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EX-32.1 - EXHIBIT 32.1 - FS Energy & Power Fundtv506685_ex32-1.htm
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EX-31.1 - EXHIBIT 31.1 - FS Energy & Power Fundtv506685_ex31-1.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2018

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
27-6822130
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
201 Rouse Boulevard
Philadelphia, Pennsylvania
19112
(Address of principal executive office)
(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 ☒ No ☐
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 ☐ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐
Accelerated filer ☐
Non-accelerated filer ☒
Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected to not use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐ No ☒
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 437,502,749 common shares of beneficial interest outstanding as of November 9, 2018.

TABLE OF CONTENTS
Page
PART I—FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
1
2
3
4
5
19
45
60
61
PART II—OTHER INFORMATION
62
62
62
62
62
62
63
69

PART I—FINANCIAL INFORMATION
Item 1.
Financial Statements.
FS Energy and Power Fund
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
September 30, 2018
(Unaudited)
December 31,
2017
Assets
Investments, at fair value
Non-controlled/unaffiliated investments (amortized cost—$3,101,641 and $3,490,683, respectively)
$ 3,035,721 $ 3,281,536
Non-controlled/affiliated investments (amortized cost—$880,350 and $839,619, respectively)
692,168 715,169
Controlled/affiliated investments (amortized cost—$27,464 and $27,464, respectively)
Total investments, at fair value (amortized cost—$4,009,455 and $4,357,766, respectively)
3,727,889 3,996,705
Cash
350,753 195,376
Receivable for investments sold and repaid
13,646 66,337
Interest receivable
48,130 51,293
Deferred financing costs
720
Reimbursement due from sponsor(1)
5,945
Prepaid expenses and other assets
52 55
Total assets
$ 4,140,470 $ 4,316,431
Liabilities
Payable for investments purchased
$ 98,398 $ 88,033
Credit facilities payable (net of deferred financing costs of  $9,034 and $1,883, respectively)(2)
622,633 1,218,117
Secured note payable (net of deferred financing costs of  $8,605 and $0, respectively)(2)
481,515
Shareholder distributions payable
8,724 10,938
Management fees payable
16,977 21,834
Administrative services expense payable
845 361
Interest payable
6,070 6,033
Trustees’ fees payable
187 252
Other accrued expenses and liabilities
4,285 4,821
Total liabilities
1,239,634 1,350,389
Commitments and contingencies ($28,104 and $28,104, respectively)(3)
Shareholders’ equity
Preferred shares, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding
Common shares, $0.001 par value, 700,000,000 shares authorized, 440,686,304 and 446,045,135 shares issued and outstanding, respectively
441 446
Capital in excess of par value
3,778,451 3,814,303
Accumulated loss
(878,056) (848,707)
Total shareholders’ equity
2,900,836 2,966,042
Total liabilities and shareholders’ equity
$ 4,140,470 $ 4,316,431
Net asset value per common share at period end
$ 6.58 $ 6.65
(1)
See Note 4 for a discussion of expense reimbursements paid to the Company by its former investment adviser and affiliates.
(2)
See Note 8 for a discussion of the Company’s financing arrangements.
(3)
See Note 9 for a discussion of the Company’s commitments and contingencies.
See notes to unaudited consolidated financial statements.
1

FS Energy and Power Fund
Unaudited Consolidated Statements of Operations
(in thousands, except share and per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2018
2017
2018
2017
Investment income
From non-controlled/unaffiliated investments:
Interest income
$ 64,440 $ 56,016 $ 193,777 $ 201,939
Paid-in-kind interest income
2,052 5,704 5,786 16,461
Fee income
1,974 7,056 9,849 37,419
Dividend income
150 150
From non-controlled/affiliated investments:
Interest income
11,267 28,660 35,064 53,525
Paid-in-kind interest income
458 3,635 1,669 9,957
Fee income
2,091 656
Total investment income
80,341 101,071 248,386 319,957
Operating expenses
Management fees
16,977 22,031 52,393 67,104
Subordinated income incentive fees(1)
10,499
Administrative services expenses
1,211 611 2,806 2,218
Share transfer agent fees
658 658 1,951 2,066
Accounting and administrative fees
312 384 1,012 1,216
Interest expense(2)
17,714 13,648 45,983 35,454
Trustees’ fees
187 244 821 744
Other general and administrative expenses
1,956 563 3,789 2,672
Total operating expenses
39,015 38,139 108,755 121,973
Less: Expense reimbursement from sponsor(3)
(7,095) (25,315)
Less: Expense reimbursement due to sponsor(3)
2,858
Net expenses
39,015 31,044 108,755 99,516
Net investment income
41,326 70,027 139,631 220,441
Realized and unrealized gain/loss
Net realized gain (loss) on investments:
Non-controlled/unaffiliated
(5,750) 7,271 (84,194) (70,244)
Non-controlled/affiliated
56 (1,060) 56
Net realized gain (loss) on foreign currency
1
Net change in unrealized appreciation (depreciation) on investments:
Non-controlled/unaffiliated
64,493 13,176 143,227 (47,179)
Non-controlled/affiliated
(12,831) (20,439) (63,732) (119,904)
Controlled/affiliated
(1,531)
Net change in unrealized gain (loss) on foreign currency
1 (1) 21 51
Total net realized and unrealized gain (loss)
45,969 (1,053) (4,622) (238,806)
Net increase (decrease) in net assets resulting from operations
$ 87,295 $ 68,974 $ 135,009 $ (18,365)
Per share information—basic and diluted
Net increase (decrease) in net assets resulting from operations (Earnings per Share)
$ 0.20 $ 0.16 $ 0.31 $ (0.04)
Weighted average shares outstanding
438,931,809 443,940,981 439,377,180 442,503,872
(1)
See Note 2 and Note 4 for a discussion of the methodology employed by the Company in calculating the subordinated income incentive fees.
(2)
See Note 8 for a discussion of the Company’s financing arrangements.
(3)
See Note 4 for a discussion of expense reimbursements payable to the Company by its former investment adviser and affiliates.
See notes to unaudited consolidated financial statements.
2

FS Energy and Power Fund
Unaudited Consolidated Statements of Changes in Net Assets
(in thousands)
Nine Months Ended
September 30,
2018
2017
Operations
Net investment income
$ 139,631 $ 220,441
Net realized gain (loss) on investments and foreign currency
(84,138) (70,243)
Net change in unrealized appreciation (depreciation) on investments
79,495 (168,614)
Net change in unrealized gain (loss) on foreign currency
21 51
Net increase (decrease) in net assets resulting from operations
135,009 (18,365)
Shareholder distributions(1)
Distributions to shareholders
(164,358) (234,473)
Net decrease in net assets resulting from shareholder distributions
(164,358) (234,473)
Capital share transactions(2)
Reinvestment of shareholder distributions
90,329 140,580
Repurchases of common shares
(126,186) (88,730)
Net increase (decrease) in net assets resulting from capital share transactions
(35,857) 51,850
Total increase (decrease) in net assets
(65,206) (200,988)
Net assets at beginning of period
2,966,042 3,348,894
Net assets at end of period
$ 2,900,836 $ 3,147,906
(1)
See Note 5 for a discussion of the sources of distributions paid by the Company.
(2)
See Note 3 for a discussion of the Company’s common share transactions.
See notes to unaudited consolidated financial statements.
3

FS Energy and Power Fund
Unaudited Consolidated Statements of Cash Flows
(in thousands)
Nine Months Ended
September 30,
2018
2017
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations
$ 135,009 $ (18,365)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations
to net cash provided by (used in) operating activities:
Purchases of investments
(1,155,976) (1,591,008)
Paid-in-kind interest
(7,455) (26,418)
Proceeds from sales and repayments of investments
1,437,531 1,064,392
Net realized (gain) loss on investments
84,138 70,244
Net change in unrealized (appreciation) depreciation on investments
(79,495) 168,614
Accretion of discount
(9,927) (17,668)
Amortization of deferred financing costs and discount
2,759 3,160
(Increase) decrease in receivable for investments sold and repaid
52,691 (18,266)
(Increase) decrease in interest receivable
3,163 (25,873)
(Increase) decrease in expense reimbursement due from sponsor(1)
5,945 (7,095)
(Increase) decrease in prepaid expenses and other assets
3 (102)
Increase (decrease) in payable for investments purchased
10,365 15,194
Increase (decrease) in management fees payable
(4,857) 1,176
Increase (decrease) in administrative services expense payable
484 (423)
Increase (decrease) in interest payable(2)
37 395
Increase (decrease) in trustees’ fees payable
(65) (6)
Increase (decrease) in other accrued expenses and liabilities
(536) (418)
Net cash provided by (used in) operating activities
473,814 (382,467)
Cash flows from financing activities
Reinvestment of shareholder distributions
90,329 140,580
Repurchases of common shares
(126,186) (88,730)
Shareholder distributions
(166,572) (233,072)
Borrowings under credit facilities(2)
321,667 858,263
Borrowings under secured notes(2)
489,865
Repayments of credit facilities(2)
(910,000) (186,928)
Repayments under repurchase facility(2)
(325,000)
Deferred financing costs paid
(17,540) (2,601)
Net cash provided by (used in) financing activities
(318,437) 162,512
Total increase (decrease) in cash
155,377 (219,955)
Cash at beginning of period
195,376 317,520
Cash at end of period
$ 350,753 $ 97,565
Supplemental disclosure
Non-cash purchases of investments
$ (135,113) $ (16,957)
Non-cash sales of investments
$ 135,113 $ 16,957
(1)
See Note 4 for a discussion of expense reimbursements payable to the Company by its former investment adviser and affiliates.
