,715


Total Subordinated Debt									824,150		864,908

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Unaudited Consolidated Schedule of Investments (continued)

As of June 30, 2014

(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Number of Shares		Amortized Cost		Fair Value^(d)
Equity/Other—6.7%^(m)
Allied Downhole Technologies, LLC, Common Equity	(n)(o)	Service & Equipment		6,600,000	$	6,600	$	10,230
Allied Downhole Technologies, LLC, Warrants	(n)(o)	Service & Equipment		5,344,680		1,865		4,490
American Energy Ohio Holdings, LLC, Common Equity	(o)(p)	Upstream		14,900,000		14,900		14,900
AP Exhaust Holdings, LLC, Common Equity	(n)(o)	Service & Equipment		811		811		924
BBH Operating LLC, Common Equity	(o)(q)	Upstream		1,000		1,000		993
BL Sand Hills Unit, L.P., Net Profits Interest	(o)(r)	Upstream		N/A		961		1,041
BL Sand Hills Unit, L.P. Overriding Royalty Interest	(r)	Upstream		N/A		137		137
Extraction Oil & Gas Holdings, LLC, Common Equity	(n)(o)	Upstream		2,794,500		7,500		7,545
Fortune Creek Co-Invest I L.P., LP Interest	(l)(s)	Midstream		N/A		17,246		17,440
FourPoint Energy, LLC, Common Equity	(n)(o)	Upstream		12,374		8,176		12,374
Industrial Group Intermediate Holdings, LLC, Common Equity	(n)(o)	Service & Equipment		371,901		372		372
MB Precision Holdings LLC, Common Equity	(o)	Service & Equipment		450,000		450		495
Plains Offshore Operations Inc., Preferred Equity	(f)	Upstream		21,067		23,933		26,183
Plains Offshore Operations Inc., Warrants	(f)(o)	Upstream		427,005		689		1,110
San Pedro Development, LLC, Net Profits Interest	(o)(t)	Upstream		N/A		3,515		4,724
Swift Worldwide Resources Holdco Limited, Common Equity	(l)(o)(u)	Service & Equipment		3,750,000		6,029		7,376
Synergy Offshore LLC, Preferred Equity	(v)	Upstream		40,000		43,434		43,400


Total Equity/Other						137,618		153,734


TOTAL INVESTMENTS—128.2%					$	2,866,003		2,954,968




LIABILITIES IN EXCESS OF OTHER ASSETS—(28.2%)								(650,782	)


NET ASSETS—100.0%							$	2,304,186

(a): Security may be an obligation of one or more entities affiliated with the named company.
(b): Certain variable rate securities in the Company's portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of June 30, 2014, the three-month London Interbank Offered Rate was 0.23% and the U.S. Prime Lending Rate was 3.25%.
(c): Denominated in U.S. dollars, unless otherwise noted.
(d): Fair value determined by the Company's board of trustees (see Note 7).
(e): Security is an unfunded loan commitment.
(f): Security or portion thereof held within FSEP Term Funding, LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Deutsche Bank AG, New York Branch (see Note 8).

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Unaudited Consolidated Schedule of Investments (continued)

As of June 30, 2014

(in thousands, except share amounts)



(g)		Security or portion thereof held within EP Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Citibank, N.A. (see Note 8).
(h)		Security or portion thereof held within Energy Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Natixis, New York Branch (see Note 8).
(i)		Security or portion thereof held within Berwyn Funding LLC and is pledged as collateral supporting the amounts outstanding under the prime brokerage facility with BNP Paribas Prime Brokerage, Inc. Securities held within Berwyn Funding LLC may be rehypothecated from time to time as permitted under Rule 15c-1(a)(1) of the Securities Exchange Act of 1934, as amended, subject to the terms and conditions of the agreements governing the prime brokerage facility with BNP Paribas Prime Brokerage, Inc. (See Note 8).
(j)		Security or portion thereof held within Gladwyne Funding LLC, a wholly-owned subsidiary of the Company.
(k)		Position or portion thereof unsettled as of June 30, 2014.
(l)		The investment is not a qualifying asset under the Investment Company Act of 1940, as amended. A business development company may not acquire any asset other than a qualifying asset, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the business development company's total assets. As of June 30, 2014, 81.1% of the Company's total assets represented qualifying assets.
(m)		Listed investments may be treated as debt for GAAP or tax purposes.
(n)		Security held within FSEP Investments, Inc., a wholly-owned subsidiary of the Company.
(o)		Security is non-income producing.
(p)		Security held within EP American Energy Investments, Inc., a wholly-owned subsidiary of the Company.
(q)		Security held within FSEP-BBH, Inc., a wholly-owned subsidiary of the Company.
(r)		Security held within EP Burnett Investments, Inc., a wholly-owned subsidiary of the Company.
(s)		Investment denominated in Canadian dollars. Amortized cost and fair value are converted into U.S. dollars as of June 30, 2014.
(t)		Security held within EP San Pedro Investments, LLC, a wholly-owned subsidiary of the Company.
(u)		Investment denominated in British pounds. Amortized cost and fair value are converted into U.S. dollars as of June 30, 2014.
(v)		Security held within EP Synergy Investments, Inc., a wholly-owned subsidiary of the Company.

