ClearBridge Energy Midstream Opportunity Fund Inc. Announces Unaudited Balance Sheet Information as of December 31, 2024

Rhea-AI Summary

ClearBridge Energy Midstream Opportunity Fund (NYSE: EMO) has released its unaudited financial statement as of December 31, 2024. The Fund reported net assets of $930.5 million and a net asset value per share of $51.15. The Fund's total assets stand at $1,312.0 million, with investments valued at $1,282.2 million.

The Fund maintains strong asset coverage ratios, with 550% coverage for senior indebtedness and 391% for total leverage under the Investment Company Act of 1940. Total leverage amounts to $319.9 million, including senior notes, loans, and mandatory redeemable preferred shares.

The Fund's portfolio is concentrated in major energy infrastructure companies, with its top ten equity holdings representing 74.3% of total equity investments. The largest positions include Energy Transfer LP (12.4%), Targa Resources Corp. (10.3%), and ONEOK Inc. (9.5%).

Positive

• Strong asset coverage ratio of 550% for senior indebtedness
• Substantial net assets of $930.5 million
• Well-diversified portfolio among top energy infrastructure companies
• 74.3% of investments concentrated in stable, large-cap energy companies

Negative

• None.

Insights

Financial Analyst

The latest balance sheet reveals ClearBridge Energy Midstream Opportunity Fund maintains a robust financial position with $930.5 million in net assets and a NAV of $51.15 per share. The fund's leverage metrics are particularly noteworthy, with a strong 550% coverage ratio for senior indebtedness and 391% for total leverage, indicating conservative debt management. The portfolio demonstrates concentrated exposure to blue-chip midstream energy companies, with the top 10 holdings representing 74.3% of investments. Energy Transfer LP leads with a 12.4% allocation, followed by Targa Resources at 10.3% and ONEOK at 9.5%. The fund's total investments of $1.28 billion are well-supported by $28 million in cash reserves. The leverage structure, combining senior notes, loans and preferred shares, totals $319.9 million, reflecting a balanced approach to capital structure optimization. This financial snapshot indicates disciplined portfolio management and strong asset coverage ratios that exceed regulatory requirements.

Market Research Analyst

The fund's portfolio composition reveals strategic positioning in the midstream energy sector, with investments concentrated in industry leaders that control critical infrastructure assets. The high concentration in top-tier operators suggests a focus on stable cash flows and infrastructure assets essential to U.S. energy distribution. The fund's investment strategy appears well-aligned with the current market environment, where midstream companies benefit from long-term contracts and fee-based revenues. The substantial positions in Energy Transfer, Targa Resources and ONEOK indicate exposure to diverse midstream operations including natural gas, NGL processing and crude oil transportation. The relatively low cash position of 2.1% of total assets suggests high conviction in current holdings and efficient capital deployment. This portfolio structure positions the fund to potentially benefit from both energy infrastructure growth and income generation, while the strong asset coverage ratios provide a safety buffer against market volatility.

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 December 31, 2024.

As of December 31, 2024, the Fund’s net assets were $930.5 million, and its net asset value per share was $51.15. The Fund’s asset coverage ratio under the Investment Company Act of 1940 (the “1940 Act”) with respect to senior indebtedness was 550% and the Fund’s asset coverage ratio under the 1940 Act with respect to total leverage was 391%.

	As of December 31, 2024
	Amount (millions)			Per Share
Investments	$	1,282.2		$	70.49
Cash and Cash Equivalents		28.0			1.54
Other Assets		1.8			0.10
Total Assets	$	1,312.0		$	72.13
Senior Notes*	$	63.5		$	3.49
Loans Outstanding*		164.0			9.02
Mandatory Redeemable Preferred Shares*		92.4			5.08
Total Leverage	$	319.9		$	17.59
Deferred Tax Liability	$	47.8		$	2.63
Income Tax Payable		4.1			0.23
Other Liabilities		9.7			0.53
Total Liabilities	$	61.6		$	3.39
Net Assets	$	930.5		$	51.15
Outstanding Shares		18,190,226
* The Fund's asset coverage ratio under the 1940 Act with respect to senior indebtedness was 550%.
* The Fund's asset coverage ratio under the 1940 Act with respect to total leverage was 391%.
Top Ten Equity Holdings (as of December 31, 2024)**
	Market Value
Name	(millions)			% of Investments			***
Energy Transfer LP	$	159.3			12.4	%
Targa Resources Corp.	$	131.5			10.3	%
ONEOK Inc.	$	121.9			9.5	%
MPLX LP	$	104.1			8.1	%
Western Midstream Partners LP	$	89.3			7.0	%
Enterprise Products Partners LP	$	83.5			6.5	%
Williams Cos. Inc.	$	79.6			6.2	%
Kinder Morgan Inc.	$	74.7			5.8	%
Hess Midstream LP	$	55.6			4.3	%
Plains GP Holdings LP	$	54.0			4.2	%
	$	953.5			74.3	%
** 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/20250108853414/en/

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

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

FAQ

What is EMO's net asset value per share as of December 31, 2024?

EMO's net asset value per share was $51.15 as of December 31, 2024.

What is EMO's total asset value as of December 31, 2024?

EMO's total assets were $1,312.0 million as of December 31, 2024.

What is EMO's largest equity holding and its percentage?

Energy Transfer LP is EMO's largest holding, representing 12.4% of total equity investments.

What is EMO's asset coverage ratio for total leverage?

EMO's asset coverage ratio for total leverage was 391% under the Investment Company Act of 1940.

How much of EMO's portfolio is concentrated in its top 10 holdings?

EMO's top 10 equity holdings represent 74.3% of total equity investments.