Wealth & Finance International - March 2017

45 March 2017 executive order. In addition, the return of growth in U.S. oil production will likely accelerate the pace of U.S. energy infrastructure development. Exports of oil and gas from the U.S. The global energy landscape is changing and we believe that the U.S. will become a significant supplier of low cost oil and natural gas to the rest of the world. Just a few years ago, the U.S. was building facilities to import more oil and natural gas. It was unimaginable that the U.S. would be an exporter of such commodities. Today, according to the EIA, the U.S. is exporting approximately 1 mil- lion barrels per day of oil and facilities in place to export over 1 bcf/d of natural gas. This is just beginning and the export theme is expected to accelerate and could be a surprise. Additional energy infrastructure will need to be constructed to support increased exports of U.S.-produced oil and natural gas Interest Rates: With the strengthening U.S. economy, many investors are anticipating higher interest rates and wondering what that could mean for dividend paying energy infrastructure stocks. First, it’s important to distinguish the catalyst for rising rates. Rising inflation or an improving economy are catalysts for rising rates that both have potential benefits for stocks. A strengthening economy helps energy infrastructure. We believe both rising-rate catalysts could drive improved cash flow, which could offset an increase in rising equity and debt. Given the cur- rent interest rate backdrop, we expect that a larger rotation out of bonds and into equities is possible. This could help drive the market higher. Many investors are still likely to be focused on finding yield, especially to replace those fixed income investments. We think energy infrastructure securities could benefit from this as well. Summary The energy sector is a critical sector serving consumers basic needs. Low cost energy can serve as a catalyst to accelerate the growth of both developed and emerging economies. The U.S. is positioning itself as a low-cost provider of crude oil, natural gas and natural gas liquids to the rest of the world under a new administration that generally seems to be positive on energy. With OPEC’s latest actions to stabilise oil prices, the table seems to be set for the North American energy sector in 2017. About Tortoise Capital Advisors Tortoise Capital Advisors is a U.S. investment manager that is a rec- ognised leader in North American listed energy investing. Tortoise has the longest tenure of managing registered MLP funds and pioneered the first listed MLP fund in 2004. Products include U.S. publicly traded closed-end funds, mutual funds, private funds as well as separate accounts. As of 28 February, 2017, Tortoise had approximately USD $17.2 billion of assets under management. Tortoise’s recently launched UCITS fund provides access to real, long-lived assets through a focus on the large and diverse North American pipeline universe of one of the world’s largest producers and consumers of energy. Nothing contained in this communication constitutes tax, legal, or investment advice. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Views expressed herein should not be relied on as investment advice or an indication of trading intent. Past performance does not guarantee future results. The S&P Energy Select Sector® Index is a capitalisation-weighted index of S&P 500 Index companies in the energy sector involved in the devel- opment or production of energy products. Company: Tortoise Capital Advisors Name: Pam Kearney Director, Investor and Public Relations Email: [email protected] Web Address: www.tortoiseadvisors.com Address: 11550 Ash Street, Suite 300 Leawood, KS 66211 Telephone: +1 913 981 1020