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Consolidated Schedule of Investments

As of December 31, 2013

(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate	Floor	Maturity	Principal Amount^(b)		Amortized Cost		Fair Value^(c)
Senior Secured Loans—First Lien—37.9%
Alon USA Partners, L.P.	(e)(i)	Downstream	L+800	1.3%	11/26/18	$	4,125	$	4,289	$	4,256
Atlas Energy, L.P.	(e)(f)(i)	Midstream	L+550	1.0%	7/31/19		8,534		8,529		8,769
Azure Midstream Energy LLC	(e)	Midstream	L+550	1.0%	11/15/18		13,500		13,301		13,601
BBH Operating LLC		Upstream	Prime+500	3.3%	2/26/15		17,000		17,000		17,000
BBH Operating LLC		Upstream	Prime+500	3.3%	2/26/15		13,000		13,000		13,000
BL Sand Hills Unit, L.P.	(h)	Upstream	Prime+650	3.5%	12/17/17		3,431		2,980		2,980
BL Sand Hills Unit, L.P.	(h)	Upstream	Prime+650	3.5%	12/17/17		56,569		49,127		49,127
BlackBrush TexStar L.P.	(d)(e)(f)	Midstream	L+650	1.3%	6/4/19		60,764		60,416		61,334
Boomerang Tube, LLC	(d)(e)	Service & Equipment	L+950	1.5%	10/11/17		19,631		19,443		18,944
Brock Holdings III, Inc.	(e)	Service & Equipment	L+450	1.5%	3/16/17		2,763		2,799		2,777
Buffalo Gulf Coast Terminals LLC	(e)	Midstream	L+400	1.3%	10/31/17		6,554		6,672		6,619
Cedar Bay Generating Co., L.P.	(f)	Power	L+500	1.3%	4/23/20		8,848		8,766		8,920
Crestwood Holdings LLC	(e)(f)	Midstream	L+600	1.0%	6/19/19		28,868		28,952		29,734
EP Acquisition LLC		Upstream	Prime+500	3.3%	3/31/15		750		750		750
FR Utility Services LLC	(e)(f)	Service & Equipment	L+575	1.0%	10/18/19		19,389		19,219		19,389
Harvey Gulf International Marine, LLC	(e)	Service & Equipment	L+450	1.0%	6/18/20		9,975		9,848		10,081
Hudson Products Holdings Inc.	(e)(f)	Service & Equipment	L+400	1.3%	6/7/17		10,329		10,368		10,415
Larchmont Resources, LLC	(e)(f)	Upstream	L+725	1.0%	8/7/19		18,834		18,775		19,187
McJunkin Red Man Corp.	(e)(i)	Service & Equipment	L+400	1.0%	11/9/19		5,796		5,796		5,889
Moxie Liberty LLC	(e)(f)	Power	L+650	1.0%	8/21/20		27,432		27,419		28,187
NES Global Talent Finance US LLC	(e)(f)(i)	Service & Equipment	L+550	1.0%	10/3/19		18,000		17,755		17,978
Panda Sherman Power, LLC	(d)(e)	Power	L+750	1.5%	9/14/18		10,909		11,104		11,236
Panda Temple Power, LLC (TLA)		Power	L+700	1.5%	7/17/18		16,200		15,981		16,635
Panda Temple Power, LLC (TLB)	(e)(f)	Power	L+1000	1.5%	7/17/18		40,000		39,337		41,200
Panda Temple Power II, LLC	(e)(f)	Power	L+600	1.3%	4/3/19		18,809		19,212		19,373
ProPetro Services, Inc.	(e)(f)(h)	Service & Equipment	L+625	1.0%	9/30/19		8,913		8,861		8,968
Prowler Acquisition Corp.	(e)	Service & Equipment	L+475	1.0%	3/19/19		4,813		4,769		4,813
San Pedro Development, LLC	(f)	Upstream	Prime+400		6/30/15		19,974		16,662		17,278

