Cohen & Steers MLP Income and Energy Opportunity Fund

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT COMPANY

Investment Company Act file number:    811-22780                                         

Cohen & Steers MLP Income and Energy Opportunity Fund, Inc.

 

Exact Name of Registrant (as specified in charter)

 

280 Park Avenue New York, NY    10017
Address of Principal Executive Office    (Zip code)

Francis C. Poli

280 Park Avenue

New York, NY 10017

 

Name and address of agent for service

Registrant telephone number, including area code:    (212) 832-3232                                         

Date of fiscal year end:    November 30                                        

Date of reporting period:    February 28, 2018                                        

 

 

 


Item 1. Schedule of Investments

 

 

 


COHEN & STEERS MLP INCOME AND ENERGY OPPORTUNITY FUND, INC.

SCHEDULE OF INVESTMENTS

February 28, 2018 (Unaudited)

 

                                                                       
                          Number
of Shares/Units
     Value  

MASTER LIMITED PARTNERSHIPS AND RELATED COMPANIES

     125.4     

COMPRESSION

     1.4     

Archrock Partners LP(a)

 

    287,640      $ 3,802,601  
       

 

 

 

CRUDE/REFINED PRODUCTS

     20.2     

Buckeye Partners LP(a)

 

    162,750        7,291,200  

Delek Logistics Partners LP(a)

 

    97,800        3,080,700  

Enbridge Energy Management LLC(a)

 

    404,388        4,763,691  

Genesis Energy LP(a)

 

    374,997        7,484,940  

Kinder Morgan Canada Ltd., 144A (CAD) (Canada)(a),(b)

 

    287,900        4,287,538  

Phillips 66 Partners LP(a)

 

    47,000        2,309,580  

Plains All American Pipeline LP(a)

 

    1,138,008        24,011,969  

SemGroup Corp., Class A(a)

 

    75,000        1,665,000  
       

 

 

 
          54,894,618  
       

 

 

 

DIVERSIFIED MIDSTREAM

     66.9     

Andeavor Logistics LP(a)

 

    344,649        16,019,286  

Energy Transfer Equity LP(a)

 

    559,913        8,678,651  

Energy Transfer Partners LP(a)

 

    2,115,433        38,522,035  

Enterprise Products Partners LP(a)

 

    1,814,787        46,131,886  

Kinder Morgan(a)

 

    363,279        5,885,120  

MPLX LP(a)

 

    982,587        33,928,729  

Pembina Pipeline Corp. (CAD) (Canada)

 

    107,893        3,469,190  

Williams Partners LP(a)

 

    805,609        29,195,270  
       

 

 

 
          181,830,167  
       

 

 

 

GATHERING & PROCESSING

     26.7     

American Midstream Partners LP(a)

 

    234,898        2,701,327  

Antero Midstream GP LP(a)

 

    357,745        6,618,282  

Crestwood Equity Partners LP(a)

 

    244,400        6,537,700  

Enable Midstream Partners LP(a)

 

    387,091        5,365,081  

EnLink Midstream Partners LP(a)

 

    265,000        3,869,000  

Hess Midstream Partners LP(a)

 

    271,218        5,418,936  

Noble Midstream Partners LP(a)

 

    125,906        6,068,669  

Oasis Midstream Partners LP(a)

 

    100,000        1,648,000  

ONEOK(a)

 

    87,098        4,906,230  

Rice Midstream Partners LP(a)

 

    339,875        6,461,024  

Summit Midstream Partners LP(a)

 

    292,233        4,924,126  

Tallgrass Energy Partners LP(a)

 

    116,899        4,483,077  

Targa Resources Corp.(a)

 

    85,425        3,814,226  

Western Gas Equity Partners LP(a)

 

    188,270        6,853,028  

 

1

 

 


                                                                       
                          Number
of Shares/Units
     Value  

Western Gas Partners LP(a)

 

    64,238      $ 2,990,279  
       

 

 

 
       72,658,985  
       

 

 

 

MARINE SHIPPING/OFFSHORE

     3.6     

GasLog Partners LP (Monaco)

