HOUSTON, Aug. 7, 2020 /PRNewswire/ -- Salient
Midstream & MLP Fund (the "Fund") (NYSE: SMM) today announced a
dividend of $0.06 per share for the
third quarter ending August 31,
2020.
At the close of business on July 31,
2020, the Fund's total assets were $129.2 million and the Net Asset Value (NAV) per
share was $5.50. On July 31, 2020, the closing share price of the
Fund was $3.97, which was trading at
a 27.8% discount to the NAV.1 For the month ending
July 31, 2020 the Fund's NAV and
market price total returns were -0.4% and -3.9%, respectively,
compared to -0.4% for the Alerian Midstream Energy Select
Index (AMEI).2
The Fund's third quarter dividend will be payable on
August 28, 2020 to common
stockholders of record on August 18,
2020. 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 2021 when the
Fund can determine its earnings and profits for the 2020 fiscal
year.
The Fund's quarterly dividends per share over the past year are
shown below:3
Amount
|
Payable
Date
|
Ex-Date
|
Record
Date
|
$0.060
|
August 28,
2020
|
August 17,
2020
|
August 18,
2020
|
$0.060
|
May 28,
2020
|
May 15,
2020
|
May 18,
2020
|
$0.171
|
February 27,
2020
|
February 18,
2020
|
February 19,
2020
|
$0.171
|
November 27,
2019
|
November 15,
2019
|
November 18,
2019
|
$0.171
|
August 29,
2019
|
August 15,
2019
|
August 16,
2019
|
|
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 ten holdings as of July
31, 2020 are shown below:4
No.
|
Symbol
|
Name
|
Country
|
Asset
Type
|
% of Gross
Assets
|
1
|
-
|
EMG Utica | Offshore
Co-Investment LP
|
United
States
|
Midstream
Company
|
13.0%
|
2
|
ENB
|
Enbridge,
Inc.
|
Canada
|
Midstream
Company
|
7.6%
|
3
|
WMB
|
The Williams
Companies, Inc.
|
United
States
|
Midstream
Company
|
6.4%
|
4
|
EPD
|
Enterprise Products
Partners, LP
|
United
States
|
MLP
|
5.5%
|
5
|
ETRN
|
Equitrans Midstream
Corp.
|
United
States
|
Midstream
Company
|
5.4%
|
6
|
PAGP
|
Plains GP Holdings,
LP
|
United
States
|
MLP
Affiliate
|
4.7%
|
7
|
PPL CN
|
Pembina Pipeline
Corp.
|
Canada
|
Midstream
Company
|
4.7%
|
8
|
TRP
|
TC Energy
Corp.
|
Canada
|
Midstream
Company
|
4.7%
|
9
|
KEY CN
|
Keyera
Corp.
|
Canada
|
Midstream
Company
|
4.0%
|
10
|
ET
|
Energy Transfer,
LP
|
United
States
|
MLP
|
3.9%
|
|
|
|
|
|
59.9%
|
|
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, July 31, 2020.
|
The Fund's unaudited balance sheet as of July 31, 2020 is shown below:
Salient Midstream
& MLP Fund
|
Balance
Sheet
|
July 31,
2020
|
(Unaudited)
|
|
|
Assets
|
(in
millions)
|
Investments
|
$124.7
|
Other
Assets
|
3.6
|
Cash and Cash
Equivalents
|
0.9
|
Total
Assets
|
$129.2
|
|
|
Liabilities
|
|
Line of Credit
Payable
|
$31.0
|
Other
Liabilities
|
0.8
|
Total
Liabilities
|
$31.8
|
Net
Assets
|
$97.4
|
|
|
The Fund had 17.7
million common shares outstanding as of July 31, 2020.
|
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
real asset and alternative 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 build smarter, more efficient
portfolios. Strategies are offered in the form of open- and
closed-end funds and separately managed accounts. Salient was
founded in 2002 and has offices in Houston and San
Francisco. Learn more about Salient at
www.salientpartners.com.
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 and
Alerian, July 31, 2020. 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 Midstream Energy
Select Index" and "AMEI" are trademarks of Alerian and their use is
granted under a license from Alerian.
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 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.