Kayne Anderson Energy Infrastructure Fund Provides Unaudited Balance Sheet Information and Announces Its Net Asset Value and Asset Coverage Ratios at December 31, 2023

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) provided unaudited statement of assets and liabilities as of December 31, 2023. Net assets were $1.8 billion, net asset value per share was $10.44, asset coverage ratio for senior securities was 652%, and for total leverage was 452%. Long-term investments included Enterprise Products Partners L.P., Energy Transfer LP, and others.

Insights

Financial Analyst

The reported net asset value (NAV) per share of $10.44 by Kayne Anderson Energy Infrastructure Fund, Inc. (KYN) is a critical indicator for investors, as it reflects the value of their investments in the fund. The disclosed asset coverage ratios, significantly above the 300% requirement for senior securities and 200% for total leverage under the 1940 Act, demonstrate a robust balance sheet. This high coverage suggests a conservative leverage strategy, potentially reducing the risk profile of the fund.

Moreover, the composition of the fund's long-term investments indicates a heavy concentration in Midstream Energy Companies. While this could expose the fund to sector-specific risks, such as volatile commodity prices or regulatory changes, it also suggests a potential for high yields, given the typically stable cash flows generated by midstream operations. The diversification into Renewable Infrastructure and Utilities, though minimal, could be a strategic move to capture growth in the evolving energy sector.

Market Research Analyst

Investments in top midstream energy companies like Enterprise Products Partners L.P. and Energy Transfer LP, which account for a significant portion of KYN's portfolio, reflect a focus on firms with substantial infrastructure and potentially stable revenue streams. The midstream sector, being less sensitive to oil and gas prices compared to upstream companies, offers a degree of insulation against market volatility. However, the transition towards renewable energy could impact the long-term demand for midstream infrastructure, posing a risk to the fund's performance.

With an emphasis on providing high after-tax total returns and cash distributions, KYN's strategy aligns with investors seeking income through dividends. The fund's performance and ability to maintain its distribution levels will be closely watched, as they are key factors influencing investor sentiment and the stock's market performance.

Energy Sector Analyst

The energy infrastructure sector is undergoing a transformation with increased investment in renewable energy sources. KYN's modest allocation to Renewable Infrastructure Companies could signal a strategic, albeit cautious, approach to this transition. The fund's future performance will likely depend on how well it balances traditional energy investments with emerging opportunities in renewables.

Additionally, the fund's focus on non-diversified investments in energy infrastructure companies requires careful monitoring of sector-specific developments. Factors such as energy policy changes, shifts in consumer demand and advancements in technology could significantly impact the fund's portfolio companies and in turn, KYN's valuation and appeal to investors.

HOUSTON, Jan. 02, 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 December 31, 2023.

As of December 31, 2023, the Company’s net assets were $1.8 billion, and its net asset value per share was $10.44. As of December 31, 2023, the Company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 652% and the Company’s asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 452%.

STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2023 // (UNAUDITED)
		(in millions)
Investments		$	2,385.6
Cash and cash equivalents			1.8
Accrued income			1.7
Current tax asset, net			4.2
Other assets			0.7
Total assets			2,394.0
Credit facility			11.0
Term loan			50.0
Notes			286.7
Unamortized notes issuance costs			(1.4	)
Preferred stock			153.1
Unamortized preferred stock issuance costs			(1.5	)
Total leverage			497.9
Other liabilities			5.8
Deferred tax liability, net			125.5
Total liabilities			131.3
Net assets		$	1,764.8

The Company had 169,126,038 common shares outstanding as of December 31, 2023.

Long-term investments were comprised of Midstream Energy Company (88%), Renewable Infrastructure Company (5%), Utility Company (4%) and Other Energy (3%).

			Amount (in millions)*			% Long Term Investments
1.	Enterprise Products Partners L.P. (Midstream Energy Company)		$260.0			10.9	%
2.	Energy Transfer LP (Midstream Energy Company)			239.3		10.0	%
3.	MPLX LP (Midstream Energy Company)			226.2		9.5	%
4.	The Williams Companies, Inc. (Midstream Energy Company)			179.8		7.5	%
5.	Targa Resources Corp. (Midstream Energy Company)			169.9		7.1	%
6.	ONEOK, Inc. (Midstream Energy Company)			165.3		6.9	%
7.	Cheniere Energy, Inc. (Midstream Energy Company)			160.8		6.7	%
8.	Plains All American Pipeline, L.P.** (Midstream Energy Company)			153.3		6.4	%
9.	Western Midstream Partners, LP (Midstream Energy Company)			95.7		4.0	%
10.	Kinder Morgan, Inc. (Midstream Energy Company)			87.8		3.7	%

*	Includes ownership of common and preferred units.
**	Includes ownership of Plains All American Pipeline, L.P. (“PAA”), Plains AAP, L.P. (“PAGP-AAP”) and Plains GP Holdings, L.P. (“PAGP”).

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@kaynecapital.com.

FAQ

What is Kayne Anderson Energy Infrastructure Fund, Inc.'s ticker symbol?

The ticker symbol for Kayne Anderson Energy Infrastructure Fund, Inc. is KYN.

What were Kayne Anderson Energy Infrastructure Fund, Inc.'s net assets as of December 31, 2023?

Kayne Anderson Energy Infrastructure Fund, Inc.'s net assets were $1.8 billion as of December 31, 2023.

What is the net asset value per share of Kayne Anderson Energy Infrastructure Fund, Inc. as of December 31, 2023?

The net asset value per share of Kayne Anderson Energy Infrastructure Fund, Inc. was $10.44 as of December 31, 2023.

What were the asset coverage ratios for Kayne Anderson Energy Infrastructure Fund, Inc. as of December 31, 2023?

The asset coverage ratio for senior securities was 652%, and for total leverage was 452% as of December 31, 2023.

What were the long-term investments of Kayne Anderson Energy Infrastructure Fund, Inc. as of December 31, 2023?

Long-term investments included Enterprise Products Partners L.P., Energy Transfer LP, and others as of December 31, 2023.