ClearBridge MLP and Midstream Total Return Fund Inc. Announces Unaudited Balance Sheet Information as of April 30, 2024

Rhea-AI Summary

ClearBridge MLP and Midstream Total Return Fund Inc. (NYSE: CTR) reported unaudited balance sheet information as of April 30, 2024. The Fund's net assets were $303.4 million with a net asset value per share of $44.06. The asset coverage ratio under the 1940 Act for senior indebtedness was 1,199% and for total leverage was 866%. The top ten equity holdings represented 78.5% of total equity investments.

Positive

• The Fund's net assets were reported at $303.4 million, indicating financial strength and stability.

• The net asset value per share at $44.06 suggests a healthy value per share for investors.

• The asset coverage ratio under the Investment Company Act of 1940 for senior indebtedness was 1,199%, indicating a strong position to cover obligations.

Negative

• The total leverage ratio under the 1940 Act was reported at 866%, which may raise concerns about the level of leverage being utilized.

• The top ten equity holdings representing 78.5% of total equity investments may indicate lack of diversification, potentially exposing the Fund to concentration risks.

Insights

Financial Analyst

The net asset value (NAV) per share is a critical metric for closed-end funds as it reflects the value of all the assets minus the liabilities divided by the number of shares outstanding. In this case, a NAV per share of $44.06 indicates the intrinsic value of each share as of April 30, 2024. This figure is important for investors as it provides insight into the fund's performance in relation to the market price of its shares. The high asset coverage ratios of 1,199% with respect to senior indebtedness and 866% with respect to total leverage far exceed the minimum 300% coverage required by the 1940 Act, suggesting a lower risk of default and potentially more stability in dividend payments. However, investors should be cautious as a high coverage ratio could also indicate that the fund is not utilizing leverage as effectively as it could to enhance returns.

Market Research Analyst

An investor looking at the top ten equity holdings, which constitute 78.5% of the fund's total investments, would notice a heavy concentration in the energy sector, specifically in midstream operations. This concentrated exposure can be advantageous if the energy sector performs well but poses a risk if the sector faces a downturn. The disclosed holdings, such as Energy Transfer LP and Targa Resources Corp., give a snapshot of the fund's investment strategy, which appears to focus on high-yielding, potentially more volatile MLPs (Master Limited Partnerships). This can be attractive to income-seeking investors but also warrants a closer examination of sector-specific risks, including commodity price fluctuations and regulatory changes.

NEW YORK--(BUSINESS WIRE)-- ClearBridge MLP and Midstream Total Return Fund Inc. (NYSE: CTR) announced today the unaudited statement of assets and liabilities, the net asset value and asset coverage ratio of the Fund as of April 30, 2024.

As of April 30, 2024, the Fund’s net assets were $303.4 million, and its net asset value per share was $44.06. The Fund’s asset coverage ratio under the Investment Company Act of 1940 (the “1940 Act”) with respect to senior indebtedness was 1,199% and the Fund’s asset coverage ratio under the 1940 Act with respect to total leverage was 866%.

	As of April 30, 2024
	Amount (millions)			Per Share
Investments	$	320.0		$	46.47
Cash and Cash Equivalents		21.4			3.11
Other Assets		9.5			1.38
Total Assets	$	350.9		$	50.96
Senior Notes*	$	15.6		$	2.26
Loans Outstanding*		13.0			1.89
Mandatory Redeemable Preferred Shares*		11.0			1.60
Total Leverage	$	39.6		$	5.75
Income Tax Payable	$	3.6		$	0.52
Deferred Tax Liability		1.5			0.22
Other Liabilities		2.8			0.41
Total Liabilities	$	7.9		$	1.15
Net Assets	$	303.4		$	44.06
Outstanding Shares		6,886,833

* The Fund's asset coverage ratio under the 1940 Act with respect to senior indebtedness was 1,199%.
* The Fund's asset coverage ratio under the 1940 Act with respect to total leverage was 866%.

Top Ten Equity Holdings (as of April 30, 2024)**
Name	Market Value (millions)			% of Investments		***
Energy Transfer LP	$	47.5		14.8	%
Targa Resources Corp.	$	37.1		11.6	%
ONEOK Inc.	$	36.9		11.5	%
Enterprise Products Partners LP	$	27.1		8.5	%
Williams Cos. Inc.	$	23.9		7.5	%
Enbridge Inc.	$	21.2		6.6	%
Western Midstream Partners LP	$	16.6		5.2	%
MPLX LP	$	16.2		5.1	%
Plains All American Pipeline LP	$	14.4		4.5	%
Plains GP Holdings LP	$	10.2		3.2	%
	$	251.1		78.5	%
** Subject to change at any time
*** Percent of Total Equity Investments

ClearBridge MLP and Midstream Total Return 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/20240507116760/en/

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

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

FAQ

What were ClearBridge MLP and Midstream Total Return Fund Inc.'s net assets as of April 30, 2024?

As of April 30, 2024, the Fund's net assets were $303.4 million.

What was the net asset value per share of ClearBridge MLP and Midstream Total Return Fund Inc. on April 30, 2024?

The net asset value per share was $44.06 on April 30, 2024.

What was the asset coverage ratio under the 1940 Act for senior indebtedness as of April 30, 2024?

The asset coverage ratio for senior indebtedness was 1,199% on April 30, 2024.

What were the top ten equity holdings of ClearBridge MLP and Midstream Total Return Fund Inc. as of April 30, 2024?

The top ten equity holdings included Energy Transfer LP, Targa Resources Corp., ONEOK Inc., Enterprise Products Partners LP, Williams Cos. Inc., Enbridge Inc., Western Midstream Partners LP, MPLX LP, Plains All American Pipeline LP, and Plains GP Holdings LP, totaling 78.5% of total equity investments.

What is the ticker symbol for ClearBridge MLP and Midstream Total Return Fund Inc.?

The ticker symbol for ClearBridge MLP and Midstream Total Return Fund Inc. is CTR.