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

Rhea-AI Summary

ClearBridge MLP and Midstream Fund Inc. (NYSE: CEM) reported its unaudited assets and liabilities, net asset value, and asset coverage ratio as of March 31, 2024. The Fund's net assets stood at $658.2 million, with a net asset value per share of $49.51. The asset coverage ratio for senior indebtedness was 459%, and for total leverage, it was 356%. Top ten equity holdings included Energy Transfer LP, ONEOK Inc., and MPLX LP.

Financial Analyst

The disclosed net asset value (NAV) of ClearBridge MLP and Midstream Fund Inc. provides an essential snapshot for investors assessing the intrinsic value of the fund's shares. With a NAV per share of $49.51, the fund's valuation is a key metric for potential buy or sell decisions. The reported asset coverage ratios, at 459% for senior indebtedness and 356% for total leverage, significantly exceed the 300% minimum typically required under the 1940 Act, indicating a robust buffer against potential declines in asset values.

Moreover, the top ten equity holdings, comprising nearly 75% of the fund's investments, reflect a concentrated exposure to the energy sector. This concentration could lead to higher volatility in the fund’s performance, especially considering the fluctuating nature of energy markets. Investors should be aware of the implications of this sector focus on the fund's risk profile and its potential performance in various market conditions.

Market Research Analyst

An examination of ClearBridge MLP and Midstream Fund Inc.'s portfolio reveals a significant allocation towards midstream energy companies. This sector is known for its fee-based income, which can provide a relatively stable cash flow. However, the fund's performance is inherently tied to the health of the energy sector and specifically to the demand for transportation and storage of oil and gas. Market trends such as the transition to renewable energy sources and fluctuating commodity prices could affect the valuation of these holdings.

Investors should also consider the potential impact of regulatory changes on the midstream sector, which could influence the fund's asset coverage ratios and overall performance. The fund's reliance on a few key holdings also presents a concentration risk, which could be mitigated by diversification strategies within the broader investment portfolio.

Tax Specialist

The presence of a deferred tax liability on ClearBridge MLP and Midstream Fund Inc.'s balance sheet is indicative of the fund's strategy of deferring taxable events. For investors, understanding the tax implications of the fund's investment strategy is critical, as it can affect the after-tax return on their investment. The fund's decision to defer taxes may be advantageous in the short term, but it is important to recognize that this liability represents a future outflow that could impact returns.

Additionally, the change in reporting income tax payable, now separated from other liabilities, enhances transparency for shareholders. This allows for a clearer assessment of the fund's tax position and potential obligations that may arise from portfolio turnover. Investors should monitor how these tax liabilities evolve over time and consider their effect on the fund's net asset value and distributions.

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 March 31, 2024.

As of March 31, 2024, the Fund’s net assets were $658.2 million, and its net asset value per share was $49.51. The Fund’s asset coverage ratio under the Investment Company Act of 1940 (the “1940 Act”) with respect to senior indebtedness was 459% and the Fund’s asset coverage ratio under the 1940 Act with respect to total leverage was 356%.

	As of March 31, 2024
	Amount (millions)			Per Share
Investments	$	929.0		$	69.87
Cash and Cash Equivalents		1.4			0.11
Other Assets		35.7			2.69
Total Assets	$	966.1		$	72.67
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
Income Tax Payable †	$	0.1		$	0.01
Deferred Tax Liability		13.7			1.03
Other Liabilities		37.2			2.80
Total Liabilities	$	51.0		$	3.84
Net Assets	$	658.2		$	49.51
Outstanding Shares		13,294,195
* The Fund's asset coverage ratio under the 1940 Act with respect to senior indebtedness was 459%.
* The Fund's asset coverage ratio under the 1940 Act with respect to total leverage was 356%.
† Income tax payable, previously netted in Other Liabilities, resulted from portfolio turnover.
Top Ten Equity Holdings (as of March 31, 2024)**
	Market Value
Name	(millions)			% of Investments			***
Energy Transfer LP	$	113.3			12.2	%
ONEOK Inc.	$	92.5			10.0	%
MPLX LP	$	84.6			9.1	%
Western Midstream Partners LP	$	75.6			8.1	%
Enterprise Products Partners LP	$	72.4			7.8	%
Targa Resources Corp.	$	65.3			7.0	%
Plains All American Pipeline LP	$	50.1			5.4	%
Williams Cos. Inc.	$	49.5			5.3	%
Plains GP Holdings LP	$	49.2			5.3	%
Kinder Morgan Inc.	$	43.3			4.7	%
	$	695.8			74.9	%
** 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/20240405861217/en/

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

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

FAQ

What are ClearBridge MLP and Midstream Fund Inc.'s (CEM) net assets as of March 31, 2024?

ClearBridge MLP and Midstream Fund Inc.'s net assets were $658.2 million as of March 31, 2024.

What was ClearBridge MLP and Midstream Fund Inc.'s (CEM) net asset value per share as of March 31, 2024?

ClearBridge MLP and Midstream Fund Inc.'s net asset value per share was $49.51 as of March 31, 2024.

What was the asset coverage ratio for senior indebtedness for ClearBridge MLP and Midstream Fund Inc. (CEM) as of March 31, 2024?

The asset coverage ratio for senior indebtedness for ClearBridge MLP and Midstream Fund Inc. (CEM) was 459% as of March 31, 2024.

What were the top ten equity holdings of ClearBridge MLP and Midstream Fund Inc. (CEM) as of March 31, 2024?

The top ten equity holdings of ClearBridge MLP and Midstream Fund Inc. (CEM) as of March 31, 2024 included Energy Transfer LP, ONEOK Inc., and MPLX LP.