Edgar Filing: FIRST TRUST ENERGY INCOME & GROWTH FUND

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES

Investment Company Act file number 811-21549
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First Trust Energy Income and Growth Fund
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(Exact name of registrant as specified in charter)

120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(Address of principal executive offices) (Zip code)

W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(Name and address of agent for service)

registrant's telephone number, including area code: 630-765-8000

Date of fiscal year end: November 30
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Date of reporting period: May 31, 2012
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. ss. 3507.

ITEM 1. REPORTS TO STOCKHOLDERS.

The Report to Shareholders is attached herewith.

FIRST TRUST

SEMI-ANNUAL REPORT
FOR THE SIX MONTHS ENDED
MAY 31, 2012

FIRST TRUST
ENERGY
INCOME AND GROWTH
FUND

EIP
ENERGY INCOME PARTNERS, LLC

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TABLE OF CONTENTS
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FIRST TRUST ENERGY INCOME AND GROWTH FUND (FEN)
SEMI-ANNUAL REPORT
MAY 31, 2012

Shareholder Letter........................................................... 1
At A Glance.................................................................. 2
Portfolio Commentary......................................................... 3
Portfolio of Investments..................................................... 5
Statement of Assets and Liabilities.......................................... 9
Statement of Operations...................................................... 10
Statements of Changes in Net Assets.......................................... 11
Statement of Cash Flows...................................................... 12
Financial Highlights......................................................... 13
Notes to Financial Statements................................................ 14
Additional Information....................................................... 21

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This report contains certain forward-looking statements within the meaning of
the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934,
as amended. Forward-looking statements include statements regarding the goals,
beliefs, plans or current expectations of First Trust Advisors L.P. ("First
Trust" or the "Advisor") and/or Energy Income Partners, LLC ("EIP" or the
"Sub-Advisor") and their respective representatives, taking into account the
information currently available to them. Forward-looking statements include all
statements that do not relate solely to current or historical fact. For example,
forward-looking statements include the use of words such as "anticipate,"
"estimate," "intend," "expect," "believe," "plan," "may," "should," "would" or
other words that convey uncertainty of future events or outcomes.

Forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
First Trust Energy Income and Growth Fund (the "Fund") to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking statements. When evaluating the information
included in this report, you are cautioned not to place undue reliance on these
forward-looking statements, which reflect the judgment of the Advisor and/or
Sub-Advisor and their respective representatives only as of the date hereof. We
undertake no obligation to publicly revise or update these forward-looking
statements to reflect events and circumstances that arise after the date hereof.

PERFORMANCE AND RISK DISCLOSURE

There is no assurance that the Fund will achieve its investment objective. The
Fund is subject to market risk, which is the possibility that the market values
of securities owned by the Fund will decline and that the value of the Fund
shares may therefore be less than what you paid for them. Accordingly, you can
lose money by investing in the Fund. See "Risk Considerations" in the Notes to
Financial Statements for a discussion of certain other risks of investing in the
Fund.

Performance data quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher than the figures
shown. For the most recent month-end performance figures, please visit
http://www.ftportfolios.com or speak with your financial advisor. Investment
returns, net asset value and common share price will fluctuate and Fund shares,
when sold, may be worth more or less than their original cost.

HOW TO READ THIS REPORT

This report contains information that may help you evaluate your investment. It
includes details about the Fund and presents data and analysis that provide
insight into the Fund's performance and investment approach.

By reading the portfolio commentary by the portfolio management team of the
Fund, you may obtain an understanding of how the market environment affected the
Fund's performance. The statistical information that follows may help you
understand the Fund's performance compared to that of relevant market
benchmarks.

It is important to keep in mind that the opinions expressed by personnel of EIP
are just that: informed opinions. They should not be considered to be promises
or advice. The opinions, like the statistics, cover the period through the date
on the cover of this report. The risks of investing in the Fund are spelled out
in the prospectus, the statement of additional information, this report and
other Fund regulatory filings.

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SHAREHOLDER LETTER
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FIRST TRUST ENERGY INCOME AND GROWTH FUND (FEN) SEMI-ANNUAL
LETTER FROM THE CHAIRMAN AND CEO

MAY 31, 2012

Dear Shareholders:

I am pleased to present you with the semi-annual report for your investment in
First Trust Energy Income and Growth Fund (the "Fund").

The report you hold contains detailed information about your investment; a
portfolio commentary from the Fund's management team that provides a recap of
the period; a performance analysis and a market and Fund outlook. Additionally,
you will find the Fund's financial statements for the period this report covers.
I encourage you to read this document and discuss it with your financial
advisor. A successful investor is also typically a knowledgeable one, as we have
found to be the case at First Trust.

First Trust remains committed to being a long-term investor and investment
manager and to bringing you quality financial solutions regardless of market ups
and downs. We have always believed, as I have written previously, that there are
two ways to attain success in reaching your financial goals: staying invested in
quality products and having a long-term investment horizon. We are committed to
this approach in the products we manage or supervise and offer to investors.

As you know, First Trust offers a variety of products that we believe could fit
many financial plans to help investors seeking long-term investment success. We
encourage you to talk to your advisor about the other investments First Trust
offers that might also fit your financial goals and to discuss those goals with
your advisor regularly so that he or she can help keep you on track.

First Trust will continue to make up-to-date information about your investments
available so you and your financial advisor are current on any First Trust
investments you own. We value our relationship with you, and thank you for the
opportunity to assist you in achieving your financial goals. I look forward to
the remainder of 2012 and to the next edition of your Fund's report.

Sincerely,

/s/ James A. Bowen

James A. Bowen
Chairman of the Board of Trustees of First Trust Energy Income and Growth Fund
and Chief Executive Officer of First Trust Advisors L.P.

Page 1

FIRST TRUST ENERGY INCOME AND GROWTH FUND
"AT A GLANCE"
AS OF MAY 31, 2012 (UNAUDITED)

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FUND STATISTICS
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Symbol on NYSE Amex FEN
Common Share Price $29.25
Common Share Net Asset Value ("NAV") $27.28
Premium (Discount) to NAV 7.22%
Net Assets Applicable to Common Shares $385,331,201
Current Quarterly Distribution per Common Share (1) $0.4850
Current Annualized Distribution per Common Share $1.9400
Current Distribution Rate on Closing Common Share Price (2) 6.63%
Current Distribution Rate on NAV (2) 7.11%

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COMMON SHARE PRICE & NAV (WEEKLY CLOSING PRICE)
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Common Share Price NAV
5/11 $29.20 $27.02
29.18 26.63
28.30 26.62
27.83 26.00
6/11 28.39 26.72
29.23 27.50
29.89 27.62
29.88 27.40
29.63 27.06
7/11 27.24 26.51
24.90 25.07
26.25 25.71
25.18 24.79
8/11 25.92 25.32
26.52 25.76
26.13 25.58
26.72 25.72
25.33 25.09
9/11 25.34 25.13
25.52 25.23
26.29 26.49
26.65 26.74
10/11 27.33 27.44
27.06 27.41
27.25 27.08
27.50 27.18
11/11 27.03 26.60
27.70 27.59
27.81 27.58
27.79 27.64
28.53 28.53
12/11 28.25 29.01
29.10 29.06
28.98 28.49
29.02 28.46
1/12 29.89 28.51
30.50 28.93
30.14 29.02
30.56 29.64
2/12 31.24 29.87
31.56 29.64
31.10 29.47
30.62 28.98
29.83 29.05
3/12 30.05 28.74
30.84 28.78
30.81 28.48
30.71 28.41
4/12 30.87 28.72
30.43 28.66
30.09 28.29
28.19 27.06
29.39 27.65
5/12 29.25 27.27

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PERFORMANCE
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Average Annual Total Return
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6 Months Ended 1 Year Ended 5 Years Ended Inception (6/24/2004)
5/31/2012 5/31/2012 5/31/2012 to 5/31/2012
FUND PERFORMANCE (3)

NAV 3.24% 8.01% 5.46% 11.98%
Market Value 10.13% 7.20% 8.72% 12.33%

INDEX PERFORMANCE
S&P 500 Index 6.23% 1.90% -0.99% 3.81%
Barclays Capital U.S. Credit Index
of Corporate Bonds 6.13% 8.37% 7.46% 6.32%
Alerian MLP Total Return Index 2.01% 5.54% 9.33% 15.43%
Wells Fargo Midstream MLP Index 4.38% 10.52% 10.38% 15.79%

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% OF TOTAL
INDUSTRY CLASSIFICATION INVESTMENTS
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Midstream Oil 52.8%
Midstream Gas 28.4
Utility 8.9
Coal 4.7
Propane 3.2
Marine 2.0
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Total 100.0%
======

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% OF TOTAL
TOP 10 HOLDINGS INVESTMENTS
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Magellan Midstream Partners, L.P. 7.5%
Enterprise Products Partners, L.P. 7.3
Plains All American Pipeline, L.P. 6.5
Kinder Morgan Management, LLC 5.4
Williams Cos., Inc. 4.0
Sunoco Logistics Partners, L.P. 3.7
ONEOK Partners, L.P. 3.7
NuStar Energy, L.P. 3.6
Buckeye Partners, L.P. 3.1
Enbridge Energy Partners, L.P. 2.9
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Total 47.7%
=====

(1) Most recent distribution paid or declared through 5/31/2012. Subject to
change in the future. The distribution was increased subsequent to
5/31/2012. See Note 9 - Subsequent Events in the Notes to Financial
Statements.

(2) Distribution rates are calculated by annualizing the most recent
distribution paid or declared through the report date and then dividing by
Common Share price or NAV, as applicable, as of 5/31/2012. Subject to
change in the future.

(3) Total return is based on the combination of reinvested dividend, capital
gain and return of capital distributions, if any, at prices obtained by
the Dividend Reinvestment Plan and changes in NAV per share for net asset
value returns and changes in Common Share price for market value returns.
Total returns do not reflect sales load and are not annualized for periods
less than one year. Past performance is not indicative of future results.

