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Tortoise Pipeline & Energy Fund: An Under-The-Hood Look At This 13.3%-Yielding, 11.3%-Discounted CEF

Published Mon, 31 Dec 2018 09:57:32 -0500 on Seeking Alpha

Tortoise Pipeline & Energy Fund (TTP) invests primarily in North American pipeline companies that transport natural gas, natural gas liquids (aka NGLs), crude oil, and refined products and, to a lesser extent, in other energy infrastructure companies.
It is designed to provide, with basic information given in Table 1 below:
Exposure to North American pipeline companies, which typically distribute at high yield; High level of total return, with an emphasis on current distributions, through leverage, which was at 29.7% as of November 30, 2018; One 1099 (no K-1s), no unrelated business taxable income (aka, UBTI), hence IRA and tax-exempt suitability.
Table 1. Basis data of TTP. Source.
Investment portfolio
The top 10 positions in TTP's investment portfolio are pipeline operators (Table 2), with an overview of them given below.

Table 2. Top 10 holdings of TTP. Source.
ONEOK, Inc. (OKE) operates a 38,000-mile network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions (Fig. 1).
Fig. 1. Assets of ONEOK. Source.
Plains GP Holdings, L.P. (PAGP) is a holding company which operates one of the largest midstream infrastructure asset portfolio in North America (Fig. 2).
Fig. 2. Plains midstream assets. Source.
TransCanada Corp. (TRP) is truly North American; it operates natural gas, oil, liquids midstream assets (pipelines... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ENBRIDGE ENERGY MANAGEMENT 10.51   0.0 0.00 0.00 13.65
ENBRIDGE ENERGY PARTNERS LP 10.79   21.6 0.50 1.40 13.35
TARGA RESOURCES 39.28   0.0 -1.32 3.64 9.30
MPLX LP 28.61   12.4 2.30 2.67 9.28
ENBRIDGE 34.70   19.7 1.76 2.21 6.38
WILLIAMS 24.29   303.6 0.08 1.52 6.12
ONEOK 73.93   24.6 3.01 3.56 4.84
TRANSCANADA 49.89   14.6 3.42 2.25 3.14
SPECTRA ENERGY PARTNERS LP 35.40   0.0 0.00 0.00 0.00