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, 2015
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.)
201 Rouse Boulevard Philadelphia, Pennsylvania (Address of principal executive office)		19112 (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 344,156,361 common shares of beneficial interest outstanding as of July 28, 2015.

Table of Contents

TABLE OF CONTENTS



PART I—FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	1
	Consolidated Balance Sheets as of June 30, 2015 (Unaudited) and December 31, 2014	1
	Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014	2
	Unaudited Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2015 and 2014	3
	Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014	4
	Consolidated Schedules of Investments as of June 30, 2015 (Unaudited) and December 31, 2014	5
	Notes to Unaudited Consolidated Financial Statements	17
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	47
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	70
ITEM 4.	CONTROLS AND PROCEDURES	71
PART II—OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	72
ITEM 1A.	RISK FACTORS	72
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	72
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	72
ITEM 4.	MINE SAFETY DISCLOSURES	72
ITEM 5.	OTHER INFORMATION	72
ITEM 6.	EXHIBITS	73
	SIGNATURES	78

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, 2015 (Unaudited)			December 31, 2014

Assets
Investments, at fair value—unaffiliated (amortized cost—$3,627,111 and $3,375,716, respectively)	$	3,401,254		$	3,089,068
Investments, at fair value—affiliated (amortized cost—$300,194 and $287,334, respectively)		306,568			286,109
Cash		210,139			225,130
Foreign currency, at fair value (cost—$2,474 and $0, respectively)		2,464			—
Receivable for investments sold and repaid		6,952			51,253
Interest receivable		40,069			47,197
Receivable for common shares purchased		50			9,989
Deferred financing costs		5,537			5,575
Prepaid expenses and other assets		190			30

Total assets	$	3,973,223		$	3,714,351

Liabilities
Payable for investments purchased	$	26,923		$	20,094
Credit facilities payable		733,538			901,300
Repurchase agreement payable⁽¹⁾		259,425			189,113
Shareholder distributions payable		22,822			50
Management fees payable		19,392			17,912
Subordinated income incentive fees payable⁽²⁾		6,478			12,142
Administrative services expense payable		2,032			1,653
Interest payable		1,951			2,888
Trustees' fees payable		266			229
Other accrued expenses and liabilities		3,857			3,249

Total liabilities		1,076,684			1,148,630

Commitments and contingencies⁽³⁾
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, 337,274,812 and 299,394,371 shares issued and outstanding, respectively		337			299
Capital in excess of par value		3,167,320			2,841,446
Accumulated undistributed net realized gains (losses) on investments and gain/loss on foreign currency⁽⁴⁾		(64,751	)		7,497
Accumulated undistributed net investment income⁽⁴⁾		13,246			4,341
Net unrealized appreciation (depreciation) on investments and unrealized gain/loss on foreign currency		(219,613	)		(287,862	)

Total shareholders' equity		2,896,539			2,565,721

Total liabilities and shareholders' equity	$	3,973,223		$	3,714,351

Net asset value per common share at period end	$	8.59		$	8.57

(1): See Note 8 for a discussion of the Company's repurchase transaction.
(2): See Note 2 and Note 4 for a discussion of the methodology employed by the Company in calculating the subordinated income incentive fees.
(3): See Note 9 for a discussion of the Company's commitments and contingencies.
(4): 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,

	2015			2014			2015			2014
Investment income
Interest income—unaffiliated	$	78,406		$	61,752		$	154,608		$	112,719
Interest income—affiliated		4,877			—			9,744			—
Fee income—unaffiliated		9,127			10,255			13,645			15,844

Total investment income		92,410			72,007			177,997			128,563

Operating expenses
Management fees		19,392			14,678			38,137			27,545
Capital gains incentive fees⁽¹⁾		—			3,015			—			8,580
Subordinated income incentive fees⁽¹⁾		6,478			10,013			9,357			14,623
Administrative services expenses		761			1,008			2,261			1,943
Share transfer agent fees		638			660			1,432			1,307
Accounting and administrative fees		361			288			721			554
Interest expense		7,408			4,096			14,724			8,433
Trustees' fees		265			135			490			416
Other general and administrative expenses		1,374			1,033			2,328			1,737

Total operating expenses		36,677			34,926			69,450			65,138
Income taxes		69			51			158			107

Total expenses		36,746			34,977			69,608			65,245

Net investment income		55,664			37,030			108,389			63,318

Realized and unrealized gain/loss
Net realized gain (loss) on investments—unaffiliated		(40,553	)		2,411			(58,510	)		4,691
Net realized gain (loss) on foreign currency		91			31			(147	)		(507	)
Net change in unrealized appreciation (depreciation) on investments—unaffiliated		44,673			12,697			60,791			38,718
Net change in unrealized appreciation (depreciation) on investments—affiliated		5,131			—			7,599			—
Net change in unrealized gain (loss) on foreign currency		(13	)		(50	)		(141	)		31

Total net realized and unrealized gain (loss) on investments		9,329			15,089			9,592			42,933

Net increase (decrease) in net assets resulting from operations	$	64,993		$	52,119		$	117,981		$	106,251



Per share information—basic and diluted
Net increase (decrease) in net assets resulting from operations (Earnings per Share)	$	0.20		$	0.24		$	0.37		$	0.52



Weighted average shares outstanding		329,285,131			219,030,100			319,815,870			203,738,493

(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.

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,

	2015			2014
Operations
Net investment income	$	108,389		$	63,318
Net realized gain (loss) on investments and foreign currency		(58,657	)		4,184
Net change in unrealized appreciation (depreciation) on investments		68,390			38,718
Net change in unrealized gain (loss) on foreign currency		(141	)		31

Net increase (decrease) in net assets resulting from operations		117,981			106,251

Shareholder distributions⁽¹⁾
Distributions from net investment income		(99,484	)		(64,746	)
Distributions from net realized gain on investments		(13,591	)		—

Net decrease in net assets resulting from shareholder distributions		(113,075	)		(64,746	)

Capital share transactions
Issuance of common shares⁽²⁾		283,757			544,468
Reinvestment of shareholder distributions⁽²⁾		57,735			48,357
Repurchases of common shares⁽²⁾		(10,230	)		(3,250	)
Offering costs		(5,350	)		(3,131	)

Net increase in net assets resulting from capital share transactions		325,912			586,444

Total increase in net assets		330,818			627,949
Net assets at beginning of period		2,565,721			1,676,237

Net assets at end of period	$	2,896,539		$	2,304,186



Accumulated undistributed (distributions in excess of) net investment income⁽¹⁾	$	13,246		$	(9,374	)

(1): See Note 5 for a discussion of the sources of distributions paid by the Company.
(2): See Note 3 for a discussion of transactions with respect to the Company's common shares during the six months ended June 30, 2015 and 2014.

