ClearBridge MLP and Midstream Fund Inc. Announces Unaudited Balance Sheet Information as of February 29, 2024

Rhea-AI Summary

ClearBridge MLP and Midstream Fund Inc. (CEM) reported its unaudited financial data as of February 29, 2024. The Fund's net assets were $609.6 million, with a net asset value per share of $45.86. The asset coverage ratio for senior indebtedness was 434%, and for total leverage, it was 337%. The Fund's top ten equity holdings accounted for 74.4% of total investments.

Insights

Financial Analyst

The disclosure of ClearBridge MLP and Midstream Fund Inc.'s net asset value (NAV), asset coverage ratios and top equity holdings as of February 29, 2024, provides critical information for investors evaluating the health and performance of the Fund. A NAV of $45.86 per share reflects the market value of the Fund's assets minus its liabilities on a per-share basis, a fundamental metric for shareholders to assess the value of their investment relative to the market price.

The reported asset coverage ratios, significantly above the minimum 300% generally required for senior securities by the 1940 Act, indicate a strong cushion against potential losses and a lower risk of default on obligations. This robust coverage could reassure investors of the Fund's ability to manage leverage effectively.

Furthermore, the Fund's concentration in top equity holdings, particularly within the energy sector, suggests a strategic focus that investors should consider in the context of market volatility and sector performance. The prominence of Energy Transfer LP and other major energy players in the portfolio could reflect on the Fund's performance in relation to energy market dynamics.

Market Research Analyst

An analysis of the Fund's top ten equity holdings, which account for 74.4% of its investments, reveals a concentrated exposure to the midstream segment of the energy industry. This focus on entities like Energy Transfer LP and ONEOK Inc. highlights the Fund's investment strategy, which may appeal to investors seeking targeted exposure to energy infrastructure assets such as pipelines and storage facilities.

However, this concentration also implies a higher sensitivity to sector-specific risks, including regulatory changes, commodity price fluctuations and shifts in energy demand. Investors would benefit from understanding these sectoral risks, as they could significantly impact the Fund's performance. Additionally, the energy sector's transition towards renewable sources could affect the long-term valuation of these holdings.

Legal Expert

Compliance with the Investment Company Act of 1940 is a legal requirement for investment funds like ClearBridge MLP and Midstream Fund Inc. The Fund's reported asset coverage ratios far exceed the statutory minimum, which legally permits the Fund to issue additional senior securities if desired. This legal cushion provides the Fund with financial flexibility, which can be advantageous in capitalizing on market opportunities or for defensive measures against market downturns.

The unaudited nature of the financial data warrants caution, as final audited figures could differ. Investors often rely on audited figures for higher accuracy. The Fund's adherence to regulatory filing requirements, such as reports on Form N-PORT, affirms its transparency and accountability to shareholders, which is a crucial aspect of legal and regulatory compliance.

NEW YORK--(BUSINESS WIRE)-- ClearBridge MLP and Midstream Fund Inc. (NYSE: CEM) announced today the unaudited statement of assets and liabilities, the net asset value and asset coverage ratio of the Fund as of February 29, 2024.

As of February 29, 2024, the Fund’s net assets were $609.6 million, and its net asset value per share was $45.86. The Fund’s asset coverage ratio under the Investment Company Act of 1940 (the “1940 Act”) with respect to senior indebtedness was 434% and the Fund’s asset coverage ratio under the 1940 Act with respect to total leverage was 337%.

