Salient Midstream & MLP Fund Announces its Net Asset Value as of June 30, 2012 and Provides Update on Investment of IPO Proceeds

Jul 05, 2012, 18:13 ET from Salient Midstream & MLP Fund

HOUSTON, July 5, 2012 /PRNewswire/ -- Salient Midstream & MLP Fund (the "Fund") (NYSE: SMM) released today its net asset value as of June 30, 2012 and provided an update on the investment of net proceeds from its initial public offering.

As of June 30, 2012, the Fund's net assets were $173.1 million and the net asset value per share was $19.22. The Fund's net asset value per share was $19.06 on May 24, 2012, the date the Fund commenced operations. The net asset value of the fund has appreciated by 0.84% net of all fees during its first month of operations in June.

Gregory A. Reid, President and CEO of the MLP business of Salient Capital Advisors, LLC, advisor to the Fund, said, "We are very pleased with the progress we have made investing the proceeds from the Fund's IPO, and the Fund has invested most of the cash proceeds raised in the IPO during the market correction in June. Additionally, we have started leveraging the portfolio toward our long-term target of a 25% leverage ratio for the Fund.

The Fund is announcing its initial cash distribution of $0.325 per share with a payment date in late August.  This equates to a 6.5% yield on the IPO price of $20.00."

As of June 30, 2012, the advisor has invested the Fund in long-term investments as shown in the pie chart below:

(Photo: http://photos.prnewswire.com/prnh/20120705/NY35685)

Also as of June 30, 2012, the Fund's 10 largest consolidated holdings were:

 

Company

Sector

Shares

Amount

(in millions)

Percent of

Consolidated Gross Assets

Enterprise Products Partners LP**

MLP

424,000

$21.7

11.3%

Williams Companies, Inc.

Midstream Company

509,000

$14.7

7.7%

Kinder Morgan Management, LLC

MLP Affiliate

191,400

$14.1

7.3%

Plains All American Pipeline, LP*

MLP

152,000

$12.3

6.4%

Kinder Morgan Inc.

Midstream Company

254,000

$8.2

4.3%

Energy Transfer Equity, LP*

MLP

182,000

$7.5

3.9%

Crosstex Energy, LP

MLP

383,451

$6.3

3.3%

Crosstex Energy, Inc.

Midstream Company

448,388

$6.3

3.3%

Enbridge Energy Management, LLC

MLP Affiliate

180,100

$5.8

3.0%

Capital Product Partners, LP***

Marine Midstream

622,222

$5.5

2.9%

*Held indirectly through the wholly owned C-Corporation, Salient Midstream & MLP Fund, Inc.

** A portion of the shares are held indirectly through the C-Corporation.

*** Convertible preferred shares.

The Fund's consolidated unaudited balance sheet as of June 30, 2012, is shown below:

Salient Midstream & MLP Fund

Consolidated Balance Sheet

June 30, 2012

(Unaudited)

Assets

(in millions)

Investments (1)

$155.9

Cash and Cash Equivalents

35.5

Receivable for Investments Sold

0.1

Hedging and Other Assets

0.1

Total Assets

191.6

Liabilities

Payable for Investment Purchased

17.6

Other Liabilities

0.9

Total Liabilities

18.5

Net Assets

$173.1

The Fund had 9 million common shares outstanding as of June 30, 2012.

(1) Investments include the gross underlying investments within the Salient Midstream & MLP Fund, Inc. (C-Corporation) of $43.8 million.

Past performance is no guarantee 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 shareholders. The Fund seeks to achieve that objective by investing at least 80% of its total assets in securities of MLPs and energy infrastructure 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.

CONTACT:

Chris Moon JCPR cmoon@jcprinc.com  973-850-7304

Salient Capital Advisors, LLC Investor Relations mlpinfo@salientpartners.com 800-809-0525

SOURCE Salient Midstream & MLP Fund