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,

	2015			2014
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations	$	117,981		$	106,251
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of investments		(686,349	)		(1,059,647	)
Paid-in-kind interest		(12,556	)		(6,206	)
Proceeds from sales and repayments of investments		380,080			460,436
Net realized (gain) loss on investments		58,510			(4,691	)
Net change in unrealized (appreciation) depreciation on investments		(68,390	)		(38,718	)
Accretion of discount		(3,940	)		(5,941	)
Amortization of deferred financing costs		1,228			824
(Increase) decrease in receivable for investments sold and repaid		44,301			(14,374	)
(Increase) decrease in interest receivable		7,128			(3,818	)
(Increase) decrease in prepaid expenses and other assets		(160	)		(129	)
Increase (decrease) in payable for investments purchased		6,829			6,310
Increase (decrease) in management fees payable		1,480			3,927
Increase (decrease) in accrued capital gains incentive fees		—			5,723
Increase (decrease) in subordinated income incentive fees payable		(5,664	)		3,227
Increase (decrease) in administrative services expense payable		379			1,043
Increase (decrease) in interest payable		(937	)		58
Increase (decrease) in trustees' fees payable		37			(24	)
Increase (decrease) in other accrued expenses and liabilities		608			1,309

Net cash provided by (used in) operating activities		(159,435	)		(544,440	)

Cash flows from financing activities
Issuance of common shares		293,696			544,421
Reinvestment of shareholder distributions		57,735			48,357
Repurchases of common shares		(10,230	)		(3,250	)
Offering costs		(5,350	)		(3,131	)
Shareholder distributions		(90,303	)		(75,446	)
Borrowings under credit facilities⁽¹⁾		5,000			85,826
Borrowings under repurchase agreement⁽²⁾		70,312			—
Repayments under credit facilities		(172,762	)		(850	)
Deferred financing costs paid		(1,190	)		—

Net cash provided by financing activities		146,908			595,927

Total increase (decrease) in cash		(12,527	)		51,487
Cash at beginning of period		225,130			91,084

Cash and foreign currency at end of period	$	212,603		$	142,571



Supplemental disclosure
Excise and state taxes paid	$	310		$	225

(1): See Note 8 for a discussion of the Company's credit facilities. During the six months ended June 30, 2015 and 2014, the Company paid $10,072 and $7,551, respectively, in interest expense on the credit facilities.
(2): See Note 8 for a discussion of the Company's repurchase transaction. During the six months ended June 30, 2015, the Company paid $4,361 in interest expense pursuant to the repurchase agreement.

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, 2015
(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—34.0%
Abaco Energy Technologies LLC	(g)(i)(j)	Service & Equipment	L+700		1.0	%	11/20/20	$	61,719	$	58,356	$	46,906
Allied Wireline Services, LLC	(g)(i)(j)	Service & Equipment	L+800		1.5	%	2/28/19		103,125		101,823		102,352
Alon USA Partners, L.P.	(g)(i)(l)	Downstream	L+800		1.3	%	11/26/18		7,195		7,410		7,267
Altus Power America, Inc.	(j)	Power	L+750		1.5	%	10/10/21		27,655		27,655		27,932
Altus Power America, Inc.	(e)	Power	L+750		1.5	%	10/10/21		56,720		56,720		57,287
AP Exhaust Acquisition, LLC	(g)	Service & Equipment	L+775		1.5	%	1/16/21		14,595		14,595		14,449
BBH Operating LLC		Upstream	Prime+500 PIK (8.25% Max PIK)		3.3	%	8/26/15		22,607		22,607		21,081
BBH Operating LLC	(e)	Upstream	Prime+500 PIK (8.25% Max PIK)		3.3	%	8/26/15		7,393		7,393		6,894
BL Sand Hills Unit, L.P.		Upstream	Prime+650		3.5	%	12/17/17		29,154		25,319		28,498
BL Sand Hills Unit, L.P.	(e)	Upstream	Prime+650		3.5	%	12/17/17		28,807		25,017		28,159
Cactus Wellhead, LLC	(g)(i)(j)	Service & Equipment	L+600		1.0	%	7/31/20		52,106		51,195		44,551
Cimarron Energy Inc.	(g)	Service & Equipment	L+775		1.0	%	12/15/19		25,000		25,000		24,750
CITGO Holding, Inc.	(f)	Downstream	L+850		1.0	%	5/12/18		7,340		7,071		7,384
Crestwood Holdings LLC	(g)(j)	Midstream	L+600		1.0	%	6/19/19		31,405		31,545		31,170
EnergySolutions, LLC	(f)(i)	Service & Equipment	L+575		1.0	%	5/29/20		20,462		20,119		20,582
EP Acquisition LLC		Upstream	Prime+500 PIK (8.25% Max PIK)		3.3	%	8/26/15		514		514		482
FR Dixie Acquisition Corp.		Service & Equipment	L+475		1.0	%	12/18/20		10,122		10,133		8,806
FR Utility Services LLC	(j)	Service & Equipment	L+575		1.0	%	10/18/19		7,471		7,445		7,505
Industrial Group Intermediate Holdings, LLC	(i)	Service & Equipment	L+800		1.3	%	5/31/20		14,566		14,566		14,566
MB Precision Holdings LLC	(g)	Service & Equipment	L+725		1.3	%	1/23/20		13,298		13,298		13,165
Moxie Liberty LLC	(g)(j)	Power	L+650		1.0	%	8/21/20		32,432		32,549		32,513
Murray Energy Corp.	(f)(j)	Upstream	L+650		1.0	%	4/16/20		17,241		16,740		16,024
Panda Sherman Power, LLC	(g)(j)	Power	L+750		1.5	%	9/14/18		22,757		23,102		22,558
Panda Temple Power, LLC	(j)	Power	L+625		1.0	%	3/6/22		9,975		9,782		9,626
Panda Temple Power II, LLC	(g)(j)	Power	L+600		1.3	%	4/3/19		27,809		28,176		26,419
PeroxyChem LLC	(g)(j)	Service & Equipment	L+650		1.0	%	2/28/20		6,045		6,019		6,068
ProPetro Services, Inc.	(i)	Service & Equipment	L+625		1.0	%	9/30/19		11,939		11,923		10,746
RGL Reservoir Operations Inc.	(l)	Service & Equipment	L+500		1.0	%	8/13/21		9,074		8,834		5,921
Southcross Holdings Borrower LP	(i)(j)	Midstream	L+500		1.0	%	8/4/21		18,857		18,773		18,378
Stallion Oilfield Holdings, Inc.	(f)(g)(i)(j)	Service & Equipment	L+675		1.3	%	6/19/18		63,207		63,120		52,020
Stonewall Gas Gathering LLC	(j)	Midstream	L+775		1.0	%	1/28/22		23,116		22,023		23,406
Sunnova Asset Portfolio 5 Holdings, LLC	(j)	Power	12.0% PIK (12.0% Max PIK)				11/14/21		143,630		143,630		145,066
Sunnova Asset Portfolio 5 Holdings, LLC	(e)	Power	12.0% PIK (12.0% Max PIK)				11/14/21		106,327		106,327		107,390

