Tortoise Announces Further Distribution Increases and Discount Management Program for Its Closed-End Funds

Distribution Amounts and Dates Declared for:

Tortoise Energy Infrastructure Corp. (NYSE: TYG)

Tortoise Midstream Energy Fund, Inc. (NYSE: NTG)

Tortoise Pipeline & Energy Fund, Inc. (NYSE: TTP)

Tortoise Energy Independence Fund, Inc. (NYSE: NDP)

Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE: TPZ)

Tortoise and the Board of its closed-end funds announced significant increases to distributions for its closed-end funds. As previously announced, the funds have adopted managed distribution policies and those policies have been reviewed and modified to provide more of the fund total return in the form of distributions. These increases are the product of the 26-week average NAV ended November 30, 2021 and the distribution target ranges outlined below. The funds have also implemented a discount management program that aims to further enhance shareholder value.

Tortoise closed-end funds distribution details are as follows:

TYG, NTG, TTP, NDP and TPZ (each, a “Fund” and collectively, the “Funds”) distributions are payable on February 28, 2022, to shareholders of record on February 21, 2022.

Discount Management Program

In addition to share repurchases which have been executed by the Funds, the Board of Directors has approved tender offers as part of the discount management program and announced conditional tender offers for each of the calendar years 2022 and 2023. A Fund would conduct a tender for 5% of the Fund’s outstanding shares of common stock at a price equal to 98% of net asset value (NAV) if its shares trade at an average discount to NAV of more than 10% during either of the designated measurement periods. The first measurement period will commence on February 1, 2022 and end July 31, 2022 for 2022, and the second measurement period will commence on August 1, 2022 and end July 31, 2023, for 2023. Should a tender offer be required, it will be executed following the completion of each of the aforementioned measurement periods. The Board will continue to evaluate the effectiveness of share repurchases and tender offers as part of the Funds’ discount management program, and may announce additional actions in the future.

The Funds’ portfolio managers, officers and Board of Directors will not tender their shares if a tender is required.

“We believe revising the distribution levels and managed distribution targets, and the conditional tenders for each of 2022 and 2023, to be very positive for shareholders,” said Brad Adams, CEO of Tortoise’s closed-end funds.

“We also have deep conviction in the closed-end fund structure as it allows managers to invest with long investment horizons, without constant inflows and outflows of cash and provides the opportunity to invest in less liquid securities and private placements, use leverage and provide high current distributions.”

Sector Outlook

“Our outlook for energy infrastructure is incredibly bullish,” said Matt Sallee, President – Tortoise. “Energy was the top performing sector in 2021 with midstream energy outperforming the S&P 500 for the first time in five years. We think several data points indicate a favorable outlook for 2022. A number of Wall Street firms have recommendations to increase energy and infrastructure exposure to position for a higher inflationary environment. From a fundamental perspective, companies have been generating significant amounts of free cash flow and returning it to shareholders. There are also signs the COVID-19 pandemic could move to an endemic in 2022, a great boost for energy demand. Finally, there are indications of global acceptance that natural gas should be included as a sustainable energy source and investment option as energy transitions. Although there are some potential macro headwinds that are hard to predict including the global pandemic and other geopolitical concerns, we believe that all of these catalysts will lead to strong returns for energy and power infrastructure companies and we want to pass along that value to our shareholders.”

To learn more, watch our video with Matt Sallee and Mark Marifian, Director-Client Portfolio Manager here.

For book purposes, the source of distributions for TYG and NTG is estimated to be 0-10% ordinary income, with the remainder as return of capital, and the source of distributions for NDP is estimated to be approximately 30-40% ordinary income, with the remainder as return of capital.

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.

About Tortoise

Tortoise focuses on energy & power infrastructure and the transition to cleaner energy. Tortoise’s solid track record of energy value chain investment experience and research dates back more than 20 years. As one of the earliest investors in midstream energy, Tortoise believes it is well-positioned to be at the forefront of the global energy evolution that is underway. With a steady wins approach and a long-term perspective, Tortoise strives to make a positive impact on clients and communities. To learn more, please visit www.TortoiseEcofin.com.

Tortoise Capital Advisors, L.L.C. is the adviser to Tortoise Energy Infrastructure Corp., Tortoise Midstream Energy Fund, Inc., Tortoise Pipeline & Energy Fund, Inc., Tortoise Energy Independence Fund, Inc. and Tortoise Power and Energy Infrastructure Fund, Inc.

For additional information on these funds, please visit cef.tortoiseecofin.com.

Cautionary Statement Regarding Forward-Looking Statements

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

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