OVERLAND PARK, Kan. - June 28, 2007 - Tortoise North American Energy Corp. (NYSE: TYN) is responding to the Canadian government's recent passage of Bill C-52 to begin taxing income trusts at a corporate income tax rate of 35 percent in 2011.
Since the Oct. 31, 2006 announcement by the Canadian Minister of Finance to tax income trusts, Tortoise North American Energy has maintained its investment goal of yield, growth and quality through its portfolio of midstream assets with relatively stable, fee-based cash flows. This approach contributed to a net asset value (NAV) increase of 27 percent from Nov. 01, 2006 and a distribution increase of six percent.
"The passage of Bill C-52 does not change the fact that Canada is a tremendously important provider of crude oil and natural gas to the U.S.," said Managing Director Zach Hamel. "With Canadian oil sands producers expected to invest more than $100 billion to tap reserves in the next several years, we believe Canadian income trusts will play a critical role in transporting oil to the U.S."
The company will continue to monitor the implications of this bill, and report NAV on a weekly basis until further notice.
About Tortoise North American Energy Corp.
Tortoise North American Energy Corp. invests in a portfolio consisting primarily of publicly traded Canadian royalty trusts and income trusts (collectively, RITs) and publicly traded United States master limited partnerships (MLPs) with an emphasis on the midstream and downstream North American energy sector. Tortoise North American Energy Corp.'s goal is to provide its stockholders with a high level of total return with an emphasis on current dividends.
About Tortoise Capital Advisors, LLC
Tortoise Capital Advisors, LLC, the adviser to Tortoise North American Energy Corp., is a pioneer in the 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 infrastructure sector. As of April 30, 2007, the adviser had approximately $2.9 billion of assets under management.
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 the 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. Investors should consider the investment objective, risks, charges and expenses of the fund carefully before investing. For this and other important information, investors should refer to the closed-end fund prospectus and read it carefully before investing.
Contact information: Tortoise Capital Advisors, LLC Pam Kearney, Investor Relations, (866) 362-9331, firstname.lastname@example.org