	As of February 29, 2024
	Amount (millions)			Per Share
Investments	$	875.0		$	65.82
Cash and Cash Equivalents		9.4			0.71
Other Assets		23.3			1.75
Total Assets	$	907.7		$	68.28
Senior Notes*	$	45.0		$	3.38
Loans Outstanding*		154.5			11.62
Mandatory Redeemable Preferred Shares*		57.4			4.32
Total Leverage	$	256.9		$	19.32
Income Tax Payable †	$	14.5		$	1.09
Deferred Tax Liability		3.3			0.25
Other Liabilities		23.4			1.76
Total Liabilities	$	41.2		$	3.10
Net Assets	$	609.6		$	45.86
Outstanding Shares		13,294,195
* The Fund's asset coverage ratio under the 1940 Act with respect to senior indebtedness was 434%.
* The Fund's asset coverage ratio under the 1940 Act with respect to total leverage was 337%.
† Income tax payable, previously netted in Other Liabilities, resulted from portfolio turnover.
Top Ten Equity Holdings (as of February 29, 2024)**
	Market Value
Name	(millions)			% of Investments		***
Energy Transfer LP	$	110.6			12.6%
ONEOK Inc.	$	86.7			9.9%
MPLX LP	$	78.3			8.9%
Western Midstream Partners LP	$	71.2			8.1%
Enterprise Products Partners LP	$	68.1			7.8%
Targa Resources Corp.	$	57.3			6.5%
Plains All American Pipeline LP	$	46.9			5.4%
Plains GP Holdings LP	$	46.4			5.3%
Williams Cos. Inc.	$	45.6			5.2%
Kinder Morgan Inc.	$	41.1			4.7%
	$	652.2			74.4%
** Subject to change at any time
*** Percent of Total Equity Investments

ClearBridge MLP and Midstream Fund Inc. is a non-diversified, closed-end management investment company, which is advised by Franklin Templeton Fund Adviser, LLC (“FTFA”) (formerly known as Legg Mason Partners Fund Advisor, LLC) and subadvised by ClearBridge Investments, LLC (“ClearBridge”). FTFA and ClearBridge are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. (“Franklin Resources”).

This financial data is unaudited.

The Fund files its semi-annual and annual reports with the Securities and Exchange Commission (“SEC”), as well as its complete schedule of portfolio holdings for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These reports are available on the SEC’s website at www.sec.gov. To obtain information on Form N-PORT or a semi-annual or annual report from the Fund, shareholders can call 1-888-777-0102.

For more information about the Fund, please call 1-888-777-0102 or consult the Fund’s website at www.franklintempleton.com/investments/options/closed-end-funds. Hard copies of the Fund’s complete audited financial statements are available free of charge upon request.

Data and commentary provided in this press release are for informational purposes only. Franklin Resources and its affiliates do not engage in selling shares of the Fund.

Category: Financials

Source: Franklin Resources, Inc.

Source: Legg Mason Closed End Funds

View source version on businesswire.com: https://www.businesswire.com/news/home/20240307434798/en/

Investor: Fund Investor Services 1-888-777-0102

Source: Franklin Resources, Inc. and Legg Mason Closed End Funds

FAQ

What were ClearBridge MLP and Midstream Fund Inc.'s net assets as of February 29, 2024?

ClearBridge MLP and Midstream Fund Inc.'s net assets were $609.6 million as of February 29, 2024.

What was the net asset value per share of ClearBridge MLP and Midstream Fund Inc. on February 29, 2024?

The net asset value per share of ClearBridge MLP and Midstream Fund Inc. was $45.86 on February 29, 2024.

What was the asset coverage ratio for senior indebtedness for ClearBridge MLP and Midstream Fund Inc. on February 29, 2024?

The asset coverage ratio for senior indebtedness for ClearBridge MLP and Midstream Fund Inc. was 434% on February 29, 2024.

What was the asset coverage ratio for total leverage for ClearBridge MLP and Midstream Fund Inc. on February 29, 2024?

The asset coverage ratio for total leverage for ClearBridge MLP and Midstream Fund Inc. was 337% on February 29, 2024.

What percentage of ClearBridge MLP and Midstream Fund Inc.'s total investments did the top ten equity holdings account for?

The top ten equity holdings accounted for 74.4% of ClearBridge MLP and Midstream Fund Inc.'s total investments.