(NYSE:KED) Kayne Anderson Energy Development Company (the “Company” or “KED”) announced today a quarterly distribution of $0.50 per share for the quarter ended November 30, 2013. This distribution represents an increase of 9.9% over the prior quarterly distribution and an increase of 16.3% over the same period last year.
Our CEO Comments on Recent Results and Outlook
“During fiscal 2013, KED reached some important milestones. In May, we successfully completed the merger of Direct Fuels Partners, L.P. into Emerge Energy Services LP (‘Emerge’) and the concurrent initial public offering of Emerge. As of December 31, 2013, Emerge’s unit price had increased 161% over its IPO price, making it the best performing MLP initial public offering in 2013. In October, another of our private MLP investments, Plains GP Holdings, L.P., successfully completed its initial public offering. Based on the January 17 th share price of $26.03, this represents a four-fold increase over KED’s initial investment. Partially as a result of the performance of these investments, we announced an adjusted NAV at December 31, 2013 of $31.02 per share, which is an all-time high for KED,” said Kevin McCarthy, Chairman, President and Chief Executive Officer.
“As these two investments have become ‘public MLPs’, we continue to look to put additional capital to work in private MLPs. In today’s energy market, we are finding it more challenging to make investments in private MLPs at what we believe are acceptable rates of return. Competition from private equity firms, a receptive market for MLP initial public offerings, as well as the willingness of public MLPs to purchase smaller private midstream businesses, are trends that have impacted our ability to form new private MLPs. While we continue to search for suitable private investments, we will continue to deploy capital in the public MLP market. We believe that we can generate very attractive rates of return in the public market, but selectivity will be the key to achieving high rates of return. As a result, in the current environment, we are likely to take more concentrated positions in public MLPs.”