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Business Wire
3 days ago
- Business
- Business Wire
Tortoise Capital Launches the Tortoise AI Infrastructure ETF (NYSE: TCAI), Providing Access to the Foundational Infrastructure Powering the AI Revolution
OVERLAND PARK, Kan.--(BUSINESS WIRE)-- Tortoise Capital Advisors, L.L.C. (Tortoise Capital), a fund manager focused on energy investing, today unveiled the latest addition to its growing lineup of Exchange Traded Fund (ETF) solutions with the launch of the Tortoise AI Infrastructure ETF (TCAI). 'There's no AI without infrastructure, more specifically, electricity - which we believe is the new oil... TCAI seeks to offer investors a comprehensive solution that taps into this AI theme," Rob Thummel, Senior Portfolio Manager Tortoise Capital. TCAI offers an actively managed, energy-adjacent investment strategy that provides investors with exposure to the underlying infrastructure that is critical to both the near- and long-term growth of artificial intelligence (AI). From electric power generation to data centers and essential digital hardware, the fund targets the key systems and companies building and enabling the infrastructure that makes AI possible. 'AI is widely recognized as the fourth industrial revolution and its transformative effects are already being felt across virtually all sectors and industries,' said Matt Sallee, Head of Investments. 'However, AI doesn't run on code alone. It runs on infrastructure. Behind every AI breakthrough lies a foundation of essential infrastructure spanning energy systems, advanced technology platforms, data centers and more capable of storing and processing massive amounts of electricity, data, and information. Given this rapid growth of AI, data center expansion, and subsequent energy demand, we believe there's a compelling opportunity to invest in the companies that are enabling this revolution.' The approach underpinning TCAI sees the Tortoise team categorize AI infrastructure into three essential pillars: 1. Energy Data centers, AI's operational core, require massive amounts of electricity to run 24/7, 365 days a year without interruption. The strategy offers exposure to: Electricity generation and distribution assets that power data centers Pipeline infrastructure critical for fuel delivery Key energy inputs, including natural gas and uranium, that provide reliable and affordable energy at scale 2. Data Centers This includes the infrastructure that house the vast amounts of data required for AI applications. TCAI also invests in construction companies expanding the national data center footprint to meet the exponential growth in AI-related computing needs. 3. Technology This includes the critical internal components that enable data center operations: Racks and associated electrical equipment housing AI servers and GPUs - the compute engines powering AI workloads Cabling and switches enabling fast, efficient data transmission Data storage systems designed to manage immense volumes of information Cooling infrastructure critical to the performance and reliability of sensitive hardware 'There's no AI without infrastructure, more specifically, electricity - which we believe is the new oil,' said Rob Thummel, Senior Portfolio Manager. 'TCAI seeks to offer investors a comprehensive solution that taps into this AI theme. Rather than focusing on software platforms or headline grabbing tech names already trading at elevated valuations, the fund invests in the companies that power the technology, all of which have strong cash flows, essential service models, and strategic relevance in the AI race.' TCAI employs a disciplined investment process where the portfolio management team takes a structured, risk-aware approach. This process, also utilized in additional Tortoise investment products, has proven successful across multiple market cycles, particularly in navigating energy market volatility and sector evolution while consistently aiming to deliver the best possible risk-adjusted returns for investors. 'With our long-standing focus on the energy and infrastructure sectors, we believe TCAI is a natural expansion of the products we offer here at Tortoise. We are proud that this innovative fund is the first ETF of its kind, focusing on the infrastructure supporting AI,' said Mark Marifian, Head of Product. 'Our team's deep knowledge of energy infrastructure investing trends put our investors in a position to not only capitalize, but to get in at the ground-level of a movement that's in the early stages. Whether used as a core holding or a high active share satellite position, it's designed with the goal of outperforming the S&P 500 while serving multiple roles, such as a thematic growth allocation, real assets diversifier, or a source of inflation hedged equity exposure.' 'We see AI infrastructure as one of the most transformative and defining themes of this generation,' said Tom Florence, CEO. 