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Salient MLP & Energy Infrastructure Fund

Daily NAV

Updated: 3/27/17

Symbol
SMLPX
NAV
$8.89
Change
$-0.02
Inception Date
Sep 19, 2012
Net Assets (All Classes)
$1.57 B
Overview

Overview

The fund invests at least 80% of its net assets in securities of Master Limited Partnerships (MLPs) and energy infrastructure companies. These securities consist of common units, preferred units, subordinated units, general partner interests, common shares, and preferred shares in MLPs and energy infrastructure companies.

Three Things to Know

  • The fund offers access to an expansive universe of MLPs and MLP-related companies, providing the potential to capture a broad range of energy infrastructure opportunities.
  • The MLP investment team is based in Houston, Texas, and 65% of the total market capitalization of the midstream MLP universe is within minutes of the team’s headquarters.
  • The fund employs a regulated investment company (RIC) structure which is eligible for the pass-through tax treatment.

Process

Objective: The fund seeks to provide a high level of total return with an emphasis on making quarterly cash distributions to its shareholders.

The team starts with bottom-up research, focused on three critical factors:

  • Stability of the dividend or distribution
  • The 3-5 year estimated growth rate of the dividend or distribution
  • The current valuation relative to our proprietary assessment of the stock’s intrinsic value

Detailed models are built to understand an MLP’s:

  • Cash flow stability
  • Commodity price sensitivity
  • Growth profile
  • Distribution coverage
  • Cost of capital analysis
  • Balance sheet health (leverage profile)
  • Financing needs and other company specific factors

Five basic valuation approaches are used to better understand the security including:

  • Dividend discount models
  • An Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA ) multiple analysis
  • A distributable cash flow multiple analysis
  • Relative yield, and in special situations
  • In special situations, a sum-of-the-parts analysis.

Prior to May 1, 2016, Salient MLP & Energy Infrastructure Fund was named Salient MLP & Energy Infrastructure Fund II.

Team

Gregory A. Reid

President, Salient MLP Complex
Houston

Ted Gardner, CFA

Managing Director
Houston

Matt Hibbetts

Chief Operating Officer, MLP Complex
Houston

Parag Sanghani, CFA

Director of Research, MLP Complex
Houston

Scott Fogleman

Senior Analyst
Houston

Chance Pipitone

Senior Research Analyst
Houston

Dan Hinds, CFA

Senior Research Analyst
Houston

Eddie Rowe

Senior Research Analyst
Houston

Performance

Monthly Performance (%) as of 02/28/2017

  Feb'17 QTD YTD 1 YR 3 YR SINCE
INCEPTION
Institutional NAV -0.20 -1.27 -1.27 63.07 -6.05 3.29
Class A NAV* -0.22 -1.29 -1.29 62.91 -6.22 2.75
Class A MOP** -5.75 -6.70 -6.70 53.84 -7.98 1.37
Class C NAV† -0.32 -1.51 -1.51 61.40 -6.98 1.21
Class C MOP‡ -1.31 -2.48 -2.48 60.40 -6.98 1.21
R6 NAV -0.19 -1.26 -1.26 63.17 33.45
Alerian MLP Index 0.40 5.31 5.31 40.83 -4.29 1.88

