Tortoise
Capital Resources Corp. Announces 2nd
Quarter
Distribution
FOR
IMMEDIATE RELEASE
LEAWOOD,
Kan.– May 12, 2009 – The Board of Directors of Tortoise Capital
Resources Corp. (NYSE: TTO) today declared the company’s second quarter 2009
distribution of $0.13 per share, a decrease of $0.10 from the
prior quarter. The
distribution will be paid on June 1, 2009 to stockholders of
record on May 22,
2009.
The
company’s second quarter distribution decreased primarily due to reductions
in
the distributions from two of its portfolio holdings. Eagle Rock
Energy Partners, L.P. (NASDAQ: EROC) recently announced a decrease
in its
distribution from $0.41 to $0.025 per common unit. TTO holds
977,470 common
units of EROC as part of its original investment in EROC prior
to its public
offering and as partial consideration for the sale of Millennium
Midstream
Partners, LP, including shares held in escrow. The effect of this
decrease impacted TTO’s distributable cash flow by $0.05 per share.
Abraxas
Energy Partners L.P., a private company investment, recently
announced they
would suspend paying a cash distribution until their existing
subordinated
credit facility is renewed, impacting TTO’s distributable cash flow by an
additional $0.02 per share.
High
Sierra Energy, LP, TTO’s largest holding, declared a cash distribution of $0.61,
which represents approximately $0.07 of TTO’s distributable cash flow this
quarter. High Sierra’s future cash distributions, however, may be uncertain
unless they are able to secure a long-term credit facility.
During
the current quarter, TTO reduced its position in existing publicly-traded
holdings and used approximately 50 percent of the sales
proceeds to reduce the amount outstanding under its bank credit
facility. The company used the remaining sales proceeds to purchase
publicly-traded MLPs which may provide a more predictable distribution
in the
future.
We
continue to speak with lenders regarding the renewal of our
existing credit
facility which matures on June 20, 2009. The company’s ability to pay
future distributions will likely be dependent on renewal or
replacement of this
facility under terms consistent with the existing revolver.
Expected
Treatment of Distribution
A
portion
of this distribution is expected to be treated as return of
capital for income
tax purposes, although the ultimate determination will not
be made until
determination of the company’s earnings and profits after its
year-end. Based on current financial information, this distribution
is estimated to consist of 15-20 percent ordinary income and
the remainder as
return of capital for book purposes.
About
Tortoise Capital Resources Corp.
Tortoise
Capital Resources invests primarily in privately-held and micro-cap
public
companies operating in the midstream and downstream segments,
and to a lesser
extent the upstream segment, of the U.S. energy infrastructure
sector. Tortoise
Capital Resources seeks to provide stockholders a high level
of total return,
with an emphasis on distributions and distribution growth.
About
Tortoise Capital Advisors
Tortoise
Capital Advisors, LLC 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 sector.
As of April
30, 2009, the adviser had approximately $1.9 billion of 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 these 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.
Forward-Looking
Statement
This
press release contains certain statements that may include
“forward-looking
statements” within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act
of 1934. All statements, other than statements of historical
fact, included
herein are "forward-looking statements." Although the company
and Tortoise
Capital Advisors believe that the expectations reflected in
these
forward-looking statements are reasonable, they do involve
assumptions, risks
and uncertainties, and these expectations may prove to be incorrect.
Actual
results could differ materially from those anticipated in these
forward-looking
statements as a result of a variety of factors, including those
discussed in the
funds’ reports that are filed with the Securities and Exchange Commission.
You
should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Other than as
required by law, the company and Tortoise Capital Advisors
do not assume a duty
to update this forward-looking statement. Any distribution paid in
the future to our stockholders will depend on the actual performance
of the
company’s investments, its costs of leverage and other operating expenses
and
will be subject to the approval of the company’s Board and compliance with asset
coverage requirements of the Investment Company Act of 1940
and the leverage
covenants.
Contact
information:
Tortoise
Capital Advisors, LLC
Pam
Kearney, Investor Relations, (866) 362-9331,
pkearney@tortoiseadvisors.com