Kayne Anderson Midstream/Energy Fund Announces Distribution of $0.30 per Share for Q2 2017
June 30 2017 - 6:20PM
Business Wire
Kayne Anderson Midstream/Energy Fund, Inc. (the “Fund”)
(NYSE:KMF) announced today its quarterly distribution of $0.30 per
share for the quarter ended May 31, 2017.
During the first quarter, Enbridge Energy Management, L.L.C.,
which is the Fund’s fourth largest position, announced a 40%
reduction in its quarterly distribution. This distribution
reduction as well as the cumulative impact of an on-going trend of
MLPs (or GPs) with lower yields acquiring MLPs with higher yields
over the last two years has negatively impacted the Fund’s net
distributable income. As a result of these events, the Fund is
decreasing its distribution from $0.35 per share last quarter to
$0.30 per share this quarter.
“We believe it is prudent to reduce the Fund’s distribution to a
level that is below the Fund’s expected net distributable income.
Currently, valuations for MLPs and Midstream Corporations are
attractive, and we believe a reduction in KMF’s distribution best
positions the Fund to generate attractive returns for
stockholders,” said Kevin McCarthy, the CEO of the Fund.
The distribution will be payable on July 14, 2017 to common
stockholders of record on July 10, 2017, with an ex-dividend date
of July 6, 2017. The Fund estimates that 75% of this distribution
will be treated as a return of capital for tax purposes. This
estimate is based on the Fund’s anticipated earnings and profits
for fiscal 2017 (including gains and losses on sales of securities
during the six months ended May 31, 2017) and its accumulated
earnings and profits as of May 31, 2017. The Fund’s estimate does
not include a projection of gains or losses on the sale of
securities for the remainder of fiscal 2017. The final
determination of the tax character of the distribution will be made
in early 2018 when the Fund can determine its actual earnings and
profits for the full year (including gains and losses on the sale
of securities for the remainder of fiscal 2017) and may differ
substantially from this preliminary information.
Kayne Anderson Midstream/Energy Fund, Inc. is a non-diversified,
closed-end management investment company registered under the
Investment Company Act of 1940, whose common stock is traded on the
New York Stock Exchange. The Fund’s investment objective is to
provide a high level of total return with an emphasis on making
quarterly cash distributions to its stockholders by investing at
least 80% of its total assets in securities of companies in the
Midstream/Energy Sector, consisting of: (a) Midstream Master
Limited Partnerships (“MLPs”), (b) Midstream Companies, (c) Other
MLPs and (d) Other Energy Companies. The Fund anticipates that the
majority of its investments will consist of investments in
Midstream MLPs and Midstream Companies. See Glossary of Key Terms
on page ii of the Prospectus for definitions of certain key
terms.
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 Fund’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 Fund’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 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170630005824/en/
KA Fund Advisors, LLCMonique Vo,
877-657-3863http://www.kaynefunds.com
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