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, 2012


The Company estimates its portfolio will generate dividends, distributions, and interest income of approximately $6.9 million in the next quarter. This estimate includes cash distributions of $1.5 million per quarter for Direct Fuels. The estimate also includes distributions of $0.6 million per quarter from VantaCore, which is based on only the cash distribution the Company expects to receive, on average, over the next four quarters of $0.275 per common and preferred A unit. Unlike prior guidance, the Company’s estimate does not include payment-in-kind distributions that the Company expects to receive on VantaCore’s common and preferred A units. 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, 2012.

Portfolio Category          

AmountInvested($ in millions)

      Average AnnualYield (1)(2)  
Private MLPs (3)(4)             $   80           11.0 %    
Public MLPs and Other Public Equity (4)                 176           7.2      
Debt Investments (5)(6)                 58           10.6      
(1) 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.
(2) Average yields for Public MLPs and Other Public Equity are based on the most recently declared distributions as of May 31, 2012. Amounts invested for Private MLPs are based on May 31, 2012 valuations.
(3) The amount invested excludes the Company’s equity investment in ProPetro (valued at $7.5 million as of May 31, 2012), which does not pay a dividend.
(4) Amounts are pro forma for a partial distribution the Company expects to receive related to the $4.8 million incremental investment in VantaCore. The Company made this investment on June 8, 2012 and, as a result, will only receive approximately 25% of the distribution with respect to VantaCore’s second quarter. The investment was funded with proceeds from the sale of public MLPs and other public equity. The amounts in the table above are pro forma for the sale of these public securities.
(5) The average yield includes straight-line amortization of the purchase price discounts/premiums through the expected maturity.
(6) The amount invested includes the Company’s $12.8 million debt investment in ProPetro. This investment pays paid-in-kind interest at an annual rate of 13.0%.

Management Fees and Other Operating Expenses – Management fees are estimated to be approximately $1.44 million per quarter. Other operating expenses are estimated to be approximately $0.40 million per quarter.

3 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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs