Tortoise Announces Revision of Treatment of Constituent Changes Due to Corporate Action

OVERLAND PARK, KS / ACCESSWIRE / May 3, 2024 / Tortoise today announced a revision to the corporate action treatment for the Tortoise North American Pipeline Index^SM (TNAP). As previously stated, NuStar Energy LP (NYSE:NS) will be removed from the Tortoise MLP Index (TMLP) and the Tortoise North American Pipeline Index^SM (TNAP) as a result of the approved acquisition by Sunoco LP (NYSE:SUN). Due to the acquisition, NS will be removed from indices at market open on Friday, May 3, 2024.

For the Tortoise MLP Index (TMLP), NS will be removed with a special rebalancing.

Special rebalancings in TMLP are triggered by corporate actions such as mergers, bankruptcies, liquidations, and conversions in which the resulting weight of a single constituent exceeds the index's 7.5% threshold and the target constituent weight exceeds certain weighting thresholds. Implementation of special rebalancings will be made in accordance with existing methodologies.

For the Tortoise North American Pipeline Index^SM (TNAP) the treatment is revised such that NS will be removed from the Index and the deleted constituent's weight will be added to the acquirer's weight.

In addition, Viper Energy Inc. (NYSE:VNOM), which underwent a reclassification from a Limited Partnership to a Corporation, will be removed from the Tortoise MLP Index (TMLP) and the deleted constituent's weight will be distributed pro-rata to the remaining index constituents.

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Tortoise's actively researched indices are intended to fill a void in the essential asset universe and provide a platform for passively managed exchange-traded products that span energy and sustainable infrastructure. Tortoise offers passively managed products based on actively researched indices, and provides access to a range of client solutions, focused on their evolving needs. To learn more, please visit www.tortoiseadvisors.com.

The Tortoise MLP Index is a float-adjusted, capitalization weighted index of energy master limited partnerships (MLPs). The index is comprised of publicly traded companies organized in the form of limited partnerships or limited liability companies engaged in transportation, production, processing and/or storage of energy commodities.

The Tortoise North American Pipeline Index^SM is a float-adjusted, capitalization weighted index of pipeline companies that are organized and have their principal place of business in the United States or Canada. A pipeline company is defined as a company that either 1) has been assigned a standard industrial classification ("SIC") system code that indicates the company operates in the energy pipeline industry or 2) has at least 50% of its assets, cash flow or revenue associated with the operation or ownership of energy pipelines. Pipeline companies engage in the business of transporting natural gas, crude oil and refined products, storing, gathering and processing such gas, oil and products and local gas distribution. The index includes pipeline companies structured as corporations, limited liability companies and master limited partnerships (MLPs).