TYN Tortoise North American Energy Corp

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Item 1. Report to Stockholders.

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January 12, 2012

Dear Fellow Stockholders,

Our fiscal year ended Nov. 30, 2011 marked a year of memorable headlines in the broader markets. Macroeconomic events weighed on the broader equity market, particularly in late summer and early fall. Global markets saw significant volatility as Eurozone debt concerns took center stage, coupled with concerning news on the home front including a U.S. sovereign debt downgrade and slower than anticipated economic growth. While there were times when most asset classes moved together with knee-jerk reactions in the short-term, the market recognized quality over longer periods, as evidenced by the performance of MLPs.

Master Limited Partnership Sector Review and Outlook

During the fiscal year ended November 30, 2011, MLPs, as measured by the Tortoise MLP Index ^® , outperformed the S&P 500, posting a total return of 9.9 percent compared to the S&P 500 total return of 7.8 percent for the same period. In 2011, MLPs once again delivered on their attractive investment merits of stable yield and distribution growth potential. The yield of the Tortoise MLP Index ^TM as of Nov. 30, 2011 was 6.5 percent and average distribution growth is expected to be approximately 6 percent in 2011. We believe the fundamental drivers remain in place to support even stronger growth in 2012.

TYN primarily invests in equity securities of upstream and midstream MLPs. Upstream MLPs continued to purchase long-life reserves, extend hedges to minimize cash flow volatility and execute on internal drilling programs to boost production volumes. Certain upstream MLPs should see future benefits stemming from their exposure to emerging new supply sources of crude oil and natural gas from unconventional basins, such as the Granite Wash and the Utica Shale. Midstream MLPs continued to grow distributions from cash flow generated by internal growth projects as well as acquisitions.

In 2011, MLPs spent $12 billion building new energy infrastructure assets such as pipelines, processing plants and storage facilities. Additionally, 2011 acquisition levels remained elevated, with over $30 billion in announced MLP acquisitions of assets from both publicly traded corporations as well as private companies. Energy Transfer Equity’s pending $9 billion acquisition of Southern Union would be one of the largest MLP acquisitions in history. Significant investment in North American oil and gas shales by large global energy companies are continuing to validate the game-changing events taking place in North American energy. We expect additional need for growth capital for fiscal 2012, with accompanying MLP distribution growth of 6 percent to 8 percent.

Company Performance Review and Outlook

Our total assets increased from $193.8 million on Nov. 30, 2010, to $208.0 million on Nov. 30, 2011, resulting primarily from net realized and unrealized gains on investments as well as approximately $6 million in new leverage proceeds. Our market-based total return was 5.4 percent and our NAV-based total return was 3.7 percent (both including the reinvestment of distributions) for the fourth fiscal quarter ended Nov. 30, 2011. For fiscal year 2011, our market-based total return was 4.8 percent and our NAV-based total return was 7.6 percent.

During the fiscal year, our performance was positively impacted by investment in certain upstream MLPs as well as petroleum pipeline MLPs. Gathering and processing MLPs and natural gas pipeline MLPs performed well as a result of infrastructure growth projects, offset slightly by the performance of propane and gas storage MLPs.

(Unaudited)
		2011 Annual Report		1

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We paid a distribution of $0.3825 per share ($1.53 annualized) to our stockholders on Nov. 30, 2011, an increase of 0.7 percent quarter-over-quarter and an increase of 3.4 percent year-over-year. This represented an annualized yield of 6.4 percent based on our fiscal year closing price of $24.05. Our distribution coverage (distributable cash flow divided by distributions) for the fiscal year was 111 percent. For tax purposes, distributions to stockholders for 2011 were 100 percent qualified dividend income.

We ended our fiscal year with leverage at 15.0 percent of total assets, below our long-term target of 20 percent. We continue to seek to emphasize quality through a conservative leverage policy. As of Nov. 30, 2011, our leverage had a weighted average cost of 2.4 percent, with nearly 80 percent at fixed rates.

Additional information about our financial performance is available in the Key Financial Data and Management’s Discussion of this report.

Conclusion

We continue to expect substantial growth activity in our nation’s shales to drive infrastructure build-out. We also expect upstream MLPs to acquire, as well as expand, crude oil and natural gas reserves. We believe the investment merits of midstream and upstream MLPs are particularly attractive as a result of this opportunity. We look forward to serving you as your professional MLP investment adviser to navigate the course ahead, with an investment philosophy anchored in quality.

Sincerely,

The Managing Directors
Tortoise Capital Advisors, L.L.C.
The adviser to Tortoise North American Energy Corp.

H. Kevin Birzer	Zachary A. Hamel	Kenneth P. Malvey
Terry Matlack	David J. Schulte

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The information presented below regarding Distributable Cash Flow and Selected Operating Ratios is supplemental non-GAAP financial information, which we believe is meaningful to understanding our operating performance. The Selected Operating Ratios are the functional equivalent of EBITDA for non-investment companies, and we believe they are an important supplemental measure of performance and promote comparisons from period-to-period. Supplemental non-GAAP measures should be read in conjunction with our full financial statements.

		Year Ended November 30,								2010				2011
		2010		2011		Q4 (1)		Q1 (1)		Q2 (1)		Q3 (1)		Q4 (1)
Total Distributions Received from Investments
Distributions received from master limited partnerships		$	9,704			$	11,224			$	2,556			$	2,666			$	2,736			$	2,876			$	2,946
Dividends paid in stock			1,679				1,379				393				404				364				339				272
Dividends from common stock			758				740				188				191				190				222				137
Interest and dividend income			409				94				95				48				46				—				—
Other income			—				368				—				22				60				—				286
Total from investments		12,550				13,805					3,232				3,331				3,396				3,437				3,641
Operating Expenses Before Leverage Costs
and Current Taxes
Advisory fees, net of expense reimbursement			1,515				1,912				419				459				498				483				472
Other operating expenses			553				497				126				128				129				126				114
			2,068				2,409				545				587				627				609				586
Distributable cash flow before leverage costs and current taxes		10,482					11,396				2,687				2,744				2,769				2,828				3,055
Leverage costs (2)			1,040				814				260				257				260				117				180
Current income tax expense			27				30				9				3				9				9				9
Distributable Cash Flow (3)		$	9,415			$	10,552			$	2,418			$	2,484			$	2,500			$	2,702			$	2,866
Distributions paid on common stock		$	9,294			$	9,506			$	2,330			$	2,345			$	2,361			$	2,392			$	2,408
Distributions paid on common stock per share		1.4800				1.5100					0.3700			0.3725					0.3750				0.3800				0.3825
Payout percentage for period (4)			98.7	%			90.1	%			96.4	%			94.4	%			94.4	%			88.5	%			84.0	%
Net realized gain (loss), net of income taxes, for the period			3,024				13,689				(810	)			636				7,040				851				5,162
Total assets, end of period		193,819				208,041				193,819				211,932				207,450				200,317				208,041
Average total assets during period (5)		170,320				205,491				185,678				202,187				211,556				205,974				203,054
Leverage (6)		25,400					31,300				25,400				24,700				26,500				26,100				31,300
Leverage as a percent of total assets			13.1	%			15.0	%			13.1	%			11.7	%			12.8	%			13.0	%			15.0	%
Net unrealized appreciation, net of income taxes, end of period		56,146					54,362				56,146				67,646				58,667				53,928				54,362
Net assets, end of period		154,289				155,942				154,289				163,963				159,100				152,721				155,942
Average net assets during period (7)		141,986				157,410				151,466				158,748				162,099				155,864				152,909
Net asset value per common share			24.51				24.77				24.51				26.04				25.27				24.26				24.77
Market value per common share			24.44				24.05				24.44				25.50				24.41				23.19				24.05
Shares outstanding		6,295,750				6,295,750				6,295,750				6,295,750				6,295,750				6,295,750				6,295,750
Selected Operating Ratios (8)
As a Percent of Average Total Assets
Total distributions received from investments			7.37	%			6.72	%			6.98	%			6.68	%			6.37	%			6.62	%			7.19	%
Operating expenses before leverage costs and current taxes			1.21	%			1.17	%			1.18	%			1.18	%			1.18	%			1.17	%			1.16	%
Distributable cash flow before leverage costs and current taxes			6.16	%			5.55	%			5.80	%			5.50	%			5.19	%			5.45	%			6.03	%
As a Percent of Average Net Assets
Distributable cash flow (3)			6.63	%			6.70	%			6.40	%			6.35	%			6.12	%			6.88	%			7.52	%

(1)	Q1 is the period from December through February. Q2 is the period from March through May. Q3 is the period from June through August. Q4 is the period from September through November.
(2)	Leverage costs include interest expense and other recurring leverage expenses.
(3)	“Net investment income (loss), before income taxes” on the Statement of Operations is adjusted as follows to reconcile to Distributable Cash Flow (DCF): increased by the return of capital on MLP distributions, the value of paid-in-kind distributions, distributions included in direct placement discounts, and amortization of debt issuance costs; and decreased by current taxes paid on net investment income.
(4)	Distributions paid as a percentage of Distributable Cash Flow.
(5)	Computed by averaging month-end values within each period.
(6)	Leverage consists of long-term debt obligations and short-term borrowings.
(7)	Computed by averaging daily values within each period.
(8)	Annualized for periods less than one full year. Operating ratios contained in our Financial Highlights are based on average net assets.

		2011 Annual Report		3

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Management’s Discussion  (Unaudited)

The information contained in this section should be read in conjunction with our Financial Statements and the Notes thereto. In addition, this report contains certain forward-looking statements. These statements include the plans and objectives of management for future operations and financial objectives and can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” or “continue” or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors that could cause actual results and conditions to differ materially from those projected in these forward-looking statements are set forth in the “Risk Factors” section of our public filings with the SEC.

Overview

Tortoise North American Energy Corp.’s (“TYN” or the “Company”) investment objective is to seek a high level of total return for our stockholders, with an emphasis on distribution income paid to stockholders. Our investment strategy requires us to invest at least 80 percent of our total assets in equity securities of companies in the energy sector with their primary operations in North America, including energy infrastructure, oil and gas exploitation and energy shipping companies. The equity securities of the energy companies purchased by TYN consist primarily of interests in MLPs. MLPs are publicly traded partnerships whose equity interests are traded in the form of units on public exchanges, such as the NYSE or NASDAQ. We invest primarily in MLPs through public market and private purchases. While we are a registered investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), we are not a “regulated investment company” for federal tax purposes. Our distributions do not typically generate unrelated business taxable income (“UBTI”) and our stock may therefore be suitable for holding by pension funds, IRAs and mutual funds, as well as taxable accounts. Tortoise Capital Advisors, L.L.C. serves as our investment adviser.

Company Update

Total assets increased approximately $7.7 million during the 4th quarter primarily as a result of increased market values of our MLP investments. Although quarter-end total assets increased, average total assets for the quarter decreased as compared to 3rd quarter 2011, resulting in decreased asset-based expenses. Distribution increases from our MLP investments were in-line with our expectations. Total leverage as a percent of total assets increased approximately 2.0 percent during the quarter as a result of increased use of our margin loan facility and we increased our quarterly distribution to $0.3825 per share. Additional information on these events and results of our operations are discussed in more detail below.

Critical Accounting Policies

The financial statements are based on the selection and application of critical accounting policies, which require management to make significant estimates and assumptions. Critical accounting policies are those that are both important to the presentation of our financial condition and results of operations and require management’s most difficult, complex, or subjective judgments. Our critical accounting policies are those applicable to the valuation of investments, tax matters and certain revenue recognition matters as discussed in Note 2 in the Notes to Financial Statements.

Determining Distributions to Stockholders

Our portfolio generates cash flow from which we pay distributions to stockholders. Our Board of Directors considers our current and estimated future distributable cash flow (“DCF”) in determining distributions to stockholders. Our Board of Directors reviews the distribution rate quarterly, and may adjust the quarterly distribution throughout the year. Our goal is to declare what we believe to be sustainable increases in our regular quarterly distributions with increases safely covered by earned DCF.

Determining DCF

DCF is simply distributions received from investments less expenses. The total distributions received from our investments include the amount received by us as cash distributions from MLPs, paid-in-kind distributions, and dividend and interest payments. The total expenses include current or anticipated operating expenses, leverage costs and current income taxes (excluding taxes generated from realized gains). Realized gains, expected tax benefits and deferred taxes are not included in our DCF.

The Key Financial Data table discloses the calculation of DCF and should be read in conjunction with this discussion. The difference between distributions received from investments in the DCF calculation and total investment income as reported in the Statement of Operations, is reconciled as follows: the Statement of Operations, in conformity with U.S. generally accepted accounting principles (“GAAP”), recognizes distribution income from MLPs and common stock on their ex-dates, whereas the DCF calculation reflects distribution income on their pay dates; GAAP recognizes that a significant portion of the cash distributions received from MLPs are characterized as a return of capital and therefore excluded from investment income, whereas the DCF calculation includes the return of capital; and distributions received from investments in the DCF calculation include the value of dividends paid-in-kind (additional stock or MLP units), whereas such amounts are not included as income for GAAP purposes, and includes distributions related to direct investments when the purchase price is reduced in lieu of receiving cash distributions. The treatment of expenses in the DCF calculation also differs from what is reported in the Statement of Operations. In addition to the total operating expenses, including expense reimbursement, as disclosed in the Statement of Operations, the DCF calculation reflects interest expense, realized and unrealized gains (losses) on interest rate swap settlements, other leverage expenses, and current taxes paid on net investment income. A reconciliation of Net Investment Loss, before Income Taxes to DCF is included below.

Distributions Received from Investments

Our ability to generate cash is dependent on the ability of our portfolio of investments to generate cash flow from their operations. In order to maintain and grow distributions to our stockholders, we evaluate each holding based upon its contribution to our investment income, our anticipation of its growth rate, and its risk relative to other potential investments.

4

Tortoise North American Energy Corp.

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Management’s Discussion  (Unaudited) (Continued)

We concentrate on investments we believe can expect an increasing demand for services from economic and population growth. We seek well-managed businesses with hard assets and stable recurring revenue streams.

Total distributions received from our investments for the 4th quarter 2011 was approximately $3.6 million, representing a 12.7 percent increase as compared to 4th quarter 2010 and an increase of approximately 5.9 percent as compared to 3rd quarter 2011. These changes reflect increases in per share distribution rates on our MLP investments, distributions received from additional investments funded with leverage proceeds and the receipt of non-recurring income of approximately $286,000, offset by the impact of trading activity wherein certain investments with higher current yields and lower expected future growth were sold and replaced with investments that had lower current yields and higher expected future growth.

Expenses

We incur two types of expenses: (1) operating expenses, consisting primarily of the advisory fee, and (2) leverage costs. On a percentage basis, operating expenses before leverage costs and current taxes were an annualized 1.16 percent of average total assets for the 4th quarter 2011 as compared to 1.18 percent for the 4th quarter 2010 and 1.17 percent for the 3rd quarter 2011.

Advisory fees for the 4th quarter 2011 decreased 2.3 percent from 3rd quarter 2011 as a result of decreased average managed assets for the quarter as discussed above. While the contractual advisory fee of 1.00 percent of average monthly managed assets remains unchanged, the Adviser waived an amount equal to 0.10 percent of average managed assets through December 31, 2010, and has agreed to a waiver of 0.05 percent of average managed assets for the period from January 1, 2011 through December 31, 2011. Other operating expenses decreased approximately $12,000 as compared to 3rd quarter 2011, primarily as a result of reduced professional fees.

Leverage costs consist of two major components: (1) the direct interest expense, which will vary from period to period as our margin borrowing facility has a variable interest rate, and (2) the realized and unrealized gain or loss on our interest rate swap settlements. Detailed information on our margin borrowing facility is included in the Liquidity and Capital Resources section below.

Total leverage costs were approximately $180,000 for the 4th quarter 2011 compared to $117,000 for the 3rd quarter 2011. The cost of interest rate swaps, as outlined below, increased our leverage costs as compared to the 3rd quarter 2011. Our average annualized total cost of leverage, including interest rate swaps, was 2.36 percent as of November 30, 2011. This compares favorably with our historical average annualized total cost of leverage of approximately 3.90 percent.

As indicated in Note 11 of our Notes to Financial Statements, we have entered into $25 million notional amount of interest rate swap contracts with The Bank of Nova Scotia in an attempt to reduce a portion of the interest rate risk arising from our leveraged capital structure. TYN has agreed to pay The Bank of Nova Scotia a fixed rate while receiving a floating rate based upon the 1-month U.S. Dollar London Interbank Offered Rate (“LIBOR”). The spread between the fixed swap rate and LIBOR is reflected in our Statement of Operations as a realized or unrealized gain when LIBOR exceeds the fixed rate (The Bank of Nova Scotia pays TYN the net difference) or a realized or unrealized loss when the fixed rate exceeds LIBOR (TYN pays The Bank of Nova Scotia the net difference). The interest rate swap contracts have a weighted average fixed rate of 1.70 percent and weighted average remaining maturity of approximately 6.8 years at November 30, 2011. This swap arrangement effectively fixes the cost on approximately 80 percent of our outstanding leverage as of November 30, 2011 over the remaining swap period.

Interest accrues on the margin facility at a rate equal to 1-month LIBOR plus 0.85 percent and unused balances are subject to a fee of 0.25 percent. The annual rate of leverage may vary in future periods as a result of changes in LIBOR, the utilization of our margin facility, and maturity of our interest rate swap contracts. Additional information on our leverage is disclosed below in Liquidity and Capital Resources and in our Notes to Financial Statements.

Distributable Cash Flow

For 4th quarter 2011, our DCF was approximately $2.9 million, an increase of 6.1 percent as compared to 3rd quarter 2011. The change is the net result of changes to distributions and expenses as outlined above. We declared a distribution of $2.4 million, or $0.3825 per share, during the quarter. This is an increase of 3.4 percent as compared to the per share distribution paid for 4th quarter 2010 and a 0.7 percent increase compared to 3rd quarter 2011.

Our dividend payout ratio as a percentage of DCF decreased from 88.5 percent for 3rd quarter 2011 to 84.0 percent for 4th quarter 2011. This decrease is the net result of the change in distributions and expenses, including leverage costs and non-recurring income, as outlined above. Excluding the non-recurring income received in the 4th quarter 2011, our DCF payout ratio would have been 93.3 percent. A payout of less than 100 percent of DCF provides cushion for on-going management of the portfolio, changes in leverage costs and other expenses. An on-going payout ratio in excess of 100 percent will, over time, erode the earning power of a portfolio and may lead to lower distributions or portfolio managers taking on more risk than they otherwise would.

Net investment loss before income taxes on the Statement of Operations is adjusted as follows to reconcile to DCF for 2011 YTD and the 4th quarter 2011 (in thousands):

		2011 YTD		4th Qtr 2011
Net Investment Income (Loss), before Income Taxes		$	(1,182	)			$	69
Adjustments to reconcile to DCF:
Dividends paid in stock			1,379					272
Distributions characterized as return of capital			10,450					2,625
Distribution included in direct placement discount			16					—
Amortization of debt issuance costs			10					—
Interest rate swap expenses			(91	)				(91	)
Current income tax expenses			(30	)				(9	)
DCF		$	10,552				$	2,866

2011 Annual Report

5

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Management’s Discussion  (Unaudited) (Continued)

We had total assets of $208 million at year-end. Our total assets reflect the value of our investments, which are itemized in the Schedule of Investments. It also reflects cash, interest and receivables and any expenses that may have been prepaid. During 4th quarter 2011, total assets increased by approximately $7.7 million. This change was primarily the result of a $6.6 million increase in the value of our investments as reflected by the change in realized and unrealized gains on investments (excluding return of capital on distributions), net purchases during the quarter of $2.3 million and a decrease in receivable for investments sold of approximately $1.2 million during the quarter.

Total leverage outstanding at November 30, 2011 was $31.3 million, an increase of $5.2 million as compared to August 31, 2011. Total leverage represented 15.0 percent of total assets, an increase from 13.0 percent of total assets at August 31, 2011 and from 13.1 percent of total assets at November 30, 2010. On an adjusted basis to reflect the payment of the 3rd quarter 2011 distribution at the beginning of the 4th quarter 2011, total leverage increased by approximately $2.8 million and represented 13.9 percent of total assets. Our leverage as a percent of total assets remains below our long-term target level of 20 percent of total assets. This allows the opportunity to add leverage when compelling investment opportunities arise. Temporary increases to up to 25 percent of our total assets may be permitted, provided that such leverage is consistent with the limits set forth in the 1940 Act, and that such leverage is expected to be reduced over time in an orderly fashion to reach our long-term target. Our leverage ratio is impacted by increases or decreases in MLP values, issuance of equity and/or the sale of securities where proceeds are used to reduce leverage.

We have used leverage to acquire securities consistent with our investment philosophy. The terms of our leverage are governed by regulatory and contractual asset coverage requirements that arise from the use of leverage. Additional information on our leverage and asset coverage requirements is discussed in Note 10 in the Notes to Financial Statements. Our coverage ratio is updated each week on our Web site at www.tortoiseadvisors.com.

Taxation of our Distributions and Income Taxes

We invest in partnerships that generally have cash distributions in excess of their income for accounting and tax purposes. Accordingly, the distributions include a return of capital component for accounting and tax purposes. Distributions declared and paid by us in a year generally differ from taxable income for that year, as such distributions may include the distribution of current year taxable income or return of capital.

The taxability of the distribution you receive depends on whether we have annual earnings and profits (“E&P”). E&P is primarily comprised of the taxable income from MLPs with certain specified adjustments as reported on annual K-1s, fund operating expenses and net realized gains. If we have E&P, it is first allocated to preferred shares (if any) and then to the common shares.

In the event we have E&P allocated to our common shares, all or a portion of our distribution will be taxable at the 15 percent Qualified Dividend Income (“QDI”) rate, assuming various holding requirements are met by the stockholder. The 15 percent QDI rate is currently effective through 2012. The portion of our distribution that is taxable may vary for either of two reasons: first, the characterization of the distributions we receive from MLPs could change annually based upon the K-1 allocations and result in less return of capital and more in the form of income. Second, we could sell an MLP investment and realize a gain or loss at any time. It is for these reasons that we inform you of the tax treatment after the close of each year as the ultimate characterization of our distributions is undeterminable until the year is over.

For tax purposes, distributions to common stockholders for the fiscal year ended 2011 were 100 percent qualified dividend income. This information is reported to stockholders on Form 1099-DIV and is available on our Web site at www.tortoiseadvisors.com. For book purposes, the source of distributions to common stockholders for the fiscal year ended 2011 was 100 percent return of capital.

The unrealized gain or loss we have in the portfolio is reflected in the Statement of Assets and Liabilities. At November 30, 2011, our investments are valued at $207.8 million, with an adjusted cost of $140.3 million. The $67.5 million difference reflects unrealized gain that would be realized for financial statement purposes if those investments were sold at those values. The Statement of Assets and Liabilities also reflects either a net deferred tax liability or net deferred tax asset depending primarily upon unrealized gains (losses) on investments, realized gains (losses) on investments, capital loss carryforwards and net operating losses. At November 30, 2011, the balance sheet reflects a net deferred tax liability of approximately $19.9 million or $3.16 per share. Accordingly, our net asset value per share represents the amount which would be available for distribution to stockholders after payment of taxes. Details of our deferred taxes are disclosed in Note 5 in our Notes to Financial Statements.

As of November 30, 2011, we had approximately $15 million in capital loss carryforwards and $11 million in net operating losses. To the extent we have taxable income that is not offset by either capital loss carryforwards or net operating losses, we will owe federal and state income taxes. Tax payments can be funded from investment earnings, fund assets or borrowings. Details of our taxes are disclosed in Note 5 in our Notes to Financial Statements.

6

Tortoise North American Energy Corp.

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Schedule of Investments November 30, 2011

		Shares		Fair Value
Master Limited Partnerships and
Related Companies — 129.0% (1)
Crude/Refined Products Pipelines — 41.6% (1)
United States — 41.6% (1)
Buckeye Partners, L.P. (2)		172,400		$	10,999,120
Enbridge Energy Management, L.L.C. (2)(3)		142,870			4,551,830
Enbridge Energy Partners, L.P. (2)		140,319			4,345,679
Holly Energy Partners, L.P. (2)		79,900			4,452,028
Kinder Morgan Management, LLC (2)(3)		137,198			9,709,516
Magellan Midstream Partners, L.P. (2)		177,900			11,382,042
NuStar Energy L.P. (2)		81,800			4,485,912
Oiltanking Partners, L.P.		22,900			659,520
Plains All American Pipeline, L.P. (2)		107,600			6,978,936
Sunoco Logistics Partners L.P. (2)		63,100			6,515,706
Tesoro Logistics LP (2)		29,700			809,622
					64,889,911
Natural Gas/Natural Gas Liquids Pipelines — 48.3% (1)
United States — 48.3% (1)
Boardwalk Pipeline Partners, LP (2)		161,312			4,187,660
El Paso Pipeline Partners, L.P. (2)		386,510			12,665,933
Energy Transfer Equity, L.P. (2)		73,200			2,583,228
Energy Transfer Partners, L.P. (2)		177,840			7,782,278
Enterprise Products Partners L.P. (2)(4)		309,650			14,085,978
Niska Gas Storage Partners LLC		44,183			427,691
ONEOK Partners, L.P. (2)		156,200			7,897,472
PAA Natural Gas Storage, L.P.		46,718			817,098
Regency Energy Partners LP (2)		412,000			9,480,120
Spectra Energy Partners, LP (2)		136,600			4,134,882
TC PipeLines, LP (2)		74,400			3,539,952
Williams Partners L.P. (2)		134,100			7,785,846
					75,388,138
Natural Gas Gathering/Processing — 17.0% (1)
United States — 17.0% (1)
Chesapeake Midstream Partners, L.P. (2)		94,400			2,474,224
Copano Energy, L.L.C. (2)		152,916			5,061,520
Crestwood Midstream Partners LP		13,005			388,459
Crestwood Midstream Partners, LP (3)		85,878			2,565,176
DCP Midstream Partners, LP (2)		51,500			2,209,865
MarkWest Energy Partners, L.P. (2)		113,900			6,109,596
Targa Resources Partners LP (2)		130,155			4,884,717
Western Gas Partners LP		73,700			2,777,016
					26,470,573
Oil and Gas Production — 19.6% (1)
United States — 19.6% (1)
BreitBurn Energy Partners L.P. (2)		163,700			3,028,450
Encore Energy Partners LP (2)		132,100			2,648,605
EV Energy Partners, L.P. (2)		124,700			8,510,775
Legacy Reserves, LP (2)		126,600			3,395,412
Linn Energy, LLC (2)		229,397			8,352,345
Pioneer Southwest Energy Partners L.P. (2)		150,900			4,588,869
					30,524,456
Propane Distribution — 1.4% (1)
United States — 1.4% (1)
Inergy, L.P. (2)		86,790			2,098,582
Shipping — 1.1% (1)
Republic of the Marshall Islands — 1.1% (1)
Teekay LNG Partners L.P. (2)		53,500			1,722,165
Total Master Limited Partnerships and
Related Companies (Cost $134,208,284)					201,093,825
Common Stock — 4.2% (1)
Shipping — 4.2% (1)
Republic of the Marshall Islands — 4.2% (1)
Navios Maritime Partners L.P.		228,748			3,124,698
Teekay Offshore Partners L.P. (2)		73,200			2,041,548
Teekay Offshore Partners L.P. (5)		53,975			1,371,505
Total Common Stock (Cost $5,964,517)					6,537,751
Short-Term Investment — 0.1% (1)
United States Investment Company — 0.1% (1)
Fidelity Institutional Money Market Portfolio —
Class I, 0.18% (6) (Cost $176,319)		176,319			176,319
Total Investments — 133.3% (1)
(Cost $140,349,120)					207,807,895
Interest Rate Swap Contracts — (0.3%) (1)
$25,000,000 notional — Unrealized Depreciation (7)					(400,566	)
Other Assets and Liabilities — (33.0%) (1)					(51,465,689	)
Total Net Assets Applicable to Common
Stockholders — 100.0% (1)				$	155,941,640

(1)	Calculated as a percentage of net assets applicable to common stockholders.
(2)	All or a portion of the security is segregated as collateral for the margin borrowing facility. See Note 10 to the financial statements for further disclosure.
(3)	Security distributions are paid-in-kind.
(4)	All or a portion of the security is segregated as collateral for the unrealized depreciation of interest rate swap contracts of $400,566.
(5)	Restricted securities have been fair valued in accordance with procedures approved by the Board of Directors and have a total fair value of $1,371,505, which represents 0.9% of net assets. See Note 7 to the financial statements for further disclosure.
(6)	Rate reported is the current yield as of November 30, 2011.
(7)	See Note 11 to the financial statements for further disclosure.

See accompanying Notes to Financial Statements.

2011 Annual Report

7

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Statement of Assets & Liabilities November 30, 2011

Assets
Investments at fair value (cost $140,349,120)		$	207,807,895
Cash			29,372
Receivable for Adviser expense reimbursement			16,875
Receivable for investments sold			95,007
Prepaid expenses and other assets			92,316
Total assets			208,041,465
Liabilities
Payable to Adviser			337,509
Accrued expenses and other liabilities			151,846
Unrealized depreciation of interest rate swap contracts			400,566
Deferred tax liability			19,909,904
Short-term borrowings			31,300,000
Total liabilities			52,099,825
Net assets applicable to common stockholders		$	155,941,640
Net Assets Applicable to Common Stockholders Consist of:
Capital stock, $0.001 par value; 6,295,750 shares issued and
outstanding (100,000,000 shares authorized)		$	6,296
Additional paid-in capital			106,761,934
Accumulated net investment loss, net of income taxes			(579,433	)
Accumulated net realized loss, net of income taxes			(4,609,109	)
Net unrealized appreciation of investments and
interest rate swap contracts, net of income taxes			54,361,952
Net assets applicable to common stockholders		$	155,941,640
Net Asset Value per common share outstanding
(net assets applicable to common stock,
divided by common shares outstanding)		$	24.77

Statement of Operations Year Ended November 30, 2011

Investment Income
Distributions from master limited partnerships		$	11,208,361
Less return of capital on distributions			(10,449,418	)
Net distributions from master limited partnerships			758,943
Dividend income			740,300
Interest income			93,490
Dividends from money market mutual funds			213
Other income			367,706
Total Investment Income			1,960,652
Operating Expenses
Advisory fees			2,021,834
Professional fees			174,178
Administrator fees			80,876
Directors’ fees			66,687
Stockholder communication expenses			56,623
Fund accounting fees			37,359
Registration fees			24,675
Custodian fees and expenses			14,367
Stock transfer agent fees			10,998
Other operating expenses			30,885
Total Operating Expenses			2,518,482
Leverage Expenses
Interest expense			706,426
Amortization of debt issuance costs			10,514
Other leverage expenses			16,757
Total Leverage Expenses			733,697
Total Expenses			3,252,179
Less expense reimbursement by Adviser			(109,284	)
Net Expenses			3,142,895
Net Investment Loss, before Income Taxes			(1,182,243	)
Current tax expense			(14,786	)
Deferred tax benefit			451,594
Income tax benefit, net			436,808
Net Investment Loss			(745,435	)
Realized and Unrealized Gain on Investments
and Interest Rate Swaps
Net realized gain on investments			22,046,120
Net realized loss on interest rate swap settlements			(62,164	)
Net realized gain, before income taxes			21,983,956
Current tax expense			(30,000	)
Deferred tax expense			(8,265,179	)
Income tax expense			(8,295,179	)
Net realized gain on investments
and interest rate swaps			13,688,777
Net unrealized depreciation of investments			(2,465,346	)
Net unrealized depreciation of interest rate swap contracts			(400,566	)
Net unrealized depreciation, before income taxes			(2,865,912	)
Deferred tax benefit			1,081,391
Net unrealized depreciation of investments
and interest rate swap contracts			(1,784,521	)
Net Realized and Unrealized Gain on Investments
and Interest Rate Swaps			11,904,256
Net Increase in Net Assets Applicable to Common Stockholders
Resulting from Operations		$	11,158,821

See accompanying Notes to Financial Statements.

8

Tortoise North American Energy Corp.

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S TATEMENT OF  C HANGES IN  N ET A SSETS Year Ended November 30

		2011		2010
Operations
Net investment loss		$	(745,435	)		$	(540,554	)
Net realized gain on investments and interest rate swaps			13,688,777				3,023,685
Net unrealized appreciation (depreciation) of investments and interest rate swap           contracts			(1,784,521	)			33,743,451
Net increase in net assets applicable to common stockholders resulting from                operations			11,158,821				36,226,582
Distributions to Common Stockholders
Net investment income			—				—
Return of capital			(9,506,583	)			(9,293,612	)
Total distributions to common stockholders			(9,506,583	)			(9,293,612	)
Capital Stock Transactions
Issuance of 33,090 common shares from reinvestment of distributions to           stockholders			—				747,127
Net increase in net assets applicable to common stockholders from capital                stock transactions			—				747,127
Total increase in net assets applicable to common stockholders			1,652,238				27,680,097
Net Assets
Beginning of year			154,289,402				126,609,305
End of year		$	155,941,640			$	154,289,402
Undistributed (accumulated) net investment income (loss), net of income taxes,           end of year		$	(579,433	)		$	166,002

See accompanying Notes to Financial Statements.

2011 Annual Report

9

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S TATEMENT OF  C ASH F LOWS Year Ended November 30, 2011

Cash Flows from Operating Activities
Distributions received from master limited partnerships		$	11,208,361
Interest and dividend income received			842,981
Purchases of long-term investments			(60,961,942	)
Proceeds from sales of long-term investments			55,777,594
Interest received on securities sold			153,653
Purchases of short-term investments, net			(78,133	)
Payments for interest rate swap contracts, net			(62,164	)
Other income received			367,640
Interest expense paid			(890,718	)
Income taxes paid			(60,584	)
Operating expenses paid			(2,417,780	)
Net cash provided by operating activities			3,878,908
Cash Flows from Financing Activities
Advances from revolving line of credit			21,050,000
Repayments on revolving line of credit			(31,450,000	)
Advances from margin loan facility			40,600,000
Repayments on margin loan facility			(9,300,000	)
Maturity of long-term debt obligations			(15,000,000	)
Distributions paid to common stockholders			(9,749,536	)
Net cash used in financing activities			(3,849,536	)
Net change in cash			29,372
Cash — beginning of year			—
Cash — end of year		$	29,372
Reconciliation of net increase in net assets applicable to
common stockholders resulting from operations to net cash
provided by operating activities
Net increase in net assets applicable to common
stockholders resulting from operations		$	11,158,821
Adjustments to reconcile net increase in net assets
applicable to common stockholders resulting from
operations to net cash provided by operating activities:
Purchases of long-term investments			(60,961,942	)
Proceeds from sales of long-term investments			55,870,744
Purchases of short-term investments, net			(78,133	)
Payments for interest rate swap contracts, net			(62,164	)
Return of capital on distributions received			10,449,418
Deferred tax expense			6,732,194
Net unrealized depreciation of investments
and interest rate swap contracts			2,865,912
Net realized gain on investments and
interest rate swap contracts			(21,984,022	)
Amortization of market premium, net			11,072
Amortization of debt issuance costs			10,514
Changes in operating assets and liabilities:
Decrease in interest and dividend receivable			151,596
Increase in receivable for investments sold			(93,150	)
Decrease in prepaid expenses and other assets			12,825
Decrease in current tax liability			(15,000	)
Increase in payable to Adviser, net of
expense reimbursement			32,887
Decrease in accrued expenses and other liabilities			(222,664	)
Total adjustments			(7,279,913	)
Net cash provided by operating activities		$	3,878,908

See accompanying Notes to Financial Statements.

10

Tortoise North American Energy Corp.

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Financial Highlights  Year Ended November 30

		2011		2010		2009		2008		2007
Per Common Share Data (1)
Net Asset Value, beginning of year		$	24.51			$	20.22			$	10.78			$	27.25			$	23.70
Income (Loss) from Investment Operations
Net investment income (loss) (2)			(0.12	)			(0.09	)			0.25				0.43				0.72
Net realized and unrealized gain (loss)
on investments and interest rate swaps                contracts (2)			1.89				5.86				10.67				(15.14	)			4.47
Total income (loss) from investment                     operations			1.77				5.77				10.92				(14.71	)			5.19
Distributions to Preferred Stockholders
Net investment income			—				—				—				—				(0.12	)
Net realized gain			—				—				—				—				(0.07	)
Return of capital			—				—				—				(0.17	)			—
Total distributions to preferred stockholders			—				—				—				(0.17	)			(0.19	)
Distributions to Common Stockholders
Net investment income			—				—				—				—				(0.90	)
Net realized gain			—				—				—				(0.10	)			(0.55	)
Return of capital			(1.51	)			(1.48	)			(1.48	)			(1.49	)			—
Total distributions to common stockholders			(1.51	)			(1.48	)			(1.48	)			(1.59	)			(1.45	)
Net Asset Value, end of year		$	24.77			$	24.51			$	20.22			$	10.78			$	27.25
Per common share market value, end of year		$	24.05			$	24.44			$	19.49			$	9.25			$	23.10
Total Investment Return Based on Market           Value (3)			4.77	%			33.62	%			131.66	%			(55.98	)%			9.28	%
Supplemental Data and Ratios
Net assets applicable to common stockholders,           end of year (000’s)		$	155,942			$	154,289			$	126,609			$	49,716			$	125,702
Average net assets (000’s)		$	157,410			$	141,986			$	80,041			$	113,045			$	125,379
Ratio of Expenses to Average Net Assets
Advisory fees			1.28	%			1.19	%			1.13	%			1.50	%			1.45	%
Other expenses			0.32				0.38				1.01				0.48				0.40
Expense reimbursement			(0.07	)			(0.12	)			(0.12	)			(0.23	)			(0.29	)
Subtotal			1.53				1.45				2.02				1.75				1.56
Leverage expenses (4)			0.47				0.75				1.17				3.71				2.01
Income tax expense (benefit) (5)			4.30				13.10				(4.70	)			0.06				0.02
Total expenses			6.30	%			15.30	%			(1.51	)%			5.52	%			3.59	%

See accompanying Notes to Financial Statements.

2011 Annual Report

11

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Financial Highlights  (Continued) Year Ended November 30

		2011		2010		2009		2008		2007
Ratio of net investment income (loss) to average
net assets before expense reimbursement (4)			(0.54	)%			(0.50	)%			1.82	%			1.51	%			2.37	%
Ratio of net investment income (loss) to average
net assets after expense reimbursement (4)			(0.47	)%			(0.38	)%			1.94	%			1.74	%			2.66	%
Portfolio turnover rate			27.34	%			27.89	%			41.90	%			36.69	%			16.06	%
Short-term borrowings, end of year (000’s)		$	31,300			$	10,400			$	5,900				—			$	9,600
Long-term debt obligations, end of year (000’s)			—			$	15,000			$	15,000			$	15,000			$	40,000
Preferred stock, end of year (000’s)			—				—				—			$	10,000			$	15,000
Per common share amount of long-term debt
obligations outstanding, end of year			—			$	2.38			$	2.40			$	3.25			$	8.67
Per common share amount of net assets,
excluding long-term debt obligations,      end of year		$	24.77			$	26.89			$	22.61			$	14.03			$	35.92
Asset coverage, per $1,000 of principal amount
of long-term debt obligations and short-term      borrowings (6)		$	5,982			$	7,074			$	7,058			$	4,981			$	3,837
Asset coverage ratio of long-term debt      obligations and short-term borrowings (6)			598	%			707	%			706	%			498	%			384	%
Asset coverage, per $25,000 liquidation value      per share of preferred stock (7)			—				—				—			$	74,716			$	73,646
Asset coverage ratio of preferred stock (7)			—				—				—				299	%			295	%

(1)	Information presented relates to a share of common stock outstanding for the entire year.
(2)	The per common share data for the years ended November 30, 2010, 2009, 2008, and 2007 do not reflect the change in estimate of investment income and return of capital, for the respective year. See Note 2F to the financial statements for further disclosure.
(3)	Total investment return is calculated assuming a purchase of common stock at the beginning of the year and a sale at the closing price on the last day of the year reported (excluding broker commissions). The calculation also assumes reinvestment of distributions at actual prices pursuant to the Company’s dividend reinvestment plan.
(4)	The expense ratios and net investment income (loss) ratios do not reflect the effect of distributions to preferred stockholders.
(5)	The Company accrued $44,786, $39,097, $(28,837), $68,509 and $22,447 for the years ended November 30, 2011, 2010, 2009, 2008 and 2007, respectively, for current and foreign tax (benefit) expense. For the years ended November 30, 2011 and 2010, the Company accrued $6,732,194 and $18,559,864, respectively, in net deferred income tax expense. For the year ended November 30, 2009, the Company accrued $3,732,366 in net deferred income tax benefit, which included $5,488,509 of deferred income tax benefit for the timing differences at December 1, 2008 when the Company converted to a taxable corporation.
(6)	Represents value of total assets less all liabilities and indebtedness not represented by long-term debt obligations, short-term borrowings and preferred stock at the end of the year divided by long-term debt obligations and short-term borrowings outstanding at the end of the year.
(7)	Represents value of total assets less all liabilities and indebtedness not represented by long-term debt obligations, short-term borrowings and preferred stock at the end of the year divided by long-term debt obligations, short-term borrowings and preferred stock outstanding at the end of the year.

See accompanying Notes to Financial Statements.

12

Tortoise North American Energy Corp.

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Notes to Financial Statements November 30, 2011

1. Organization

Tortoise North American Energy Corporation (the “Company”) was organized as a Maryland corporation on January 13, 2005, and is a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company’s investment objective is to seek a high level of total return with an emphasis on distribution income paid to stockholders. The Company seeks to provide its stockholders with a vehicle to invest in a portfolio consisting primarily of publicly traded U.S. master limited partnerships (“MLPs”), including oil and gas exploitation, energy infrastructure and energy shipping companies. The Company commenced operations on October 31, 2005. The Company’s stock is listed on the New York Stock Exchange under the symbol “TYN.”

2. Significant Accounting Policies

A. Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, recognition of distribution income and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

B. Investment Valuation

The Company primarily owns securities that are listed on a securities exchange or over-the-counter market. The Company values those securities at their last sale price on that exchange or over-the-counter market on the valuation date. If the security is listed on more than one exchange, the Company uses the price from the exchange that it considers to be the principal exchange on which the security is traded. Securities listed on the NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there has been no sale on such exchange or over-the-counter market on such day, the security will be valued at the mean between the last bid price and last ask price on such day.

The Company may invest up to 50 percent of its total assets in restricted securities. Restricted securities are subject to statutory and contractual restrictions on their public resale, which may make it more difficult to obtain a valuation and may limit the Company’s ability to dispose of them. Investments in restricted securities and other securities for which market quotations are not readily available will be valued in good faith by using fair value procedures approved by the Board of Directors. Such fair value procedures consider factors such as discounts to publicly traded issues, time until conversion date, securities with similar yields, quality, type of issue, coupon, duration and rating. If events occur that affect the value of the Company’s portfolio securities before the net asset value has been calculated (a “significant event”), the portfolio securities so affected will generally be priced using fair value procedures.

An equity security of a publicly traded company acquired in a direct placement transaction may be subject to restrictions on resale that can affect the security’s liquidity and fair value. Such securities that are convertible or otherwise will become freely tradable will be valued based on the market value of the freely tradable security less an applicable discount. Generally, the discount will initially be equal to the discount at which the Company purchased the securities. To the extent that such securities are convertible or otherwise become freely tradable within a time frame that may be reasonably determined, an amortization schedule may be used to determine the discount.

The Company generally values debt securities at prices based on market quotations for such securities, except those securities purchased with 60 days or less to maturity are valued on the basis of amortized cost, which approximates market value.

The Company generally values its interest rate swap contracts using industry-accepted models which discount the estimated future cash flows based on the stated terms of the interest rate swap agreement by using interest rates currently available in the market, or based on dealer quotations, if available.

C. Foreign Currency Translation

For foreign currency, investments in foreign securities, and other assets and liabilities denominated in a foreign currency, the Company translates these amounts into U.S. dollars on the following basis:

	(1)		market value of investment securities, assets and liabilities at the current rate of exchange on the valuation date and
	(2)		purchases and sales of investment securities, income and expenses at the relevant rates of exchange on the respective dates of such transactions.

The Company does not isolate that portion of gains and losses on investments that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities.

D. Foreign Withholding Taxes

The Company may be subject to taxes imposed by countries in which it invests with respect to its investment in issuers existing or operating in such countries. Such taxes are generally based on income earned. The Company accrues such taxes when the related income is earned.

E. Security Transactions and Investment Income

Security transactions are accounted for on the date the securities are purchased or sold (trade date). Realized gains and losses are reported on an identified cost basis. Interest income is recognized on the accrual basis, including amortization of premiums and accretion of discounts. Dividend and distribution income is recorded on the ex-dividend date. Distributions received from the Company’s investments in MLPs generally are comprised of ordinary income and return of capital from the MLPs. The Company allocates distributions between investment income and return of capital based on estimates made at the time such distributions are received. Such estimates are based on information provided by each MLP and other industry sources. These estimates may subsequently be revised based on actual allocations received from MLPs after their tax reporting periods are concluded, as the actual character of these distributions is not known until after the fiscal year end of the Company.

During the year ended November 30, 2011, the Company reallocated the amount of 2010 investment income and return of capital it recognized based on the 2010 tax reporting information received from the individual MLPs. This reclassification amounted to a decrease in pre-tax net investment income of approximately $534,000 or $0.085 per share ($335,000 or $0.053 per share, net of deferred tax benefit); an increase in unrealized appreciation of investments of approximately $512,000 or $0.081 per share ($321,000 or $0.051 per share, net of deferred tax expense) and an increase in realized gains of approximately $22,000 or $0.004 per share ($14,000 or $0.002 per share, net of deferred tax expense) for the year ended November 30, 2011.

2011 Annual Report

13

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Notes to Financial Statements (Continued)

F. Distributions to Stockholders

Distributions to common stockholders are recorded on the ex-dividend date. The Company may not declare or pay distributions to its common stockholders if it does not meet asset coverage ratios required under the 1940 Act or the rating agency guidelines for its debt and preferred stock (if any) following such distribution. The character of distributions to stockholders made during the year may differ from their ultimate characterization for federal income tax purposes. For tax purposes, the Company’s distributions for the year ended November 30, 2011 were 100 percent qualified dividend income. For book purposes, the source of the Company’s distributions to common stockholders for the year ended November 30, 2011 was 100 percent return of capital.

G. Federal Income Taxation

From the Company’s inception through November 30, 2008, the Company qualified as a regulated investment company (“RIC”) under the U.S. Internal Revenue Code of 1986, as amended (the “Code”). Effective December 1, 2008, the Company is treated as a taxable corporation for federal and state income tax purposes. The Company, as a corporation, is obligated to pay federal and state income tax on its taxable income. Currently, the highest regular marginal federal income tax rate for a corporation is 35 percent; however, the Company anticipates a marginal effective rate of 34 percent due to expectations of the level of taxable income relative to the federal graduated tax rates, including the tax rate anticipated when temporary differences reverse. The Company may be subject to a 20 percent federal alternative minimum tax on its federal alternative minimum taxable income to the extent that its alternative minimum tax exceeds its regular federal income tax.

The Company invests in MLPs, which generally are treated as partnerships for federal income tax purposes. As a limited partner in the MLPs, the Company reports its allocable share of the MLP’s taxable income in computing its own taxable income. The Company’s tax expense or benefit is included in the Statement of Operations based on the component of income or gains (losses) to which such expense or benefit relates. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized.

H. Offering and Debt Issuance Costs

Offering costs related to the issuance of common and preferred stock are charged to additional paid-in capital when the stock is issued. Debt issuance costs related to long-term debt obligations are capitalized and amortized over the period the debt is outstanding.

I. Derivative Financial Instruments

The Company uses derivative financial instruments (principally interest rate swap and forward foreign currency contracts) to manage interest rate and currency risks. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. The Company does not hold or issue derivative financial instruments for speculative purposes. All derivative financial instruments are recorded at fair value with changes in fair value during the reporting period, and amounts accrued under the agreements, included as unrealized gains or losses in the accompanying Statement of Operations. Cash settlements under the terms of the interest rate swap and forward foreign currency contracts and termination of such contracts are recorded as realized gains or losses in the accompanying Statement of Operations.

J. Indemnifications

Under the Company’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Company. In addition, in the normal course of business, the Company may enter into contracts that provide general indemnification to other parties. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred, and may not occur. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

K. Recent Accounting Pronouncement

In May 2011, the FASB issued ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements” in GAAP and the International Financial Reporting Standards (“IFRSs”). ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and IFRSs. ASU No. 2011-04 is effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years. Management is currently evaluating the impact of these amendments and does not believe they will have a material impact on the Company’s financial statements.

3. Concentration of Risk

Under normal conditions, the Company will have at least 80 percent of its total assets in equity securities of companies in the energy sector with their primary operations in North America (“Energy Companies”). Energy Companies include companies that derive more than 50 percent of their revenues from transporting, processing, storing, distributing or marketing natural gas, natural gas liquids, electricity, coal, crude oil or refined petroleum products, or exploring, developing, managing or producing such commodities. The Company may invest up to 50 percent of its total assets in restricted securities. In determining application of these policies, the term “total assets” includes assets obtained through leverage. Companies that primarily invest in a particular sector may experience greater volatility than companies investing in a broad range of industry sectors. The Company may, for defensive purposes, temporarily invest all or a significant portion of its assets in investment grade securities, short-term debt securities and cash or cash equivalents. To the extent the Company uses this strategy, it may not achieve its investment objective.

4. Agreements

The Company has entered into an Investment Advisory Agreement with Tortoise Capital Advisors, L.L.C. (the “Adviser”). Under the terms of the agreement, the Company pays the Adviser a fee equal to an annual rate of 1.00 percent of the Company’s average monthly total assets (including any assets attributable to leverage) minus accrued liabilities (other than debt entered into for purposes of leverage and the aggregate liquidation preference of outstanding preferred stock, if any) (“Managed Assets”), in exchange for the investment advisory services provided. The Adviser waived fees in an amount equal to an annual rate of 0.10 percent of the Company’s average monthly Managed Assets for the period from January 1, 2009 through December 31, 2010 and has agreed to waive fees in an amount equal to an annual rate of 0.05 percent of the Company’s average monthly Managed Assets from January 1, 2011 through December 31, 2011.

14

Tortoise North American Energy Corp.

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Notes to Financial Statements (Continued)

U.S. Bancorp Fund Services, LLC serves as the Company’s administrator. The Company pays the administrator a monthly fee computed at an annual rate of 0.04 percent of the first $1,000,000,000 of the Company’s Managed Assets, 0.01 percent on the next $500,000,000 of Managed Assets and 0.005 percent on the balance of the Company’s Managed Assets.

Computershare Trust Company, N.A. serves as the Company’s transfer agent and registrar and Computershare Inc. serves as the Company’s dividend paying agent and agent for the automatic dividend reinvestment plan.

U.S. Bank, N.A. serves as custodian of the Company’s cash and investment securities. The Company pays the custodian a monthly fee computed at an annual rate of 0.004 percent of the Company’s portfolio assets, plus portfolio transaction fees.

5. Income Taxes

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting and tax purposes. Components of the Company’s deferred tax assets and liabilities as of November 30, 2011, are as follows:

Deferred tax assets:
Net operating loss carryforwards		$	3,925,086
Capital loss carryforwards			5,549,816
Alternative minimum tax credit			30,000
Organization costs			46,972
State of Kansas credit			4,055
			9,555,929
Deferred tax liabilities:
Basis reduction of investment in MLPs			4,516,006
Net unrealized gains on investment securities			24,949,827
			29,465,833
Total net deferred tax liability		$	19,909,904

At November 30, 2011, a valuation allowance on deferred tax assets was not deemed necessary because the Company believes it is more likely than not that there is an ability to realize its deferred tax assets through future taxable income of the appropriate character. Any adjustments to the Company’s estimates of future taxable income will be made in the period such determination is made. The Company’s policy is to record interest and penalties on uncertain tax positions as part of tax expense. As of November 30, 2011, the Company had no uncertain tax positions and no penalties and interest were accrued. The Company does not expect any change to its unrecognized tax positions in the twelve months subsequent to November 30, 2011. Tax years subsequent to the year ending November 30, 2006 remain open to examination by federal and state tax authorities.

Total income tax expense differs from the amount computed by applying the federal statutory income tax rate of 34 percent to net investment loss and net realized gains and unrealized losses on investments for the year ended November 30, 2011, as follows:

Application of statutory income tax rate		$	6,098,172
State income taxes, net of federal tax benefit			572,152
Foreign tax expense, net of federal tax benefit			9,287
Change in deferred tax liability due to change in overall tax rate			131,758
Dividends received deduction			(34,389	)
Total income tax expense		$	6,776,980

Total income taxes are computed by applying the federal statutory rate plus a blended state income tax rate. During the year, the Company re-evaluated its blended state income tax rate, increasing the overall rate from 36.88 percent to 37.19 percent due to anticipated state apportionment of income and gains.

For the year ended November 30, 2011, the components of income tax expense include the following:

Current tax expense
AMT		$	30,000
Foreign (reflects a federal tax benefit in deferred tax expense)			14,786
Total current tax expense			44,786
Deferred tax expense
Federal			6,154,735
State (net of federal tax benefit)			577,459
Total deferred tax expense			6,732,194
Total income tax expense		$	6,776,980

The Company acquired all of the net assets of Tortoise Gas and Oil Corporation (“TGO”) on September 14, 2009 in a tax-free reorganization under Section 368(a)(1) (C) of the Internal Revenue Code. As of November 30, 2011, the Company had a net operating loss for federal income tax purposes of approximately $10,989,000. This includes a net operating loss of $7,935,000 from TGO. The net operating loss may be carried forward for 20 years. If not utilized, this net operating loss will expire as follows: $2,677,000, $5,258,000, $807,000 and $2,247,000 in the years ending November 30, 2027, 2028, 2029 and 2030, respectively. Utilization of the net operating loss from TGO is further subject to Section 382 limitations of the Internal Revenue Code, which limit tax attributes subsequent to ownership changes.

As of November 30, 2011, the Company had a capital loss carryforward of approximately $15,000,000 which may be carried forward for 5 years. This amount includes a capital loss of $2,700,000 from TGO. If not utilized, the capital loss will expire as follows: $1,500,000, $5,500,000 and $8,000,000 in the years ending November 30, 2012, 2013 and 2014, respectively. The capital gains for the year ended November 30, 2011 have been estimated based on information currently available. Such estimate is subject to revision upon receipt of the 2011 tax reporting information from the individual MLPs. For corporations, capital losses can only be used to offset capital gains and cannot be used to offset ordinary income. As of November 30, 2011, an alternative minimum tax credit of $30,000 was available, which may be credited in the future against regular income tax. This credit may be carried forward indefinitely.

As of November 30, 2011, the aggregate cost of securities for federal income tax purposes was $128,206,054. The aggregate gross unrealized appreciation for all securities in which there was an excess of fair value over tax cost was $80,598,018, the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over fair value was $996,177 and the net unrealized appreciation was $79,601,841.

2011 Annual Report

15

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Notes to Financial Statements (Continued)

6. Fair Value of Financial Instruments

Various inputs are used in determining the value of the Company’s investments. These inputs are summarized in the three broad levels listed below:

	Level 1 —	quoted prices in active markets for identical investments
	Level 2 —	other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.)
	Level 3 —	significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following table provides the fair value measurements of applicable Company assets by level within the fair value hierarchy as of November 30, 2011. These assets are measured on a recurring basis.

		Fair Value at
Description		November 30, 2011		Level 1		Level 2		Level 3
Assets
Equity Securities:
Common Stock (a)			$	6,537,751			$	5,166,246		$	1,371,505		$	—
Master Limited Partnerships
and Related Companies (a)				201,093,825				201,093,825			—			—
Total Equity Securities				207,631,576				206,260,071			1,371,505			—
Other:
Short-Term Investment (b)				176,319				176,319			—			—
Total Other				176,319				176,319			—			—
Total Assets			$	207,807,895			$	206,436,390		$	1,371,505		$	—
Liabilities
Interest Rate Swap Contracts			$	400,566			$	—		$	400,566		$	—

(a)	All other industry classifications are identified in the Schedule of Investments.
(b)	Short-term investment is a sweep investment for cash balances in the Company at November 30, 2011.

Valuation Techniques

In general, and where applicable, the Company uses readily available market quotations based upon the last updated sales price from the principal market to determine fair value. This pricing methodology applies to the Company’s Level 1 investments.

An equity security of a publicly traded company acquired in a private placement transaction without registration under the Securities Act of 1933, as amended (the “1933 Act”), is subject to restrictions on resale that can affect the security’s fair value. If such a security is convertible into publicly-traded common shares, the security generally will be valued at the common share market price adjusted by a percentage discount due to the restrictions and categorized as Level 2 in the fair value hierarchy. If the security has characteristics that are dissimilar to the class of security that trades on the open market, the security will generally be valued and categorized as Level 3 in the fair value hierarchy.

Interest rate swap contracts are valued by using industry-accepted models which discount the estimated future cash flows based on a forward rate curve and the stated terms of the interest rate swap agreement by using interest rates currently available in the market, or based on dealer quotations, if available, which applies to the Company’s Level 2 liabilities.

The Company utilizes the beginning of reporting period method for determining transfers between levels. There were no transfers between levels for the year ended November 30, 2011.

7. Restricted Security

Certain of the Company’s investments are restricted and are valued as determined in accordance with procedures established by the Board of Directors, as more fully described in Note 2. The table below shows the shares, acquisition date, acquisition cost, fair value, fair value per share and percent of net assets which the security comprises at November 30, 2011.

Fair

Fair Value

Value

as Percent

Number

Acquisition

Acquisition

Fair

Per

of Net

Investment Security

of Shares

Date

Cost

Value

Share

Assets

Teekay Offshore

Partners L.P.

Common Units

53,975

11/25/11

$1,290,003

$1,371,505

$25.41

0.9%

The carrying value per unit of Teekay Offshore Partners L.P. was $26.39 on November 9, 2011, the date of the purchase agreement and the date an enforceable right to acquire the Teekay Offshore Partners L.P. units was obtained by the Company.

8. Investment Transactions

For the year ended November 30, 2011, the Company purchased (at cost) and sold securities (proceeds received) in the amount of $60,961,942 and $55,870,744 (excluding short-term debt securities), respectively.

9. Long-Term Debt Obligations

The Company had $15,000,000 aggregate principal amount of Series B private senior notes (the “Notes”) outstanding for the period from December 1, 2010 through the maturity date on June 17, 2011. Holders of the Notes received cash interest payments each quarter at a fixed annual rate of 5.56 percent.

10. Credit Facility

On June 15, 2011, the Company entered into a 270-day rolling evergreen margin loan facility with Bank of America, N.A. The terms of the agreement provide for a $40,000,000 facility that is secured by certain of the Company’s assets. Outstanding balances generally will accrue interest at a variable rate equal to one-month LIBOR plus 0.85 percent and unused portions of the facility will accrue a fee equal to an annual rate of 0.25 percent.

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Tortoise North American Energy Corp.

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Notes to Financial Statements (Continued)

The average principal balance and interest rate for the period during which the margin loan facility was utilized during the period from June 16, 2011 through November 30, 2011 was approximately $29,300,000 and 1.07 percent, respectively. At November 30, 2011, the principal balance outstanding was $31,300,000 at an interest rate of 1.12 percent.

Under the terms of the margin loan facility, the Company must maintain asset coverage required under the 1940 Act. If the Company fails to maintain the required coverage, it may be required to repay a portion of an outstanding balance until the coverage requirement has been met. At November 30, 2011, the Company was in compliance with the terms of the margin loan facility.

The Company had a $15,000,000 unsecured credit facility that expired on June 20, 2011. U.S. Bank, N.A. served as a lender and the lending syndicate agent on behalf of other lenders participating in the credit facility. Outstanding balances on the credit facility accrued interest at a variable annual rate equal to one-month LIBOR plus 1.25 percent and unused portions of the credit facility accrued a non-usage fee equal to an annual rate of 0.20 percent. The average principal balance and interest rate for the period during which the credit facility was utilized during the period from December 1, 2010 through June 20, 2011 was approximately $10,900,000 and 1.49 percent, respectively.

11. Interest Rate Swap Contracts

The Company has entered into interest rate swap contracts in an attempt to protect itself from increasing interest expense on its leverage resulting from increasing short-term interest rates. A decline in interest rates may result in a decline in the value of the swap contracts, which may result in a decline in the net assets of the Company. At the time the interest rate swap contracts reach their scheduled termination, there is a risk that the Company would not be able to obtain a replacement transaction, or that the terms of the replacement would not be as favorable as on the expiring transaction. In addition, if the Company is required to terminate any swap contract early due to the Company failing to maintain a required 300 percent asset coverage of the liquidation value of the outstanding debt, then the Company could be required to make a termination payment, in addition to redeeming all or some of the debt. Details of the interest rate swap contracts outstanding as of November 30, 2011, are as follows:

							Fixed Rate		Floating Rate
		Maturity		Notional			Paid by the		Received by		Liability
Counterparty		Date		Amount		Company		the Company		Derivatives
The Bank of Nova Scotia		09/02/2014		$	5,000,000		0.654%		1-month U.S. Dollar LIBOR		$	(7,040	)
The Bank of Nova Scotia		09/02/2016			5,000,000		1.258%		1-month U.S. Dollar LIBOR			(32,949	)
The Bank of Nova Scotia		09/02/2018			5,000,000		1.815%		1-month U.S. Dollar LIBOR			(65,201	)
The Bank of Nova Scotia		09/02/2021			10,000,000		2.381%		1-month U.S. Dollar LIBOR			(295,376	)
				$	25,000,000						$	(400,566	)

The Company is exposed to credit risk on the interest rate swap contracts if the counterparty should fail to perform under the terms of the interest rate swap contracts. The amount of credit risk is limited to the net appreciation of the interest rate swap contracts, if any, as no collateral is pledged by the counterparty. In addition, if the counterparty to the interest rate swap contracts defaults, the Company would incur a loss in the amount of the receivable and would not receive amounts due from the counterparty to offset the interest payments on the Company’s leverage.

The change in unrealized depreciation of interest rate swap contracts in the amount of $400,566 is included in the Statement of Operations for the year ended November 30, 2011. Cash settlement payments under the terms of the interest rate swap contracts in the amount of $62,164 are recorded as realized losses for the year ended November 30, 2011.The Company entered into the above interest rate swap contracts on August 31, 2011. Prior to that date, the Company did not have any open swap agreements during the year ended November 30, 2011.

12. Common Stock

The Company has 100,000,000 shares of capital stock authorized and 6,295,750 shares outstanding at November 30, 2011 and 2010.

2011 Annual Report

17

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Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders
Tortoise North American Energy Corporation

We have audited the accompanying statement of assets and liabilities of Tortoise North American Energy Corporation (the Company), including the schedule of investments, as of November 30, 2011, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Company’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2011, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Tortoise North American Energy Corporation at November 30, 2011, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Kansas City, Missouri
January 24, 2012

18

Tortoise North American Energy Corp.

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(1)	This number includes Tortoise Energy Infrastructure Corporation (“TYG”), Tortoise Energy Capital Corporation (“TYY”), Tortoise Power and Energy Infrastructure Fund, Inc. (“TPZ”), Tortoise MLP Fund, Inc. (“NTG”), Tortoise Pipeline & Energy Fund, Inc. (“TTP”) and the Company. Our Adviser also serves as the investment adviser to TYG, TYY, TPZ, NTG and TTP.
*	The address of each director and officer is 11550 Ash Street, Suite 300, Leawood, Kansas 66211.

2011 Annual Report

19

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Company Officers and Directors (Unaudited) (Continued) November 30, 2010

(1)	This number includes TYG, TYY, TPZ, NTG, TTP and the Company. Our Adviser also serves as the investment adviser to TYG, TYY, TPZ, NTG and TTP.
(2)	As a result of their respective positions held with our Adviser or its affiliates, these individuals are considered “interested persons” within the meaning of the 1940 Act.
(3)	Effective December 1, 2011, H. Kevin Birzer resigned as a director of Tortoise Capital Resources Corporation and David J. Schulte was appointed as a director of Tortoise Capital Resources Corporation.
*	The address of each director and officer is 11550 Ash Street, Suite 300, Leawood, Kansas 66211.

20

Tortoise North American Energy Corp.

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Additional Information (Unaudited)

Director and Officer Compensation

The Company does not compensate any of its directors who are “interested persons,” as defined in Section 2(a)(19) of the 1940 Act, nor any of its officers. For the year ended November 30, 2011, the aggregate compensation paid by the Company to the independent directors was $66,000. The Company did not pay any special compensation to any of its directors or officers.

Forward-Looking Statements

This report contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Several factors that could materially affect the Company’s actual results are the performance of the portfolio of stocks held by it, the conditions in the U.S. and international financial, petroleum and other markets, the price at which shares of the Company will trade in the public markets and other factors discussed in filings with the SEC.

Proxy Voting Policies

A description of the policies and procedures that the Company uses to determine how to vote proxies relating to portfolio securities owned by the Company and information regarding how the Company voted proxies relating to the portfolio of securities during the 12-month period ended June 30, 2011 is available to stockholders (i) without charge, upon request by calling the Company at (913) 981-1020 or toll-free at (866) 362-9331 and on the Company’s Web site at www.tortoiseadvisors.com; and (ii) on the SEC’s Web site at www.sec.gov.

Form N-Q

The Company files its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the SEC on Form N-Q. The Company’s Form N-Q is available without charge upon request by calling the Company at (866) 362-9331 or by visiting the SEC’s Web site at www.sec.gov. In addition, you may review and copy the Company’s Form N-Q at the SEC’s Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling (800) SEC-0330.

The Company’s Form N-Qs are also available on the Company’s Web site at www.tortoiseadvisors.com.

Statement of Additional Information

The Statement of Additional Information (“SAI”) includes additional information about the Company’s directors and is available upon request without charge by calling the Company at (866) 362-9331 or by visiting the SEC’s Web site at www.sec.gov.

Certifications

The Company’s Chief Executive Officer submitted to the New York Stock Exchange the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.

The Company has filed with the SEC, as an exhibit to its most recently filed Form N-CSR, the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.

Privacy Policy

In order to conduct its business, the Company collects and maintains certain nonpublic personal information about its stockholders of record with respect to their transactions in shares of the Company’s securities. This information includes the stockholder’s address, tax identification or Social Security number, share balances, and dividend elections. We do not collect or maintain personal information about stockholders whose share balances of our securities are held in “street name” by a financial institution such as a bank or broker.

We do not disclose any nonpublic personal information about you, the Company’s other stockholders or the Company’s former stockholders to third parties unless necessary to process a transaction, service an account, or as otherwise permitted by law.

To protect your personal information internally, we restrict access to nonpublic personal information about the Company’s stockholders to those employees who need to know that information to provide services to our stockholders. We also maintain certain other safeguards to protect your nonpublic personal information.

Automatic Dividend Reinvestment Plan

If a stockholder’s shares are registered directly with the Company or with a brokerage firm that participates in the Company’s Automatic Dividend Reinvestment Plan (the “Plan”), all distributions are automatically reinvested for stockholders by the Plan Agent in additional shares of common stock of the Company (unless a stockholder is ineligible or elects otherwise). Stockholders holding shares that participate in the Plan in a brokerage account may not be able to transfer the shares to another broker and continue to participate in the Plan. Stockholders who elect not to participate in the Plan will receive all distributions payable in cash paid by check mailed directly to the stockholder of record (or, if the shares are held in street or other nominee name, then to such nominee) by Computershare, as dividend paying agent. Distributions subject to tax (if any) are taxable whether or not shares are reinvested.

If, on the distribution payment date, the net asset value per share of the common stock is equal to or less than the market price per share of common stock plus estimated brokerage commissions, the Company will issue additional shares of common stock to participants. The number of shares will be determined by the greater of the net asset value per share or 95 percent of the market price. Otherwise, shares generally will be purchased on the open market by the Plan Agent as soon as possible following the payment date or purchase date, but in no event later than 30 days after such date except as necessary to comply with applicable law. There are no brokerage charges with respect to shares issued directly by the Company as a result of distributions payable either in shares or in cash. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open-market purchases in connection with the reinvestment of distributions. If a participant elects to have the Plan Agent sell part or all of his or her common stock and remit the proceeds, such participant will be charged a transaction fee of $15.00 plus his or her pro rata share of brokerage commissions on the shares sold.

Participation is completely voluntary. Stockholders may elect not to participate in the Plan, and participation may be terminated or resumed at any time without penalty, by giving notice in writing, by telephone or Internet to Computershare, the Plan Agent, at the address set forth below. Such termination will be effective with respect to a particular distribution if notice is received prior to such record date.

Additional information about the Plan may be obtained by writing to Computershare Trust Company, N.A., P.O. Box 43078, Providence, R.I. 02940-3078. You may also contact Computershare by phone at (800) 426-5523 or visit their Web site at www.computershare.com.

2011 Annual Report

21

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Additional Information (Unaudited) (Continued)

Approval of the Investment Advisory Agreement

In approving the renewal of the Investment Advisory Agreement in November 2011, the directors who are not “interested persons” (as defined in the Investment Company Act of 1940) of the Company (“Independent Directors”) requested and received extensive data and information from the Adviser concerning the Company and the services provided to it by the Adviser under the Investment Advisory Agreement. In addition, the Independent Directors requested and received data and information from the Adviser, which also included information from independent, third-party sources, regarding the factors considered in their evaluation.

Factors Considered

The Independent Directors considered and evaluated all the information provided by the Adviser. The Independent Directors did not identify any single factor as being all-important or controlling, and each Independent Director may have attributed different levels of importance to different factors. In deciding to renew the agreement, the Independent Directors’ decision was based on the following factors.

Nature, Extent and Quality of Services Provided. The Independent Directors considered information regarding the history, qualification and background of the Adviser and the individuals responsible for the Adviser’s investment program, the adequacy of the number of the Adviser personnel and other Adviser resources and plans for growth, use of affiliates of the Adviser, and the particular expertise with respect to energy infrastructure companies, MLP markets and financing (including private financing). The Independent Directors concluded that the unique nature of the Company and the specialized expertise of the Adviser in the niche market of MLPs made it uniquely qualified to serve as the advisor. Further, the Independent Directors recognized that the Adviser’s commitment to a long-term investment horizon correlated well to the investment strategy of the Company.

Investment Performance of the Company and the Adviser, Costs of the Services To Be Provided and Profits To Be Realized by the Adviser and its Affiliates from the Relationship, and Fee Comparisons. The Independent Directors reviewed and evaluated information regarding the Company’s performance (including quarterly, last twelve months, and from inception) and the performance of the other Adviser accounts (including other investment companies), and information regarding the nature of the markets during the performance period, with a particular focus on the MLP sector. The Independent Directors also considered the Company’s performance as compared to comparable closed-end funds for the relevant periods.

The Adviser provided detailed information concerning its cost of providing services to the Company, its profitability in managing the Company, its overall profitability, and its financial condition. The Independent Directors reviewed with the Adviser the methodology used to prepare this financial information. This financial information regarding the Adviser is considered in order to evaluate the Adviser’s financial condition, its ability to continue to provide services under the Investment Advisory Agreement, and the reasonableness of the current management fee, and was, to the extent possible, evaluated in comparison to other closed-end funds with similar investment objectives and strategies.

The Independent Directors considered and evaluated information regarding fees charged to, and services provided to, other investment companies advised by the Adviser (including the impact of any fee waiver or reimbursement arrangements and any expense reimbursement arrangements), fees charged to separate institutional accounts by the Adviser, and comparisons of fees of closed-end funds with similar investment objectives and strategies, including other MLP investment companies, to the Company. The Independent Directors concluded that the fees and expenses that the Company is paying under the Investment Advisory Agreement are reasonable given the quality of services provided under the Investment Advisory Agreement and that such fees and expenses are comparable to, and in many cases lower than, the fees charged by advisers to comparable funds.

Economies of Scale. The Independent Directors considered information from the Adviser concerning whether economies of scale would be realized as the Company grows, and whether fee levels reflect any economies of scale for the benefit of the Company’s stockholders. The Independent Directors concluded that economies of scale are difficult to measure and predict overall. Accordingly, the Independent Directors reviewed other information, such as year-over-year profitability of the Adviser generally, the profitability of its management of the Company specifically, and the fees of competitive funds not managed by the Adviser over a range of asset sizes. The Independent Directors concluded the Adviser is appropriately sharing any economies of scale through its competitive fee structure and through reinvestment in its business to provide stockholders additional content and services.

Collateral Benefits Derived by the Adviser. The Independent Directors reviewed information from the Adviser concerning collateral benefits it receives as a result of its relationship with the Company. They concluded that the Adviser generally does not use the Company’s or stockholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them.

The Independent Directors did not, with respect to their deliberations concerning their approval of the continuation of the Investment Advisory Agreement, consider the benefits the Adviser may derive from relationships the Adviser may have with brokers through soft dollar arrangements because the Adviser does not employ any such arrangements in rendering its advisory services to the Company. Although the Adviser may receive research from brokers with whom it places trades on behalf of clients, the Adviser does not have soft dollar arrangements or understandings with such brokers regarding receipt of research in return for commissions.

Conclusions of the Directors

As a result of this process, the Independent Directors, assisted by the advice of legal counsel that is independent of the Adviser, taking into account all of the factors discussed above and the information provided by the Adviser, unanimously concluded that the Investment Advisory Agreement between the Company and the Adviser is fair and reasonable in light of the services provided and should be renewed.

22

Tortoise North American Energy Corp.

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Tortoise Capital Advisors’ Closed-end Funds

	Pureplay MLP Funds		Broader Funds
	Name	Ticker	Focus	Total Assets (1) ($ in millions)		Name	Ticker	Focus	Total Assets (1) ($ in millions)
	Tortoise Energy Infrastructure Corp.		Midstream Equity	$1,660		Tortoise Pipeline & Energy Fund, Inc.		Pipeline Equity	$336
	Tortoise Energy Capital Corp.		Midstream Equity	$860		Tortoise Power and Energy Infrastructure Fund, Inc.		Power & Energy Infrastructure Debt & Dividend Paying Equity	$218
	Tortoise MLP Fund, Inc.		Natural Gas Equity	$1,655
	Tortoise North American Energy Corp.		Midstream/Upstream Equity	$218

(1)	As of 12/31/11

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Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant’s Chief Executive Officer and its Chief Financial Officer. The Registrant has not made any amendments to this code of ethics during the period covered by this report, except that Exhibit A to the Code was updated to reflect the names of the current Principal Executive Officer and Principal Financial Officer. The Registrant has not granted any waivers from any provisions of this code of ethics during the period covered by this report.

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Directors has determined that there is at least one “audit committee financial expert” serving on its audit committee. Mr. Conrad Ciccotello is the “audit committee financial expert” and is considered to be “independent” as each term is defined in Item 3 of Form N-CSR. In addition to his experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing or evaluation of financial statements, Mr. Ciccotello has a Ph.D. in Finance.

Item 4. Principal Accountant Fees and Services.

