Kayne Anderson Energy Infrastructure Fund Provides Unaudited Balance Sheet Information and Announces Its Net Asset Value and Asset Coverage Ratios at September 30, 2024

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) released its unaudited balance sheet information and asset coverage ratios as of September 30, 2024. Key highlights include:

• Net assets: $2.1 billion
• Net asset value per share: $12.37
• Asset coverage ratio for senior securities (indebtedness): 632%
• Asset coverage ratio for total leverage: 456%

The fund's portfolio primarily consists of Midstream Energy Companies (94%), with smaller allocations to Utility Companies (5%) and Other Energy (1%). Top holdings include The Williams Companies, MPLX LP, and Energy Transfer LP, each representing 9.3% of long-term investments.

Positive

• Strong asset coverage ratios: 632% for indebtedness and 456% for total leverage
• Substantial net assets of $2.1 billion
• Well-diversified portfolio with 94% in Midstream Energy Companies

Negative

• None.

Insights

Financial Analyst

This report provides key financial information for Kayne Anderson Energy Infrastructure Fund (KYN). The fund's net assets of $2.1 billion and NAV of $12.37 per share indicate a stable financial position. The high asset coverage ratios (632% for debt and 456% for total leverage) suggest conservative use of leverage, which is positive for risk management.

The fund's portfolio is heavily concentrated in midstream energy companies (94%), with top holdings including major players like Williams, MPLX and Energy Transfer. This concentration provides focused exposure to the energy infrastructure sector but also increases sector-specific risks.

The total leverage of $583.4 million against $2.98 billion in total assets shows a moderate leverage level. The deferred tax liability of $247.5 million is noteworthy and could impact future distributions or NAV if realized.

Overall, KYN appears to be in a solid financial position, offering investors targeted exposure to energy infrastructure with a focus on income generation. However, investors should be aware of the sector concentration risks and potential tax implications.

HOUSTON, Oct. 01, 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 September 30, 2024.

As of September 30, 2024, the Company’s net assets were $2.1 billion, and its net asset value per share was $12.37. As of September 30, 2024, the Company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 632% and the Company’s asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 456%.

STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2024  // (UNAUDITED)
		(in millions)
Investments		$	2,957.6
Cash and cash equivalents			15.8
Accrued income			2.2
Other assets			0.6
Total assets			2,976.2
Notes			424.4
Unamortized notes issuance costs			(2.7	)
Preferred stock			163.1
Unamortized preferred stock issuance costs			(1.4	)
Total leverage			583.4
Distribution payable			40.6
Other liabilities			7.5
Current tax liability, net			4.4
Deferred tax liability, net			247.5
Total liabilities			300.0
Net assets		$	2,092.8

The Company had 169,126,038 common shares outstanding as of September 30, 2024.

Long-term investments were comprised of Midstream Energy Companies (94%), Utility Companies (5%) and Other Energy (1%).  

The Company’s ten largest holdings by issuer at September 30, 2024 were:

			Amount (in millions)*			% Long Term Investments
1.	The Williams Companies, Inc. (Midstream Energy Company)		$	274.3		9.3	%
2.	MPLX LP (Midstream Energy Company)			273.9		9.3	%
3.	Energy Transfer LP (Midstream Energy Company)			273.8		9.3	%
4.	Enterprise Products Partners L.P. (Midstream Energy Company)			260.7		8.8	%
5.	ONEOK, Inc. (Midstream Energy Company)			218.1		7.4	%
6.	Targa Resources Corp. (Midstream Energy Company)			204.4		6.9	%
7.	Cheniere Energy, Inc. (Midstream Energy Company)			182.8		6.2	%
8.	Western Midstream Partners, LP (Midstream Energy Company)			167.1		5.6	%
9.	Kinder Morgan, Inc. (Midstream Energy Company)			166.7		5.6	%
10.	Pembina Pipeline Corporation (Midstream Energy Company)			130.6		4.4	%
*	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 is Kayne Anderson Energy Infrastructure Fund's (KYN) net asset value per share as of September 30, 2024?

Kayne Anderson Energy Infrastructure Fund's (KYN) net asset value per share was $12.37 as of September 30, 2024.

What are KYN's top three holdings as of September 30, 2024?

KYN's top three holdings as of September 30, 2024 are The Williams Companies, MPLX LP, and Energy Transfer LP, each representing 9.3% of long-term investments.

What is the asset coverage ratio for KYN's total leverage as of September 30, 2024?

The asset coverage ratio for KYN's total leverage (debt and preferred stock) was 456% as of September 30, 2024.

How many common shares does KYN have outstanding as of September 30, 2024?

KYN had 169,126,038 common shares outstanding as of September 30, 2024.