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

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund, Inc. (KYN) reported net assets of $1.9 billion with a net asset value per share of $11.52 as of March 31, 2024. The asset coverage ratios under the Investment Company Act of 1940 were 661% for senior securities and 469% for total leverage. The company's long-term investments were primarily in Midstream Energy Companies.

Positive

• Net assets of $1.9 billion and net asset value per share of $11.52 as of March 31, 2024.
• Asset coverage ratios of 661% for senior securities and 469% for total leverage under the Investment Company Act of 1940.
• Long-term investments focused on Midstream Energy Companies.
• Investment objective to provide high after-tax total return with cash distributions to stockholders.
• Registered as a non-diversified, closed-end management investment company on NYSE.

Negative

• None.

Financial Analyst

The net asset value (NAV) per share is a vital indicator for investors in closed-end funds like Kayne Anderson Energy Infrastructure Fund, Inc. It represents the value of one share of the fund after liabilities are subtracted from assets and divided by the number of shares outstanding. A high NAV can imply that the investments held by the fund have performed well, although it is also important to consider the market conditions and the specific assets within the fund's portfolio.

The asset coverage ratios reported are significantly above the 300% requirement set by the 1940 Act for senior securities, indicating a strong buffer against potential declines in asset values. This could be reassuring to investors concerned about the fund's ability to cover its debt obligations. However, the focus on Energy Infrastructure Companies, particularly Midstream Energy Companies, suggests a concentration risk, which could be a double-edged sword, depending on sector performance.

Market Research Analyst

The energy sector, specifically midstream companies, is subject to volatility in commodity prices, regulatory changes and shifts in supply and demand dynamics. The fund's significant exposure to this sector, with top holdings in major midstream entities, suggests a strategy betting on the continued demand for energy transportation and storage. While this can offer potential for high yields, especially in a high-demand environment, it also exposes the fund to sector-specific risks such as geopolitical tensions, environmental regulations and energy transition trends.

Investors should be aware that the fund's performance is closely tied to the health of the energy infrastructure market. Diversification—or lack thereof—within the portfolio is a critical factor to consider, as it can affect the fund's resilience to sector downturns. The energy sector's performance and consequently the fund's results, could significantly sway investor sentiment and impact the stock's market performance.

Economist

From an economic standpoint, the energy infrastructure is a cornerstone of industrial and economic activity. The fund's investment in this area might benefit from macroeconomic trends such as increasing global energy consumption and infrastructure development. However, it's also susceptible to economic cycles and energy policy shifts, which can affect profitability and valuations of the underlying investments.

Furthermore, the fund's after-tax total return objective is particularly relevant given the current tax environment and potential legislative changes affecting investment income. The emphasis on cash distributions aligns with income-seeking investors' preferences, but the sustainability of these distributions depends on the underlying assets' performance and the broader economic context.

HOUSTON, April 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 March 31, 2024.

As of March 31, 2024, the Company’s net assets were $1.9 billion, and its net asset value per share was $11.52. As of March 31, 2024, the Company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 661% and the Company’s asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 469%.

STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2024   // (UNAUDITED)

		(in millions)
Investments		$	2,658.4
Cash and cash equivalents			3.5
Receivable for securities sold			13.3
Accrued income			1.9
Current tax asset, net			8.9
Other assets			1.3
Total assets			2,687.3
Credit facility			13.0
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			524.8
Payable for securities purchased			15.3
Other liabilities			7.5
Deferred tax liability, net			191.0
Total liabilities			213.8
Net assets		$	1,948.7

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

Long-term investments were comprised of Midstream Energy Company (93%), Other Energy (4%), Utility Company (3%).  

			Amount (in millions)*		% Long Term Investments
1.	Enterprise Products Partners L.P. (Midstream Energy Company)		$283.5		10.7%
2.	Energy Transfer LP (Midstream Energy Company)		268.3		10.1%
3.	MPLX LP (Midstream Energy Company)		256.0		9.6%
4.	The Williams Companies, Inc. (Midstream Energy Company)		234.1		8.8%
5.	ONEOK, Inc. (Midstream Energy Company)		211.7		8.0%
6.	Targa Resources Corp. (Midstream Energy Company)		207.8		7.8%
7.	Plains All American Pipeline, L.P. (Midstream Energy Company)		152.8		5.7%
8.	Cheniere Energy, Inc. (Midstream Energy Company)		142.5		5.4%
9.	Kinder Morgan, Inc. (Midstream Energy Company)		131.4		4.9%
10.	Western Midstream Partners, LP (Midstream Energy Company)		116.3		4.4%

*	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.

What were Kayne Anderson Energy Infrastructure Fund, Inc.'s net assets as of March 31, 2024?

Kayne Anderson Energy Infrastructure Fund, Inc. reported net assets of $1.9 billion as of March 31, 2024.

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

The asset coverage ratio for senior securities was 661%, and for total leverage (debt and preferred stock) was 469% under the Investment Company Act of 1940 for Kayne Anderson Energy Infrastructure Fund, Inc.

What were the primary sectors of long-term investments for Kayne Anderson Energy Infrastructure Fund, Inc.?

The primary sectors of long-term investments for Kayne Anderson Energy Infrastructure Fund, Inc. were Midstream Energy Companies.

Where is Kayne Anderson Energy Infrastructure Fund, Inc. traded?

Kayne Anderson Energy Infrastructure Fund, Inc. is traded on the NYSE.

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

The investment objective of Kayne Anderson Energy Infrastructure Fund, Inc. is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders.