OVERLAND PARK, Kan. - Nov. 01, 2006 - Tortoise North American Energy Corp. (NYSE: TYN) is responding to the Canadian government's October 31 announced plan to tax income trusts the same as corporations. The plan stipulates that after a four-year transition period, existing trusts will be subject to a corporate income tax rate ranging from 31-35 percent. This proposal, if enacted, would meaningfully impact the taxation of the energy trusts in which the company invests. As of August 31, 2006, Tortoise North American Energy Corp. held approximately 51 percent of its portfolio in existing Canadian income trusts.
This materially negative news will not be reflected in the Oct. 31, 2006 NAV which will be released today after the market closes. Also, the net asset value could continue to decline in anticipation of the potential reduction in distributions from such trusts over the next four years.
"We will review our investment strategies in light of this proposal, but in the short-term we do not expect a reduction in our dividend or foreign source income tax credit," said Managing Director Zach Hamel. "We remain convinced that the Canadian energy reserves will be a growing source of supply for the entire continent for decades to come."
For more information on the Canadian government's proposal visit http://www.fin.gc.ca/news06/06-061e.html
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
Tortoise Capital Advisors, LLC, the adviser to Tortoise North American Energy Corp., 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 infrastructure sector. As of August 31, 2006, the adviser had approximately $1.9 billion of energy infrastructure investment 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 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.
Tortoise Capital Advisors, LLC
Pam Kearney, Investor Relations, (913) 322-5839, firstname.lastname@example.org