Salient Midstream & MLP Fund Announces Fourth Quarter 2015 Dividend Of $0.369 Per Share And Net Asset Value As Of October 31, 2015

Nov 04, 2015, 17:12 ET from Salient Midstream & MLP Fund

HOUSTON, Nov. 4, 2015 /PRNewswire/ -- Salient Midstream & MLP Fund (the "Fund") (NYSE: SMM) today announced it has increased its dividend to $0.369 for the fourth quarter ending November 30, 2015.

At the close of business on October 31, 2015, the Fund's total consolidated assets were $443.0 million and the NAV per share was $16.77. On October 31, 2015, the closing share price of the Fund was $14.68, which was trading at a 12.5% discount to the NAV.1 For the month ending October 31, 2015, the Fund's NAV and market price total returns were 9.4% and 4.9%, respectively, and the Fund's yield was 10.0%.2

The Fund's fourth quarter dividend for the quarter ending November 30, 2015 will be payable on November 30, 2015 to common stockholders of record on November 18, 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 October 31, 2015 are shown below:3

AMOUNT

QUARTERLY GROWTH RATE (%)

PAYABLE DATE

EX-DATE

RECORD DATE

$0.369

0.3%

November 30, 2015

November 16, 2015

November 18, 2015

$0.368

0.3%

August 28, 2015

August 17, 2015

August 19, 2015

$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

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 http://www.salientpartners.com/funds/mlp-midstream.html

The Fund's investment allocation is shown in the pie chart below as of October 31, 2015.

 

The Fund's Top 10 consolidated holdings are shown below, as of October 31, 2015:4

 

Company Name

Sector

Percent of Consolidated Gross Assets

Energy Transfer Equity, L.P.*

MLP

7.6%

The Williams Companies, Inc.

General Partner

7.3%

Enbridge Energy Management, LLC

MLP Affiliate

6.0%

Kinder Morgan, Inc.

Midstream Company

5.7%

Macquarie Infrastructure Company, LLC

Other Energy & Infrastructure Company

5.5%

Magellan Midstream Partners, L.P.*

MLP

4.7%

EMG Utica I Offshore Co-Investment, L.P.

MLP Affiliate

4.6%

Enterprise Products Partners, L.P.*

MLP

3.6%

NGL Energy Partners, L.P.  

MLP

3.1%

Capital Products Partners, L.P.

Midstream Company

3.0%

Total

51.1%

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, October 31, 2015.

The Fund's consolidated unaudited balance sheet as of October 31, 2015, is shown below:

 

Salient Midstream & MLP Fund

Consolidated Balance Sheet

October 31, 2015

(Unaudited)

Assets

(in millions)

Investments1

$426.5

Receivable for Investments Sold

12.0

Other Assets

4.0

Cash and Cash Equivalents

0.5

Total Assets

443.0

Liabilities

Line of Credit Payable

131.8

Deferred tax liability

8.7

Payable for Investments Purchased

4.1

Other Liabilities

1.1

Total Liabilities

145.7

Net Assets

$297.3

The Fund had 17.7 million common shares outstanding as of October 31, 2015.

1 Investments include the gross underlying investments within the Salient Midstream & MLP Fund, Inc.'s (C-Corporation) of $87.2 million.

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 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 closed-end 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.

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 October 31, 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 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 Midstream & MLP Fund



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