ClearBridge Energy Midstream Opportunity Fund Inc. Announces Unaudited Balance Sheet Information as of June 30, 2024
ClearBridge Energy Midstream Opportunity Fund (NYSE: EMO) has released its unaudited financial details as of June 30, 2024. The Fund's net assets stand at $292.0 million with a net asset value per share of $45.66. The asset coverage ratio under the Investment Company Act of 1940 is 496% for senior indebtedness and 341% for total leverage. The Fund's total assets amount to $422.3 million, with investments worth $412.6 million. Significant holdings include Energy Transfer LP and Targa Resources Corp, comprising 11.9% and 8.8% of the investments, respectively. A recent tender offer led to the repurchase of 6,393,645 shares, half of the Fund's outstanding shares. Franklin Templeton Fund Adviser, advises the Fund, and ClearBridge Investments, serves as sub-adviser.
- Net assets of $292.0 million.
- Net asset value per share at $45.66.
- High asset coverage ratios: 496% (senior indebtedness) and 341% (total leverage).
- Total assets of $422.3 million.
- Significant holdings in key energy sector companies.
- Successful tender offer repurchasing 50% of shares.
- Total leverage of $121.2 million.
Insights
The ClearBridge Energy Midstream Opportunity Fund Inc.'s recently released unaudited balance sheet information reveals several noteworthy elements that require closer examination. The net asset value (NAV) per share stands at
For retail investors, understanding these ratios is vital. The asset coverage ratio measures a fund's ability to cover its debt with its assets, which in this case points to prudent leverage management. Simply put, the higher these ratios, the safer the investment from a financial stability perspective.
Furthermore, the recent tender offer that led to the repurchase of 50% of the Fund's outstanding shares is significant. This move may indicate the management's confidence in the Fund's intrinsic value and could be seen as a strategy to enhance shareholder value by reducing the number of shares outstanding, potentially increasing the NAV per share. However, investors should also consider the impact of such buybacks on the Fund's liquidity and future growth potential.
A comprehensive look at the top ten equity holdings of ClearBridge Energy Midstream Opportunity Fund provides insight into its investment strategy and sector focus. The majority of the investments are in the midstream energy sector, with companies like Energy Transfer LP, Targa Resources Corp. and Western Midstream Partners LP comprising significant portions of the portfolio. This indicates a strong tilt towards infrastructure assets that typically benefit from stable cash flows and less sensitivity to commodity price volatility compared to upstream operations.
For retail investors, it is important to understand that midstream assets, such as pipelines and storage facilities, offer relatively predictable revenue streams through long-term contracts. This stability can be attractive, especially in uncertain economic climates. However, concentration in a single sector also poses risks, particularly if the energy market faces regulatory changes or economic downturns.
Additionally, with
As of June 30, 2024, the Fund’s net assets were
| As of June 30, 2024 | |||||||
| Amount (millions) | Per Share | ||||||
| Investments | $ |
412.6 |
$ |
64.54 |
|
||
| Cash and Cash Equivalents |
|
6.1 |
|
0.95 |
|
||
| Other Assets |
|
3.6 |
|
0.56 |
|
||
| Total Assets | $ |
422.3 |
$ |
66.05 |
|
||
| Senior Notes* | $ |
21.3 |
$ |
3.33 |
|
||
| Loans Outstanding* |
|
62.0 |
|
9.70 |
|
||
| Mandatory Redeemable Preferred Shares* |
|
37.9 |
|
5.93 |
|
||
| Total Leverage | $ |
121.2 |
$ |
18.96 |
|
||
| Deferred Tax Liability | $ |
4.4 |
$ |
0.69 |
|
||
| Other Liabilities |
|
4.7 |
|
0.74 |
|
||
| Total Liabilities | $ |
9.1 |
$ |
1.43 |
|
||
| Net Assets | $ |
292.0 |
$ |
45.66 |
|
||
| Outstanding Shares |
|
6,393,646 |
|||||
| * 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 June 30, 2024)** | |||||||
| Market Value | |||||||
| Name | (millions) | % of Investments | *** | ||||
| Energy Transfer LP | $ |
49.1 |
|
11.9 |
% |
||
| Targa Resources Corp. | $ |
36.4 |
|
8.8 |
% |
||
| Western Midstream Partners LP | $ |
33.2 |
|
8.1 |
% |
||
| ONEOK Inc. | $ |
32.9 |
|
8.0 |
% |
||
| MPLX LP | $ |
32.0 |
|
7.8 |
% |
||
| Enterprise Products Partners LP | $ |
27.3 |
|
6.6 |
% |
||
| Williams Cos. Inc. | $ |
22.2 |
|
5.4 |
% |
||
| Kinder Morgan Inc. | $ |
20.6 |
|
5.0 |
% |
||
| Plains All American Pipeline LP | $ |
19.4 |
|
4.7 |
% |
||
| Plains GP Holdings LP | $ |
19.3 |
|
4.7 |
% |
||
$ |
292.4 |
|
71.0 |
% |
|||
| ** Subject to change at any time | |||||||
| *** Percent of Total Equity Investments | |||||||
The Fund conducted a tender offer that expired on June 20, 2024. The tender offer resulted in the Fund repurchasing 6,393,645 shares, representing
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”) (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/20240708037016/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 Energy Midstream Opportunity Fund as of June 30, 2024?
What is the net asset value per share for EMO as of June 30, 2024?
What is the asset coverage ratio for EMO with respect to senior indebtedness?
What is the total leverage of EMO as of June 30, 2024?
Which companies are among the top holdings of EMO?
What was the outcome of the recent tender offer by EMO?
