Leawood, Kansas based Tortoise Capital Advisors LLC (NTG), with $6.7 billion in assets under management, is recognized as an MLP institutional leader. It specializes in investing in publicly-traded energy infrastructure investments. Primarily it invests in MLPs that provide essential services in the energy industry by transporting, processing, distributing and storing crude oil, refined products and natural gas. The MLPs on average pay distributions in the 4%-10% range, with estimated distribution growth of 4%-6% in 2011.
The fund holds 44 equity positions, 75% of that in mid-caps and the remaining 25% equally distributed between large-caps and small-caps. The following summarizes the fund’s most significant picks and pans in the latest reported 13-F filing for the June 2011 quarter, updated based on any 13-G filings since the end of the quarter:
- Kinder Morgan Inc. (KMI), a provider of natural gas transportation storage services in North America. Tortoise added a new $15 million position in the company.
- Inergy LP (NRGY), a Master Limited Partnership (MLP) engaged in retail and wholesale propane distribution primarily in the U.S. and Canada. Tortoise holds a major $183 million position in the company, after cutting $8 million in the latest June quarter.
- Enterprise Products Partners (EPD), a MLP engaged in transportation, gathering, processing, and storage of natural gas, natural gas liquids (NGLs) and crude oil. Tortoise added $26 million to their prior $449 million position in the company.
- Energy Transfer Partners (ETP), a MLP engaged in gathering, treatment, processing, transportation, storage and marketing of natural gas in the U.S. This is Tortoise 2nd largest position in the portfolio at $386 million, including $12 million that they added in the June quarter.
- Williams Partners LP (WPZ) is a MLP engaged in the gathering, transportation and processing of natural gas. It is also engaged in the fractionation and storage of NGLs. At $359 million, this is Tortoise’s 3rd largest position in the portfolio.
- Targa Resources Partners (NGLS), a MLP engaged in gathering, compressing, processing, treating and sale of natural gas. Tortoise cut $15 million from their $230 million prior quarter position in the company.
- Magellan Midstream Partners (MMP), a MLP engaged in the transportation, storage and distribution of refined petroleum products in the U.S. Tortoise added $17 million to their $301 million prior quarter position in the company.
- Energy Transfer Equity LP (ETE) owns a diversified portfolio of energy assets, including natural gas gathering and transportation pipelines, natural gas treating and processing assets, and three natural gas storage facilities. Tortoise added $15 million to their $92 million prior quarter position in this company.
- Regency Energy Partners LP (RGNC), a MLP engaged in all services required to move gas from the wellhead to the marketplace, including gathering, compression, treating, processing and marketing. At $87 million, this was Tortoise’s largest addition in the June quarter.
- Marketwest Energy Partners (MWE), a MLP engaged in the gathering, compression, treating, processing and transportation of natural gas in the U.S. Tortoise cut $7 million from their $168 million prior quarter position in this company.
- Plains All American Pipelines LP (PAA), an MLP engaged in interstate and intrastate marketing, transportation and terminaling of crude oil. Tortoise added $18 million to their $227 million prior quarter position in this company.
- Oneok Partners LP (OKS), an MLP engaged in gathering, processing, storage and transportation of natural gas and NGLs in the U.S. At $277 million, this is one of Tortoise’s largest positions in the portfolio.
For those interested, Tortoise Capital Advisors offers six publicly traded closed-end funds, including Tortoise Energy Infrastructure Corp. (TYG), Tortoise Energy Capital Corp. (TYY), Tortoise North American Energy Corp. (TYN), Tortoise Capital Resources Corp. (TTO), and Tortoise Power and Energy Infrastructure Fund, Inc. (TPZ).
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Sources: Historical fundamentals including operating metrics and stock ownership information were derived using SEC filings data, I-Metrix® by Edgar Online®, Zacks Investment Research, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.