Page 2

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PORTFOLIO COMMENTARY
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FIRST TRUST ENERGY INCOME AND GROWTH FUND
SEMI-ANNUAL REPORT
MAY 31, 2012

SUB-ADVISOR

ENERGY INCOME PARTNERS, LLC

Energy Income Partners, LLC ("EIP"), Westport, CT, was founded in 2003 to
provide professional asset management services in the area of energy-related
master limited partnerships ("MLPs") and other high-payout securities such as
pipeline companies, utilities and Canadian infrastructure equities. EIP mainly
focuses on investments in energy-related infrastructure assets such as
pipelines, petroleum storage and terminals that receive fee-based or regulated
income from their corporate customers. EIP managed or supervised approximately
$1.6 billion of assets, as of May 31, 2012. The other funds advised by EIP
include a partnership for U.S. high net worth individuals and a
master-and-feeder fund for institutions. EIP also manages separately managed
accounts. EIP is a registered investment advisor and serves as an advisor or
sub-advisor to two registered investment companies other than the Fund.

PORTFOLIO MANAGEMENT TEAM

JAMES J. MURCHIE
FOUNDER AND CEO OF ENERGY INCOME PARTNERS, LLC

Mr. Murchie founded EIP in 2003 and is the portfolio manager for all funds
advised by EIP which focus on energy-related master limited partnerships and
other high payout securities of companies that operate energy infrastructure.
From 2005 to mid-2006, Mr. Murchie and the EIP investment team joined Pequot
Capital Management. In July 2006, Mr. Murchie and the EIP investment team left
Pequot and re-established EIP. From 1998 to 2003, Mr. Murchie managed a
long/short fund that invested in energy and cyclical equities and commodities.
From 1995 to 1997, he was a managing director at Tiger Management where his
primary responsibilities were investments in energy, commodities and related
equities. From 1990 to 1995, Mr. Murchie was a principal at Sanford C. Bernstein
where he was a top-ranked energy analyst and sat on the Research Department's
Recommendation Review Committee. Before joining Bernstein, he spent 8 years at
British Petroleum in 7 operating and staff positions of increasing
responsibility. He has served on the board of Clark Refining and Marketing
Company and as President and Treasurer of the Oil Analysts Group of New York.
Mr. Murchie holds degrees from Rice University and Harvard University.

EVA PAO
PRINCIPAL OF ENERGY INCOME PARTNERS, LLC

Ms. Pao has been with EIP since its inception in 2003 and is co-portfolio
manager for all of the funds advised by EIP. She joined EIP in 2003, serving as
Managing Director of EIP until the EIP investment team joined Pequot Capital
Management. From 2005 to mid-2006, Ms. Pao served as Vice President of Pequot
Capital Management. Prior to Harvard Business School, Ms. Pao was a Manager at
Enron Corp where she managed a portfolio in Canadian oil and gas equities for
Enron's internal hedge fund that specialized in energy-related equities and
managed a natural gas trading book. She received a B.A. from Rice University in
1996. She received an M.B.A. from the Harvard Business School in 2002.

COMMENTARY

FIRST TRUST ENERGY INCOME AND GROWTH FUND

The investment objective of the First Trust Energy Income and Growth Fund ("FEN"
or the "Fund") is to seek a high level of after-tax total return with an
emphasis on current distributions paid to shareholders. The Fund pursues its
objective by investing in MLPs and other high-payout securities, which the
Fund's Sub-Advisor believes offer opportunities for income and growth. There can
be no assurance that the Fund's investment objective will be achieved. The Fund
may not be appropriate for all investors.

MARKET RECAP

As measured by the Alerian MLP Total Return Index and the Wells Fargo Midstream
MLP Index, the total return for energy-related MLPs over the semi-annual period
ended May 31, 2012 was 2.01% and 4.38%, respectively. For the Alerian MLP Total
Return Index, these returns reflect a positive 3.2% from income distribution for
the semi-annual period, and the remaining returns are due to share depreciation.
For the Wells Fargo Midstream MLP Index, these returns reflect a positive 3.0%
from income distribution for the semi-annual period while the remaining returns
are due to share appreciation. These figures are according to data collected
from several sources, including the Alerian MLP Total Return Index, the Wells
Fargo Midstream MLP Index and Bloomberg. While in the short term, share
appreciation can be volatile, we believe that over the longer term, share
appreciation will approximate growth in per share quarterly cash distributions
paid by MLPs. Over the last 10 years, growth in per share MLP distributions has
averaged about 6.8%. Over the last 12 months, the cash distributions of MLPs
increased by about 5.6% (source: Alerian Capital Management).

Page 3

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PORTFOLIO COMMENTARY - (CONTINUED)
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FIRST TRUST ENERGY INCOME AND GROWTH FUND
SEMI-ANNUAL REPORT
MAY 31, 2012

PERFORMANCE ANALYSIS

On a net asset value ("NAV") basis, the Fund provided a total return1 of 3.24%,
including the reinvestment of dividends, for the semi-annual period ended May
31, 2012. This compares, according to collected data, to a total return of 6.23%
for the S&P 500 Index, 6.13% for the Barclays Capital U.S. Credit Index of
Corporate Bonds, 2.01% for the Alerian MLP Total Return Index and 4.38% for the
Wells Fargo Midstream MLP Index. On a market value basis, the Fund had a total
return, including the reinvestment of dividends, for the period covered by this
report, of 10.13%. The Fund's premium over NAV increased over the course of the
semi-annual period. On May 31, 2012, the Fund was priced at $29.25 while the NAV
was $27.28, a premium of 7.22%. On November 30, 2011, the Fund was priced at
$27.45 while the NAV was $27.31, a premium of 0.51%.

The Fund increased its dividend twice during the semi-annual period. The Fund
raised the distribution to $0.48 per share in January 2012 and to $0.485 in
April 2012.

The Fund's NAV performed in-line relative to the 3.20% average of the MLP
benchmarks. We believe the most important long-term drivers of the Fund's total
return will be the maintenance and growth of the dividends of the Fund's
portfolio companies.

An important factor affecting the return of the Fund is the Fund's use of
financial leverage through the use of line of credit. The Fund entered into a
committed facility agreement with BNP Paribas Prime Brokerage Inc. ("BNP") that
has a maximum commitment amount of $162,000,000. The Fund uses leverage because
its managers believe that, over time, leverage can enhance total return for
Common shareholders. However, the use of leverage can also increase the
volatility of the NAV and therefore the share price. For example, as the prices
of securities held by the Fund decline, the effect of changes in Common Share
NAV and Common shareholder total return is magnified by the use of leverage.
Conversely, leverage may enhance Common Share returns during periods when the
prices of securities held by the Fund generally are rising. Unlike the Fund, the
Alerian MLP Total Return Index is not leveraged. Leverage had a positive impact
on the performance of the Fund over this reporting period.

MARKET AND FUND OUTLOOK

The MLP asset class experienced 5 IPOs in the reporting period. There also has
been a healthy level of secondary financing activity for MLPs during the
reporting period as they continue to fund their ongoing investments in new
pipelines, processing and storage facilities. In the semi-annual period, there
have been 27 secondary equity offerings for MLPs that raised $8.0 billion
through May 31, 2012. This compares to $8.7 billion raised in 34 secondary
equity offerings during the same time period last year. MLPs also found access
to the public debt markets, raising $7.9 billion in 9 offerings during the same
time period. This compares to $9.0 billion during the same period last year
(source: Barclays Capital). The combination of equity and debt raised of about
$16 billion represents approximately 6% of the roughly $274 billion MLP market
cap.

The Fund continues to aim to be invested in MLPs with mostly non-cyclical cash
flows, investment-grade ratings, conservative balance sheets, modest and/or
flexible organic growth commitments and liquidity on their revolving lines of
credit. Cyclical cash flows will always be unpredictable, making them a bad fit
with a steady dividend obligation that is meant to be most or all of the
company's free cash flow.

MLPs continue to play an integral role in the restructuring of some more
diversified energy conglomerates. The first phase of this restructuring, which
has occurred over the last few years, has been the creation by these more
diversified conglomerates of an MLP subsidiary that contains assets such as
pipelines and storage terminals. The more recent phase has been the divestiture
by some of these parent companies of most or all of their cyclical businesses,
leaving the parent company looking very similar to an old-fashioned pipeline
utility with a large holding in a subsidiary MLP. These diversified energy
conglomerates are doing this restructuring so that their regulated
infrastructure assets with predictable cash flows may be better valued by the
market. And sometimes, a more active role is being taken as these diversified
energy companies have been purchased by MLP general partners over the last eight
months. We expect this restructuring will continue. The Fund is pursuing these
opportunities in the context of the desired characteristics, including business
exposure and quality.

The total return proposition of owning energy-related infrastructure MLPs has
been and continues to be their yield plus their growth. The yield of the MLPs,
weighted by market capitalization, on May 31, 2012, was 6.6% based on the
Alerian MLP Total Return Index. The growth in the quarterly cash distributions
that make up this yield has averaged between 6 % and 7% annually over the last
ten years. For true infrastructure MLPs, we expect dividend growth rates to
average in the mid-single digits over the next few years. This growth will
continue to be driven by three factors: 1) modest increases in volume from
growth from both underlying petroleum demand as the economy recovers and
increases in North American oil and gas production (particularly in new supply
areas); 2) inflation and cost escalators in pipeline tariffs and contracts; and
3) accretion from profitable capital projects and acquisitions. The capital
projects continue to be related to growth in areas such as the Canadian Oil
Sands, new oil and natural gas shale resources and the need for more
infrastructure related to bio fuels and other environmental mandates, including
the conversion of many coal fired power plants to natural gas.

1 Total return is based on the combination of reinvested dividend, capital gain
and return of capital distributions, if any, at prices obtained by the Dividend
Reinvestment Plan and changes in NAV per share for net asset value returns and
changes in Common Share price for market value returns. Total returns do not
reflect sales load. Past performance is not indicative of future results.

