NPORT-EX 2 ea153664_nportex.htm

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2023
(amounts in 000’s, except number of option contracts)
(UNAUDITED)

Description

      

No. of
Shares/Units

  

Value

Long-Term Investments — 129.8%

      

 

  

Equity Investments(1) — 128.7%

      

 

  

Midstream Company(2) — 56.3%

      

 

  

Aris Water Solutions, Inc.

  

140

  

$

1,975

Enbridge Inc.(3)

  

336

  

 

12,590

Energy Transfer LP(4)

  

2,632

  

 

33,317

Energy Transfer LP — Series A Preferred Units(4)(5)

  

2,000

  

 

1,895

Enterprise Products Partners L.P.(4)

  

1,227

  

 

31,312

Enterprise Products Partners L.P. — Convertible Preferred
Units(4)(6)(7)(8)

  

18

  

 

17,177

Magellan Midstream Partners, L.P.(4)

  

105

  

 

5,603

MPLX LP(4)

  

816

  

 

28,255

ONEOK, Inc.

  

161

  

 

10,529

Pembina Pipeline Corporation(3)

  

559

  

 

18,358

Plains All American Pipeline, L.P. — Series B Preferred Units(4)(9)

  

2,452

  

 

2,256

Plains GP Holdings, L.P.(10)

  

1,591

  

 

22,132

Plains GP Holdings, L.P. — Plains AAP, L.P.(6)(10)(11)

  

690

  

 

9,592

Targa Resources Corp.(12)

  

476

  

 

35,244

Western Midstream Partners, LP(4)

  

256

  

 

6,650
       

 

236,885

Natural Gas & LNG Infrastructure Company(2)(13) — 31.4%

      

 

  

Cheniere Energy, Inc.

  

230

  

 

36,220

Cheniere Energy Partners, L.P.(4)

  

119

  

 

5,869

DT Midstream, Inc.

  

263

  

 

13,177

Kinder Morgan, Inc.

  

583

  

 

9,938

Streamline Innovations Holdings, Inc. — Series C
Preferred Shares(6)(7)(14)(15)(16)

  

1,375

  

 

6,669

TC Energy Corporation(3)

  

413

  

 

16,449

The Williams Companies, Inc.

  

1,450

  

 

43,651
       

 

131,973

Renewable Infrastructure Company(2)(13) — 23.6%

      

 

  

Atlantica Sustainable Infrastructure plc(3)

  

811

  

 

22,381

Brookfield Renewable Partners L.P.(3)(10)

  

670

  

 

17,506

Clearway Energy, Inc. — Class A

  

231

  

 

6,851

Clearway Energy, Inc. — Class C

  

161

  

 

5,054

Corporacion Acciona Energias Renovables, S.A.(3)

  

175

  

 

6,787

Enviva Inc.

  

154

  

 

6,714

Innergex Renewable Energy Inc.(3)

  

544

  

 

5,798

NextEra Energy Partners, LP

  

308

  

 

20,408

Northland Power Inc.(3)

  

308

  

 

7,477
       

 

98,976

See accompanying notes to financial statements.

 

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2023
(amounts in 000’s, except number of option contracts)
(UNAUDITED)

Description

      

No. of
Shares/Units

  

Value

Utility Company(2) — 17.4%

      

 

  

Algonquin Power & Utilities Corp. — Convertible Preferred
Units(3)(13)(17)

  

49

  

$

1,336

Duke Energy Corporation(13)

  

143

  

 

13,442

Eversource Energy

  

83

  

 

6,217

NextEra Energy, Inc.(13)

  

156

  

 

11,077

Sempra Energy(13)

  

131

  

 

19,645

The AES Corporation(13)

  

157

  

 

3,862

TransAlta Corporation(3)(13)

  

540

  

 

4,374

Xcel Energy Inc.(13)

  

206

  

 

13,301
       

 

73,254

Total Equity Investments (Cost — $478,856)

      

 

541,088

Description

      

Interest
Rate

  

Maturity
Date

  

Principal Amount

    

Debt Investments — 1.1%

    

 

      

 

      

Midstream Company(2) — 1.0%

    

 

      

 

      

Energy Transfer LP(4)

  

5.30

%

  

4/15/47

  

$

250

  

211

EQM Midstream Partners, LP

  

6.50

 

  

7/15/48

  

 

4,750

  

3,538

Plains All American Pipeline, L.P.(4)

  

4.90

 

  

2/15/45

  

 

250

  

197
     

 

      

 

    

3,946

Natural Gas & LNG Infrastructure Company(2)(13) — 0.1%

Kinder Morgan, Inc.

  

5.55

 

  

6/1/45

  

 

206

  

186

The Williams Companies, Inc.