(2)
See Note 8 for a discussion of the Company’s credit facilities. During the nine months ended September 30, 2018 and 2017, the Company paid $43,187 and $26,945, respectively, in interest expense on the credit facilities and secured notes and $0 and $4,954, respectively, in interest expense pursuant to the repurchase agreement.
See notes to unaudited consolidated financial statements.
4

FS Energy and Power Fund
Unaudited Consolidated Schedule of Investments
As of September 30, 2018
(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—33.4%
Abaco Energy Technologies LLC
(h)
Service & Equipment
L+950
1.0%
11/20/20
$ 61,128 $ 59,012 $ 61,281
Allied Wireline Services, LLC
(w)(x)
Service & Equipment
L+950
1.5%
6/30/20
115,104 114,902 115,104
Altus Power America, Inc.
(h)(w)(y)
Power
L+750
1.5%
9/30/21
83,963 83,963 81,445
Altus Power America, Inc.
(e)(w)(y)
Power
L+750
1.5%
9/30/21
5,762 5,762 5,589
ARB Midstream Operating Company, LLC
(w)(x)
Midstream
L+725
1.0%
11/6/21
3,182 3,170 3,194
Bioenergy Infrastructure Holdings Limited
(k)(w)
Power
L+725
1.0%
12/22/22
957 950 976
Bioenergy Infrastructure Holdings Limited
(e)(k)(w)
Power
L+725
1.0%
12/22/22
543 543 554
Bioenergy Infrastructure Holdings Limited
(e)(k)(w)
Power
L+725
1.0%
12/22/22
544 544 554
BL Sand Hills Unit, L.P.
(w)(x)(y)
Upstream
Prime+650
3.5%
12/17/21
20,000 17,401 20,000
Cimarron Energy Inc.
(m)(o)(w)(x)
Service & Equipment
L+1150 PIK (L+1150 Max PIK)
1.0%
12/15/19
25,491 24,841 13,606
Compass Power Generation LLC
(x)
Power
L+350
1.0%
12/20/24
2,969 2,969 2,988
Eagle Midstream Canada Finance Inc.
(k)(w)(x)
Midstream
8.5%, 1% PIK
9/27/20
175,000 175,000 173,031
Felix Investments Holdings II, LLC
(w)
Upstream
L+650
1.0%
8/9/22
3,933 3,924 3,981
Fortis Minerals Intermediate Holdings, LLC
(w)
Upstream
L+625
1.0%
2/16/25
18,760 18,652 19,148
Fortis Minerals Intermediate Holdings, LLC
(e)(w)
Upstream
L+625
1.0%
2/16/25
28,140 28,140 28,722
Industrial Group Intermediate Holdings, LLC
(h)(w)(x)
Industrials
L+800
1.3%
5/31/20
20,972 20,972 20,998
JSS Holdings, Inc.