Page 4

FIRST TRUST ENERGY INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS
MAY 31, 2012 (UNAUDITED)

SHARES/
UNITS DESCRIPTION VALUE
------------ --------------------------------------------------- -------------
MASTER LIMITED PARTNERSHIPS - 112.2%

GAS UTILITIES - 4.2%
383,363 AmeriGas Partners, L.P. (a)........................ $ 14,778,643
41,500 Suburban Propane Partners, L.P. (a)................ 1,528,030
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16,306,673
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INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 1.7%
246,200 Brookfield Renewable Energy Partners, L.P. (CAD)... 6,509,873
-------------

OIL, GAS & CONSUMABLE FUELS - 106.3%
109,850 Alliance GP Holdings, L.P. (a)..................... 4,566,465
128,466 Alliance Resource Partners, L.P. (a)............... 7,323,847
391,762 Buckeye Partners, L.P. (a)......................... 18,616,530
525,450 El Paso Pipeline Partners, L.P. (a)................ 17,240,015
606,026 Enbridge Energy Partners, L.P. (a)................. 17,720,200
371,879 Energy Transfer Equity, L.P. (a)................... 13,510,364
370,844 Energy Transfer Partners, L.P. (a)................. 16,090,921
906,653 Enterprise Products Partners, L.P. (a)............. 44,208,400
229,824 Holly Energy Partners, L.P. (a).................... 13,001,144
162,674 Inergy, L.P. (a)................................... 2,786,606
225,771 Kinder Morgan Energy Partners, L.P. (a)............ 17,684,642
655,327 Magellan Midstream Partners, L.P. (a).............. 45,093,051
166,200 Natural Resource Partners, L.P. (a)................ 3,812,628
411,123 NuStar Energy, L.P. (a)............................ 21,464,732
311,890 NuStar GP Holdings, LLC (a)........................ 9,946,172
68,000 Oiltanking Partners, L.P. (a)...................... 2,114,800
411,240 ONEOK Partners, L.P. (a)........................... 22,453,704
547,428 Penn Virginia Resource Partners, L.P. (a).......... 12,705,804
494,191 Plains All American Pipeline, L.P. (a)............. 38,808,819
198,260 Spectra Energy Partners, L.P. (a).................. 6,179,764
667,511 Sunoco Logistics Partners, L.P. (a)................ 22,481,770
287,930 TC Pipelines, L.P. (a)............................. 11,805,130
325,500 Teekay LNG Partners, L.P. (a)...................... 12,144,405
268,158 TransMontaigne Partners, L.P. (a).................. 8,457,703
106,400 Western Gas Partners, L.P. (a)..................... 4,691,176
274,055 Williams Partners, L.P. (a)........................ 14,497,510
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409,406,302
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TOTAL MASTER LIMITED PARTNERSHIPS.................. 432,222,848
(Cost $244,201,299) -------------

COMMON STOCKS - 43.9%

ELECTRIC UTILITIES - 1.0%
9,400 Emera, Inc......................................... 300,612
42,700 Emera, Inc. (CAD).................................. 1,366,350
35,000 ITC Holdings Corp.................................. 2,413,250
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4,080,212
-------------

GAS UTILITIES - 5.2%
66 ONEOK, Inc......................................... 5,477

See Notes to Financial Statements Page 5

FIRST TRUST ENERGY INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
MAY 31, 2012 (UNAUDITED)

SHARES/
UNITS DESCRIPTION VALUE
------------ --------------------------------------------------- -------------
COMMON STOCKS - (CONTINUED)

GAS UTILITIES - (CONTINUED)
250,000 Questar Corp....................................... $ 5,017,500
520,930 UGI Corp........................................... 14,940,273
-------------
19,963,250
-------------

MULTI-UTILITIES - 7.2%
252,500 Centerpoint Energy, Inc............................ 5,108,075
160,700 Dominion Resources, Inc............................ 8,366,042
50,000 National Grid PLC, ADR............................. 2,514,500
475,600 NiSource, Inc. (a)................................. 11,932,804
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27,921,421
-------------

OIL, GAS & CONSUMABLE FUELS - 30.5%
104,626 Enbridge Energy Management, LLC (a) (b)............ 3,263,285
97,700 Enbridge Income Fund Holdings, Inc. (CAD).......... 2,269,277
200,130 Enbridge, Inc...................................... 7,891,126
212,480 Keyera Corp. (CAD)................................. 8,650,611
459,297 Kinder Morgan Management, LLC (a) (b).............. 32,623,866
178,100 Kinder Morgan, Inc................................. 6,089,239
299,000 Pembina Pipeline Corp. (CAD)....................... 8,056,514
339,050 Spectra Energy Corp................................ 9,734,125
360,991 TransCanada Corp................................... 14,771,752
787,558 Williams Cos., Inc. (a)............................ 24,044,146
-------------
117,393,941
-------------

TOTAL COMMON STOCKS................................ 169,358,824
(Cost $135,899,955) -------------

TOTAL INVESTMENTS - 156.1%......................... 601,581,672
(Cost $380,101,254) (c) -------------

NUMBER OF
CONTRACTS DESCRIPTION VALUE
------------ -------------------------------------------------- -------------
CALL OPTIONS WRITTEN - (0.2%)

Centerpoint Energy, Inc. Call
300 @ 22.5 due November 12............................ (9,900)
-------------

Dominion Resources, Inc. Calls
1,105 @ 55 due July 12.................................. (11,050)
500 @ 55 due October 12............................... (32,500)
-------------
(43,550)
-------------
Enbridge, Inc. Calls
10 @ 40 due June 12.................................. (350)
300 @ 45 due October 12............................... (6,000)
-------------
(6,350)
-------------
Kinder Morgan, Inc. Calls
181 @ 35 due September 12............................. (24,435)
400 @ 35 due December 12.............................. (58,000)
-------------
(82,435)
-------------

Page 6 See Notes to Financial Statements

FIRST TRUST ENERGY INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
MAY 31, 2012 (UNAUDITED)

NUMBER OF
CONTRACTS DESCRIPTION VALUE
------------ -------------------------------------------------- -------------
CALL OPTIONS WRITTEN - (CONTINUED)

National Grid PLC, ADR Calls
300 @ 55 due June 12.................................. $ (4,500)
200 @ 55 due September 12............................. (9,400)
-------------
(13,900)
-------------
NiSource, Inc. Call
2,752 @ 25 due July 12.................................. (247,680)
-------------

Questar Corp. Calls
936 @ 21 due July 12.................................. (18,720)
600 @ 21 due October 12............................... (33,000)
500 @ 22 due January 13............................... (22,500)
-------------
(74,220)
-------------
Spectra Energy Corp. Calls
1,090 @ 33 due June 12.................................. (10,900)
500 @ 33 due September 12............................. (12,500)
500 @ 34 due September 12............................. (7,500)
600 @ 31 due December 12.............................. (57,000)
-------------
(87,900)
-------------
TransCanada Corp. Call
300 @ 45 due August 12................................ (4,500)
-------------

UGI Corp. Calls
600 @ 30 due June 12.................................. (6,000)
510 @ 30 due July 12.................................. (8,925)
1,000 @ 35 due July 12.................................. (15,000)
800 @ 30 due October 12............................... (48,000)
-------------
(77,925)
-------------
Williams Cos., Inc. Calls
1,000 @ 35 due June 12.................................. (3,000)
2,000 @ 34 due August 12................................ (90,000)
1,750 @ 36 due August 12................................ (32,375)
700 @ 34 due November 12.............................. (70,000)
-------------
(195,375)
-------------

TOTAL CALL OPTIONS WRITTEN........................ (843,735)
(Premiums received $899,888) -------------

OUTSTANDING LOAN - (35.8%)........................ (137,900,000)

NET OTHER ASSETS AND LIABILITIES - (20.1%)........ (77,506,736)
-------------
NET ASSETS - 100.0%............................... $ 385,331,201
=============

(a) All or a portion of this security is available to serve as collateral on
the outstanding loan.

(b) Non-income producing security which pays in-kind distributions.

(c) Aggregate cost for federal income tax purposes is $345,744,805. As of May
31, 2012, the aggregate gross unrealized appreciation for all securities
in which there was an excess of value over tax cost was $256,917,712 and
the aggregate gross unrealized depreciation for all securities in which
there was an excess of tax cost over value was $1,080,845.

ADR American Depositary Receipt

CAD Canadian Dollar - Security is denominated in Canadian Dollars and is
translated into U.S. Dollars based upon the current exchange rate.

See Notes to Financial Statements Page 7

FIRST TRUST ENERGY INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
MAY 31, 2012 (UNAUDITED)

VALUATION INPUTS

A summary of the inputs used to value the Fund's investments as of May 31, 2012
is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):

ASSETS TABLE

LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
5/31/2012 PRICES INPUTS INPUTS
------------- ------------- ------------- ------------

Master Limited Partnerships*...................... $ 432,222,848 $ 432,222,848 $ -- $ --
Common Stocks* .................................. 169,358,824 169,358,824 -- --
------------- ------------- ------------- ------------
TOTAL INVESTMENTS................................. $ 601,581,672 $ 601,581,672 $ -- $ --
============= ============= ============= ============

LIABILITIES TABLE

LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
5/31/2012 PRICES INPUTS INPUTS
------------- ------------- ------------- ------------

Call Options Written........................... $ (843,735) $ (843,735) $ -- $ --
============= ============= ============= ============

*See Portfolio of Investments for industry breakout.

Page 8 See Notes to Financial Statements

FIRST TRUST ENERGY INCOME AND GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 2012 (UNAUDITED)

ASSETS:

Investments, at value
(Cost $380,101,254).......................................................................... $ 601,581,672
Cash .......................................................................................... 9,807,134
Prepaid expenses .............................................................................. 20,499
Receivables:
Income tax................................................................................. 567,260
Dividends.................................................................................. 488,607
Investment securities sold................................................................. 222,946
Interest................................................................................... 936
Other assets .................................................................................. 389,231
-------------
Total Assets............................................................................... 613,078,285
-------------

LIABILITIES:
Outstanding loan .............................................................................. 137,900,000
Deferred income taxes.......................................................................... 84,807,377
Options written, at value (Premiums received $899,888) ........................................ 843,735
Payables:
Investment securities purchased............................................................ 3,551,508
Investment advisory fees................................................................... 452,371
Audit and tax fees......................................................................... 74,244
Custodian fees............................................................................. 40,220
Administrative fees........................................................................ 36,483
Legal fees................................................................................. 10,530
Interest and fees on loan.................................................................. 10,241
Trustees' fees and expenses................................................................ 6,034
Transfer agent fees........................................................................ 5,566
Printing fees.............................................................................. 927
Financial reporting fees................................................................... 771
Other liabilities 7,077
-------------
Total Liabilities.......................................................................... 227,747,084
-------------
NET ASSETS $ 385,331,201
=============

NET ASSETS consist of:
Paid-in capital ............................................................................... $ 259,309,022
Par value ..................................................................................... 141,257
Accumulated net investment income (loss), net of income taxes ................................. (17,069,785)
Accumulated net realized gain (loss) on investments, written options and foreign
currency transactions, net of income taxes ................................................. (1,766,427)
Net unrealized appreciation (depreciation) on investments, written options and foreign
currency translation, net of income taxes .................................................. 144,717,134
-------------
NET ASSETS $ 385,331,201
=============
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share) $ 27.28
=============
Number of Common Shares outstanding (unlimited number of Common Shares has been authorized).... 14,125,684
=============

