KAYNE ANDERSON MIDSTREAM/ENERGY FUND, INC.
AUGUST 31, 2019
(amounts in 000s, except number of option contracts)
(UNAUDITED)
Description |
No. of Shares/Units |
Value | ||||||||||||||||||
Long-Term Investments 145.8% |
||||||||||||||||||||
Equity Investments(1) 143.4% |
||||||||||||||||||||
United States 117.5% |
||||||||||||||||||||
Midstream Companies(2) 77.2% |
||||||||||||||||||||
Antero Midstream Corporation |
|
1,021 | $ | 7,261 | ||||||||||||||||
EnLink Midstream, LLC |
|
2,656 | 21,089 | |||||||||||||||||
EnLink Midstream Partners, LP, Series C Preferred Units(3) |
|
8,655 | 6,534 | |||||||||||||||||
Equitrans Midstream Corporation |
|
250 | 3,373 | |||||||||||||||||
GasLog Partners LP(4) |
|
1,289 | 24,421 | |||||||||||||||||
Golar LNG Partners LP(4) |
|
697 | 6,841 | |||||||||||||||||
Höegh LNG Partners LP(4) |
|
1,062 | 15,530 | |||||||||||||||||
Kinder Morgan, Inc. |
|
2,369 | 48,019 | |||||||||||||||||
KNOT Offshore Partners LP(4) |
|
1,709 | 31,743 | |||||||||||||||||
ONEOK, Inc.(5) |
|
1,118 | 79,661 | |||||||||||||||||
Plains GP Holdings, L.P.(4)(6) |
|
2,205 | 48,341 | |||||||||||||||||
Plains GP Holdings, L.P. Plains AAP, L.P.(4)(6)(7)(8) |
|
690 | 15,115 | |||||||||||||||||
Rattler Midstream LP(4)(9) |
|
343 | 6,275 | |||||||||||||||||
Tallgrass Energy, LP(4)(10) |
|
1,050 | 20,564 | |||||||||||||||||
Targa Resources Corp. |
|
1,053 | 38,043 | |||||||||||||||||
The Williams Companies, Inc. |
|
3,122 | 73,686 | |||||||||||||||||
|
|
|||||||||||||||||||
446,496 | ||||||||||||||||||||
|
|
|||||||||||||||||||
Midstream MLPs(2)(11) 36.0% |
||||||||||||||||||||
BP Midstream Partners LP |
|
342 | 5,079 | |||||||||||||||||
Cheniere Energy Partners, L.P. |
|
178 | 7,780 | |||||||||||||||||
Crestwood Equity Partners LP |
|
243 | 8,881 | |||||||||||||||||
DCP Midstream, LP |
|
451 | 10,975 | |||||||||||||||||
Energy Transfer LP |
|
2,588 | 35,223 | |||||||||||||||||
Enterprise Products Partners L.P. |
|
1,532 | 43,690 | |||||||||||||||||
EQM Midstream Partners, LP Convertible Preferred Units(7)(12)(13) |
|
205 | 8,885 | |||||||||||||||||
Global Partners LP |
|
450 | 8,472 | |||||||||||||||||
Hess Midstream Partners LP |
|
50 | 949 | |||||||||||||||||
Magellan Midstream Partners, L.P. |
|
354 | 23,611 | |||||||||||||||||
MPLX LP |
|
625 | 17,444 | |||||||||||||||||
Phillips 66 Partners LP |
|
263 | 14,471 | |||||||||||||||||
Shell Midstream Partners, L.P. |
519 | 9,974 | ||||||||||||||||||
TC PipeLines, LP |
|
21 | 830 | |||||||||||||||||
Western Midstream Partners, LP |
|
511 | 11,767 | |||||||||||||||||
|
|
|||||||||||||||||||
208,031 | ||||||||||||||||||||
|
|
|||||||||||||||||||
Other Energy Companies 4.3% |
||||||||||||||||||||
Atlantica Yield plc |
|
483 | 11,484 | |||||||||||||||||
Phillips 66 |
|
30 | 2,939 | |||||||||||||||||
Sempra Energy |
|
35 | 4,957 | |||||||||||||||||
Viper Energy Partners LP |
|
198 | 5,727 | |||||||||||||||||
|
|
|||||||||||||||||||
25,107 | ||||||||||||||||||||
|
|
|||||||||||||||||||
Total United States (Cost $691,804) |
|
679,634 | ||||||||||||||||||
|
|
See accompanying notes to financial statements.