(h)(w)
Industrials
L+800, 0.0% PIK (2.5% Max PIK)
1.0%
3/31/23
14,926 14,810 15,657
Lusk Operating LLC
(m)(o)(w)(x)(z)
Upstream
Prime+500 PIK (8.8% Max PIK)
3.3%
10/31/18
29,297 27,464
MB Precision Holdings LLC
(m)(o)(w)(x)
Industrials
L+725, 2.3% PIK (2.3% Max PIK)
1.3%
1/23/21
13,378 13,302 5,853
MECO IV LLC
(h)(w)
Upstream
L+725
1.5%
9/14/21
12,250 12,008 12,250
MECO IV LLC
(e)(w)
Upstream
L+725
1.5%
9/14/21
22,750 22,750 22,750
Navitas Midstream Midland Basin LLC
(f)
Midstream
L+450
1.0%
12/13/24
16,341 16,350 16,326
New Age (African Global Energy) Limited
(k)(w)(x)
Upstream
15.0%
6/28/20
1,658 1,645 1,717
NNE Holding LLC
(h)(w)
Upstream
L+800
3/2/22
30,917 30,893 30,960
NNE Holding LLC
(e)(w)
Upstream
L+800
3/2/22
4,083 4,083 4,089
ORYX Southern Delaware Holdings LLC
Midstream
L+325
1.0%
2/28/25
17,905 17,989 17,670
Panda Hummel Station LLC
(f)
Power
L+600
1.0%
10/27/22
3,000 2,940 2,903
Panda Hummel Station LLC
(f)
Power
L+600
1.0%
10/27/22
17,000 16,660 16,448
Panda Stonewall LLC
(f)
Power
L+550
1.0%
11/13/21
15,000 15,113 15,113
Permian Production Partners LLC
(h)(w)
Upstream
L+600
1.0%
5/18/24
42,798 42,021 42,905
Plainfield Renewable Energy Holdings LLC
(w)
Power
10.0%
8/22/25
2,500 2,500 2,500
Plainfield Renewable Energy Holdings LLC, Letter of Credit
(e)(w)
Power
10.0%
8/22/25
2,709 2,709 2,709
Plainfield Renewable Energy Holdings LLC
(w)
Power
15.5%
8/22/25
9,375 9,375 9,375
Power Distribution, Inc.
(w)(x)
Power
L+725
1.3%
1/25/23
29,423 29,423 29,901
Strike, LLC
(h)
Midstream
L+800
1.0%
11/30/22
22,813 22,297 23,155
Swift Worldwide Resources US Holdings Corp.
(h)(w)(x)
Service & Equipment
L+1000, 1.0% PIK (1.0% Max PIK)
1.0%
7/20/21
58,469 58,469 59,639
Traverse Midstream Partners LLC
(f)(h)
Midstream
L+400
1.0%
9/27/24
84,172 84,662 84,917
Ultra Resources, Inc.
(f)
Upstream
L+300
1.0%
4/12/24
42,000 37,807 37,966
Warren Resources, Inc.
(h)(w)(x)(y)
Upstream
L+1000, 1.0% PIK (1.0% Max PIK)
1.0%
5/22/20
27,230 27,230 27,230
Total Senior Secured Loans—First Lien
1,073,245 1,033,204
Unfunded Loan Commitments
(64,531) (64,531)
Net Senior Secured Loans—First Lien
1,008,714 968,673
See notes to unaudited consolidated financial statements.
5

FS Energy and Power Fund
Unaudited Consolidated Schedule of Investments (Continued)
As of September 30, 2018
(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—Second Lien—21.5%
Aethon United BR LP
(h)(w)
Upstream
L+675
1.0%
9/8/23
$ 103,919 $ 102,619 $ 104,563
Aethon United BR LP
(e)(w)
Upstream
L+675
1.0%
9/8/23
23,981 23,981 24,130
Arena Energy, LP
(h)(w)(x)
Upstream
L+900, 4.0% PIK (4.0% Max PIK)
1.0%
1/24/21
110,955 110,955 110,955
Bellatrix Exploration Ltd.
(k)(w)
Upstream
8.5%
7/26/23
11,256 11,256 11,284
Bellatrix Exploration Ltd.
(e)(k)(w)
Upstream
8.5%
7/26/23
18,759 18,759 18,806
Bellatrix Exploration Ltd.
(k)(w)(x)
Upstream
8.5%
7/26/23
54,108 48,120 47,886
Chisholm Oil and Gas Operating, LLC
(h)(w)(x)
Upstream
L+800
1.0%
3/21/24
196,000 196,000 194,569
Encino Acquisition Partners Holdings LLC
(f)
Upstream
L+675
1.0%
9/26/25
20,000 19,800 20,100
Granite Acquisition, Inc.
(x)
Power
L+725
1.0%
12/19/22
22,331 22,061 22,554
Horn Intermediate Holdings, Inc.