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, 2015
(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate^(b)	Floor			Maturity	Principal Amount^(c)		Amortized Cost			Fair Value^(d)
Swift Worldwide Resources US Holdings Corp.	(g)(j)	Service & Equipment	L+800		1.3	%	4/30/19	$	59,359	$	59,359		$	58,468
Total Safety U.S., Inc.		Service & Equipment	L+450		1.3	%	3/13/20		4,371		4,424			3,978
United Components, Inc.	(g)	Service & Equipment	L+400		1.5	%	7/26/17		4,961		4,951			4,936
Warren Resources, Inc.		Upstream	L+850		1.0	%	5/22/20		122,790		122,790			122,790
Warren Resources, Inc.	(e)	Upstream	L+850		1.0	%	5/22/20		16,770		16,770			16,770

Total Senior Secured Loans—First Lien											1,227,073			1,196,863
Unfunded Loan Commitments											(212,227	)		(212,227	)

Net Senior Secured Loans—First Lien											1,014,846			984,636

Senior Secured Loans—Second Lien—38.8%
Alison US LLC	(f)(j)(l)	Service & Equipment	L+850		1.0	%	8/29/22		22,222		21,417			17,778
American Energy—Marcellus, LLC		Upstream	L+750		1.0	%	8/4/21		10,000		9,868			5,533
Ameriforge Group Inc.	(f)(g)(j)	Service & Equipment	L+750		1.3	%	12/21/20		35,950		36,475			30,333
Ascent Resources—Utica, LLC	(g)(j)	Upstream	L+950, 2.0% PIK (2.0% Max PIK)		1.5	%	9/30/18		278,108		276,736			272,546
Atlas Resource Partners, L.P.	(i)(l)	Upstream	L+900		1.0	%	2/23/20		100,000		97,203			101,709
BlackBrush Oil & Gas, L.P.	(f)(i)	Upstream	L+650		1.0	%	7/30/21		37,519		35,623			34,846
Brock Holdings III, Inc.	(f)(g)(j)	Service & Equipment	L+825		1.8	%	3/16/18		29,605		29,798			28,828
Callon Petroleum Co.	(i)(l)	Upstream	L+750		1.0	%	10/8/21		10,000		9,816			9,966
Chief Exploration & Development LLC	(i)(j)	Upstream	L+650		1.0	%	5/16/21		19,576		19,499			18,539
Consolidated Precision Products Corp.	(g)(j)	Service & Equipment	L+775		1.0	%	4/30/21		11,574		11,526			11,632
Drew Marine Group Inc.	(j)(l)	Service & Equipment	L+700		1.0	%	5/19/21		8,000		7,984			7,920
Emerald Performance Materials, LLC	(j)	Downstream	L+675		1.0	%	8/1/22		5,319		5,295			5,304
Extraction Oil & Gas Holdings, LLC	(i)(j)	Upstream	11.0%				5/29/19		74,186		74,186			75,670
Extraction Oil & Gas Holdings, LLC	(i)(j)	Upstream	10.0%				5/29/19		32,462		32,462			32,868
Fieldwood Energy LLC	(f)(i)(j)	Upstream	L+713		1.3	%	9/30/20		41,047		42,029			31,625
Granite Intermediate Holdings, Inc.	(f)(j)	Power	L+725		1.0	%	10/15/22		10,150		10,055			10,387
Horn Intermediate Holdings, Inc.	(g)	Service & Equipment	L+775		1.3	%	10/2/18		50,250		50,250			49,999
Husky Injection Molding Systems Ltd.	(f)(l)	Service & Equipment	L+625		1.0	%	6/30/22		3,101		3,135			3,074
Jonah Energy LLC	(i)(j)	Upstream	L+650		1.0	%	5/12/21		26,185		25,839			24,974
Magnum Hunter Resources Corp.	(i)(l)	Upstream	L+750		1.0	%	10/17/19		6,948		6,765			6,956
MD America Energy, LLC	(f)(g)(j)	Upstream	L+850		1.0	%	8/4/19		56,500		54,236			55,061
Neff Rental LLC	(f)(j)	Service & Equipment	L+625		1.0	%	6/9/21		17,989		18,018			17,888
Oxbow Carbon LLC	(g)	Midstream	L+700		1.0	%	1/19/20		15,000		14,892			14,213
P2 Upstream Acquisition Co.	(f)(g)(j)	Service & Equipment	L+800		1.0	%	4/30/21		32,599		32,881			30,426
Templar Energy LLC	(f)(g)(i)(j)	Upstream	L+750		1.0	%	11/25/20		89,923		88,327			66,498
Total Safety U.S., Inc.	(g)(j)	Service & Equipment	L+800		1.3	%	9/13/20		14,795		14,996			11,960
UTEX Industries, Inc.	(j)	Service & Equipment	L+725		1.0	%	5/20/22		39,192		39,221			33,607
Vantage Energy II, LLC	(i)(j)	Upstream	L+750		1.0	%	5/8/17		85,000		85,000			84,575
Vantage Energy, LLC	(i)(j)	Upstream	L+750		1.0	%	12/20/18		30,232		30,061			28,116

Total Senior Secured Loans—Second Lien											1,183,593			1,122,831

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, 2015
(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate^(b)	Floor	Maturity	Principal Amount^(c)		Amortized Cost			Fair Value^(d)
Senior Secured Bonds—11.5%
American Energy—Woodford, LLC	(h)	Upstream	12.0% PIK (12.0% Max PIK)		12/30/20	$	7,350	$	5,223		$	5,219
Comstock Resources, Inc.	(h)(n)	Upstream	10.0%		3/15/20		2,500		2,500			2,269
FourPoint Energy, LLC	(i)(j)(o)	Upstream	8.0%		12/31/20		235,125		226,018			215,139
FourPoint Energy, LLC	(e)(o)	Upstream	8.0%		12/31/20		74,250		73,879			67,939
Gastar Exploration USA, Inc.	(f)(h)(n)	Upstream	8.6%		5/15/18		26,750		26,023			25,145
Light Tower Rentals, Inc.	(i)	Service & Equipment	8.1%		8/1/19		17,500		17,292			13,825
Mirant Mid-Atlantic Trust	(f)(h)	Power	10.1%		12/30/28		33,087		36,996			36,148
SandRidge Energy, Inc.	(f)(h)(l)(n)	Upstream	8.8%		6/1/20		46,700		46,589			41,826

Total Senior Secured Bonds									434,520			407,510
Unfunded Bond Commitment									(73,879	)		(73,879	)

