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


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




Investment Company Act file number 811-21725



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


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



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



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



Date of fiscal year end: November 30


Date of reporting period:   August 31, 2008

 
Item 1. Schedule of Investments.
Tortoise Energy Capital Corporation
           
             
SCHEDULE OF INVESTMENTS (Unaudited)
           
   
August 31, 2008      
 
Common Stock - 0.1% (1)
 
Shares
   
Fair Value
 
Shipping - 0.1% (1)
           
Republic of the Marshall Islands - 0.1% (1)
           
Capital Product Partners L.P. (Cost $466,550)
   
21,700
    $
337,869
 
                 
Master Limited Partnerships and Related Companies - 186.3% (1)
               
                 
Crude/Refined Products Pipelines - 84.4% (1)
               
United States - 84.4% (1)
               
Buckeye Partners, L.P.
   
223,000
     
9,658,130
 
Enbridge Energy Partners, L.P.
   
860,700
     
41,778,378
 
Enbridge Energy Partners, L.P. (2) (3)
   
314,632
     
15,014,238
 
Global Partners LP
   
128,200
     
1,593,526
 
Holly Energy Partners, L.P.
   
49,215
     
1,659,038
 
Kinder Morgan Management, LLC (3)
   
1,588,570
     
88,165,635
 
Magellan Midstream Partners, L.P.
   
744,400
     
27,676,792
 
NuStar Energy L.P.
   
704,600
     
34,779,056
 
NuStar GP Holdings, LLC
   
73,009
     
1,542,680
 
Plains All American Pipeline, L.P.
   
1,123,150
     
53,518,098
 
SemGroup Energy Partners, L.P.
   
436,774
     
4,542,450
 
Sunoco Logistics Partners L.P.
   
843,905
     
41,047,539
 
TEPPCO Partners, L.P.
   
634,650
     
20,365,918
 
TransMontaigne Partners L.P.
   
153,000
     
3,869,370
 
             
345,210,848
 
                 
Natural Gas/Natural Gas Liquids Pipelines - 54.4% (1)
               
United States - 54.4% (1)
               
Boardwalk Pipeline Partners, LP
   
753,600
     
18,515,952
 
El Paso Pipeline Partners, L.P.
   
886,300
     
16,369,961
 
Energy Transfer Equity, L.P.
   
486,400
     
14,032,640
 
Energy Transfer Partners, L.P.
   
851,260
     
37,881,070
 
Enterprise GP Holdings L.P.
   
360,644
     
10,718,340
 
Enterprise Products Partners L.P.
   
2,085,600
     
61,420,920
 
ONEOK Partners, L.P.
   
261,400
     
15,697,070
 
Spectra Energy Partners, LP
   
256,165
     
5,896,918
 
TC PipeLines, LP
   
933,000
     
31,880,610
 
Williams Pipeline Partners L.P.
   
599,400
     
10,303,686
 
             
222,717,167
 
                 
Natural Gas Gathering/Processing - 40.2% (1)
               
United States - 40.2% (1)
               
Copano Energy, L.L.C.
   
989,886
     
31,310,094
 
Crosstex Energy, L.P.
   
1,253,600
     
31,929,192
 
Crosstex Energy, L.P. (2) (4)
   
581,301
     
13,544,313
 
DCP Midstream Partners, LP
   
302,075
     
7,400,837
 
Duncan Energy Partners L.P.
   
322,100
     
5,836,452
 
Exterran Partners, L.P.
   
218,462
     
4,849,856
 
MarkWest Energy Partners, L.P.
   
1,418,656
     
48,858,513
 
Regency Energy Partners LP
   
146,100
     
3,640,812
 
Targa Resources Partners LP
   
97,783
     
2,337,014
 
Western Gas Partners LP
   
155,530
     
2,374,943
 
Williams Partners L.P.
   
416,539
     
12,637,793
 
             
164,719,819
 
                 
Propane Distribution - 3.8% (1)
               
United States - 3.8% (1)
               
Inergy, L.P.
   
583,700
     
15,386,332
 
                 
Shipping - 3.5% (1)
               
Republic of the Marshall Islands - 0.6% (1)
               
Teekay LNG Partners L.P.
   
111,000
     
2,525,250
 
United States - 2.9% (1)
               
K-Sea Transportation Partners L.P.
   
361,410
     
9,273,781
 
OSG America L.P.
   
208,145
     
2,497,740
 
             
11,771,521
 
             
14,296,771
 
                 
Total Master Limited Partnerships and Related Companies (Cost $627,756,170)
           
762,330,937
 
 
                 
Short-Term Investment - 3.0% (1)
               
United States Investment Company - 3.0% (1)
               
First American Government Obligations Fund - Class Y, 1.89% (5) (Cost $12,224,457)
   
12,224,457
     
12,224,457
 
                 
Total Investments - 189.4% (1) (Cost $640,447,177)
           
774,893,263
 
                 
Long-Term Debt Obligations - (46.4%) (1)
            (190,000,000 )
                 
                 
Liabilities in Excess of Cash and Other Assets - (16.1%) (1)
            (65,718,039 )
                 
Preferred Shares at Redemption Value - (26.9%) (1)
            (110,000,000 )
                 
Total Net Assets Applicable to Common Stockholders - 100.0% (1)
          $
409,175,224
 

(1)  Calculated as a percentage of net assets applicable to common stockholders.
(2)  Restricted securities have a total fair value of $28,558,551 which represents 7.0% of net assets.
(3)  Security distributions are paid-in-kind.
(4)  Non-income producing.
(5)  Rate indicated is the 7-day effective yield as of August 31, 2008.