'Just as the shale boom transformed global energy markets, the AI buildout is ushering in a new era of infrastructure demand. As AI becomes increasingly embedded in every aspect of business and daily life, the demand for infrastructure that supports it is growing exponentially. This isn't a short-term trend, it's a foundational shift that will require massive investment and could generate long-term, dependable returns to investors.' To learn more about TCAI and Tortoise Capital please visit About Tortoise Capital With approximately $9.1 billion in assets under management as of June 30, 2025, Tortoise Capital's record of investment experience and research dates back more than 20 years. As an early investor in midstream energy, Tortoise Capital believes it is well-positioned to be at the forefront of the global energy evolution that is under way. Based in Overland Park, Kansas, Tortoise Capital Advisors, L.L.C. is an SEC-registered investment adviser who manages funds that invest primarily in publicly traded companies in the energy and power infrastructure sectors—from production to transportation to distribution. For more information about Tortoise Capital, visit Disclosures Tortoise Capital Advisors, LLC is the advisor to the Tortoise AI Infrastructure ETF. Nothing in this press release should be considered a solicitation to buy or an offer to sell any shares of the portfolio in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction. Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Before investing in the funds, investors should consider their investment goals, time horizons and risk tolerance. The funds' investment objective, risks, charges and expenses must be considered carefully before investing. The statutory prospectuses and the summary prospectuses (click here) contain this and other important information about the funds. Copies of the funds' prospectus may be obtained by calling 855-994-4437 or by emailing info@ Read it carefully before investing. Shares of exchange-traded funds (ETFs) are not individually redeemable and owners of the shares may acquire those shares from the ETF and tender those shares for redemption to the ETF in Creation Units only, see the ETF prospectus for additional information regarding Creation Units. Investors may purchase or sell ETF shares throughout the day through any brokerage account, which will result in typical brokerage commissions. Investing involves risk. Principal loss is possible. The fund is registered as a non-diversified, open-end management investment company under the 1940 Act. Accordingly, there are no regulatory limits under the 1940 Act on the number or size of securities that we hold, and we may invest more assets in fewer issuers compared to a diversified fund. An investment in MLP securities involves some risks that differ from the risks involved in an investment in the common stock of a corporation, including risks relating to the ownership structure of MLPs, the risk that MLPs might lose their partnership status for tax purposes and the risk that MLPs will not make distributions to holders (including us) at anticipated levels or with the expected tax character. The Fund's strategy of concentrating its assets in the power and energy infrastructure industries means that the performance of the Fund will be closely tied to the performance of these particular market sectors. The Fund's strategy of emphasizing investments in AI infrastructure companies means that the performance of the Fund will be closely tied to the performance of one or more industries that are expected to benefit from the growth of AI-capable data centers and related technology and energy infrastructure. Companies in the technology infrastructure sector are subject to many risks that can negatively impact the revenues and viability of companies in this sector including but not limited to risks associated with emerging technology that renders existing products or services obsolete, reliance on outdated technology, intellectual property theft, supply chain disruption, vulnerabilities to third-party vendors and suppliers, business interruption, difficulty in retaining skilled talent, and regulatory compliance. Investment advisers, including the Adviser, must rely in part on digital and network technologies (collectively 'cyber networks') to conduct their businesses. Such cyber networks might in some circumstances be at risk of cyber-attacks that could potentially seek unauthorized access to digital systems for purposes such as misappropriating sensitive information, corrupting data, or causing operational disruption. Derivatives include instruments and contracts that are based on and valued in relation to one or more underlying securities, financial benchmarks, indices, or other reference obligations or measures of value. The use of derivatives could increase or decrease the Fund's exposure to the risks of the underlying instrument. Using derivatives can have a leveraging effect and increase fund volatility. We may invest a portion of our assets in fixed income securities rated 'investment grade' by nationally recognized statistical rating organizations ('NRSROs') or judged by our investment adviser, Tortoise Capital Advisors, L.L.C. (the 'Adviser'), to be of comparable credit quality. Non-investment grade securities are rated Ba1 or lower by Moody's, BB+ or lower by S&P or BB or lower by Fitch or, if unrated, are determined by our Adviser to be of comparable credit quality. Investments in the securities of non-U.S. issuers may involve risks not ordinarily associated with investments in securities and instruments of U.S. issuers, including different accounting, auditing and financial standards, less government supervision and regulation, additional tax withholding and taxes, difficulty enforcing rights in foreign countries, less publicly available information, difficulty effecting transactions, higher expenses, and exchange rate risk. Restricted securities (including Rule 144A securities) are less liquid than freely tradable securities because of statutory and contractual restrictions on resale. This lack of liquidity creates special risks for us. Rule 144A provides an exemption from the registration requirements of the Securities Act of 1933 (the '1933 Act'), for the resale of certain restricted securities to qualified institutional buyers, such as the Fund. We cannot guarantee that our covered call option strategy will be effective. There are several risks associated with transactions in options on securities. For example, the significant differences between the securities and options markets could result in an imperfect correlation between these markets. Certain securities may trade less frequently than those of larger companies that have larger market capitalizations. Risks include, but are not limited to, risks associated with companies owning and/or operating energy pipelines, as well as master limited partnerships (MLPs), MLP affiliates, capital markets, terrorism, natural disasters, climate change, operating, regulatory, environmental, supply and demand, and price volatility risks. The tax benefits received by an investor investing in the fund differ from that of a direct investment in an MLP by an investor. The value of the fund's investment in an MLP will depend largely on the MLP's treatment as a partnership for U.S. federal income tax purposes. If the MLP is deemed to be a corporation then its income would be subject to federal taxation, reducing the amount of cash available for distribution to the fund which could result in a reduction of the fund's value. Investments in non-U.S. companies (including Canadian issuers) involve risk not ordinarily associated with investments in securities and instruments of U.S. issuers, including risks related to political, social and economic developments abroad, differences between U.S. and foreign regulatory and accounting requirements, tax risk and market practices, as well as fluctuations in foreign currencies. The fund invests in small and mid-cap companies, which involve additional risks such as limited liquidity and greater volatility than larger companies. Shares may trade at prices different than net asset value per share. A master limited partnership (MLP) is a limited partnership investment vehicle that is traded on public exchanges. MLPs are traded in units rather than shares and consist of a general partner and limited partners. There are certain tax advantages as well as opportunity for more liquidity. Diversification does not assure a profit or protect against a loss in a declining market. Quasar Distributors, LLC, distributor NOT FDIC INSURED · NO BANK GUARANTEE · MAY LOSE VALUE
CTV News
21-07-2025
- Business
- CTV News
‘Global oil market is oversupplied': expert expects oil prices to fall
A commodities expert expects the price of oil to fall as energy producers ramp up supply while countries around the world brace for less severe tariffs from U.S President Donald Trump's administration. Rob Thummel, senior portfolio manager and managing director at Tortoise Capital says oil prices are down a little bit but have seen a slight increase as a result of an improved global economic outlook. 'They're about flat today, maybe down just a little bit, but we've seen a nice little rise in the oil price over the last couple of weeks as a result of an improving outlook for the global economy tied to probably a less, I guess, less tariffs than really were expected in the long run,' Thummel told in a Monday interview. West Texas Intermediate (WTI) crude was hovering above US$67 a barrel in early afternoon trading on Monday while Brent crude was trading just above $68. The Organization of Petroleum Exporting Countries (OPEC) agreed to provide more than 500,000 additional barrels per day around global markets in August, in a bid to regain market share lost to other oil producers. 