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Consolidated Schedule of Investments (continued)

As of December 31, 2013

(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate	Floor	Maturity	Principal Amount^(b)		Amortized Cost			Fair Value^(c)
San Pedro Development, LLC	(f)	Upstream	Prime+400		6/30/15	$	26	$	22		$	22
Sandy Creek Energy Associates, L.P.	(e)(f)(h)	Power	L+400	1.0%	11/8/20		15,584		15,507			15,614
Sprint Industrial Holdings LLC	(f)	Service & Equipment	L+575	1.3%	11/14/19		13,074		13,059			13,237
Stallion Oilfield Holdings, Inc.	(d)(e)(f)(h)	Service & Equipment	L+675	1.3%	6/19/18		63,711		63,521			65,145
Swift Worldwide Resources US Holdings Corp.		Service & Equipment	L+800	1.3%	4/30/19		60,263		60,263			60,263
Total Safety U.S., Inc.	(e)(f)	Service & Equipment	L+450	1.3%	3/13/20		12,858		13,050			12,914
TPF II LC, LLC	(e)(f)	Power	L+550	1.0%	8/21/19		17,910		17,938			18,268
Wastequip, LLC	(e)	Service & Equipment	L+450	1.0%	8/9/19		8,771		8,801			8,859
Westway Group, LLC	(e)	Service & Equipment	L+400	1.0%	2/27/20		8,933		9,030			8,994
Willbros Group, Inc.	(e)(f)(i)	Service & Equipment	L+975	1.3%	8/7/19		24,938		24,155			25,312


Total Senior Secured Loans—First Lien									686,476			697,068
Unfunded Loan Commitments									(62,149	)		(62,149	)


Net Senior Secured Loans—First Lien									624,327			634,919


Senior Secured Loans—Second Lien—40.8%
American Energy—Utica, LLC	(f)	Upstream	L+475, 4.8% PIK	1.5%	9/30/18		116,057		116,057			116,057
Ameriforge Group Inc.	(d)(f)(h)	Service & Equipment	L+750	1.3%	12/21/20		27,950		28,403			28,579
Brock Holdings III, Inc.	(d)(f)(h)	Service & Equipment	L+825	1.8%	3/16/18		33,605		33,874			34,235
Citrus Energy Appalachia, LLC	(e)(h)	Upstream	L+850	1.3%	7/26/18		56,829		55,249			56,687
Consolidated Precision Products Corp.	(d)(e)(f)	Service & Equipment	L+775	1.0%	4/30/21		33,500		33,337			34,170
Drew Marine Group Inc.	(f)(i)	Service & Equipment	L+700	1.0%	5/19/21		10,000		9,975			10,075
Filtration Group Corp.	(e)	Service & Equipment	L+725	1.0%	11/21/21		2,632		2,606			2,697
Horn Intermediate Holdings, Inc.		Service & Equipment	L+775	1.3%	10/2/18		67,500		67,500			68,175
Oxbow Carbon LLC	(f)	Midstream	L+700	1.0%	1/19/20		15,000		14,858			15,309
P2 Upstream Acquisition Co.	(f)	Service & Equipment	L+800	1.0%	4/30/21		21,409		21,511			21,837
Power Buyer, LLC	(e)(f)	Service & Equipment	L+725	1.0%	11/6/20		7,500		7,495			7,388
Rice Drilling B LLC	(f)	Upstream	L+725	1.3%	10/25/18		59,960		59,270			61,309
Sabine Oil & Gas LLC	(d)(e)	Upstream	L+750	1.3%	12/31/18		12,660		12,903			12,818
Teine Energy Ltd.	(h)(i)	Upstream	L+625	1.3%	5/17/19		19,007		19,076			19,292
Templar Energy LLC	(d)	Upstream	L+700	1.0%	11/25/20		76,923		75,396			77,356

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Consolidated Schedule of Investments (continued)

As of December 31, 2013

(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate	Floor	Maturity	Principal Amount^(b)		Amortized Cost		Fair Value^(c)
TNT Crane & Rigging, Inc.		Service & Equipment	L+900	1.0%	11/27/21	$	1,500	$	1,381	$	1,448
Total Safety U.S., Inc.	(e)(f)	Service & Equipment	L+800	1.3%	9/13/20		12,805		13,095		12,966
UTEX Industries, Inc.	(e)(f)(h)	Service & Equipment	L+750	1.3%	4/10/21		31,046		31,313		31,822
Vantage Energy, LLC	(h)	Upstream	L+750	1.0%	12/20/18		27,692		27,415		27,692
WildHorse Resources, LLC	(e)	Upstream	L+625	1.3%	12/13/18		43,593		42,798		43,811


Total Senior Secured Loans—Second Lien									673,512		683,723


Senior Secured Bonds—4.9%
Erickson Air-Crane Inc.	(d)(i)	Service & Equipment	8.3%		5/1/20		10,875		10,919		11,283
Gastar Exploration USA, Inc.	(g)(i)	Upstream	8.6%		5/15/18		22,000		21,439		21,850
Globe Luxembourg SCA	(d)(i)	Service & Equipment	9.6%		5/1/18		10,000		9,637		10,469
Iracore International Holdings, Inc.	(g)	Service & Equipment	9.5%		6/1/18		9,500		9,702		10,077
Murray Energy Corp.	(d)	Upstream	8.6%		6/15/21		4,000		4,000		4,147
Permian Tank & Manufacturing, Inc.	(e)	Service & Equipment	10.5%		1/15/18		4,000		4,091		3,981
Prince Mineral Holding Corp.		Service & Equipment	11.5%		12/15/19		6,500		6,757		7,215
Ryerson Inc.	(d)(e)	Service & Equipment	9.0%		10/15/17		3,300		3,465		3,506
Shale-Inland Holdings, LLC	(e)(f)	Service & Equipment	8.8%		11/15/19		9,550		9,543		9,956


Total Senior Secured Bonds									79,553		82,484


Subordinated Debt—47.1%
Abengoa Finance, S.A.U.	(g)(i)	Service & Equipment	7.8%		2/1/20		2,500		2,500		2,606
Alta Mesa Holdings, L.P.	(d)	Upstream	9.6%		10/15/18		42,616		42,580		45,792
Atlas Energy Holdings Operating Co., LLC	(g)(i)	Upstream	7.8%		1/15/21		16,800		15,878		16,037
Aurora USA Oil & Gas, Inc.	(g)(i)	Upstream	9.9%		2/15/17		15,250		15,702		16,433
BOE Intermediate Holding Corp.	(g)	Service & Equipment	9.8% PIK		11/1/17		3,398		3,369		3,559
Brand Energy & Infrastructure Services, Inc.	(d)(g)	Service & Equipment	8.5%		12/1/21		25,000		25,000		25,500
BreitBurn Energy Partners L.P.	(g)(i)	Upstream	7.9%		4/15/22		3,500		3,508		3,654
Chaparral Energy Inc.	(d)	Upstream	8.3%		9/1/21		2,000		2,059		2,178
Chaparral Energy Inc.	(d)(e)	Upstream	7.6%		11/15/22		15,225		16,352		16,331
CHC Helicopter S.A.	(d)(g)(i)	Service & Equipment	9.4%		6/1/21		12,500		12,727		12,754

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Consolidated Schedule of Investments (continued)