See Notes to Financial Statements Page 9

FIRST TRUST ENERGY INCOME AND GROWTH FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 2012 (UNAUDITED)

INVESTMENT INCOME:

Dividends (net of foreign withholding tax of $153,716).......................... $ 3,756,511
Interest........................................................................ 4,963
-------------
Total investment income...................................................... 3,761,474
-------------

EXPENSES:
Investment advisory fees........................................................ 2,710,487
Interest and fees on loan....................................................... 1,012,964
Franchise tax................................................................... 409,613
Administrative fees............................................................. 218,287
Printing fees................................................................... 44,056
Legal fees...................................................................... 35,944
Custodian fees.................................................................. 25,462
Shelf offering costs............................................................ 23,399
Trustees' fees and expenses..................................................... 18,613
Transfer agent fees............................................................. 18,588
Audit and tax fees.............................................................. 9,348
Financial reporting fees........................................................ 4,625
Other........................................................................... 43,377
-------------
Total expenses............................................................... 4,574,763
-------------
NET INVESTMENT INCOME (LOSS) BEFORE TAXES....................................... (813,289)
-------------
Current state income tax benefit (expense)................................... (13,866)
Current federal income tax benefit (expense)................................. --
Current foreign income tax benefit (expense)................................. (119,088)
Deferred federal income tax benefit (expense)................................ 590,060
Deferred state income tax benefit (expense).................................. (174,454)
------------
Total income tax benefit (expense)........................................... 282,652
-------------
NET INVESTMENT INCOME (LOSS).................................................... (530,637)
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) before taxes on:
Investments.................................................................. 20,499,267
Written options (a).......................................................... 389,288
Foreign currency transactions................................................ (23,877)
-------------
Net realized gain (loss) before taxes........................................... 20,864,678
-------------
Deferred federal income tax benefit (expense)................................ (7,242,824)

Total income tax benefit (expense)........................................... (7,242,824)
------------
Net realized gain (loss) on investments, written options and foreign
currency transactions........................................................ 13,621,854
-------------
Net change in unrealized appreciation (depreciation) before taxes on:
Investments.................................................................. (713,411)
Written options (a).......................................................... 830,733
Foreign currency translations................................................ (1,629)
-------------
Net change in unrealized appreciation (depreciation) before taxes............... 115,693
-------------
Deferred federal income tax benefits (expense)............................... (40,493)
------------
Total income tax benefit (expense)........................................... (40,493)
-------------
Net change in unrealized appreciation (depreciation) on investments, written
options and foreign currency translation...................................... 75,200
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS)......................................... 13,697,054
-------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................ 13,166,417
=============

(a) Primary risk exposure is equity option contracts.

Page 10 See Notes to Financial Statements

FIRST TRUST ENERGY INCOME AND GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS

SIX MONTHS
ENDED YEAR
5/31/2011 ENDED
(UNAUDITED) 11/30/2010
------------ ------------
OPERATIONS:

Net investment income (loss).................................................... $ (530,637) $ (3,006,522)
Net realized gain (loss)........................................................ 13,621,854 5,774,033
Net change in unrealized appreciation (depreciation)............................ 75,200 35,784,128
Net increase from payment by the Sub-Advisor.................................... -- 48,607
------------ ------------
Net increase (decrease) in net assets resulting from operations................. 13,166,417 38,600,246
------------ ------------

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income........................................................... -- --
Net realized gain............................................................... (9,333,357) (8,096,252)
Return of capital............................................................... (4,289,561) (14,278,568)
------------ ------------
Total distributions to shareholders............................................. (13,622,918) (22,374,820)
------------ ------------

CAPITAL TRANSACTIONS:
Proceeds from Common Shares sold through shelf offerings........................ -- 75,613,440
Proceeds from Common Shares reinvested.......................................... 461,718 2,423,644
Offering costs.................................................................. -- (125,500)
------------ ------------
Net increase (decrease) in net assets resulting from capital transactions....... 461,718 77,911,584
------------ ------------
Total increase (decrease) in net assets......................................... 5,217 94,137,010

NET ASSETS:
Beginning of period............................................................. 385,325,984 291,188,974
------------ ------------
End of period................................................................... $385,331,201 $385,325,984
============ ============
Accumulated net investment income (loss), net of income taxes................... $(17,069,785) $(16,539,148)
============ ============

CAPITAL TRANSACTIONS WERE AS FOLLOWS:
Common Shares at beginning of period............................................ 14,109,563 11,220,560
Common Shares sold through shelf offerings...................................... -- 2,800,000
Common Shares issued as reinvestment under the Dividend Reinvestment Plan....... 16,121 89,003
------------ ------------
Common Shares at end of period.................................................. 14,125,684 14,109,563
============ ============

See Notes to Financial Statements Page 11

FIRST TRUST ENERGY INCOME AND GROWTH FUND
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED MAY 31, 2012 (UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net increase (decrease) in net assets resulting from operations................. $ 13,166,417
Adjustments to reconcile net increase (decrease) in net assets resulting from
operations to net cash provided by operating activities:
Purchases of investments.................................................. (78,100,646)
Sales, maturities and paydowns of investments............................. 81,139,328
Proceeds from written options............................................. 1,652,678
Cost of options closed.................................................... (478,220)
Return of capital received from investment in MLPs........................ 11,882,131
Net realized gain/loss on investments and options......................... (20,888,555)
Net change in unrealized appreciation/depreciation on investments
and options............................................................. (117,322)

CHANGES IN ASSETS AND LIABILITIES:
Decrease in income tax receivable......................................... 22,149
Increase in interest receivable........................................... (135)
Increase in dividends receivable (a)...................................... (335,507)
Decrease in prepaid expenses.............................................. 22,025
Decrease in franchise tax receivable...................................... 38,124
Increase in other assets.................................................. (327,789)
Decrease in interest and fees on loan payable............................. (966)
Increase in investment advisory fees payable.............................. 26,055
Decrease in audit and tax fees payable.................................... (72,356)
Increase in legal fees payable............................................ 2,753
Decrease in printing fees payable......................................... (27,570)
Increase in administrative fees payable................................... 2,055
Increase in custodian fees payable........................................ 25,463
Increase in transfer agent fees payable................................... 2,258
Decrease in Trustees' fees and expenses payable........................... (419)
Increase in financial reporting fees payable.............................. 1
Increase in deferred income tax payable................................... 6,867,711
Increase in other liabilities payable..................................... 3,857
------------
CASH PROVIDED BY OPERATING ACTIVITIES........................................... $ 14,503,520
------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds of Common Shares reinvested...................................... 461,718
Distributions to Common Shareholders from net realized gain............... (9,333,357)
Distributions to Common Shareholders from return of capital............... (4,289,561)
------------
CASH USED IN FINANCING ACTIVITIES............................................... (13,161,200)
------------
Increase in cash................................................................ 1,342,320
Cash at beginning of period..................................................... 8,464,814
------------
CASH AT END OF PERIOD........................................................... $ 9,807,134
============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest and fees............................... $ 1,013,930
============
Cash paid during the period for taxes........................................... $ 702,381
============

(a) Includes net change in unrealized appreciation (depreciation) on foreign
currency of $(1,629).

Page 12 See Notes to Financial Statements

FIRST TRUST ENERGY INCOME AND GROWTH FUND
FINANCIAL HIGHLIGHTS
FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD

SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
5/31/2012 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 11/30/2011 11/30/2010 11/30/2009 11/30/2008 11/30/2007 (a)
----------- ----------- ----------- ----------- ----------- -------------

Net asset value, beginning of period ....... $ 27.31 $ 25.95 $ 20.20 $ 14.68 $ 26.74 $ 25.88
----------- ----------- ----------- ----------- ----------- -------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............... (0.04) (b) (0.25) (b) (0.07) (b) (0.24) (b) (0.57) (0.67)
Net realized and unrealized gain (loss) .... 0.98 3.45 (c) 7.51 7.43 (9.83) 3.06
----------- ----------- ----------- ----------- ----------- -------------
Total from investment operations ...... 0.94 3.20 7.44 7.19 (10.40) 2.39
----------- ----------- ----------- ----------- ----------- -------------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income ...................... -- -- -- -- -- --
Net realized gain .......................... (0.66) (0.67) (0.27) (0.35) (1.66) (1.53)
Return of capital .......................... (0.31) (1.20) (1.52) (1.41) -- --
----------- ----------- ----------- ----------- ----------- -------------
Total distributions ........................ (0.97) (1.87) (1.79) (1.76) (1.66) (1.53)
----------- ----------- ----------- ----------- ----------- -------------
Premiums from shares sold in at the market
offering ................................ -- 0.03 0.10 0.09 -- --
----------- ----------- ----------- ----------- ----------- -------------
Net asset value, end of period ............. $ 27.28 $ 27.31 $ 25.95 $ 20.20 $ 14.68 $ 26.74
=========== =========== =========== =========== =========== =============
Market value, end of period ................ $ 29.25 $ 27.45 $ 26.30 $ 22.30 $ 14.40 $ 23.82
=========== =========== =========== =========== =========== =============
TOTAL RETURN BASED ON NET ASSET VALUE (d) .. 3.24% 12.83% (e) 38.65% 51.03% (40.70)% 9.38%
=========== =========== =========== =========== =========== =============
TOTAL RETURN BASED ON MARKET VALUE (d)...... 10.13% 11.73% 27.29% 70.20% (34.74)% 2.96%
=========== =========== =========== =========== =========== =============

--------------------

Portfolio turnover rate .................... 13% 16% 20% 43% 38% 16%
Net assets, end of period (in 000's) ....... $385,331 $385,326 $291,189 $136,520 $ 94,880 $172,421
RATIOS OF EXPENSES TO AVERAGE NET ASSETS:
Including current and deferred income
taxes (f)................................ 5.73% (k) 8.70% 20.24% 25.79% (20.03)% 8.52%
Excluding current and deferred income
taxes ................................... 2.26% (k) 2.41% 2.71% 3.32% 4.80% 3.94%
Excluding current and deferred income
taxes and interest expense............... 1.76% (k) 1.91% 1.98% 2.32% 2.55% 1.89%
RATIOS OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS:
Net investment income (loss) ratio before
tax expenses ............................ (0.40)% (k) (1.40)% (0.47)% (2.37)% (3.83)% (3.83)%
Net investment income (loss) ratio
including tax expenses (f)............... (3.87)% (k) (7.69)% (17.99)% (24.84)% 21.00% (8.41)%
SENIOR SECURITIES:
Total Energy Notes outstanding
($25,000 per note) ...................... N/A N/A N/A N/A 1,000 2,360
Principal amount and market value per
Energy Note (g).......................... N/A N/A N/A N/A $ 25,006 $ 25,004
Asset coverage per Energy Note (h).......... N/A N/A N/A N/A $119,880 $ 98,060
Total loan outstanding (in 000's) .......... $137,900 $137,900 $ 90,000 $ 45,000 $ 5,650 $ 15,250
Asset coverage per $1,000 senior
indebtedness ............................ $ 3,794 (i) $ 3,794 (i) $ 4,235 (i) $ 4,034 (i) $ 22,218 (i) $ 12,306 (j)

--------------------

(a) On September 14, 2007, the Fund's Board of Trustees approved an interim
sub-advisory agreement with Energy Income Partners, LLC ("EIP" or the
"Sub-Advisor"), and on September 24, 2007, the Board of Trustees voted to
approve EIP as investment sub-advisor and on January 8, 2008, the
shareholders approved a new Investment Management agreement.

(b) Based on average shares outstanding.

(d) Total return is based on the combination of reinvested dividend, capital
gain and return of capital distributions, if any, at prices obtained by
the Dividend Reinvestment Plan, and changes in net asset value per share
for net asset value returns and changes in Common Share price for market
value returns. Total returns do not reflect sales load and are not
annualized for periods less than one year. Past performance is not
indicative of future results.

(e) During the year ended November 30, 2011, the Sub-Advisor reimbursed the
Fund $74,357 in connection with a trade error. The reimbursement received
from the Sub-Advisor had no effect on the Fund's total return for Common
Shares.

(f) Includes current and deferred income taxes associated with each component
of the Statement of Operations.

(g) Includes accumulated and unpaid interest.

(h) Calculated by taking the Fund's total assets less the Fund's total
liabilities (not including the Energy Notes) and dividing by the
outstanding Energy Notes in 000's.

(i) Calculated by taking the Fund's total assets less the Fund's total
liabilities (not including the loan outstanding and the Energy Notes) and
dividing by the loan outstanding in 000's. If this methodology had been
used historically, fiscal year 2007 would have been $16,175.

(j) Calculated by taking the Fund's total assets less the Fund's total
liabilities (not including the loan outstanding) and dividing by the loan
outstanding in 000's.

(k) Annualized.

N/A Not Applicable.

See Notes to Financial Statements Page 13

--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2012 (UNAUDITED)

1. FUND DESCRIPTION

First Trust Energy Income and Growth Fund (the "Fund") is a non-diversified,
closed-end management investment company organized as a Massachusetts business
trust on March 25, 2004 and is registered with the Securities and Exchange
Commission ("SEC") under the Investment Company Act of 1940, as amended (the
"1940 Act"). Effective March 12, 2012, the Fund's Board of Trustees approved a
name change for the Fund from "Energy Income and Growth Fund" to "First Trust
Energy Income and Growth Fund." The Fund continues to trade under the ticker
symbol FEN on the NYSE Amex.

The Fund's investment objective is to seek a high level of after-tax total
return with an emphasis on current distributions paid to shareholders. The Fund
seeks to provide its shareholders with an efficient vehicle to invest in a
portfolio of cash-generating securities of energy companies. The Fund focuses on
investing in publicly-traded master limited partnerships ("MLPs") and related
public entities in the energy sector, which Energy Income Partners, LLC ("EIP"
or the "Sub-Advisor") believes offer opportunities for income and growth. There
can be no assurance that the Fund will achieve its investment objective. The
Fund may not be appropriate for all investors.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America ("U.S. GAAP") requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates.

A. PORTFOLIO VALUATION:

The net asset value ("NAV") of the Common Shares of the Fund is determined daily
as of the close of regular trading on the New York Stock Exchange ("NYSE"),
normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If
the NYSE closes early on a valuation day, the NAV is determined as of that time.
Domestic debt securities and foreign securities are priced using data reflecting
the earlier closing of the principal markets for those securities. The NAV per
Common Share is calculated by dividing the value of all assets of the Fund
(including accrued interest and dividends), less all liabilities (including
accrued expenses, dividends declared but unpaid, deferred income taxes and any
borrowings of the Fund) by the total number of Common Shares outstanding.

The Fund's investments are valued daily in accordance with valuation procedures
adopted by the Fund's Board of Trustees, and in accordance with provisions of
the 1940 Act. The following securities, for which accurate and reliable market
quotations are readily available, will be valued as follows:

Common stocks, MLPs and other securities listed on any national or foreign
exchange (excluding the NASDAQ National Market ("NASDAQ") and the London
Stock Exchange Alternative Investment Market ("AIM")) are valued at the
last sale price on the exchange on which they are principally traded. If
there are no transactions on the valuation day, the securities are valued
at the mean between the most recent bid and asked prices.

Securities listed on the NASDAQ or the AIM are valued at the official
closing price. If there is no official closing price on the valuation day,
the securities are valued at the mean between the most recent bid and
asked prices.

Securities traded in the over-the-counter market are valued at their
closing bid prices.

Exchange-traded options and futures contracts are valued at the closing
price in the market where such contracts are principally traded. If no
closing price is available, exchange-traded options and futures contracts
are valued at the mean between the most recent bid and asked prices.
Over-the-counter options and futures contracts are valued at their closing
bid prices.

Short-term investments that mature in less than 60 days when purchased are
valued at amortized cost.

All market quotations used in valuing the Fund's securities will be obtained
from a third party pricing service. If no quotation is received from a pricing
service, attempts will be made to obtain one or more broker quotes for the
security. In the event the pricing service does not provide a valuation, broker
quotations are not readily available, or the valuations received are deemed
unreliable, the Fund's Board of Trustees has designated First Trust Advisors
L.P. ("First Trust") to use a fair value method to value the Fund's securities.
Additionally, if events occur after the close of the principal markets for
certain securities (e.g., domestic debt and foreign securities) that could
materially affect the Fund's NAV, First Trust will use a fair value method to
value the Fund's securities. The use of fair value pricing is governed by
valuation procedures adopted by the Fund's Board of Trustees, and in accordance
with the provisions of the 1940 Act. As a general principle, the fair value of a
security is the amount which the Fund might reasonably expect to receive for the
security upon its current sale. However, in light of the judgment involved in
fair valuations, there can be no assurance that a fair value assigned to a
particular security will be the amount which the Fund might be able to receive
upon its current sale. Fair valuation of a security will be based on the
consideration of all available information, including, but not limited to the
following:

1) the type of security;

2) the size of the holding;

3) the initial cost of the security;

4) transactions in comparable securities;

5) price quotes from dealers and/or pricing services;

Page 14

--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
--------------------------------------------------------------------------------

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2012 (UNAUDITED)

6) relationships among various securities;

7) information obtained by contacting the issuer, analysts, or the
appropriate stock exchange;

8) an analysis of the issuer's financial statements; and

9) the existence of merger proposals or tender offers that might affect the
value of the security.

If the securities in question are foreign securities, the following additional
information may be considered:

1) the value of similar foreign securities traded on other foreign markets;

2) ADR trading of similar securities;

3) closed-end fund trading of similar securities;

4) foreign currency exchange activity;

5) the trading prices of financial products that are tied to baskets of
foreign securities;

6) factors relating to the event that precipitated the pricing problem;

7) whether the event is likely to recur; and

8) whether the effects of the event are isolated or whether they affect
entire markets, countries or regions.

The Fund is subject to fair value accounting standards that define fair value,
establish the framework for measuring fair value and provide a three-level
hierarchy for fair valuation based upon the inputs to the valuation as of the
measurement date. The three levels of the fair value hierarchy are as follows:

o Level 1 - Level 1 inputs are quoted prices in active markets for
identical investments. An active market is a market in which
transactions for the investment occur with sufficient frequency and
volume to provide pricing information on an ongoing basis.

o Level 2 - Level 2 inputs are observable inputs, either directly or
indirectly, and include the following:

o Quoted prices for similar investments in active markets.

o Quoted prices for identical or similar investments in markets
that are non-active. A non-active market is a market where
there are few transactions for the investment, the prices are
not current, or price quotations vary substantially either
over time or among market makers, or in which little
information is released publicly.

o Inputs other than quoted prices that are observable for the
investment (for example, interest rates and yield curves
observable at commonly quoted intervals, volatilities,
prepayment speeds, loss severities, credit risks, and default
rates).

o Inputs that are derived principally from or corroborated by
observable market data by correlation or other means.

o Level 3 - Level 3 inputs are unobservable inputs. Unobservable
inputs may reflect the reporting entity's own assumptions about the
assumptions that market participants would use in pricing the
investments.

The inputs or methodology used for valuing investments are not necessarily an
indication of the risk associated with investing in those investments. A summary
of the inputs used to value the Fund's investments as of May 31, 2012, is
included with the Fund's Portfolio of Investments.

B. OPTION CONTRACTS:

The Fund is subject to equity price risk in the normal course of pursuing its
investment objective and may enter into options written to hedge against changes
in the value of equities. Also, by writing (selling) options, the Fund seeks to
generate additional income, in the form of premiums received for writing
(selling) the options. The Fund may write (sell) covered call or put options
("options") on all or a portion of the common stock of energy companies held in
the Fund's portfolio as determined to be appropriate by the Sub-Advisor. The
number of options the Fund can write (sell) is limited by the amount of common
stock of energy companies the Fund holds in its portfolio. The Fund will not
write (sell) "naked" or uncovered options. When the Fund writes (sells) an
option, an amount equal to the premium received by the Fund is included in
"Options written, at value" on the Fund's Statement of Assets and Liabilities.
Options are marked-to-market daily and their value will be affected by changes
in the value and dividend rates of the underlying equity securities, changes in
interest rates, changes in the actual or perceived volatility of the securities
markets and the underlying equity securities and the remaining time to the
options' expiration. The value of options may also be adversely affected if the
market for the options becomes less liquid or trading volume diminishes.

