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

Rhea-AI Summary

On July 1, 2024, Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) released its unaudited balance sheet and net asset information for June 30, 2024. The fund reported net assets of $2.0 billion, with a net asset value per share of $11.79. The asset coverage ratio, under the Investment Company Act of 1940, was 621% for senior securities and 453% for total leverage. Long-term investments were valued at $2.78 billion, with midstream energy companies representing 92%, other energy 5%, and utilities 3%. The top holdings include Energy Transfer LP, MPLX LP, and Enterprise Products Partners L.P. Total liabilities were $263.6 million, including a deferred tax liability of $218.3 million. The company had 169,126,038 common shares outstanding.

Positive

• Net assets reported at $2.0 billion.
• High asset coverage ratios: 621% for senior securities and 453% for total leverage.
• Net asset value per share at $11.79.
• Investments valued at $2.78 billion, primarily in the stable midstream energy sector (92%).

Negative

• Deferred tax liability of $218.3 million.
• Total liabilities of $263.6 million.

Financial Analyst

The recent disclosure of unaudited balance sheet information by Kayne Anderson Energy Infrastructure Fund (KYN) offers valuable insights into the company's financial health. For retail investors, the key metrics to note include the net asset value (NAV) per share, which stands at $11.79 and the asset coverage ratios under the Investment Company Act of 1940. The asset coverage ratio for senior securities representing indebtedness is 621%, while that for total leverage (both debt and preferred stock) is 453%. These ratios exceed the regulatory requirement of 300%, indicating a robust financial position.

Additionally, KYN's investment portfolio is heavily skewed towards Midstream Energy Companies, comprising 92% of long-term investments. This concentration increases the potential for high returns but also exposes the company to sector-specific risks. However, the diversification within the midstream sector itself provides some level of risk mitigation.

For short-term investors, the high asset coverage ratios suggest a lower likelihood of liquidity issues, making KYN a relatively safe bet in the energy infrastructure space. Long-term investors should note the sector concentration and evaluate their risk tolerance accordingly. The fund's strategy of providing high after-tax total returns through cash distributions aligns well with income-focused investment goals.

Market Research Analyst

KYN's focus on Midstream Energy Companies is noteworthy, especially in the current energy market landscape. Midstream companies, which deal with the transportation, storage and processing of oil and gas, tend to have more stable cash flows compared to upstream (exploration and production) or downstream (refining and marketing) segments. This stability can be particularly appealing in volatile market conditions.

Investors should also consider the implications of the fund's tax strategy. The emphasis on after-tax total returns suggests that KYN employs tax-efficient investment strategies, which can be a significant advantage for taxable accounts.

Given the fund's concentration in energy infrastructure, it's essential to monitor broader market trends, such as regulatory changes, commodity prices and technological advancements in the energy sector. The fund's top holdings in companies like Energy Transfer LP and Enterprise Products Partners L.P. indicate substantial exposure to the U.S. energy infrastructure, which may benefit from ongoing investments in renewable energy and natural gas infrastructure.

HOUSTON, July 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 June 30, 2024.

As of June 30, 2024, the Company’s net assets were $2.0 billion, and its net asset value per share was $11.79. As of June 30, 2024, the Company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 621% and the Company’s asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 453%.

STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2024   // (UNAUDITED)
		(in millions)
Investments		$	2,782.3
Cash and cash equivalents			22.9
Receivable for securities sold			5.9
Accrued income			1.9
Current tax asset, net			4.2
Other assets			1.3
Total assets			2,818.5
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
Distribution payable			37.2
Payable for securities purchased			1.3
Other liabilities			6.8
Deferred tax liability, net			218.3
Total liabilities			263.6
Net assets		$	1,993.6

The Company had 169,126,038 common shares outstanding as of June 30, 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)		$276.7			9.9	%
2.	MPLX LP (Midstream Energy Company)			262.3		9.4	%
3.	Enterprise Products Partners L.P. (Midstream Energy Company)			259.5		9.3	%
4.	The Williams Companies, Inc. (Midstream Energy Company)			255.3		9.2	%
5.	Targa Resources Corp. (Midstream Energy Company)			229.5		8.2	%
6.	ONEOK, Inc. (Midstream Energy Company)			203.9		7.3	%
7.	Cheniere Energy, Inc. (Midstream Energy Company)			166.1		6.0	%
8.	Kinder Morgan, Inc. (Midstream Energy Company)			149.9		5.4	%
9.	Plains All American Pipeline, L.P. (Midstream Energy Company)			144.1		5.2	%
10.	Western Midstream Partners, LP (Midstream Energy Company)			142.1		5.1	%
*	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 net asset value per share as of June 30, 2024?

Kayne Anderson Energy Infrastructure Fund's net asset value per share was $11.79 as of June 30, 2024.

What is Kayne Anderson Energy Infrastructure Fund's asset coverage ratio for senior securities as of June 30, 2024?

The asset coverage ratio for senior securities was 621% as of June 30, 2024.

What were Kayne Anderson Energy Infrastructure Fund's total liabilities as of June 30, 2024?

Kayne Anderson Energy Infrastructure Fund's total liabilities were $263.6 million as of June 30, 2024.

As of June 30, 2024, what percentage of Kayne Anderson Energy Infrastructure Fund's portfolio is comprised of midstream energy companies?

As of June 30, 2024, 92% of Kayne Anderson Energy Infrastructure Fund's portfolio was comprised of midstream energy companies.

How many common shares did Kayne Anderson Energy Infrastructure Fund have outstanding as of June 30, 2024?

Kayne Anderson Energy Infrastructure Fund had 169,126,038 common shares outstanding as of June 30, 2024.