HOUSTON, Feb. 7, 2017 /PRNewswire/ -- Salient
Midstream & MLP Fund (the "Fund") (NYSE: SMM) today announced a
dividend of $0.244 for the first
quarter ending February 28, 2017.
At the close of business on January 31,
2017, the Fund's total assets were $369.4 million and the Net Asset Value (NAV) per
share was $14.74. On January 31, 2017, the closing share price of the
Fund was $13.57, which was trading at
a 7.9% discount to the NAV.1 For the month ending
January 31, 2017, the Fund's yield
was 7.2%2 while the Fund's NAV and market price total
returns were -2.4% and -0.1%,2 respectively, compared to
4.9% for the Alerian MLP Index.3
The Fund's first quarter dividend will be payable on
February 28, 2017 to common
stockholders of record on February 17,
2017. It is anticipated that this dividend will be a
combination of return of capital and ordinary income for tax
purposes. The final tax status of the dividend may differ
substantially from this preliminary information, and the final
determination of such amount will be made in early 2018 when the
Fund can determine its earnings and profits for the 2017 fiscal
year.
The Fund's quarterly dividends per share over the past year are
shown below:4
|
Amount
|
Payable
Date
|
Ex-Date
|
Record
Date
|
|
$0.244
|
February 28,
2017
|
February 15,
2017
|
February 17,
2017
|
|
$0.244
|
November 30,
2016
|
November 16,
2016
|
November 18,
2016
|
|
$0.244
|
August 31,
2016
|
August 17,
2016
|
August 19,
2016
|
|
$0.325
|
May 31,
2016
|
May 18,
2016
|
May 20,
2016
|
|
$0.325
|
February 29,
2016
|
February 17,
2016
|
February 19,
2016
|
|
Past performance is
not indicative of future results.
|
|
The Fund
distributions are comprised of distributable cash flow generated
from its portfolio investments plus any realized capital
gains. The tax characteristics of the historical distributions
can be found on
www.salientpartners.com/strategies/salient-midstream-mlp-fund/
|
The Fund's Top 10 holdings as of January
31, 2017 are shown below:5
|
Company
Name
|
Sector
|
Percent of
Gross
Assets
|
|
ONEOK,
Inc.
|
MLP General
Partner
|
8.4%
|
|
Plains GP Holdings
LP
|
MLP
Affiliate
|
7.6%
|
|
Targa Resources
Corp.
|
Midstream
Company
|
7.2%
|
|
EMG Utica I Offshore
Co-Investment, LP
|
MLP
Affiliate
|
6.0%
|
|
Enbridge Energy
Management LLC
|
MLP
Affiliate
|
5.7%
|
|
SemGroup Corp., Class
A
|
Midstream
Company
|
5.3%
|
|
Williams Partners
LP
|
MLP
|
4.9%
|
|
KMI 9.75% 26 OCT 2018
A - PFD
|
Midstream
Company
|
4.6%
|
|
Energy Transfer
Partners LP
|
MLP
|
4.6%
|
|
Energy Transfer
Equity LP
|
MLP
|
4.5%
|
|
Total
|
|
58.8%
|
|
|
|
|
For illustrative
purposes only. Current and future holdings are subject to change
and risk. Figures are based on the Fund's gross assets. Source:
Salient Capital Advisors, LLC, January 31, 2017.
|
The Fund's unaudited balance sheet as of January 31, 2017 is shown below:
|
Salient Midstream
& MLP Fund
|
|
Balance
Sheet
|
|
January 31,
2017
|
|
(Unaudited)
|
|
|
|
Assets
|
(in
millions)
|
|
Investments
|
$367.10
|
|
Other
Assets
|
1.7
|
|
Cash and Cash
Equivalents
|
0.6
|
|
Total
Assets
|
369.4
|
|
|
|
Liabilities
|
|
|
Line of Credit
Payable
|
104.2
|
|
Deferred Tax
Liability
|
3.1
|
|
Other
Liabilities
|
0.9
|
|
Total
Liabilities
|
108.2
|
|
Net
Assets
|
$261.20
|
|
|
|
The Fund had 17.7
million common shares outstanding as of January 31,
2017.
|
Past performance is not indicative of future
results.
Salient Midstream & MLP Fund is a Delaware statutory trust registered as a
non-diversified, closed-end management investment company under the
Investment Company Act of 1940, as amended. The Fund's investment
objective is to provide a high level of total return with an
emphasis on making quarterly cash distributions to its common
shareholders. The Fund seeks to achieve that 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 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 future results to differ
significantly from the Fund's 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; leverage risk; valuation
risk; interest rate risk; tax risk; the volume of sales and
purchase of shares; the continuation of investment advisory,
administration and other service arrangements; 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 is no assurance that
the Fund's investment objective will be attained.
About Salient
Salient Partners, L.P.
("Salient") is a diversified asset management firm and leading
provider of real asset and alternative investment strategies for
institutional investors and investment advisors. The firm offers a
comprehensive suite of single-asset and multi-asset solutions
designed to serve as powerful building blocks for smarter, more
efficient portfolios. Strategies are offered in the form of open-
and closed-end funds and separately managed accounts. Salient
provides unconventional market insights in its highly acclaimed
Epsilon Theory newsletter and Salient blog. Learn more about
Salient at www.salientpartners.com and follow us on LinkedIn and
Twitter. Salient was founded in 2002 and has offices in
Houston and San Francisco.
FOR SHAREHOLDER INQUIRIES:
Salient Capital Advisors,
LLC
info@salientpartners.com
800-994-0755
FOR MEDIA INQUIRIES:
Catherine P. Jones
Polisi Jones Communications
cjones@polisijones.com
917-330-8934
____________________
|
1 Past
performance is not indicative of future results. Current
performance may be higher or lower than the data shown. The data
shown are unaudited. Returns do not reflect the deduction of taxes
that shareholders may have to pay on Fund distributions or upon the
sale of Fund shares.
|
|
|
2 Source:
Salient Capital Advisors, LLC. The rate is annualized based on
the latest dividend paid by the Fund divided by the January 31,
2017 stock price. Past performance is not indicative of future
results.
|
|
|
3 Source:
Salient Capital Advisors, LLC and Alerian, January 31, 2017. Past
performance is not indicative of future results. No investment
strategy can guarantee performance results. 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. "Alerian MLP Index",
"Alerian MLP Total Return Index", "AMZ" and "AMZX" are trademarks
of Alerian and their use is granted under a license from
Alerian.
|
|
|
4 The
amount of dividends may vary depending on a number of factors. As
portfolio and market conditions change, the rate of distributions
on Fund common shares could change. A portion of the Fund's returns
may be comprised of ordinary income, return of capital and net
realized capital gains. The Fund will determine the tax
characteristics of all Fund dividends after the end of the calendar
year and will provide shareholders such information at that
time.
|
|
|
5 Fund
shares do not represent a deposit or obligation of, and are not
guaranteed or endorsed by, any bank or other insured depository
institution, and are not federally insured by the Federal Deposit
Insurance Corporation, the Federal Reserve Board or any other
government agency. Data are based on total market value of Fund
investments unless otherwise indicated. The data provided are for
informational purposes only and are not intended for trading
purposes.
|
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SOURCE Salient Partners, L.P.