KAYNE ANDERSON MIDSTREAM/ENERGY FUND, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2019
(amounts in 000s, except number of option contracts)
(UNAUDITED)
Description |
No. of Shares/Units |
Value | ||||||||||||||||||
Canada 25.9% |
||||||||||||||||||||
Midstream Companies(2) 22.6% |
||||||||||||||||||||
Enbridge Inc. |
|
1,020 | $ | 34,120 | ||||||||||||||||
Keyera Corp. |
|
397 | 9,569 | |||||||||||||||||
Pembina Pipeline Corporation |
|
1,172 | 42,985 | |||||||||||||||||
TC Energy Corporation(5) |
|
863 | 44,200 | |||||||||||||||||
|
|
|||||||||||||||||||
130,874 | ||||||||||||||||||||
|
|
|||||||||||||||||||
Other Energy Company 3.3% |
||||||||||||||||||||
Brookfield Renewable Partners L.P. |
|
420 | 15,726 | |||||||||||||||||
Jupiter Resources Inc.(7)(12)(14) |
|
1,229 | 3,379 | |||||||||||||||||
|
|
|||||||||||||||||||
19,105 | ||||||||||||||||||||
|
|
|||||||||||||||||||
Total Canada (Cost $144,628) |
|
149,979 | ||||||||||||||||||
|
|
|||||||||||||||||||
Total Equity Investments (Cost $836,432) |
|
829,613 | ||||||||||||||||||
|
|
|||||||||||||||||||
Interest Rate |
Maturity Date |
Principal Amount |
||||||||||||||||||
Debt Instruments 2.4% |
||||||||||||||||||||
United States 2.4% |
||||||||||||||||||||
Upstream 1.4% |
||||||||||||||||||||
Ascent Resources Utica Holdings, LLC(7) |
|
10.000 | % | 4/1/22 | $ | 3,600 | 3,645 | |||||||||||||
Ascent Resources Utica Holdings, LLC(7) |
|
7.000 | 11/1/26 | 5,000 | 4,180 | |||||||||||||||
|
|
|||||||||||||||||||
7,825 | ||||||||||||||||||||
|
|
|||||||||||||||||||
Midstream Company(2) 1.0% |
||||||||||||||||||||
Antero Midstream Corporation(7) |
|
5.750 | 3/1/27 | 500 | 460 | |||||||||||||||
Antero Midstream Corporation(7) |
|
5.750 | 1/15/28 | 3,920 | 3,577 | |||||||||||||||
Epic Crude Services, LP(7) |
|
(15) | 2/21/26 | 2,000 | 1,935 | |||||||||||||||
|
|
|||||||||||||||||||
5,972 | ||||||||||||||||||||
|
|
|||||||||||||||||||
Total Debt Investments (Cost $13,439) |
|
13,797 | ||||||||||||||||||
|
|
|||||||||||||||||||
Total Long-Term Investments (Cost $849,871) |
|
843,410 | ||||||||||||||||||
|
|
|||||||||||||||||||
No. of Shares/Units |
||||||||||||||||||||
Short-Term Investment Money Market Fund 1.7% |
|
|||||||||||||||||||
JPMorgan 100% U.S. Treasury Securities Money Market Fund Capital |
|
9,687 | 9,687 | |||||||||||||||||
|
|
|||||||||||||||||||
Total Investments 147.5% (Cost $859,558) |
|
853,097 | ||||||||||||||||||
|
|
|||||||||||||||||||
Strike Price |
Expiration Date |
No. of Contracts |
Notional Amount(17) |
|||||||||||||||||
Liabilities |
||||||||||||||||||||
Call Option Contracts Written(14) |
||||||||||||||||||||
United States |
||||||||||||||||||||
Midstream Company |
||||||||||||||||||||
ONEOK, Inc. (Premiums Received $43) |
$ | 72.50 | 9/20/19 | 500 | $ | 3,564 | (42 | ) | ||||||||||||
|
|
See accompanying notes to financial statements.
