Kayne Anderson MLP Investment Company Announces Distribution of $0.55 per Share for Q4 2016 and Provides Guidance for Q1 2017
December 15 2016 - 5:25PM
Business Wire
Kayne Anderson MLP Investment Company (the “Company”) (NYSE:KYN)
announced today its quarterly distribution of $0.55 per share for
the quarter ended November 30, 2016. The distribution will be
payable on January 13, 2017 to common stockholders of record on
January 6, 2017, with an ex-dividend date of January 4, 2017.
“Over the past nine months, the health of the MLP market has
improved dramatically,” said Kevin McCarthy, the CEO of the
Company. “Commodity prices have improved substantially, the capital
markets have re-opened, and we believe that domestic production has
bottomed and is poised for significant increases in the next 12 to
18 months. The stronger outlook for the energy industry has
resulted in higher equity prices for many MLPs and a strong
recovery in the Company’s net asset value, which has increased by
over 70% from the lows of February 2016,” said Mr. McCarthy.
“At the same time, there has been an on-going trend of MLPs (or
GPs) with lower yields acquiring MLPs with a higher yield,
including the recently announced merger of Energy Transfer
Partners, L.P. (“Energy Transfer”) with Sunoco Logistics Partners,
L.P. (“Sunoco”). The impact of these transactions has been to
significantly reduce our net distributable income over the last two
years,” noted Mr. McCarthy.
“In light of these transactions, management currently expects to
recommend a reduction of $0.07 to $0.08 per share in the quarterly
distribution for the first quarter of fiscal 2017. The actual
amount of the reduction will depend on a variety of factors,
including whether or not the Energy Transfer/Sunoco transaction
closes and whether or not any additional transactions are
announced. We believe it is prudent to reduce the Company’s
distribution to a level that is below the Company’s expected net
distributable income. MLP valuations currently are very attractive,
and we believe our recommendation best positions the Company to
generate attractive returns for stockholders during fiscal 2017,”
said Mr. McCarthy. Payment of the distribution for the first
quarter of fiscal 2017 is subject to board approval and will be
paid in April 2017.
The Company estimates that 100% of its distribution for the
quarter ended November 30, 2016 will be treated as a return of
capital for tax purposes. This estimate is based on the Company’s
anticipated earnings and profits for fiscal 2017 and its
accumulated earnings and profits as of November 30, 2016. The final
determination of the tax character of the distribution will be made
in early 2018 when the Company can determine its actual earnings
and profits for the full year (including gains and losses on the
sale of securities during fiscal 2017) and may differ substantially
from this preliminary information.
Kayne Anderson MLP Investment Company is a non-diversified,
closed-end management investment company registered under the
Investment Company Act of 1940, whose common stock is traded on the
NYSE. The Company's investment objective is to obtain a high
after-tax total return by investing at least 85% of its total
assets in energy-related master limited partnerships and their
affiliates (collectively, “MLPs”), and in other companies that, as
their principal business, operate assets used in the gathering,
transporting, processing, storing, refining, distributing, mining
or marketing natural gas, natural gas liquids (including propane),
crude oil, refined petroleum products or coal.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press
release contains "forward-looking statements" as defined under the
U.S. federal securities laws. Generally, the words "believe,"
"expect," "intend," "estimate," "anticipate," "project," "will" and
similar expressions identify forward-looking statements, which
generally are not historical in nature. Forward-looking statements
are subject to certain risks and uncertainties that could cause
actual results to differ from the Company's historical experience
and its present expectations or projections indicated in any
forward-looking statements. These risks include, but are not
limited to, changes in economic and political conditions;
regulatory and legal changes; MLP industry risk; leverage risk;
valuation risk; interest rate risk; tax risk; and other risks
discussed in the Company's filings with the SEC. You should not
place undue reliance on forward-looking statements, which speak
only as of the date they are made. The Company 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20161215006496/en/
KA Fund Advisors, LLCMonique Vo,
877-657-3863http://www.kaynefunds.com
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