Quarterly Performance (%) as of 12/31/2016

  Q4 YTD 1 YR 3 YR SINCE
INCEPTION
Institutional NAV 4.35 42.08 42.08 -4.73 3.73
Class A NAV* 4.28 41.90 41.90 -4.92 3.20
Class A MOP** -1.49 34.13 34.13 -6.69 1.75
Class C NAV† 4.10 40.66 40.66 -5.66 1.65
Class C MOP‡ 3.10 39.66 39.66 -5.66 1.65
R6 NAV 4.36 41.16 41.16
Alerian MLP Index 2.04 18.31 18.31 -5.80 0.73
Returns for periods greater than one year are annualized.
* Excludes sales charge.
** Reflects effects of the fund’s maximum sales charge of 5.50%.
† Excludes the effects of the 1% contingent deferred sales charge.
‡ Includes the effects of the 1% contingent deferred sales charge.
Performance data quoted represents past performance and does not guarantee future results. Investment returns and principal values will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown. Fund performance reflects any applicable fee waivers or expense reimbursements. Had fees not been waived and/or expenses reimbursed currently or in the past, returns would have been lower. All returns reflect reinvestment of all dividend and capital gain distributions. Index performance is shown for illustrative purposes only and does not reflect the payment of advisory fees and other expenses associated with an investment in a mutual fund. Investors cannot directly invest in an index. The performance shown is for the stated time period only; due to market volatility, each account’s performance may be different.
The share classes have different sales charges, fees and other features. Returns with sales charge reflect the deduction of current maximum front end sales charge of 5.50% for Class A shares, and the maximum contingent deferred sales charge of 1.00% which is applied to Class C shares upon which a finder’s fee has been paid and that are sold within one year of purchase. Class A shares are available with no front-end sales charge on investments of $1 million or more, and Class C shares are offered at NAV, without any initial sales charge. Class I shares are offered without any sales charge to certain institutional investors and affiliates of the Fund’s investment advisor. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.

Calendar Year Performance (%)

  2016201520142013
Institutional42.08-43.958.5633.46
Class A41.90-44.108.3533.14
Class C40.66-44.507.53
Alerian MLP Index18.31-32.594.8027.58

Expense Ratio as of 05/01/2016

  Gross Net
Class A 1.45% 1.45%
Class C 2.20% 2.20%
Institutional 1.20% 1.20%
R6 1.12% 1.12%

Annual Fund Operating Expenses includes management fees, distribution and service (12b-1) fees, acquired fund (subsidiary) fees and expenses, and “other expenses.”

This reflects the Advisor’s contractual waiver of a portion of its advisory fee and/or reimbursement of a portion of the Fund’s operating expenses, excluding certain expenses, such as taxes, brokerage commissions, interest, short dividend expense, acquired fund fees and expenses, litigation and extraordinary expenses. This waiver extends through July 31, 2017 and may be extended by the Advisor for an additional term.

Portfolio

Top 10 Holdings (% of Net Assets) as of 02/28/2017

A The Williams Companies, Inc. 8.10
B ONEOK, Inc. 6.45
C Plains GP Holdings LP, Class A 6.45
D Tallgrass Energy GP LP 6.04
E Targa Resources Corp. 5.78
F Macquarie Infrastructure Corp. 5.38
G Kinder Morgan, Inc. 5.05
H Enbridge, Inc. 4.85
I Enbridge Energy Management LLC 4.84
J EnLink Midstream LLC 4.62

These holdings may not reflect the current or future positions in the portfolio.


Sector Allocation (%) as of 02/28/2017

A Natural Gas Pipelines & Storage 37.32
B Liquids Transportation & Storage 31.74
C Gathering & Processing 13.96
D Other Energy & Infrastructure 10.01
E Refined Products 3.50
F Marine Midstream 2.63
G Cash and Other Assets 0.98

These allocations may not reflect the current or future positions in the portfolio. Percentages may not add to 100% due to rounding.


Asset Type Allocation (%) as of 02/28/2017

A Midstream Company 28.11
B MLP 24.54
C MLP Affiliate 19.39
D MLP General Partner 17.11
E Other Energy & Infrastructure 10.01
F Cash and Other Assets 0.98

These allocations may not reflect the current or future positions in the portfolio. Percentages may not add to 100% due to rounding.

Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Rate
Ex-Dividend /
Reinvest Date
Payable Date
Institutional Accrual Income Dividend 02/15/2017 $0.124 02/16/2017 02/17/2017
Class A Accrual Income Dividend 02/15/2017 $0.122 02/16/2017 02/17/2017
Class C Accrual Income Dividend 02/15/2017 $0.112 02/16/2017 02/17/2017
R6 Accrual Income Dividend 02/15/2017 $0.125 02/16/2017 02/17/2017

A final determination of the tax character of distributions paid by the fund will not be known until the completion of the fund’s fiscal year and there can be no assurance as to the portions of the fund’s distributions that will constitute return of capital and/or dividend income. The final determination of the tax character of distributions paid by the fund will be reported to shareholders in the January after fiscal year end on form 1099-DIV. Please consult your tax advisor for proper treatment on your tax return.

