ClearBridge MLP and Midstream Fund Inc. Announces Unaudited Balance Sheet Information as of December 31, 2023
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Insights
The recent disclosure by ClearBridge MLP and Midstream Fund Inc. regarding its financial position as of December 31, 2023, provides critical data for evaluating the fund's performance and stability. The reported net asset value (NAV) per share of $43.36 is a key indicator for investors, reflecting the value of their shares in the fund. The asset coverage ratios—418% for senior indebtedness and 324% for total leverage—exceed the 300% minimum requirement stipulated by the 1940 Act, indicating a strong coverage and lower risk of default. This information could influence investor confidence and potentially affect the fund's stock price.
Furthermore, the top ten equity holdings, comprising 74.4% of the fund's total investments, are concentrated in the energy sector. The performance of these holdings is closely tied to the volatile energy market, which can significantly impact the fund's returns. Investors should consider the implications of sector concentration risk in their investment decisions. The market value of these holdings and their percentage of the total investments provide transparency and help investors assess the diversification and risk profile of the fund.
Analyzing the fund's composition, particularly its top ten equity holdings in the energy sector, can offer insights into the broader midstream energy market's trends and performance. The fund's significant investments in entities like Energy Transfer LP and ONEOK Inc. suggest a strategic focus on infrastructure assets that are essential for the transportation, storage and processing of energy products. Given the current energy landscape and the transition to renewable sources, these companies could face both challenges and opportunities that may affect their valuation and, by extension, the fund's performance.
Investors and stakeholders should monitor the sector-specific developments, such as regulatory changes, shifts in commodity prices and changes in supply and demand dynamics, which could influence the performance of these holdings. The disclosed financial data provides a snapshot that can be used for benchmarking against other funds and the industry as a whole, aiding in the assessment of the fund's competitive position.
The asset coverage ratios reported by ClearBridge MLP and Midstream Fund Inc. are indicative of the fund's capital structure and financial leverage. High coverage ratios suggest that the fund maintains a conservative leverage strategy, which can be advantageous during economic downturns or periods of market volatility. This conservative approach may appeal to risk-averse investors, especially in the context of uncertain economic conditions.
Additionally, the focus on midstream energy assets, which are typically characterized by stable, fee-based cash flows, could provide insulation against cyclical fluctuations in the energy market. However, the fund's performance is still subject to macroeconomic factors such as interest rate changes, which can affect borrowing costs and energy demand. Stakeholders should consider the broader economic outlook when evaluating the fund's potential performance and the implications of its financial structure on future returns.
As of December 31, 2023, the Fund’s net assets were
| As of December 31, 2023 | |||||
| Amount (millions) | Per Share | ||||
| Investments | $ |
810.6 |
$ |
60.97 |
|
| Cash and Cash Equivalents |
|
28.8 |
|
2.17 |
|
| Other Assets |
|
1.2 |
|
0.09 |
|
| Total Assets | $ |
840.6 |
$ |
63.23 |
|
| 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 |
|
| Other Liabilities | $ |
7.3 |
$ |
0.55 |
|
| Total Liabilities | $ |
7.3 |
$ |
0.55 |
|
| Net Assets | $ |
576.4 |
$ |
43.36 |
|
| Outstanding Shares |
|
13,294,195 |
|||
| * The Fund's asset coverage ratio under the 1940 Act with respect to senior indebtedness was |
|||
| * The Fund's asset coverage ratio under the 1940 Act with respect to total leverage was |
| Top Ten Equity Holdings (as of December 31, 2023)** | ||||||
| Market Value | ||||||
| Name | (millions) | % of Investments | *** | |||
| Energy Transfer LP | $ |
104.3 |
12.9 |
% |
||
| ONEOK Inc. | $ |
81.1 |
10.0 |
% |
||
| MPLX LP | $ |
70.5 |
8.7 |
% |
||
| Enterprise Products Partners LP | $ |
65.3 |
8.1 |
% |
||
| Western Midstream Partners LP | $ |
62.3 |
7.7 |
% |
||
| Targa Resources Corp. | $ |
50.7 |
6.3 |
% |
||
| Williams Cos. Inc. | $ |
44.2 |
5.5 |
% |
||
| Plains All American Pipeline LP | $ |
43.2 |
5.3 |
% |
||
| Plains GP Holdings LP | $ |
43.0 |
5.3 |
% |
||
| Hess Midstream LP | $ |
37.7 |
4.6 |
% |
||
$ |
602.3 |
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 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/20240108966109/en/
Investor Contact: Fund Investor Services 1-888-777-0102
Source: Franklin Resources, Inc. and Legg Mason Closed End Funds
FAQ
What is the ticker symbol for ClearBridge MLP and Midstream Fund Inc.?
What is the net asset value per share of the Fund as of December 31, 2023?
Who advises ClearBridge MLP and Midstream Fund Inc.?
Where can shareholders obtain reports and portfolio holdings of the Fund?
What percentage of the Fund's net assets do the top ten equity holdings account for?
