Tortoise Announces Distribution Amounts and Dates for TYG, NTG, TTP, NDP, TPZ, TEAF
August 08 2019 - 6:15PM
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 a comprehensive review of all of our funds, we have
determined that 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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version on businesswire.com: https://www.businesswire.com/news/home/20190808005931/en/
Tortoise Pam Kearney, Investor and Public Relations (866)
362-9331 pkearney@tortoiseadvisors.com
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