ClearBridge MLP and Midstream Fund Inc. Announces Unaudited Balance Sheet Information as of January 31, 2024

Rhea-AI Summary

ClearBridge MLP and Midstream Fund Inc. (CEM) announced unaudited financial data as of January 31, 2024. The net assets were $584.6 million, net asset value per share was $43.97, and asset coverage ratio was 422% for senior indebtedness and 328% for total leverage. The top ten equity holdings accounted for 73.4% of total equity investments.

Financial Analyst

The recent financial disclosure by ClearBridge MLP and Midstream Fund Inc. presents a robust asset coverage ratio well above the minimum regulatory requirements, indicating a strong cushion against creditor claims in the event of asset liquidation. An asset coverage ratio of 422% for senior indebtedness and 328% for total leverage is significantly above the 300% threshold typically required by the 1940 Act for closed-end funds, which could be perceived positively by investors and analysts monitoring the fund's financial health and risk profile.

Furthermore, the net asset value (NAV) per share of $43.97 provides a snapshot of the fund's value as of January 31, 2024, which is essential for investors to assess the current performance relative to the market price of the shares. A comparison of the NAV with the market price can indicate whether the fund is trading at a premium or discount, influencing investment decisions.

Market Research Analyst

Examining the top ten equity holdings, which account for 73.4% of the fund's total investments, we see a concentration in entities such as Energy Transfer LP, ONEOK Inc. and MPLX LP. This concentrated exposure to key players in the energy infrastructure sector suggests a strategic bet on the midstream segment, which is known for its fee-based income and relative insulation from commodity price volatility. However, it also implies higher sector-specific risks, including regulatory changes and shifts in energy consumption patterns.

Investors should be aware of the implications of this concentration, as it could lead to significant performance swings based on the health of the energy sector. The fund's strategy and holdings should be evaluated in the context of broader market trends and the potential impact of energy policies and market dynamics on midstream operations.

Legal Expert

The compliance with the Investment Company Act of 1940 is a critical legal aspect for investment companies like ClearBridge MLP and Midstream Fund Inc. The disclosure of high asset coverage ratios demonstrates the fund's adherence to regulatory standards, which could mitigate legal and compliance risks. Potential investors and stakeholders often look for such compliance as an indicator of a fund's governance and risk management practices.

Additionally, the unaudited nature of the financial data and the references to SEC filings, such as Form N-PORT, highlight the transparency and regulatory obligations of the fund. Stakeholders should monitor the fund's filings for any material changes or updates that could affect their investment or the fund's compliance status.

NEW YORK--(BUSINESS WIRE)-- ClearBridge MLP and Midstream Fund Inc. (NYSE: CEM) announced today the unaudited statement of assets and liabilities, the net asset value and asset coverage ratio of the Fund as of January 31, 2024.

As of January 31, 2024, the Fund’s net assets were $584.6 million, and its net asset value per share was $43.97. The Fund’s asset coverage ratio under the Investment Company Act of 1940 (the “1940 Act”) with respect to senior indebtedness was 422% and the Fund’s asset coverage ratio under the 1940 Act with respect to total leverage was 328%.

	As of January 31, 2024
	Amount (millions)			Per Share
Investments	$	836.4		$	62.91
Cash and Cash Equivalents		9.4			0.71
Other Assets		36.5			2.74
Total Assets	$	882.3		$	66.36
Senior Notes*	$	45.0		$	3.38
Loans Outstanding*		154.5			11.62
Mandatory Redeemable Preferred Shares*		57.4			4.32
Total Leverage	$	256.9		$	19.32
Other Liabilities	$	40.8		$	3.07
Total Liabilities	$	40.8		$	3.07
Net Assets	$	584.6		$	43.97
Outstanding Shares		13,294,195
* The Fund's asset coverage ratio under the 1940 Act with respect to senior indebtedness was 422%.
* The Fund's asset coverage ratio under the 1940 Act with respect to total leverage was 328%.
Top Ten Equity Holdings (as of January 31, 2024)**
	Market Value
Name	(millions)			% of Investments			***
Energy Transfer LP	$	108.0			12.9	%
ONEOK Inc.	$	78.8			9.4	%
MPLX LP	$	78.5			9.4	%
Enterprise Products Partners LP	$	66.4			7.9	%
Western Midstream Partners LP	$	61.1			7.3	%
Targa Resources Corp.	$	49.5			5.9	%
Plains All American Pipeline LP	$	44.1			5.3	%
Williams Cos. Inc.	$	44.0			5.3	%
Plains GP Holdings LP	$	43.6			5.2	%
Hess Midstream LP	$	40.3			4.8	%
	$	614.3			73.4	%
** Subject to change at any time
*** Percent of Total Equity Investments

ClearBridge MLP and Midstream Fund Inc. is a non-diversified, closed-end management investment company, which is advised by Franklin Templeton Fund Adviser, LLC (“FTFA”) (formerly known as Legg Mason Partners Fund Advisor, LLC) and subadvised by ClearBridge Investments, LLC (“ClearBridge”). FTFA and ClearBridge are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. (“Franklin Resources”).

This financial data is unaudited.

The Fund files its semi-annual and annual reports with the Securities and Exchange Commission (“SEC”), as well as its complete schedule of portfolio holdings for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These reports are available on the SEC’s website at www.sec.gov. To obtain information on Form N-PORT or a semi-annual or annual report from the Fund, shareholders can call 1-888-777-0102.

For more information about the Fund, please call 1-888-777-0102 or consult the Fund’s website at www.franklintempleton.com/investments/options/closed-end-funds. Hard copies of the Fund’s complete audited financial statements are available free of charge upon request.

Data and commentary provided in this press release are for informational purposes only. Franklin Resources and its affiliates do not engage in selling shares of the Fund.

Category: Financials

Source: Franklin Resources, Inc.

Source: Legg Mason Closed End Funds

View source version on businesswire.com: https://www.businesswire.com/news/home/20240207714782/en/

Investor: Fund Investor Services 1-888-777-0102

Source: Franklin Resources, Inc. and Legg Mason Closed End Funds

FAQ

What is the net asset value of ClearBridge MLP and Midstream Fund Inc. as of January 31, 2024?

The net asset value of ClearBridge MLP and Midstream Fund Inc. was $584.6 million as of January 31, 2024.

What is the asset coverage ratio of the Fund under the 1940 Act?

The asset coverage ratio of the Fund under the 1940 Act was 422% for senior indebtedness and 328% for total leverage.

What are the top ten equity holdings of ClearBridge MLP and Midstream Fund Inc. as of January 31, 2024?

The top ten equity holdings accounted for 73.4% of total equity investments and included Energy Transfer LP, ONEOK Inc., MPLX LP, and others.

Who advises ClearBridge MLP and Midstream Fund Inc.?

ClearBridge MLP and Midstream Fund Inc. is advised by Franklin Templeton Fund Adviser, LLC and subadvised by ClearBridge Investments, LLC.

Where can shareholders obtain reports from ClearBridge MLP and Midstream Fund Inc.?

Shareholders can obtain reports from the Fund by calling 1-888-777-0102 or visiting the SEC's website at www.sec.gov.