(h)(w)(x)
Service & Equipment
L+775
1.3%
10/2/18
50,250 50,050 50,250
Penn Virginia Holdings Corp.
(h)(k)(w)
Upstream
L+700
1.0%
9/29/22
20,000 20,000 20,300
Rosehill Operating Company, LLC
(w)(x)
Upstream
10.0%
1/31/23
1,667 1,651 1,706
SilverBow Resources, Inc.
(h)(k)(w)
Upstream
L+750
1.0%
12/15/24
19,000 18,827 19,072
Titan Energy Operating, LLC
(m)(o)(w)(x)(y)
Upstream
L+1300 PIK (L+1300 Max PIK)
1.0%
2/23/20
129,586 100,902 19,956
Total Senior Secured Loans—Second Lien
744,981 666,131
Unfunded Loan Commitments
(42,740) (42,740)
Net Senior Secured Loans—Second Lien
702,241 623,391
Senior Secured Bonds—19.6%
Black Swan Energy Ltd.
(h)(k)(w)(x)
Upstream
9.0%
1/20/24
90,000 90,000 90,000
Denbury Resources Inc.
(k)
Upstream
7.5%
2/15/24
20,000 19,994 20,666
Denbury Resources Inc.
(k)
Upstream
7.5%
3/31/22
27,341 29,162 29,494
FourPoint Energy, LLC
(h)(i)(j)(w)(x)(y)
Upstream
9.0%
12/31/21
235,125 228,468 237,476
Sunnova Energy Corp.
(h)(w)(y)
Power
6.0%, 6.0% PIK (6.0% Max PIK)
1/24/19
26,406 26,406 26,373
Talos Production LLC
(i)(x)
Upstream
11.0%
4/3/22
36,250 37,980 38,923
Velvet Energy Ltd.
(h)(k)(w)
Upstream
9.0%
10/5/23
120,000 120,000 125,400
Total Senior Secured Bonds
552,010 568,332
See notes to unaudited consolidated financial statements.
6

FS Energy and Power Fund
Unaudited Consolidated Schedule of Investments (Continued)
As of September 30, 2018
(in thousands, except share amounts)
Portfolio Company(a)
Footnotes
Industry
Rate(b)
Floor
Maturity
Principal
Amount(c)
Amortized
Cost
Fair
Value(d)
Subordinated Debt—26.8%
Amerigas—Amerigas Partners, L.P.
(k)(x)
Midstream
5.8%
5/20/27
$ 13,267 $ 13,033 $ 13,085
Amerigas—Amerigas Partners, L.P.
(k)(x)
Midstream
5.9%
8/20/26
4,508 4,461 4,489
Archrock Partners, L.P.
(k)
Midstream
6.0%
10/1/22
1,333 1,348 1,351
Archrock Partners, L.P.
(k)
Midstream
6.0%
4/1/21
5,690 5,732 5,725
Ascent Resources Utica Holdings, LLC
(x)
Upstream
10.0%
4/1/22
158,000 158,000 178,046
Bruin E&P Partners, LLC
(x)
Upstream
8.9%
8/1/23
24,250 23,675 25,125
Canbriam Energy Inc.
(h)(k)(x)
Upstream
9.8%
11/15/19
109,790 108,631 109,516
Compressco Partners, LP
(x)
Midstream
7.3%
8/15/22
19,050 18,953 17,717
Covey Park Energy LLC
(x)
Upstream
7.5%
5/15/25
59,289 59,709 60,319
Endeavor Energy Resources, LP
Upstream
5.5%
1/30/26
9,869 9,721 9,901
Global Jet Capital Holdings, LP
(w)(x)
Industrials
15.0% PIK (15.0% Max PIK)
1/30/25
950 950 941
Global Jet Capital Holdings, LP
(w)(x)
Industrials
15.0% PIK (15.0% Max PIK)
4/30/25
6,035 6,035 5,983
Global Jet Capital Holdings, LP
(w)(x)
Industrials
15.0% PIK (15.0% Max PIK)
9/3/25
1,247 1,247 1,235
Global Jet Capital Holdings, LP
(w)(x)
Industrials
15.0% PIK (15.0% Max PIK)
9/29/25
1,174 1,174 1,162
Global Jet Capital Holdings, LP
(w)(x)
Industrials
15.0% PIK (15.0% Max PIK)
12/2/26
1,033 1,033 1,020
Great Western Petroleum, LLC
(w)(x)
Upstream
8.5%
4/15/25
13,636 12,978 12,426
Great Western Petroleum, LLC
(w)(x)
Upstream
9.0%
9/30/21
35,830 35,736 35,185
Hammerhead Resources Inc.