'The global oil market is oversupplied right now,' said Thummel. 'It's going to be oversupplied for the second, half of the year, because OPEC+ is bringing back oil volumes back to the market. They've accelerated the pace at which they're unwinding some of their previous cuts, and that's going to result in an oversupplied oil market. And typically, when you have an oversupplied oil market, inventories rise, and then prices fall, and that's exactly what we've seen.' The Strait of Hormuz, a sea passageway for large volumes of crude, was under threat of closure during the conflict between Iran and Israel. After the U.S. military strikes on three nuclear strikes, the dispute came to an end after the Americans brokered a deal between the two Middle East countries effectively ending tensions. 'The biggest geopolitical risk to focus on still is Iran and the Strait of Hormuz, and any implications of a closure of the Strait of Hormuz, which we don't think is going to happen, or just a lowering of the export volumes that come out of Iran on a daily basis that could, you know, cause oil prices to rise,' said Thummel. 'But right now, we don't see any of those geopolitical risks really rising that high.' About 20 million barrels of oil per day, or around 20 per cent of the world's oil passed through the strait in 2024. 'Accelerated electricity growth' The expected drop in oil prices comes as the demand for electricity surges. Thummel said there has been flat electricity demand for the last 20 years but that is changing. 'AI changed the game,' said Thummel. 'We're going to now start to have accelerated electricity growth in the U.S. and probably Canada, and likely globally and so that's why we think electricity is the new oil. It's going to be the growth driver going forward and there are a lot of opportunities as a result of that.' Canada's electricity demand is projected to significantly increase in the coming years, potentially more than doubling in the next 25 years, according to Canada Energy Regulator. The growth is driven by population increase, electrification of the economy, including electric vehicles and industrial processes, and the need to replace aging infrastructure. Thummel says there is going to be massive electricity demand over the next several decades tied to AI, industrialization, manufacturing and EVs. 'All of these captured together, are really going to expand the amount of electricity demand dramatically,' said Thummel. 'It could be over 1000 terawatt hours of electricity.' 'It's a massive amount of electricity that's going to be needed to be generated really, not just in the next decade, but really in the next five or six years,' said Thummel. 'And so that's why we're so excited about it Tortoise, and it creates opportunities to invest in natural gas, nuclear, because those two are going to really be the primary fuel source just to generate this electricity going forward.'
Yahoo
07-07-2025
- Business
- Yahoo
Oil Prices Expected to Stay Under $70
Despite heightened tensions in the Middle East, oil prices are likely to remain capped below $70 per barrel for the rest of the year amid ample supply and uncertainties about demand. Unless actual supply disruptions occur in and around the hotspots in the Middle East, the price of oil will be a function of supply and demand, analysts and investment banks say. Growing supply from the OPEC+ group, although not as high as the monthly headline figure of 411,000 barrels per day (bpd) suggests, is set to create an oversupply on the market going into autumn, even if summer demand holds strong. On the demand side, peak summer travel season may justify higher supply, but lingering trade and economic uncertainties may cap upside to prices. As a result, most analysts expect oil prices to hover around the current levels in the mid-$60s per barrel and average below $70 a barrel for 2025. Currently, oil's 'normal' price would be in the $70s range, but the market oversupply is keeping prices in the $60s, Rob Thummel, senior portfolio manager of Tortoise Capital, told BNN Bloomberg this week. 'In order for oil prices to return to what we think is the $70s, kind of normal price, you need the market to really rebalance,' Thummel said. 'What that means is either oil production in other locations is going to fall, and, or effectively, demand for oil is probably going to rise more than what people expect in the second half of the year.' According to Ole Hansen, Head of Commodity Strategy at Saxo Bank, crude oil may face headwinds in the second half of the year amid rising output and economic growth concerns. 