ClearBridge Energy Midstream Opportunity Fund Inc. Announces Unaudited Balance Sheet Information as of March 31, 2025

Rhea-AI Summary

ClearBridge Energy Midstream Opportunity Fund Inc. (NYSE: EMO) has released its unaudited financial statement as of March 31, 2025. The Fund reported net assets of $1,006.3 million with a net asset value per share of $55.32. The Fund's asset coverage ratios under the Investment Company Act of 1940 were 634% for senior indebtedness and 437% for total leverage.

The Fund's total assets stood at $1,391.6 million, including investments worth $1,347.7 million, cash equivalents of $32.5 million, and other assets of $11.4 million. The Fund's top holdings include Energy Transfer LP (11.2%), Targa Resources Corp. (11.0%), and ONEOK Inc. (8.9%), with the top ten holdings representing 75.2% of total equity investments.

Positive

• Strong asset coverage ratios: 634% for senior indebtedness and 437% for total leverage
• Substantial net assets of $1,006.3 million
• Well-diversified portfolio among major midstream energy companies
• Healthy cash position of $32.5 million

Negative

• High portfolio concentration with top 10 holdings representing 75.2% of investments
• Significant leverage of $298.2 million

Insights

Financial Analyst

ClearBridge Energy Midstream Opportunity Fund's latest balance sheet reveals a $1,006.3 million net asset position with NAV of $55.32 per share, creating a significant 20% discount to the current market price of $44.29. This substantial gap between intrinsic value and market price could signal investor uncertainty about midstream energy or present a potential value opportunity.

The fund demonstrates strong financial health with robust coverage ratios - 634% for senior indebtedness and 437% for total leverage, both well above regulatory minimums. This conservative leverage approach provides substantial cushion against potential asset devaluations while still employing $298.2 million in strategic leverage to enhance potential returns.

Portfolio concentration deserves investor attention, with 75.2% of equity investments in just ten holdings. Top positions in Energy Transfer (11.2%), Targa Resources (11.0%), and ONEOK (8.9%) create significant exposure to these specific operators. While this concentration increases single-company risk, it also reflects a focused strategy on established infrastructure assets generating predictable cash flows.

The $74.3 million deferred tax liability warrants consideration as it effectively reduces NAV by $4.08 per share. Meanwhile, the $32.5 million cash position (2.3% of total assets) provides liquidity for potential opportunistic investments or distribution support if needed.

NEW YORK--(BUSINESS WIRE)-- ClearBridge Energy Midstream Opportunity Fund Inc. (NYSE: EMO) announced today the unaudited statement of assets and liabilities, the net asset value and asset coverage ratio of the Fund as of March 31, 2025.

As of March 31, 2025, the Fund’s net assets were $1,006.3 million, and its net asset value per share was $55.32. The Fund’s asset coverage ratio under the Investment Company Act of 1940 (the “1940 Act”) with respect to senior indebtedness was 634% and the Fund’s asset coverage ratio under the 1940 Act with respect to total leverage was 437%.

	As of March 31, 2025
	Amount (millions)			Per Share
Investments	$	1,347.7		$	74.09
Cash and Cash Equivalents		32.5			1.79
Other Assets		11.4			0.63
Total Assets	$	1,391.6		$	76.51
Senior Notes*	$	41.8		$	2.30
Loans Outstanding*		164.0			9.02
Mandatory Redeemable Preferred Shares*		92.4			5.08
Total Leverage	$	298.2		$	16.40
Deferred Tax Liability	$	74.3		$	4.08
Distributions Payable		6.5			0.36
Other Liabilities		6.3			0.35
Total Liabilities	$	87.1		$	4.79
Net Assets	$	1,006.3		$	55.32
Outstanding Shares		18,190,226
* The Fund's asset coverage ratio under the 1940 Act with respect to senior indebtedness was 634%.
* The Fund's asset coverage ratio under the 1940 Act with respect to total leverage was 437%.
Top Ten Equity Holdings (as of March 31, 2025)**
	Market Value
Name	(millions)			% of Investments			***
Energy Transfer LP	$	151.2			11.2	%
Targa Resources Corp.	$	147.7			11.0	%
ONEOK Inc.	$	120.4			8.9	%
MPLX LP	$	116.4			8.6	%
Western Midstream Partners LP	$	95.2			7.1	%
Enterprise Products Partners LP	$	90.9			6.7	%
Williams Cos. Inc.	$	87.9			6.5	%
Kinder Morgan Inc.	$	77.7			5.8	%
Hess Midstream LP	$	63.6			4.7	%
Plains All American Pipeline LP	$	62.7			4.7	%
	$	1,013.7			75.2	%
** Subject to change at any time
*** Percent of Total Equity Investments

ClearBridge Energy Midstream Opportunity Fund Inc. is a non-diversified, closed-end management investment company, which is advised by Franklin Templeton Fund Adviser, LLC (“FTFA”) 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/20250407039348/en/

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

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

FAQ

What is the current net asset value (NAV) per share of EMO as of March 31, 2025?

EMO's net asset value per share is $55.32 as of March 31, 2025.

What are EMO's top 3 holdings and their portfolio weightings?

EMO's top holdings are Energy Transfer LP (11.2%), Targa Resources Corp. (11.0%), and ONEOK Inc. (8.9%).

How much total leverage does EMO currently have?

EMO's total leverage is $298.2 million, consisting of Senior Notes, Loans Outstanding, and Mandatory Redeemable Preferred Shares.

What is EMO's asset coverage ratio for senior indebtedness?

EMO's asset coverage ratio under the 1940 Act for senior indebtedness is 634%.

What percentage of EMO's portfolio is concentrated in its top 10 holdings?

EMO's top 10 holdings represent 75.2% of total equity investments.