(h)(k)(x)
Upstream
9.0%
7/10/22
100,000 97,587 96,750
Hilcorp Energy I, L.P.
Upstream
5.0%
12/1/24
4,378 4,252 4,264
Hilcorp Energy I, L.P.
Upstream
5.8%
10/1/25
7,067 7,088 7,102
Lonestar Resources America Inc.
(x)
Upstream
11.3%
1/1/23
37,500 38,587 41,266
Martin Midstream Partners L.P.
(k)(x)
Midstream
7.3%
2/15/21
12,723 12,183 12,729
Moss Creek Resources, LLC
(x)
Upstream
7.5%
1/15/26
40,500 40,385 40,434
Suburban Propane Partners LP
(k)
Midstream
5.8%
3/1/25
8,433 8,210 8,191
Suburban Propane Partners LP
(k)
Midstream
5.9%
3/1/27
34,858 32,850 33,289
Tenrgys, LLC
(i)(m)(o)(w)(x)
Upstream
L+900
2.5%
12/23/18
75,000 75,000 50,906
Total Subordinated Debt
778,558 778,157
See notes to unaudited consolidated financial statements.
7

FS Energy and Power Fund
Unaudited Consolidated Schedule of Investments (Continued)
As of September 30, 2018
(in thousands, except share amounts)
Portfolio Company(a)
Footnotes
Industry
Rate(b)
Maturity
Number of
Shares
Amortized
Cost
Fair
Value(d)
Equity/Other—27.2%(l)
Abaco Energy Technologies LLC, Common Equity
(o)(w)(x)
Service & Equipment
6,944,444 $ 6,944 $ 3,038
Abaco Energy Technologies LLC, Preferred Equity
(o)(w)(x)
Service & Equipment
28,942,003 1,447 15,195
Allied Downhole Technologies, LLC, Common Equity
(i)(n)(o)(w)(x)
Service & Equipment
7,431,113 7,223 10,218
Allied Downhole Technologies, LLC, Warrants, 2/28/19
(i)(n)(o)(w)(x)
Service & Equipment
5,344,680 1,865 7,349
Altus Power America Holdings, LLC, Common Equity
(i)(o)(p)(w)(x)(y)
Power 12,474,205 12,474 1,871
Altus Power America Holdings, LLC, Preferred Equity
(i)(w)(x)(y)
Power
9.0%, 5.0% PIK (5.0% Max PIK)
10/3/23 27,987,805 27,988 27,008
Ascent Resources Utica Holdings, LLC, Common Equity
(o)(q)(w)(x)
Upstream 148,692,909 44,700 47,582
BL Sand Hills Unit, L.P., Net Profits Interest
(o)(s)(w)(x)(y)
Upstream N/A 5,180 1,077
BL Sand Hills Unit, L.P., Overriding Royalty Interest
(s)(w)(x)(y)
Upstream N/A 740 741
BL Sand Hills Unit, L.P., Series A Units
(g)(o)(w)(x)(y)
Upstream 29,117 24,019 4,840
Chisholm Oil and Gas, LLC, Series A Units
(g)(o)(w)(x)
Upstream 14,700,000 14,700 13,627
Cimarron Energy Holdco Inc., Common Equity
(o)(w)(x)
Service & Equipment
3,675,487 3,323
Cimarron Energy Holdco Inc., Preferred Equity
(o)(w)(x)
Service & Equipment
626,806 627 172
FourPoint Energy, LLC, Common Equity, Class C-II-A Units
(i)(n)(o)(w)(x)(y)
Upstream 66,000 66,000 18,645
FourPoint Energy, LLC, Common Equity, Class D Units
(i)(n)(o)(w)(x)(y)
Upstream 12,374 8,176 3,527
FourPoint Energy, LLC, Common Equity, Class E-II Units
(g)(o)(w)(x)(y)
Upstream 150,937 37,734 42,451
FourPoint Energy, LLC, Common Equity, Class E-III Units
(g)(i)(n)(o)(w)(x)(y)
Upstream 222,750 55,688 62,927
Global Jet Capital Holdings, LP, Preferred Equity
(o)(w)(x)
Industrials 2,785,562 2,786 1,017
Great Western Petroleum, LLC, Preferred Equity
(i)(n)(w)(x)
Upstream
15.5%
12/31/27 36,363 37,419 35,744
Harvest Oil & Gas Corp., Common Equity
(o)(w)(x)(y)
Upstream 1,350,620 29,714 27,012
Industrial Group Intermediate Holdings, LLC, Common Equity
(i)(n)(o)(w)(x)
Industrials 472,755 473 425