Net Senior Secured Bonds									360,641			333,631

Subordinated Debt—32.9%
Alta Mesa Holdings, LP	(h)(n)	Upstream	9.6%		10/15/18		27,451		27,396			21,549
Atlas Energy Holdings Operating Co., LLC	(f)(h)(l)(n)	Upstream	7.8%		1/15/21		28,285		25,704			21,072
Atlas Energy Holdings Operating Co., LLC	(f)(h)(l)	Upstream	9.3%		8/15/21		24,460		23,531			18,559
Bellatrix Exploration Ltd.	(f)(h)(l)	Upstream	8.5%		5/15/20		45,000		44,122			42,525
Brand Energy & Infrastructure Services, Inc.	(f)	Service & Equipment	8.5%		12/1/21		25,000		25,000			23,313
Calpine Corp.	(f)(l)	Power	5.8%		1/15/25		10,100		10,093			9,841
Canbriam Energy Inc.	(f)(h)(j)(l)	Upstream	9.8%		11/15/19		115,200		111,196			118,656
Chaparral Energy Inc.	(h)	Upstream	8.3%		9/1/21		2,000		2,050			1,525
Chaparral Energy Inc.	(h)(n)	Upstream	7.6%		11/15/22		15,225		16,203			11,502
Compressco Partners, LP	(f)(h)(l)(n)	Service & Equipment	7.3%		8/15/22		20,000		19,839			19,238
Comstock Resources, Inc.	(h)(n)	Upstream	9.5%		6/15/20		5,000		4,833			2,138
Crestwood Midstream Partners L.P.	(f)(l)	Midstream	6.1%		3/1/22		5,500		5,500			5,665
CrownRock, L.P.	(f)(h)(n)	Upstream	7.1%		4/15/21		37,500		37,500			39,141
CrownRock, L.P.	(h)	Upstream	7.8%		2/15/23		2,800		2,760			2,989
Dynegy Finance I/II Inc.	(f)(l)	Power	7.4%		11/1/22		1,950		1,950			2,044
Dynegy Finance I/II Inc.	(f)(l)	Power	6.8%		11/1/19		950		950			989
Dynegy Finance I/II Inc.	(f)(l)	Power	7.6%		11/1/24		8,680		8,709			9,168
Eclipse Resources Corp.	(f)(h)(k)(l)	Upstream	8.9%		7/15/23		27,500		26,923			26,709
Eco Services Operations LLC	(f)	Service & Equipment	8.5%		11/1/22		5,000		5,000			5,000
EV Energy Partners, L.P.	(f)(h)(l)	Upstream	8.0%		4/15/19		7,500		7,030			6,994
Everest Acquisition LLC	(f)	Upstream	9.4%		5/1/20		14,250		14,250			15,221

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, 2015
(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate^(b)	Floor			Maturity	Principal Amount^(c)		Amortized Cost		Fair Value^(d)
Gardner Denver, Inc.	(f)	Service & Equipment	6.9%				8/15/21	$	8,948	$	9,396	$	8,255
GenOn Energy, Inc.	(f)(h)(n)	Power	9.9%				10/15/20		42,698		44,834		43,072
Global Jet Capital Inc.		Service & Equipment	15.0%				1/30/25		620		620		620
Global Jet Capital Inc.		Service & Equipment	15.0%				4/30/25		4,826		4,826		4,826
Global Partners L.P.	(f)(h)(l)	Midstream	6.3%				7/15/22		68,350		68,350		66,556
The Hillman Group, Inc.	(f)	Service & Equipment	6.4%				7/15/22		5,000		5,023		4,763
Jones Energy, Inc.	(h)(n)	Upstream	6.8%				4/1/22		8,000		8,000		7,620
Jupiter Resources Inc.	(f)(h)(l)	Upstream	8.5%				10/1/22		71,125		67,097		60,190
The Kenan Advantage Group, Inc.	(f)	Service & Equipment	8.4%				12/15/18		18,000		18,398		18,788
Legacy Reserves LP	(f)(l)	Upstream	8.0%				12/1/20		16,750		16,479		14,489
Legacy Reserves LP	(f)(h)(l)	Upstream	6.6%				12/1/21		14,000		13,837		11,200
Lightstream Resources Ltd.	(h)(l)	Upstream	8.6%				2/1/20		48,745		49,087		31,800
Lonestar Resources America Inc.	(h)(n)	Upstream	8.8%				4/15/19		21,500		21,603		17,603
Martin Midstream Partners L.P.	(f)(l)	Midstream	7.3%				2/15/21		18,607		19,133		18,514
Memorial Production Partners L.P.	(h)(l)(n)	Upstream	7.6%				5/1/21		7,000		6,827		6,641
Memorial Production Partners L.P.	(h)(l)	Upstream	6.9%				8/1/22		12,500		12,295		11,406
Northern Oil and Gas, Inc.	(h)(l)	Upstream	8.0%				6/1/20		3,150		2,995		2,886
RKI Exploration & Production, LLC	(f)(h)(n)	Upstream	8.5%				8/1/21		58,704		58,655		58,410
Samson Investment Co.	(h)(n)(q)(x)	Upstream	9.8%				2/15/20		56,300		52,982		2,956
SandRidge Energy, Inc.	(h)(l)(n)	Upstream	8.8%				1/15/20		20,395		18,828		11,166
Swift Energy Co.	(h)(n)	Upstream	7.9%				3/1/22		20,000		20,043		8,003
Talos Production LLC	(f)(h)(n)	Upstream	9.8%				2/15/18		43,250		43,263		38,168
Teine Energy Ltd.	(h)(l)	Upstream	6.9%				9/30/22		12,900		12,807		12,561
Tenrgys, LLC	(i)(j)	Upstream	L+900		2.5	%	12/23/18		75,000		75,000		74,625
Zachry Holdings, Inc.	(f)	Service & Equipment	7.5%				2/1/20		14,300		14,384		14,300