The Registrant has engaged its principal accountant to perform audit services, audit-related services and tax services during the past two fiscal years. “Audit services” refer to performing an audit of the Registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. “Audit-related services” refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit. “Tax services” refer to professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. The following table details the approximate amounts of aggregate fees billed to the Registrant for the last two fiscal years for audit fees, audit-related fees, tax fees and other fees by the principal accountant.

The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre-approve (i) the selection of the Registrant’s independent registered public accounting firm, (ii) the engagement of the independent registered public accounting firm to provide any non-audit services to the Registrant, (iii) the engagement of the independent registered public accounting firm to provide any non-audit services to the Adviser or any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant, and (iv) the fees and other compensation to be paid to the independent registered public accounting firm. The Chairman of the audit committee may grant the pre-approval of any engagement of the independent registered public accounting firm for non-audit services of less than $10,000, and such delegated pre-approvals will be presented to the full audit committee at its next meeting. Under certain limited circumstances, pre-approvals are not required under securities law regulations for certain non-audit services below certain de minimus thresholds. Since the adoption of these policies and procedures, the audit committee has pre-approved all audit and non-audit services provided to the Registrant by the principal accountant. None of these services provided by the principal accountant were approved by the audit committee pursuant to the de minimus exception under Rule 2.01(c)(7)(i)(C) or Rule 2.01(c)(7)(ii) of Regulation S-X. All of the principal accountant’s hours spent on auditing the Registrant’s financial statements were attributed to work performed by full-time permanent employees of the principal accountant.

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In the Registrant’s fiscal years ended November 30, 2011 and 2010, the Adviser paid approximately $0 and $88,000 in fees, respectively, for research and consultations relating to fund structure, tax and accounting, and audit-related fees relating to closed-end management investment companies prior to its initial public offerings. These non-audit services were not required to be preapproved by the Registrant’s audit committee. No entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the Registrant, has paid to, or been billed for fees by, the principal accountant for non-audit services rendered to the Adviser or such entity during the Registrant’s last two fiscal years. The audit committee has considered whether the principal accountant’s provision of services (other than audit services) to the Registrant, the Adviser or any entity controlling, controlled by, or under common control with the Adviser that provides services to the Registrant is compatible with maintaining the principal accountant’s independence in performing audit services.

Item 5. Audit Committee of Listed Registrants.

The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, and is comprised of Mr. Conrad S. Ciccotello, Mr. John R. Graham and Mr. Charles E. Heath.

Item 6. Schedule of Investments.

Schedule of Investments is included as part of the report to shareholders filed under Item 1.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Copies of the proxy voting policies and procedures of the Registrant and the Adviser are attached hereto as Exhibit 99.VOTEREG and Exhibit 99.VOTEADV, respectively.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Unless otherwise indicated, information is presented as of November 30, 2011.

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Portfolio Managers

As of the date of this filing, management of the Registrant’s portfolio is the responsibility of a team of portfolio managers consisting of H. Kevin Birzer, Terry Matlack, David J. Schulte, Zachary A. Hamel and Kenneth P. Malvey, all of whom are Managers of the Adviser, comprise the investment committee of the Adviser and share responsibility for such investment management. All decisions to invest in a portfolio company must be approved by the unanimous decision of the Adviser’s investment committee and any one member of the Adviser’s investment committee can require the Adviser to sell a portfolio company or can veto the investment committee’s decision to invest in a portfolio company. Biographical information about each member of the Adviser’s investment committee as of the date of this filing is set forth below.

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David J. Schulte (Born 1961)

Senior Vice President since May 2011

Managing Director of our Adviser since 2002; Full-time Managing Director, KCEP (1993-2002); President and Chief Executive Officer of each of TYG, TYY and TPZ from its inception to May 2011; Chief Executive Officer of the Company from 2005 to May 2011; President of the Company from 2005 to September 2008; Chief Executive Officer of TTO since 2005 and President of TTO from 2005 to April 2007; Senior Vice President of NTG since 2010, of TYG, TYY and TPZ since May 2011, and of TTP since inception; CFA designation since 1992.

*The address of each director and officer is 11550 Ash Street, Suite 300, Leawood, Kansas 66211.

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The Adviser also serves as the investment adviser to TYG, TYY, TPZ, NTG and TTP, and as an adviser to TTO for its securities portfolio.

The following table provides information about the other accounts managed on a day-to-day basis by each of the portfolio managers as of November 30, 2011:

									Number of
									Accounts		Total Assets of
									Paying a		Accounts Paying
		Number of				Total Assets of			Performance		a Performance
Name of Manager		Accounts		Accounts		Fee		Fee
H. Kevin Birzer
Registered investment companies			8			$	4,794,036,513		0		—
Other pooled investment vehicles			6			$	161,064,690		2		$124,205,601
Other accounts			513			$	2,032,054,434		0		—
Zachary A. Hamel
Registered investment companies			8			$	4,794,036,513		0		—
Other pooled investment vehicles			8			$	208,982,653		2		$124,205,601
Other accounts			524			$	3,011,172,237		0		—
Kenneth P. Malvey
Registered investment companies			8			$	4,794,036,513		0		—
Other pooled investment vehicles			8			$	208,982,653		2		$124,205,601
Other accounts			524			$	3,011,172,237		0		—
Terry Matlack
Registered investment companies			8			$	4,794,036,513		0		—
Other pooled investment vehicles			6			$	161,064,690		2		$124,205,601
Other accounts			513			$	2,032,054,434		0		—
David J. Schulte
Registered investment companies			8			$	4,794,036,513		0		—
Other pooled investment vehicles			6			$	161,064,690		2		$124,205,601
Other accounts			513			$	2,032,054,434		0		—

Material Conflicts of Interest

Conflicts of interest may arise from the fact that the Adviser and its affiliates carry on substantial investment activities for other clients, in which the Registrant has no interest, some of which may have investment strategies similar to the Registrant. The Adviser or its affiliates may have financial incentives to favor certain of these accounts over the Registrant. For example, the Adviser may have an incentive to allocate potentially more favorable investment opportunities to other funds and clients that pay the Adviser an incentive or performance fee. Performance and incentive fees also create the incentive to allocate potentially riskier, but potentially better performing, investments to such funds and other clients in an effort to increase the incentive fee. The Adviser also may have an incentive to make investments in one fund, having the effect of increasing the value of a security in the same issuer held by another fund, which, in turn, may result in an incentive fee being paid to the Adviser by that other fund. Any of their proprietary accounts or other customer accounts may compete with the Registrant for specific trades. The Adviser or its affiliates may give advice and recommend securities to, or buy or sell securities for, other accounts and customers, which advice or securities recommended may differ from advice given to, or securities recommended or bought or sold for, the Registrant, even though their investment objectives may be the same as, or similar to, the Registrant’s objectives. When two or more clients advised by the Adviser or its affiliates seek to purchase or sell the same publicly traded securities, the securities actually purchased or sold will be allocated among the clients on a good faith equitable basis by the Adviser in its discretion and in accordance with the clients’ various investment objectives and the Adviser’s procedures. In some cases, this system may adversely affect the price or size of the position the Registrant may obtain or sell. In other cases, the Registrant’s ability to participate in volume transactions may produce better execution for it.

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The Adviser also serves as investment adviser for five other publicly traded management investment companies, all of which invest in the energy sector.

Situations may occur when the Registrant could be disadvantaged because of the investment activities conducted by the Adviser and its affiliates for their other accounts. Such situations may be based on, among other things, the following: (1) legal or internal restrictions on the combined size of positions that may be taken for the Registrant or the other accounts, thereby limiting the size of the Registrant’s position; (2) the difficulty of liquidating an investment for the Registrant or the other accounts where the market cannot absorb the sale of the combined position; or (3) limits on co-investing in private placement securities under the Investment Company Act of 1940. The Registrant’s investment opportunities may be limited by affiliations of the Adviser or its affiliates with energy infrastructure companies.

Under the Investment Company Act of 1940, the Registrant and its affiliated companies may be precluded from co-investing in negotiated private placements of securities. As such, the Registrant will not co-invest with its affiliates in negotiated private placement transactions. The Adviser will observe a policy for allocating negotiated private investment opportunities among its clients that takes into account the amount of each client’s available cash and its investment objectives. These allocation policies may result in the allocation of investment opportunities to an affiliated company rather than to the Registrant.

To the extent that the Adviser sources and structures private investments in master limited partnerships (“MLPs”), certain employees of the Adviser may become aware of actions planned by MLPs, such as acquisitions, which may not be announced to the public. It is possible that the Registrant could be precluded from investing in or selling securities of an MLP about which the Adviser has material, non-public information; however, it is the Adviser’s intention to ensure that any material, non-public information available to certain employees of the Adviser is not shared with the employees responsible for the purchase and sale of publicly traded MLP securities or to confirm prior to receipt of any material non-public information that the information will shortly be made public. The Registrant’s investment opportunities also may be limited by affiliations of the Adviser or its affiliates with energy infrastructure companies.

The Adviser and its principals, officers, employees, and affiliates may buy and sell securities or other investments for their own accounts and may have actual or potential conflicts of interest with respect to investments made on the Registrant’s behalf. As a result of differing trading and investment strategies or constraints, positions may be taken by principals, officers, employees, and affiliates of the Adviser that are the same as, different from, or made at a different time than positions taken for the Registrant. Further, the Adviser may at some time in the future, manage additional investment funds with the same investment objective as the Registrant’s.

Compensation

None of Messrs. Birzer, Hamel, Malvey, Matlack or Schulte receives any direct compensation from the Registrant or any other of the managed accounts reflected in the table above. All such accounts are managed by the Adviser or Fountain Capital. Messrs. Birzer, Hamel, Malvey, Matlack and Schulte are full-time employees of the Adviser and receive a fixed salary for the services they provide. They are also eligible for an annual cash bonus based on the Adviser’s earnings and the satisfaction of certain other conditions. Additional benefits received by Messrs. Birzer, Hamel, Malvey, Matlack and Schulte are normal and customary employee benefits generally available to all salaried employees. Each of Messrs. Birzer, Hamel, Malvey, Matlack and Schulte own an equity interest in Tortoise Holdings, LLC which wholly owns the Adviser, and each thus benefits from increases in the net income of the Adviser.

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Securities Owned in the Registrant by Portfolio Managers

The following table provides information about the dollar range of equity securities in the Registrant beneficially owned by each of the portfolio managers as of November 30, 2010:

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Item 10. Submission of Matters to a Vote of Security Holders.

None.

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Item 11. Controls and Procedures.

(a) The Registrant’s Chief Executive Officer and its Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the Registrant intends to satisfy Item 2 requirements through filing of an exhibit. Filed herewith.

(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons. None.

(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)		Tortoise North American Energy Corporation
By (Signature and Title)		/s/ Terry Matlack
		Terry Matlack, Chief Executive Officer

Date     January 24, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By (Signature and Title)		/s/ Terry Matlack
		Terry Matlack, Chief Executive Officer

Date     January 24, 2012

By (Signature and Title)		/s/ P. Bradley Adams
		P. Bradley Adams, Chief Financial Officer

Date     January 24, 2012

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