Tortoise Midstream Energy: Expected To Benefit From Discount To NAV In Energy Space

Summary

• As crude oil prices increase (WTI now over $80, a 7-year high), along with higher natural gas prices, investor attention should increasingly focus on energy plays.
• NTG trades at a 22.88% discount to the value of the fund's underlying publicly-traded securities (Friday, October 8, 2021 close).
• NTG trades at a greater discount than average fund in its niche. Ouch!
• I expect the price of NTG to benefit as investors buy, narrowing the discount and hopefully riding continuing higher energy prices.
• In my mind, this is a weeks- or months-long trade, targeting a 10%-20% gain, not a years-long investment. But, we will see.

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NTG Closed-End Fund Description

Tortoise MLP Fund (NTG) seeks to provide stockholders with a high level of total return with an emphasis on current distributions. NTG invests primarily in midstream energy equities that own and operate a network of

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NTG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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