Kayne Anderson Energy Infrastructure Fund Provides Unaudited Balance Sheet Information and Announces Its Net Asset Value and Asset Coverage Ratios at February 29, 2024

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund, Inc. (KYN) reported net assets of $1.8 billion with a net asset value per share of $10.69 as of February 29, 2024. The company's asset coverage ratios under the Investment Company Act of 1940 were 642% for senior securities and 451% for total leverage.

Positive

• Net assets of $1.8 billion and net asset value per share of $10.69 as of February 29, 2024.
• Asset coverage ratios under the 1940 Act were 642% for senior securities and 451% for total leverage.
• Long-term investments include Midstream Energy Company (92%), Other Energy (4%), Utility Company (3%), and Renewable Infrastructure Company (1%).
• Portfolio holdings include Enterprise Products Partners, Energy Transfer LP, MPLX LP, The Williams Companies, ONEOK, Inc., and more.
• Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) aims to provide high after-tax total return by investing in Energy Infrastructure Companies.

Negative

• None.

Insights

Financial Analyst

Reviewing the recent financial disclosure by Kayne Anderson Energy Infrastructure Fund, Inc., the net asset value (NAV) per share of $10.69 provides a snapshot of the company's financial health. The reported asset coverage ratios, particularly the 642% for senior securities and 451% for total leverage, are significantly above the minimum 300% required by the 1940 Act for senior securities and 200% for total assets. This suggests a strong balance sheet and low risk of default, which could be reassuring for investors and could potentially lead to a positive impact on the stock's performance.

Furthermore, the composition of the long-term investments, with a heavy concentration in Midstream Energy Companies, reflects a targeted investment strategy in a sector known for stable cash flows and dividends. However, this focus also implies exposure to sector-specific risks, such as fluctuations in energy prices and regulatory changes. Investors would benefit from understanding the implications of such a focused portfolio in the context of their individual investment strategies and the current energy market trends.

Market Research Analyst

The disclosure of top holdings within Kayne Anderson Energy Infrastructure Fund's portfolio provides insight into the fund's market positioning. The dominance of Midstream Energy Companies, such as Enterprise Products Partners L.P. and Energy Transfer LP, indicates a reliance on the infrastructure necessary for energy transportation and storage. This sector is typically less volatile than the upstream sector, which focuses on exploration and production and can offer more predictable returns.

Given the growing global energy demand and the transition towards more renewable sources, the fund's minimal exposure to Renewable Infrastructure Companies at 1% might be seen as a missed opportunity for diversification and growth. Investors may consider the potential for the fund to adapt its strategy to include more investments in renewables, which could offer long-term growth prospects as the energy sector evolves.

Economist

The reported net assets of $1.8 billion and the substantial asset coverage ratios may reflect broader economic trends, such as the recovery of energy markets from previous downturns or the increasing demand for infrastructure development. The high coverage ratios could indicate a conservative approach to leverage, which might protect the fund during economic downturns but could also limit potential returns during market upswings.

Investors should consider macroeconomic factors, such as interest rate changes and economic cycles, which could affect the performance of energy infrastructure investments. A rising interest rate environment, for instance, could increase borrowing costs for companies within the fund’s portfolio, potentially affecting their profitability and, by extension, the fund's returns.

HOUSTON, March 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 February 29, 2024.

As of February 29, 2024, the Company’s net assets were $1.8 billion, and its net asset value per share was $10.69. As of February 29, 2024, the Company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 642% and the Company’s asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 451%.

STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2024   // (UNAUDITED)
		(in millions)
Investments		$	2,474.5
Cash and cash equivalents			16.3
Receivable for securities sold			16.9
Accrued income			2.1
Current tax asset, net			9.0
Other assets			1.3
Total assets			2,520.1
Term loan			50.0
Notes			311.7
Unamortized notes issuance costs			(1.6	)
Preferred stock			153.1
Unamortized preferred stock issuance costs			(1.4	)
Total leverage			511.8
Payable for securities purchased			33.9
Other liabilities			13.2
Deferred tax liability, net			152.5
Total liabilities			199.6
Net assets		$	1,808.7

The Company had 169,126,038 common shares outstanding as of February 29, 2024.

Long-term investments were comprised of Midstream Energy Company (92%), Other Energy (4%), Utility Company (3%) and Renewable Infrastructure Company (1%).

			Amount (in millions)*			% Long Term Investments
1.	Enterprise Products Partners L.P. (Midstream Energy Company)		$268.8			10.9	%
2.	Energy Transfer LP (Midstream Energy Company)			249.7		10.1	%
3.	MPLX LP (Midstream Energy Company)			236.8		9.6	%
4.	The Williams Companies, Inc. (Midstream Energy Company)			215.9		8.7	%
5.	ONEOK, Inc. (Midstream Energy Company)			198.4		8.0	%
6.	Targa Resources Corp. (Midstream Energy Company)			192.2		7.8	%
7.	Plains All American Pipeline, L.P. (Midstream Energy Company)			142.9		5.8	%
8.	Cheniere Energy, Inc. (Midstream Energy Company)			137.1		5.5	%
9.	Western Midstream Partners, LP (Midstream Energy Company)			109.4		4.4	%
10.	Kinder Morgan, Inc. (Midstream Energy Company)			103.4		4.2	%

*	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 are Kayne Anderson Energy Infrastructure Fund, Inc.'s (KYN) net assets and net asset value per share as of February 29, 2024?

The company reported net assets of $1.8 billion with a net asset value per share of $10.69 as of February 29, 2024.

What are the asset coverage ratios under the Investment Company Act of 1940 for Kayne Anderson Energy Infrastructure Fund, Inc. (KYN)?

The asset coverage ratio was 642% for senior securities and 451% for total leverage.

What are the long-term investments breakdown for Kayne Anderson Energy Infrastructure Fund, Inc. (KYN)?

The long-term investments include Midstream Energy Company (92%), Other Energy (4%), Utility Company (3%), and Renewable Infrastructure Company (1%).

Which companies are part of Kayne Anderson Energy Infrastructure Fund, Inc.'s (KYN) portfolio holdings?

Portfolio holdings include Enterprise Products Partners, Energy Transfer LP, MPLX LP, The Williams Companies, ONEOK, Inc., and more.

What is the investment objective of Kayne Anderson Energy Infrastructure Fund, Inc. (KYN)?

The company aims to provide a high after-tax total return with an emphasis on making cash distributions to stockholders by investing in Energy Infrastructure Companies.