KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2021
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
Description | No. of Shares/Units | Value | ||||||
Long-Term Investments — 132.1% | ||||||||
Equity Investments(1) — 130.6% | ||||||||
Midstream Company(2) — 68.5% | ||||||||
BP Midstream Partners LP(3) | 91 | $ | 1,044 | |||||
Cheniere Energy, Inc.(4)(5) | 222 | 14,974 | ||||||
Cheniere Energy Partners, L.P.(3)(5) | 101 | 4,007 | ||||||
DCP Midstream, LP — Series A Preferred Units(3)(6) | 6,005 | 5,164 | ||||||
Enbridge Inc.(7) | 348 | 11,764 | ||||||
Energy Transfer LP(3) | 1,235 | 9,437 | ||||||
EnLink Midstream Partners, LP, — Series C Preferred Units(8) | 8,605 | 5,131 | ||||||
Enterprise Products Partners L.P.(3) | 604 | 12,882 | ||||||
Enterprise Products Partners L.P. — Convertible Preferred Units(3)(9)10)(11) | 13 | 12,971 | ||||||
Equitrans Midstream Corporation(5) | 163 | 1,177 | ||||||
Equitrans Midstream Corporation — Convertible Preferred Shares(5)(9)(10)(12) | 238 | 4,316 | ||||||
Kinder Morgan, Inc.(5) | 1,158 | 17,028 | ||||||
KNOT Offshore Partners LP(13) | 297 | 4,936 | ||||||
ONEOK, Inc. | 269 | 11,926 | ||||||
Magellan Midstream Partners, L.P.(3) | 156 | 6,500 | ||||||
MPLX LP(3) | 548 | 13,057 | ||||||
Pembina Pipeline Corporation(7) | 389 | 9,877 | ||||||
Phillips 66 Partners LP(3) | 35 | 926 | ||||||
Plains GP Holdings, L.P.(14)(15) | 695 | 5,988 | ||||||
Plains GP Holdings, L.P. — Plains AAP, L.P.(9)(13)(14)(15) | 690 | 5,944 | ||||||
Rattler Midstream LP(13) | 421 | 4,630 | ||||||
Targa Resources Corp.(16) | 1,025 | 31,716 | ||||||
TC Energy Corporation(5)(7)(17) | 313 | 13,123 | ||||||
TC PipeLines, LP(3)(5)(17) | 265 | 7,726 | ||||||
The Williams Companies, Inc.(5)(16) | 1,347 | 30,772 | ||||||
|
| |||||||
247,016 | ||||||||
|
| |||||||
Renewable Infrastructure Company(2)(5) — 33.5% | ||||||||
Acciona, S.A.(7) | 9 | 1,449 | ||||||
Aker Horizons AS(4)(7) | 187 | 867 | ||||||
Atlantica Sustainable Infrastructure plc(7) | 498 | 17,995 | ||||||
Brookfield Renewable Partners L.P.(7) | 412 | 17,396 | ||||||
Brookfield Renewable Corporation — Class A(7) | 202 | 9,309 | ||||||
Clearway Energy, Inc. — Class A | 231 | 6,030 | ||||||
Clearway Energy, Inc. — Class C | 102 | 2,804 | ||||||
EDP Renováveis, S.A.(7) | 61 | 1,339 | ||||||
Innergex Renewable Energy Inc.(7) | 460 | 8,701 | ||||||
Enviva Partners, LP(3) | 231 | 12,237 | ||||||
MPC Energy Solutions N.V.(4)(7) | 184 | 923 | ||||||
NextEra Energy Partners, LP | 244 | 17,724 | ||||||
Northland Power Inc.(7) | 349 | 11,575 | ||||||
Orsted A/S(7) | 25 | 4,078 | ||||||
Terna Energy S.A.(7) | 309 | 4,515 | ||||||
TransAlta Renewables Inc.(7) | 242 | 3,834 | ||||||
|
| |||||||
120,776 | ||||||||
|
|
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2021
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
Description | No. of Shares/Units | Value | ||||||||||||||||||
Utility Company(2)(5) — 25.8% |
| |||||||||||||||||||
AB Ignitis Grupe(4)(7) |
| 94 | $ | 2,364 | ||||||||||||||||
Algonquin Power & Utilities Corp.(7) |
| 594 | 9,177 | |||||||||||||||||
Avangrid, Inc. |
| 77 | 3,505 | |||||||||||||||||
Dominion Energy, Inc. |
| 87 | 5,964 | |||||||||||||||||
Duke Energy Corporation |
| 55 | 4,665 | |||||||||||||||||
EDP — Energias de Portugal, S.A.(7) |
| 1,352 | 7,757 | |||||||||||||||||
Enel — Società per Azioni(7) |
| 837 | 7,892 | |||||||||||||||||
Engie SA(7) |
| 225 | 3,278 | |||||||||||||||||
