Mlp Wachovia Investment Presentation by gxe92241

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									  Investment Opportunities
  in the Energy Infrastructure Sector

April 29, 2009
Forward-Looking Statements


            This presentation contains certain forward-looking statements. These forward-looking statements include
                             g     g                                              g     g
            all statements regarding the intent, belief or current expectations regarding matters covered and all
            statements which are not statements of historical fact. The forward-looking statements involve known and
            unknown risk, uncertainties, contingencies and other factors, many of which are beyond our control.
            Since these factors can cause results, performance and achievements to differ materially from those
            discussed i the presentation, you are cautioned not to place undue reliance on the f
            di      d in h           i                i   d         l      d     li                 d l ki
                                                                                            h forward-looking
            statements. We will not update these forward-looking statements to reflect events or circumstances that
            occur after the date of the presentation.

            This presentation shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be
            any sale of the securities in any state or jurisdiction in which such offer or sale is not permitted.




2   Tortoise Capital Advisors L.L.C.
Family of Investment Companies


                                                                                                                                                   Total Assets
                              Company/                                                                 Primary Target                             ($ in millions)
                            Inception Date                           Ticker                             Investments                                (as of 3/31/09)

                           Tortoise Energy                                                           Public U.S. Energy
                                                                                                                                                         $705.5
                         Infrastructure Corp.                                                          Infrastructure
                                Feb. 2004                                                             Midstream MLPs

                           Tortoise Energy                                                   Public U.S. Energy Infrastructure                           $440.8
                            C it l Corp.
                            Capital C                                                                Midstream MLPs
                              May 2005                                                              More Concentrated


                      Tortoise North American                                                           Public U.S.                                     $106.4(1)
                           Energy Corp.                                                            Energy Infrastructure
                                O t 2005
                                Oct.                                                              Mid t
                                                                                                  Midstream, D      t
                                                                                                              Downstream
                                                                                                  & Upstream Companies

                           Tortoise Capital                                                        Private and Micro-Cap                               $103.5(2)
                                                                                                                                                       $
                           Resources Corp.                                                          Public U.S. Energy
                               Dec 2005
                               Dec.                                                                     Companies
                            (IPO Feb. 2007)




(1) Proforma. If proposed TYN/Tortoise Gas and Oil Corp. (TGO) reorganization announced April 1, 2009 had closed on Feb. 28, 2009, the
combined fund would have had total assets of approximately $106 million. As of Feb. 28, 2009, TYN had total assets of $76.0 million and TGO had
estimated total assets of $30.4 million.

(2) As of 02/28/09.

3   Tortoise Capital Advisors L.L.C.
Infrastructure Asset Class


                                        Basic physical systems critical to the economy


                 Transportation              Communication                  Regulated                 Social
                       Assets                     Assets                      Assets               Infrastructure




                Bridges and tunnels       Radio/TV broadcast towers    Electricity transmission       Schools

                      Toll roads               Wireless towers          Oil and gas pipelines         Hospitals

                                                                          Electricity and gas
                       Railroads               Cable systems                                           Prisons
                                                                             distribution

                  Rapid transit links         Satellite networks          Water distribution        Courthouses

                                                                      Waste water collection and
               Airports and seaports
                                                                         processing system




Source: J.P Morgan; CFA Institute.

4   Tortoise Capital Advisors L.L.C.
Infrastructure Asset Dependencies

                                                                                         •   Nearly all other critical infrastructure depends on
                                                                                             petroleum and natural gas
                                             Agriculture
                           Cable
                           y
                          Systems                          Schools                       •   Midstream assets allow for the essential transport
            Wireless
                              Back-up         Commercial            Prisons &                and storage of these commodities
            Systems
                             Generators        Buildings             Courts
                                                                                         •   Direct dependency examples:
                    Power                                  Hospitals           Water
    Satellite       Plants                                                    Heating         –    Generator Fuel
    Systems
                                                                    Food
                                                                                              –    Airport Jet Fuel
          Military                                                Industry      Water
                                                                               Cooling
                                                                                              –    Rail Diesel
          Tactical
Passenger Equip                                                                               –    Petrochemical Plant Feedstock
 Vehicles
                                                                    Rail
                                                                              Shipping        –    Hospital Heating and Cooling
                 Factories
                                                            Seaports                     •   Indirect dependency examples:
        HVAC                                                                Mass
       Systems          Lubricants                                         Transit            –    HVAC Systems
                                                      Airports
                                      Emergency                                               –    Distribution of Goods
                Residences             Services                  Toll Roads
                                                                                              –    Toll Road Revenue
                                Military
                                                Petrochemicals
                             Installations




5     Tortoise Capital Advisors L.L.C.
MLPs Offer High Barriers to Entry




    Source: Plains All American Pipeline, LP


6     Tortoise Capital Advisors L.L.C.
Durable Infrastructure Growth (Excludes GPs)


                                                                                                                   Credit
                                                                                                                   Crisis
                                                                                                Hurricane          Begins
                                   12%                                                           Katrina
                                                                                                                                          Recession
                                                                                                       10%
                                   10%                             Enron                                                     $56-149
                                                                                                9%              9%
                                                                                                                               Oil
                            tion




                                                      9/11             Venezuela Oil
                                   8%
            owth in Distribut




                                                                       Workers Strike                                                        Market
                                                                                                                                            Meltdown
                                               Recession                                6%                              6%
                                   6%
                                                              5%      5%       5%
                                         4%   4%
          Gro




                                   4%
                                                     3%
                                                                                                                                   0-4%
                                   2%


                                   0%
                                         1998 1999 2000 2001 2002 2003                  2004 2005 2006 2007 2008 2009E

                                                           Actual Distribution Growth        Estimated Distribution Growth




Source: Wachovia Capital Markets and Tortoise Capital Advisors.

7   Tortoise Capital Advisors L.L.C.
Attractive MLP Entry Point
                                                                                          MLP Yields




    14%

    13%

    12%

    11%                                                                                                                            10.9%

    10%

      9%

      8%

      7%                                                                                                                            7.0%

      6%

      5%

      4%
            1/04
            3/04
            5/04
            7/04
            9/04
           11/04
            1/05
            3/05
            5/05
            7/05
            9/05
           11/05
            1/06
            3/06
            5/06
            7/06
            9/06
           11/06
            1/07
            3/07
            5/07
            7/07
            9/07
           11/07
            1/08
            3/08
            5/08
            7/08
            9/08
           11/08
            1/09
            3/09
                                     Alerian MLP Index Yield                                                 Average

Source: Spread to Treasury and MLP yields per Alerian and Bloomberg through March 31, 2009. See Appendix for index descriptions.


8   Tortoise Capital Advisors L.L.C.
Investment Attributes of Energy Infrastructure

            • Yield
                   –     Distributions roughly equal to underlying yield on MLP investments


            • Growth
                   –     Revenue is based upon volume growth and price increases
                   –     Expect long term growth of distributions close to nominal GDP


            • Quality
                   –     Energy infrastructure providers have experienced relatively low business risk
                   –     Diversified portfolio selected through proven process




9   Tortoise Capital Advisors L.L.C.
 pp
Appendix
MLPs Appear Positioned to Weather the Current Market Disruption


           Potential Risk                             Impact on MLPs

           Recession Reduces                            •   Portfolio holdings sensitivity tested for scenarios far beyond
           Consumption
                                                        previous recession

                                                               –   Median coverage ratio of 1.2x
                                                               –   PPI escalator offsets reduced demand
                                                               –  Reservation charges (natural gas pipelines) not impacted
                                                               by changes in demand

           Commodity Prices Volatile                    •   Limited sensitivity to crude oil and natural gas prices
                                                        •   Adequate coverage to maintain distributions


           Capital Markets Remain                       •   Not necessary to maintain or modestly grow distributions
           Impaired
                                                        •   MLPs can complete most announced capital projects


           Rising Interest Rates                        •   Most MLPs have less than 50% floating rate debt
                                                        •   Bank lines often swapped to fixed rates



Based on Tortoise Capital Advisors’ analysis of company filings.

11   Tortoise Capital Advisors L.L.C.
MLPs Offer Attractive Yield and Risk/Return
           25.0%

                                                                                                 22.0%


           20.0%
                                                                                          17.9%
                                                                                          17 9%                                   17.8%
                                                                                      16.7%
                                                                                                           15.7%
           15.0%
                                                      12.8%                                                                12.7%            12.2%
                        10.9%                                                                                         10.7%
           10.0%                    9.0%


                                                                   5.7%
                              5.0%
                              5 0%                          5.0%
                                                            5 0%
             5.0%                        4.1%                  3.9%                                    3.8%
                                             3.6%
                                                                                                                                        2.0%


             0.0%
                                    Yield           10 Year Total Return                 10 Year Ann Monthly             10 Year Ann Monthly
                                                                                          Standard Deviation             Downside Deviation
                                                                           -3.0%
            -5.0%
                                             U.S. MLPs         U.S. Utilities      U.S. REITs        U.S. Bonds         U.S. Equities
(1)
  Reflects square root of sum of squared deviations of monthly total returns below 0% divided by total number of months, on an annualized basis.
Note: As of 3/31/09. Please refer to the Appendix for index descriptions (Wachovia MLP Index used for MLPs)
Past performance is no guarantee of future results.