Options the Fund writes (sells) will either be exercised, expire or be cancelled
pursuant to a closing transaction. If the price of the underlying equity
security exceeds the option's exercise price, it is likely that the option
holder will exercise the option. If an option written (sold) by the Fund is
exercised, the Fund would be obligated to deliver the underlying equity security
to the option holder upon payment of the strike price. In this case, the option
premium received by the Fund will be added to the amount realized on the sale of
the underlying security for purposes of determining gain or loss. If the price
of the underlying equity security is less than the option's strike price, the
option will likely expire without being exercised. The option premium received
by the Fund will, in this case, be treated as short-term capital gain on the
expiration date of the option. The Fund may also elect to close out its position
in an option prior to its expiration by purchasing an option of the same series
as the option written (sold) by the Fund. Gain or loss on options is presented
separately as "Net realized gain (loss) before taxes on written options" on the
Statement of Operations.

The options that the Fund writes (sells) give the option holder the right, but
not the obligation, to purchase a security from the Fund at the strike price on
or prior to the option's expiration date. The ability to successfully implement
the writing (selling) of covered call options depends on the ability of the
Sub-Advisor to predict pertinent market movements, which cannot be assured.
Thus, the use of options may require the Fund to sell portfolio securities at
inopportune times or for prices other than current market value, which may limit

Page 15

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2012 (UNAUDITED)

the amount of appreciation the Fund can realize on an investment, or may cause
the Fund to hold a security that it might otherwise sell. As the writer (seller)
of a covered option, the Fund foregoes, during the option's life, the
opportunity to profit from increases in the market value of the security
covering the option above the sum of the premium and the strike price of the
option, but has retained the risk of loss should the price of the underlying
security decline. The writer (seller) of an option has no control over the time
when it may be required to fulfill its obligation as a writer (seller) of the
option. Once an option writer (seller) has received an exercise notice, it
cannot effect a closing purchase transaction in order to terminate its
obligation under the option and must deliver the underlying security to the
option holder at the exercise price.

Over-the-counter options have the risk of the potential inability of
counterparties to meet the terms of their contracts. The Fund's maximum equity
price risk for purchased options is limited to the premium initially paid. In
addition, certain risks may arise upon entering into option contracts including
the risk that an illiquid secondary market will limit the Fund's ability to
close out an option contract prior to the expiration date and that a change in
the value of the option contract may not correlate exactly with changes in the
value of the securities hedged.

C. SECURITIES TRANSACTIONS AND INVESTMENT INCOME:

Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Dividend income is recorded on the ex-dividend date. Interest income is recorded
daily on the accrual basis, including amortization of premiums and accretion of
discounts. The Fund will rely to some extent on information provided by the
MLPs, which is not necessarily timely, to estimate taxable income allocable to
the MLP units held in the Fund's portfolio and to estimate the associated
deferred tax asset or liability. From time to time, the Fund will modify its
estimates and/or assumptions regarding its deferred tax liability as new
information becomes available. To the extent the Fund modifies its estimates
and/or assumptions, the NAV of the Fund will likely fluctuate.

Distributions received from the Fund's investments in MLPs generally are
comprised of return of capital and investment income. The Fund records estimated
return of capital and investment income based on historical information
available from each MLP. These estimates may subsequently be revised based on
information received from the MLPs after their tax reporting periods are
concluded.

D. RESTRICTED SECURITIES:

The Fund may invest up to 35% of its Managed Assets in restricted securities.
Managed Assets means the total asset value of the Fund minus the sum of the
Fund's liabilities other than the principal amount of borrowings. Restricted
securities are securities that may not be offered for public sale without first
being registered under the Securities Act of 1933, as amended (the "1933 Act").
Prior to registration, restricted securities may only be resold in transactions
exempt from registration under Rule 144A under the 1933 Act, normally to
qualified institutional buyers. As of May 31, 2012, the Fund held no restricted
securities.

E. DISTRIBUTIONS TO SHAREHOLDERS:

The Fund intends to make quarterly distributions to Common Shareholders. The
Fund's distributions generally will consist of cash and paid-in-kind
distributions from MLPs or their affiliates, dividends from common stocks,
interest from debt instruments and income from other investments held by the
Fund less operating expenses, including taxes. Distributions to Common
Shareholders are recorded on the ex-date and are based on U.S. GAAP, which may
differ from their ultimate characterization for federal income tax purposes.

Distributions made from current or accumulated earnings and profits of the Fund
will be taxable to shareholders as dividend income. Distributions that are in an
amount greater than the Fund's current and accumulated earnings and profits will
represent a tax-deferred return of capital to the extent of a shareholder's
basis in the Common Shares, and such distributions will correspondingly increase
the realized gain upon the sale of the Common Shares. Additionally,
distributions not paid from current or accumulated earnings and profits that
exceed a shareholder's tax basis in the Common Shares will generally be taxed as
a capital gain.

Distributions of $9,333,357 paid during the six months ended May 31, 2012, are
anticipated to be characterized as taxable dividends for federal income tax
purposes. The remaining $4,289,561 in distributions paid during the six months
ended May 31, 2012, is expected to be return of capital. However, the ultimate
determination of the character of the distributions will be made after the 2012
calendar year. Distributions will automatically be reinvested in additional
Common Shares pursuant to the Fund's Dividend Reinvestment Plan unless cash
distributions are elected by the shareholder.

F. INCOME TAXES:

The Fund is treated as a regular C corporation for U.S. federal income tax
purposes and as such will be obligated to pay federal and applicable state and
foreign corporate taxes on its taxable income. The Fund's tax expense or benefit
is included in the Statement of Operations based on the component of income or
gains (losses) to which such expense or benefit relates. The current U.S.
federal maximum graduated income tax rate for corporations is 35%. In addition,
the U.S. imposes a 20% alternative minimum tax on the recalculated alternative
minimum taxable income of an entity treated as a corporation. This differs from
most investment companies, which elect to be treated as "regulated investment
companies" under the U.S. Internal Revenue Code of 1986, as amended. The various
investments of the Fund may cause the Fund to be subject to state income taxes
on a portion of its income at various rates.

The tax deferral benefit the Fund derives from its investment in MLPs results
largely because the MLPs are treated as partnerships for federal income tax
purposes. As a partnership, an MLP has no income tax liability at the entity
level. As a limited partner in the MLPs in which it invests, the Fund will be
allocated its pro rata share of income, gains, losses, deductions and credits
from the MLPs, regardless of whether or not any cash is distributed from the
MLPs.

Page 16

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2012 (UNAUDITED)

To the extent that the distributions received from the MLPs exceed the net
taxable income realized by the Fund from its investment, a tax liability
results. This tax liability is a deferred liability to the extent that MLP
distributions received have not exceeded the Fund's adjusted tax basis in the
respective MLPs. To the extent that distributions from an MLP exceed the Fund's
adjusted tax basis, the Fund will recognize a taxable capital gain. For the six
months ended May 31, 2012, distributions of $13,211,742 received from MLPs have
been reclassified as a return of capital. The cost basis of applicable MLPs has
been reduced accordingly.

The Fund's provision for income taxes consists of the following:

Current federal income tax benefit (expense)........ $ --
Current state income tax benefit (expense).......... (13,866)
Current foreign income tax benefit (expense)........ (119,088)
Deferred federal income tax benefit (expense) ...... (6,693,257)
Deferred state income tax benefit (expense) ........ (174,454)
------------
Total income tax benefit (expense) ................. $ (7,000,665)
============

Deferred income taxes reflect the net tax effect of temporary differences
between the carrying amount of assets and liabilities for financial reporting
purposes and the amounts used for tax purposes. At November 30, 2011, the Fund
had a net operating loss carry forward for federal and state income tax purposes
of $15,639,106 and $15,103,070, respectively. The Fund's 2012 income tax
provision includes a full valuation allowance against the deferred tax assets
associated with the state net operating loss. Components of the Fund's deferred
tax assets and liabilities as of May 31, 2012 are as follows:

Deferred tax assets:
Federal net operating loss.......................... $ 3,936,102
State net operating loss............................ 1,096,361
State income taxes.................................. 61,059
Capital loss carryforward........................... --
Other .............................................. 201,921
------------
Total deferred tax assets........................... 5,295,443
Less: valuation allowance........................... (1,096,361)
------------
Net deferred tax assets............................. $ 4,199,082
============
Deferred tax liabilities:
Unrealized gains on investment securities........... $(89,006,459)
------------
Total deferred tax liabilities...................... (89,006,459)
------------
Total net deferred tax liabilities.................. $(84,807,377)
============

Total income taxes differ from the amount computed by applying the maximum
graduated federal income tax rate of 35% to net investment income and realized
and unrealized gains on investments.

Application of statutory income tax rate............ $ 7,058,479
State income taxes, net ............................ 141,040
Change in valuation allowance....................... (28,665)
Other .............................................. (170,189)
------------
Total............................................... $ 7,000,665
============

The Fund intends to utilize provisions of the federal income tax laws, which
allow it to carry realized capital losses forward for five years following the
year of the loss and offset such loss against any future realized capital gains.
The Fund is subject to certain limitations under U.S. tax rules on the use of
capital loss carryforwards and net unrealized built-in losses. These limitations
apply when there has been a 50% change in ownership. At November 30, 2011, the
Fund had a capital loss carryforward of $473,567 that will expire according to
the following schedule:

UTILIZED IN
FISCAL YEAR ENDED
FISCAL YEAR 11/30/2011 REMAINING EXPIRATION
----------- ----------------- ------------- ----------
11/30/2008 $ 1,361,671 $ -- 11/30/2013
11/30/2009 5,610,800 473,567 11/30/2014
----------------- -------------
Total $ 6,972,471 $ 473,567
================= =============

Page 17

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2012 (UNAUDITED)

The Fund is subject to accounting standards that establish a minimum threshold
for recognizing, and a system for measuring, the benefits of a tax position
taken or expected to be taken in a tax return. Taxable years ending 2008, 2009,
2010 and 2011 remain open to federal and state audit. As of May 31, 2012,
management has evaluated the application of these standards to the Fund, and has
determined that no provision for income tax is required in the Fund's financial
statements for uncertain tax positions.

G. EXPENSES:

The Fund will pay all expenses directly related to its operations.

