SALIENT MIDSTREAM & MLP FUND ANNOUNCES UNAUDITED NET ASSET VALUE AS OF AUGUST 31, 2022

HOUSTON, Sept. 8, 2022 /PRNewswire/ -- Salient Midstream & MLP Fund (the "Fund") (NYSE: SMM) provided today a summary of unaudited statement of assets and liabilities and announced Net Asset Value (NAV) as of August 31, 2022. The Fund also reminded shareholders that Fund shareholders have approved the reorganization of the Fund with and into Salient MLP & Energy Infrastructure Fund, a series of Salient MF Trust ("Reorganization"). Today was the last day of trading of Fund shares on the New York Stock Exchange ("NYSE"). The Fund currently anticipates the Reorganization will be completed after market close of the NYSE on September 13, 2022.

On August 31, 2022, the Fund's total assets were $161.9 million and the NAV per share was $9.12. On August 31, 2022 the closing share price of the Fund was $9.01, which was trading at a 1.2% discount to the NAV.¹ The Fund's NAV and market price total returns for the month of August were 3.8% and 9.4%, respectively, compared to 0.1% for the Alerian Midstream Energy Select Total Return Index (AMEIX).² The Fund's NAV and market price total returns year-to-date (YTD) were 26.1% and 38.3%, respectively, compared to 22.0% for the AMEIX.² 

Since the Fund's inception, the portfolio management team has focused on generating top-tier total returns rather than focusing on the distribution rate and the Fund's performance over multiple time periods versus its peers is provided in the table below along with a ranking of SMM vs. peers.

Since inception in 2012 SMM is the second best performing closed-end fund on market price and the third best on NAV in the peer group of eleven funds.

SMM's inception to date (ITD) annualized total return (based on market price) of -0.5% has outperformed the RIC Average of -4.2% and the C-Corp average of -3.5%. Likewise, on a NAV basis, SMM's ITD return of -0.4% compares favorably to the -2.8% return for the peer group of RIC Funds and -1.9% for C-Corp Funds.

August Market Commentary

Energy infrastructure equities were essentially flat during the month of August, registering a gain of 0.1% as measured by the Alerian Midstream Energy Select Index (AMEI).² The AMEIX index rallied alongside the broad market during the first half of the month, but then sold off later in the month due to general de-risking by investors. That said, energy infrastructure equities continue to execute on fundamentals with a majority of our investment universe reporting better than expected second quarter results. For the balance of 2022 and into 2023, we remain positive on the industry as 1) free cash flow after dividends is growing at a healthy pace, 2) hydrocarbon volumes are growing as drilling activity improves and 3) capital allocation remains mostly focused on returning excess cash to investors through buybacks and potential dividend increases.³

Crude oil as measured by the West Texas Intermediate (WTI) benchmark was down 9.2% for the month of August but is still up 19.1% for the year.⁴ Recent crude oil price weakness is in part driven by fears that a recession could negatively impact crude oil demand and thus weigh on prices. During the past two recessions, crude oil demand declined, and we think investors have priced in some of those expectations today. Looking at past recessions, demand doesn't always decline – in both the 2001 and 1991 recessions global crude oil demand actually grew on a year over year basis.⁴ We will look to additional data points in coming months to determine whether demand is being impacted, however, based on data in hand it still appears that demand is strong and sources of new supply remain limited. Longer term, we view crude oil prices in the $70-$80 range as being positive for investment in the American energy industry. Commodity analysts continue to see a tight supply environment for both crude oil and natural gas for the remainder of 2022 and potentially in 2023. We believe that current prices are sufficient to lead to U.S. volume growth this year. The promise of these incremental volumes should be supportive of midstream companies going forward.

The Fund's Top 10 holdings as of August 31, 2022 are shown below:⁵

The Fund's unaudited balance sheet as of August 31, 2022 is shown below:

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.

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.

The Salient MLP & Energy Infrastructure Fund ("SMAPX") seeks to maximize total return (capital appreciation and income). SMAPX seeks to achieve its investment objective by investing in at least 80% of its net assets in securities of MLPs and energy infrastructure companies. Investing involves risk including the potential loss of principal. SMAPX may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.

You should consider the investment objectives, risks, charges and expenses of the Funds carefully before investing. The prospectus and summary prospectus for SMAPX contain this and other information about SMAPX and are available by calling 866-667-9228. They should be read carefully before investing.

Advisory services offered by Salient Capital Advisors, LLC (the "advisor"). A wholly owned subsidiary of Salient Partners, L.P. Salient is the trade name for Salient Partners, L.P., which together with its subsidiaries provides asset management and advisory services. Salient MLP & Energy Infrastructure Fund is distributed by Foreside Fund Services, LLC.

SOURCE Salient Partners, L.P.