Investing in essential assets

Accessing the Energy Evolution

Fourth quarter 2019

Advancements in technology create opportunities

• The world is embarking on a significant energy transition

• Technology advancements have increased production of U.S. oil and gas

• Pipelines play an essential role in transporting energy resources to growing areas of demand, including exports to the rest of the world

Liquid-rich gas

NG

L

NGL products

Crude oil

NG

L p

rod

uct

s

Refi

ned

pro

du

cts

Dry gas

Dry gas

Oil field

Refinery

Petrochemical plant

Power plant

Gas processing facility

Fractionator

Gas storage facility

Gas field

Source: Tortoise

Energy value chain

Natural gas

EIA historical Forecast

0

15

30

45

60

75

90

105

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

e

2021

e

2022

e

2023

e

2024

e

Bill

ion

cubi

c fe

et p

er d

ayU.S. producing ample amounts of low-cost, lower carbon energy supply

Crude oil

0

2

4

6

8

10

12

14

16

18

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

e20

21e

2022

e20

23e

2024

e

Mill

ion

barre

ls p

er d

ay

EIA historical Forecast

0

1

2

3

4

5

6

7

8

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

e20

21e

2022

e20

23e

2024

e

Mill

ion

barre

ls p

er d

ay

Natural gas liquids (NGLs)

EIA historical Forecast

U.S. production outlook

Source: EIA and Tortoise estimates as of 12/31/2019. The projections on this page are based on industry estimates and are no guarantee of future outcomes.

Essential assets

Stable recurring revenues

High barriers to entry

Long-lived

Inelastic demand

Monopolistic

Critical assets that fuel the North American and global economies

Generally operated with fee-based, long-term contracts

Capital intensive construction

Economic lives > 50 years

Transports energy commodities used for daily needs

Regulatory oversight

Real asset class fundamentals Operating characteristics

Midstream pipeline attributes

Source: company filings and Tortoise estimates as of 12/31/2019. Note: Total capital investment also includes miscellaneous other projects totaling approximately $34 billion. The projections on this page are based on industry estimates and are no guarantee of future outcomes.

Robust buildout of energy infrastructure required to facilitate exports to the rest of the world

Crude oil Gas Natural gas liquids

Highlighted flows

Infrastructure growth initiatives 2019e - 2021eApproximately $108 billion in pipeline and related projects

Bakken $1.1 billion

Canada $25.2 billion

Rockies/Niobrara $2.0 billion

Mid-Continent $6.2 billion

Gulf Region $12.5 billion

Marcellus/Utica $11.2 billion

Permian/Eagle Ford $16.3 billion

• International Maritime Organization 2020: increases demand for low sulfur light oil with a low residual fuel oil cut

• Shale oil is low in sulfur, easy to refine and contains a higher light-end cut with less “bottom-of-the-barrel” material

Crude oil exports3

After 40 years, U.S.-produced crude oil now exported outside

North America

0

2

4

6

8

10

2015

2020

e

2025

e

2030

e

2035

e

2040

e

Milli

on b

arre

ls p

er d

ay

• Impending wave of LNG project buildouts as countries transition from coal to natural gas and renewables– India’s demand for LNG is

set to increase in its effort to double its share of natural gas in the energy mix by 2030 by deploying more than $140B in committed investments

– South Korea remains a top importer of U.S. LNG and is likely to continue increasing demand

Natural gas exports1

Liquefied natural gas now transported internationally

0

5

10

15

20

25

2015

2020

e

2025

e

2030

e

2035

e

2040

e

Billio

n cu

bic

feet

per

day

U.S. is exporting low-cost, lower carbon energy to the rest of the world

Source: IHS and Wood Mackenzie. 1BP, BTU Analytics, East Daley, EIA and Morgan Stanley as of 12/31/2019. 2EIA, EnVantage, IHS, UBS and Wells Fargo as of 12/31/2019. 3EIA as of 12/31/2019. The projections on this page are based on industry estimates and are no guarantee of future outcomes.

• Exports to high demand regions such as China, India and Europe remain primary outlet for excess inventory

• Current loading dock capacity for LPGs nearly maxed out, incentivizing approximately 900,000 b/d of capacity additions by midstream operators in 2020

NGLs exports2

Ethane used for various consumer products now being

shipped internationally

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2015

2020

e

2025

e

2030

e

2035

e

2040

e

Milli

on b

arre

ls p

er d

ay

For additional information visit www.tortoiseadvisors.com

About Tortoise

Tortoise invests in essential assets – those real assets and services that are indispensable

to the economy and society. With a steady wins approach and a long-term perspective,

Tortoise strives to make a positive impact on clients and communities.

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