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

Rhea-AI Summary

ClearBridge Energy Midstream Opportunity Fund Inc. (EMO) reported its unaudited statement of assets and liabilities, net asset value, and asset coverage ratio as of January 31, 2024. The Fund's net assets were $494.9 million, with a net asset value per share of $38.70. The asset coverage ratio under the 1940 Act for senior indebtedness was 431%, and for total leverage was 328%. The Fund's top ten equity holdings as of January 31, 2024, accounted for 69.4% of total equity investments. ClearBridge Energy Midstream Opportunity Fund Inc. is a non-diversified, closed-end management investment company, advised by Franklin Templeton Fund Adviser, LLC and subadvised by ClearBridge Investments, LLC.

Financial Analyst

Reviewing the financial data reported by ClearBridge Energy Midstream Opportunity Fund Inc., several key figures stand out. The net asset value (NAV) per share is a critical metric for investors, as it represents the value of one share of the fund after liabilities are subtracted from assets. An NAV of $38.70 indicates the fund's performance and is essential for assessing its current standing in the market. The disclosed asset coverage ratios are significantly above 100%, which suggests a comfortable buffer for the fund in covering its leverage, indicating a lower risk of default on obligations. This could be reassuring for investors concerned about the fund's leverage and overall financial health.

It is also noteworthy that the top ten equity holdings constitute 69.4% of the fund's total equity investments, which implies a concentration in these assets. While this could suggest confidence in these holdings, it also indicates potential exposure to sector-specific risks. Investors might seek diversification to mitigate this risk. The performance of these top holdings, particularly in the energy sector, could substantially impact the fund's overall results.

Market Research Analyst

From a market research perspective, the composition of ClearBridge Energy Midstream Opportunity Fund's portfolio provides insights into the fund's strategic positioning. The energy sector and specifically midstream companies like those listed in the top ten holdings, play a pivotal role in the energy supply chain by transporting and storing oil and gas. The fund's focus on this segment could be driven by expectations of stable cash flows generated from long-term contracts and fees associated with midstream operations.

However, the sector is subject to fluctuations in energy prices and regulatory changes, which could affect the performance of these investments. Understanding the broader market trends, including shifts towards renewable energy and the impact of global events on oil and gas supply and demand, is crucial for assessing the future prospects of the fund's holdings.

Economist

Considering the economic context, the asset coverage ratios reported by the fund are indicative of its financial stability and its ability to meet debt obligations. A ratio of 431% for senior indebtedness and 328% for total leverage is well above the minimum 300% required by the 1940 Act for closed-end funds, reflecting a conservative leverage strategy. This could be interpreted as a positive sign in periods of economic uncertainty, as it suggests the fund is well-positioned to withstand market volatility.

Moreover, the energy sector's performance is closely tied to macroeconomic factors, including GDP growth, commodity prices and interest rates. The fund's investment in energy infrastructure assets, which are often seen as defensive investments due to their essential nature and potential for steady returns, may appeal to investors seeking stability in a portfolio during economic downturns or periods of heightened market volatility.

NEW YORK--(BUSINESS WIRE)-- ClearBridge Energy Midstream Opportunity Fund Inc. (NYSE: EMO) 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 $494.9 million, and its net asset value per share was $38.70. The Fund’s asset coverage ratio under the Investment Company Act of 1940 (the “1940 Act”) with respect to senior indebtedness was 431% 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	$	696.1		$	54.45
Cash and Cash Equivalents		8.5			0.66
Other Assets		32.0			2.50
Total Assets	$	736.6		$	57.61
Senior Notes*	$	21.3		$	1.67
Loans Outstanding*		144.0			11.26
Mandatory Redeemable Preferred Shares*		51.9			4.06
Total Leverage	$	217.2		$	16.99
Other Liabilities	$	24.5		$	1.92
Total Liabilities	$	24.5		$	1.92
Net Assets	$	494.9		$	38.70
Outstanding Shares		12,787,291
* The Fund's asset coverage ratio under the 1940 Act with respect to senior indebtedness was 431%.
* 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	$	86.5			12.4	%
MPLX LP	$	58.1			8.3	%
ONEOK Inc.	$	55.0			7.9	%
Enterprise Products Partners LP	$	50.4			7.2	%
Targa Resources Corp.	$	48.0			6.9	%
Western Midstream Partners LP	$	48.0			6.9	%
Williams Cos. Inc.	$	36.3			5.2	%
Kinder Morgan Inc.	$	35.0			5.0	%
Plains All American Pipeline LP	$	33.6			4.8	%
Plains GP Holdings LP	$	33.2			4.8	%
	$	484.1			69.4	%
** Subject to change at any time
*** Percent of Total Equity Investments

ClearBridge Energy Midstream Opportunity 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/20240207826539/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 per share for ClearBridge Energy Midstream Opportunity Fund Inc. as of January 31, 2024?

The net asset value per share for ClearBridge Energy Midstream Opportunity Fund Inc. as of January 31, 2024, was $38.70.

What is the asset coverage ratio under the 1940 Act for senior indebtedness and total leverage as of January 31, 2024?

The asset coverage ratio under the 1940 Act for senior indebtedness was 431%, and for total leverage was 328% as of January 31, 2024.

Who advises ClearBridge Energy Midstream Opportunity Fund Inc.?

ClearBridge Energy Midstream Opportunity Fund Inc. is advised by Franklin Templeton Fund Adviser, LLC.

Where can shareholders obtain information on Form N-PORT or a semi-annual or annual report from the Fund?

Shareholders can obtain information on Form N-PORT or a semi-annual or annual report from the Fund by calling 1-888-777-0102.