Effective January 1, 2011, issuers of corporate securities are required to complete Internal Revenue Service Form 8937 to report organizational actions, including nontaxable distributions, that affect the basis of the securities involved in the organizational action. The information contained below is intended to satisfy the requirements of public reporting under section 1.6045B-1(a)(3) and (b)(4) of the Treasury Regulations. Note that the signed version of the completed forms have been submitted to the Internal Revenue Service.

Salient does not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S., federal, state or local tax penalties. Please consult your advisor as to any tax, accounting or legal statements made herein.

Related Resources

Click here for fund-specific risks and definitions.

MLPs are entities structured as master limited partnerships, and their affiliates. Master limited partnerships are limited partnerships and limited liability companies that are publicly traded and are treated as partnerships for federal income tax purposes.

The Fund will invest primarily in companies located in North America, but the Fund may invest in companies located anywhere in the world.

The Fund is subject to certain MLP tax risks and risks associated with accounting for its deferred tax liability which could materially reduce the net asset value. An investment in the Fund does not offer the tax benefits of a direct investment in an MLP.

Investment Advisory Services for the Salient MLP & Energy Infrastructure Fund are offered through Salient Capital Advisors, LLC, a subsidiary of Salient Partners, L.P. Mutual Funds are distributed by Foreside Fund Services, LLC. The information contained herein does not constitute an offering of any security, product, service or fund. Salient funds are offered by prospectus and only to United States residents. The prospectus is available by clicking here.


You should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. A fund’s current prospectus contains this and other information about the fund. For mutual funds, a prospectus is available by calling 866-667-9228, on this website, or from your financial professional. For other Salient Funds, you should contact your financial professional. The prospectus should be read carefully before investing.

Fund Specific Risks

Salient MLP & Energy Infrastructure Fund

Word About Risk

The fund’s investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase price fluctuation. The value of commodity-linked investments such as the MLPs and Energy Infrastructure Companies (including Midstream MLPs and Energy Infrastructure Companies) in which the fund invests are subject to risks specific to the industry they serve, such as fluctuations in commodity prices, reduced volumes of available natural gas or other energy commodities, slowdowns in new construction and acquisitions, a sustained reduced demand for crude oil, natural gas and refined petroleum products, depletion of the natural gas reserves or other commodities, changes in the macroeconomic or regulatory environment, environmental hazards, rising interest rates and threats of attack by terrorists on energy assets, each of which could affect the fund’s profitability.

MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment including the risk that an MLP could lose its tax status as a partnership. If an MLP were to be obligated to pay federal income tax on its income at the corporate tax rate, the amount of cash available for distribution would be reduced and such distributions received by the fund would be taxed under federal income tax laws applicable to corporate dividends received (as dividend income, return of capital, or capital gain).

In addition, investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. Such companies may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement or difficulty in buying or selling.

Additional management fees and other expenses are associated with investing in MLP funds. The tax benefits received by an investor investing in the fund differs from that of a direct investment in an MLP by an investor.

No fund is a complete investment program and you may lose money investing in a fund. The fund may engage in other investment practices that may involve additional risks and you should review the fund prospectus for a complete description.

Principal Investment Risks

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. The Fund’s principal risk factors are listed below. The Fund’s shares will go up and down in price, meaning that you could lose money by investing in the Fund. Many factors influence a mutual fund’s performance. An investment in the Fund is not intended to constitute a complete investment program and should not be viewed as such. Before investing, be sure to read the additional descriptions of these risks beginning on page 60 of the prospectus.

As an overall matter, instability in the financial markets has led many governments, including the United States government, to take a number of unprecedented actions designed to support certain financial institutions and segments of the financial markets that have experienced extreme volatility and, in some cases, a lack of liquidity. Federal, state and other governments, and their regulatory agencies or self-regulatory organizations, may take actions that affect the regulation of the instruments in which the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Legislation or regulation may also change the way in which the Fund itself is regulated. Such legislation or regulation could limit or preclude the Fund’s ability to achieve its investment objective.