Various inputs are used in determining the value of the Company’s investments.  These inputs are summarized in the three broad levels listed below:

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

The following table provides the fair value measurements of applicable Company assets by level within the fair value hierarchy as of August 31, 2008.  These assets are measured on a recurring basis.

     
Fair Value Measurements at Reporting Date Using
     
Quoted Prices in
 
Significant
     
Active Markets for
Significant Other
Unobservable
 
Fair Value at
 
Identical Assets
Observable Inputs
Inputs
Description
August 31, 2008
 
(Level 1)
(Level 2)
(Level 3)
           
Investments
 $     774,893,263
 
 $    746,334,712
 $     15,014,238
 $    13,544,313
           
           
 
   
Fair Value Measurements Using Significant Unobservable Inputs
   
(Level 3)
   
Investments
     
   
For the three months ended
   
February 29, 2008
 
May 31, 2008
 
August 31, 2008
Fair Value beginning balance
 
$                           -
 
$                          -
 
$                          -
Total unrealized gains (losses) included in net increase (decrease) in net assets applicable to common stockholders
 
                         -
 
                         -
 
                         -
Net purchases, issuances and settlements
 
                         -
 
                         -
 
                         -
Return of capital adjustments impacting cost basis of security
 
                         -
 
                         -
 
                         -
Transfers in (out) of Level 3
 
                         -
 
                         -
 
         13,544,313
Fair value ending balance
 
$                          -
 
$                          -
 
$          13,544,313

  Certain of the Company’s investments are restricted and are valued as determined in accordance with procedures established by the Board of Directors.  The table below shows the number of units held, acquisition date, acquisition cost, fair value per unit and percent of net assets which the securities comprise at August 31, 2008.
 
 
 
Investment Security
Number of Units
 
 
Acquisition Date
 
 
Acquisition
Cost
 
 
 
Fair Value Per Unit
Fair Value as Percent of Net Assets
Crosstex Energy, L.P.
Series D Subordinated Units
581,301
3/23/07
 $ 15,000,007
      $23.30
      3.3 %
Enbridge Energy Partners, L.P.
Class C Common Units
314,632
4/02/07
15,000,000
        47.72
  3.7
       
$  30,000,007
 
    7.0%

Investments representing 5 percent or more of the outstanding voting securities of a portfolio company result in that company being considered an affiliated company, as defined in the Investment Company Act of 1940. There were no affiliate securities held by the Company as of August 31, 2008.  A summary of affiliated transactions for the company which was an affiliate during the period from December 1, 2007 to August 31, 2008, is as follows:

 
Share Balance 11/30/07
Gross Additions
Gross Reductions
Realized Gain (Loss)
Gross Distributions Received
August 31, 2008
 
Share Balance
Fair Value
Crosstex Energy, L.P. (1)
1,269,913
$                 -
$              -
$          -
$2,362,038
1,253,600
$31,929,192
Crosstex Energy, L.P.-Series D Subordinated Units (1)
581,301
-
-
-
-
 581,301
13,544,313
   
$                 -
$              -
$          -
$2,362,036
 
$45,473,505
  (1) Not deemed an affiliate as of August 31, 2008; $1,587,391 non-affiliated distributions received.
 
As of August 31, 2008, the aggregate cost of securities for federal income tax purposes was $580,097,757. At August 31, 2008, the aggregate gross unrealized appreciation for all securities in which there was an excess of fair value over tax cost was $212,479,361, the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over fair value was $17,683,855 and the net unrealized appreciation was $194,795,506.

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

(b)  
There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) are filed herewith.
 

SIGNATURES

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


  Tortoise Energy Capital Corporation  
       
Date:  October 27, 2008
By:
/s/ David J. Schulte  
    David J. Schulte  
    President and Chief Executive Officer  
       



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

  Tortoise Energy Capital Corporation  
       
Date:  October 27, 2008
By:
/s/ David J. Schulte  
    David J. Schulte  
    President and Chief Executive Officer  
       
  Tortoise Energy Capital Corporation  
       
Date:  October 27, 2008
By:
/s/ Terry Matlack  
    Terry Matlack  
    Chief Financial Officer   
       


Tortoise (NYSE:TYY)
Historical Stock Chart
Von Jun 2024 bis Jul 2024 Click Here for more Tortoise Charts.
Tortoise (NYSE:TYY)
Historical Stock Chart
Von Jul 2023 bis Jul 2024 Click Here for more Tortoise Charts.