 

    263,549        6,193,402  

Golar LNG Partners LP (Marshall Islands)

 

    190,517        3,522,659  
       

 

 

 
          9,716,061  
       

 

 

 

NATURAL GAS PIPELINES

     4.1     

Cheniere Energy Partners LP(a)

 

    255,354        7,486,979  

Cheniere Energy Partners LP Holdings LLC(a)

 

    141,288        3,799,234  
       

 

 

 
          11,286,213  
       

 

 

 

OTHER

     1.1     

Sprague Resources LP(a)

 

    132,345        3,143,194  
       

 

 

 

PROPANE

     0.7     

Suburban Propane Partners LP(a)

 

    79,629        1,839,430  
       

 

 

 

RENEWABLE ENERGY

     0.7     

Pattern Energy Group(a)

 

    101,759        1,889,665  
       

 

 

 

TOTAL MASTER LIMITED PARTNERSHIPS AND RELATED COMPANIES
(Identified cost—$337,628,866)

          341,060,934  
       

 

 

 

PREFERRED SECURITIES—$25 PAR VALUE

     5.6     

BANKS

     1.7     

Bank of America Corp., 6.00%, Series EE(c)

       63,725        1,678,517  

Citigroup, 6.30%, Series S(c)

       16,926        447,523  

GMAC Capital Trust I, 7.624%, due 2/15/40, Series 2 (TruPS) (FRN) (3 Month US LIBOR + 5.785%)(d)

       40,825        1,053,285  

JPMorgan Chase & Co., 6.125%, Series Y(c)

       10,600        277,614  

New York Community Bancorp, 6.375% to 3/17/27, Series A(c),(e)

       10,310        290,227  

Wells Fargo & Co., 5.85% to 9/15/23, Series Q(c),(e)

       22,275        591,401  

Wells Fargo & Co., 5.625%, Series Y(c)

       14,575        363,938  
       

 

 

 
          4,702,505  
       

 

 

 

CHEMICALS

     0.3     

CHS, 7.50%, Series 4(c)

       29,741        838,101  
       

 

 

 

DIVERSIFIED FINANCIAL SERVICES

     0.5     

Morgan Stanley, 5.85% to 4/15/27, Series K(c),(e)

       50,400        1,340,136  
       

 

 

 

 

2

 

 


                                                                       
           Number
of Shares/Units
     Value  

INDUSTRIALS—DIVERSIFIED MANUFACTURING

     0.1  

General Electric Co, 4.70%, due 5/16/53

       8,825      $ 218,242  
       

 

 

 

INSURANCE

     0.5     

PROPERTY CASUALTY—FOREIGN

     0.2     

Validus Holdings Ltd., 5.80%, Series B(c)

       17,442        442,155  
       

 

 

 

REINSURANCE—FOREIGN

     0.3     

Arch Capital Group Ltd., 5.45%, Series F(c)

       6,000        145,140  

Axis Capital Holdings Ltd., 5.50%, Series E(c)

       25,625        623,200  
       

 

 

 
          768,340  
       

 

 

 

TOTAL INSURANCE

          1,210,495  
       

 

 

 

INTEGRATED TELECOMMUNICATIONS SERVICES

     0.1     

AT&T, 5.35%, due 11/1/66

       15,000        376,350  
       

 

 

 

MARINE SHIPPING/OFFSHORE

     0.1     

GasLog Partners LP, 8.625% to 6/15/27, Series A (Monaco)(c),(e)

       11,000        290,950  
       

 

 

 

PIPELINES

     0.1     

NuStar Energy LP, 7.625% to 6/15/22, Series B(c),(e)

       13,494        305,369  
       

 

 

 

REAL ESTATE—DIVERSIFIED

     0.6     

VEREIT, 6.70%, Series F(c)

       67,237        1,686,976  
       

 

 

 

TECHNOLOGY—SOFTWARE

     0.3     

eBay, 6.00%, due 2/1/56

       30,997        811,192  
       

 

 

 