Risks of Investment Activities Generally

All securities investing and trading activities risk the loss of capital. No assurance can be given that the Fund’s investment activities will be successful or that the Fund’s shareholders will not suffer losses.

Concentration Risk

Under normal circumstances, the Fund concentrates its investments in the group of industries that comprise the energy infrastructure sector. A fund that invests primarily in a particular sector could experience greater volatility than funds investing in a broader range of industries.

Credit Risk

Credit risk refers to the possibility that the issuer of the security will not be able to make principal and interest payments when due. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation. Securities rated in the four highest categories (Standard & Poor’s (“S&P”) (AAA, AA, A and BBB), Fitch Ratings (“Fitch”) (AAA, AA, A and BBB) or Moody’s Investors Service, Inc. (“Moody’s”) (Aaa, Aa, A and Baa)) by the rating agencies are considered investment grade but they may also have some speculative characteristics, meaning that they carry more risk than higher rated securities and may have problems making principal and interest payments in difficult economic climates. Investment grade ratings do not guarantee that bonds will not lose value.

Debt Securities

Fixed-income securities generally are subject to credit risk and interest rate risk. Credit risk refers to the possibility that the issuer of a security will be unable to make interest payments and/or repay the principal on its debt. Interest rate risk refers to fluctuations in the value of a fixed-income security resulting from changes in the general level of interest rates. When the general level of interest rates goes up, the prices of most fixed-income securities go down. When the general level of interest rates goes down, the prices of most fixed-income securities go up.

Equity Securities Risk

Equity securities for MLPs and Energy Infrastructure Companies may be subject to general movements in the stock market, and a significant drop in the stock market may depress the price of securities to which the Fund has exposure.

High Portfolio Turnover Risk

To the extent that the Fund makes investments on a shorter-term basis the Fund may as a result trade more frequently and incur higher levels of brokerage fees and commissions.

Industry Specific Risk

The MLPs and Energy Infrastructure Companies, including Midstream MLPs and Energy Infrastructure Companies, in which the Fund invests are subject to risks specific to the industry they serve, including the following:

Interest Rate Risk

The yields for equity securities of MLPs and certain Midstream Energy Infrastructure Companies are susceptible in the short-term to fluctuations in interest rates, and the prices of such equity securities may decline when interest rates rise. Interest rate risk in general is the risk that prices of fixed income securities generally increase when interest rates decline and decrease when interest rates increase. The Fund decline in value or suffer losses if short term or long term interest rates rise sharply or otherwise change in a manner not anticipated by the Advisor.

Leverage Risk

The Fund may make investments in futures contracts, forward currency contracts and other derivative instruments. The futures contracts and certain other derivatives provide the economic effect of financial leverage by creating additional investment exposure, as well as the potential for greater loss. If the Fund uses leverage through activities such as borrowing, entering into short sales, purchasing securities on margin or on a “when-issued” basis or purchasing derivative instruments in an effort to increase its returns, the Fund has the risk of magnified losses that occur when losses affect an asset base, enlarged by borrowings or the creation of liabilities, that exceeds the net assets of the Fund. The net asset value of the Fund employing leverage will be more volatile and sensitive to market movements. Leverage may involve the creation of a liability that requires the Fund to pay interest.

Liquidity Risk

Although common units of MLPs trade on the exchanges, certain securities may trade less frequently than those of larger companies due to their smaller capitalizations. In the event certain securities experience limited trading volumes, the prices may display abrupt or erratic movements at times. Additionally, it may be more difficult for the Fund to buy and sell significant amounts of such securities without an unfavorable impact on prevailing market prices. As a result, these securities may be difficult to dispose of at a fair price at the times when the Advisor believes it is desirable to do so. The Fund’s investment in securities that are less actively traded or over time experience decreased trading volume may restrict its ability to take advantage of other market opportunities or to dispose of securities. This also may affect adversely the Fund’s ability to make dividend distributions. The Fund will not purchase or otherwise acquire any security if, as a result, more than 15% of its net assets would be invested in illiquid investments.

