FEI News and Press, First Trust MLP and Energy Income Fund of Beneficial Interest From 10/19/22

Summary Energy infrastructure companies continue to make strides with clean energy initiatives – announcing new partnerships, projects, and acquisitions. From renewable fuels to carbon capture to hydrogen, the provisions in the Inflation Reduction Act support clean energy i...

Summary The U.S. Dollar has appreciated massively against most other currencies. This has important investment implications; it is a negative for some stocks but it can be positive for certain positions in the fixed income sector. The strong dollar is also a relevant considera...

Summary The Organization of the Petroleum Exporting Countries and its allies on 5 October announced plans to reduce oil production quotas by 2 million barrels a day (b/d) starting in November. While the oil market has rallied on the OPEC+ announcement, this retracement is rather m...

Summary FEI is a closed-end energy infrastructure fund founded in 2012. Its 10-year total return is a loss. Its holdings are primarily petroleum-centric, as opposed to natural gas or NGL-oriented. Its principal risks are economic recession, high interest rates, and a stron...

Summary RICs cannot own more than 25% MLPs, and as a result, these funds tend to have lower yields than C-Corp funds that are 90-100% MLPs. Investors can gain exposure to MLPs through exchange-traded notes, which are unsecured debt obligations of an issuer. Investors can gain ...

First Trust MLP&Energy Income Fund ( NYSE: FEI ) had declared $0.05/share monthly dividend, in line with previous. Payable Oct. 17; for shareholders of record Oct. 4; ex-div Oct. 3. See FEI Dividend Scorecard, Yield Chart, & Dividend Growth. For further d...

Summary There are two types of MLP funds – those structured as RICs, which own up to 25% MLPs, and those structured as corporations, which tend to be 90-100% MLPs. Similar to direct MLP investment, return of capital distributions from an MLP fund structured as a corporation...

Summary The energy markets have been volatile for most of 2022, continuing a two-year trend that dates to the early days of the coronavirus pandemic. The rising rig count and share buyback and M&A activity in midstream, especially in the Permian Basin, indicate strength in the...

Summary MLPs are pass-through entities that enjoy special tax treatment. As pass-through entities, MLPs avoid the double-taxation associated with investments in C-Corporations. Typically, 70-100% of MLP distributions have been considered a tax-deferred return of capital, which mea...

Summary Recent U.S. legislation alters the trajectory of GHG emissions and expands the opportunity set for midstream issuers. The bill enhances and expands the incentives for a diverse array of investments, enabling decarbonization across the U.S. economy. The strength of IRA ...