Salient Midstream & MLP Fund Announces Net Asset Value as of January 31, 2013 and Announces First Quarter 2013 Dividend of $0.335 per Share Up 1.5% Sequentially

Feb 07, 2013, 09:00 ET from Salient Midstream & MLP Fund

HOUSTON, Feb. 7, 2013 /PRNewswire/ -- Salient Midstream & MLP Fund (the "Fund") (NYSE: SMM) announced today its net asset value (NAV) as of January 31, 2013. The Fund also announced that it had increased its dividend by 1.5% sequentially for the first quarter ended February 28, 2013.

At the close of business on January 31, 2013, the Fund's net assets were $205.9 million and the NAV per share was $21.72, compared with December 31, 2012, when the net assets were $182.4 million and the NAV per share was $19.24

On January 31, 2013, the closing share price of the Fund was $21.25, which was trading at a 2.2% discount to the NAV.

The Fund increased its quarterly dividend to $0.335 per share for the quarter ending February 28, 2013, which represents a 1.5% sequential increase over the $0.33 paid in the previous quarter. The increased dividend will be payable on February 28, 2013 to common stockholders of record on February 19, 2013. It is anticipated that the majority portion of this dividend will be treated as a return of capital 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 2014 when the Fund can determine its earnings and profits for the 2013 fiscal year.

The Fund's quarterly distributions per share as of January 31, 2013 are listed below:1

AMOUNT

QUARTERLY GROWTH RATE (%)

PAYABLE DATE

EX-DATE

RECORD DATE

$0.335

1.5%

February 28, 2013

February 15, 2013

February 19, 2013

$0.33

1.5%

December 3, 2012

November 15, 2012

November 19, 2012

$0.325

--

August 22, 2012

August 15, 2012

August 17, 2012

Past performance is no guarantee of future results.

1 The amount of distributions 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 distributions after the end of the calendar year and will provide shareholders such information at that time.

The Fund was invested in long-term investments as shown in the pie chart below as of January 31, 2013.

(Chart: http://photos.prnewswire.com/prnh/20130207/NY56030-INFO )

Also as of January 31, 2013, the Fund's 10 largest consolidated holdings were:

Company

Sector

Shares

Amount

(in millions)

Percent of

Consolidated Gross Assets

Kinder Morgan Management, LLC

MLP Affiliate

280,960

$23.2

7.7%

Enterprise Products Partners, LP*

MLP

402,459

$22.8

7.6%

Plains All American Pipeline, LP*

MLP

370,000

$19.5

6.5%

Williams Companies, Inc.

Midstream Company

547,900

$19.2

6.4%

Kinder Morgan Inc.

Midstream Company

374,348

$14.0

4.7%

Linn Co, LLC

MLP Affiliate

333,390

$13.3

4.4%

CrossTex Energy, Inc.

Midstream Company

733,805

$12.4

4.1%

Teekay Offshore Partners, LP

Marine Midstream

442,281

$12.2

4.1%

Enbridge Energy Management, LLC

MLP Affiliate

393,949

$12.0

4.0%

Energy Transfer Equity, LP*

MLP

190,106

$9.6

3.2%

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

The Fund's consolidated unaudited balance sheet as of January 31, 2013, is shown below:

Salient Midstream & MLP Fund

Consolidated Balance Sheet

January 31, 2013

(Unaudited)

Assets

(in millions)

Investments1

$279.0

Cash and Cash Equivalents

9.9

Receivable for Investments Sold

10.1

Hedging and Other Assets

1.6

Total Assets

300.6

Liabilities

Line of Credit Payable2

88.0

Derivatives – Short positions

0.5

Other Liabilities

5.6

Total Liabilities

94.6

Net Assets

$205.9

The Fund had 9.5 million common shares outstanding as of January 31, 2013.

1 Investments include the gross underlying investments within the Salient Midstream & MLP Fund, Inc.'s (C-Corporation) of $82.6 million.

2 The line of credit payable includes the C-Corporation's $24M outstanding line as of January 31, 2013.

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 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.

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