SALIENT MIDSTREAM & MLP FUND ANNOUNCES UNAUDITED NET ASSET VALUE AS OF FEBRUARY 28, 2022

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HOUSTON, March 7, 2022 /PRNewswire/ — Salient Midstream & MLP Fund (the “Fund”) (NYSE: SMM) today provided a summary of its unaudited statement of assets and liabilities and announced the net asset value (NAV) at February 28, 2022.

At February 28, 2022the total assets of the Fund were $206.5 million and the net asset value per share was $8.65. On February 28, 2022, the closing price of the shares of the Fund was $7.36which was trading at a 14.9% discount to net asset value.1 The fund’s net asset value and total market price returns for the month of February were 7.4% and 5.4%, respectively, compared to 4.6% for the Alerian Midstream Energy Select Total Return Index ( AMEIX).2

February Market Commentary
The start of the month saw the energy infrastructure industry drift higher with strong earnings results while the second half of the month saw crude oil prices rise significantly due to Russian aggression on Ukraine. For the remainder of 2022, we remain positive as 1) free cash flow after dividends has the potential to increase year over year for the energy infrastructure sector, 2) hydrocarbon volumes may increase to as drilling activity improves and 3) capital allocation remains focused on reducing debt and returning excess cash to investors through buybacks and potential dividend increases.3

Crude oil, as measured by the benchmark West Texas Intermediate (WTI), rose 9.6% for the month of February and is up more than 32% year-to-date (YTD) until the end of February.4 Crude oil prices have risen sharply due to the war in Ukraine. Russia produces ~10 million barrels per day (mmbbls/d) of crude oil, around 10% of global supply and is the second largest oil exporter after Saudi Arabia.5 Markets fear that crude oil supply could be disrupted, which could cause crude oil prices to soar well above current levels. While sanctions have so far avoided Russian crude oil, sanctioning Russia energy exports would likely lead to a further spike in world crude oil and natural gas prices. Even if crude oil sanctions are not implemented, we expect a geopolitical risk premium to remain in crude oil prices for the foreseeable future. Do things with Russia and Ukraine normalize, we consider crude oil prices in the $70$80 per barrel as positive for long-term investment in the US energy industry. While the Ukrainian war will have an unknown effect on crude oil supply, fundamentals remain strong as the global economy continues to reopen from COVID-19. Commodity analysts continue to see a tight supply environment for crude oil and natural gas in 2022 as energy demand appears to be trending above the pre-COVID-19 demand peak.6 We believe current commodity prices are sufficient to drive U.S. hydrocarbon volume growth in 2022, with production increases already showing in recent Energy Information Administration (EIA) data.7

The Fund’s top 10 holdings as of February 28, 2022 are shown below:8







No.

symbol

name

The country

Asset type

% of gross
Assets

1

HEY

Energy transfer, PL

United States

MLP

9.2%

2

TRGP

Targa Resources Corp.

United States

C-Corp

7.5%

3

LNG

Cheniere Energy Inc.

United States

C-Corp

7.3%

4

EMG Utica | Offshore Co-Investment LP

United States

C-Corp

6.9%

5

IN B

Enbridge Inc.

Canada

C-Corp

6.2%

6

MPLX

MPLX, LP

United States

MLP

5.8%

7

PPL CN

Pembina Pipeline Corp.

United States

C-Corp

5.3%

8

okay

ONEOK inc.

United States

C-Corp

4.9%

9

WMB

Williams Companies Inc.

United States

C-Corp

4.8%

ten

PAGP

Plains GP Holdings, LP

Canada

C-Corp

4.5%






62.5%

For illustrative purposes only. Current and future holdings are subject to change and risk. Figures are based on the Fund’s gross assets excluding cash. Source: Salient Capital Advisors, LLC, February 28, 2022.

