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Tortoise Announces Distribution Amounts and Dates for TYG, NTG, TTP, NDP, TPZ, TEAF

LEAWOOD, Kan.--(BUSINESS WIRE)--

TYG, NTG, TTP, NDP, TPZ, and TEAF declared the following distributions today:

Fund

Ticker

Distribution
Amount

 

 

 

Tortoise Energy Infrastructure Corp.

TYG

$0.6550

Tortoise Midstream Energy Fund, Inc.

NTG

$0.4225

Tortoise Pipeline & Energy Fund, Inc.

TTP

$0.2850

Tortoise Energy Independence Fund, Inc.

NDP

$0.1000

Tortoise Power and Energy Infrastructure Fund, Inc.

TPZ

$0.1250

Tortoise Essential Assets Income Term Fund

TEAF

$0.1085

“Following our quarterly comprehensive review of all funds and their distribution levels, we have determined TTP and NDP will decrease third quarter distributions to $0.2850 and $0.1000, respectively,” said Brad Adams, CEO of Tortoise’s closed-end funds. “NDP and TTP generate a significant amount of investment income from investing in oil and gas producers. The continued weak stock price performance of oil and gas producers has made generating the historical level of covered call income unachievable and resulted in elevated fund leverage.”

In addition, NDP revised its non-fundamental investment policy effective immediately to reduce the threshold level invested in equity securities of upstream energy companies from at least 70% of total assets to at least 50%. “The next phase of U.S. energy independence is the U.S. becoming a net exporter to the rest of the world,” said Senior Portfolio Manager Rob Thummel. “The modification to our non-fundamental investment policy allows us to expand NDP’s investment universe to capture export opportunities in the midstream and downstream sectors. This broader strategy allows for a more diversified portfolio with approximately 60% upstream, 22% midstream and 18% downstream that should decrease portfolio risk and increase total return potential for shareholders. Both TTP and NDP will also seek to enhance return potential by writing covered calls further out of the money to capture more capital appreciation.”

“We recognize the importance of delivering predictable and sustainable distributions to shareholders,” said Adams. “We believe these changes will provide the portfolio management team more flexibility to manage the funds for long-term distribution sustainability, allow for an improved leverage profile and provide a better balance between distributions and capital appreciation with less reliance on covered call writing to generate income.”

“While performance of oil and gas producers has been negative since our last fiscal year end, midstream energy has had positive performance with continued growth in earnings driving higher distributions from underlying portfolio holdings in TYG, NTG and TPZ,” said Adams. “Therefore, those funds maintained distributions as we continue to see strong fundamentals in the midstream and power energy sectors. It’s important to note that TTP is a pipeline and energy fund with a portfolio broader than solely midstream energy and its exposure to oil and gas producers has impacted its ability to generate its historical level of income.”

TEAF has made significant progress towards its direct investment goal with a strong pipeline of future investments and has maintained its monthly distribution.

The TYG, NTG, TTP and NDP quarterly distributions are payable on Aug. 30, 2019 to stockholders of record on Aug. 23, 2019.

The TPZ and TEAF monthly distributions are payable on Sept. 30, 2019, Oct. 31, 2019 and Nov. 29, 2019 to stockholders of record on the respective dates of Sept. 23, 2019, Oct. 24, 2019 and Nov. 22, 2019.

To learn more about our 3rd quarter distribution announcement and our outlook for the energy sector, listen to our special podcast here.

For book purposes, the source of distributions for TYG and NTG are estimated to be 100% return of capital. The source of distributions for NDP is estimated to be approximately 90-100% ordinary income, with the remainder as return of capital, and the source of distributions for TEAF is estimated to be approximately 80-90% ordinary income, with the remainder as return of capital. For tax purposes, the characterization will not be made until determination of earnings and profits after year end.

You should not draw any conclusions about TTP’s or TPZ’s investment performance from the amount of these distributions or from the terms of TTP’s or TPZ’s distribution policy.

TTP and TPZ estimate that they have distributed more than their income and net realized capital gains; therefore, a portion of the distribution may be return of capital. A return of capital may occur, for example, when some or all of the money that you invested in TTP and TPZ is paid back to you. A return of capital distribution does not necessarily reflect TTP’s and TPZ’s investment performance and should not be confused with “yield” or “income.”

TTP and TPZ will report the sources for their distributions at the time of the payment in the applicable Section 19(a) Notice. The amounts and sources of distributions TTP and TPZ report are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon TTP’s and TPZ’s investment experience during the remainder of their fiscal years and may be subject to changes based on tax regulations. TTP and TPZ will each send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

About Tortoise

Tortoise invests in essential assets – those assets and services that are indispensable to the economy and society. With a steady wins approach and a long-term perspective, Tortoise strives to make a positive impact on clients and communities. For additional information, please visit tortoiseadvisors.com

Safe Harbor Statement

This press release shall 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 Statement Regarding Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the funds and Tortoise Capital Advisors believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the fund’s reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the funds and Tortoise Capital Advisors do not assume a duty to update this forward-looking statement.

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