NPORT-EX 1 KMFex11.htm FOR VALIDATION PURPOSES ONLY - [803563.TX]

KAYNE ANDERSON MIDSTREAM/ENERGY FUND, INC.

SCHEDULE OF INVESTMENTS

AUGUST 31, 2019

(amounts in 000’s, 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 000’s, 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
Shares, 1.95%(16) (Cost — $9,687)

 

      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 000’s, 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 Fund’s 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 Fund’s 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 Fund’s 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 Fund’s PAGP-AAP investment is valued at PAGP’s 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 Fund’s 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 000’s, 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.