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

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) has released its unaudited financial information as of August 31, 2024. The company reported net assets of $2.1 billion and a net asset value per share of $12.60. KYN's asset coverage ratios were strong, with 625% for senior securities representing indebtedness and 462% for total leverage.

The fund's investments totaled $2.98 billion, primarily allocated to Midstream Energy Companies (93%), with smaller allocations to Utility Companies (4%) and Other Energy (3%). KYN's top holdings include major players in the midstream energy sector such as The Williams Companies, Energy Transfer LP, and MPLX LP.

Positive

• Strong asset coverage ratios: 625% for senior securities and 462% for total leverage
• Substantial investment portfolio of $2.98 billion
• Diversified holdings across major midstream energy companies

Negative

• None.

Insights

Financial Analyst

The report provides key financial metrics for Kayne Anderson Energy Infrastructure Fund (KYN), a closed-end management investment company. As of August 31, 2024, KYN's net assets stood at $2.1 billion with a net asset value (NAV) per share of $12.60. The fund's asset coverage ratios are strong, with 625% for senior securities indebtedness and 462% for total leverage, indicating a solid financial position.

KYN's portfolio is heavily concentrated in Midstream Energy Companies (93%), with minor allocations to Utility Companies (4%) and Other Energy (3%). This concentration aligns with the fund's investment objective but also exposes investors to sector-specific risks. The top 10 holdings, all midstream companies, account for a significant portion of the portfolio, with The Williams Companies and Energy Transfer LP both at 9.2% of long-term investments.

While the fund's focus on energy infrastructure may offer potential for high after-tax returns and cash distributions, investors should be aware of the sector concentration risk and potential volatility in energy markets.

Market Research Analyst

KYN's portfolio composition reflects the current state of the energy infrastructure sector. The heavy concentration in midstream companies (93%) suggests a focus on assets involved in the transportation, storage and processing of oil and gas. This strategy could be beneficial in an environment of increasing energy production and demand.

However, the diversification across other energy subsectors (7% combined in Utility Companies and Other Energy) may expose the fund to higher volatility if the midstream sector faces challenges. The top 10 holdings, representing major players in the industry, account for a substantial portion of the portfolio, which could amplify both positive and negative sector movements.

Investors should consider the fund's performance in relation to broader energy market trends, regulatory changes affecting midstream companies and the potential impact of the energy transition on long-term infrastructure investments. The fund's ability to maintain its high asset coverage ratios and NAV will be important for investor confidence in the current dynamic energy landscape.

HOUSTON, Sept. 04, 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 August 31, 2024.

As of August 31, 2024, the Company’s net assets were $2.1 billion, and its net asset value per share was $12.60. As of August 31, 2024, the Company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 625% and the Company’s asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 462%.

STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 2024  // (UNAUDITED)
		(in millions)
Investments		$	2,977.4
Cash and cash equivalents			1.3
Accrued income			2.9
Other assets			0.7
Total assets			2,982.3
Credit facility			81.0
Notes			354.4
Unamortized notes issuance costs			(2.1	)
Preferred stock			153.1
Unamortized preferred stock issuance costs			(1.3	)
Total leverage			585.1
Other liabilities			14.7
Current tax liability, net			4.8
Deferred tax liability, net			246.9
Total liabilities			266.4
Net assets		$	2,130.8

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

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

The Company’s ten largest holdings by issuer at August 31, 2024 were:

			Amount (in millions)*		% Long Term Investments
1.	The Williams Companies, Inc. (Midstream Energy Company)		$275.0		9.2	%
2.	Energy Transfer LP (Midstream Energy Company)		274.7		9.2	%
3.	MPLX LP (Midstream Energy Company)		264.1		8.9	%
4.	Enterprise Products Partners L.P. (Midstream Energy Company)		262.7		8.8	%
5.	ONEOK, Inc. (Midstream Energy Company)		221.1		7.4	%
6.	Targa Resources Corp. (Midstream Energy Company)		202.9		6.8	%
7.	Cheniere Energy, Inc. (Midstream Energy Company)		188.3		6.3	%
8.	Western Midstream Partners, LP (Midstream Energy Company)		168.5		5.7	%
9.	Kinder Morgan, Inc. (Midstream Energy Company)		162.8		5.5	%
10.	Pembina Pipeline Corporation (Midstream Energy Company)		127.6		4.3	%
*	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.

FAQ

What was Kayne Anderson Energy Infrastructure Fund's (KYN) net asset value per share on August 31, 2024?

Kayne Anderson Energy Infrastructure Fund's (KYN) net asset value per share was $12.60 as of August 31, 2024.

How much were KYN's total net assets as of August 31, 2024?

KYN's total net assets were $2.1 billion as of August 31, 2024.

What was the asset coverage ratio for KYN's senior securities as of August 31, 2024?

KYN's asset coverage ratio for senior securities representing indebtedness was 625% as of August 31, 2024.

What percentage of KYN's long-term investments were in Midstream Energy Companies?

93% of KYN's long-term investments were in Midstream Energy Companies as of August 31, 2024.