KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2022
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
Description | No. of | Value | |||
Long-Term Investments — 142.6% |
| ||||
Equity Investments(1) — 142.0% |
| ||||
Midstream Energy Company(2) — 117.1% |
| ||||
Aris Water Solutions, Inc. | 478 | $ | 8,131 | ||
Cheniere Energy, Inc.(3) | 784 |
| 125,597 | ||
Cheniere Energy Partners, L.P. | 382 |
| 19,524 | ||
DCP Midstream, LP | 429 |
| 16,311 | ||
DT Midstream, Inc. | 966 |
| 53,322 | ||
Enbridge Inc.(4) | 932 |
| 38,433 | ||
Energy Transfer LP | 16,788 |
| 196,583 | ||
Enterprise Products Partners L.P. | 7,087 |
| 186,517 | ||
Enterprise Products Partners L.P. — Convertible Preferred | 23 |
| 23,209 | ||
Hess Midstream LP | 19 |
| 549 | ||
Kinder Morgan, Inc. | 1,872 |
| 34,291 | ||
Kinetik Holdings Inc. | 546 |
| 20,116 | ||
Magellan Midstream Partners, L.P. | 1,087 |
| 56,123 | ||
MPLX LP | 4,165 |
| 135,849 | ||
MPLX LP — Convertible Preferred Units(5)(6)(8) | 2,255 |
| 78,127 | ||
ONEOK, Inc. | 1,050 |
| 64,321 | ||
Pembina Pipeline Corporation(4) | 789 |
| 27,850 | ||
Plains All American Pipeline, L.P.(9) | 9,518 |
| 111,840 | ||
Plains GP Holdings, L.P. — Plains AAP, L.P.(6)(9)(10) | 1,622 |
| 19,435 | ||
Streamline Innovations Holdings, Inc. — Series C Preferred Shares(5)(6)(9)(11)(12) | 4,125 |
| 20,625 | ||
Targa Resources Corp.(3) | 2,233 |
| 152,324 | ||
TC Energy Corporation(4) | 1,145 |
| 55,185 | ||
The Williams Companies, Inc. | 4,145 |
| 141,065 | ||
Western Midstream Partners, LP | 3,847 |
| 108,139 | ||
| 1,693,466 | ||||
Utility Company(2) — 12.4% |
| ||||
American Electric Power Company, Inc. | 79 |
| 7,866 | ||
Dominion Energy, Inc. | 486 |
| 39,779 | ||
Duke Energy Corporation | 183 |
| 19,554 | ||
Evergy, Inc. | 121 |
| 8,306 | ||
Eversource Energy | 132 |
| 11,803 | ||
NextEra Energy, Inc. | 207 |
| 17,624 | ||
Sempra Energy(3) | 259 |
| 42,661 | ||
TransAlta Corporation(4) | 1,016 |
| 9,569 | ||
Xcel Energy Inc. | 309 |
| 22,906 | ||
| 180,068 |
See accompanying notes to financial statements.
KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2022
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
Description | No. of | Value | |||
Renewable Infrastructure Company(2) — 9.8% |
| ||||
Atlantica Sustainable Infrastructure plc(4) | 751 | $ | 25,086 | ||
Brookfield Renewable Partners L.P.(4) | 625 |
| 23,267 | ||
Clearway Energy, Inc. — Class A | 111 |
| 3,838 | ||
Clearway Energy, Inc. — Class C | 365 |
| 13,542 | ||
Enviva Inc. | 248 |
| 17,227 | ||
Innergex Renewable Energy Inc.(4) | 735 |
| 11,138 | ||
NextEra Energy Partners, LP | 401 |
| 32,911 | ||
Northland Power Inc.(4) | 377 |
| 12,926 | ||
TransAlta Renewables Inc.(4) | 106 |
| 1,404 | ||
| 141,339 | ||||
Energy Company(2) — 2.7% |
| ||||
Phillips 66 | 350 |
| 31,330 | ||
Shell plc — ADR(4)(13) | 140 |
| 7,417 | ||
| 38,747 | ||||
Total Equity Investments (Cost — $1,893,168) |
| 2,053,620 |
Interest | Maturity | Principal | ||||||||
Debt Investments — 0.6% |
|
| ||||||||
Midstream Energy Company(2) — 0.6% |
|
| ||||||||
Energy Transfer LP | 5.30 | % | 4/15/47 | $ | 750 | 659 | ||||
EQM Midstream Partners, LP | 7.50 |
| 6/1/30 |
| 667 | 659 | ||||
EQM Midstream Partners, LP | 6.50 |
| 7/15/48 |
| 6,000 | 5,091 | ||||
Kinder Morgan, Inc. | 5.55 |
| 6/1/45 |
| 750 | 732 | ||||
Plains All American Pipeline, L.P.(9) | 4.90 |
| 2/15/45 |
| 750 | 609 | ||||
The Williams Companies, Inc. | 5.10 |
| 9/15/45 |
| 750 | 700 | ||||
Total Debt Investments (Cost — $9,252) | 8,450 | |||||||||
Total Long-Term Investments — 142.6% (Cost — $1,902,420) | 2,062,070 |
Liabilities | Strike | Expiration | No. of | Notional | |||||||||
Call Option Contracts Written(12) |
|
|
| ||||||||||
Midstream Energy Company(2) |
|
|
| ||||||||||
Cheniere Energy, Inc. | $ | 200.00 | 10/21/22 | 380 | $ | 6,087 | (25 | ) | |||||
Cheniere Energy, Inc. |
| 210.00 | 10/21/22 | 380 |
| 6,087 | (4 | ) | |||||
Targa Resources Corp. |
| 77.50 | 10/21/22 | 570 |
| 3,889 | (53 | ) | |||||
|
| (82 | ) | ||||||||||
Utility Company(2) |
|
|
| ||||||||||
Sempra Energy |
| 175.00 | 10/21/22 | 380 |
| 6,269 | (68 | ) | |||||
Sempra Energy |
| 180.00 | 10/21/22 | 380 |
| 6,269 | (33 | ) | |||||
|
| (101 | ) | ||||||||||
Total Call Option Contracts Written (Premiums Received — $338) | (183 | ) |
See accompanying notes to financial statements.
KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2022
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
Description | Value | |||||
Debt | $ | (374,111 | ) | |||
Mandatory Redeemable Preferred Stock at Liquidation Value |
| (111,603 | ) | |||
Current Income Tax Liability, net |
| (1,088 | ) | |||
Deferred Income Tax Liability, net |
| (126,751 | ) | |||
Other Liabilities in Excess of Other Assets |
| (1,845 | ) | |||
Net Assets Applicable to Common Stockholders | $ | 1,446,489 |
|
____________
(1) Unless otherwise noted, equity investments are common units/common shares.
(2) Refer to Glossary of Key Terms for definitions of Energy Company, Midstream Energy Company, Renewable Infrastructure Company and Utility Company.
(3) Security or a portion thereof is segregated as collateral on option contracts written.
(4) Foreign security.
(5) Fair valued on a recurring basis using significant unobservable inputs (Level 3). See Notes 2 and 3 in Notes to Financial Statements.
(6) The Company’s ability to sell this security is subject to certain legal or contractual restrictions. As of August 31, 2022, the aggregate value of restricted securities held by the Company was $141,396 (6.8% of total assets), which included $19,435 of Level 2 securities and $121,961 of Level 3 securities. See Note 7 — Restricted Securities.
(7) Enterprise Products Partners L.P. (“EPD”) Series A Cumulative Convertible Preferred Units (“EPD Convertible Preferred Units”) are senior to the common units in terms of liquidation preference and priority of distributions, and pay a distribution of 7.25% per annum. The EPD Convertible Preferred Units are convertible into EPD common units at any time after September 29, 2025 at the liquidation preference amount divided by 92.5% of the 5-day volume weighted average price of EPD’s common units at such time.
(8) MPLX LP (“MPLX”) Series A Convertible Preferred Units (“MPLX Convertible Preferred Units”) are convertible on a one-for-one basis into common units of MPLX and are senior to the common units in terms of liquidation preference and priority of distributions. For the quarter ended August 31, 2022, the Company received a distribution of $0.705 per MPLX Convertible Preferred Unit.
(9) The Company believes that it is an affiliate of Plains AAP, L.P. (“PAGP-AAP”), Plains All American Pipeline, L.P. (“PAA”), and Streamline Innovations Holdings, Inc. (“Streamline”). See Note 5 — Agreements and Affiliations.
(10) The Company’s ownership of PAGP-AAP is exchangeable on a one-for-one basis into either Plains GP Holdings, L.P. (“PAGP”) shares or PAA units at the Company’s option. The Company values its PAGP-AAP investment on an “as exchanged” basis based on the higher public market value of either PAGP or PAA. As of August 31, 2022, the Company’s PAGP-AAP investment is valued at PAGP’s closing price. See Note 7 — Restricted Securities.
(11) Streamline is a privately-held company. Streamline Series C Preferred Shares are convertible into common equity at any time at the Company’s option and are senior to common equity and Series A and Series B preferred shares in terms of liquidation preference and priority of distributions. Streamline Series C Preferred Shares are entitled to receive a quarterly dividend beginning in March 31, 2025, at an annual rate of 12.0%, which rate shall increase 2.0% each year thereafter to a maximum rate of 18.0%. Streamline Series C Preferred Shares are redeemable by Streamline at any time after March 31, 2025, at a price sufficient for the Company to achieve a 20.0% internal rate of return on its investment.
See accompanying notes to financial statements.
KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2022
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
(12) Security is non-income producing.
(13) ADR — American Depositary Receipt.
(14) The notional amount of call option contracts written is the product of (a) the number of contracts written, (b) 100 (each contract entitles the option holder to 100 units/shares) and (c) the market price of the underlying security as of August 31, 2022.
At August 31, 2022, the Company’s geographic allocation was as follows:
Geographic Location | % of Long-Term | |
United States | 89.7% | |
Canada | 8.7% | |
Europe/U.K. | 1.6% |
See accompanying notes to financial statements.