'OPEC8+ continues to ramp up production in an effort to punish overproducing quota cheaters, and to reclaim market share from higher-cost producers which may eventually have to dial down production amid lower price expectations,' Hansen said in a weekly commodities commentary. Major investment banks, including Goldman Sachs, Morgan Stanley, and JPMorgan, expect Brent crude prices to average $66.32 a barrel and WTI Crude to average $63.03 per barrel this year, according to a June survey by The Wall Street Journal. The responses in June were slightly higher compared to those in the May poll, but the analysts continue to see fundamentals as key for prices, and right now these fundamentals point to an oversupply amid uncertain economic prospects with the U.S. tariff policies. The Reuters survey of 40 analysts and economists in June also saw a slight increase in the price forecasts. Brent is seen averaging $67.86 per barrel in 2025, up from $66.98 a barrel expected in May. WTI is expected to average $64.51, up from $63.35 per barrel in May. However, analysts concur that the glut would cap rallies unless the Middle East conflict broadens and leads to more volatility and price spikes. In case an oversupply overwhelms the market if summer demand disappoints, OPEC+ is likely to act swiftly to put a floor under prices by pausing production increases. 'We expect OPEC+ to exert caution in raising production, even putting plans on hold indefinitely at the first signs that prices may fall significantly,' Matthew Sherwood, lead commodities analyst at EIU, told Reuters. Next week could remove some uncertainty over the global economy and oil demand as July 9 is the end of President Trump's 90-day pause on the so-called 'reciprocal' tariffs. 'We could see tariff increases reinstated on some US trading partners if trade deals are not concluded. This leaves a fair amount of uncertainty going into next week,' ING strategists Warren Patterson and Ewa Manthey wrote in a note on Thursday. The oil market is full of uncertainties, but current supply and demand balances point to an oversupply and subdued oil prices in the coming months, barring a supply disruption in the Middle East. By Tsvetana Paraskova for More Top Reads From this article on Sign in to access your portfolio
CTV News
03-07-2025
- Business
- CTV News
‘Electricity is the new oil': Expert anticipates oil prices to stay below US$70
Sorry, we're having trouble with this video. Please try again later. [5006/404] Amid ongoing tensions in the Middle East between Israel and Iran, a commodities expert says he expects oil prices to remain relatively steady, as the conflict isn't likely to cause any major supply disruptions even if the current ceasefire is broken. Rob Thummel, senior portfolio manager of Tortoise Capital, said prices should be in the US$70 range but are down a little bit due to an oversupply of oil in the global market. 'In order for oil prices to return to what we think is the $70s, kind of normal price, you need the market to really rebalance,' Thummel told BNN Bloomberg Wednesday. 'What that means is either oil production in other locations is going to fall, and, or effectively, demand for oil is probably going to rise more than what people expect in the second half of the year.' Brent crude hovered around $68 per barrel on Thursday morning while West Texas Intermediate was changing hands at $67. Members of the Organization of the Petroleum Exporting Countries (OPEC+) are expected to meet this week to determine output levels for August. Member countries produced an estimated 28.7 million barrels per day of crude oil in 2022, which was 38 per cent of total world oil production that year, according to the U.S. Energy Information Administration. The largest producer and most influential member of OPEC is Saudi Arabia, which was the world's second-largest oil producer in 2022, after the United States. 'OPEC+ has added back oil production throughout the year, and the anticipation is that OPEC+ will add back additional oil supply over the next several months,' said Thummel. 'The oil market is currently oversupplied, and that ultimately means oil prices have come down and have been pushed down.' OPEC+ remains ready and able to increase oil production if the conflict between Israel and Iran escalates, he noted. 'Iran exports one and a half million barrels a day of oil by one and a half per cent of global oil consumption. If there would have been disruptions in Iran's exports, then Saudi Arabia and other OPEC countries were prepared to step in and fill that supply gap that would potentially have materialized should Iran exports be less and Saudi Arabia is still ready and willing to be able to do that,' said Thummel. 