Kayne Anderson Midstream/Energy Fund Provides Unaudited Balance Sheet Information and Announces its Net Asset Value and Asset Coverage Ratios at February 28, 2017

HOUSTON--()--Kayne Anderson Midstream/Energy Fund, Inc. (the “Fund”) (NYSE: KMF) today provided a summary unaudited statement of assets and liabilities and announced its net asset value and asset coverage ratios under the Investment Company Act of 1940 (the “1940 Act”) as of February 28, 2017.

As of February 28, 2017, the Fund’s net assets were $392 million and its net asset value per share was $17.78. As of February 28, 2017, the Fund’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 456% and the Fund’s asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 353%.

 

Kayne Anderson Midstream/Energy Fund, Inc.

Statement of Assets and Liabilities
February 28, 2017
(Unaudited)

  (in millions)   Per Share
Investments $ 546.9 $ 24.82
Cash and cash equivalents 1.4 0.06
Deposits 0.2 0.01
Accrued income 1.8 0.08
Receivables for securities sold 0.6 0.03
Other assets 2.0 0.09
Total assets 552.9 25.09
 
Term loan 29.0 1.31
Senior notes 91.0 4.13
Preferred stock 35.0 1.59
Total leverage 155.0 7.03
 
Payable for securities purchased 3.2 0.15
Other liabilities 3.0 0.13
Total liabilities 6.2 0.28
 
Net assets $ 391.7 $ 17.78
 
The Fund had 22,034,170 common shares outstanding as of February 28, 2017.
 

As of February 28, 2017, equity and debt investments were 86% and 14%, respectively, of the Fund’s long-term investments of $547 million. Long-term investments were comprised of Midstream Company (46%), MLP and MLP Affiliate (38%), Other Energy (2%), and Debt (14%).

The Fund’s ten largest holdings by issuer at February 28, 2017 were:

     

Units / Shares
(in thousands)

Amount
($ millions)

Percent of
Long-Term
Investments

1. Plains GP Holdings, L.P. (Midstream MLP) 1,356 $44.6 8.1%
2. ONEOK, Inc. (Midstream Company)* 807 43.6 8.0%
3. Enbridge Energy Management, L.L.C. (Midstream MLP) 1,805 31.4 5.7%
4. Targa Resources Corp. (Midstream Company) 552 31.2 5.7%
5. The Williams Companies, Inc. (Midstream Company) 1,084 30.7 5.6%
6. Enbridge, Inc. (Midstream Company) 477 20.0 3.7%
7. KNOT Offshore Partners LP (Midstream Company) 802 17.7 3.2%
8. GasLog Partners LP (Midstream Company) 740 17.6 3.2%
9. Golar LNG Partners LP (Midstream Company) 752 16.9 3.1%
10. Energy Transfer Partners, L.P. (Midstream MLP)** 423 16.0 2.9%
_____________

* On February 1, 2017, ONEOK, Inc. (“OKE”) and ONEOK Partners, L.P. (“OKS”) announced an agreement to
combine in a stock-for-unit merger transaction. On a combined basis, OKE and OKS represent 9.1% of long-term
investments as of February 28, 2017.


** On November 21, 2016, Energy Transfer Partners, L.P. (“ETP”) and Sunoco Logistics Partners L.P. (“SXL”)
announced an agreement to combine in a unit-for-unit merger. On a combined basis, ETP and SXL represent 4.6%
of long-term investments as of February 28, 2017.

 

The Fund is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940 whose common stock is traded on the NYSE. The Fund’s investment objective is to provide a high level of total return with an emphasis on making quarterly cash distributions to its stockholders by investing at least 80% of its total assets in securities of companies in the Midstream/Energy Sector, consisting of: (a) Midstream Master Limited Partnerships (“MLPs”), (b) Midstream Companies, (c) Other MLPs and (d) Other Energy Companies. The Fund anticipates that the majority of its investments will consist of investments in Midstream MLPs and Midstream Companies. See Glossary of Key Terms on page ii of the Prospectus for definitions of certain key terms.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ from the Fund’s historical experience and its present expectations or projections indicated in any forward-looking statements. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; MLP industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in the Fund’s filings with the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund’s investment objective will be attained.

Contacts

KA Fund Advisors, LLC
Monique Vo, 877-657-3863
http://www.kaynefunds.com/

Contacts

KA Fund Advisors, LLC
Monique Vo, 877-657-3863
http://www.kaynefunds.com/