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

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

Fund

 

Ticker

 

Distribution
Amount

 

 

Tortoise Energy Infrastructure Corp.

 

TYG

 

$0.3950

Tortoise Midstream Energy Fund, Inc.

 

NTG

 

$0.2350

Tortoise Pipeline & Energy Fund, Inc.

 

TTP

 

$0.2850

Tortoise Energy Independence Fund, Inc.

 

NDP

 

$0.1000

Tortoise Power and Energy Infrastructure Fund, Inc.

 

TPZ

 

$0.1250

Tortoise Essential Assets Income Term Fund

 

TEAF

 

$0.1085

Following the quarterly comprehensive review of the funds and their distribution levels, Tortoise is reducing TYG’s first quarter 2020 distribution to $0.3950 and NTG’s first quarter 2020 distribution to $0.2350; all other Tortoise closed-end funds have maintained distributions.

As the landscape of midstream energy continues to evolve, TYG and NTG intend to transition to more growth-oriented midstream companies, thus lowering the yields of the portfolios.

“Midstream energy has undergone a significant evolution with companies lowering leverage, increasing distribution coverage and participating in stock buybacks,” said Senior Portfolio Manager Matt Sallee. “We believe the funds must evolve with the sector and the change in distribution rates may allow the funds to buyback shares, reinvest in the portfolios or reduce leverage. The strategic shift provides us flexibility to invest in what we believe are the best companies across the midstream energy universe.”

The Board has authorized a share repurchase of up to $35 million in TYG and $25 million in NTG, for 2020. The Board also intends to consider the benefits, as well as the risks, to shareholders of merging TYG and NTG, although there is no guarantee that a merger will be pursued.

The TYG, NTG, TTP and NDP quarterly distributions are payable on Feb. 28, 2020 to stockholders of record on Feb. 21, 2020.

The TPZ and TEAF monthly distributions are payable on March 31, 2020, April 30, 2020 and May 29, 2020 to stockholders of record on the respective dates of March 24, 2020, April 23, 2020 and May 22, 2020.

For book purposes, the source of distributions for TYG and NTG are estimated to be 100% return of capital. The source of distributions for NDP is estimated to be approximately 80-90% ordinary income, with the remainder as return of capital, and the source of distributions for TEAF is estimated to be approximately 50-60% ordinary income, with the remainder as return of capital. For tax purposes, the characterization will not be made until determination of earnings and profits after year end.

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

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

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

About Tortoise

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

Safe Harbor Statement

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

Cautionary Statement Regarding Forward-Looking Statements

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

Contacts:

Tortoise
Pam Kearney, Investor and Public Relations, (866) 362-9331, pkearney@tortoiseadvisors.com

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