Annual Report (22242 cef funds web)

Closed-end Fund Comparison

2024 Annual Report | November 30, 2024

Renewables and power infrastructure

4%MLPs

19%

Renewables and power infrastructure 7%

Liquids infrastructure

$151.319%

MLPs 21%

Corporate bonds

Natural gas40% infrastructure

74%

C-corps/ LLCs 39%

(1) As of 11/30/2024

Tortoise

(unaudited)

1

Dear stockholder,

The midstream energy sector, as measured by the Alerian Midstream Energy Index, posted a strong fiscal year 2024 gain of 53.0% while the broader energy sector also finished higher, but less so, improving by 16.7% as represented by the S&P Energy Select Sector Index®. Midstream management teams exhibited disciplined capital allocation, maintaining robust balance sheets, increasing dividends, strategically repurchasing shares, and investing in high-retucapital projects. During the year, project opportunities expanded significantly, driven by rising power demand to support the development of data centers fueled by rapid advancements in artificial intelligence. In response to this increased demand, new natural gas pipeline projects were anticipated to address the substantial growth in power needs, with natural gas-fired power generation expected to play a vital role. Meanwhile, the broader energy sector's performance reflected lower crude oil demand growth forecasts for 2025, attributed to a weakening Chinese economy and reduced refining margins resulting from high utilization rates and newly added international refining capacity.

Earnings within the energy infrastructure sector were largely in line with or exceeded estimates throughout the fiscal year, driven by continued volume growth, particularly from increased production in the Permian Basin. Additionally, the growing demand for exports of natural gas, ethane, and propane contributed to performance. Discussions regarding the supply of natural gas to power data centers continued as a key theme during earnings calls for natural gas infrastructure companies. The need for additional natural gas takeaway capacity from the Permian Basin remained evident, as natural gas prices in West Texas were significantly lower than other pricing hubs, frequently dipping into negative territory. Despite increased investments to address natural gas takeaway constraints and rising demand, capital expenditures remain approximately half of pre-2020 levels, enabling companies to distribute substantial free cash flow for shareholder returns. In fact, share buybacks are on track to surpass the $4 billion share repurchase expectation for 2024, underscoring its strong financial performance and commitment to returning capital to shareholders.

The broader energy sector delivered earnings that largely met expectations, with producers emphasizing their capacity to increase production while simultaneously reducing capital expenditures, showcasing enhanced operational efficiency. Meanwhile, refining margins contracted due to demand uncertainties and increased supply, exerting pressure on select stocks. Capital allocation strategies remained strongly focused on maximizing shareholder value. Companies prioritized initiatives such as dividend growth, strategic share buybacks, maintaining low leverage, and pursuing accretive mergers and acquisitions aimed at acquiring complementary assets. Additionally, consistent with midstream segment trends, rising power demand fueled by artificial intelligence-driven data center expansion emerged as a key opportunity that energy companies actively positioned themselves to capitalize on.

For information on sustainable infrastructure, waste transition and social impact sectors, please refer to the Tortoise Sustainable and Social Impact Term Fund letter on page 18.

The S&P Energy Select Sector® Index is a capitalization-weighted index of S&P 500® Index companies in the energy sector involved in the development or production of energy products. The Alerian Midstream Energy Index is a broad-based composite of North American energy infrastructure companies. The capped, float-adjusted, capitalization- weighted index, whose constituents eathe majority of their cash flow from midstream activities involving energy commodities, is disseminated real-time on a price-retubasis (AMNA) and on a total-retubasis (AMNAX).

It is not possible to invest directly in an index.

Performance data quoted represent past performance; past performance does not guarantee future results. Like any other stock, total retuand market value will fluctuate so that an investment, when sold, may be worth more or less than its original cost.

Fund performance

The midstream energy sector returned 53.0% for the fiscal year (as measured by the Alerian Midstream Energy Index or AMNA), topping broader energy. This robust performance stemmed from several factors. Energy infrastructure company management teams demonstrated disciplined capital allocation by maintaining healthy balance sheets, increasing dividends, opportunistically repurchasing shares, and investing in high-retucapital projects. Throughout the year, project opportunities expanded significantly as expected power demand surged to support the development of data centers driven by the growing pace of advancements in artificial intelligence. Utilities also benefited from the accelerating growth in load demand, prompting companies to raise their earnings guidance for the foreseeable future. The fund's market-based and NAV-based returns (including the reinvestment of distributions) for the fiscal year were 77.9% and 59.8%, respectively. The Tortoise MLP Index and the Tortoise Decarbonization Infrastructure Index returned 28.2%

and 44.1%, respectively, during the same period

2024 fiscal year summary

Key asset performance drivers

$20,000

$15,653

Fund structure and distribution policy

The fund is structured to qualify as a Regulated Investment Company (RIC) allowing it to pass-through to shareholders income and capital gains earned, thus avoiding double-taxation. To qualify as a RIC, the fund must meet specific income, diversification and distribution requirements. Regarding income, at least 90 percent of the fund's gross income must be from dividends, interest and capital gains. The fund must meet quarterly diversification requirements including the requirement that at least 50 percent of the assets be in cash, cash equivalents or other securities with each single issuer of other securities not greater than 5 percent of total assets. No more than 25 percent of total assets can be invested in any one issuer other than government securities or other RIC's. The fund must also distribute at least 90 percent of its investment company income. RIC's are also subject to excise tax rules which require RIC's to distribute approximately 98 percent of net income and net capital gains to avoid a 4 percent excise tax.

The fund has adopted a managed distribution policy ("MDP"). Annual distribution amounts are expected to fall in the range of 7% to 10% of the average week-ending net asset value ("NAV") per share for the prior fiscal semi-annual period. Distribution amounts

(unaudited)

4

will be reset both up and down to provide a consistent retuon trailing NAV. Under the MDP, distribution amounts will normally be reset in February and August, with no changes in distribution amounts in May and November.

Leverage

The fund's leverage utilization increased $11.7 million during the six months ended Q4 2024, compared to the six months ended

Q2 2024, and represented 18.4% of total assets at November 30, 2024. At year-end, the fund was in compliance with applicable coverage ratios, 67.6% of the leverage cost was fixed, the weighted- average maturity was 1.2 years and the weighted-average annual rate on leverage was 4.14%. These rates will vary in the future as a result of changing floating rates, utilization of the fund's credit facility and as leverage matures or is redeemed. During the fiscal year ended November 30, 2024, $14.5 million of Senior Notes were paid in full upon maturity.

Please see the Financial Statements and Notes to Financial Statements for additional detail regarding critical accounting policies, results of operations, leverage, taxes and other important fund information.

For further information regarding the fund's leverage and distributions to stockholders, as well as a discussion of the tax impact on distributions, please visit www.tortoiseadvisors.com.

Tortoise

Fund performance

The midstream energy sector returned 53.0% for the fiscal year (as measured by the Alerian Midstream Energy Index or AMNA), topping broader energy. This robust performance stemmed from several factors. Company management teams demonstrated disciplined capital allocation by maintaining healthy balance sheets, increasing dividends, opportunistically repurchasing shares, and investing in high-retucapital projects. Throughout the year, project opportunities expanded significantly as expected power demand surged to support the development of data centers driven by the growing pace of advancements in artificial intelligence.

In response, new natural gas pipeline projects were approved to accommodate the substantial growth in power demand, with natural gas-fired power generation expected to play a critical role. The fund's market-based and NAV-based returns (including the reinvestment of distributions) for the fiscal year were 83.9% and 67.5%, respectively. The Tortoise MLP Index returned 28.2% during the same period.

2024 fiscal year summary

Unlike the fund return, index retuis pre-expenses and taxes.

Key asset performance drivers

Value of $10,000 vs. Tortoise Midstream Energy Fund - Market (unaudited)

From November 30, 2014 through November 30, 2024

$20,000

Tortoise Midstream Energy Fund - NAV

Tortoise MLP Index®

$10,000

$5,000

$0

$15,653

$5,382 $5,060

Fund structure and distribution policy

The fund is structured to qualify as a Regulated Investment Company (RIC) allowing it to pass-through to shareholders income and capital gains earned, thus avoiding double-taxation. To qualify as a RIC, the fund must meet specific income, diversification and distribution requirements. Regarding income, at least 90 percent of the fund's gross income must be from dividends, interest and capital gains. The fund must meet quarterly diversification requirements including the requirement that at least 50 percent of the assets be in cash, cash equivalents or other securities with each single issuer of other securities not greater than 5 percent of total assets. No more than 25 percent of total assets can be invested in any one issuer other than government securities or other RIC's. The fund must also distribute at least 90 percent of its investment company income. RIC's are also subject to excise tax rules which require RIC's to distribute approximately 98 percent of net income and net capital gains to avoid a 4 percent excise tax.

The fund has adopted a managed distribution policy ("MDP"). Annual distribution amounts are expected to fall in the range of 7% to 10% of the average week-ending net asset value ("NAV") per share for the prior fiscal semi-annual period. Distribution amounts will be reset both up and down to provide a consistent retuon

trailing NAV. Under the MDP, distribution amounts will normally be reset in February and August, with no changes in distribution amounts in May and November.

Leverage

The fund's leverage utilization increased $7.6 million during the six months ended Q4 2024, compared to the six months ended

Q2 2024, and represented 15.9% of total assets at November 30, 2024. At year-end, the fund was in compliance with applicable coverage ratios, 66.9% of the leverage cost was fixed, the weighted- average maturity was 2.3 years and the weighted-average annual rate on leverage was 3.93%. These rates will vary in the future as a result of changing floating rates, utilization of the fund's credit facility and as leverage matures or is redeemed.

Please see the Financial Statements and Notes to Financial Statements for additional detail regarding critical accounting policies, results of operations, leverage, taxes and other important fund information.

For further information regarding the fund's leverage and distributions to stockholders, as well as a discussion of the tax impact on distributions, please visit www.tortoiseadvisors.com.