Kayne Anderson Energy Infrastructure Fund Provides Unaudited Balance Sheet Information and Announces Its Net Asset Value and Asset Coverage Ratios at May 31, 2024

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) announced its unaudited balance sheet data as of May 31, 2024. The company reported net assets of $2.0 billion with a net asset value (NAV) per share of $11.61. Its asset coverage ratio was 614% for senior securities and 448% for total leverage. The fund's investments totaled $2,699.8 million, mainly in midstream energy companies. Long-term investments comprised 92% in Midstream Energy Companies, 5% in Other Energy, and 3% in Utility Companies. Major holdings included Energy Transfer LP and Enterprise Products Partners L.P. The company aims to offer high after-tax returns with cash distributions, investing at least 80% in Energy Infrastructure Companies.

Positive

• Net assets of $2.0 billion as of May 31, 2024.
• NAV per share at $11.61.
• Asset coverage ratio of 614% for senior securities.
• Total investment portfolio valued at $2,699.8 million.
• Predominant investment in stable midstream energy companies (92%).
• Strong focus on high after-tax total return and cash distributions.

Negative

• Deferred tax liability of $198.5 million.
• Total liabilities amounting to $215.3 million.
• Significant leverage with total debt and preferred stock at $561.3 million.
• diversification with 92% investments in a single sector (Midstream Energy).

Insights

Financial Analyst

Kayne Anderson Energy Infrastructure Fund has reported its $2.0 billion net assets and a net asset value (NAV) per share of $11.61 as of May 31, 2024. The asset coverage ratios are worth noting: 614% for senior securities representing indebtedness and 448% for total leverage. These ratios indicate a strong financial position and sufficient coverage of its obligations.

The fund's investments are heavily concentrated in Midstream Energy Companies (92%), which are involved in the transportation, storage and wholesale marketing of oil and gas. The top holdings include well-known entities like Energy Transfer LP and Enterprise Products Partners L.P., which suggests a stable income flow given their established market positions.

Long-term investments are diversified across several large-cap companies, minimizing the risk associated with investing in a single entity. The fund's strategic focus on midstream energy companies aligns with its objective of providing a high after-tax total return and cash distributions to stockholders.

From a retail investor's perspective, this data offers reassurance about the fund's ability to generate stable returns. However, potential investors should be aware of the sector-specific risks associated with energy infrastructure investments, primarily related to fluctuating commodity prices and regulatory changes.

Market Research Analyst

The portfolio composition of Kayne Anderson Energy Infrastructure Fund emphasizes the fund's specialized focus on energy infrastructure. Midstream energy companies form the backbone of this portfolio, which is vital for understanding its role in the broader market. The fund's investment in companies like Energy Transfer LP and Enterprise Products Partners L.P. underscores a strategy focused on income generation through stable and often regulated revenue streams from transportation and storage of energy products.

Given the current market environment, where energy prices and demand for energy infrastructure services are variable, holders of this fund stand to gain from relatively stable cash flows. It's also important to note the sector's regulatory framework, which can significantly impact these companies. Investors need to consider the potential for regulatory changes when evaluating this fund's long-term prospects.

The fund’s asset coverage ratios suggest a robust financial health, surpassing the minimum requirements significantly. This is a positive indicator, reflecting the fund's capacity to manage its leverage effectively, even during market downturns.

HOUSTON, June 04, 2024 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) today provided a summary unaudited statement of assets and liabilities and announced its net asset value and asset coverage ratios under the Investment Company Act of 1940 (the “1940 Act”) as of May 31, 2024.

As of May 31, 2024, the Company’s net assets were $2.0 billion, and its net asset value per share was $11.61. As of May 31, 2024, the Company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 614% and the Company’s asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 448%.

STATEMENT OF ASSETS AND LIABILITIES MAY 31, 2024   // (UNAUDITED)
		(in millions)
Investments		$	2,699.8
Cash and cash equivalents			34.5
Accrued income			2.2
Current tax asset, net			2.6
Other assets			1.3
Total assets			2,740.4
Term loan			25.0
Notes			386.7
Unamortized notes issuance costs			(2.2	)
Preferred stock			153.1
Unamortized preferred stock issuance costs			(1.3	)
Total leverage			561.3
Other liabilities			16.8
Deferred tax liability, net			198.5
Total liabilities			215.3
Net assets		$	1,963.8
The Company had 169,126,038 common shares outstanding as of May 31, 2024.