UTILITIES

     1.3     

DTE Energy Co., 6.00, due 12/15/76, Series F

       16,250        429,162  

Integrys Holdings, 6.00% to 8/1/23, due 8/1/73(e)

       18,029        482,276  

SCE Trust IV, 5.375% to 9/15/25, Series J(c),(e)

       20,160        511,056  

SCE Trust V, 5.45% to 3/15/26, Series K(c),(e)

       10,000        258,500  

Southern Co./The, 5.25%, due 12/1/77

       17,000        407,320  

Southern Co./The, 6.25%, due 10/15/75

       54,000        1,411,020  
       

 

 

 
          3,499,334  
       

 

 

 

TOTAL PREFERRED SECURITIES—$25 PAR VALUE
(Identified cost—$14,811,437)

 

       15,279,650  
       

 

 

 
           Principal
Amount
        

PREFERRED SECURITIES—CAPITAL SECURITIES

     5.7     

BANKS

     1.7     

Bank of America Corp., 8.125% to 5/15/18, Series M(c),(e)

     $ 750,000        762,188  

 

3

 

 


                                                                       
                          Principal
Amount
    Value  

Bank of America Corp., 6.25% to 9/5/24, Series X(c),(e)

 

  $ 950,000     $ 1,022,627  

Citigroup, 6.25% to 8/15/26, Series T(c),(e)

 

    375,000       403,594  

Citigroup, 5.90% to 2/15/23(a),(c),(e)

 

    750,000       776,250  

CoBank ACB, 6.25% to 10/1/22, Series F(c),(e)

 

    4,300 †      462,250  

Wells Fargo & Co., 7.98% to 3/15/18, Series K(a),(c),(e)

 

    865,000       880,137  

Wells Fargo Capital X, 5.95%, due 12/1/86, (TruPS)

 

    250,000       275,125  
      

 

 

 
         4,582,171  
      

 

 

 

BANKS—FOREIGN

     1.0    

Barclays PLC, 7.875% to 3/15/22 (United Kingdom)(c),(e)

 

    800,000       864,804  

Royal Bank of Scotland Group PLC, 8.625% to 8/15/21 (United Kingdom)(a),(c),(e)

 

    1,000,000       1,107,500  

Societe Generale SA, 7.375% to 9/13/21, 144A (France)(b),(c),(e)

 

    200,000       216,000  

Societe Generale SA, 7.875% to 12/18/23, 144A (France)(b),(c),(e)

 

    400,000       446,000  
      

 

 

 
         2,634,304  
      

 

 

 

INDUSTRIALS—DIVERSIFIED MANUFACTURING

     0.1    

General Electric Co., 5.00% to 1/21/21, Series D(c),(e)

 

    400,000       395,500  
      

 

 

 

INTEGRATED TELECOMMUNICATIONS SERVICES

     0.4    

Centaur Funding Corp., 9.08%, due 4/21/20, 144A (Cayman Islands)(b)

 

    500 †      558,467  

SoftBank Group Corp., 6.00% to 7/19/23 (Japan)(c),(e)

 

    200,000       193,794  

SoftBank Group Corp., 6.875% to 7/19/27 (Japan)(c),(e)

 

    200,000       197,965  
      

 

 

 
         950,226  
      

 

 

 

MATERIAL—METALS & MINING

     0.3    

BHP Billiton Finance USA Ltd., 6.75% to 10/19/25, due 10/19/75, 144A (Australia)(a),(b),(e)

 

    800,000       910,000  
      

 

 

 

PIPELINES

     0.9    

Enbridge, 6.00% to 1/15/27, due 1/15/77, Series 16-A (Canada)(e)

 

    218,000       221,270  

Enbridge, 6.25% to 3/1/28 due 3/1/78 (Canada)(e)

 

    250,000       252,922  

Enterprise Products Operating LP, 5.481%, due 8/1/66, Series A, (FRN) (3 Month US LIBOR + 3.7075%)(d)

 

    139,000       138,479  

Plains All American Pipeline LP, 6.125% to 11/15/22,
Series B(a),(c),(e)

 

    851,000       838,235  

 

4

 

 


