SOURCE: Kayne Anderson Energy Total Return Fund

February 02, 2007 09:50 ET

Kayne Anderson Energy Total Return Fund Announces Its Net Asset Value at January 31, 2007

LOS ANGELES, CA -- (MARKET WIRE) -- February 2, 2007 -- Kayne Anderson Energy Total Return Fund, Inc. (the "Fund") (NYSE: KYE) today announced its net asset value at January 31, 2007.

At January 31, 2007, the Fund's net assets were $827 million and its net asset value per share was $25.92 based on 31.9 million shares outstanding.

As of January 31, 2007, equity and fixed income investments were 84% and 16%, respectively, of the Fund's total long-term investments of $1.1 billion. Long-term investments were comprised of MLPs and MLP Affiliates (45%), Canadian Income Trusts (21%), Marine Energy Transportation (15%), Coal Companies (7%) and U.S. Royalty Trusts and Other Energy Companies (12%). At January 31, 2007, the Fund's total assets were $1.1 billion.

The Fund's ten largest holdings by issuer (excluding short-term investments) at January 31, 2007 were:

                                                       Amount   Percent of
                                                      ($ in     Long-Term
                                                      millions) Investments
                                                     ---------- ----------
1.  Kinder Morgan Management, LLC (MLP Affiliate)    $    111.7       10.3%
2.  Plains All American Pipeline, L.P. (Pipeline MLP)      75.4        6.9
3.  Enterprise Products Partners L.P. (Pipeline MLP)       42.4        3.9
4.  Crosstex Energy, Inc. (MLP Affiliate)                  36.6        3.4
5.  Kinder Morgan, Inc. (MLP Affiliate)                    27.8        2.5
6.  Enbridge Energy Management (MLP Affiliate)             24.5        2.2
7.  Penn West Energy Trust (Canadian Royalty Trust)        24.4        2.2
8.  Harvest Energy Trust (Canadian Royalty Trust)          23.8        2.2
9.  Bonavista Energy Trust (Canadian Royalty Trust)        21.3        2.0
10. Seaspan Corporation (Marine Transportation)            21.2        1.9
The Fund is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940. The Fund's investment objective is to obtain a high total return with an emphasis on current income by investing primarily in securities of companies engaged in the energy industry, principally including publicly-traded energy-related master limited partnerships and limited liability companies taxed as partnerships and their affiliates, energy-related U.S. and Canadian royalty trusts and income trusts and other companies that derive at least 50% of their revenues from operating assets used in, or providing energy-related services for, the exploration, development, production, gathering, transportation, processing, storing, refining, distribution, mining or marketing of natural gas, natural gas liquids (including propane), crude oil, refined petroleum products or coal.

This press release does not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

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 materially differ from the Fund's historical experience and its present expectations or projections indicated in any forward-looking statement. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; energy industry risk; commodity pricing risk; leverage risk; valuation risk; non-diversification risk; interest rate risk; tax risk; and other risks discussed in the Fund's 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 Fund's investment objectives will be attained.

February 2, 2007