Evergy, Inc. |
| 56 | 3,025 | |||||||||||||||||
Eversource Energy |
| 65 | 5,150 | |||||||||||||||||
Iberdrola, S.A.(7) |
| 433 | 5,427 | |||||||||||||||||
NextEra Energy, Inc. |
| 156 | 11,492 | |||||||||||||||||
Sempra Energy |
| 61 | 7,029 | |||||||||||||||||
SSE plc(7) |
| 283 | 5,244 | |||||||||||||||||
The AES Corporation |
| 119 | 3,155 | |||||||||||||||||
TransAlta Corporation(7) |
| 297 | 2,595 | |||||||||||||||||
Xcel Energy Inc. |
| 87 | 5,074 | |||||||||||||||||
|
| |||||||||||||||||||
92,793 | ||||||||||||||||||||
|
| |||||||||||||||||||
Other Energy Company(2) — 2.0% |
| |||||||||||||||||||
Phillips 66 |
| 86 | 7,117 | |||||||||||||||||
|
| |||||||||||||||||||
Other(2) — 0.8% |
| |||||||||||||||||||
Flughafen Zurich AG(7) |
| 17 | 3,006 | |||||||||||||||||
|
| |||||||||||||||||||
Total Equity Investments (Cost — $477,011) |
| 470,708 | ||||||||||||||||||
|
|
Interest Rate | Maturity Date | Principal Amount | ||||||||||||||||||
Debt Instruments — 1.5% | ||||||||||||||||||||
Midstream Company(2) — 1.5% | ||||||||||||||||||||
Buckeye Partners, L.P. (Cost — $5,222) |
| 6.375 | % | 1/22/78 | $ | 6,680 | 5,411 | |||||||||||||
|
| |||||||||||||||||||
Total Long-Term Investments — 132.1% (Cost — $482,233) |
| 476,119 | ||||||||||||||||||
|
|
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2021
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
Description | Strike Price | Expiration Date | No. of Contracts | Notional Amount(18) | Value | |||||||||||||||
Liabilities | ||||||||||||||||||||
Call Option Contracts Written(4) | ||||||||||||||||||||
Midstream Company(2) | ||||||||||||||||||||
Targa Resources Corp. | $ | 35.00 | 3/19/21 | 400 | $ | 1,237 | $ | (8 | ) | |||||||||||
Targa Resources Corp. | 36.00 | 3/19/21 | 250 | 773 | (3 | ) | ||||||||||||||
The Williams Companies, Inc. | 23.00 | 3/19/21 | 500 | 1,142 | (31 | ) | ||||||||||||||
|
| |||||||||||||||||||
Total Call Option Contracts Written (Premiums Received — $71) |
| (42 | ) | |||||||||||||||||
|
| |||||||||||||||||||
Debt |
| (97,515 | ) | |||||||||||||||||
Mandatory Redeemable Preferred Stock at Liquidation Value |
| (22,188 | ) | |||||||||||||||||
Other Assets in Excess of Other Liabilities |
| 4,024 | ||||||||||||||||||
|
| |||||||||||||||||||
Net Assets Applicable to Common Stockholders |
| $ | 360,398 | |||||||||||||||||
|
|
(1) | Unless otherwise noted, equity investments are common units/common shares. |
(2) | Refer to the “Glossary of Key Terms” for the definitions. |
(3) | Securities are treated as a qualified publicly-traded partnership for RIC qualification purposes. To qualify as a RIC for tax purposes, the Fund may directly invest up to 25% of its total assets in equity and debt securities of entities treated as qualified publicly-traded partnerships. The Fund had 17.8% of its total assets invested in qualified publicly-traded partnerships at February 28, 2021. It is the Fund’s intention to be treated as a RIC for tax purposes. |
(4) | Security is non-income producing. |
(5) | For the purposes of the Fund’s investment policies, it considers NextGen companies to be Energy Companies and Infrastructure Companies that are meaningfully participating in, or benefitting from, the Energy Transition. For these purposes we include Renewable Infrastructure Companies, Green Utilities and Midstream Companies that primarily own and/or operate Midstream Assets related to natural gas or liquefied natural gas. |