                                                              
                          Principal
Amount
     Value  

Transcanada Trust, 5.875% to 8/15/26, due 8/15/76, Series 16-A (Canada)(a),(e)

 

  $ 936,000      $ 1,008,540  
       

 

 

 
          2,459,446  
       

 

 

 

UTILITIES

     1.3     

Emera, 6.75% to 6/15/26, due 6/15/76, Series 16-A (Canada)(e)

 

    600,000        669,000  

Enel SpA, 8.75% to 9/24/23, due 9/24/73, 144A (Italy)(b),(e)

 

    1,800,000        2,172,150  

Southern California Edison Co., 6.25% to 2/1/22, Series E(c),(e)

 

    350,000        367,325  

Southern Co./The, 5.50% to 3/15/22, due 3/15/57, Series B(a),(e)

 

    400,000        416,801  
       

 

 

 
          3,625,276  
       

 

 

 

TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES
(Identified cost—$15,117,876)

 

       15,556,923  
       

 

 

 
           Number
of Shares
        

SHORT-TERM INVESTMENTS

     2.0     

MONEY MARKET FUNDS

       

State Street Institutional Treasury Money Market Fund, Premier Class, 1.33%(f)

 

    5,266,262        5,266,262  
       

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Identified cost—$5,266,262)

 

       5,266,262  
       

 

 

 

TOTAL INVESTMENTS IN SECURITIES (Identified cost—$372,824,441)

     138.7        377,163,769  

LIABILITIES IN EXCESS OF OTHER ASSETS

     (38.7        (105,256,580
  

 

 

      

 

 

 

NET ASSETS (Equivalent to $10.15 per share based on 26,793,340 shares of common stock outstanding)

     100.0      $ 271,907,189  
  

 

 

      

 

 

 

 

5

 

 


Glossary of Portfolio Abbreviations

 

CAD   

Canadian Dollar

FRN   

Floating Rate Note

LIBOR   

London Interbank Offered Rate

TruPS   

Trust Preferred Securities

 

Note: Percentages indicated are based on the net assets of the Fund.

Represents shares.

(a)

All or a portion of the security is pledged as collateral in connection with the Fund’s credit agreement. $212,856,519 in aggregate has been pledged as collateral.

(b)

Resale is restricted to qualified institutional investors. Aggregate holdings amounted to $8,590,155 or 3.2% of the net assets of the Fund, of which 0.0% are illiquid.

(c)

Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. The date indicated, if any, represents the next call date.

(d)

Variable rate. Rate shown is in effect at February 28, 2018.

(e)

Security converts to floating rate after the indicated fixed-rate coupon period.

(f)

Rate quoted represents the annualized seven-day yield of the fund.

 

6

 

 


COHEN & STEERS MLP INCOME AND ENERGY OPPORTUNITY FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)

 

Note 1. Portfolio Valuation

Investments in securities that are listed on the New York Stock Exchange (NYSE) are valued, except as indicated below, at the last sale price reflected at the close of the NYSE on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the closing bid and ask prices on such day or, if no ask price is available, at the bid price.

Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges (including NASDAQ) are valued in a similar manner. Securities traded on more than one securities exchange are valued at the last sale price reflected at the close of the exchange representing the principal market for such securities on the business day as of which such value is being determined. If after the close of a foreign market, but prior to the close of business on the day the securities are being valued, market conditions change significantly, certain non-U.S. equity holdings may be fair valued pursuant to procedures established by the Board of Directors.

Readily marketable securities traded in the over-the-counter (OTC) market, including listed securities whose primary market is believed by Cohen & Steers Capital Management, Inc. (the investment advisor) to be OTC, are valued on the basis of prices provided by a third-party pricing service or third-party broker-dealers when such prices are believed by the investment advisor, pursuant to delegation by the Board of Directors, to reflect the fair value of such securities.

Fixed-income securities are valued on the basis of prices provided by a third-party pricing service or third-party broker-dealers when such prices are believed by the investment advisor, pursuant to delegation by the Board of Directors, to reflect the fair value of such securities. The pricing services or broker-dealers use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services or broker-dealers may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services or broker-dealers also utilize proprietary valuation models which may consider market transactions in comparable securities and the various relationships between securities in determining fair value and/or characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features which are then used to calculate the fair values.

Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates fair value. Investments in open-end mutual funds are valued at their closing net asset value (NAV).

The policies and procedures approved by the Fund’s Board of Directors delegate authority to make fair value determinations to the investment advisor, subject to the oversight of the Board of Directors. The investment advisor has established a valuation committee (Valuation Committee) to administer, implement and oversee the fair valuation process according to the policies and procedures approved annually by the Board of Directors. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

 

 

 


COHEN & STEERS MLP INCOME AND ENERGY OPPORTUNITY FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

Securities for which market prices are unavailable, or securities for which the investment advisor determines that the bid and/or ask price or a counterparty valuation does not reflect market value, will be valued at fair value, as determined in good faith by the Valuation Committee, pursuant to procedures approved by the Fund’s Board of Directors. Circumstances in which market prices may be unavailable include, but are not limited to, when trading in a security is suspended, the exchange on which the security is traded is subject to an unscheduled close or disruption or material events occur after the close of the exchange on which the security is principally traded. In these circumstances, the Fund determines fair value in a manner that fairly reflects the market value of the security on the valuation date based on consideration of any information or factors it deems appropriate. These may include, but are not limited to, recent transactions in comparable securities, information relating to the specific security and developments in the markets.

Foreign equity fair value pricing procedures utilized by the Fund may cause certain non-U.S. equity holdings to be fair valued on the basis of fair value factors provided by a pricing service to reflect any significant market movements between the time the Fund values such securities and the earlier closing of foreign markets.

The Fund’s use of fair value pricing may cause the NAV of Fund shares to differ from the NAV that would be calculated using market quotations. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security.

Fair value is defined as the price that the Fund would expect to receive upon the sale of an investment or expect to pay to transfer a liability in an orderly transaction with an independent buyer in the principal market or, in the absence of a principal market, the most advantageous market for the investment or liability. The hierarchy of inputs that are used in determining the fair value of the Fund’s investments is summarized below.

 

   

Level 1 – quoted prices in active markets for identical investments

   

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.)

   

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing investments may or may not be an indication of the risk associated with those investments.

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfer at the end of the period in which the underlying event causing the movement occurred. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. There were no transfers between Level 1 and Level 2 investments as of February 28, 2018.

 

 

 


COHEN & STEERS MLP INCOME AND ENERGY OPPORTUNITY FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

The following is a summary of the inputs used as of February 28, 2018 in valuing the Fund’s investments carried at value:

 

                                                                                   
     Total      Quoted Prices in
Active Markets
for Identical
Investments
(Level 1)
     Other
Significant
Observable
Inputs

(Level 2)
     Significant
Unobservable
Inputs

(Level 3)
 

Master Limited Partnerships and Related Companies

   $ 341,060,934      $ 341,060,934      $      $             —  

Preferred Securities—$25 Par Value:

               

Utilities

     3,499,334        3,017,058        482,276     

Other Industries

     11,780,316        11,780,316                

Preferred Securities—Capital Securities

     15,556,923               15,556,923         

Short-Term Investments

     5,266,262               5,266,262         
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Investments in Securities(a)

   $ 377,163,769      $ 355,858,308      $ 21,305,461      $  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)

Portfolio holdings are disclosed individually on the Schedule of Investments.

 

 

 


Item 2. Controls and Procedures

 

(a)

The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)).

 

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)).

 

(a)

Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

COHEN & STEERS MLP INCOME AND ENERGY OPPORTUNITY FUND, INC.

 

By:   /s/ Adam M. Derechin
 

Name: Adam M. Derechin

Title: President and Principal Executive Officer

 

        Date: April 20, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:   /s/ Adam M. Derechin     By:   /s/ James Giallanza
 

Name: Adam M. Derechin

Title: President and Principal Executive Officer

     

Name: James Giallanza

Title: Principal Financial Officer

          Date: April 20, 2018