KAYNE ANDERSON MIDSTREAM/ENERGY FUND, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2019
(amounts in 000s, except number of option contracts)
(UNAUDITED)
Description |
Strike Price |
Expiration Date |
No. of Contracts |
Notional Amount(19) |
Value | |||||||||||||||
Canada |
||||||||||||||||||||
Midstream Company |
||||||||||||||||||||
TC Energy Corporation (Premiums Received $53) |
$ | 50.00 | 9/20/19 | 750 | $ | 3,843 | $ | (135 | ) | |||||||||||
|
|
|||||||||||||||||||
Total Call Option Contracts Written (Premiums Received $96) |
|
(177 | ) | |||||||||||||||||
|
|
|||||||||||||||||||
Debt |
|
(200,923 | ) | |||||||||||||||||
Mandatory Redeemable Preferred Stock at Liquidation Value |
|
(75,000 | ) | |||||||||||||||||
Other Assets in Excess of Other Liabilities |
|
1,494 | ||||||||||||||||||
|
|
|||||||||||||||||||
Net Assets Applicable to Common Stockholders |
|
$ | 578,491 | |||||||||||||||||
|
|
(1) | Unless otherwise noted, equity investments are common units/common shares. |
(2) | Refer to the Glossary of Key Terms for the definitions of Midstream Companies and Midstream MLPs. |
(3) | Series C Preferred Units are cumulative redeemable perpetual units. Distributions on the Series C Preferred Units are payable at a rate of 6.0% per annum through December 15, 2022. On and after December 15, 2022, the rate will be based on three-month LIBOR, determined quarterly, plus 4.11%. |
(4) | This company is structured like an MLP, but is not treated as a publicly-traded partnership for regulated investment company (RIC) qualification purposes. |
(5) | Security or a portion thereof is segregated as collateral on option contracts written. |
(6) | The Fund believes that it is an affiliate of Plains AAP, L.P. (PAGP-AAP) and Plains GP Holdings, L.P. (PAGP). See Note 5 Agreements and Affiliations. |
(7) | The Funds ability to sell this security is subject to certain legal or contractual restrictions. As of August 31, 2019, the aggregate value of restricted securities held by the Fund was $41,176 (4.8% of total assets), which included $28,912 of Level 2 securities and $12,264 of Level 3 securities. See Note 7 Restricted Securities. |
(8) | The Funds ownership of PAGP-AAP is exchangeable on a one-for-one basis into either PAGP shares or Plains All American Pipeline, L.P. (PAA) units at the Funds option. The Fund values its PAGP-AAP investment on an as exchanged basis based on the higher public market value of either PAGP or PAA. As of August 31, 2019, the Funds PAGP-AAP investment is valued at PAGPs closing price. See Notes 3 and 7 in Notes to Financial Statements. |
(9) | Security is not currently paying cash distributions but is expected to pay cash distributions within the next 12 months. |
(10) | On August 27, 2019, Tallgrass Energy, LP (TGE) announced that it received a non-binding proposal from Blackstone Infrastructure Partners (Blackstone) to acquire all of the outstanding Class A shares not already owned by Blackstone for $19.50 per share in cash. TGE has formed a conflicts committee to consider the proposal. |
(11) | Unless otherwise noted, securities are treated as a publicly-traded partnership for RIC qualification purposes. To qualify as a RIC for tax purposes, the Fund may directly invest up to 25% of its total assets in equity and debt securities of entities treated as publicly-traded partnerships. The Fund had 24.3% of its total assets invested in publicly-traded partnerships at August 31, 2019. It is the Funds intention to be treated as a RIC for tax purposes. |
(12) | Fair valued security. See Notes 2 and 3 in Notes to Financial Statements. |
(13) | On April 10, 2019, the Fund purchased, in a private placement, Series A Convertible Preferred Units (EQM Convertible Preferred Units) from EQM Midstream Partners, LP (EQM). The EQM |
See accompanying notes to financial statements.
KAYNE ANDERSON MIDSTREAM/ENERGY FUND, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2019
(amounts in 000s, except number of option contracts)
(UNAUDITED)
Convertible Preferred Units are senior to the common units in terms of liquidation preference and priority of distributions and pay a quarterly distribution of $1.04 per unit (subject to an upward adjustment after five years). The EQM Convertible Preferred Units have a one-year lock-up through April 10, 2020. Holders of the EQM Convertible Preferred Units may convert on a one-for-one basis to EQM common units any time after April 10, 2021. |
(14) | Security is non-income producing. |
(15) | Floating rate first lien senior secured term loan. Security pays interest at a rate of LIBOR + 500 basis points with a 1.00% LIBOR floor (7.04% as of August 31, 2019). |
(16) | The rate indicated is the yield as of August 31, 2019. |
(17) | The notional amount of call option contracts written is the product of (a) the number of contracts written, (b) 100 (each contract entitles the option holder to 100 units/shares) and (c) the market price of the underlying security as of August 31, 2019. |
See accompanying notes to financial statements.