Manager Risk

If the Fund’s portfolio managers make poor investment decisions, it will negatively affect the Fund’s investment performance.

Market Risk

Market risk is the risk that the markets on which the Fund’s investments trade will increase or decrease in value. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. If there is a general decline in the securities and other markets, your investment in the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

Master Limited Partnership Risk

Investments in the debt and equity securities of MLPs involve risks that differ from investments in the debt and equity securities of corporate issuers, including risks related to limited control and limited rights to vote on matters affecting the partnership, risks related to potential conflicts of interest between the partnership and its general partner, cash flow risks, dilution risks and risks related to the general partner’s right to require unitholders to sell their common units at an undesirable time or price.

New Fund Risk

The Fund is newly-formed. Accordingly, investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategy, and may not employ a successful investment strategy, any of which could result in the Fund being liquidated at any time without shareholder approval and at a time that may not be favorable for all shareholders. Such a liquidation could have negative tax consequences for shareholders.

Non-Diversified Status Risk

The Fund is a non-diversified fund. Because the Fund may invest in securities of a smaller number of issuers, the Fund may be more exposed to the risks associated with and developments affecting an individual issuer than a fund that invests more widely, which may, therefore, have a greater impact on the Fund’s performance.

Small and Mid-Capitalization Securities Risk

The Fund may invest its assets in the common stocks and other equity securities of small and mid-capitalization companies with smaller market capitalizations. While the Advisor believes these investments may provide significant potential for appreciation, they involve higher risks in some respects than do investments in common stocks and other equity securities of larger companies. For example, prices of such investments are often more volatile than prices of large-capitalization stocks and other equity securities. In addition, due to thin trading in some such investments, an investment in these common stocks and other equity securities may be more illiquid than that of common stocks or other equity securities of larger market capitalization issuers (See “Liquidity Risk”). Smaller capitalization companies also fail more often than larger companies and may have more limited management and financial resources than larger companies.

Subsidiary Risk

To the extent the Fund invests in the Domestic Subsidiary, the Fund is indirectly exposed to the risks associated with the Domestic Subsidiary’s investments. MLP investments held by the Domestic Subsidiary are generally similar to those that are permitted to be held by the Fund and are subject to the same risks that apply to similar investments if held directly by the Fund (see “Master Limited Partnership Risk” above). There can be no assurance that the investment objective of the Domestic Subsidiary will be achieved. The Domestic Subsidiary is not registered under the Investment Company Act of 1940, as amended (“1940 Act”), and, unless otherwise noted in this prospectus, is not subject to all the investor protections of the 1940 Act. However, the Fund wholly owns and controls the Domestic Subsidiary, and the Fund and the Domestic Subsidiary are both managed by the Advisor, making it unlikely that the Domestic Subsidiary will take action contrary to the interests of the Fund and its shareholders. The Board has oversight responsibility for the investment activities of the Fund, including its investment in the Domestic Subsidiary, and the Fund’s role as sole shareholder of the Domestic Subsidiary. To the extent applicable to the investment activities of the Domestic Subsidiary, the Domestic Subsidiary will be subject to the same investment restrictions and limitations, and follow the same compliance policies and procedures, as the Fund. Changes in the laws of the United States including tax laws and regulations could result in the inability of the Fund and/or the Domestic Subsidiary to operate as described in this prospectus and the SAI and could adversely affect the Fund (see “Tax Risk” below).

Tax Risk

The Fund’s ability to meet its objective will depend, in part, on the level of taxable income and distributions received from the equity securities in which the Fund invests. If an MLP were treated as a corporation for federal income tax purposes, such MLP would be obligated to pay federal income tax on its income at the corporate tax rate and the amount of cash available for distribution would be reduced and distributions received by the Fund would be taxed under federal income tax laws applicable to corporate dividends (as dividend income, return of capital, or capital gain).

In addition, the Fund faces the risk that it could fail to qualify as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and the risk of changes in tax laws or regulations, or interpretations thereof, which could adversely affect any or all of the Fund, the MLPs and other portfolio companies in which the Fund invests. The federal, state, local and foreign tax consequences of an investment in Fund shares will depend on the facts of each investor’s situation. Investors are encouraged to consult their own tax advisors regarding the specific tax consequences that may affect such investors.