As of December 31, 2013

(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate	Floor	Maturity	Principal Amount^(b)		Amortized Cost		Fair Value^(c)
Clayton Williams Energy, Inc.	(g)(i)	Upstream	7.8%		4/1/19	$	9,300	$	9,286	$	9,617
Comstock Resources, Inc.	(d)(i)	Upstream	9.5%		6/15/20		5,000		4,797		5,610
Crestwood Midstream Partners L.P.	(g)(i)	Midstream	6.1%		3/1/22		5,500		5,500		5,640
Crew Energy Inc.	(g)(i)	Upstream	8.4%		10/21/20	C$	10,000		9,615		9,566
CrownRock, L.P.	(d)	Upstream	7.1%		4/15/21	$	50,000		50,000		49,712
Diamondback Energy, Inc.	(g)(i)	Upstream	7.6%		10/1/21		5,500		5,500		5,801
Energy XXI Gulf Coast, Inc.	(g)	Upstream	7.5%		12/15/21		4,000		3,981		4,188
EP Energy LLC	(d)	Upstream	7.8%		9/1/22		6,600		6,622		7,417
EPE Holdings LLC	(d)	Upstream	8.9% PIK		12/15/17		6,535		6,510		6,805
Era Group Inc.	(d)(i)	Service & Equipment	7.8%		12/15/22		7,750		7,628		8,060
Everest Acquisition LLC	(d)	Upstream	9.4%		5/1/20		19,250		19,863		22,402
Global Partners L.P.	(i)	Midstream	8.0%		2/14/18		70,000		68,197		70,613
Global Partners L.P.	(i)	Midstream	7.8%		12/23/18		40,000		40,000		40,000
Hercules Offshore, Inc.	(d)(i)	Service & Equipment	8.8%		7/15/21		3,900		3,900		4,293
Hercules Offshore, Inc.	(d)(i)	Service & Equipment	7.5%		10/1/21		5,000		5,000		5,299
The Kenan Advantage Group, Inc.	(d)(g)	Service & Equipment	8.4%		12/15/18		18,000		18,542		19,035
Legacy Reserves L.P.	(d)(i)	Upstream	6.6%		12/1/21		9,600		9,454		9,287
Legacy Reserves L.P.	(d)(i)	Upstream	8.0%		12/1/20		16,750		16,424		17,306
Martin Midstream Partners L.P.	(d)(i)	Midstream	7.3%		2/15/21		3,000		3,000		3,075
Memorial Production Partners L.P.	(g)(i)	Upstream	7.6%		5/1/21		7,000		6,794		7,211
Memorial Resource Development LLC	(g)	Upstream	10.8% PIK		12/15/18		13,300		13,034		13,300
PetroBakken Energy Ltd.	(g)(i)	Upstream	8.6%		2/1/20		31,295		31,424		31,737
Pinnacle Operating Corp.	(g)	Service & Equipment	9.0%		11/15/20		2,500		2,500		2,656
QR Energy, L.P.	(d)(g)(i)	Upstream	9.3%		8/1/20		25,030		25,602		26,066
Rex Energy Corp.	(g)(i)	Upstream	8.9%		12/1/20		14,000		14,011		15,330
RKI Exploration & Production, LLC	(d)	Upstream	8.5%		8/1/21		34,100		34,124		36,096
Samson Investment Co.	(d)(h)	Upstream	9.8%		2/15/20		23,000		23,029		25,137
Sanchez Energy Corp.	(g)(i)	Upstream	7.8%		6/15/21		14,500		14,238		14,892
SemGroup Corp.	(d)(i)	Midstream	7.5%		6/15/21		9,400		9,400		9,955
Sidewinder Drilling Inc.		Service & Equipment	9.8%		11/15/19		21,500		21,596		19,028
Summit Midstream Holdings, LLC	(d)(i)	Midstream	7.5%		7/1/21		1,000		1,000		1,050
Talos Production LLC	(d)(g)	Upstream	9.8%		2/15/18		40,250		40,091		41,256
Tenrgys, LLC		Upstream	L+900	2.5%	12/23/18		75,000		75,000		75,000
Tervita Corp.	(g)(i)	Service & Equipment	10.9%		2/15/18		10,000		9,689		10,175
Zachry Holdings, Inc.	(d)	Service & Equipment	7.5%		2/1/20		11,800		12,057		12,375


Total Subordinated Debt									767,083		789,834

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Consolidated Schedule of Investments (continued)

As of December 31, 2013

(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Number of Shares		Amortized Cost		Fair Value^(c)
Equity/Other—6.5%^(j)
American Energy Ohio Holdings, LLC, Common Equity	(k)(l)	Upstream		7,788,845	$	7,789	$	7,789
BBH Operating LLC, Common Equity	(l)(m)	Upstream		1,000		1,000		924
BL Sand Hills Unit, L.P., Net Profits Interest	(h)(l)(n)	Upstream		N/A		395		395
BL Sand Hills Unit, L.P., Overriding Royalty Interest	(h)(l)(n)	Upstream		N/A		56		56
Fortune Creek Co-Invest I L.P., LP Interest	(i)(o)	Midstream		N/A		22,597		22,715
Plains Offshore Operations Inc., Preferred Equity	(d)	Upstream		20,000		22,161		25,052
Plains Offshore Operations Inc., Warrants	(d)(l)	Upstream		405,378		689		1,054
San Pedro Development, LLC, Net Profits Interest	(l)(p)	Upstream		N/A		3,312		3,641
Swift Worldwide Resources Holdco Limited, Common Equity	(i)(l)(q)	Service & Equipment		3,750,000		6,029		6,215
Synergy Offshore LLC, Preferred Equity	(r)	Upstream		40,000		41,451		41,400


Total Equity/Other						105,479		109,241


TOTAL INVESTMENTS—137.2%					$	2,249,954		2,300,201




LIABILITIES IN EXCESS OF OTHER ASSETS—(37.2%)								(623,964	)


NET ASSETS—100.0%							$	1,676,237

FS Energy & Power Fund - FORM 10-Q - August 13, 2014

Attached files