HOUSTON, May 6, 2015 /PRNewswire/ -- Salient
Midstream & MLP Fund (the "Fund") (NYSE: SMM) today announced
it has increased its dividend by 4.0% year-over-year for the second
quarter ending April 30, 2015. This
is the 11th consecutive quarter that the Fund has increased its
quarterly dividend.
At the close of business on April 30,
2015, the Fund's net assets were $464.3 million and the NAV per share was
$26.20. On April 30, 2015, the closing share price of the
Fund was $23.24, which was trading at
an 11.3% discount to the NAV.[1] For the month ending April 30, 2015, the Fund's NAV and market price
total returns were 5.1% and 7.25%, respectively and the Fund's
yield was 6.3%.[2]
The Fund's second quarter dividend for the quarter ending
April 30, 2015 was $0.367 per share and will be payable on
May 29, 2015 to common stockholders
of record on May 21, 2015. 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 2016 when the Fund can determine its earnings and
profits for the 2015 fiscal year.
The Fund's quarterly dividends per share over the past year as
of April 30, 2015 are shown
below:[3]
AMOUNT
|
QUARTERLY GROWTH
RATE (%)
|
PAYABLE
DATE
|
EX-DATE
|
RECORD
DATE
|
$0.367
|
0.3%
|
May 29,
2015
|
May 19,
2015
|
May 21,
2015
|
$0.366
|
0.3%
|
February 27,
2015
|
February 17,
2015
|
February 19,
2015
|
$0.365
|
2.2%
|
November 28,
2014
|
November 19,
2014
|
November 21,
2014
|
$0.357
|
1.1%
|
August 29,
2014
|
August 15,
2014
|
August 19,
2014
|
$0.353
|
0.9%
|
May 30,
2014
|
May 19,
2014
|
May 21,
2014
|
Past performance is
not indicative of future results.
The Fund's dividends
are comprised of distributable cash flow generated from its
portfolio investments plus any realized capital gains.
The tax
characteristics of the historical dividends can be found on
http://www.salientpartners.com/funds/mlp-midstream.html
|
The Fund's investments allocation is shown in the pie chart
below as of April 30,
2015.
For illustrative purposes only.
Source: Salient Capital Advisors, LLC, April
30, 2015.
The Fund's Top 10 consolidated holdings are shown below, as of
April 30, 2015:[4]
Ticker
|
Company
Name
|
Sector
|
Percent
of
Consolidated
Gross
Assets
|
EPD
|
Enterprise Products
Partners L.P.*
|
MLP
|
8.5%
|
ETE
|
Energy Transfer
Equity, L.P.*
|
MLP
|
7.5%
|
WMB
|
The Williams
Companies, Inc.
|
Midstream
Company
|
6.1%
|
KMI
|
Kinder Morgan,
Inc.
|
Midstream
Company
|
5.5%
|
MIC
|
Macquarie
Infrastructure Company LLC
|
Other
|
4.0%
|
EEQ
|
Enbridge Energy
Management, L.L.C.
|
MLP
Affiliate
|
4.0%
|
MMP
|
Magellan Midstream
Partners, L.P.*
|
MLP
|
3.9%
|
NGL
|
NGL Energy Partners
LP
|
MLP
|
3.2%
|
TRGP
|
Targa Resources
Corp.
|
Midstream
Company
|
3.1%
|
PAGP
|
Plains GP Holdings
LP
|
Midstream
Company
|
2.8%
|
Total
|
|
|
48.6%
|
|
|
|
|
|
For illustrative purposes only.
*Held indirectly through the wholly owned C-Corporation, Salient
Midstream & MLP Fund, Inc.
Current and future holdings are subject to change and risk.
Source: Salient Capital Advisors, LLC, April
2015.
The Fund's consolidated unaudited balance sheet as of
April 30, 2015, is shown below:
Salient Midstream
& MLP Fund
|
|
Consolidated
Balance Sheet
|
|
April 30,
2015
|
|
(Unaudited)
|
|
|
|
|
Assets
|
(in
millions)
|
|
Investments1
|
$671.8
|
|
Cash and Cash
Equivalents
|
8.6
|
|
Receivable for
Investments Sold
Hedging and Other
Assets
|
11.1
2.7
|
|
Total
Assets
|
694.2
|
|
Liabilities
|
|
|
Line of Credit
Payable2
|
196.8
|
|
Payable for
Investments Purchased
|
7.8
|
|
Derivatives – Short
positions
|
0.3
|
|
Deferred Tax
Liability
|
22.7
|
|
Other
Liabilities
|
2.3
|
|
Total
Liabilities
|
229.9
|
|
Net
Assets
|
$464.3
|
|
The Fund had 17.7 million common shares outstanding as of
April 30, 2015.
1 Investments include the gross underlying
investments within the Salient Midstream & MLP Fund, Inc.'s
(C-Corporation) of $177.8
million.
2 The line of credit payable includes the
C-Corporation's $18.8M outstanding
line as of April 30, 2015.
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 Partners, L.P.
Salient Partners is an
innovative asset management firm headquartered in Houston, Texas, that provides alternative
investment strategies to institutional investors and financial
advisors. The firm offers a broad selection of equity, fixed
income, risk-balancing, asset-allocation, energy and commodity,
real estate, hedge fund and private equity strategies in the form
of mutual funds, separately managed accounts and private funds.
Salient's strategies aim to eliminate unrewarded risk, reduce
investing costs and focus on fundamental drivers of returns. A core
element of Salient's platform is its thought leadership and ongoing
education of financial advisors and investors, which the firm
provides via weekly market observations, monthly webcasts and its
nationally-recognized Epsilon Theory newsletter. For more
information about Salient, visit www.salientpartners.com. Follow
Salient on LinkedIn or Twitter.
[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 latest dividend paid by the Fund divided by the
April 30, 2015 stock price. Past
performance is not indicative of future results.
[3] 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.
[4] 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 governmental 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.