Tax Risk of Domestic Subsidiary C Corporation. To the extent the Fund invests in the Domestic Subsidiary and the Domestic Subsidiary invests in master limited partnerships, the Fund’s and Domestic Subsidiary’s investments on an aggregate basis in master limited partnerships are limited, at the time of investment, to no more than 25% of the Fund’s total assets, or otherwise within the limitations of the federal tax requirements of Subchapter M. Although, as a RIC, dividends received by the Fund from this taxable Domestic Subsidiary and distributed to shareholders may not be subject to federal income taxes at the RIC level, the taxable Domestic Subsidiary is generally subject to federal and state income taxes on its income, including any income the Domestic Subsidiary may recognize on the sale of an interest in a master limited partnership that it holds. As a result, the net return to the Fund on such investments that are held by the Domestic Subsidiary is reduced to the extent that the Domestic Subsidiary is subject to income taxes.

In calculating the Fund’s daily net asset value in accordance with generally accepted accounting principles, the Fund accounts for the deferred tax liability and/or asset balances of the Domestic Subsidiary, if any. The Domestic Subsidiary accrues a deferred income tax liability balance, at the currently effective statutory U.S. federal income tax rate (currently 35%) plus an estimated state and local income tax rate, for its future tax liability associated with the capital appreciation of its investments and the distributions received by it on equity securities of MLPs considered to be return of capital. Upon the Domestic Subsidiary’s sale of a portfolio security, the Domestic Subsidiary will be liable for previously deferred taxes. Any deferred tax liability balance of the Domestic Subsidiary will reduce the Fund’s net asset value.

Changes in tax laws or regulations, or interpretations thereof in the future, could adversely affect the Fund or the MLPs and Energy Infrastructure Companies in which the Fund invests. Any such changes could negatively impact the Fund’s common shareholders. Legislation could also negatively impact the amount and tax characterization of distributions received by the Fund’s common shareholders.

On August 2, 2013, the Internal Revenue Service (“IRS”) issued proposed regulations which, if ultimately adopted in their current form, would require the Fund, as any such regulation would be relevant to the Fund, to aggregate investment holdings of the Domestic Subsidiary with its direct investment holdings for purposes of determining whether more than 25% of its total assets are invested in the securities of one or more master limited partnerships. The Fund currently complies with such aggregate limitation. The proposed regulations would not impact Fund investments in affiliates of master limited partnerships or other Energy Infrastructure Companies structured as corporations. If the proposed regulations are adopted and finalized in their current form, the Fund would not be able to increase its overall investment in master limited partnerships, whether held in the Fund directly or held by the Domestic Subsidiary, to more than 25% of the Fund’s total assets.

The Fund may have investments that appreciate or decrease significantly in value over short periods of time. This may cause the Fund’s net asset value per share to experience significant appreciations or decreases in value over short periods of time.

Definition of Terms

The Alerian MLP Index is a composite of the 50 most prominent energy Master Limited Partnerships (MLPs) that provides investors with an unbiased, comprehensive benchmark for the MLP asset class. The index is calculated using a float-adjusted, capitalization-weighted methodology. While the Alerian MLP Index is comprised of the 50 most prominent energy MLPs, the Fund is not limited to investing only in Energy MLPs. Since inception returns for the index are shown from the Class I inception date.

Master limited partnerships (MLPs) are publicly traded limited partnerships and limited liability companies that are treated as partnerships for federal income tax purposes. Energy infrastructure companies are companies that own and operate assets that are used in the energy sector, including assets used in exploring, developing, producing, generating, transporting (including marine), transmitting, terminal operation, storing, gathering, processing, refining, distributing, mining or marketing of natural gas, natural gas liquids, crude oil, refined products, coal or electricity, or that provide energy-related services. For purposes of this definition, such companies (i) derive at least 50% of their revenues or operating income from operating such assets or providing services for the operation of such assets or (ii) have such assets that represent the majority of their assets.