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

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund, Inc. (KYN) announced its net asset value and asset coverage ratios under the Investment Company Act of 1940. As of January 31, 2024, the Company's net assets were $1.7 billion, and its net asset value per share was $10.25. The asset coverage ratio with respect to senior securities representing indebtedness was 585%, and with respect to total leverage, it was 420%. The company holds significant long-term investments in Midstream Energy, Utility, Renewable Infrastructure, and Other Energy sectors.

Insights

Financial Analyst

The announcement from Kayne Anderson Energy Infrastructure Fund, Inc. regarding its net asset value (NAV) and asset coverage ratios provides critical data for investors and market analysts. The reported NAV of $10.25 per share is a fundamental indicator of the fund's performance, especially for a closed-end fund like KYN, which trades on the open market.

In assessing the company's asset coverage ratios, which exceed the minimum requirements set by the 1940 Act, there is an implication of financial stability and low risk of default on obligations. Specifically, the 585% coverage for senior securities and 420% for total leverage indicate a robust capacity to meet debt and other financial commitments. This can be seen as a positive signal for investors looking for lower-risk energy infrastructure investments.

Furthermore, the detailed breakdown of long-term investments, predominantly in Midstream Energy Companies, reflects a targeted investment strategy in a sector known for stable cash flows derived from fee-based activities. This sector focus, however, also suggests exposure to sector-specific risks such as commodity price fluctuations and regulatory changes.

Market Research Analyst

From a market perspective, the composition of Kayne Anderson Energy Infrastructure Fund's portfolio is noteworthy. With a significant 91% allocation in Midstream Energy Companies, the fund is positioned to capitalize on the demand for energy transportation and storage, which is less sensitive to commodity price volatility compared to upstream producers.

However, the energy sector is undergoing a transition towards renewable sources, which could impact the long-term viability of traditional energy infrastructure investments. The fund's 2% allocation in Renewable Infrastructure Companies may be seen as conservative, potentially limiting growth as the energy market evolves. This strategic positioning should be monitored by investors as the industry responds to increasing renewable energy adoption.

Energy Sector Analyst

Analyzing the fund's portfolio holdings reveals a concentration in top midstream players like Enterprise Products Partners L.P. and Energy Transfer LP. These companies are integral to the energy supply chain, managing assets that connect producers with consumers. Their performance is closely tied to the overall health of the energy market and can be used as a barometer for the sector.

It is important to note that midstream companies often operate under long-term contracts, which can provide a buffer during periods of market volatility. This is reflected in the fund's ability to maintain a high asset coverage ratio, suggesting a calculated approach to risk management within the volatile energy sector.

HOUSTON, Feb. 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 January 31, 2024.

As of January 31, 2024, the Company’s net assets were $1.7 billion, and its net asset value per share was $10.25. As of January 31, 2024, the Company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 585% and the Company’s asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 420%.

STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 2024   // (UNAUDITED)
		(in millions)
Investments		$	2,392.6
Cash and cash equivalents			1.7
Receivable for securities sold			5.6
Accrued income			14.5
Current tax asset, net			8.0
Other assets			0.8
Total assets			2,423.2
Credit facility			27.0
Term loan			50.0
Notes			311.7
Unamortized notes issuance costs			(1.6	)
Preferred stock			153.1
Unamortized preferred stock issuance costs			(1.5	)
Total leverage			538.7
Treasury note sold short, net(1)			0.2
Payable for securities purchased			10.5
Other liabilities			10.2
Deferred tax liability, net			130.3
Total liabilities			151.2
Net assets		$	1,733.3
(1) Net value of restricted cash proceeds from short position and the fair market value of security sold short.

 

 

The Company had 169,126,038 common shares outstanding as of January 31, 2024.

Long-term investments were comprised of Midstream Energy Company (91%), Utility Company (4%), Renewable Infrastructure Company (2%) and Other Energy (3%).

			Amount (in millions)*		% Long Term Investments
1.	Enterprise Products Partners L.P. (Midstream Energy Company)		$263.7		11.0	%
2.	Energy Transfer LP (Midstream Energy Company)		243.9		10.2	%
3.	MPLX LP (Midstream Energy Company)		237.5		9.9	%
4.	The Williams Companies, Inc. (Midstream Energy Company)		198.5		8.3	%
5.	ONEOK, Inc. (Midstream Energy Company)		170.5		7.1	%
6.	Targa Resources Corp. (Midstream Energy Company)		166.2		6.9	%
7.	Cheniere Energy, Inc. (Midstream Energy Company)		144.9		6.1	%
8.	Plains All American Pipeline, L.P. (Midstream Energy Company)		134.4		5.6	%
9.	Kinder Morgan, Inc. (Midstream Energy Company)		100.6		4.2	%
10.	Western Midstream Partners, LP (Midstream Energy Company)		94.0		3.9	%
*	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@kaynecapital.com.

FAQ

What is the net asset value of Kayne Anderson Energy Infrastructure Fund, Inc. (KYN) as of January 31, 2024?

As of January 31, 2024, the net asset value of Kayne Anderson Energy Infrastructure Fund, Inc. (KYN) was $1.7 billion.

What were the net assets per share of Kayne Anderson Energy Infrastructure Fund, Inc. (KYN) as of January 31, 2024?

The net asset value per share of Kayne Anderson Energy Infrastructure Fund, Inc. (KYN) was $10.25 as of January 31, 2024.

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

The asset coverage ratio with respect to senior securities representing indebtedness was 585%, and with respect to total leverage, it was 420%.

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

Kayne Anderson Energy Infrastructure Fund, Inc. (KYN) holds long-term investments in Midstream Energy, Utility, Renewable Infrastructure, and Other Energy sectors.