Long-term investments were comprised of Midstream Energy Companies (92%), Other Energy (5%) and Utility Companies (3%).  

			Amount (in millions)*			% Long Term Investments
1.	Energy Transfer LP (Midstream Energy Company)		$267.3			9.9%
2.	Enterprise Products Partners L.P. (Midstream Energy Company)			255.2		9.5%
3.	MPLX LP (Midstream Energy Company)			250.6		9.3%
4.	The Williams Companies, Inc. (Midstream Energy Company)			249.4		9.2%
5.	Targa Resources Corp. (Midstream Energy Company)			231.1		8.6%
6.	ONEOK, Inc. (Midstream Energy Company)			202.6		7.5%
7.	Kinder Morgan, Inc. (Midstream Energy Company)			147.1		5.4%
8.	Cheniere Energy, Inc. (Midstream Energy Company)			139.4		5.2%
9.	Plains All American Pipeline, L.P. (Midstream Energy Company)			137.2		5.1%
10.	Western Midstream Partners, LP (Midstream Energy Company)			133.5		4.9%
*	Includes ownership of common and preferred units.

Portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation or solicitation for any person to buy, sell or hold any particular security. You can obtain a complete listing of holdings by viewing the Company’s most recent quarterly or annual report.

Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended, whose common stock is traded on the NYSE. The company's investment objective is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders. KYN intends to achieve this objective by investing at least 80% of its total assets in securities of Energy Infrastructure Companies. See Glossary of Key Terms in the Company’s most recent quarterly report for a description of these investment categories and the meaning of capitalized terms.

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of any securities in any jurisdiction in which such offer or sale is not permitted. Nothing contained in this press release is intended to recommend any investment policy or investment strategy or consider any investor’s specific objectives or circumstances. Before investing, please consult with your investment, tax, or legal adviser regarding your individual circumstances.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This communication contains statements reflecting assumptions, expectations, projections, intentions, or beliefs about future events. These and other statements not relating strictly to historical or current facts constitute forward-looking statements as defined under the U.S. federal securities laws. Forward-looking statements involve a variety of risks and uncertainties. These risks include but are not limited to changes in economic and political conditions; regulatory and legal changes; energy industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in detail in the Company’s filings with the SEC, available at www.kaynefunds.com or www.sec.gov. Actual events could differ materially from these statements or our present expectations or projections. You should not place undue reliance on these forward-looking statements, which speak only as of the date they are made. Kayne Anderson undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Company’s investment objectives will be attained.

Contact investor relations at 877-657-3863 or cef@kayneanderson.com.

FAQ

What was Kayne Anderson Energy Infrastructure Fund's net asset value on May 31, 2024?

The net asset value (NAV) was $11.61 per share as of May 31, 2024.

What is the asset coverage ratio for KYN's senior securities as of May 31, 2024?

The asset coverage ratio for senior securities was 614% as of May 31, 2024.

How much were KYN's net assets as of May 31, 2024?

Kayne Anderson Energy Infrastructure Fund's net assets were $2.0 billion as of May 31, 2024.

What are the major holdings in KYN's investment portfolio?

Major holdings include Energy Transfer LP, Enterprise Products Partners L.P., and MPLX LP.

What is the total value of KYN's investment portfolio?

The total value of Kayne Anderson Energy Infrastructure Fund's investment portfolio was $2,699.8 million as of May 31, 2024.

What percentage of KYN's portfolio is invested in Midstream Energy Companies?

KYN's portfolio is 92% invested in Midstream Energy Companies.

What liabilities does KYN have as of May 31, 2024?

KYN has total liabilities of $215.3 million, including a deferred tax liability of $198.5 million.

What is KYN's investment objective?

KYN's investment objective is to provide a high after-tax total return with an emphasis on cash distributions to stockholders.