(6) | Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units. Distributions are payable at a rate of 7.375% per annum through December 15, 2022. On and after December 15, 2022, distributions on the Series A Preferred Units will be payable at a rate equal to the three-month LIBOR plus 5.148% per annum. |
(7) | Foreign security. |
(8) | Series C Preferred Units are cumulative redeemable perpetual units. Distributions on the Series C Preferred Units are payable at a rate of 6.0% per annum through December 15, 2022. On and after December 15, 2022, the rate will be based on three-month LIBOR, determined quarterly, plus 4.11%. |
(9) | The Fund’s ability to sell this security is subject to certain legal or contractual restrictions. As of February 28, 2021, the aggregate value of restricted securities held by the Fund was $23,231 (4.8% of total assets), which included $5,944 of Level 2 securities and $17,287 of Level 3 securities. See Note 7 — Restricted Securities. |
(10) | Fair valued on a recurring basis using significant unobservable inputs (Level 3). See Notes 2 and 3 in Notes to Financial Statements. |
(11) | On September 30, 2020, the Fund purchased, Series A Cumulative Convertible Preferred Units (“EPD Convertible Preferred Units”) from Enterprise Products Partners, L.P. (“EPD”). The EPD |
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2021
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
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 anytime after September 29, 2025 at the liquidation preference amount divided by 92.5% of the 5-day volume weighted average price of the EPD’s common units at such time. |
(12) | The Equitrans Midstream Corporation (“ETRN”) Convertible Preferred Shares are convertible on a one-for-one basis into common shares of ETRN after April 10, 2021. The ETRN Convertible Preferred Shares pay quarterly cash distributions based on an annual rate of (a) 9.75% through March 31, 2024 and (b) the greater of (i) 10.5% or (ii) LIBOR plus 8.15% thereafter. |
(13) | This company is structured like an MLP, but is not treated as a qualified publicly-traded partnership for regulated investment company (“RIC”) qualification purposes. |
(14) | The Fund believes that it is an affiliate of Plains AAP, L.P. (“PAGP-AAP”) and Plains GP Holdings, L.P. (“PAGP”). See Note 5 — Agreements and Affiliations. |
(15) | The Fund’s ownership of PAGP-AAP is exchangeable on a one-for-one basis into either PAGP shares or Plains All American Pipeline, L.P. (“PAA”) units at the Fund’s option. The Fund values its PAGP-AAP investment on an “as exchanged” basis based on the higher public market value of either PAGP or PAA. As of February 28, 2021, the Fund’s PAGP-AAP investment is valued at PAGP’s closing price. See Note 7 — Restricted Securities. |
(16) | Security or a portion thereof is segregated as collateral on option contracts written. |
(17) | On March 3, 2021, TC Energy Corporation (“TRP”) and TC Pipelines, LP (“TCP”) completed their previously announced stock-for-unit merger. TCP unitholders received 0.70 TRP common shares for each TCP common unit held. |
(18) | 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 February 28, 2021. |
At February 28, 2021, the Fund’s geographic allocation was as follows:
Geographic Location | % of Long-Term Investments | |||
United States | 65.7 | % | ||
Canada | 20.4 | % | ||
Europe/U.K. | 13.9 | % |
See accompanying notes to financial statements.