H. FOREIGN CURRENCY:

The books and records of the Fund are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at the exchange rates prevailing at the end of the period.
Purchases and sales of investment securities and items of income and expense are
translated on the respective dates of such transactions. Unrealized gains and
losses on assets and liabilities, other than investments in securities, which
result from changes in foreign currency exchange rates have been included in
"Net change in unrealized appreciation (depreciation) on foreign currency
translation" on the Statement of Operations. Unrealized gains and losses on
investments in securities which result from changes in foreign exchange rates
are included with fluctuations arising from changes in market price and are
shown in "Net change in unrealized appreciation (depreciation) on investments"
on the Statement of Operations. Net realized foreign currency gains and losses
include the effect of changes in exchange rates between trade date and
settlement date on investment security transactions, foreign currency
transactions and interest and dividends received. The portion of foreign
currency gains and losses related to fluctuation in exchange rates between the
initial purchase trade date and subsequent sale trade date is included in "Net
realized gain (loss) on foreign currency transactions" on the Statement of
Operations.

I. ACCOUNTING PRONOUNCEMENT:

In May 2011, the the Financial Accounting Standards Board ("FASB") issued ASU
2011-04, "Amendments to Achieve Common Fair Value Measurement and Disclosure
Requirements in U.S. GAAP and IFRSs," modifying Topic 820, "Fair Value
Measurements and Disclosures." At the same time, the International Accounting
Standards Board ("IASB") issued International Financial Reporting Standard
("IFRS") 13, "Fair Value Measurement." The objective of the FASB and IASB is
convergence of their guidance on fair value measurements and disclosures.
Specifically, the ASU requires reporting entities to disclose (i) the amounts of
any transfers between Level 1 and Level 2, and the reasons for the transfers,
(ii) for Level 3 fair value measurements, quantitative information about
significant unobservable inputs used, (iii) a description of the valuation
processes used by the reporting entity, and (iv) a narrative description of the
sensitivity of the fair value measurement to changes in unobservable inputs if a
change in those inputs might result in a significantly higher or lower fair
value measurement. The effective date of the ASU is for interim and annual
periods beginning after December 15, 2011, and it is therefore not effective for
the current fiscal year. Management is in the process of assessing the impact of
the updated standards on the Fund's financial statements, if any.

3. INVESTMENT ADVISORY FEE, AFFILIATED TRANSACTIONS AND OTHER FEE ARRANGEMENTS

First Trust, the investment advisor to the Fund, is a limited partnership with
one limited partner, Grace Partners of DuPage L.P., and one general partner, The
Charger Corporation. First Trust is responsible for the ongoing monitoring of
the Fund's investment portfolio, managing the Fund's business affairs and
providing certain administrative services necessary for the management of the
Fund. For these investment management services, First Trust is entitled to a
monthly fee calculated at an annual rate of 1.00% of the Fund's Managed Assets.
First Trust also provides fund reporting services to the Fund for a flat annual
fee in the amount of $9,250.

EIP serves as the Fund's sub-advisor and manages the Fund's portfolio subject to
First Trust's supervision. The Sub-Advisor receives a monthly sub-advisory fee
calculated at an annual rate of 0.50% of the Fund's Managed Assets that is paid
by First Trust out of its investment advisory fee.

First Trust Capital Partners, LLC ("FTCP"), an affiliate of First Trust, owns,
through a wholly-owned subsidiary, a 15% ownership interest in each of the
Sub-Advisor and EIP Partners, LLC, an affiliate of the Sub-Advisor. In addition,
FTCP purchased a preferred interest in the Sub-Advisor. As of the date of this
report, the Sub-Advisor has bought back all of FTCP's preferred interest.

BNY Mellon Investment Servicing (US) Inc. serves as the Fund's Administrator,
Fund Accountant and Transfer Agent in accordance with certain fee arrangements.
The Bank of New York Mellon serves as the Fund's Custodian in accordance with
certain fee arrangements.

Effective January 23, 2012, James A. Bowen resigned from his position as the
President and Chief Executive Officer of the Fund. He will continue as a
Trustee, the Chairman of the Board of Trustees and a member of the Executive
Committee. The Board elected Mark R. Bradley to serve as the President and Chief
Executive Officer of the Fund and James M. Dykas to serve as the Treasurer,
Chief Financial Officer and Chief Accounting Officer of the Fund.

Effective January 1, 2012, each Trustee who is not an officer or employee of
First Trust, any sub-advisor or any of their affiliates ("Independent Trustees")
is paid a fixed annual retainer of $125,000 per year and an annual per fund fee
of $4,000 for each closed-end fund or other actively managed fund and $1,000 for
each index fund in the First Trust Fund Complex. The fixed annual retainer is
allocated pro rata among each fund in the First Trust Fund Complex based on net
assets. Prior to January 1, 2012, each Independent Trustee received an annual
retainer of $10,000 per trust for the first 14 trusts of the First Trust Fund
Complex and an annual retainer of $7,500 per trust for each additional trust in
the First Trust Fund Complex. The annual retainer was allocated equally among
each of the trusts.

Page 18

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2012 (UNAUDITED)

Additionally, the Lead Independent Trustee is paid $15,000 annually, the
Chairman of the Audit Committee is paid $10,000 annually, and each of the
Chairmen of the Nominating and Governance Committee and the Valuation Committee
is paid $5,000 annually to serve in such capacities, with such compensation
allocated pro rata among each fund in the First Trust Fund Complex based on net
assets. Prior to January 1, 2012, the annual amounts paid were $10,000, $5,000
and $2,500, respectively. Trustees are reimbursed for travel and out-of-pocket
expenses in connection with all meetings. The Lead Independent Trustee and each
Committee chairman will serve two-year terms before rotating to serve as
chairman of another committee or as Lead Independent Trustee. The officers and
"Interested" Trustee receive no compensation from the funds for acting in such
capacities.

4. PURCHASES AND SALES OF SECURITIES

Cost of purchases and proceeds from sales of investment securities, excluding
short-term investments, for the six months ended May 31, 2012 were $81,652,154
and $78,679,712, respectively.

Written option activity for the Fund was as follows:

NUMBER
OF
WRITTEN OPTIONS CONTRACTS PREMIUMS
-------------------------------------------------------------------------------

Options outstanding at November 30, 2011... 7,514 $ 664,465
Options Written............................ 41,320 1,652,678
Options Expired............................ (20,261) (727,930)
Options Exercised.......................... (6,939) (549,748)
Options Closed............................. (2,200) (139,577)
------ -----------
Options outstanding at May 31, 2012........ 19,434 $ 899,888
------ -----------

5. BORROWINGS

The Fund entered into a committed facility agreement with BNP Paribas Prime
Brokerage Inc. ("BNP") that has a maximum commitment amount of $162,000,000.
Absent certain events of default or failure to maintain certain collateral
requirements, BNP may not terminate the committed facility agreement except upon
180 calendar days' prior notice. The borrowing rate under the facility is equal
to the 3-month LIBOR plus 80 basis points. In addition, under the facility, the
Fund pays a commitment fee of 0.80% on the undrawn amount of such facility.

The average amount outstanding for the six months ended May 31, 2012 was
$137,900,000, with a weighted average interest rate of 1.31%. As of May 31,
2012, the Fund had outstanding borrowings of $137,900,000 under this committed
facility agreement. The high and low annual interest rates for the six months
ended May 31, 2012 were 1.38% and 1.27%, respectively. The interest rate at May
31, 2012 was 1.27%.

The Fund's Board of Trustees, at a special meeting on March 27, 2012, approved
sub-advisor authority to enter into swap transactions under an ISDA
(International Swaps and Derivatives) Master Agreement with Credit Suisse
International. The swap transactions may be used to hedge against interest rate
risk on leverage, in addition the Fund already has standing permission to use
derivatives for investment purposes.

6. COMMON SHARE OFFERINGS

The Fund entered into an underwriting agreement with the Advisor, the
Sub-Advisor, Morgan Stanely & Co., Citigroup Global Markets, Inc. and RBC
Capital Markets, LLC and other underwriters on July 26, 2011 pursuant to which
2,800,000 Common Shares were sold.

Offering costs for the year ended November 30, 2011 of $125,500 related to the
issuance of the Common Shares in the offering were charged to paid-in capital
when the Common Shares were issued. The Fund used the net proceeds from the
sales of the Common Shares in accordance with its investment objective and
policies. Transactions for the year ended November 30, 2011 related to the
public offering are as follows:

COMMON NET PROCEEDS
SHARES NET PROCEEDS NET ASSET VALUE RECEIVED IN
SOLD RECEIVED OF SHARES SOLD EXCESS OF NET ASSET VALUE
--------- ------------ --------------- -------------------------
2,800,000 $ 75,487,940 $ 75,223,531 $ 264,409

7. INDEMNIFICATION

The Fund has a variety of indemnification obligations under contracts with its
service providers. The Fund's maximum exposure under these arrangements is
unknown. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.

8. RISK CONSIDERATIONS

Risks are inherent in all investing. The following summarizes some, but not all,
of the risks that should be considered for the Fund. For additional information
about the risks associated with investing in the Fund, please see the Fund's
prospectus and statement of additional information, as well as other Fund
regulatory filings.

Page 19

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2012 (UNAUDITED)

INVESTMENT AND MARKET RISK: An investment in the Fund's Common Shares is subject
to investment risk, including the possible loss of the entire principal
invested. An investment in Common Shares represents an indirect investment in
the securities owned by the Fund. The value of these securities, like other
market investments, may move up or down, sometimes rapidly and unpredictably.
Common Shares at any point in time may be worth less than the original
investment, even after taking into account the reinvestment of Fund dividends
and distributions. Security prices can fluctuate for several reasons including
the general condition of the securities markets, or when political or economic
events affecting the issuers occur. When the Advisor or Sub-Advisor determines
that it is temporarily unable to follow the Fund's investment strategy or that
it is impractical to do so (such as when a market disruption event has occurred
and trading in the securities is extremely limited or absent), the Fund may take
temporary defensive positions.

INDUSTRY CONCENTRATION RISK: The Fund invests at least 85% of its Managed Assets
in securities issued by energy companies, energy sector MLPs and MLP-related
entities and at least 65% of its Managed Assets in equity securities of such
MLPs and MLP related entities. Given this industry concentration, the Fund is
more susceptible to adverse economic or regulatory occurrences affecting that
industry than an investment company that is not concentrated in a single
industry. Energy issuers may be subject to a variety of factors that may
adversely affect their business or operations, including high interest costs in
connection with capital construction programs, high leverage costs associated
with environmental and other regulations, the effects of economic slowdown,
surplus capacity, increased competition from other providers of services,
uncertainties concerning the availability of fuel at reasonable prices, the
effects of energy conservation policies and other factors.

