Kayne Anderson Midstream/Energy Fund Provides Unaudited Balance Sheet Information and Announces Its Net Asset Value and Asset Coverage Ratios at December 31, 2011

Kayne Anderson Midstream/Energy Fund, Inc. (the Fund) (NYSE:
KMF) today provided a summary unaudited balance sheet and announced
its net asset value and asset coverage ratios under the Investment
Company Act of 1940 (the 1940 Act) as of December 31, 2011. As of
December 31, 2011, the Funds net assets were $591 million and its
net asset value per share was $27.29. As of December 31, 2011, the
Funds asset coverage ratio under the 1940 Act with respect to
senior securities representing indebtedness was 504% and the Funds
asset coverage ratio under the 1940 Act with respect to total
leverage (debt and preferred stock) was 411%. Kayne
Anderson Midstream/Energy Fund, Inc. Balance Sheet December 31,
2011 (Unaudited) (in millions)
Per Share Investments $ 789.7 $ 36.45 Cash 4.9 0.23 Deposits 0.2
0.01 Accrued income 2.8 0.13 Receivable for securities sold 2.4
0.11 Other assets 2.1 0.10 Total assets 802.1 37.03
Credit facility borrowings 40.0 1.85 Senior notes 115.0 5.31
Preferred stock 35.0 1.61 Total leverage 190.0
8.77 Distribution payable 9.0 0.42 Payable for
securities purchased 7.5 0.35 Other liabilities 4.4
0.20 Total liabilities 20.9 0.97 Net assets $ 591.2 $ 27.29
The Fund had 21.66 million common shares outstanding as of
December 31, 2011. As of December 31, 2011, equity and debt
investments were 85% and 15%, respectively, of the Funds long-term
investments of $790 million. Long-term investments were comprised
of Midstream Companies (38%), MLPs and MLP Affiliates (39%), Other
Energy (5%), Other (3%) and Debt (15%). The Funds ten largest
holdings by issuer at December 31, 2011 were:
Units (in thousands)
Amounts ($ millions) Percent of Long-Term Investments 1. Kinder
Morgan Management, LLC (MLP Affiliate) 925 $72.6 9.2% 2. The
Williams Companies, Inc. (Midstream Company) 2,188 59.1 7.5% 3.
Kinder Morgan, Inc. (Midstream Company) 1,620 52.1 6.6% 4. El Paso
Corporation (Midstream Company) 1,331 35.4 4.5% 5. Enbridge Energy
Management, L.L.C. (MLP Affiliate) 955 33.2 4.2% 6. Buckeye
Partners, L.P. (Midstream MLP) 531 32.2 4.1% 7. Targa Resources
Corp. (Midstream Company) 693 28.2 3.6% 8. ONEOK, Inc. (Midstream
Company) 258 22.4 2.8% 9. OGE Energy Corp. (Other Energy) 388 22.0
2.8% 10. Teekay Offshore Partners, L.P. (Midstream Company) 734
19.3 2.4% The Fund is a non-diversified, closed-end
management investment company registered under the Investment
Company Act of 1940 whose common stock is traded on the NYSE. The
Funds investment objective is to provide a high level of total
return with an emphasis on making quarterly cash distributions to
its stockholders by investing at least 80% of its total assets in
securities of companies in the Midstream/Energy Sector, consisting
of: (a) Midstream Master Limited Partnerships (MLPs), (b) Midstream
Companies, (c) Other MLPs and (d) Other Energy Companies. The Fund
anticipates that the majority of its investments will consist of
investments in Midstream MLPs and Midstream Companies. See Glossary
of Key Terms on page ii of the Prospectus for definitions of
certain key terms. CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS: This press release contains "forward-looking
statements" as defined under the U.S. federal securities laws.
Generally, the words "believe," "expect," "intend," "estimate,"
"anticipate," "project," "will" and similar expressions identify
forward-looking statements, which generally are not historical in
nature. Forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ from the
Funds historical experience and its present expectations or
projections indicated in any forward-looking statements. These
risks include, but are not limited to, changes in economic and
political conditions; regulatory and legal changes; MLP industry
risk; leverage risk; valuation risk; interest rate risk; tax risk;
and other risks discussed in the Funds filings with the SEC. You
should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. The Fund undertakes
no obligation to publicly update or revise any forward-looking
statements made herein. There is no assurance that the Funds
investment objective will be attained.