This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kayne Anderson Energy Development Company Announces Results For The Quarter Ended May 31, 2011

As of May 31, 2011, the Company’s net asset value included current and deferred income tax liabilities of $19.9 million and $7.3 million, respectively.


As of May 31, 2011, the Company had approximately $5.0 million in short-term investments in the form of a repurchase agreement. The Company’s repurchase agreement is collateralized by U.S. Treasury securities, and the Company’s counterparty is J.P. Morgan Securities Inc.

As of May 31, 2011, the Company had $67.0 million of borrowings under its credit facility (at an interest rate of 2.21%), which represented 49.6% of its borrowing base of $135.2 million (52.7% of its borrowing base attributable to quoted securities). The maximum amount that the Company can borrow under its credit facility is limited to the lesser of the commitment amount of $70.0 million or its borrowing base. As of July 14, 2011, the Company had $62.0 million of borrowings (at an interest rate of 2.19%), which represented 47.2% of the borrowing base of $131.3 million (50.3% of its borrowing base attributable to quoted securities).


On July 22, 2011, the Company will pay a distribution of $0.38 per share for the quarter ended May 31, 2011 to stockholders of record on July 13, 2011. As noted above, this represents an increase of $0.07 per share (22.6%) over the prior quarter’s distribution and represents an increase of $0.04 – $0.05 per share over the Company’s prior distribution guidance.


The Company’s guidance is pro forma for the $19 million tax payments that it expects to make in August 2011 (primarily associated with the IRP sale). For the purpose of providing guidance, the Company has assumed that the payment will be funded through the sale of portfolio securities ($9 million in public MLPs and $10 million in traded debt). The Company estimates the remaining portfolio will generate dividends, distributions, and interest income of approximately $6.3 million per quarter. This estimate does not include the full $0.45 per common unit cash distribution that Direct Fuels is expected to pay for the remainder of 2011. Rather, the estimate reflects cash distributions from Direct Fuels at a distribution rate of $0.37 per common unit, which reflects lower margins that are more consistent with long-term averages. The estimate also includes $0.7 million per quarter of distributions from VantaCore, substantially all of which will be in the form of additional preferred units during the Company’s fiscal third quarter, and $0.4 million of paid-in-kind interest from ProPetro. The Company’s guidance does not reflect any changes in cash distributions made by MLPs or changes in interest rates based on the movement in LIBOR rates since May 31, 2011.
Portfolio Category       Amount Invested($ in millions)       Average AnnualYield (1)(2)
Private MLPs (3)       $66       12.5%
Public MLPs and MLP Affiliates       179       6.6
Debt Investments (4)       48       10.3

Average yields include return of capital distributions. Return of capital distributions are reported as a reduction

to gross dividends and distributions to arrive at net investment income reported under generally accepted

accounting principles.

Average yields for Public MLPs and MLP Affiliates are based on the most recently declared distributions as of

May 31, 2011. Amounts invested for Private MLPs are based on May 31, 2011 valuations. Average yields

reflect quarterly distributions of $0.45 per unit for Vantacore (the minimum quarterly distribution) and $0.37

per common unit for Direct Fuels.

The amount invested excludes the Company’s equity investment in ProPetro valued at $5.6 million as of

May 31, 2011, which does not pay a dividend or distribution.

The average yield includes straight-line amortization of the purchase price discounts/premiums through the

expected maturity.

Management Fees and Other Operating Expenses – Management fees are estimated to be approximately $1.35 million per quarter. Other operating expenses are estimated to be approximately $0.45 million per quarter.

4 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%
TSLA $232.32 -3.92%
YHOO $36.01 -1.42%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs