tygnq.htm

 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 




Investment Company Act file number 811-21462



Tortoise Energy Infrastructure Corporation
(Exact name of registrant as specified in charter)



11550 Ash Street, Suite 300, Leawood, KS 66211
(Address of principal executive offices) (Zip code)



David J. Schulte
11550 Ash Street, Suite 300, Leawood, KS 66211
(Name and address of agent for service)



913-981-1020
Registrant's telephone number, including area code



Date of fiscal year end: November 30


Date of reporting period:  August 31, 2012


 
 
 
 
Item 1. Schedule of Investments.

Tortoise Energy Infrastructure Corporation
            
SCHEDULE OF INVESTMENTS (Unaudited)
            
               
     
August 31, 2012
  
Master Limited Partnerships and Related Companies - 169.9% (1)
  
Shares
    
Fair Value
  
Crude/Refined Products Pipelines - 72.4% (1)
            
United States - 72.4% (1)
            
Buckeye Partners, L.P.
     1,502,900     $ 74,273,318  
Enbridge Energy Partners, L.P.
     2,311,900       68,108,574  
Holly Energy Partners, L.P.
     616,000       41,487,600  
Kinder Morgan Management, LLC (2)
     1,247,744       92,482,790  
Magellan Midstream Partners, L.P.
     1,680,967       139,469,832  
NuStar Energy L.P.
     854,300       43,330,096  
Oiltanking Partners, L.P.
     418,500       15,392,430  
Plains All American Pipeline, L.P.
     1,304,800       112,904,344  
Sunoco Logistics Partners L.P.
     2,569,300       119,857,845  
Tesoro Logistics LP
     410,423       17,882,130  
 
               725,188,959  
Natural Gas/Natural Gas Liquids Pipelines - 73.7% (1)
                
United States - 73.7% (1)
                
Boardwalk Pipeline Partners, LP
     2,911,825       78,706,630  
El Paso Pipeline Partners, L.P.
     2,513,790       90,974,060  
Energy Transfer Equity, L.P.
     825,017       36,259,497  
Energy Transfer Partners, L.P.
     1,759,295       75,157,082  
Enterprise Products Partners L.P.
     2,287,200       122,136,480  
EQT Midstream Partners, LP
     339,745       9,329,398  
Inergy Midstream, L.P.
     698,500       16,275,050  
ONEOK Partners, L.P.
     1,460,500       82,985,610  
Regency Energy Partners LP
     2,681,427       62,048,221  
Spectra Energy Partners, LP
     907,627       29,062,216  
TC PipeLines, LP
     938,185       42,612,363  
Williams Partners L.P.
     1,794,900       92,580,942  
                738,127,549  
Natural Gas Gathering/Processing - 23.8% (1)
                
United States - 23.8% (1)
                
Access Midstream Partners, L.P.
     1,128,000       33,986,640  
Copano Energy, L.L.C.
     706,368       21,678,434  
Crestwood Midstream Partners LP (2)
     677,645       16,670,067  
DCP Midstream Partners, LP
     1,042,001       44,951,923  
MarkWest Energy Partners, L.P.
     520,900       27,659,790  
Targa Resources Partners LP
     1,070,500       43,376,660  
Western Gas Partners LP
     1,043,962       49,849,185  
                238,172,699  
                 
Total Master Limited Partnerships and Related Companies (Cost $895,232,340)
             1,701,489,207  
                   
Short-Term Investment - 0.0% (1)
                
United States Investment Company - 0.0% (1)
                
Fidelity Institutional Money Market Portfolio - Class I, 0.16% (3) (Cost $113,622)
     113,622       113,622  
                   
Total Investments - 169.9% (1) (Cost $895,345,962)
             1,701,602,829  
                   
Other Assets and Liabilities - (43.2%) (1)
             (432,292,327 )
Long-Term Debt Obligations - (19.4%) (1)
             (194,975,000 )
Mandatory Redeemable Preferred Stock at Liquidation Value - (7.3%) (1)
             (73,000,000 )
Total Net Assets Applicable to Common Stockholders - 100.0% (1)
           $ 1,001,335,502  
                   
                   
(1)
Calculated as a percentage of net assets applicable to common stockholders.
                
(2)
Security distributions are paid-in-kind.
                
(3)
Rate indicated is the current yield as of August 31, 2012.
                

 
 
 

Various inputs are used in determining the value of the Company’s investments.  These inputs are summarized in the three broad levels listed below:
 
    Level 1 – quoted prices in active markets for identical investments
    Level 2 – other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.)
    Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following table provides the fair value measurements of applicable Company assets by level within the fair value hierarchy as of August 31, 2012.  These assets are measured on a recurring basis.

 
Fair Value at
                
Description
August 31, 2012
  
Level 1
  
Level 2
    
Level 3
  
Assets
                  
Equity Securities:
                  
Master Limited Partnerships and Related Companies(a)
 $ 1,701,489,207   $ 1,701,489,207   $ -     $ -  
Other:
                          
Short-Term Investment(b)
   113,622     113,622     -       -  
Total Assets
 $ 1,701,602,829   $ 1,701,602,829   $ -     $ -  

(a)  
All other industry classifications are identified in the Schedule of Investments.
(b)  
Short-term investment is a sweep investment for cash balances in the Company at August 31, 2012.

Valuation Techniques
In general, and where applicable, the Company uses readily available market quotations based upon the last updated sales price from the principal market to determine fair value.  This pricing methodology applies to the Company’s Level 1 investments. 

An equity security of a publicly traded company acquired in a private placement transaction without registration under the Securities Act of 1933, as amended (the “1933 Act”), is subject to restrictions on resale that can affect the security's fair value.  If such a security is convertible into publicly-traded common shares, the security generally will be valued at the common share market price adjusted by a percentage discount due to the restrictions and categorized as Level 2 in the fair value hierarchy.  If the security has characteristics that are dissimilar to the class of security that trades on the open market, the security will generally be valued and categorized as Level 3 in the fair value hierarchy.

The Company utilizes the beginning of reporting period method for determining transfers between levels.  There were no transfers between levels during the period from December 1, 2011 through August 31, 2012.
 
As of August 31, 2012, the aggregate cost of securities for federal income tax purposes was $692,883,156.  The aggregate gross unrealized appreciation for all securities in which there was an excess of fair value over tax cost was $1,008,719,673, the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over fair value was $0 and the net unrealized appreciation was $1,008,719,673.
 
 
 


Item 2. Controls and Procedures.
 
(a)  
The registrant’s Chief Executive Officer and its Chief Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b)  
There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
 
Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) are filed herewith.

 
 
 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


  Tortoise Energy Infrastructure Corporation  
       
Date:  October 29, 2012
By:
 /s/ Terry Matlack  
    Terry Matlack  
    Chief Executive Officer  
       



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

  Tortoise Energy Infrastructure Corporation  
       
Date: October 29, 2012
By:
  /s/ Terry Matlack  
    Terry Matlack  
    Chief Executive Officer  
       
  Tortoise Energy Infrastructure Corporation  
       
Date: October 29, 2012
By:
  /s/ P. Bradley Adams  
    P. Bradley Adams  
    Chief Financial Officer