  

5.10

 

  

9/15/45

  

 

250

  

219
     

 

      

 

    

405

Total Debt Investments (Cost — $5,440)

  

4,351

Total Long-Term Investments (Cost — $484,296)

  

545,439

See accompanying notes to financial statements.

 

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2023
(amounts in 000’s, except number of option contracts)
(UNAUDITED)

Liabilities

      

Strike
Price

  

Expiration
Date

  

No. of
Contracts

  

Notional
Amount(18)

  

Value

Call Option Contracts Written(16)

  

 

            

 

    

 

  

 

Midstream Company(2)

  

 

            

 

    

 

  

 

Targa Resources Corp. (Premiums Received — $20)

  

$

82.50

  

4/21/23

  

200

  

$

1,482

  

$

(14

)
   

 

            

 

    

 

  

 

Debt

  

 

(85,091

)

Mandatory Redeemable Preferred Stock at Liquidation Value

  

 

(41,491

)

Other Assets in Excess of Other Liabilities

  

 

1,521

 

Net Assets Applicable to Common Stockholders

  

$

420,364

 

____________

(1)    Unless otherwise noted, equity investments are common units/common shares.

(2)    Refer to the Glossary of Key Terms for definitions.

(3)    Foreign security.

(4)    Securities are treated as a qualified publicly-traded partnership for regulated investment company (“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. It is the Fund’s intention to be treated as a RIC for tax purposes. As of February 28, 2023, the Fund had 24.2% of its total assets invested in qualified publicly-traded partnerships.

(5)    Energy Transfer LP (“ET”) Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (“ET Series A Units”). ET Series A Units have a liquidation preference of $1,000 per unit and pay a quarterly distribution at a rate equal to the three-month LIBOR plus a spread of 4.028%. ET Series A Units are redeemable anytime at a redemption price of $1,000 per ET Series A Unit plus accumulated and unpaid distributions. As of February 28, 2023, the distribution rate was 8.892%.

(6)    The Fund’s ability to sell this security is subject to certain legal or contractual restrictions. As of February 28, 2023, the aggregate value of restricted securities held by the Fund was $33,438 (6.1% of total assets), which included $9,592 of Level 2 securities and $23,846 of Level 3 securities. See Note 7 — Restricted Securities.

(7)    Fair valued on a recurring basis using significant unobservable inputs (Level 3). See Notes 2 and 3 in Notes to Financial Statements.

(8)    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.

(9)    Plains All American Pipeline, L.P. (“PAA”) Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (“PAA Series B Units”). PAA Series B Units have a liquidation preference of $1,000 per unit and pay a quarterly distribution at a rate equal to the three-month LIBOR plus a spread of 4.110%. PAA Series B Units are redeemable anytime at a redemption price of $1,000 per PAA Series B Unit plus accumulated and unpaid distributions. As of February 28, 2023, the distribution rate was 8.974%.

See accompanying notes to financial statements.

 

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2023
(amounts in 000’s, except number of option contracts)
(UNAUDITED)

(10)  This company is structured like an MLP, but is not treated as a qualified publicly-traded partnership for RIC qualification purposes.

(11)  The Fund’s ownership of Plains AAP, L.P. (“PAGP-AAP”) is exchangeable on a one-for-one basis into either Plains GP Holdings, L.P. (“PAGP”) shares or 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, 2023, the Fund’s PAGP-AAP investment is valued at PAGP’s closing price. See Note 7 — Restricted Securities.

(12)  Security or a portion thereof is segregated as collateral on option contracts written.

(13)  For 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, the Fund includes Natural Gas & LNG Infrastructure Companies, Renewable Infrastructure Companies and certain Utility Companies as NextGen Companies.

(14)  The Fund believes that it is an affiliate of Streamline Innovations Holdings, Inc. (“Streamline”). See Note 5 — Agreements and Affiliations.

(15)  Streamline is a privately-held company. Streamline Series C Preferred Shares are convertible into common equity at any time at the Fund’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 on 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 Fund to achieve a 20.0% internal rate of return on its investment.

(16)  Security is non-income producing.

(17)  Algonquin Power & Utilities Corp. Convertible Preferred Units (“AQNU”) consist of a 1/20, or 5%, undivided beneficial interest in a $1,000 principal amount remarketable senior note of Algonquin Power & Utilities Corp. (“AQN”) due June 15, 2026, and a contract to purchase AQN common shares on June 15, 2024 based on a reference price determined by the volume-weighted average AQN common share price over the preceding 20 day trading period. AQNU pays quarterly distributions at a rate of 7.75% per annum.

(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, 2023.

At February 28, 2023, the Fund’s geographic allocation was as follows:

Geographic Location

      

% of Long-Term
Investments

United States

  

79.3%

Canada

  

15.4%

Europe/U.K.

  

5.3%

See accompanying notes to financial statements.