Total Subordinated Debt											1,085,301		953,256

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, 2015
(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Number of Shares		Amortized Cost		Fair Value^(d)
Equity/Other—10.8%^(m)
Abaco Energy Technologies LLC, Common Equity	(q)	Service & Equipment		6,944,444	$	6,944	$	3,819
Allied Downhole Technologies, LLC, Common Equity	(p)(q)	Service & Equipment		6,600,000		6,600		8,250
Allied Downhole Technologies, LLC, Warrants	(p)(q)	Service & Equipment		5,344,680		1,865		2,993
Altus Power America Holdings, LLC, Preferred Equity	(q)	Power		9,218,478		9,218		16,132
AP Exhaust Holdings, LLC, Common Equity	(p)(q)	Service & Equipment		811		811		709
Ascent Resources Utica Holdings, LLC, Common Equity	(q)(r)	Upstream		15,657,194		14,900		12,526
BBH Operating LLC, Common Equity	(q)(s)	Upstream		1,000		1,000		507
BL Sand Hills Unit, L.P., Net Profits Interest	(q)(t)	Upstream		N/A		3,591		4,363
BL Sand Hills Unit, L.P. Overriding Royalty Interest	(t)	Upstream		N/A		513		353
Cimarron Energy Holdco Inc., Common Equity	(q)	Service & Equipment		2,500,000		2,500		2,000
Extraction Oil & Gas Holdings, LLC, Common Equity	(p)(q)	Upstream		4,191,800		11,250		12,575
Fortune Creek Co-Invest I L.P., LP Interest	(l)(u)	Midstream		N/A		16,703		14,206
FourPoint Energy, LLC, Common Equity, Class C Units	(o)(p)(q)	Upstream		66,000		66,000		81,840
FourPoint Energy, LLC, Common Equity, Class D Units	(o)(p)(q)	Upstream		12,374		8,176		15,529
Global Jet Capital Holdings, LP, Preferred Equity	(q)	Service & Equipment		2,333,842		2,334		2,334
Industrial Group Intermediate Holdings, LLC, Common Equity	(p)(q)	Service & Equipment		371,901		372		632
MB Precision Investment Holdings LLC, Common Equity, Class A-2 Units	(q)	Service & Equipment		490,213		490		466
Plains Offshore Operations Inc., Preferred Equity	(f)	Upstream		21,067		25,475		29,303
Plains Offshore Operations Inc., Warrants	(f)(q)	Upstream		427,005		689		1,196
Summit Midstream Partners, LLC, Preferred Equity		Midstream		39,163		39,163		38,967
Swift Worldwide Resources Holdco Limited, Common Equity	(l)(q)(v)	Service & Equipment		3,750,000		6,029		4,718
Synergy Offshore LLC, Preferred Equity	(w)	Upstream		50,000		58,301		60,050

Total Equity/Other						282,924		313,468

TOTAL INVESTMENTS—128.0%					$	3,927,305		3,707,822



LIABILITIES IN EXCESS OF OTHER ASSETS—(28.0%)								(811,283	)

NET ASSETS—100.0%							$	2,896,539

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, 2015
(in thousands, except share amounts)

(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, 2015, the three-month London Interbank Offered Rate was 0.28% 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 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).
(g): 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).
(h): 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., or BNP. 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, or the Exchange Act, subject to the terms and conditions governing the prime brokerage facility with BNP (see Note 8).
(i): Security or portion thereof held within Wayne Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Wells Fargo Securities, LLC (see Note 8).
(j): Security or portion thereof held within Gladwyne Funding LLC and is pledged as collateral supporting the obligations outstanding under the repurchase transaction with Goldman Sachs Bank USA (see Note 8).
(k): Position or portion thereof unsettled as of June 30, 2015.
(l): The investment is not a qualifying asset under the Investment Company Act of 1940, as amended, or the 1940 Act. 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, 2015, 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 or portion thereof held within Berwyn Funding LLC has been rehypothecated under Rule 15c-1(a)(1) of the Exchange Act, subject to the terms and conditions governing the prime brokerage facility with BNP (see Note 8). As of June 30, 2015, the fair value of securities rehypothecated by BNP was $111,412.
(o): Under the 1940 Act, the Company generally is deemed to be an "affiliated person" of a portfolio company if it owns 5% or more of the portfolio company's voting securities and generally is deemed to "control" a portfolio company if it owns 25% or more of the portfolio company's voting securities or it has the power to exercise control over the management or policies of a portfolio company. As of June 30, 2015, the Company held investments in a portfolio company of which it is deemed to be an "affiliated person" but is not deemed to "control." The following table presents certain information with respect to such portfolio company for the six months ended June 30, 2015:

Portfolio Company			Interest Income				Net Change in Unrealized Appreciation (Depreciation)

Senior Secured Bonds
FourPoint Energy, LLC	—	—	$	9,744	—	—	$	10,281
Equity/Other
FourPoint Energy, LLC, Common Equity, Class C Units	—	—		—	—	—	$	(2,310	)
FourPoint Energy, LLC, Common Equity, Class D Units	—	—		—	—	—	$	(372	)

(p): Security held within FSEP Investments, Inc., a wholly-owned subsidiary of the Company.
(q): Security is non-income producing.
(r): Security held within EP American Energy Investments, Inc., a wholly-owned subsidiary of the Company.
(s): Security held within FSEP-BBH, Inc., a wholly-owned subsidiary of the Company.
(t): Security held within EP Burnett Investments, Inc., a wholly-owned subsidiary of the Company.
(u): Investment denominated in Canadian dollars. Amortized cost and fair value are converted into U.S. dollars as of June 30, 2015.
(v): Investment denominated in British pounds. Amortized cost and fair value are converted into U.S. dollars as of June 30, 2015.
(w): Security held within EP Synergy Investments, Inc., a wholly-owned subsidiary of the Company.
(x): Security was on non-accrual status as of June 30, 2015.

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Consolidated Schedule of Investments
As of December 31, 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—33.3%
Abaco Energy Technologies LLC	(h)(j)(k)	Service & Equipment	L+700		1.0	%	11/20/20	$	62,500	$	58,795	$	59,063
Allied Wireline Services, LLC	(h)(j)(k)	Service & Equipment	L+800		1.5	%	2/28/19		105,875		104,405		105,081
Alon USA Partners, L.P.	(h)(j)(m)	Downstream	L+800		1.3	%	11/26/18		7,231		7,468		7,308
Altus Power America, Inc.	(k)	Power	L+750		1.5	%	10/10/21		20,568		20,568		20,568
Altus Power America, Inc.	(e)	Power	L+750		1.5	%	10/10/21		63,807		63,807		63,807
AP Exhaust Acquisition, LLC	(h)	Service & Equipment	L+775		1.5	%	1/16/21		14,595		14,595		14,157
Atlas Energy, L.P.	(g)(m)	Midstream	L+550		1.0	%	7/31/19		5,486		5,443		5,404
Azure Midstream Energy LLC	(g)	Midstream	L+550		1.0	%	11/15/18		12,825		12,669		11,543
BBH Operating LLC		Upstream	Prime+500		3.3	%	2/26/15		19,850		19,850		18,957
BBH Operating LLC	(e)	Upstream	Prime+500		3.3	%	2/26/15		10,150		10,150		9,693
BL Sand Hills Unit, L.P.		Upstream	Prime+650		3.5	%	12/17/17		20,206		17,548		19,423
BL Sand Hills Unit, L.P.	(e)	Upstream	Prime+650		3.5	%	12/17/17		38,292		33,254		36,808
Boomerang Tube, LLC	(f)(g)	Service & Equipment	L+950		1.5	%	10/11/17		18,584		18,441		16,122
Cactus Wellhead, LLC	(g)(h)(j)(k)	Service & Equipment	L+600		1.0	%	7/31/20		52,369		51,384		42,550
Cimarron Energy Inc.	(h)	Service & Equipment	L+775		1.0	%	12/15/19		25,000		25,000		25,000
Crestwood Holdings LLC	(g)(h)(k)	Midstream	L+600		1.0	%	6/19/19		32,255		32,406		30,622
EnergySolutions, LLC	(f)(j)	Service & Equipment	L+575		1.0	%	5/29/20		21,709		21,314		21,702
EP Acquisition LLC		Upstream	Prime+500		3.3	%	3/31/15		750		750		720
FR Dixie Acquisition Corp.	(g)	Service & Equipment	L+475		1.0	%	12/18/20		10,173		10,184		8,443
FR Utility Services LLC	(g)	Service & Equipment	L+575		1.0	%	10/18/19		15,009		14,919		14,952
Harvey Gulf International Marine, LLC	(g)	Service & Equipment	L+450		1.0	%	6/18/20		1,910		1,893		1,551
Hudson Products Holdings Inc.	(g)	Service & Equipment	L+400		1.0	%	3/15/19		1,773		1,769		1,720
Industrial Group Intermediate Holdings, LLC	(j)	Service & Equipment	L+800		1.3	%	5/31/20		14,886		14,886		14,886
Larchmont Resources, LLC	(g)(j)	Upstream	L+725		1.0	%	8/7/19		20,370		20,379		19,809
MB Precision Holdings LLC	(h)	Service & Equipment	L+725		1.3	%	1/23/20		13,365		13,365		13,231
Moxie Liberty LLC	(g)(h)(k)	Power	L+650		1.0	%	8/21/20		32,432		32,562		32,270
Moxie Patriot LLC	(k)	Power	L+575		1.0	%	12/19/20		2,000		2,041		1,990
Panda Sherman Power, LLC	(g)(h)	Power	L+750		1.5	%	9/14/18		19,872		20,258		19,773
Panda Temple Power, LLC (TLA)	(k)	Power	L+700		1.5	%	7/17/18		13,949		13,799		14,141
Panda Temple Power, LLC (TLB)	(g)(h)(k)	Power	L+1000		1.5	%	7/17/18		40,000		39,447		40,600
Panda Temple Power II, LLC	(g)(h)	Power	L+600		1.3	%	4/3/19		23,809		24,274		23,452
PeroxyChem LLC	(h)(k)	Service & Equipment	L+650		1.0	%	2/28/20		11,900		11,793		11,781
ProPetro Services, Inc.	(j)(l)	Service & Equipment	L+625		1.0	%	9/30/19		12,267		12,246		11,899
RGL Reservoir Operations Inc.	(g)(m)	Service & Equipment	L+500		1.0	%	8/13/21		9,120		8,859		7,357
Southcross Holdings Borrower LP	(g)(j)	Midstream	L+500		1.0	%	8/4/21		18,952		18,862		16,962
Sprint Industrial Holdings LLC	(h)	Service & Equipment	L+575		1.3	%	11/14/19		14,775		14,760		14,110
Stallion Oilfield Holdings, Inc.	(f)(g)(h)(j)(k)	Service & Equipment	L+675		1.3	%	6/19/18		63,538		63,425		54,404
Sunnova Asset Portfolio 5 Holdings, LLC	(k)	Power	12.0% PIK (12.0% Max PIK)				11/14/21		62,502		62,502		62,502
Sunnova Asset Portfolio 5 Holdings, LLC	(e)	Power	12.0% PIK (12.0% Max PIK)				11/14/21		110,909		110,909		110,909

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Consolidated Schedule of Investments (Continued)
As of December 31, 2014
(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate^(b)	Floor			Maturity	Principal Amount^(c)		Amortized Cost			Fair Value^(d)
Swift Worldwide Resources US Holdings Corp.	(h)(k)	Service & Equipment	L+800		1.3	%	4/30/19	$	59,660	$	59,660		$	58,467
Total Safety U.S., Inc.	(g)	Service & Equipment	L+450		1.3	%	3/13/20		4,394		4,451			4,240
United Components, Inc.	(h)(l)	Service & Equipment	L+400		1.5	%	7/26/17		4,987		4,975			4,968

Total Senior Secured Loans—First Lien											1,100,065			1,072,945
Unfunded Loan Commitments											(218,120	)		(218,120	)

Net Senior Secured Loans—First Lien											881,945			854,825

Senior Secured Loans—Second Lien—38.6%
Alison US LLC	(f)(m)	Service & Equipment	L+850		1.0	%	8/29/22		22,222		21,363			20,806
American Energy—Marcellus, LLC	(g)	Upstream	L+750		1.0	%	8/4/21		10,000		9,858			9,200
American Energy—Utica, LLC	(h)(k)	Upstream	L+400, 5.5% PIK (5.5% Max PIK)		1.5	%	9/30/18		122,646		122,646			120,194
American Energy—Utica, LLC		Upstream	L+400, 5.5% PIK (5.5% Max PIK)		1.5	%	9/30/18		83,297		83,297			81,631
Ameriforge Group Inc.	(f)(h)(k)	Service & Equipment	L+750		1.3	%	12/21/20		35,950		36,516			35,478
BlackBrush Oil & Gas, L.P.	(f)(j)	Upstream	L+650		1.0	%	7/30/21		27,500		27,286			22,825
Brock Holdings III, Inc.	(f)(h)(k)	Service & Equipment	L+825		1.8	%	3/16/18		29,605		29,829			23,832
Callon Petroleum Co.	(j)(m)	Upstream	L+750		1.0	%	8/29/21		10,000		9,804			9,475
Chief Exploration & Development LLC	(j)(k)	Upstream	L+650		1.0	%	5/16/21		19,576		19,494			17,717
Consolidated Precision Products Corp.	(f)(g)(h)(k)	Service & Equipment	L+775		1.0	%	4/30/21		28,500		28,375			27,218
Drew Marine Group Inc.	(k)(m)	Service & Equipment	L+700		1.0	%	5/19/21		10,000		9,978			9,950
Emerald Performance Materials, LLC	(k)	Downstream	L+675		1.0	%	8/1/22		5,319		5,294			5,186
Extraction Oil & Gas Holdings, LLC	(j)(k)	Upstream	11.0%				5/29/19		74,186		74,186			74,928
Extraction Oil & Gas Holdings, LLC	(j)(k)	Upstream	10.0%				5/29/19		32,462		32,462			32,137
Fieldwood Energy LLC	(f)(j)(k)	Upstream	L+713		1.3	%	9/30/20		41,047		42,100			30,298
Filtration Group Corp.	(g)	Service & Equipment	L+725		1.0	%	11/21/21		2,632		2,608			2,635
Granite Intermediate Holdings, Inc.	(f)(k)(l)	Power	L+725		1.0	%	10/15/22		10,150		10,049			10,254
Horn Intermediate Holdings, Inc.	(h)	Service & Equipment	L+775		1.3	%	10/2/18		57,750		57,750			56,306
Husky Injection Molding Systems Ltd.	(f)(m)	Service & Equipment	L+625		1.0	%	6/30/22		4,000		4,048			3,850
Jonah Energy LLC	(j)(k)	Upstream	L+650		1.0	%	5/8/21		26,185		25,808			22,650
Magnum Hunter Resources Corp.	(j)(m)	Upstream	L+750		1.0	%	10/17/19		6,983		6,780			6,878
MD America Energy, LLC	(f)(g)(h)(k)	Upstream	L+850		1.0	%	8/4/19		78,000		74,506			74,879
Neff Rental LLC	(f)(k)	Service & Equipment	L+625		1.0	%	6/9/21		17,989		18,019			18,068
Oxbow Carbon LLC	(h)	Midstream	L+700		1.0	%	1/19/20		15,000		14,874			13,325
P2 Upstream Acquisition Co.	(f)(h)(k)	Service & Equipment	L+800		1.0	%	4/30/21		32,599		32,901			31,377
Power Buyer, LLC	(g)	Service & Equipment	L+725		1.0	%	11/6/20		2,500		2,520			2,422
Templar Energy LLC	(f)(h)(j)(k)	Upstream	L+750		1.0	%	11/25/20		89,923		88,196			65,014
Total Safety U.S., Inc.	(g)(h)	Service & Equipment	L+800		1.3	%	9/13/20		14,795		15,013			14,352
UTEX Industries, Inc.	(g)(k)	Service & Equipment	L+725		1.0	%	5/20/22		39,192		39,224			35,469
Vantage Energy II, LLC	(j)(k)	Upstream	L+750		1.0	%	5/8/17		85,000		85,000			84,575
Vantage Energy, LLC	(j)(k)	Upstream	L+750		1.0	%	12/20/18		30,385		30,197			27,043

Total Senior Secured Loans—Second Lien											1,059,981			989,972

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Consolidated Schedule of Investments (Continued)
As of December 31, 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 Bonds—11.1%
FourPoint Energy, LLC	(j)(k)(p)	Upstream	8.0%		12/31/20	$	222,750	$	213,158		$	196,020
FourPoint Energy, LLC	(e)(p)	Upstream	8.0%		12/31/20		86,625		86,192			76,230
Gastar Exploration USA, Inc.	(i)	Upstream	8.6%		5/15/18		22,000		21,548			18,855
Globe Luxembourg SCA	(f)(m)	Service & Equipment	9.6%		5/1/18		10,000		9,706			7,748
Light Tower Rentals, Inc.	(j)	Service & Equipment	8.1%		8/1/19		17,500		17,273			14,000
Mirant Mid-Atlantic Trust	(f)(i)	Power	10.1%		12/30/28		33,087		37,072			34,990
Permian Tank & Manufacturing, Inc.	(g)	Service & Equipment	10.5%		1/15/18		3,499		3,562			2,712
Prince Mineral Holding Corp.	(i)(o)	Service & Equipment	11.5%		12/15/19		15,345		16,748			15,671
Ryerson Inc.	(f)(g)	Service & Equipment	9.0%		10/15/17		2,300		2,362			2,371
Tervita Corp.	(i)(m)	Service & Equipment	8.0%		11/15/18		3,500		3,534			3,080

Total Senior Secured Bonds									411,155			371,677
Unfunded Bond Commitments									(86,192	)		(86,192	)

Net Senior Secured Bonds									324,963			285,485

Subordinated Debt—36.6%
Alta Mesa Holdings, L.P.	(f)(i)	Upstream	9.6%		10/15/18		34,951		34,870			29,637
American Energy—Woodford, LLC	(i)	Upstream	9.0%		9/15/22		10,500		10,078			6,602
Atlas Energy Holdings Operating Co., LLC	(f)(i)(m)	Upstream	7.8%		1/15/21		21,450		20,713			15,551
Atlas Energy Holdings Operating Co., LLC	(f)(i)(m)	Upstream	9.3%		8/15/21		19,763		20,040			15,193
Brand Energy & Infrastructure Services, Inc.	(f)(i)(o)	Service & Equipment	8.5%		12/1/21		25,000		25,000			22,625
BWAY Holding Co.	(f)	Service & Equipment	9.1%		8/15/21		3,100		3,080			3,116
Calpine Corp.	(f)(m)	Power	5.8%		1/15/25		7,100		7,100			7,224
Canbriam Energy Inc.	(f)(i)(m)	Upstream	9.8%		11/15/19		88,200		82,990			83,349
Chaparral Energy Inc.	(f)	Upstream	8.3%		9/1/21		2,000		2,053			1,319
Chaparral Energy Inc.	(f)(g)	Upstream	7.6%		11/15/22		15,225		16,254			10,011
CHC Helicopter S.A.	(f)(i)(m)(o)	Service & Equipment	9.4%		6/1/21		8,125		8,276			7,698
Clayton Williams Energy, Inc.	(i)(m)	Upstream	7.8%		4/1/19		9,300		9,288			7,797
Compressco Partners, LP	(f)(i)(m)	Service & Equipment	7.3%		8/15/22		20,000		19,830			17,338
Comstock Resources, Inc.	(f)(m)	Upstream	9.5%		6/15/20		5,000		4,821			3,375
Crestwood Midstream Partners L.P.	(i)(m)	Midstream	6.1%		3/1/22		5,500		5,500			5,207
Crew Energy Inc.	(i)(m)(v)	Upstream	8.4%		10/21/20	C$	10,343		11,502			10,085
CrownRock, L.P.	(f)(i)	Upstream	7.1%		4/15/21	$	37,500		37,500			35,257
Dynegy Finance I/II Inc.	(f)(m)	Power	7.4%		11/1/22		1,950		1,950			1,999
Dynegy Finance I/II Inc.	(f)(m)	Power	6.8%		11/1/19		950		950			969
Dynegy Finance I/II Inc.	(f)(m)	Power	7.6%		11/1/24		8,680		8,710			8,886
Eco Services Operations LLC	(f)	Service & Equipment	8.5%		11/1/22		5,000		5,000			5,075
Energy XXI Gulf Coast, Inc.	(i)(m)(o)	Upstream	7.5%		12/15/21		4,000		3,983			2,200
Energy XXI Gulf Coast, Inc.	(i)(m)	Upstream	9.3%		12/5/17		5,000		5,145			3,325
Era Group Inc.	(f)(m)	Service & Equipment	7.8%		12/15/22		7,750		7,638			8,060
Everest Acquisition LLC	(f)	Upstream	9.4%		5/1/20		14,250		14,250			14,468