The unaudited balance sheet of the Fund as at February 28, 2022 is shown below:


Salient Midstream & MLP Fund

Balance sheet

February 28, 2022

(Unaudited)



Assets

(in millions)

Investments

$205.1

other assets

0.4

Cash and cash equivalents

1.0

Total assets

$206.5



Passives


Line of credit payable

$51.7

Other liabilities

1.6

Total responsibilities

$53.3

Net assets

$153.2



The Fund had 17.7 million common shares outstanding as of February 28, 2022.

Past performance does not represent future results.

The Salient Midstream & MLP fund is a Delaware statutory trust registered as a non-diversified closed-end investment company under the Investment Companies Act 1940, as amended. The Fund’s investment objective is to provide a high total return with an emphasis on making quarterly cash distributions to its common shareholders. The Fund seeks to achieve this objective by investing at least 80% of its total assets in securities of MLPs and midstream companies. There can be no assurance that the Fund will achieve its investment objective.

This press release contains “forward-looking statements” as defined by United States federal securities laws. Generally, the words “believe”, “expect”, “intend”, “estimate”, “anticipate”, “project”, “will” and similar expressions identify forward-looking statements, which are not generally not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual future results to differ materially from the Fund’s current expectations or projections set forth in the forward-looking statements. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal developments; leverage risk; valuation risk; interest rate risk; tax risk; the volume of sales and purchases of shares; the continuation of investment advisory, administrative and other services agreements; and other risks discussed in the Fund’s filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There can be no assurance that the Fund’s investment objective will be achieved.

About Saillant
Salient Partners, LP (“Salient”) is a real and alternative asset investment firm that offers a suite of strategies focused on energy and infrastructure, real estate and tactical alternative investments. Institutions and investment advisors turn to Salient to create smarter, more efficient portfolios. Strategies are offered as open-end and closed-end funds and separately managed accounts. Salient was founded in 2002 and has offices in Houston and San Francisco. To learn more about Salient, visit www.salientpartners.com.

1 Past performance does not represent future results. Actual performance may be higher or lower than displayed data. The data presented is unaudited. Returns do not reflect the deduction of taxes that shareholders may have to pay on distributions from the Fund or on the sale of shares of the Fund.
2 Source: Salient Capital Advisors, LLC and Alerian, February 28, 2022. “Alerian Midstream Energy Select Index”, “Alerian Midstream Energy Select Total Return Index”, “AMEI” and “AMEIX” are trademarks of Alerian and their use is under license from Alerian. Past performance is not indicative of the future performance of the index. The index reflects the reinvestment of dividends and income and does not reflect deductions for fees, expenses or taxes. The index is unmanaged and not available for direct investment. The Alerian Midstream Energy Select Total Return Index (AMEIX) is a composite total return index of North American midstream energy infrastructure companies that are engaged in activities involving energy commodities. The capped, float-adjusted, capitalization-weighted index is disseminated in real time on a price-yield basis. The date of creation of the AMEIX is April 1, 2013.
3 Free cash flow after dividends represents the cash a company generates after accounting for cash outflows to support operations and maintain its fixed assets Hydrocarbon a compound of hydrogen and carbon, such as one of those which are the main constituents of petroleum and natural gas. Share buybacks are when a company buys its own outstanding shares to reduce the number of shares available on the open market.
4 Source: Bloomberg, February 2022. West Texas Intermediate (WTI) is a light, sweet crude oil that is one of the world’s leading oil benchmarks. Past performance does not represent future results.
5 Source: International Energy Agency, February 2022.
6 Source: Piper Sandler, March 2022.
7 The U.S. Energy Information Administration (EIA) is a principal agency of the U.S. federal statistical system responsible for the collection, analysis, and dissemination of energy information to promote sound policymaking , efficient markets and public understanding of energy and its interaction with the economy and the environment. .
8 Fund Units do not represent a deposit or obligation of any bank or other insured deposit-taking institution, and are not guaranteed or endorsed by any bank or other insured deposit-taking institution, and are not insured in federal level by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Data is based on the total market value of the Fund’s investments, unless otherwise stated. The data provided is for informational purposes only and is not intended for commercial purposes.

SOURCE Salient Partners, LP


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