JSS Holdco, LLC, Net Profits Interest
(o)(w)(x)
Industrials N/A 148
Lusk Operating LLC, Common Equity
(o)(r)(w)(x)(z)
Upstream 2,000
MB Precision Investment Holdings LLC, Class A-2 Units
(i)(n)(o)(w)(x)
Industrials 490,213 490
New Age (African Global Energy) Limited, Warrants, 6/28/26
(k)(o)(w)(x)
Upstream 32,423 19
NuStar, Preferred Equity
(k)(w)(x)
Midstream
12.8%
6/29/28 5,910,165 145,777 171,785
PDI Parent LLC, Common Equity
(o)(w)(x)
Power 1,384,615 1,385 1,142
Ridgeback Resources Inc., Common Equity
(j)(k)(o)(t)(w)(x)(y)
Upstream 9,599,928 58,985 66,297
Rosehill Resources, Inc. Preferred Equity
(o)(w)(x)
Upstream 2,536 2,511 2,630
Segreto Power Holdings, LLC, Preferred Equity
(g)(w)(x)
Power
13.1%
5/8/25 70,297 69,214 72,839
Sunnova Energy Corp., Common Equity
(o)(w)(x)(y)
Power 6,667,368 25,026
Sunnova Energy Corp., Preferred Equity
(o)(w)(x)(y)
Power 1,117,214 5,948 6,457
Swift Worldwide Resources Holdco Limited, Common Equity
(k)(o)(u)(w)(x)
Service & Equipment
3,750,000 6,029 2,625
Synergy Offshore LLC, Preferred Equity
(i)(m)(o)(v)(w)(x)
Upstream 71,131 93,009 26,247
TE Holdings, LLC, Common Equity
(g)(o)(x)
Upstream 2,225,950 18,921 2,226
TE Holdings, LLC, Preferred Equity
(j)(o)(x)
Upstream 1,475,531 14,734 9,591
The Brock Group, Inc., Common Equity
(j)(o)(w)(x)
Service & Equipment
786,094 15,617
Titan Energy, LLC, Common Equity
(i)(o)(x)(y)
Upstream 555,496 17,554 228
USA Compression Partners, LP, Preferred Equity
(k)(w)(x)
Midstream
9.8%
4/3/28 79,336 77,333 82,196
USA Compression Partners, LP, Warrants (Market), 4/3/28
(k)(o)(w)(x)
Midstream 793,359 555 801
USA Compression Partners, LP, Warrants (Premium), 4/3/28
(k)(o)(w)(x)
Midstream 1,586,719 714 809
Warren Resources, Inc., Common Equity
(j)(o)(w)(x)(y)
Upstream 4,415,749 20,754 16,780
White Star Petroleum Holdings, LLC, Common Equity
(g)(o)(w)(x)
Upstream 4,867,084 4,137 2,069
Total Equity/Other
967,932 789,336
TOTAL INVESTMENTS—128.5%
$ 4,009,455 3,727,889
LIABILITIES IN EXCESS OF OTHER ASSETS—(28.5%)
(827,053)
NET ASSETS—100.0%
$ 2,900,836
See notes to unaudited consolidated financial statements.
8

FS Energy and Power Fund
Unaudited Consolidated Schedule of Investments (Continued)
As of September 30, 2018
(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 September 30, 2018, the three-month London Interbank Offered Rate, or LIBOR or “L,” was 2.40% and the U.S. Prime Lending Rate, or Prime, was 5.25%. PIK means paid-in-kind. PIK income accruals may be adjusted based on the fair value of the underlying investment.
(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. The stated rate reflects the spread disclosed at the time of commitment and may not indicate the actual rate received upon funding.
(f)
Position or portion thereof unsettled as of September 30, 2018.
(g)
Security held within FS Energy Investments, LLC, a wholly-owned subsidiary of the Company.
(h)
Security or portion thereof held within Gladwyne Funding LLC and is pledged as collateral supporting the obligations outstanding under the term loan facility with Goldman Sachs Bank USA (see Note 8).