12    Tortoise Capital Advisors L.L.C.
                              Growth Outlook
                                                                                        Annual
                                                                                      Growth Rate
                 120
                                    Recession
                       Recession




                                                            Recession
                                                Recession

                                                                            Other
                                                                                        1.3%
                 100
                                                                                                                                                                                                           54%




                                                                                                                                                                MLP Relative Market Share
                                                                                                                                                                                            60%
                                                                                        0.7%




                                                                                                                                                                   Across Value Chain
                  80
Quadrillio Btu




                                                                            Coal                                                                                                            50%
                                                                                                                                                                                                                          37%
         on,




                                                                                                                                                                                            40%
                                                                                                                                                                                                                                     31%
                  60                                                                                                                                                                                                                          28%
                                                                        Natural Gas                                                                                                         30%
                                                                                                                                                                                                                                                         22%
                                                                                         0.3%
                  40                                                                                                                                                                        20%

                                                                        Petroleum                                                                                                           10%
                  20
                                                                                         0.2%                                                                                               0%
                                                                                                                                                                                                       Refined          Crude      Gathering Propane   Interstate
                   0                                                                                                                                                                                   Products                   & Processing            Gas
                                                                                                           Source: Internal estimates and public
                                                                                                           company announcements.
                                                                                                               p y                                                                                Source: Lehman Brothers 12/07




                 Demand                                                                              Infrastructure Growth Projects                          Asset Acquisition Migration

                  • The Energy Information Administration projects                                     • $15 billion spent in 2008                            • Significant pool of assets available for
                       continued growth for U.S. consumption over the                                                                                              migration to MLP structure
                       next 25 years.                                                                  • MLPs expected to invest over $10 billion in
                                                                                                          new and existing pipeline and storage facilities    • A i iti growth expected t exceed $5
                                                                                                                                                                Acquisition th      t d to     d
                  • Liquids pipelines benefit from a PPI escalator in                                     over the next two years.                                 billion between 2009 – 2010
                       their tariffs (built-in inflation hedge).
                                                                                                       • Growth spending should increase when capital
                                                                                                          markets recover.




                                                                             •        MLP growth largely dependent on external financing

                                                                             •        Limited access to capital likely to restrain short-term growth

                                                                             •        Growth should reaccelerate when capital markets recover



                              13   Tortoise Capital Advisors L.L.C.
 MLPs Provide Diversification Benefits


                                                        10-Year Correlations

                          MLPs               Equities    Bonds        REITs    Utilities   Oil Services
                                                                                               S   i      Commodities
MLPs                      100%
Equities                22.904%                100%
Bonds                   --1.104%             --5.125%    100%
REITs                   23.111%              53.967%    16.056%       100%
Utilities               40.225%              37.877%    7.839%       37.024%    100%
Oil Services            32.445%              56.210%    0.132%       24.152%   44.468%       100%
Commodities             18.092%              19.255%    2.267%       16.183%   30.626%      52.857%          100%




 All data for period ending 3/31/09.
 Equities = S&P 500 Index (Bloomberg)
 Bonds = Lehman Brothers Aggregate Bond Index
 REITs = FTSE/NAREIT Equity REIT Index
 Utilities = Dow Jones Utility Average Index
 Oil Services = PHLX Oil Services Sector Index
 MLPs = Wachovia MLP Energy Index
 Commodities= S&P GSCI Commodities Index

 Please refer to the Appendix for index descriptions.

 14   Tortoise Capital Advisors L.L.C.
Index Descriptions

        Energy                  Atlantic Asset       An unmanaged value-weighted basket of energy related publicly traded partnerships.
        Infrastructure          Management MLP       Atlantic Asset Management constructed the index and is an affiliate of Tortoise Capital
        MLPs                    Energy Index         Advisors. Data for years preceding 2000 included in Atlantic Asset Management MLP
                                                     Energy Index drawn from proprietary MLP research database.

                                Wachovia MLP Index   A float-adjusted, capitalization-weighted index of energy master limited partnerships (MLPs)
                                                     with a market capitalization of at least $200 million at the time of inclusion.

                                Alerian MLP Index    Composite of the 50 most prominent energy master limited partnerships calculated by
                                                     Standard & Poor's using a float-adjusted market capitalization methodology.

        Utilities               Dow Jones Utility    An unmanaged price-weighted index composed of stocks of 15 utility companies listed on
                                Average Index        the New York Stock Exchange.

        REITs                   FTSE NAREIT          An unmanaged capitalization-weighted index of all U.S. equity real estate investment trust.
                                Equity REIT Index

        Equities                S&P 500 Index        An unmanaged market-value weighted index of stocks.


        Bonds                   Lehman Aggregate     An unmanaged index comprised of government securities, mortgage-backed securities,
                                Bond Index           asset-backed securities and corporate securities to simulate the universe of bonds in the
                                                     market. The maturity of the bonds in the index are over one year.

        Commodities             S&P GSCI             A composite index of commodity sector returns representing an unleveraged, long-only
                                Commodities Index    investment in commodity futures that is broadly diversified across the spectrum of
                                                     commodities.

        Other                   PHX Oil Services     A price-weighted index composed of 15 companies that provide oil drilling and production
                                Sector Index         services, oil field equipment, support services and geophysical/reservoir services.




15   Tortoise Capital Advisors L.L.C.

								
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