MLP RISK: An investment in MLP units involves risks which differ from an
investment in common stock of a corporation. Holders of MLP units have limited
control and voting rights on matters affecting the partnership. In addition,
there are certain tax risks associated with an investment in MLP units and
conflicts of interest exist between common unit holders and the general partner,
including those arising from incentive distribution payments.

LEVERAGE RISK: The use of leverage results in additional risks and can magnify
the effect of any losses. The funds borrowed pursuant to a leverage borrowing
program constitute a substantial lien and burden by reason of their prior claim
against the income of the Fund and against the net assets of the Fund in
liquidation. If the Fund is not in compliance with certain credit facility
provisions, the Fund may not be permitted to declare dividends or other
distributions.

RESTRICTED SECURITIES RISK: The Fund may invest in unregistered or otherwise
restricted securities. The term "restricted securities" refers to securities
that are unregistered or are held by control persons of the issuer and
securities that are subject to contractual restrictions on their resale. As a
result, restricted securities may be more difficult to value and the Fund may
have difficulty disposing of such assets either in a timely manner or for a
reasonable price. In order to dispose of an unregistered security, the Fund,
where it has contractual rights to do so, may have to cause such security to be
registered. A considerable period may elapse between the time the decision is
made to sell the security and the time the security is registered so that the
Fund could sell it. Contractual restrictions on the resale of securities vary in
length and scope and are generally the result of a negotiation between the
issuer and acquirer of the securities. The Fund would, in either case, bear
market risks during that period.

NON-DIVERSIFICATION RISK: The Fund is a non-diversified investment company under
the 1940 Act and will not be treated as a regulated investment company under the
Internal Revenue Code. Accordingly, there are no regulatory requirements under
the 1940 Act or the Internal Revenue Code on the minimum number or size of
securities held by the Fund.

9. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events to the Fund through
the date the financial statements were issued, and has determined that there was
the following subsequent event:

On July 12, 2012, the Fund declared a dividend of $0.49 per share to Common
Shareholders of record on July 24, 2012, payable July 31, 2012.

Page 20

--------------------------------------------------------------------------------
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2012 (UNAUDITED)

DIVIDEND REINVESTMENT PLAN

If your Common Shares are registered directly with the Fund or if you hold your
Common Shares with a brokerage firm that participates in the Fund's Dividend
Reinvestment Plan (the "Plan"), unless you elect, by written notice to the Fund,
to receive cash distributions, all dividends, including any capital gain
distributions, on your Common Shares will be automatically reinvested by BNY
Mellon Investment Servicing (US) Inc. (the "Plan Agent"), in additional Common
Shares under the Plan. If you elect to receive cash distributions, you will
receive all distributions in cash paid by check mailed directly to you by the
Plan Agent, as the dividend paying agent.

If you decide to participate in the Plan, the number of Common Shares you will
receive will be determined as follows:

(1) If Common Shares are trading at or above net asset value ("NAV") at
the time of valuation, the Fund will issue new shares at a price
equal to the greater of (i) NAV per Common Share on that date or
(ii) 95% of the market price on that date.

(2) If Common Shares are trading below NAV at the time of valuation, the
Plan Agent will receive the dividend or distribution in cash and
will purchase Common Shares in the open market, on the NYSE or
elsewhere, for the participants' accounts. It is possible that the
market price for the Common Shares may increase before the Plan
Agent has completed its purchases. Therefore, the average purchase
price per share paid by the Plan Agent may exceed the market price
at the time of valuation, resulting in the purchase of fewer shares
than if the dividend or distribution had been paid in Common Shares
issued by the Fund. The Plan Agent will use all dividends and
distributions received in cash to purchase Common Shares in the open
market within 30 days of the valuation date except where temporary
curtailment or suspension of purchases is necessary to comply with
federal securities laws. Interest will not be paid on any uninvested
cash payments.

You may elect to opt-out of or withdraw from the Plan at any time by giving
written notice to the Plan Agent, or by telephone at (866) 340-1104, in
accordance with such reasonable requirements as the Plan Agent and the Fund may
agree upon. If you withdraw or the Plan is terminated, you will receive a
certificate for each whole share in your account under the Plan, and you will
receive a cash payment for any fraction of a share in your account. If you wish,
the Plan Agent will sell your shares and send you the proceeds, minus brokerage
commissions.

The Plan Agent maintains all Common Shareholders' accounts in the Plan and gives
written confirmation of all transactions in the accounts, including information
you may need for tax records. Common Shares in your account will be held by the
Plan Agent in non-certificated form. The Plan Agent will forward to each
participant any proxy solicitation material and will vote any shares so held
only in accordance with proxies returned to the Fund. Any proxy you receive will
include all Common Shares you have received under the Plan.

There is no brokerage charge for reinvestment of your dividends or distributions
in Common Shares. However, all participants will pay a pro rata share of
brokerage commissions incurred by the Plan Agent when it makes open market
purchases.

Automatically reinvesting dividends and distributions does not mean that you do
not have to pay income taxes due upon receiving dividends and distributions.
Capital gains and income are realized although cash is not received by you.
Consult your financial advisor for more information.

If you hold your Common Shares with a brokerage firm that does not participate
in the Plan, you will not be able to participate in the Plan and any dividend
reinvestment may be effected on different terms than those described above.

The Fund reserves the right to amend or terminate the Plan if in the judgment of
the Board of Trustees the change is warranted. There is no direct service charge
to participants in the Plan; however, the Fund reserves the right to amend the
Plan to include a service charge payable by the participants. Additional
information about the Plan may be obtained by writing BNY Mellon Investment
Servicing (US) Inc., 301 Bellevue Parkway, Wilmington, Delaware 19809.

PROXY VOTING POLICIES AND PROCEDURES

A description of the policies and procedures that the Fund uses to determine how
to vote proxies and information on how the Fund voted proxies relating to
portfolio investments during the most recent 12-month period ended June 30 is
available (1) without charge, upon request, by calling (800) 988-5891; (2) on
the Fund's website located at http://www.ftportfolios.com; and (3) on the
Securities and Exchange Commission's ("SEC") website located at
http://www.sec.gov.

Page 21

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ADDITIONAL INFORMATION - (CONTINUED)
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FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2012 (UNAUDITED)

PORTFOLIO HOLDINGS

The Fund files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q
are available (1) by calling (800) 988-5891; (2) on the Fund's website located
at http://www.ftportfolios.com; (3) on the SEC's website at http://www.sec.gov;
and (4) for review and copying at the SEC's Public Reference Room ("PRR") in
Washington, DC. Information regarding the operation of the PRR may be obtained
by calling (800) SEC-0330.

SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS

The Joint Annual Meeting of Shareholders of the Common Shares of First Trust
Energy Income and Growth Fund, First Trust Enhanced Equity Income Fund, First
Trust/Aberdeen Global Opportunity Income Fund, First Trust Mortgage Income Fund,
First Trust Strategic High Income Fund II, First Trust/Aberdeen Emerging
Opportunity Fund, First Trust Specialty Finance and Financial Opportunities
Fund, First Trust Active Dividend Income Fund, First Trust Energy Infrastructure
Fund, Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income
Fund and First Trust High Income Long/Short Fund was held on April 18, 2012 (the
"Annual Meeting"). At the Annual Meeting, Richard E. Erickson and Thomas R.
Kadlec were elected by the Common Shareholders of the First Trust Energy Income
and Growth Fund as Class II Trustees for a three-year term expiring at the
Fund's annual meeting of shareholders in 2015. The number of votes cast in favor
of Mr. Erickson was 12,832,157, the number of votes against was 132,267 and the
number of abstentations was 1,159,963. The number of votes cast in favor of Mr.
Kadlec was 12,834,856, the number of votes against was 129,568 and the number of
abstentations was 1,159,963. James A. Bowen, Niel B. Nielson and Robert F. Keith
are the other current and continuing Trustees.

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FIRST TRUST

INVESTMENT ADVISOR
First Trust Advisors L.P.
120 E. Liberty Drive, Suite 400
Wheaton, IL 60187

INVESTMENT SUB-ADVISOR
Energy Income Partners, LLC
49 Riverside Avenue
Westport, CT 06880

ADMINISTRATOR,
FUND ACCOUNTANT &
TRANSFER AGENT
BNY Mellon Investment Servicing (US) Inc.
301 Bellevue Parkway
Wilmington, DE 19809

CUSTODIAN
The Bank of New York Mellon
1 Wall Street
New York, NY 10286

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 S. Wacker Drive
Chicago, IL 60606

LEGAL COUNSEL
Chapman and Cutler LLP
111 W. Monroe Street
Chicago, IL 60603

[BLANK BACK COVER]

ITEM 2. CODE OF ETHICS.

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. INVESTMENTS.

(a) Schedule of Investments in securities of unaffiliated issuers as of the
close of the reporting period is included as part of the report to
shareholders filed under Item 1 of this form.

(b) Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

(a) Not applicable.

(b) There has been no change, as of the date of this filing, in any of the
portfolio managers identified in response to paragraph (a)(1) of this Item
in the registrant's most recently filed annual report on Form N-CSR.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which the shareholders
may recommend nominees to the Registrant's board of trustees, where those
changes were implemented after the Registrant last provided disclosure in
response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)),
or this Item.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The Registrant's principal executive and principal financial officers, or
persons performing similar functions, have concluded that the Registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR
270.30a-3(c))) are effective, as of a date within 90 days of the filing
date of the report that includes the disclosure required by this
paragraph, based on their evaluation of these controls and procedures
required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as
amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There were no changes in the Registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
270.30a-3(d)) that occurred during the Registrant's second fiscal quarter
of the period covered by this report that has materially affected, or is
reasonably likely to materially affect, the Registrant's internal control
over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Not applicable.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section
302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section
906 of the Sarbanes- Oxley Act of 2002 are attached hereto.

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.

(registrant) First Trust Energy Income and Growth Fund
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By (Signature and Title)* /s/ Mark R. Bradley
------------------------------------------------------
Mark R. Bradley, President and
Chief Executive Officer
(principal executive officer)

Date July 19, 2012
------------------

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.

By (Signature and Title)* /s/ Mark R. Bradley
------------------------------------------------------
Mark R. Bradley, President and
Chief Executive Officer
(principal executive officer)

Date July 19, 2012
------------------

By (Signature and Title)* /s/ James M. Dykas
------------------------------------------------------
James M. Dykas, Treasurer, Chief Financial Officer
and Chief Accounting Officer
(principal financial officer)

Date July 19, 2012
------------------

* Print the name and title of each signing officer under his or her signature.