(i)
Security or portion thereof held within Foxfields Funding LLC and is pledged as collateral supporting the obligations outstanding under the term loan facility with Fortress Credit Co LLC (see Note 8).
(j)
Security or portion thereof held within Bryn Mawr Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Barclays Bank PLC (see Note 8).
(k)
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 September 30, 2018, 71.8% of the Company’s total assets represented qualifying assets.
(l)
Listed investments may be treated as debt for U.S. generally accepted accounting principles, or GAAP, or tax purposes.
(m)
Security was on non-accrual status as of September 30, 2018.
(n)
Security held within FSEP Investments, Inc., a wholly-owned subsidiary of Foxfields Funding LLC.
(o)
Security is non-income producing.
(p)
Security is held within EP Altus Investments, LLC, a wholly-owned subsidiary of Foxfields Funding LLC.
(q)
Security held within EP American Energy Investments, Inc., a wholly-owned subsidiary of the Company.
(r)
Security held within FSEP-BBH, Inc., a wholly-owned subsidiary of the Company.
(s)
Security held within EP Burnett Investments, Inc., a wholly-owned subsidiary of the Company.
(t)
Investment denominated in Canadian dollars. Amortized cost and fair value are converted into U.S. dollars as of September 30, 2018.
(u)
Investment denominated in British pounds. Amortized cost and fair value are converted into U.S. dollars as of September 30, 2018.
(v)
Security held within EP Synergy Investments, Inc., a wholly-owned subsidiary of Foxfields Funding LLC.
(w)
Security is classified as Level 3 in the Company’s fair value hierarchy (See Note 7).
(x)
Security or portion thereof is pledged as collateral supporting the amounts outstanding under the Senior Secured Notes with JPMorgan Chase Bank, N.A. (see Note 8).
See notes to unaudited consolidated financial statements.
9

FS Energy and Power Fund
Unaudited Consolidated Schedule of Investments (Continued)
As of September 30, 2018
(in thousands, except share amounts)
(y)
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 more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of September 30, 2018, the Company held investments in portfolio companies 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 companies for the nine months ended September 30, 2018:
Portfolio Company
Fair Value at
December 31,
2017
Purchases,
Paid-in-Kind
Interest and
Transfers In
Sales,
Repayments
and
Transfers
Out
Accretion
of
Discount
Net
Realized
Gain
(Loss)
Net Change
in
Unrealized
Appreciation
(Depreciation)
Fair Value at
September 30,
2018
Interest
Income(2)
PIK
Income(2)
Fee
Income(2)
Senior Secured Loans—First Lien
Altus Power America, Inc.(1)
$ 75,353 $ 6,585 $ $ $ $ (666) $ 81,272 $ 5,833 $ $
BL Sand Hills Unit, L.P.
20,000 32 (32) 20,000 1,720
Warren Resources, Inc.
81,214 262 (52,265) (1,981) 27,230 2,822 262 2,091
Senior Secured Loans—Second Lien
Titan Energy Operating, LLC
62,026 (42,070) 19,956 895
Senior Secured Bonds
FourPoint Energy, LLC
238,946 (1,485) 2,138 (2,123) 237,476 18,126
Ridgeback Resources Inc.
3,887 (3,887) 6 56 (62) 297
Sunnova Energy Corp.
35,078 (8,672) (33) 26,373 2,596 1,407
Equity/Other
Altus Power America Holdings, LLC, Common Equity
1,871 1,871
Altus Power America Holdings, LLC, Preferred Equity
25,793 6,036 (3,841) (980) 27,008 2,775
BL Sand Hills Unit, L.P., Net Profits Interest
966 111 1,077
BL Sand Hills Unit, L.P., Overriding Royalty Interest
726 15 741
BL Sand Hills Unit, L.P., Series A Units
7,000 (2,160) 4,840
FourPoint Energy, LLC, Common Equity, Class C-II-A Units
19,140 (495) 18,645
FourPoint Energy, LLC, Common Equity, Class D Units
3,619 (92) 3,527
FourPoint Energy, LLC, Common Equity, Class E-II Units
43,395 (944) 42,451
FourPoint Energy, LLC, Common Equity, Class E-III Units
64,598 (1,671) 62,927
Harvest Oil & Gas Corp., Common Equity
29,714 (2,702) 27,012
Ridgeback Resources Inc., Common Equity
58,284 8,013