LEAWOOD, Kan. - Feb. 12, 2009 - The Board of Directors of Tortoise Energy Capital Corp. (NYSE: TYY) today declared the company's first quarter 2009 distribution of $0.40 per share, a decrease of $0.03 or 7.0 percent as compared to last quarter. The distribution represents an estimated 90 percent of distributable cash flow for the quarter and will be paid on Mar. 2, 2009 to stockholders of record on Feb. 23, 2009.
"Last quarter, in order to comply with coverage ratios under our leverage agreements and the Investment Company Act of 1940, we sold MLP investments and reduced leverage, slightly decreasing our estimate of longer-term distributable cash flow," said Tortoise Energy Capital Corp.'s President and Chief Executive Officer, David Schulte. "While our payout ratio of 90 percent of distributable cash flow this quarter is below our target of 95 percent, we believe a more conservative payout is warranted based on our current leverage position. Based upon our current expectations, we believe our portfolio companies will continue to pay us distributions which will allow quarterly distributions to our stockholders of not less than $0.38 during fiscal year 2009. While we expect the next year to be challenging for almost every industry, including the energy infrastructure sector, we continue to believe the flow of energy commodities remains critical to our economy and that the long term prospects for MLP investments are attractive," added Mr. Schulte.
For more information regarding financial performance and perspectives on market conditions impacting the MLP sector, please review TYY's 2008 annual report available on the company's Web site at www.tortoiseadvisors.com.
Expected Treatment of Distribution
A portion of this distribution is expected to be treated as return of capital for income tax purposes, although the ultimate determination will not be made until determination of our earnings and profits after our year-end. Based on current financial information, this distribution is estimated to consist of 100 percent return of capital for book purposes.
About Tortoise Energy Capital Corp.
Tortoise Energy Capital Corp. provides financing for master limited partnerships (MLPs) in the energy infrastructure sector, focusing on crude oil and refined petroleum products MLPs and natural gas and natural gas liquids pipelines MLPs. Tortoise Energy Capital Corp. seeks to provide its stockholders a high level of total return with an emphasis on current distributions. The company invests in companies operating energy infrastructure assets that are critical to the U.S. economy.
About Tortoise Capital Advisors
Tortoise Capital Advisors, LLC is a pioneer in capital markets for master limited partnership (MLP) investment companies and a leader in closed-end funds and separately managed accounts focused on MLPs in the energy sector. As of Jan. 31, 2009, the adviser had approximately $1.7 billion of assets under management. For more information, visit our Web site at www.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.
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 company 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 funds' 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 company and Tortoise Capital Advisors do not assume a duty to update this forward-looking statement. Any distribution paid in the future to our stockholders will depend on the actual performance of the company's investments, its costs of leverage and other operating expenses and will be subject to the approval of the company's Board and compliance with asset coverage requirements of the Investment Company Act of 1940 and the leverage covenants.
Tortoise Capital Advisors, LLC
Pam Kearney, Investor Relations, (866) 362-9331, firstname.lastname@example.org