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Consolidated Schedule of Investments (Continued)
As of December 31, 2014
(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry	Rate^(b)	Floor			Maturity	Principal Amount^(c)		Amortized Cost		Fair Value^(d)
Gardner Denver, Inc.	(f)	Service & Equipment	6.9%				8/15/21	$	8,948	$	9,426	$	8,501
GenOn Energy, Inc.	(f)(i)(o)	Power	9.9%				10/15/20		40,698		42,923		40,299
Global Jet Capital, Inc.		Service & Equipment	8.0% PIK (8.0% Max PIK)				1/30/15		313		313		313
Global Partners L.P.	(f)(i)(m)	Midstream	6.3%				7/15/22		83,350		83,350		81,266
The Hillman Group, Inc.	(f)	Service & Equipment	6.4%				7/15/22		5,000		5,024		4,825
Ithaca Energy Inc.	(i)(m)	Upstream	8.1%				7/1/19		2,000		2,000		1,518
Jones Energy, Inc.	(i)	Upstream	6.8%				4/1/22		8,000		8,000		6,120
Jupiter Resources Inc.	(f)(i)(m)	Upstream	8.5%				10/1/22		67,125		63,660		50,344
The Kenan Advantage Group, Inc.	(f)(i)	Service & Equipment	8.4%				12/15/18		18,000		18,447		18,585
Legacy Reserves L.P.	(f)(m)	Upstream	8.0%				12/1/20		16,750		16,460		13,999
Legacy Reserves L.P.	(f)(i)(m)	Upstream	6.6%				12/1/21		14,000		13,827		11,486
Lightstream Resources Ltd.	(f)(i)(m)(o)	Upstream	8.6%				2/1/20		48,745		49,119		34,358
Lonestar Resources America Inc.	(i)	Upstream	8.8%				4/15/19		21,500		21,615		16,206
Martin Midstream Partners L.P.	(f)(m)	Midstream	7.3%				2/15/21		18,607		19,172		17,486
Memorial Production Partners L.P.	(i)(m)	Upstream	7.6%				5/1/21		7,000		6,815		5,653
Memorial Production Partners L.P.	(i)(m)	Upstream	6.9%				8/1/22		12,500		12,284		9,469
The Pantry Inc.	(f)(m)	Service & Equipment	8.4%				8/1/20		250		270		275
Resolute Energy Corp.	(i)(o)	Upstream	8.5%				5/1/20		6,230		6,550		2,951
RKI Exploration & Production, LLC	(f)(i)(o)	Upstream	8.5%				8/1/21		58,704		58,655		47,848
Samson Investment Co.	(i)	Upstream	9.8%				2/15/20		56,300		52,952		23,646
Sanchez Energy Corp.	(i)(m)	Upstream	7.8%				6/15/21		14,500		14,265		13,731
SandRidge Energy, Inc.	(i)(m)	Upstream	8.8%				1/5/20		22,075		20,428		15,066
SandRidge Energy, Inc.	(i)(m)	Upstream	8.1%				10/15/22		3,500		3,314		2,301
SandRidge Energy, Inc.	(i)(m)	Upstream	7.5%				3/15/21		5,000		4,487		3,244
SandRidge Energy, Inc.	(i)(m)	Upstream	7.5%				2/15/23		2,500		2,371		1,597
Sidewinder Drilling Inc.	(i)	Service & Equipment	9.8%				11/15/19		18,700		18,783		10,940
Silver II US Holdings, LLC	(f)	Service & Equipment	7.8%				12/15/20		1,835		1,968		1,743
Swift Energy Co.	(f)(i)(o)	Upstream	7.9%				3/1/22		20,000		20,045		10,253
Talos Production LLC	(f)(i)(o)	Upstream	9.8%				2/15/18		43,250		43,267		39,140
Teine Energy Ltd.	(i)(m)	Upstream	6.9%				9/30/22		12,900		12,802		10,303
Tenrgys, LLC	(j)(k)	Upstream	L+900		2.5	%	12/23/18		75,000		75,000		74,250
Warren Resources, Inc.	(f)(i)	Upstream	9.0%				8/1/22		38,900		38,377		24,313
Zachry Holdings, Inc.	(f)	Service & Equipment	7.5%				2/1/20		11,800		12,022		11,918

Total Subordinated Debt											1,124,512		940,313

See notes to unaudited consolidated financial statements.

Table of Contents

FS Energy and Power Fund

Consolidated Schedule of Investments (Continued)
As of December 31, 2014
(in thousands, except share amounts)



Portfolio Company^(a)	Footnotes	Industry		Number of Shares		Amortized Cost		Fair Value^(d)
Equity/Other—11.9%⁽ⁿ⁾
Abaco Energy Technologies LLC, Common Equity	(r)	Service & Equipment			6,944,444	$	6,944	$	6,944
Allied Downhole Technologies, LLC, Common Equity	(q)(r)	Service & Equipment			6,600,000		6,600		10,890
Allied Downhole Technologies, LLC, Warrants	(q)(r)	Service & Equipment			5,344,680		1,865		4,810
Altus Power America Holdings, LLC, Preferred Equity	(r)	Power			6,855,978		6,856		6,856
American Energy Appalachia Holdings, LLC, Common Equity	(r)(s)	Upstream			15,657,194		14,900		15,657
AP Exhaust Holdings, LLC, Common Equity	(q)(r)	Service & Equipment			811		811		580
BBH Operating LLC, Common Equity	(r)(t)	Upstream			1,000		1,000		931
BL Sand Hills Unit, L.P., Net Profits Interest	(r)(u)	Upstream			N/A		2,499		2,614
BL Sand Hills Unit, L.P., Overriding Royalty Interest	(u)	Upstream			N/A		357		322
Cimarron Energy Inc., Common Equity	(r)	Service & Equipment			2,500,000		2,500		2,500
Extraction Oil & Gas Holdings, LLC, Common Equity	(q)(r)	Upstream			4,191,800		11,250		10,480
Fortune Creek Co-Invest I L.P., LP Interest	(m)(v)	Midstream			N/A		16,904		15,111
FourPoint Energy, LLC, Common Equity, Class C Units	(p)(q)(r)	Upstream			66,000		66,000		84,150
FourPoint Energy, LLC, Common Equity, Class D Units	(p)(q)(r)	Upstream			12,374		8,176		15,901
Industrial Group Intermediate Holdings, LLC, Common Equity	(q)(r)	Service & Equipment			371,901		372		521
MB Precision Holdings LLC, Common Equity	(r)	Service & Equipment			490,213		490		490
Plains Offshore Operations Inc., Preferred Equity	(f)	Upstream	&n

FS Energy & Power Fund - FORM 10-Q - August 14, 2015

Attached files