ClearBridge MLP and Midstream Total Return Fund Inc. Announces Unaudited Balance Sheet Information as of May 31, 2024

Rhea-AI Summary

ClearBridge MLP and Midstream Total Return Fund (NYSE: CTR) released its unaudited financial data for May 31, 2024. The Fund reported net assets of $306.0 million, with a net asset value (NAV) per share of $44.43. Assets included $308 million in investments and $31.4 million in cash and equivalents. The Fund's asset coverage ratio was 2,132% for senior indebtedness and 1,250% for total leverage. Top holdings were Targa Resources Corp. ($38.5 million, 12.5%) and ONEOK Inc. ($37.7 million, 12.3%). Other assets and liabilities were outlined, affecting the overall financial standing.

Positive

• Net assets of $306.0 million as of May 31, 2024.
• Net asset value per share of $44.43.
• Strong asset coverage ratio of 2,132% for senior indebtedness.
• Top holdings include well-performing companies like Targa Resources Corp. and ONEOK Inc.
• Total assets of $340.3 million, including $31.4 million in cash and equivalents.

Negative

• Total leverage of $26.6 million.
• Deferred tax liability of $2.1 million.
• Income tax payable amounting to $4.6 million.
• Other liabilities totaling $1.0 million.

Insights

Financial Analyst

The unaudited balance sheet information provided by the ClearBridge MLP and Midstream Total Return Fund Inc. offers several insights into the financial health and stability of the fund. The net asset value (NAV) of $44.43 per share and total net assets of $306.0 million indicate that the fund maintains robust asset management. Additionally, the asset coverage ratios—2,132% for senior indebtedness and 1,250% for total leverage—are exceptionally high, suggesting that the fund has a strong buffer to cover its debt obligations, reflecting prudent financial management.

From a retail investor's perspective, these figures suggest stability and low risk of insolvency, which can be particularly reassuring in volatile markets. The significant holdings in companies like Targa Resources Corp. and ONEOK Inc. reinforce the fund's focus on strategic investments within the midstream energy sector, which can offer steady cash flows and dividends. However, investors should note that the midstream energy sector can be susceptible to fluctuations in energy prices, which might affect the overall performance of the fund.

Market Research Analyst

The portfolio concentration in top holdings, where the top ten positions account for approximately 77.9% of total equity investments, indicates a focused investment strategy. This can be both a strength and a weakness. On one hand, it implies conviction and potentially higher returns from well-researched investments. On the other hand, it presents a higher risk if those specific sectors or companies face downturns.

Midstream MLPs like those in the fund typically generate income from transporting and storing energy commodities, making them less sensitive to commodity price swings compared to upstream and downstream segments. However, regulatory changes and shifts in energy policies can impact these investments.

Retail investors should consider these factors and evaluate their risk tolerance and investment horizon when analyzing the potential impact on their portfolios.

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 May 31, 2024.

As of May 31, 2024, the Fund’s net assets were $306.0 million, and its net asset value per share was $44.43. The Fund’s asset coverage ratio under the Investment Company Act of 1940 (the “1940 Act”) with respect to senior indebtedness was 2,132% and the Fund’s asset coverage ratio under the 1940 Act with respect to total leverage was 1,250%.

	As of May 31, 2024
	Amount (millions)				Per Share
Investments	$	308.0			$	44.72
Cash and Cash Equivalents		31.4				4.56
Other Assets		0.9				0.13
Total Assets	$	340.3			$	49.41
Senior Notes*	$	15.6			$	2.26
Mandatory Redeemable Preferred Shares*		11.0				1.60
Total Leverage	$	26.6			$	3.86
Income Tax Payable	$	4.6			$	0.67
Deferred Tax Liability		2.1				0.30
Other Liabilities		1.0				0.15
Total Liabilities	$	7.7			$	1.12
Net Assets	$	306.0			$	44.43
Outstanding Shares		6,886,833
* The Fund's asset coverage ratio under the 1940 Act with respect to senior indebtedness was 2,132%.
* The Fund's asset coverage ratio under the 1940 Act with respect to total leverage was 1,250%.
Top Ten Equity Holdings (as of May 31, 2024)**
	Market Value
Name	(millions)				% of Investments ***
Targa Resources Corp.	$	38.5				12.5	%
ONEOK Inc.	$	37.7				12.3	%
Energy Transfer LP	$	35.8				11.6	%
Enterprise Products Partners LP	$	27.5				8.9	%
Williams Cos. Inc.	$	25.9				8.4	%
Enbridge Inc.	$	21.8				7.1	%
Western Midstream Partners LP	$	16.4				5.3	%
MPLX LP	$	15.7				5.1	%
Plains All American Pipeline LP	$	10.6				3.4	%
Plains GP Holdings LP	$	10.1				3.3	%
	$	240.0				77.9	%
** 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/20240607040160/en/

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

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

FAQ

What are the net assets of ClearBridge MLP and Midstream Total Return Fund as of May 31, 2024?

The net assets were $306.0 million.

What is the net asset value (NAV) per share of CTR as of May 31, 2024?

The NAV per share was $44.43.

What is the asset coverage ratio for ClearBridge MLP Fund's senior indebtedness?

The asset coverage ratio for senior indebtedness was 2,132%.

Which companies are the top holdings of ClearBridge MLP Fund as of May 31, 2024?

The top holdings include Targa Resources Corp. ($38.5 million, 12.5%) and ONEOK Inc. ($37.7 million, 12.3%).

How much cash and cash equivalents did CTR hold as of May 31, 2024?

The Fund held $31.4 million in cash and cash equivalents.