'We'll see how the second half unfolds. We don't expect any disruptions in the Middle East because of the conflict, and so as a result of that, we continue to expect the oil market to be oversupplied in 2025 and we will then expect to see oil prices right around the $65 range where they are currently, for the rest of the year.' Oil market watchers have been fixated on Iran after it suspended cooperation with the International Atomic Energy Agency, the United Nations' nuclear watchdog, following U.S. airstrikes to dismantle nuclear facilities in the country. According to the Associated Press, the suspension will likely limit the ability of inspectors to track the nuclear program that had been enriching uranium to near weapons-grade levels 'Electricity is the new oil' Recent oil market volatility comes as the demand backdrop for crude is undergoing major changes, Thummel said. 'Electricity is the new oil, and so from our perspective, natural gas and nuclear are the future for the energy supply. Oil still plays a role, but it plays a lesser role. So natural gas and nuclear are ways to play it,' he said. 'There's plenty of really quite high-quality natural gas stocks in the U.S. and Canada as well and then natural gas will really be the big supply source, energy supply source in the near term. In the medium term, nuclear will start picking up in terms of its market share, probably in 2030 and beyond. So that's the way we look at it.' With files from Reuters
Yahoo
27-06-2025
- Business
- Yahoo
Shell probably won't buy BP: Here's a 'more realistic' outcome
A potential Shell (SHEL) and BP (BP) merger is on investors' minds after The Wall Street Journal reported Shell is in early talks to acquire BP, though Shell has denied the report. Tortoise senior portfolio manager and managing director Rob Thummel says it makes sense for the two energy companies to combine, but it's unlikely that Shell would buy BP outright, explaining that it's more probable that BP will sell parts of its business to Shell and others. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. While Shell is denying the Wall Street Journal report that it's in talks with BP about a possible merger, our next guest says a deal could be a first step towards improving the valuations of the combined company. Here with more, we've got Rob Dummel, who is the Tortis Senior portfolio manager and managing director. Great to have you here with us. So, just take us into your analysis of the deal-making environment now through the lens of Shell and BP, and what it could mean for the sector. Well, so, so thanks for having me. So, if you just look at what's happening in the overall sector, obviously commodity prices are down. Oil prices are down a lot. And so, it's hard for deals to be made today, uh, just because, uh, because of the low oil price. And a lot of these oil and gas producers, oil producers in particular, have really repaired their balance sheet so they don't need to do deals. But it's a little different for Shell and Shell and BP. So, if you look at the valuations of Shell and BP, they're really low. They trade at much lower valuations than their peers: Exxon, Chevron, Total. So, obviously, there are a lot of investors that are looking for ways to unlock that value. I know Elliott's been active in in BP to try to, to try to encourage them to sell several of their assets to try to realize and get the market to recognize a more of a sum of the parts type of valuation. So, does it make sense for the two to combine? Uh, yeah, it probably does longer term if you think about, then what will the what will combined entity do? It's much bigger. Um, and then ultimately what it needs to do, and I think both companies need to do, is continue to be disciplined, continue to deliver cash back to the shareholders in the form of dividends and stock buybacks. And, and I think if you put all those together, then ultimately, you result in in an improving valuation. But, but clearly, there these, both of these stocks are at really discounted valuations. What is the likelihood that this deal even goes through knowing that there are now more restrictions in different parts of the world for this to be necessary or be possible to take place, considering British stock regulations that have now come more into light which would mean that essentially there would be a six-month period that Shell would have to wait, uh, if this indeed was rejected and, and ultimately they would have to find, uh, some other approach. Yeah, I, I think the odds of Shell buying BP as it is today is very low. Uh, um, what I think the more realistic, uh, possibility is that, you know, BP starts to sell off certain pieces of its business and then ultimately a combination between Shell and BP, uh, makes a little more sense. I think BP's obviously interested in the oil and gas producing assets, the Gulf of Mexico, um, some of its international oil and gas producing assets. Um, and I think BP has a little bit of LNG as well that, that that would, would be complementary. But, but uh, but there are other businesses, I think, inside of BP that that may make sense in the hands of other buyers rather than Shell. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
